Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
IMPACT OF ADVERTISING ON BRAND PREFERENCE OF TEA IN TRI
CITY
SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Of
Punjab Technical University
By
Gaurav Singh
1407088
MBA IV SEMESTER
UNDER THE SUPERVISION OF
Dr. SATINDER PAL SINGH
DEAN RESEARCH
Certificate of Supervisor
This is to certify that Mr. Gaurav Singh Roll No.1407088 has completed the research project
titled IMPACT OF ADVERTISING ON BRAND PREFERENCE OF TEA IN
Declaration
I, hereby declare that the research project report titled IMPACT OF ADVERTISING
Gaurav Singh
MBA III sem
Chandigarh Business School
Date:
Place:
Acknowledgements
I express my sincere gratitude to Dr. Satinder Pal Singh Dean Research CBSA, Chandigarh
Groups of Colleges for providing me an opportunity to work on this project. I am very grateful
for their constant support and guidance throughout the duration of the entire project. I express
my sincere thanks to Dr. Tajammul Hoda Head of the Institution and our present summer
internship coordinator Ms. Manisha Aujla for their guidance and support. Lastly, I thank my
parents, family members and friends for their constant support in my endeavor.
Gaurav Singh
TABLE OF CONTENT
Title
Certificate
Declaration
Acknowledgement
6-14
15-20
21-27
28-54
55-57
CHAPTER-6 Recommendations
58-66
Bibliography
Annexure
CHAPTER 1
Introduction
(Industry Profile)
Historical evolution
The documented evidence according to the history of tea drinking in India dates back to 750 BC.
Tea in India is generally grown in the North Eastern regions and the Nilgiri Hills. Having
evolved since those early days, tea drinking in India has now come a long way. Today this nation
is proud to be one of the largest tea producers in the world. Buddhist monks in India have used
tea
for
its
medicinal
value
since
thousands
of
years.
According to a very interesting legend, the history of tea drinking in India began with a
saintly Buddhist monk about almost 2000 years ago. It so happened that this monk who later
became the founder of Zen Buddhism, decided to spend seven sleepless years contemplating the
life and teachings of Buddha. While he was in the fifth year of his contemplation and prayer, he
almost fell asleep. He took some leaves from a nearby bush and began chewing them. These
leaves revived him and enabled him to stay awake as he chewed on them whenever he felt
drowsy. Thus he was able to complete his penance for seven years. These were the leaves of the
wild tea plant.
As per the history of tea drinking in India, local people used to brew and drink tea using the
leaves of the wild native tea plants. Since that time, different varieties of tea have emerged; the
most famous among them is the Darjeeling tea. The commercial production of tea in India was
started by the British East India Company and vast tracts of land have been exclusively
developed
into
tea
estates
which
produce
various
types
of
tea.
In the 16th century, the people of India prepared a vegetable dish using tea leaves along with
garlic and oil and the boiled tea leaves were used to prepare a drink as well. The first Tea Garden
was established by the British East India Company by the end of the 19th century after the
Company took over tea cultivation in Assam, a region in the North Eastern part of India.
One of the most popular snippets related to the history of tea drinking in India dates back to the
7
19th century when an Englishman noticed that the people of Assam drank a dark liquid which
was a type of tea brewed from a local wild plant. In the year 1823, a Singpho King offered an
English
Army
Officer
tea
as
medicinal
drink.
Tea drinking has evolved in different ways over the years in India and differs from region to
region. First thought of as the drink of the Royals, tea has now become the favorite of the
common man as India leads the world in tea drinking. From the humble roadside tea stalls and
the railway platforms to the boardrooms of corporate India, tea is easily available. The cup of
sweet and refreshing chai available in teashops or train stations to the masala teas of North India,
the
variety
of
brews
available
is
numerous.
According to the records, Assam tea is named after the region from where the tea comes and has
revolutionized the tea drinking habits of the Indians. Most Indians drink tea with milk and sugar.
Traditionally, a guest in any Indian home is welcomed with a cup of tea.
Tea isnt simply tea in India but it is like a staple beverage here and a day without it is impossible
and incomplete. Indians prefer their steaming cup of tea because for them it acts as an energy
booster and is simply indispensable. This popular beverage has a lot of health benefits too as its
antioxidants help to eliminate toxins and free radicals from the blood. Originally tea is
indigenous to the Eastern and Northern parts of India, but the tea industry has expanded and
grown tremendously over the years, making India the largest grower and producer of tea in the
world. The tea production in India was 979,000 tonnes as of 2009. In terms of consumption,
export and production of tea, India is the world leader. It accounts for 31% of the global
production of tea. India has retained its leadership over the tea industry for the last 150 years.
8
The total turnover of this industry is roughly Rs.10, 000 crores. Since 1947, the tea production in
India has increased by 250% and the land are used for production has increased by 40%.Even the
export sector of India has experienced an increase in the export of this commodity. The total net
foreign exchange in India is roughly Rs.1847 crores per annum. The tea industry in India is labor
intensive, meaning it depends heavily on human labor instead of machines. This industry
provides employment to more than 1.1 million Indian workers and almost half the workforce
constitutes of women.
In India, tea is a very popular beverage and Indians love their cup of tea. The importance of
tea drinking in India cannot be confined to words, Indians have to have their cup of hot steaming
tea first thing in the morning in order to stimulate their senses and refresh themselves. In fact
some even argue that tea as a beverage enjoys much more preference as compared to coffee in
India. Tea is like a comfort drink for many Indians, especially on rainy days, you can always
catch them savoring a steaming cup of tea along with pakoras (a type of fried snack).
