battle of brands 4 f
TRANSCRIPT
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DECLARATION
I, PUNEET SINGH a student of MBA 4TH Semester 2008-10, at GuruNanak Institute of Management hereby declare that this Project Report underthe title BATTLE OF BRANDS is the record of my original work underthe guidance of Dr. SEEMA GIRDHAR This report has never beensubmitted to anywhere else for award of any degree/diploma.
PUNEET SINGH
MBA 4th SEM
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ACKNOWLEDGEMENT
In order to make my grand project I acknowledge a special thanks to allthose people without whose supports it would not be possible for me tocomplete my report. I really thankful to my MENTOR because of them Icould achieve the target. I express my sincere thanks to my project guide Dr.
Seema Girdhar who had guide to me throughout my project.
Also I would like to express my inner feeling for all the people for co-operating and helping me throughout the project. Last but not the least, I amthankful to my parents and friends who have provided me with their constantsupport throughout this project.
PUNEET SINGHMBA 4TH SEM
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IndexCHAPTER NO TITLE PAGE NO
CHAPTER NO 1
CHAPTER NO 2
CHAPTER NO 3
1.INTRODUCTION
1.1INTRODUCTION
1.2 BRANDS AND BRANDING
1.3 WHAT IS BRAND
1.4 DEFINATION OF BATTLEOF BRAND
2.COUNTER ADVERTISING
2.1.WHAT IS COUNTER ADS
2.2.EXAMPLES OF COUNTERADS
2.3.ETHICAL CONTENT
2.4.ARTICLE TO SUPPORT
2.5. WHY COUNTERADVERTISEMENT
3.BRAND CAMPARISION
3.1 COKE VS PEPESI
3.2.PIZZA HUT VS DOMINOS
2
3
5
8
12
15
16
18
20
24
30
35
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42
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CHAPTER NO 4
CHAPTER NO 5
3.3 NIKE VS ADIDAS
4.DATA ANALYSIS
4.1 INTRODUCTION
4.2. DETAILS OF THE SURVEYCONDUCTED
5.SUMMARY AND
SUGGESTION
5.1 FINDINGS
5.2 CONCLUSION
APPENDIX
BIBLIOGRAPHY
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INTRODUCTION
Brands and Branding
Whats in a name? That which we call a rose by any other word wouldsmell as sweet, said Shakespeare.What explains McDonalds, Apple I Pod, Toyota and HarleyDavidson, etc.,to be among the top 100 brands? Is ittheir sales revenue? No. Is it their years
of existence? No.Is it their global presence? No. If all of these are notindicative of the companies entitlement to feature in theglobal brands list,what then explains their inclusion? The answer is Brands. Because thesecompanies are able to create, nurture, and sustain powerful brands and allthe above stated inferences are consequences of these untiring efforts. Thenext question is whats a brand? A brand is a collection of perception in theminds of the consumers and resides in the minds of the consumers andresides in their minds. It propels them with a very high perceived associationvalue. A brand is not a by product, an ad campaign, a logo, a spokespersonor a slogan. It is a differentiating identity and the most important reason for
the employees, investors and customers to associate with the company. It isthe firms most important asset in the long term. It is also a bond betweenthe customers and the company. A brand assures reliability and quality.Brand owners have a powerful incentive to ensure that each pie is as good asthe previous one because that would persuade people tocome back for more.
Brands are perceptions. The Volvo brand stands for safety. The MercedesBenz brand is associated with prestige. BMW means the driving. Can
these perceptions be influenced or managed? That is precisely what isexecuted through branding. Branding is creating acorporate brand identity imprinted on the minds of consumers, and thisrequires brand positioning and brand management.Brands are the tools with which companies seek to build and retain customerloyalty and branding often requires huge investment on advertising and a
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good marketing strategy. A strong brand can raise prices as well as barriersto new entrants.In the age of increasing commoditization and at the juncture when the so-called distinctiveness is getting blurred due to increasing competition, therelevance of brands is questioned.An interesting phenomenon is evolving on the horizon pertaining to the roleof brands. As the world economies are integrated, the income levels are alsoon the rise. Increased income levels are creating brand conscious customers.And these customers pay more for a brand because it seems to represent away of life. They are affording an aspirational lifestyle as manifested by a
brand. The companies that can match the aura of their brands with the aromaof new lifestyle stand to gain in todays world.
What is a brand today?
We live in a marketing world today. Everywhere you go, every corner youpass and any discussion you have is bound to be about brands- be it an F1race, the World Cup, some big corporate scandals, some IT product/servicesyou just brought, etc. Brands are all around us. Most CEOs and marketingmanagers have realized that they are dealing with a very chaotic situationtoday in terms of brand building and marketing. Although it is important togain marketing and promotional skills and know-how, it is even moreimportant to question what ones brand means to the markets in todays
context.
What does it mean to be a brand today and tomorrow?
Instead of defining a brand in the traditional context of brand identity, brandimage, brand profile, brand DNA we can define a brand as an entity(product,service, company, person, technology, etc.,) that offers a set of valueexchange measures between what theowner/market seeks and the price he is willing to pay for. The set of value
exchanges can be portrayed as being similar to tentacles of the entity as itreaches out to engage the market, and in return the brand gains economicprofits.Innovation is important in todays competitive market; we can no longerqualify a product, service or company as branded just because it is wellknown. The importance must be placed on the quality and the relevance that
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the brand brings to its market rather than the quantity of how many peopleknow the brand. As we all operate in aninformed society the significance of being known is diluted. Most peoplewill recognize a trade name that iswell advertised, but it does not mean thatthey appreciate the brand for the so-called qualities itrepresents or provides.
DEFINATION OF BATTLE OF BRANDS
Fierce competition among several strong brands forthe retailer'slimited shelf space, and for the same segment of the market.
Usually the brand which is promoted most heavily emerges as the marketleader.
http://www.businessdictionary.com/definition/competition.htmlhttp://www.businessdictionary.com/definition/brand.htmlhttp://www.businessdictionary.com/definition/retailer.htmlhttp://www.businessdictionary.com/definition/limited.htmlhttp://www.businessdictionary.com/definition/segment.htmlhttp://www.businessdictionary.com/definition/market.htmlhttp://www.businessdictionary.com/definition/market-leader.htmlhttp://www.businessdictionary.com/definition/market-leader.htmlhttp://www.businessdictionary.com/definition/competition.htmlhttp://www.businessdictionary.com/definition/brand.htmlhttp://www.businessdictionary.com/definition/retailer.htmlhttp://www.businessdictionary.com/definition/limited.htmlhttp://www.businessdictionary.com/definition/segment.htmlhttp://www.businessdictionary.com/definition/market.htmlhttp://www.businessdictionary.com/definition/market-leader.htmlhttp://www.businessdictionary.com/definition/market-leader.html -
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WHAT IS Counter Advertising ?Advertisingsponsored bypressure groups in opposition to certainproducts
Counter-advertising (part of Social Marketing) can be a tool to protect highrisk groups (young people, pregnant women and heavy drinkers) for theharmful effects of alcohol consumption.
Counter-advertising in these contexts means disseminating informationabout alcoholic beverages, its effects, or the industry that promotes it, in
order to decrease its appeal and use. It is different from other types ofinformational campaigns in that it directly addresses the fact that the
particular commodity (not drinking, or responsible drinking) is promotedthrough advertising (DHS, 2008).
Tactics of counter-advertising include media literacy efforts raise publicawareness of the advertising tactics of an industry, health warning labels onalcohol products, as well as prevention messages in magazines and ontelevision (media advocacy).
Counter Advertising : Essentially advertising that counters that ofanother advertisement, taking a position that is contrary to that of anadvertising message that may have preceded it. This sort of advertising can
be used to take an opposing position on a controversial topic, or to counteran impression another advertisement may have made on consumers.
http://en.mimi.hu/marketingweb/advertising.htmlhttp://en.mimi.hu/marketingweb/advertising.htmlhttp://en.mimi.hu/marketingweb/sponsor.htmlhttp://en.mimi.hu/marketingweb/pressure_group.htmlhttp://en.mimi.hu/marketingweb/product.htmlhttp://en.mimi.hu/marketingweb/advertising.htmlhttp://en.mimi.hu/marketingweb/sponsor.htmlhttp://en.mimi.hu/marketingweb/pressure_group.htmlhttp://en.mimi.hu/marketingweb/product.html -
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Examples of counter ads
1 Zoozoo has Competition Reliance Communications steps in
The hugely successful Vodafones Zoozoo campaign have attracted scoresof eyeballs and even forced competitors to take a look at this medium ratherthan signing multi-million stars.Reliance Communications is among the first to embrace it by launching aseries of advertisements which will have five animated characters (namedhumanised network bars) representing network bars on a mobile phone.