India is the worlds largest producer of tea and most of the tea production in India takes place in
West Bengal and Assam. Tea is popular all over India mainly as an evening drink as well as
breakfast drink but nothing complements a family get-together or a college reunion more than an
endless supply of tea throughout the day. In fact it is so popular that it is a cultural norm tea to
offer tea to guests and visitors instead of alcoholic drinks. Although in recent years many people
have shifted to imbibing tea liquor, the age-old tradition is to blend the tea liquor with a little bit
of milk, add sugar in accordance with ones taste and then sip it contentedly.
Almost everywhere you go in India you are sure to find tea or chai as it is commonly known in
most of the North Indian languages). Although there are lots of different types of tea available,
the most common variety has to be the railway tea type hands down. This one is basically a
cheap version (Rs.2-Rs.5 per cup) which is sweet and uniquely refreshing once you develop a
liking for it. This type of tea is made by brewing the tea leaves along with milk and sugar and
serving it steaming hot.
Another famous variety of tea in India is the Masala chai which has spices added to tea during
the preparation. The commonly used spices are ginger, cardamom, cinnamon and black pepper.
9
However this type of tea does not appeal to all and sundry, it takes some time before you
cultivate a taste for it. The Masala tea (or spices tea literally) is popular in Central India as well
as Northern India only because the people in Eastern India like their tea without any spices.
Tea drinking in India dates back to 750 B.C. History of Tea Drinking in India and could be
described as serendipity when the locals used wild native plants for brewing this beverage.
Gradually other varieties of tea originated. At present, Darjeeling tea and Assam tea remain the
most
popular
varieties
of
Indian
tea
in
India
as
well
as
worldwide.
India is the largest tea drinking country in the world even though the average consumption per
person is less than half a cup because of the low income level. Over the years, tea drinking has
become an integral aspect of the India culture. It is considered as a way of life. Remove tea
drinking from India and you remove the basic essence of this vibrant and lovely country.
2. West Bengal
3. Kerala
4. Meghalaya
5. Karnataka
6. Tamil Nadu
1. The aggregate turnover of the tea industry in India has been estimated at Rs. 10,000
crore.
2. The aggregate Net Foreign Exchange earned by exporting tea has been estimated at Rs.
1,847 crore.
3. India is the fourth largest exporter of tea in the world with an annual shipment of 250
million kg.
4. After independence, the land used for growing tea has increased by 40 percent, but the
tea cultivation has gone up by more than 250 percent.
5. Tea is grown over an aggregate of 6,00,000 hectares of land area across various parts of
the country.
6. The state of Assam alone produces more than 50 percent of India's and 16 percent of the
world's total tea.
7. The Indian tea industry is a labour-intensive. Currently, there are at least 1.1 million
workers employed in various tea companies around the country.
8. The Indian tea industry creates income opportunities for almost another 10 million
people.
9. The workforce in the Indian tea industry is equally distributed when it comes to gender.See
11
Tea - easily identifiable with India, immediately brings to mind the lush tea gardens of
Darjeeling, Assam and the Nilgiris. The tea plant that was first discovered growing indigenously
in Assam in 1815 by a traveller is today a well established industry in the country, producing
more than 850 million kgs of tea annually.The tea industry is one of the oldest organized
industries in India with a large network of tea producers, retailers, distributors, auctioneers,
exporters and packers and employs one of the largest workforces in the country. It is a wellknown fact that next to water, tea is the most widely consumed non-alcoholic beverage world
over. It is grown in more than 32 countries among which India is the largest producer. Located in
backward, rural and hilly areas, the tea plantations supplement the economic life of these regions
through employment generation and social welfare and provide a higher standard of living at the
grassroots level. The industry provides direct employment to more than a million workers of
which a sizeable number are women. More than two million persons derive their livelihood from
ancillary activities associated with production, value addition and marketing of tea. The tea trade
is a major contributor to the countrys economy. Substantial foreign exchange earnings with
negligible import content, contribution to the State and Central exchequers, preserving a
pollution free biosphere and soil conservation. are some of the important features of this
industry.
With a history of tea making and tea drinking, it is not surprising that world over, Indian teas are
appreciated for their unique flavour and aroma. India produces three specialty teas - Darjeeling,
Assam and Nilgiris which are exported world over. Green and organic teas are also produced in
India but in small quantities. Tea is grown in 13 States and Assam, West Bengal, Tamil Nadu and
Kerala are the largest producers. Though the major part of the tea production comes from big
estate gardens, the contribution of the small grower segment has shown an increase in recent
years with many small farmers in Assam, North Bengal and Bihar switching over to its
production. In 1998, the country produced the highest ever 870 million kgs of tea. Of this, 758
million kgs was Crushed-Torn-Curl (CTC), 104 million kgs was Orthodox (leaf tea) and 8
million kgs was accounted for by other types, which included green, organic and instant teas.
Exports at 210 million kgs in 1998, were also the highest ever in the past decade. Despite being
the worlds largest producer, Indias share both in world production and exports has declined
over the years.The country today accounts for 27.16 per cent of the global tea production and
13.09 per cent of the world trade. While production of tea during 2004-05 (April-July), estimated
12
at 310 million kgs, has registered a substantial decline of about 29 million kgs as compared to the
corresponding period of the previous year, tea exports, estimated at 56.06 million kgs during
2004-05 (April-July), have shown an increase of 9.79 million kgs over the same period of the
previous
year.
Almost every tea-drinking nation in the world imports some variety of Indian tea! Due to an
existing large domestic market for Indian tea, exports, however, account for less than 20 per cent
i.e. domestic production. Some of the constraints facing the Indian tea industry which directly
affect production, productivity and quality, include the old age of bushes with more than 30 per
cent of the tea area being above the economic threshold age limit, slower pace of replantation
with the rate of replanting being less than 0.5 per cent as against the desired level of 2 per cent
and the consistent fall in its auction prices which has adversely affected the investment in the
plantations. The consequent decline in productivity along with increasing input costs have led
many gardens to become sick or close down.The share of Indian tea in the world market, on the
other hand, has suffered in recent years due to the stiff competition from other producing and
exporting countries like Sri Lanka, China, Indonesia, Vietnam and Kenya. Some other factors
that have adversely affected the export potential of Indian tea include - various tariff and nontariff measures imposed by some tea importing countries, lower off take by Russia due to change
in consumer preferences, lower production of orthodox teas which have a larger demand
worldwide, quality problems and the higher cost of production and prices of Indian tea.
Initiatives
The Tea Board of India, a statutory body of the Government has been entrusted with the task of
the development of the tea industry. It has taken several initiatives to support the tea industry and
overcome the challenges it is facing today. During the 10th Plan period, the Board is
implementing a number of developmental schemes for enhancing the productivity, quality and
marketability of the teas produced in the country. These include financial and technical
assistance to various plantation development activities, such as replanting, rejuvenation, and
creation of irrigation facilities. Export is also being focused upon with the implementation of a
medium term export strategy. The production of quality teas, especially orthodox type of teas is
13
being encouraged.Media campaigns have been launched to increase consumer awareness for
Indian teas besides extension of promotional support to Indian exporters in marketing Indian
brands in principal export markets. The total 10th Plan outlay for the Tea Board is Rs.350 crore
which
is
being
utilized
to
rejuvenate
the
tea
industry.
Special efforts are also being made to address the problems of the small growers of tea. These
include measures like fixation of a price sharing formula between small tea growers and the
manufacturers to enable the small growers to get a reasonable share of the price obtained for the
made tea, implementation of a price subsidy scheme and carving of a Special Tea Term Loan
package. One of the most important initiatives taken by the Government in the small sector has
been the quality upgradation programme, which was launched in South India in July 2000 and is
continuing successfully so far.The Tea Board has also followed it up by launching a full-fledged
scheme for quality upgradation and product diversification, aimed at modernizing the tea
factories. The measures taken not only seek to alleviate the income related problems of the small
growers, but also recognize the inherent advantages and immense potential of the small grower
sector in driving Indian tea exports. Though in the last few months, there has been a recovery in
the prices of tea and exports have also started looking up, it is now evident, that with the
emerging trends in the globalised economy, markets can no longer be protected. The Indian tea
industry, would have to gear itself up to counter the new forces unleashed by globalization.
14
CHAPTER 2
Project Introduction
15
ABSTRACT
The term advertising originates from the Latin word advertere that means to turn the attention.
So, advertising is a tool companies use to draw the attention of buyers and public to any object or
purpose. Advertising is employed in all the countries of the world. The basic aim of advertising
activity is popularization of the product of the advertiser. Advertising is a potent tool of
marketing and a component of the overall promotion activities. The consumer is considered as
the king in the concept of modern marketing. In the past, products were first produced and the
consumer selected from the available products. It was a sellers market. Today the situation has
undergone a revolution. The marketing of the products and services is consumer oriented.
Products and Services are based on the consumers likes, preferences, attitudes and opinions.
Producers consider these individual requirements in the production process and advertise the
same for successful selling.
INTRODUCTION
The term advertising originates from the Latin word advertere that means to turn the attention.
So, advertising is a tool companies use to draw the attention of buyers and public to any object or
purpose. Advertising is employed in all the countries of the world. The basic aim of advertising
activity is popularization of the product of the advertiser. Advertising is a potent tool of
marketing and a component of the overall promotion activities. Advertising guides the
consumers in their product choices. Surveys have shown that advertising is sometimes welcomed
by consumers and is perceived as informative and useful for making purchase decisions (Bogart
1989, p.49: Engel, Blackwell, and Miniard 1995, p.189). The consumer is considered as the
king in the concept of modern marketing. In the past, products were first produced and the
16
consumer selected from the available products. It was a ,sellers market. Today the situation has
undergone a revolution.
The marketing of the products and services is consumer oriented. Products and Services are
based on the consumes likes, preferences, attitudes and opinions. Producers consider these
individual requirements in the production process and advertise the same for successful selling.
Advertising provides detailed and up-to-date information regarding the various products
available in the market to the consumers, its benefits, availability and price. Advertising may
contribute significantly to consumers initial learning about products because (1) it is plentiful
and repetitive (Wright and Barbour 1975) and (2) advertising information is available at
virtually no cost to the consumer (Nelson 1974: Wernerfelt 1996) Every piece of advertising
turns the attention of the readers, listeners, viewers, or onlookers towards a product, service or an
idea.
WHAT ARE FMCGs?