2.RIN VS TIDE (LATEST ADVERTISMENT).
I didn't believe my ears.. Came almost running from Kitchen and re-confirmed what I heard with my friend who was watching the television andwaited for the ad to appear again... Main tho Chaunk gaya.. stood absolutelystumped in front of the TV... Couldn't believe my eyes that HUL has gonefor such a direct attack against P&G's Tide.. Kept on thinking what might bethe reason only to guess afterwatching the ad on youtube closely for some
9-10 times. But, defenitely the Ad agency as well as HUL didn't get thecustomers perception right.. atleast definitely not as of
now If the reason that I think of, is true behind this campaign..
There's a huge buzz in the blogging arena about Rin taking on Tide directlyin its new campaign. Rather than questioning HUL's ideology behind thecampaign, people started crying foul over the campaign and expressing theirconcerns that it will be off the screens very soon... How does taking off thescreens make things better for Tide??.
http://www.labnol.org/india/zoozoo-characters-in-vodafone-ads/8407/http://www.youtube.com/watch?v=2M5rBXtK9iAhttp://3.bp.blogspot.com/_BeJ_SGTxpLs/S4l_P-HkRpI/AAAAAAAAAeQ/IMJasou4Cew/s1600-h/RIN+TIDE1.jpghttp://www.labnol.org/india/zoozoo-characters-in-vodafone-ads/8407/http://www.youtube.com/watch?v=2M5rBXtK9iA -
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Already the damage is done to an extent although not to the extent HUL isexpecting it to. As far as the legal or the ASCI rules are concerned HUL has
played it safe with it's small disclaimers and notes below the ad as well as atthe end of ad.. "As tested by Independent Lab" and "Issued in the interest ofRin Users". But still what's the logic behind such a campaign?? Definitelynot the normal Rin Vs Tide attack.. definitely HUL tried to conveysomething which is not getting on to the customer's mind as easily as theyexpected it to get on...
.
It's a well known fact that HUL and P&G have been trying to gain marketshare through price cuts although this has reduced their revenues for FY09-10. Recently in the month of January2010 P&G introduced an extension onit's brand line "TIDE" with the name of "TIDE NATURALS". This at alower price. And around the end of January itself, HUL has brought downthe prices of their detergents RIN, Surf Excel by 10-30%..Remind you!! P&G haven't cut the price of other versions of Tide to the
price levels of Tide Naturals. But, In reality what the customers have startedseeing in the supermarkets is Tide available at such a low price. Most ofthem never realized that it's Tide Naturals and not all versions of Tide areavailable at same price. As per relativity, If prices of actual RIN and Tideversions have come down by same extent the volume levels will not showmuch of a movement from RIN to Tide or Tide to RIN. But, there came anew entrant called "Tide Naturals" which started pulling the volumes ofRIN. But, what's customer thinking while picking up a packet of Tide
Naturals is..
.
http://2.bp.blogspot.com/_BeJ_SGTxpLs/S4l-_HrWmyI/AAAAAAAAAeI/ldNfjxziOl8/s1600-h/RIN+TIDE3.jpghttp://4.bp.blogspot.com/_BeJ_SGTxpLs/S4l_7OEgzAI/AAAAAAAAAeY/B1RNHRvVJ28/s1600-h/RIN+TIDE2.jpg -
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"I am getting Tide at a very low price" which is what the lady in the ad says,"Tide hain, Khushbhu bhi aur safedi bhi".. She has taken a Tide Naturals
pack and she still feels She has taken Tide.. which is not true and who hasmislead this customer?? P&G or HUL?? HUL is just trying to educate thecustomer by saying indirectly in a respectable manner, "You can compareTide with RIN my dear.. But not Tide Naturals with RIN." It is not sayingRIN is better than Tide w.r.t the cost but, it is trying to say it is definitely
better than Tide Naturals w.r.t the cost..And HUL is also to be blamed one fourth for this confusion and the Adagency that did
iAd for them for the rest three fourth. The concept of direct attack is
wonderful and awesome but, I think the customer isn't able to get this rightmessage from the Ad as expected by HUL and the Ad agency.. Thecustomer feels RIN says, "RIN is better than Tide".. I think it would have
been better if the Lady might have been shown in the ad picking up TideNaturals instead of Tide original version and RIN.. This might have
emphasised the effect of Tide Naturals in a better way..
.But still, this campaign is definitely a tough one to crack for P&G and theiragency. Either HUL needs to bring more sense to this ad asap or else, if
P&G comes with a campaign in reply (though it will be very difficult tocounter the argument) HUL will definitely suffer huge volumes...I had to view the ad nearly 10times with my eyes glued to TV at 1cmdistance to get the blurred disclaimer that appears in the bottom twice duringthe TVC that says... " Schematic representation of superior whiteness isbased on Whiteness Index test of Rin Vs Tide Naturals as tested by
Independent lab"
http://1.bp.blogspot.com/_BeJ_SGTxpLs/S4mCr2kOVlI/AAAAAAAAAe4/hE3FKJdH41g/s1600-h/P%26G.jpghttp://4.bp.blogspot.com/_BeJ_SGTxpLs/S4mCRNdkXsI/AAAAAAAAAew/0toJPRs3Zs0/s1600-h/RIN+TIDE4.jpg -
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Is this Ethical?
An ethical problem in the contemporary business environment is
deceptive advertising, which can mislead consumers and injure competitors.
Though illegal in its most blatant forms, deceptive advertising can occur in
subtle ways that are difficult to establish as outright deception
such as puffery, incomplete comparisons and implied superiority claims.
While the problem is widely recognized, research about what makes
consumers susceptible to deceptive advertising and how to prevent their
being deceived by misleading messages is rare. Researchers have called formore conceptual and empirical research to help consumers recognize and
discount deceptive messages
ARTICLE TO SUPPORT THE STUDY
This article reports the results of two studies that explore the factors that
moderate consumer susceptibility to deceptive advertising and strategies that
help prevent their being deceived by false or misleading claims. Variables
examined include the copy style of an ad, the consumer's frame of reference
at the time of message exposure, the consumer's store of product-relevant
information in memory and the ability of products to influence the
consumer's frame of reference.
Processing Influences
Consumers' feelings, beliefs, preferences and behavior are shaped by the
amount and style of processing used when they are exposed to an advertising
message [6]. Processing style determines the extent to which consumers
recognize and reject misleading ad claims by affecting their levels of
attention and skepticism.
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Three variables shape the style of processing that consumers engage in when
processing advertisements. Informational priming provides consumers with
objective factual information to counter misleading ads in a format
comparable to the tables used in Consumer Reports. Framing creates a
cognitive or an affective frame of reference for processing the message. The
copy style of an ad (attribute or emotion oriented) also affects processing
style.
First Experiment
The effects of these variables were tested in an experiment involving a
deceptive ad for an ice-cream bar. Details of the experimental design and
statistical results are reported in Lord and Kim
Informational Priming. Providing consumers with relevant objective facts
before message exposure was expected to reduce deception. Informational
priming creates accurate knowledge. By recalling this knowledge from
memory and comparing it with deceptive information at the time of exposure
to a misleading ad, consumers should be better able to recognize the falsity
of a misleading claim.
Informational priming can also affect deception susceptibility by altering
consumers' processing style. Primed by specific information about therelevance of a set of attributes to a product's quality or ability to deliver
satisfaction, a consumer may be more likely to notice and evaluate attribute-
relevant claims. Such an attribute-oriented processing style may render
consumers less susceptible to deception.
Results of the first experiment confirmed the ability of information priming
to lessen consumer deception. Subjects provided with substantiated
information on relevant attributes of the test product generated more counter
arguments and weaker beliefs, and attached less credibility to misleading ad
claims than those who did not receive the priming manipulation.
Cognitive and Affective Framing. We expected processing style to vary as a
function of the cognitive and affective motivations that prevailed at the time
of exposure to an advertising message. A consumer whose processing style
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is cognitive would use the brain's left hemisphere to think about product
attributes and features, while symbolic quality and image dimensions of the
product would be processed at a lower level in the right brain. The opposite
pattern would prevail for a consumer with an affective frame of reference.