FMCG refers to consumer non-durable goods required for daily or frequent use. Typically, a
consumer buys these goods at least once a month. Products which have a quick turnover, and
relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are
those that get replaced within an year. The FMCG product chosen for this study is Tea.
About Tea
Tea is one of the most refreshing and popular beverages of the world. India is one of the largest
tea producers in the world. Indian tea is of the finest quality in the world. The industry has also
been a major foreign exchange earner besides providing billions of hot cups of a delicious and
invigorating drink to the people of India.
India consumes about 75% of the total output. Annual growth in domestic tea consumption
dropped by around 1.8% during 1998-2001, from an earlier rate of around 3%.
Tea is being cultivated in the higher regions of Northern and Southern India. North India,
Darjeeling and Assam account for 75% of tea output, leaving about 25% to South. The industry
17
in South had a difficult phase in the last few years. Tea prices remained below cost of production.
There was, therefore, no incentive to produce more.
The export market for Indian teas is mainly in the Russian and CIS countries with 90 million kgs
of the total exports going to these countries. This is equivalent to 43% of India s tea exports.
India also exports tea to most of
the European countries, USA, Japan, West Asia and the Asia Pacific region. In fact there is
hardly any country where Indian tea is not found. In all aspects of tea production, consumption
and export, India has emerged to be the world leader, mainly because it accounts for 31% of
global production. It is perhaps the only industry where India has retained its leadership over the
last 150 years.
Some statistical facts about the Indian Tea Industry:
The total turnover of the tea industry is around Rs. 10,000 crores.1
Since independence tea production has grown over 250%, while land area has just grown
by 40%.
There has been a considerable increase in export too in the past few years. Total net
foreign exchange earned per annum is around Rs. 1847 crores.
The labour intensive tea industry directly employs over 1.1 million workers and generates
income for another 10 million people approximately. Women constitute 50% of the workforce
18
Green Tea: When tea leaves are picked, they generally whither and dry and when this occurs,
oxidization takes place. When green tea is manufactured, it is not allowed to oxidize. The leaves
are dried very quickly either in a pan or an oven to dehydrate them and then they are stored. This
process retains the polyphenols catechins and the flavanoids which make drinking green tea a
healthy and beneficial option. However green tea possesses a grassy taste and it loses its flavor
within
year.
To brew a cup of green tea, water which is not more than 80 degrees Celsius should be poured
over the tea leaves. Let the leaves steep in the water for about two to three minutes. Some of the
benefits of green tea are its antioxidant properties which aids in preventing cancer, raising
metabolism rate and cutting fat and even reducing the probability of heart diseases. Due to its
short
brewing
time,
green
tea
is
stimulating.
Black Tea: This tea is stronger than any other type of tea. The caffeine content is higher in black
tea as compared to the less oxidized varieties. It retains its flavor for many years. Black tea is the
tea
that
enjoys
the
maximum
sales
in
the
world.
To brew a cup of black tea we need a teaspoonful of tea leaves for a cup of tea. The tea leaves are
steeped in boiling water for at least three to four minutes before it is strained and served. Plain
black tea without sugar contains antioxidants and is beneficial in reducing cardiovascular
diseases.
White Tea: This is the rarest variety of tea. The leaves are picked and harvested before they are
fully open and the buds still have a covering of white hairs on them. White tea undergoes the
least processing and is also not fermented. It has a light and sweet flavor and contains less
caffeine
and
more
antioxidants
than
any
other
type
of
tea.
The ideal temperature of water for brewing white tea is 76 to 85 degrees Celsius. The leaves
should
be
steeped
in
water
for
at
least
seven
to
eight
minutes.
Herbal Tea: Tisane or ptisan is an herbal infusion. Tisane is made with any part of the plant
19
either dried or fresh flowers, roots, seeds or leaves over which boiling water is poured. Flavored
teas are prepared by adding this to regular tea like the jasmine tea ofChina. There are different
types
of
herbal
tea
which
can
be
consumed
for
medicinal
purposes.
Oolong Tea: Being of Chinese origin, this tea is a cross between the popular black and healthy
green varieties and the two styles commonly associated with this tea are green and amber. The
uniqueness of this tea is attributed to the different manner in which its leaves are prepared and
owing to this reason apart from being bereft of the leafy flavor of the green tea its taste is distinct
from
other
types
of
tea
as
well.
The traditional Oolong tea is brewed in a special type of pot known as Gaiwan and the final sip
may vary according to the length of brewing time
20
CHAPTER-3
Research methodology
3.1 Literature Review
3.2 Need of the Study
3.3 Objectives of the study
3.4 Research Design
3.5 Limitation of the stud
21
22
the free gifts distributed to them. While communicating their products, the tea marketers have to
take extra care, and advertise all the possible advantages of using their tea.
3. Imran Khan (2013) undertook a study to know the impact of brand related attributes (brand
knowledge, brand relationship, behavioral intention, brand advertisement and past experience
about the brand) on the purchase intention of the consumers. The results identified that brand
knowledge and brand advertisement has same impact on both male and female consumers.
Behavioral intention, past experience and purchase intention are high in female consumers than
male consumers. But male consumers have stronger brand relationship then female consumers.
Furthermore, the behavioural intention and purchase intention of upper Punjab employees is
high. The impact of advertisement and knowledge about brand increases according to the age of
the consumers.
4 Islam Mohammed Monirul (2013) have determined the consumers perception and attitude
towards Tea and Coffee. For this purpose, 100 punjab consumers are selected and studied.