We expected processing style to vary as a function of the cognitive and
affective motivations that prevailed at the time of exposure to an advertising
message. A consumer whose processing style is cognitive would likely
engage the left hemisphere of the brain in elaborating upon product
attributes and features, while symbolic quality and image dimensions of the
product would be processed at a lower level in the right brain. In other
words, anything that induces consumers to adopt a cognitive/affective frame
of reference at the time of ad exposure should lead to a cognitive/affectiveapproach to processing the message.
Because advertising deception typically arises from attribute- or
performance-oriented misinformation, a possible outcome would be a direct
effect of framing, such that a cognitive frame of reference would facilitate
detection of deceptive intent more readily than affective framing. Another
possibility is that framing and copy orientation may interact to affect a
consumer's style of processing.
Attribute and Emotion Orientation of Ad Copy. Advertisers use a wide
variety of creative approaches in appealing to target markets, some of which
may be characterized as more attribute oriented, e.g., technical expertise and
scientific evidence, and others which focus more on an image or emotions,
e.g., fantasy, mood, humor, musical and lifestyle appeals. A possible result
of copy orientation would be a direct effect, with attribute-oriented copy
facilitating a cognitive processing style plus the ability to detect deception,
and emotion-oriented copy obscuring deceptive intent.However, framing and copy orientation were found to interact. Specifically,
the consumer's frame of reference at the time of exposure created an
expectation of the ad's copy orientation. A cognitive/affective frame of
reference led consumers to expect an attribute/emotion-oriented ad. The
ability to detect deception depends upon the consumer's viewing the
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message with some willingness to question its veracity - a critical or
skeptical approach. Expectancy disconfirmation (encountering a message
that differs from its expected orientation) induced some questioning or
skepticism, as consumers dealt with the apparent incongruity between
expectation and experience.
A more critical or skeptical approach to the message led to a greater
likelihood of detecting deception. We found less susceptibility to deception
when framing and copy orientations were inconsistent (cognitive frame and
emotion-oriented copy, and affective frame and attribute-oriented copy) than
when they were consistent (cognitive frame and attribute-oriented copy, and
affective frame and emotion-oriented copy).
We hypothesized that informational priming would work best as a strategy
for countering deceptive ads when affective processing style was preventing
the detection of deception, i.e., affective framing or emotional copy
orientation. Findings supported the hypothesis that informational priming
increased negative effects and attribute-oriented thoughts and lowered
purchase intention more effectively with emotion-oriented copy than
attribute-oriented copy.
Second ExperimentProduct Type. Missing from the first experiment was a consideration of the
possibility that the effects observed may be limited only to the type of
products examined in that study. It is possible that a fourth factor, product
type, may be as relevant to the consumer's style of processing when exposed
to an advertisement as the three variables examined in an earlier study. The
ice-cream bar used in the first study is a nondurable good potentially valued
more for its experiential properties than its attribute-oriented features or
performance characteristics. The purpose of the second experiment was toexpand the understanding of the effectiveness of the strategies designed to
counter advertising deception by investigating their effectiveness for
cognitively involving consumer durable goods.
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Hypotheses. A product-classification approach that accommodates style-of-
processing issues relevant to detecting and resisting advertising deception is
the FCB Grid advanced by Vaughn [9,10]. Here products are placed in the
cells of a 2x2 matrix based of high versus low involvement and "think"
(utilitarian) versus "feel" motivation (ego gratification, sensory gratification
or sensory pleasure). based on the independence of cognitive and affective
involvement and the inability of the FCB Grid to accommodate all
potentially relevant combinations of the two involvement types, we used a
Cognitive-Affective Involvement Grid where the cells are defined by high or
low cognitive involvement and high or low affective involvement [3,4,8].
The ice-cream bar used in our earlier study would be categorized as a
nondurable convenience good for which affective involvement or "feel"motivation exceeds cognitive involvement or "think" motivation. As such, it
may be conducive to an affective rather than a cognitive style of processing.
A more cognitively involving durable good may invite a stronger cognitive
orientation to the processing of an ad. Any such naturally occurring
processing propensity based on product type would occur independently of
and prior to information priming, externally induced framing and copy-
strategy effects, in essence providing a starting frame of reference. Different
starting frames could lead to differences in magnitude and/or nature ofpriming, framing and copy-strategy effects.
Informational priming, cognitive framing and attribute-oriented copy may
still enhance a consumer's ability to detect attempts at deception by
motivating increased processing. However, their propensity to alter the style
of processing from affective to cognitive would be less relevant since the
utilitarian motivation implicit in the product would ensure cognitive
processing. Thus, unlike the interactions of priming, framing and copy style
observed in the first experiment, this study hypothesizes main effects for
these factors when consumers are exposed to an ad for a cognitively
involving consumer durable good. Consumers are likely to perceive
deceptive ad claims as less credible, feel more negative effect toward the
advertised product, have a more negative attitude toward both the ad and the
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product, and indicate a lower likelihood of purchasing the product when
priming is present than when it is absent, when the task is cognitively rather
than affectively framed and when ad copy is attribute rather than
emotionally oriented.
Research Design, A test of the above hypotheses requires consumer
responses to deceptive advertising messages under the specified conditions
of priming, framing and copy orientation. A full-factorial design is used in
this study - two informational primings (relevant/irrelevant) by two framings
(cognitive/affective) by two copy orientations (attribute/emotional).
Subjects in the relevant informational priming condition were exposed to
comparative product information for the test product, a fictitious camera
carrying the brand name"Samtar 200," and three existing cameras, Fuji DL-
400, Nikon Tele-Touch and Vivitar TEC 155. Three attributes addressed in
misleading fashion in the ad were autofocus, low-light ability and distortion.
The ratings for the three "real" cameras came from Consumer Reports
Buying Guide, and those for the Samtar 200 were set by the researchers at
levels designed to establish the falsity of the test ad's claims that Samtar's
was superior on the three attributes. Samtar was shown to score worse than
all three competitors on low-light ability and to have mid-range performance
on autofocus: better than one competitor, the same as another and worse than
the third. Distortion performance was shown to be equal across the four
brands. This information was presented in the initial instructions to subjects
as coming from an independent product-testing organization. Subjects in the
irrelevant-priming condition received an equivalent amount of comparative
information for a product irrelevant to the test ad that they were to read, i.e.,
the informational sheet on ice-cream products for the earlier study.
The framing manipulation was embedded in instructions provided to
subjects prior to exposure to the misleading advertisement. Those in the
cognitive flaming condition were informed that "there are substantial
differences in quality or functional performance among major leading brands
in the product categories for which information is provided" and "attending
to any information provided about the products' benefits and effectiveness
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should help you to make well-informed evaluations." Subjects assigned to
the affective framing condition were told that "a brand's image causes
people's preferences to vary in these product categories, and leading brands
tend to have their own unique image and personality." They were advised
that "considering whether the product appeals to you emotionally and would
enhance your personal image should help you make well informed
evaluations."
Two versions of the test ad allowed the manipulation of copy orientation.
Both versions contained the same deceptive information: best autofocus
capability, best low-light ability and least distortion. However, the attribute-
oriented version highlighted the benefits of the specific attributes in
photographing a difficult-to-shoot stained-glass window from Notre DameCathedral. The emotional ad, in contrast, embeds the misinformation in a
humor/warmth appeal in which the photographer captures on film the stars
in her boyfriend's eyes and the cobwebs in his head.
Sample and Procedure. Students from an introductory marketing course at a
northeastern public university comprised the sample for this study. The
researcher randomly assigned subjects to conditions by randomly
distributing individual folders containing the relevant manipulations and test
ads to subjects at the beginning of the sessions. Subjects were seated at
sufficient distances to preclude their exposure to stimuli from others' folders.
Upon opening their folder, subjects found an instruction sheet informing
them that they would be exposed to information on products in a variety of
categories, including ads developed by agencies for specific brands,
summaries of objective information obtained from an independent, product-
testing organization or a combination of the two. Also included on the
information sheet were framing manipulation, either cognitive or affective,
and a statement indicating that subjects would be asked to evaluate products
in the relevant categories after reading the contents of the folder. The folder
also contained the informational prime (either relevant or irrelevant), the test
ad (either attribute or emotionally oriented) and filler material (ad and
product-testing information for an unrelated product). The informational
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prime in its appropriate condition, relevant or irrelevant, always preceded
the test ad.
Subjects were allowed five minutes to read the contents of the folder. Then
the folders were collected, and a questionnaire was distributed. Subjectsresponded to the questionnaire at their own pace, turning them into the
administrator and leaving the room upon completion. They were debriefed in
their classes after 'all experimental sessions were over.
Statistical Measures. The questionnaire included one item used as a check to
assess the extent to which the two versions of the test ad effectively
exemplified attribute- and emotion-oriented approaches. Subjects indicated
their perception of the ad's primary purpose using a seven-point scale from 1
= brand attribute information to 7 = brand image or emotion. No direct
checks are included for the priming and framing manipulations. None is
needed for priming since it involves only the obvious relevance of objective
factual information, and past research has cast doubt on the ability of
subjects to accurately analyze their processing level or orientation via post
hoc, self-report measures [5,7,12].
The same approach used by Ellen and Bone for an imagery measurement
was used to provide evidence of consumer processing style, based on theassumption that an affective processing style leads consumers to generate
vivid images with greater ease and frequency than a cognitive style which
induces them to focus on individual attributes in piecemeal fashion [2]. Each
of their subscales is used here - imagery quantity (three items), ease (three
items) and vividness (eleven items). The image-generation activity captured
by these scales is potentially affected by each of the experiment's
manipulations and by the nature of the test product, but it can be especially
informative as an indirect check of the framing manipulation. Successfulaffective framing may be expected to induce more image generation.
Several outcome variables were measured in the questionnaire to assess the
deceptive impact of the misleading claims in the various experimental
conditions. In an unaided-recall task, subjects wrote down everything they
could remember about the test ad. The number of deceptive attributes they
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correctly listed served as an index of deceptive-attribute recall. Perceived
claim credibility was measured with four semantic-differential items:
persuasive/unpersuasive, uninformative/informative, weak/strong and
believable/unbelievable. The Positive and Negative Affect Scale by Watson,
Clark and Tellegen provided evidence of affective responses generated by
the stimuli, ten items measuring positive affect and ten for negative affect
[11].
To assess the level of belief in the deceptive claims, an index was formed by
calculating the sum of belief items for the three attributes, measured by
asking whether Fuji, Nikon, Samtar or Vivitar had the strongest performance
on the relevant attribute, and scored I if Samtar was named and 0 otherwise.
A higher score on this index indicates a higher level of deception asevidenced by stronger belief in the deceptive product's dominance. Attitude
toward the ad and the brand were both assessed with three seven-point
semantic-differential items: good/bad, unpleasant/pleasant and
favorable/unfavorable. A single seven-point scale (very likely to very
unlikely) tapped purchase intention.
Empirical Results. Results are reported in nontechnical fashion. Statistical
details are available from the first author. All multiple-item scales were
found to be reliable. Subjects perceived a clear and significant difference in
the purpose and style of the two test ads, indicating that the copy orientation
was successfully manipulated.
The outcome predictions associated with the hypotheses are based on some
processing-style assumptions. Specifically, it was expected that relevant
informational priming, cognitive framing and exposure to the attribute-
oriented ad would induce a greater depth of cognitive processing than
irrelevant priming, affective framing and emotional ad exposure. It seems plausible that the level of cognitive, attribute-oriented and piecemeal
processing could be inversely related to the extent of image generation
occurring when exposed to the message. Consistent with this expectation
and providing tentative evidence for the processing styles assumed as a basis
for the hypothesized outcomes in the various conditions, the image scales
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indicated the generation of less imagery in the conditions thought to be
associated with cognitive processing. Therefore, the processing style
assumptions seem reasonable.
Tests of these predictions look at several specific indicators of the extent ofdeception - recall of the deceptive attributes, perceived claim credibility,
negative affect, belief in the deceptive product's dominance, attitudes toward
the ad and brand, and purchase intention - rather than relying exclusively on
a single measure of deception per se.
Consistent with the prediction of an advantage of relevant informational
priming in reducing consumer deception was a supportive finding for the
relevant over the irrelevant-priming condition for almost all of the indicators
discussed above. Recall of the deceptive attributes and negative affects were
higher in the relevant-priming condition. Perceived claim credibility was
lower as were attitude toward the ad, brand attitude and purchase intention.
The advantages of cognitive framing are not as strong and consistent as
those for relevant informational priming, but are still significant for the
deception outcomes. The level of post-exposure negative effect was greater
among cognitively than affectively framed subjects. Deception was lower
for cognitive- than for affective-framed consumers. A significant interactionreveals, however, that the advantage of cognitive framing occurs for
emotional, image-based appeals, not for attribute-oriented ads. There were
no significant results associated with the framing factor for the other
outcome variables. From these results, it appears that cognitive framing
offers some protection against deception by way of increased negative affect
and decreased belief in deceptive ad claims, with the latter advantage limited
to emotionally oriented ads.
Negative affect was higher in the attribute than in the emotional condition.However, attitude toward the emotional ad was actually more positive than
attitude toward the attribute-oriented message. This did not lead to a
significant advantage for the emotional ad in inducing favorable brand
attitude or purchase intention; mean differences between the two types of
ads for those and other outcome variables were not significant.
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This experiment set out to investigate the roles of informational priming,
cognitive or affective framing, and copy orientation in moderating consumer
susceptibility to deception when confronted with misleading ads for
cognitively involving durable goods. Consumers derived strong and
consistent benefit from exposure to relevant objective factual information
prior to confronting the erroneous ad claims. The influence of such
information in inoculating consumers against deception was found to span
the sequence of responses from initial processing style to such outcomes as
recall, perceived credibility, negative affect, ad and brand attitude and
purchase intention. Cognitive framing aided consumers by undermining
belief in deceptive claims reaching them through emotional ads and by
inducing appropriate affective responses. Attribute-oriented copy
undermined deception by inducing more negative effects than emotional
appeals. The results offer strong support for the hypothesized advantage of
informational priming and partial support for the expected benefits of
cognitive framing and attribute-oriented copy in battling consumer
deception.
Conclusion
Besides demonstrating the effectiveness of three variables in moderating
consumer deception in general, this research contributes to the literature by
clarifying differences in the way these factors operate for varying types of
products. Though one interaction was significant in the second experiment,
the pattern of results was primarily one of main effects of the three
independent variables, rooted in their ability to induce a cognitive-
processing style. This is clearly different from the more complex pattern of
interactions observed in the first experiment in a product category less prone
to a cognitive-processing orientation. The implication is that those
concerned about deception, in the interest of protecting consumers from
injury or protecting their firm or products from competitive misinformation,
can look to the strategies studied here, especially informational priming, as a
means of minimizing its damage. However, they should do so with an eye to
the type of product or service.
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Products or services valued for their experiential properties and appealing to
emotional or hedonic motivations naturally induce an emotional processing
style. Under such conditions, any effort to counter deception may need to
alter that processing style in order to facilitate the consumer's ability to
benefit from informational priming, and to offer an array of stimuli
sufficiently different from expectations to create a skeptical approach to
information processing. Some form of cognitive-framing explanation or
instruction to consumers may be particularly important in that environment.
But products or services valued for more utilitarian reasons are more likely
to induce a cognitive-processing style. Under such circumstances, the
presence of misinformation continues to necessitate the provision of
corrective information through such strategies as informational priming, but
the need for processing-style adjustment strategies appears lower. Thus,
while cognitive framing and attribute-oriented copy continued to exert some
positive influence in this study, the dominant factor for lessening deception
was informational priming, and its deception,countering ability was found to
be less dependent on the other two variables than in our prior research.
Replication efforts are needed to confirm our earlier result for "feel"
products other than the ice-cream bar we examined and the present result for
"think" products other than cameras. Such research should also investigatethe as-yet-unexamined quadrants of the FCB or Cognitive/Affective
Involvement Grid, perhaps by way of an expanded experimental design
which treats product type as a fourth experimental factor. It also falls to
future research to ascertain whether results observed in these experiments
apply to deception arising from more subtle forms of deception. Issues of
timing and sequence of deceptive ad content and informational priming
warrant future investigation. Future research should be conducted using a
broader and more representative sample. Finally, much remains to be doneto identify and investigate a more comprehensive array of moderators of
consumer susceptibility to deception, e.g., individual-difference and context
variables, and strategies capable of overcoming it
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WHY COUNTER ADVERTISMENT?
The competition is also growing rapidly. Because of this reason they have tocompete with their competitors constantly. In some industries the newcompanies may not come in to existence but the competition between theexisting companies is growing more and more. The soft drink industry ismainly suffering with this particular problem.The Companies have to continuously compete with their competitors to getgood market share and good profits. To face their competitors they have toknow their position and the competitors position in the market. For this, the
Companys will compare itself with their competitor that means they will dothe comparative analysisin all aspects.Item by Item comparison of two or more comparable alternatives,
processes, products, qualifications, set of data and systems etc. in accountingfor, for example changes in a financial statements items over severalaccounting period may be presented together to detect the emerging trends inthe firms operations and results.