Fishbiens Multi-attribute attitude model and t-test were used to measure hypothesis and compare
consumers attitude towards Tea and Coffee. Findings indicated that the attitude towards Coffee
and Tea differed significantly among consumers in punjab. Consumers had an overall positive
attitude towards Coffee when compared to Tea in respect of availability, flavour and environment
of shop. In contrast, mean value and t-value indicate that there were no significant differences in
aspects of freshness, habitual facts, and status, but correlation value indicated that there were
some differences with regards to freshness and status.
5. Shendge (2012) has studied the consumer preference towards Red Label Tea with reference to
Samrat Chowk in Solapur. The data collected and analyzed and general observations have proven
that Brooke Bond Red Label Tea has done remarkable job in the market. It is observed that 88
percent of the consumers are using Brooke Bond Red Label Tea powder. Majority of the
consumers (73 percent) of Red Label Tea stated that price of Red Label Tea is reasonable.
Advertisement has influenced 95 percent customers to buy this brand of tea. Besides it is also
observed that the price of Red Label is affordable to everyone. The consumers of Red Label Tea
23
are quite satisfied with it and they will not switch over to other tea brands. They will continue
using the same brand and they have the attitude of recommending it to others.
6. Judy , (2012) have studied the consumer psychological values towards coffee consumption in
a tea culture setting. Interviews using the Zaltman Metaphor Technique (ZMET) were employed
to explore consumer values surrounding coffee consumption in Taiwan. Qualitative research
methods and Xsight software were used to organize the data and field observations to form a
grounded theory. Consumption of coffee was found to be used as a medium for mental escape
from the stress and pressure from work and society, in seeking relaxation and feeling renewed
and as an insight into the world of nature. Photo elicitation and deep psychological interviews
show respondents core values related to this consumption behaviour.
7. Jaisam., (2010) have studied24 the factors affecting consumer behaviour of tea. The
researchers have selected 400 respondents by means of quota sampling. Survey was conducted
using the questionnaires with 19 variables and the data were statistically analyzed using factor
analysis. The result of factor analysis showed that the consumer behaviour was influenced by
five factors
1. marketing factor such as gift, promote, volume, producer, product and brand,
2. healthy factor such as healthy, nutrition, shelf-life, safety and curing,
3. processing factor such as process, standard and ingredients,
4. sensory factor such as aroma, taste and colour, and
5. value factor such as price and package.
8. Kumar G, (2011) have studied19 the consumers perception regarding organic Tea in
chandigarh. The data used by this research were from the sampling survey to interview 387
consumers located in middle chandigarh. The authors adopted AIO (Activity, Interest, and
Opinion) to analyze the characteristics of consumers and then used the theory of risk perception
to identify its risk perception. The results showed that there are three segments of perception risk
i.e., financial risk oriented, physical risk and performance risk. The phenomena of pure nature,
healthy food, and less burden are becoming a conception of lifestyle to the Taiwanese. Thus,
many of changed their dietary habit into organic way. In addition, tea is the daily drink of
organic tea is popular in chandigarh recently. From the results of segmentation, the organic tea
24
industry or seller could adopt 4Ps of marketing which are product, place, promotion, and price,
to capture the market.
9. Banumathy , (2010) in their study suggested that, the local companies manufacturing tea must
manufacture high quality tea drinks in order to compete with multinational companies. The
multinational companies promote demand by effective advertising and improve quality by
keeping a check on the taste and price. They adopt innovative improvements in the production
and marketing of tea in order to compete with the international brands. The study also revealed
that there is no association between age, education, occupation and choice of brands but there is
association between monthly income and brand preference and also there is close relationship
between price and satisfaction level in purchasing tea.
10. Radhakrishnan (2009) conducted a study on perspectives and prospects of coffee
consumption in India. The result indicated that coffee consumption had shown an annual average
growth of 2.14 per cent between 2010 and 2013. In absolute terms the off take in domestic
market had grown from about 18,400 tonnes to about 70, 000 tonnes during 2013. For various
reasons, the decade between .2010 to 2013 did not show any noticeable growth in consumption.
As we know these days tea companies are advertising their product so much on televisions and
are spending so much money on the Advertisements of their products.
In tea industry the cost of advertising is nearly 35 % of the total cost. For increasing the sale of
their product they are taking film stars, cricket stars in their advertisements of their products
which are again very costly.
The tea companies are spending so much on the sponsorship of events. so this study deals with
these aspects that whether Advertising is having any effect on consumers or not.
3.3 OBJECTIVES
1. To assess the impact of advertising on brand preference of tea.
25
The Research design chosen for this research is descriptive research design and Convenience
Sampling method is used. Participants were chosen randomly from Tri city. The respondents
were all in the age group of 20-60 years. Care was taken to ensure that the participants
represented all education, income and occupation levels chosen for the survey.
Sample size:
The sample size of my study is 150.
Research Tools
1
2
Research Design
Data Collection
Sampling Method
Convenience Sampling
Sampling Unit
Individual
Size Of Sample
150
Scale Used
Likert Scale
3
4
5
6
7
27
CHAPTER-4
Analysis & interpretation
28
In this chapter the data collected from the respondents with the help of questionnaire is analyzed
and interpretations are made on basis of that analysis.