From this we can understand that Counter advertisement means the
comparison between the similar things (products, place, technologies, livingbeings and etc.) regarding the features, nature, functions, behavior, SWOT,and many other characters is called Comparative analysis. In thiscomparative analysis the researcher will take any two or more similar
products (that means the functioning of the products are almost same) andcompare the common and the similar features of the products to find out thatwhich product is the best one.
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Detailed analysis of following Brands in thefield of competitive battles between:
COKE VS PEPSI
PIZZA HUT VS DOMINOS
NIKE VS ADIDAS
Coke vs pepsi
NEED FOR THE STUDY
In the present scenario the competitions between the soft drinksincreased very high. The companies are struggling a lot to keep up theirmarket share in the industry and to improve the sales of their products i.e.the turnover of the company. For this the company has to know their
position in the market and the opinion and the loyalty of the customers andthe retailers when compared to their competitor. Because of this reason thecomparative analysis is very important and useful to the Company.By the use of comparative analysis the companies can understand the
position of the company and the strength of the company in the market.
Through the comparative analysis we can understand that what strategies thecompetitors are using for the increase their sales volume. From the study wecan gather the information regarding the opinion of the retailers on thecompanies comparatively and this will help to plans for the future toincrease the performance of the company and to gain the loyalty of theretailers when compared to the competitors.Through this study the investigator got the personal experience in the
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market field. He can implement his theoretical knowledge in to practice. Hecan know how the companies are competing with each other to sustain in themarket in this tough competitive world. Hence I felt that there is a need forthe study. However, this type of study has not been carried out earlier by anyinvestigator.
Cokev/sPepsi-ProductAs seen ab o v e b o t h t h e co m p an i e s Co k e an d P ep s i h av e anumber of products . Many of these products are innovat ions
but there are a lso many products which are brought out jus tas a compet i t ive p roduc t fo r the o ther companies . Some of t h e se p r o d u c t s t h a t a r e b r o u g h t i n t h e m ar k e t b y b o t h t h ecompanies to compete against each o ther are as fo l lows:
Coke Pepsi
The main dark cola drink of thecompany which started the rivalry
between these companies.
Pepsi version of dark cola which isthe major primary competitor to
Coke.
Ful l Throt t le i s an energydr ink brand produced by The
Coca-Cola Company. I tdebuted in la te 2004 in Nor th
Amer ica .
AMP is an energy dr ink produced and distr ibuted by
PepsiCo under the MountainDew sof t dr ink brand.
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Vaul t i s a carbonated beverage that was released by
The Coca-Cola Company inJune 2005.
Mountain Dew MDX is anenergy dr ink manufacturedand dis t r ibuted by PepsiCo
under the Mountain Dewbrand. I t was introduced in
2005.
Powerade i s a spor ts dr ink byThe Coca-Cola Company andcurrent ly number two in the
spor ts dr ink marketwor ldwide.
Gatorade i s a non-carbonatedspor ts dr ink marketed byQuaker Oats Company, a
div is ion of PepsiCo.Or ig inal ly made for a th le tes ,i t i s now of ten consumed as a
snack beverage.
Spr i te i s a c lear , lemon- l imef lavored , non-caf fe inated sof tdr ink , produced by the Coca-
Cola Company. I t wasin t roduced to the Uni ted
Sta tes in 1961.
7 Up is a brand of a lemon-limeflavored soft drink.
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Minute Maid i s a product l ineof beverages , usual ly
associa ted wi th orange ju ice ,but now ext ends to sof t
dr inks of many kinds . TheMinute Maid company is nowowned by Coca-Cola , and i sthe wor ld ' s largest marketer
of f ru i t ju ices and dr inks . I ti s headquar tered in Houston,
Texas .
Tropicana Products i s anAmer ican company based in
Bradenton, F lor ida , USA,which i s one of the wor ld ' s
largest producers andmarketers of orange ju ice . I thas been owned by PepsiCo,
Inc . s ince 1998.
Nestea is a brand of iced teamanufactured and d is t r ibuted
by the Nest le company'sbeverage department in theUni ted Sta tes , and by Coca-
Cola in severa l Europeancountr ies , Brazi l and
Venezuela .
Lipton Or ig inal Iced Tea i s aready- to-dr ink iced tea brand
sold by Lipton through awor ldwide par tnership wi th
Pepsi .
Barq ' s i s a brand of root beer notable for being the only
Mug Root Beer is a brand name ofroot beer made by the Pepsi
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major Nor th Amer ican rootbeer to contain caffeine. I thas been bot t led s ince the
star t of the 20th century and
is cur rent ly so ld by the Coca-Cola Company.
company.
Diet Coke or Diet Coca-Colais a sugar - f ree sof t dr ink
produced and distr ibuted byThe Coca-Cola Company. I t
was in t roduced in the Uni tedSta tes in Ju ly 1982.
Diet Pepsi i s a low-calor iecarbonated cola . I t was
in t roduced in 1964 as avar iant of Pepsi -Cola wi th no
sugar .
Kinley i s a brand of s t i l l or carbonated water owned byThe Coca-Cola Company.
Aquafina is a non-carbonated bottledwater produced by PepsiCo.
Aquar ius i s a minera l spor tsdr ink manufactured by TheCoca-Cola Company. I t was
f i r s t in t roduced in 1983.
Al l Spor t was a spor ts dr ink .I t i s produced by PepsiCo.
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Fanta i s a sof t dr ink brandowned by The Coca-Cola
Company. I t i s produced anddis t r ibuted by The Coca-Cola
Company 's bot t lers .
Mir inda i s a brand of sof tdr ink . Mir inda i s owned by
PepsiCo.
Spr i te Ice was the f i r s t f lavor extension for The Coca-ColaCompany 's Spr i te brand sof t
dr ink .
Pepsi Blue is a soft drink made byPepsiCo and launched in mid-2002.
Coca-Cola Blak i s a cof fee-f lavoured sof t dr ink
in t roduced by Coca-Cola in
2006.
Pepsi Cappuccino i s acappuccino-f lavoredcarbonated sof t dr ink
produced by Pepsico.
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Maaza i s a Coca-Cola f ru i tdr ink brand marketed in India
and Bangladesh .
Sl ice i s a l ine of f ru i t -f lavored sof t dr inks
manufactured by PepsiCo andint roduced in 1984.
Limca i s a lemon and l imef lavoured carbonated sof t
dr ink made in India by Coca-cola .
Teem was a lemon- l ime-f lavored sof t dr ink produced
by The Pepsi-Cola Company.
PriceI n e co no mi cs a nd b us in es s, t he p ri ce i s t he a ss ig ne d
numer ical monetary value of a good, serv ice or asse t .P r i ce i s a l so cen t r a l t o m ar k e t i n g wh e r e i t i s o n e o f t h e
four var iables in the market ing mix that business people useto develop a market ing p lan .
Pr ic ing i s a b ig par t o f the marke t ing mix . Choos ing ther i g h t p r i ce an d t h e r i g h t p r i c i n g s t r a t eg y i s c r u c i a l t o t h e
market ing process .The pr ice of the product i s not something that i s f ixed . On
t h e o t h e r h a n d t h e p r i c e o f t h e p r o d u c t d e p e n d s o n m a n yo t h e r f ac t o r s . S o m e t i m es t h e p r i ce o f t h e p r o d u c t h a s g o tno th ing to do wi th the ac tua l p roduc t i t se l f . The p r i ce mayact as a way to a t t rac t target customers .
The p r i ce o f the p roduc t i s dec ided keep ing many th ingsin mind . These th ings inc lude f ac to r s l ike cos t incur red ont h e p r od u ct , t a rg e t m a rk e t, co mp e ti t or s , co nsu mer b u yi n gcapaci ty e tc .
Coke - Price
Coke was a company ru l ing the markets before Pepsientered . Ear l ier the pr ice of coke was cost based i .e . i t was
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decided on the cost which was spent on making the product plus the profi t and other expenses.
But af ter the emergence of o ther companies especia l ly thel ikes of Pepsi , Coca-cola s tar ted wi th a pr ic ing s t ra tegy
based on the basis of compet i t ion . Nowadays more expensesare spent on adver t i s ing my sof t -dr ink companies ra ther than on manufactur ing .
Coke has brought in a revolut ionespecia l ly in Indian markets wi th the Rs. 5
pr icing strategy which was very famous. I twas the f i r s t company to in troduce the smal l
bot t le of Coke for just Re.5. This campaign
was very successful especia l ly wi th the pr iceconscious Indian consumers .
Even today most pr ices of Coke are decided on the basisof the compet i t ion in the market .
Pepsi Price
Pepsi again decides i t pr ice on the basis of compet i t ion .
The best th ink about the company Pepsi i s tha t i t i s veryf lexib le and i t can come down wi th the pr ice very quickly .The company is renowned to br ing the pr ice down even up tohal f i f needed.
But th is r i sk taking a t t i tude has a lso earned Pepsi losses .Though lower ing the pr ice would a t t rac t the customers but i twould not help them cover up the cost incur red in product ionhence causing them losses .
This was the s i tuat ion ear l ier but now Pepsi i s a fu l l -f ledged and growing company. I t has covered a l l i t s lossesand i s now growing a t a rapid ra te .
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Place
Place i s a term that has a var ie ty of meanings in a d ic t ionarysense , but which i s pr incipal ly used in a geographic sense as
a n o u n t o d en o t e l o ca t i o n , t h o u g h i n a s en se o f a l o ca t i o nident i f ied wi th that which i s located there .
In market ing , p lace refers to one of the 4 P ' s , def ined as " them ark et pl ace ". I t ca n me an a g eog rap hic l oc at ion , a nindust ry , a g roup o f peop le ( a segment ) to whom a companyw ant s to s el l i t s pr odu ct s o r s er vi ce s, su ch a s y ou ng
p ro fess iona l women (e .g . fo r se l l ing cosmet ics ) o r midd le -aged fami ly men (e .g . for se l l ing fami ly cars) .
Coke - PlaceC ok e i s a m ul ti na ti on al c om pa ny a nd i t h as i ts m ar ke ta r o u n d t h e en t i r e wo r l d . Th i s c an b e sa i d j u s t b y t h e f i r s t
page on i t s s i te which asks people to se lec t the p lace of thei r choice .
Pepsi Place
Pepsi again has spread wor ldwide. Pepsi when enter ing anew market does not go in a lone but i t looks for par tners andmergers . Ti l l now Pepsi has col laborated wi th companiesl ike Quaker Oats , Fr i to- lays , Lip ton, S tarbucks, e tc .
Pepsi l ike Coke has spread a l l over the wor ld . I t i s
because of th is wor ldwide spread that now i t i s coming upwith Adver t i sements which can be broadcasted in thedi f ferent nat ions in the wor ld . The recent example wi thwould be the Pepsi adver t i sements having David Beckham asi t brand ambassador .
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Promotion
P ro mo ti on i s o ne o f t he fou r a sp ec ts o f ma rke ti ng .Promot ion compr ises four subcategor ies :
1 . A dv er ti si ng2 . P e rso na l s el l in g3 . S a le s p ro m ot i on4 . Pub l ic i ty and pub l ic r e l a tions
T he s pe ci fi cat io n of t he se fo ur v ar ia bl es c re at es ap r om o ti o na l m i x o r p r om o ti o na l p l an . A p ro m ot i on a l m i xs pe ci fi es h ow m uc h a tt en ti on t o p ay t o e ac h o f t he f ou r subca tegor ies , and how much money to budge t fo r each . A
p ro mo ti on al p la n c an h av e a w id e r an ge o f o bj ec ti ve s,including: sa les increases , new product acceptance , creat iono f b r an d eq ui t y, p o si t io n in g , co mp e ti t iv e r e ta l ia t io n s, o r creat ion of a corporate image.
Both the companies Peps i and coke a re f amous fo r the i r promot ions . The r ival ry was f i r s t s tar ted when Pepsi s tar tedwi th i t s b l ind t as t e t e s t s known as the Peps i Cha l l enge . Thecha l lenge i s des igned to be a d i r ec t r esponse to c r i ti c s whoa l l ege tha t Coca-Cola and Peps i -Cola a re iden t i ca l d r inks ,
w it h n o m ea ni ng fu l d if fe re nc es . T he c ha ll en ge t ak es t hef o r m o f a t a s t e t e s t . A t m a l l s , sh o p p i n g cen t e r s an d o t h e r
publ ic locat ions , a Pepsi representa t ive se ts up a table wi tht wo b l an k cu p s , o n e co n t a i n i n g P ep s i an d o n e w i t h Co k e .Shoppers are encouraged to tas te both colas , and then se lec twhich dr ink they prefer . Then the representa t ive reveals thetwo bot t les so the tas ter can see whether they prefer red Cokeor Peps i . I f Peps i i s r evea led , the shopper i s g iven a smal l
pr ize . The impl ica t ion i s that Pepsi tas tes bet ter than Coke,
and thus consumers should purchase Pepsi .
I n b l i n d t a s t e t e s t s , m o r e co n su m er s p r e f e r t h e t a s t e o f Pepsi to that of Coca-Cola . Because Coke was the h is tor ica ll e ad e r , m o r e p eo p l e ex p ec t ed t h a t t h ey ' d p r e f e r an d se l ec tCoke . The i r su rp r ise a t p ick ing Peps i in the b l ind t as t e t e s t(products were served in unmarked cups) helped change thei r
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m i n d s ab o u t wh i ch p r o d u c t t h ey p r e f e r . Cap t u r i n g t h i s o nf i lm, Peps i tu rned th i s in to a memorab le TV campaign tha tlas ted many years .
.
Respectively introduced in the year 1886 and 1903, both Coca-Cola and Pepsi were rivals each other trying to dominate the carbonated softdrink market. Both brands were undergoing global advertisement warthrough print ads and video ads, trying to stay on top of each other.
PIZZA HUT VS DOMINOS
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Fast food is one of the worlds largest growing food types. Indias fast foodindustry isgrowing by 40% .the multinational segment of Indian fast foodindustry is up to Rs. 20 billion, a figure which is expected to zoom morethan Rs.30 billion by 2010. In last 6 years,foreign investment in this sectorstood at rs.3600 million which is about one-fourth of total investment madein this sector. Because of the availability of raw material for fast food, globalchains are flooding into the country. The percentage share held byfoodservice of total consumer expenditure on food has increased from a verylow base to stand at 2.6% in 2001.Eating at home remains very much ingrained in Indian culture and changesin eating habits are very slow moving with barriers to eating out entrenchedin certain sectors of Indian society. The growth in nuclear families,
particularly in urban India, exposure to global media and western cuisine
and an increasing number of women joining the workforce have had animpact on eating out trends.
Major players in fast food are: McDonalds KFC Pizza hut Dominos pizza Caf coffee day Barista Subway
The main reason behind the success of the multinational chains is theirexpertise in product development, sourcing practices, quality standards,service levels and standardized operating procedures in their restaurants, astrength that they have developed over years of experience around the world.The home grown chains have in the past few years of competition with themncs, learnt a few things but there is still a lot of scope for improvement
Brief history of the company, Indian operations(dominos)
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The dominos brand was founded in the united states of America in 1960 byThomas and James Monaghan. Since then, that business has grown into aglobal network of over 8,500 pizza stores in more than 60 countries,involving over 2,000 franchises. Over its 49-year history, dominos hasdeveloped a simple business model focused on delivering quality pizzas in atimely manner. Dominos pizza, inc., completed its initial public offering in2004 and is listed on the New York stock exchange. (source:dominos pizza,inc.) Domino's pizza India ltd. was incorporated in March 1995 as the masterfranchisee for India and Nepal, of domino's pizza international inc., ofU.S.A. Moreover, the company holds the master franchisee rights for SriLanka and Bangladesh through its wholly owned subsidiary.Mr.Shyam.S.Bhatia and Mr.Hari.S.Bhartia of the jubilant organosys groupare the promoters of the company.Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states
and union territories (as on 31st august 2009). According to the India retailreport 2009,dominos are the largest pizza chain in India and the fastestgrowing multinational fast food chain between 2006-2007 and 2008-2009 interms of number of stores.Domino's vision is focused on " exceptional people on a mission to be thebest pizza delivery company in the world! ". Domino's is committed to
bringing fun, happiness and convenienceto the lives of our consumers bydelivering delicious pizzas to their doorstep in 30 minutes orless, and itsefforts are aimed at fulfilling this commitment towards its large andevergrowingcustomer base.Domino's pizza constantly strives to develop products that suit the tastes ofits consumers and hence delighting them. Domino's believes strongly in thestrategy of 'think global and act local. Thus, time and again domino's pizzahas been innovating with delicious new products10 such as crusts, toppingsand flavors suitable to the taste buds of Indian consumers. Further, providingvalue for money at affordable products to the consumers has been dominosmotto.Initiatives such as fun meal and pizza mania have been extremely popularwith consumers.