Frequency Table
Q2.Gender
Cumulative
Frequency
Valid
Male
Female
Total
Percent
Valid Percent
Percent
112
74.7
74.7
74.7
38
25.3
25.3
100.0
150
100.0
100.0
HYPOTHESES
H2- The impact of advertising on brand preference of tea is independent of gender.
INTERPRETATION:
As is clear from the table factor we find gender of respondents male respondents: 74.7% and
female respondents 25.3%. There is no difference in the impact of advertising on brand
preferences of tea across genders.
29
Q3. Age
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
15-18
10
6.7
6.7
6.7
19-23
10
6.7
6.7
13.3
24-28
33
22.0
22.0
35.3
29-35
28
18.7
18.7
54.0
36-42
40
26.7
26.7
80.7
Above 42
29
19.3
19.3
100.0
150
100.0
100.0
Total
HYPOTHESES
H1- The impact of advertising on brand preference of tea is independent of age
INTERPRETATION
As is clear from the table factor we find that all age group of respondents are present. But most
common age group was 36-42(26%) then 36-42(26.7) then 24-28(22%) then above 42(19.3).
There is no significant difference in the impact of advertising on brand preferences of tea across
age group.
30
Percent
Valid Percent
Percent
Lipton
20
13.3
13.3
13.3
Tata tea
60
40.0
40.0
53.3
Duncuns
17
11.3
11.3
64.7
Wag bakri
13
8.7
8.7
73.3
Today tea
13
8.7
8.7
82.0
Taj Mahal
27
18.0
18.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that 40% of respondents are prefer tata tea brand 18%
respondent prefer taj mahal tea and 13.3% respondent prefer lipton tea and rest of the respondent prefer
other brand of tea.
31
TV
Percent
Valid Percent
Percent
45
30.0
30.0
30.0
3.3
3.3
33.3
Leaflets
15
10.0
10.0
43.3
Radio
10
6.7
6.7
50.0
Newspaper
60
40.0
40.0
90.0
Others
15
10.0
10.0
100.0
150
100.0
100.0
Bill boards
Total
INTERPRETATION:
As is clear from the table factor we find that almost 40% of respondents come across with
advertisement from newspaper, 30% from TV and 20% from others and leaflets.
32
Q6. Have you ever change your perception towards a commodity because
of its advertisement?
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Yes
87
58.0
58.0
58.0
No
63
42.0
42.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 58% of respondents change their perception
towards a commodity because of its advertisement and 63% respondents cant change their
perception.
33
Percent
Valid Percent
Percent
Yes
46
30.7
30.7
30.7
No
104
69.3
69.3
100.0
Total
150
100.0
100.0
INTERPRETATION:
As is clear from the table factor we find that almost 69.3% of respondents are hesitated to buy a
product because of its advertisement.
34
Percent
Valid Percent
Percent
Yes
104
69.3
69.3
69.3
No
46
30.7
30.7
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 69.3% of respondents are purchase a product
because of its advertisement.
35
Percent
Valid Percent
Percent
Yes
126
84.0
84.0
84.0
No
24
16.0
16.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 84% of respondents find advertisement is
affecting in brand preference and 16 % say no.
36
Percent
Valid Percent
Percent
Strongly agree
77
51.3
51.3
51.3
Agree
13
8.7
8.7
60.0
Neutral
20
13.3
13.3
73.3
Disagree
10
6.7
6.7
80.0
Strongly disagree
30
20.0
20.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 51.3% of respondents are strongly agree and
13% are neutral and 20% are strongly disagree that celebrity influence their purchase decision.
37
Percent
Valid Percent
Percent
Strongly agree
86
57.3
57.3
57.3
Agree
14
9.3
9.3
66.7
Neutral
10
6.7
6.7
73.3
Disagree
15
10.0
10.0
83.3
Strongly disagree
25
16.7
16.7
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 57.3% of respondents are strongly agree and
6.7% are neutral and 16.7% are strongly disagree that advertisement affects the choice of their
brand
38
Percent
Valid Percent
Percent
Yes
124
82.7
82.7
82.7
No
26
17.3
17.3
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 82.7% of respondents are recall
advertisement of their brand and 17.3% respondents are not recall their brand advertisement.
39
Percent
Valid Percent
Percent
Yes
99
66.0
66.0
66.0
No
18
12.0
12.0
78.0
Sometimes
33
22.0
22.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 66% of respondents say yes 12% say no and
22% say sometimes change their brand preference of a product by just seeing celebrity in
advertisement.
40
Still image
Percent
Valid Percent
Percent
32
21.3
21.3
21.3
Moving image
118
78.7
78.7
100.0
Total
150
100.0
100.0
INTERPRETATION:
As is clear from the table factor we find that almost 21.3% of respondents like still image and
78.7% respondents like moving form of advertisement.
41
Percent
Valid Percent
Percent
Yes
113
75.3
75.3
75.3
No
37
24.7
24.7
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 75.3% of respondents say that an entertaining
advertisement influence their opinion about the product and 24.7% respondents say no in this
case.
42
Percent
Valid Percent
Percent
Yes
132
88.0
88.0
88.0
No
18
12.0
12.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 88% of respondents say that information
provided in advertisement affects their opinion about the product.
43
Percent
Valid Percent
Percent
Yes
108
72.0
72.0
72.0
No
42
28.0
28.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 72% of respondents say yes and 28%
respondents say no that language used in advertisement affects their opinion about the products.
44
Percent
Valid Percent
Percent
National advertisement
61
40.7
40.7
40.7
Local advertisement
89
59.3
59.3
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 59.3% of respondents say that local
advertisement influences more.
45
Percent
Valid Percent
Percent
Always necessary
74
49.3
49.3
49.3
Sometimes necessary
26
17.3
17.3
66.7
Not necessary
50
33.3
33.3
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 49.3% of respondents think advertisement is
always necessary and 33.3% respondents think its not necessary for their decision making
46
Percent
Valid Percent
Percent
Strongly agree
77
51.3
51.3
51.3
Agree
13
8.7
8.7
60.0
Neutral
20
13.3
13.3
73.3
Disagree
10
6.7
6.7
80.0
Strongly disagree
30
20.0
20.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 51.3% of respondents are looking for in an
advertisement, Price of the product, Benefits of the product, Brand endorsers, Offers, Quality of
the product and rest 20% respondents and 13.3% are neutral are not looking for these features.
47
Q21. What do you want to see in a advertisement? Price of the product, Features of
the products, Brand endorsers,Offers,Quality,Use of product,Necessity,Celebrity
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Strongly agree
86
57.3
57.3
57.3
Agree
14
9.3
9.3
66.7
Neutral
10
6.7
6.7
73.3
Disagree
15
10.0
10.0
83.3
Strongly disagree
25
16.7
16.7
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 57.3% of respondents are want to see in a
advertisement, Price of the product, Features of the products, Brand endorsers, Offers, Quality,
Use of product,Necessity,Celebrity and 16.7% of respondent dont want to see these features in
product.
48
Q22. What make you change your mind,.Colour scheme, Participating celebrities,
Cartoon characters used, Better understanding on products, Layout of
thadvertisement,Slogan.
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Strongly agree
77
51.3
51.3
51.3
Agree
13
8.7
8.7
60.0
Neutral
20
13.3
13.3
73.3
Disagree
10
6.7
6.7
80.0
Strongly disagree
30
20.0
20.0
100.0
150
100.0
100.0
Total
INTERPRETATION:
As is clear from the table factor we find that almost 51.3% of respondents said that they change
their mind and 20% respondents didnt change according to Colour scheme, participating
celebrities, Cartoon characters used, Better understanding on products, Layout of the
advertisement, Slogan.
49
Q23. Advertisement under which medium do you find it the most influential towards
the brand preference? T.V, News paper, Radio, Public transport, Others.
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Strongly agree
96
64.0
64.0
64.0
Agree
20
13.3
13.3
77.3
Neutral
6.0
6.0
83.3
20
13.3
13.3
96.7
3.3
3.3
100.0
150
100.0
100.0
Disagree
Strongly disagree
Total
INTERPRETATION:
As is clear from the table factor we find that almost 64% of respondents said that advertisement
under TV and 13% respondents said newspaper and 13.3% respondent said that public transport
medium is the most influential towards the brand preference
50
REGRESSION
51
Model Summary
Std. Error of the
Model
R Square
.093a
Adjusted R Square
.009
.002
Estimate
1.727
ANOVAb
Model
1
Sum of Squares
Regression
df
Mean Square
3.820
3.820
Residual
441.514
148
2.983
Total
445.333
149
F
1.280
Sig.
.260a
a. Predictors: (Constant), Q11. Does advertisement affects the choice of your brand?
b. Dependent Variable: Q4.Which tea brand do you prefer?
52
Coefficientsa
Standardized
Unstandardized Coefficients
Model
1
B
(Constant)
Coefficients
Std. Error
Beta
3.355
.241
-.101
.089
Sig.
13.915
.000
-1.132
.260
-.093
brand?
a. Dependent Variable: Q4.Which tea brand do you prefer?
ANOVA
Q11. Does advertisement affects the choice of your brand?
Sum of Squares
Between Groups
df
Mean Square
1.466
.293
Within Groups
373.928
144
2.597
Total
375.393
149
Sig.
.113
.989
53
T- TEST
Group Statistics
Q2.Gender
Mean
Std. Deviation
112
2.17
1.565
.148
38
2.26
1.671
.271
Std.
Interval of the
Error
Difference
Equal
variances
brand?
assumed
.345
Sig.
df
tailed)
ce
Lower
Upper
.558 -.313
148
.755
-.094
.299
-.684
.497
-.303
60.493
.763
-.094
.309
-.711
.524
Equal
variances
not
assumed
54
CHAPTER 5
Finding & Conclusion
55
FINDINGS
1.
2.
3.
4.
Ads will be able to change the opinion of the customers about the product.
Customers are likely to watch more of the ads which affect their opinion.
Advertisement will easily convince the customer for the product.
Advertisements are the strong means of communication media to convey the intended
CONCLUSION
It was found that age, gender were statistically significant in predicting the brand preference for
tea. It is probably due to these factors that companies target different groups through
advertisements and there has been an increase in their advertising spend. Efforts are required
from companies to attract customers and retain them. The reason for preference of Tata tea by
the respondents of the first two age groups can be well understood by the positioning strategy of
the brand. The Jaago Re campaign launched by the company where the punch line in the
advertisement Harr Subah sirf utho nahin, jaago! must have appealed to the younger
generation.Similarly, the advertising of Taaza is always full of energy. People like that. This
brand is for the active, young, progressive, pack-in-a-lot-in-my day types. Hence the preference
by respondents aged between 31 and 40. Likewise, the middle and higher age groups prefer ,Taj
Mahal. Tabla maestro Ustad Zakir Hussain was the brand ambassador since 1990s. Ustad and
his fans are getting older. The users of the brand have got older and the brand has not been able
to connect with the younger generation. Hence there is a chance that the new generation may
miss out on the charm of Ustad (generation gap?). HUL does not want this to happen with a
power brand like Taj Mahal, so the new brand ambassador is Saif Ali Khan. Saif is an attempt to
make the brand more contemporary.