The brand positioning of khushiyon ki home delivery (happiness homedelivered) is the emotional benefit dominos offer to consumers.Major products they offer are pizzas, appetizers, pastas, cakes and
beverages.
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Brief history of the company, Indian operations(pizza hut)Pizza hut was started in 1958, by two brothers frank and dan carney inwichita, kansas. They had the idea to open a pizza parlour. They borrowed
$600 from their mother, and opened the very first pizza hut. In 1959, the firstfranchise unit opened in topeka, kansas. Ten years later, pizza hut wasserving one million customers a week in their 310 locations. In 1970, pizzahut was put on the new york stock exchange under the ticker symbol piz.Until 1997, pepsi owned pizza hut, the company also controlled a vastnetwork of fast-food operations that included kfc, pizza hut, and taco bell.With 29,000 locations across the world, the restaurant group was the largestin the world. However, pepsico decided to spin off its restaurant business asa separate company.
Pizza hut is one of the flagship brands of yum! Brands, inc., which also haskfc, taco bell, a&w and long john silvers under its umbrella. Pizza hut is theworlds largest pizza chain with over 12,500 restaurants across 91 countriesIn India, pizza hut has 137 restaurants across 36 cities, including delhi,mumbai, bangalore, chennai, kolkata, hyderabad, pune, and chandigarhamongst others. Yum! Is in the process of opening pizza hut restaurants atmany more locations to service a larger customer base across the country
THE OTHER COMPETITORS BRANDS
Pizza corner
Dominos
Mcdonalds Barista
Caf coffee day
Subway
Papa John
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IN WHAT ASPECT THEY DIFFERENCIATE EACHOTHER?
Domino's and Pizza Hut stress different aspects of delivery
Pizza Hut can produce, but can it deliver? Domino's Pizza can deliver, but iswhat it delivers any good?
Those are the two different questions each of the two pizza chains believethey must address in their marketing and advertising campaigns for home-delivered pizza, one of the fastest-growing segments of the restaurantindustry.
The Domino's gang is confident that they have established their identify asthe leaders in fast home-delivered pizza--in 30 minutes time, guaranteed.But their research indicated that they needed to tell consumers more aboutthe quality of their pizza.
In Domino's biggest advertising campaign to date, the Noid is an animatedclay cartoon character tha represents all that can be bad with home delivered
pies: cold, squashed, stuck to box tops and just not right. Domino's Pizzaclaims to be Noid-proof. The message: "Avoid the Noid."
According to Domino's, the competitors entering the pizza delivery marketdo not have the experience or efficiency it has in delivering hot, nutritional,quality pizza. Domino's has, afterall, been delivering pizza and perfecting itsdelivery system for 25 years. They want to get across the message thatdelivered pizza--their delivered pizza--is just as good as the pizza found inrestaurants.
But some armchair observers in the ad world say they do not understand the
Noid or his message. They think he is beside the point.
Pizza Hut says it has been making quality pizzas in its restaurants for 28years. Their pizza has tremendous brand and product awareness, but no"service awareness," says Bill McDonald, vicepresident of marketing forPizza Hut-Deliverty, a new and separate division of the chain.
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"Our advertising strategy is to make consumers aware that Pizza Hut is fullycommitted to delivery, that this is not a sideline business," McDonald said.
Although Pizza Hut has a long way to go in delivery before it reaches themarket penetration Domino's has achieved, McDonald said he believes his
job for Pizza Hut is an easier one than than that of his counterparts over atDomino's. "Domino's is only Domino's. Pizza Hut is Pizza Hut. Domino'shas to market an entire company. I have to market delivery."
1.1 BRAND BUILDING THROUGH
ADVERTISING
Domino's and Pizza Hut initially restricted their ad strategy to banners,hoardings and specific promotions. In August 2000, Domino's launched theHungry Kya? (Are You Hungry)'sequence of advertisements ontelevision. A company official said, We realized that a Pizza couldn't beslotted it could be a snack; then again, it could also be a complete mealThe only definitive common link between Domino's Pizzas and eating wasthe hunger platform.
The launch of Hungry Kya?'campaign coincided with Domino's tie-up with
Mahanagar Telephones Nigam Ltd. (MTNL) for the Hunger Helpline'. Thehelpline enabled the customers to dial a toll-free number (1600-111-123)from any place in India. The number automatically hunted out the nearestDomino's outlet from the place where the call was made and connected thecustomer for placing the order. The number also helped Domino's to add thecustomer's name, address and phone number to its database.
This was followed by Pizza Hut's first campaign on television in July 2001,which said, Good times start with great pizzas.'The ad was aired during
all the important programs on Star Plus, Sony, Sony Max, Star Movies,HBO, AXN, andMTV. Pizza Hut planned to spend between Rs.70-75million on the ad campaign in 2001. Said Pankaj Batra, The first adcampaign on TV defines Pizza Hut as a brand, and what it offers to itsexisting and potential customers. Once the awareness of this message ishigh, we will focus on other facets of the brand and its offerings.
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NIKE VS ADIDAS
MICHAEL PORTER'S FIVE
COMPETITIVE FORCES
Michael Porter has identified five forces that determine the intrinsic long-runattractiveness of a market or market segment : industry competitors,
potential entrants, substitutes, buyers and suppliers.
INTENSE SEGMENT RIVALRY
The rivalry among existing competitors in the footwear industry is quitehigh. Large firms such as Nike and Adidas have grown immensely over thelast two decades. Their global reach has expanded through all continents;this is attributed to the emergences of the Internet and e-commerce. Onlineselling has enlarged the reach for these firms allowing them to increase sales
while minimizing operating costs. Most individuals in North America haveaccess to high speed Internet and online purchasing has become the newtrend for the twenty first century.
THREAT OF NEW ENTRANTS
Due to the large scale of both Nike and Adidas, these firms are able tocontrol their costs to retain performance advantage over emergingcompetitors in the industry. Their web sites are more sophisticated and
enticing to browse. The capital injection into web site development is highand must be updated frequently with new promotions and added features toattract online shoppers. Selling footwear online is highly competitive;however, barriers to enter into this e-commerce industry are quite low. Thecapital requirement for setting up an online shop is comparatively lower thansetting up a traditional bricks and mortar establishment. Therefore, the
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online footwear industry is highly abundant with hundreds of onlinemerchants.
THREAT OF SUBSTITUTE PRODUCTS
Consumer substitutes for athletic footwear products are low because thereare little alternatives to switch, some substitutes for athlete footwear could
be boots, sandals, dress shoes or bear feet. Consumers are not likely tosubstitute due to the performance specification of the product. For instance,a basketball player would not wear boots to play basketball. Therefore, thereare no real substitutes for athletic footwear.
THREAT OF BUYERS GROWING BARGAINING POWER
There are a large number of buyers relative to the number of firms in thisindustry. Therefore, companies like Nike and Adidas must continuouslymarket their product and differentiate their brands against competitors, inorder to increase sales and market share. The use of online tools has helpedto enhance the accessibility of users. For example, Nike's "nikeid.com" linkallows consumers to customize and design their own footwear by permittingcustomers to specify the desired colours and the option to personalize thefootwear with their name.
THREAT OF SELLERS GROWING BARGAINING POWER
There are many suppliers in this industry. There is very little differentiationamong the suppliers, which eliminates suppliers' bargaining power. Leather,rubber, and cotton are commodities available abundantly in the market.Companies such as Nike and Adidas have a definite advantage and powerover their suppliers. These suppliers become dependent on these firms forsurvival. Moreover, Nike and Adidas have standardized their input
procedures pertaining to the materials used, their labor force, supplies,services, and logistics. Firms are able to switch between suppliers quicklyand cheaply, due to the globalised networks of cheap labour.
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Objective
To know the role of brands in decision-making Impact of counter advertisements on purchase behaviour
Market value of different brands
BRANDS positioning in different retail sector
Sector wise analysis of BRANDS
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Research Design
The area of our research is to study how advertising has an impact onimpressionable minds of the customer & how it affects their psychology &health. Advertising comes in different forms such as television, print, radio& internet. So using such various communicating devices how the productsare advertised to the so called new segment in the market. Our research
project usually deals with various studies about the nature of the customerlikes & dislikes, role in the decision making & the influence of advertisingon the buying habits seen by the kids.
The data collection was done using convenience sampling in the form ofquestionnaire & personal interview. We had used various secondary sourcesfor gathering data related to the research report. Analysis of data has beendone using quantitative methods such as Arithmetic mean. Those analysedfacts & findings are presented in different forms for ease of understanding
by use of pie charts, chronological order.
Our research report just does not concentrate on the findings but alsosuggests corrective measures to be taken up to minimize the after effects ofthe advertising world which will be always on the upsurge. The number ofchildren exposed now to the ad world will surely increase as newly foundsegment will be heavily dosed for surviving in this competitive market. Soour report aims at taking precautionary steps in the governments front,ethical front of the advertisers and of course on the parental & childrensfront.
Data Collection
Primary data
A questionnaire was prepared for getting the view of parents and their kidson the purchasing choices and eating habits of kids. It was mainly directedtowards what kind of impact does the advertising has on the impressionableminds & how advertisement decides their buying and eating habit. Thesurvey had to be done at the point of purchase. So it was carried out in food
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malls where the brands are sold & places like pizza hut & places like schoolswhere we can actually meet the parents. Another part of the survey wasconducted online by designing a questionnaire in a format so that it can beeasily answered on-line by the customer of different age groups.
Non Probability Sampling Technique was used & in that ConvenienceSampling was done. A total of about 100 different people were interviewedwith the questionaire at different places of purchase. Hence a conveniencesampling technique was decided upon which would enable using
personal judgment to conveniently approach the customer.
Secondary Data
The secondary data are those which have already been collected by someoneelse and which have already been passed through the statistical process. The
following sources of secondary data collection were used.
Interenet for getting information on rules & regulation on advertising. Internet for getting the contents of the foods targeting customerMagazines to get some relevant information on brands
Sampling methods are classified as either probabilityornonprobability. .
A probability sampling . Probability methods include random
sampling, systematic sampling, and stratified sampling.
Nonprobability sampling Non probability sampling include
convenience sampling, judgment sampling, quota sampling, and
snowball sampling.
Sampling Technique
Convenience sampling is used in exploratory research where the researcher
is interested in getting an inexpensive approximation of the truth. As the
name implies, the sample is selected because they are convenient. This
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nonprobability method is often used during preliminary research efforts to
get a gross estimate of the results, without incurring the cost or time required
to select a random sample.
Non Probability Sampling Technique is used & in that Convenience
Sampling is done. A total of about fifty different people will be interviewed
with the questionaire at different places of purchase. Hence a convenience
sampling technique is decided upon which would enable using
personal judgment to conveniently approach the customers.
DATA ANAYSIS1 Coke vs pepsi
Pepsi lost buzz supremacy to Coke, with 61% vs.
Cokes 39%.
61%
39%
pepsi
coke
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Regardless of which soda you like better though, Pepsi seems the better
value than Coke right now. Coke is trading at a nearly 20 percent premiumto Pepsi based on 2002 P/Es even though the two companies' earningsgrowth rates are nearly identical. (Pepsi's are actually a shade higher.)
And when you look at revenues, the gap is even more dramatic. Coke istrading at 7 times estimated 2002 sales while Pepsi is trading at 3.5 times2002 revenueestimates. Both companies are expected to post slight declinesin sales this year and an increase of about 4 percent in 2003. Due to thisdisparity in valuation, Jeff Kanter, an analyst with Prudential Securities, sayshe has a "buy' rating on Pepsi and "hold" on Coke. Prudential does not do
investment banking.
To be sure, Coke is still the market share leader in soft drinks. One of themain reasons the stock has outperformed Pepsi this year was because itreported a better than expected gain in unit volume in the first quarter. Andthe company has taken steps to cement its carbonated beverage lead as wellgain ground in the bottled water market. (Coke and Pepsi both have theirown brands of water, Dasani and Aquafina, respectively.)
On Tuesday, Coke announced that it was acquiring the Seagram's line ofmixers, tonic, ginger ale and seltzer from Diageo and Pernod Ricard. Andlast month, Coke entered into an agreement with Group Danone to distributeEvian bottled water in North America.
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Which brand of pizza is more
preferred
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p iz z a h
d o m i n o
60% PIZZA HUT40% DOMINOS
LOCATION PREFERRED FORHAVING PIZZA
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0
0.2
0.4
0.6
0.8
1
1.2
RESTURA
HOME
RESTURANT 80% 85%
HOME 20% 15%
DOM INO S P IZZA HUT
TOP FOUR BRAND AVAILABLE IN A SHOP
S.NO BRAND RETAILOUTLET
PERCENTAGE
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1 SLICE(PEPSI) 59 462 MIRINDA(PEPSI) 32 243 SPRITE(COKE) 26 20
4 LIMICA(COKE) 13 10TOTAL 130 100
0
20
40
60
80
10 0
12 0
1 2 3 4 5
PERCENTAG
RETAIL OUTL
BRAND
NO OF BOTTLE SOLD PER DAY ONAVERAGE
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0
1 0
2 0
3 0
4 0
5 0
6 0
P E P
C O
P E P S I 5 2 4 5 4 2 4 6
C O K 4 4 3 5 5 0 4 3
D IL S H A
G A R D E
P R E E
V IH A R
V IV E K
V IH A RA V E R A
The Influence of counter ads in increase of sales
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increase in sale
55%
45% peps
coke
ATHLETIC FOOTWARE GLOBAL MARKET
SHARE
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CUSTOMER SURVEY
We conducted a customer survey to find out the customer preference andwhy people prefer a certain brand .our survey consited of people in the agegroup of 15-40 most of them preferred nike to adidas but felt nike wasoverpriced .Those who preferred adidas however showed great brand loyaltyto the brand .we asked them to rate attributes like
nike
33%
adidas
16%puma
7%k-swiss
0%
reebok
6%
new balance
6%
skechers
5%
woodland
4%
bata
5%
others
18%
nike
adidas
puma
k-swiss
reebok
new balanc
skechers
woodland
bataothers
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quality,durability,price,comfort,style,advertising,innovation on scale of10 .The result that is obtain is graphically shown below
0
2
4
6
8
10
12
QUALITY
DURA
BILITY
PRICE
COMF
ART
STYLE
ADVERT
ISIN
G
INNO
VATION
ADIDA
NIKE
FINDINGS
1.Brand play major role in the sale of a product.
2.There is influence of counter ads in the increase of sales of product
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3.There will be influence of the T.V Ads on the increase in sales of thesoft drinks a lot.
4.People prefer to have branded pizza than ordinary pizza and they likevisiting the restaurant to have pizza.
5.Nike is the leading brand in shoe campany.
6. Company should introduce the new and attractive consumer promotionaloffer. Then the consumers will be attracted towards the brands. Then the
profits of the company will be increased.
7. As the T.V Ads are influencing the sales, the company should design thenew ads in an attractive way. The ads should be change frequently.
Thedifferent ads should be shown in different regions according to theculture ofthat area.
CONCLUSION
The project was a great experience for me in order to study the marketingaspects in the world. It was a great opportunity for me to do the project workin the end of the course because till now we learned the theory regarding themarketing and the marketing related concepts, but now we got the chance to
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implement that theoretical knowledge to do the project and got the practicalexperience in themarketing field. Through this study I learned a lot that howto approach a customer or any other people and how to explain our view tothem.
ADVERTISING industry is a vast growing industry when compared tomany other industries. This industry is a place where two major players arethere in the world. Doing my project in battle of brands is a great experienceas it gave me lot of opportunity and scope to understand the differentindustry and its marketing structure and distribution channels.
Lot of valuable information regarding the company and also the retailers,has been collected from the survey, which helped me clearly to understandthe real problems faced by the marketers to distribute and also make retailers
to sell the companys products in the market. I understood how difficult todo the marketing in the present scenario to get success in the marketingfield.
From the analysis of thedata collected from the retailers the investigator gotsome important findings regarding the company and the industry. For thosefindings some of the suggestions made to the company were reallyapplicable for the growth and benefit for the company in order to increase itsmarket share and to become the market leader in the respective industry,
because a large number of competitors craving for the same market. I gotappreciation for the suggestion to the Company.
The study of battle of brands has enable us to understand the comparativemarket analysis of major brands which has helped us to understand the
different strategies and tactics used by campany to gain profits and expandits business.
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BIBLOGRAPHY & REFERENCES
References: BooksM