The reasons for preference of the brands ranged from quality to availability. But it was quality
that was ranked as the No. 1 parameter for brand preference. Most of the consumers reported that
they do get carried away by advertisements sometimes but in the end it is the quality of the
product that is a decisive factor for purchase. They said that they are willing to shell out an extra
56
penny from their pockets provided they get value for money. Advertisements definitely help
them in knowing about the existence of various products/ brand and guide them in their decision
making process. Advertising is giving the general public information about new goods and trying
to increase overall sales, which increases the efficiency of the nations economy. It is supposed
to be a significant way of getting the point across about a product and create motivation for
people to buy. Advertising alone, however, does not get customers. It simply catches consumers
attention, gets them to walk up to a shelf, and make an impulsive purchase. However, getting the
customer back requires a more creative marketing approach.
57
CHAPTER 6
Recommendations, Bibliography,
Annexure
RECOMMENDATIONS
1. Companies should aggressively go for Internet marketing as there is a great scope for it
because youngsters are in close contact round the clock with Internet.
2. Companies should come up with new and affective advertisement companies.
3. Companies should focus on creative advertisements, because people want something
different, something new that will attract their attention.
4. Companies should make use different mediums of Advertisements.
58
5.
6.
7.
8.
BIBLIOGRAPHY
1. Sharma, Karan (2013), The influence of advertising on consumer brand preference
2.
(7)-10, PP 201-215.
3. Johri, C.K and Sharma (2012),Exploring Consumer Attitudes towards Advertising
International Journal on Media Management ,Vol (16)-12, PP 96-107.
4. R, Najeed (2012),Repetitive advertising and the consumer, Journal of Advertising
Research,. Vol (19)-18, PP 312-322.
59
ANNEXURE
Dear Respondent,
I am student of MBA. I am working on the project Impact of advertising on brand preference
of tea in tri city. you are required to fill the questionnaire to enable, to undertake the study on
the said project.
Q1.) Name..
Q2.) What is your gender?
A-Male
B- Female
Q3.) What your age?
60
A-15-18
B-19-23
C-24-28
D-29-35
E-36-42
F-Above 42
Q4.) Which tea brand do you prefer?
A-Lipton
B-Tata tea
C-Duncuns
D-Wag bakri
E-Today tea
F-Taj Mahal
Q7.) Have you ever hesitated to buy a product because of its advertisement?
A-Yes
B-No
Q8.) Have you ever purchase a product because of its advertisement?
A-Yes
B-No
Q9.) Do you find advertisement is affecting in brand preference?
A-Yes
B-No
Q10.) Does celebrity influence your purchase decision?
A-Strongly agree
B-Agree
C-Neutral
D-Disagree
E-Strongly disagree
Q11.) Does advertisement affects the choice of your brand?
A-Strongly agree
B-Agree
C-Neutral
D-Disagree
E-Strongly disagree
C- Sometime
Q13.) Do you change your preference of a product by just seeing celebrity in advertisement?
A-Yes
B-No
C- Sometime
Q14.) Which form of advertisement do you like more?
A-Still image
B-Moving image
Q15.) Does an entertaining advertisement influence your opinion about the product?
A-Yes
B-No
Q16.) Does information provided in advertisement affects your opinion about the product?
A-Yes
B-No
Q17.) Does language used in advertisement affects your opinion about the products?
A-Yes
B-No
Q18.) Which type of advertisement influence you more?
A-National advertisement
B-Local advertisement
63
B-Sometimes necessary
C-Not necessary
Q20.) What do you look for in an advertisement? (Strongly agree-1, Agree-2, Neutral -3,
Disagree - 4, strongly disagree-5)
S.n
o
Factors
1.
2.
3.
Brand endorsers
4.
Offers
5.
Strongly
agree
Agree
Neutral
Disagree strongly
disagree
Q21.) What do you want to see in a advertisement? Which affect you preference towards the
brand? (Strongly agree-1, Agree-2, Neutral -3, Disagree - 4, strongly disagree-5)
S.n
o
Factors
1.
2.
3.
Brand endorsers
4.
Offers
5.
Quality
6.
Use of product
Strongly
agree
Agree
Neutral
Disagree strongly
disagre
e
64
7.
Necessity
8.
Celebrity
entertainment
Q22.) What make you change your mind? (Strongly agree-1, Agree-2, Neutral -3, Disagree - 4,
strongly disagree-5)
S.n
o
Factors
1.
Colour scheme
2.
Participating celebrities
3.
4.
5.
6.
Slogan
7.
8.
Others
Strongly
agree
Agree
Neutral
Disagre
e
strongly
disagree
Q23.) Advertisement under which medium do you find it the most influential towards the brand
preference? (Strongly agree-1, Agree-2, Neutral -3, Disagree - 4, strongly disagree-5)
S.n
o
Factors
1.
T.V
2.
Newspaper
3.
Radio
4.
Public transport
5.
Others
Strongly
agree
Agree
Neutral
Disagree strongly
disagre
e
65
66