business research pepsi

Group AStudents of Marketing ResearchGIFT UniversityGujranwala

June 04, 2007

Mr. Shoaib-Ul-HaqProfessor of Marketing ResearchGIFT University Gujranwala

Subject: Letter of transmittal

Respected Mr. Shoaib,

We submit here the report regarding the “Existing market problem of PEPSI CO. Gujranwala”. We have conducted a research to find out the possible solution of their problem. The submission date of this report is Monday 4th June, 2007. We have completed our project successfully and we are submitting it on due date.

Through this report, we were given the opportunity to conduct market research for a Multinational firm. We feel that this knowledge will be helpful in our latter studies and career.

We would like to thank you for giving us this great opportunity.

Sincerely,

Group A

Page 3 of 68GIFT BUSINESS SCHOOL

We would like to thank to Allah Almighty without HIS blessings we cant write this report, the management and

employees of PEPSI CO. Gujranwala for their cooperation, our respected teacher Mr. Shoaib-Ul-Haq for his guidance,

students and faculty of GIFT University, all those people who help us in conducting this research, and last but not the least

our families who support us in every field of life.


Serial no. Particulars Page no.

1. Table of Figures 6

2. Abstract 7

3. Executive Summary 8

4. Introduction 9

5. PEPSI CO Gujranwala 10

6. Research Objectives 11

7. Research Methodology 11

8. Questionnaire design 14

9. Findings 16

10. Conclusion 65

11. Recommendations 66

12. Research limitations 67

13. Appendix 68

14. Bibliography 73


Serial no. Particulars Page no.

1. Flow chart of questionnaire 15

2. Graphs (Question wise analysis) 18

3. Graphs(Critical analysis) 33

4. Graph(Surprising findings) 62

5. Cycle of Pepsi 69

6. Hierarchy of PEPSI (Gujranwala) 70


The purpose of this project is to find out the current market problem of any firm of Pakistan and then

conduct a complete research on that problem and present the findings that will helpful in decision

making.


PepsiCo is a world leader in convenient foods and beverages. It has offered a large number of brands globally. It has one of its plants in Gujranwala, Pakistan. In its Gujranwala plant, there are five assembly lines working at the same time for producing different sizes of bottles. They work for 24 hours in 2 shifts and the firm is open for 7 days in a week. They have latest machinery and competent labor. They spend 2 hours in maintenance of machines and 22 hours in production.

The research has been done on the current marketing problem of Pepsi. Our objective is to discover the attitude of the people towards existing Pepsi billboards, type of billboards which can attract the people and how these billboards effect their purchasing decision.

In order to conduct the research survey method has been adopted. We choose questionnaire as data collection device and probability sampling as a sampling plan. As PepsiCo has mass marketed its product so the whole population of Gujranwala has been targeted for research.

A small no. of people observe billboards and a very few can recall them. Overall the Pepsi consumption is more in teenagers and youngster that makes them most potential customers. The major reason of buying Pepsi is taste and availability. A small no. but people do buy by watching billboards.

People are of the view that existing Pepsi billboards are more appealing among all other soft drink brands’ billboards.

People hold the opinion that billboard ads should be different from TV ads to make them more attractive. People of all ages are more likely to get attracted by the billboards on which celebrities have been introduced. Billboards with dark colors, medium to large size and somewhat irregular shapes can attract most attention of the people.


PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and 168,000 employees.

The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion.

Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles.

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

Sustainable advantage

Three major sustainable advantages give PepsiCo a competitive edge in the global marketplace:

1. Big, muscular brands; 2. Proven ability to innovate and create differentiated products;

and 3. Powerful go-to-market systems.

Making it all work there are extraordinarily talented and dedicated people.

PEPSI CO is offering different brands globally. It has its plants in almost all countries.

Brands and companies


PepsiCo has hundreds of brands around the globe. These are some of the best known.

Frito-lay brands Pepsi-cola brands Gatorade brands Tropicana brands Quaker brands

Pepsi-cola brands

From these brands, there are many brands under the head of Pepsi-cola. Some of them are Pepsi-Cola; diet Pepsi, Pepsi Twist, mountain dew, diet mountain dew, Team, Mirinda,7-up, Aqua Fina etc.

PEPSI CO. GUJRANWALA

PEPSI CO. is one of the leading multinational firms exist in Pakistan and by visiting to its Gujranwala plant; we got to know that the attitude of its management and labor is one of the reasons of this fact.

It has different departments working very sincerely for the success of PEPSI. We observed that the management is very loyal to its firm and always working for the betterment of the firm. In every department of PEPSI, we saw a quote

“Managers must think and machines should work”

This shows their serious attitude towards their job. To watch the hierarchy of PEPSI CO. Gujranwala, see exhibit 1.

We had a meeting with marketing executive of PEPSI CO. Gujranwala; Mr. Ahmad Khan. He is very knowledgeable and cooperative person. He told us their existing market problem in detail.

They are working on the design of billboards nowadays. According to him, there are so many billboards in a single city that it becomes very difficult for them to make an eye-catching billboard. So he wanted from us to conduct a research on people’s attitude towards Pepsi’s existing billboards and how can the design of Pepsi billboards be improved.

Mr. Ahmad tells us that they are themselves working on this point and our findings are very beneficial for their own research.


After understanding the requirements of our client, we start our research with following objectives:

Primary objectives:

Find out the attractiveness of Pepsi’s existing billboards. Which type of billboards attracts the attention of people?

Secondary objectives:

Find out the location where people mostly observe the billboards Do billboards play any role in the sales of Pepsi? Which age group is mostly attracted by billboards?


To meet our above objectives, the research designed used by us is quantitative research because we need to get information from large date. Moreover we want to find out small differences between the opinions of people. In quantitative research we adopt survey research. Our objective is to discover the type of billboards which attracts the people and how these billboards effect their purchasing decision.

To conduct survey research, we choose questionnaire as data collection device as it will provide large amount of data in less time. Moreover, it is cost effective too. As we are conducting research for PepsiCo so the population of our interest is the whole population of Gujranwala. As Pepsi is using Mass Customization technique so every person of Gujranwala is its target.

As the whole population of Gujranwala is our target so there are no constraints like demographic, geographic, etc in our research. Our sampling units contain all type of people like students, executives, households, etc. Moreover there is no defined age group in our research because Pepsi is drunk by kids as well as old aged people.

We choose probability sampling as our sampling plan because we want to project our findings to the whole population. We collect our samples through systematic probability sampling. So, we took 100 samples from almost every area of Gujranwala. We choose 100 as our sample size due to time constraints. Moreover, we think that this size is good enough to represent our population’s opinion.

We generated our lists of sample units by collecting the information about different areas of Gujranwala. Then we moved to different areas of Gujranwala and use skip pattern to select our samples. We select every third person who visit that places. We use this method because our intention is to give equal chance to every person of Gujranwala to be our sample. We face great difficulty in collecting information for our research, because people are not interested in filling questionnaire due to many reasons; lack of interests, lack of time, lack of confidence, etc. But we tried our best to convince them to fill our questionnaire. So, after much effort we are able to get 100 filled questionnaires.

Secondary Research


Prior research has been done on the use and effectiveness of billboards. The crux of the previous research is as under:

Four primary reasons why businesses use billboard advertising: visibility, media efficiency, local presence, and tangible response have been revealed which are as follows:

VisibilityCompanies use billboards because they provide high visibility to the target audience; they are easily seen, make a strong impression, and are visible 24 hours a day.

Media EfficiencyFrom a media-planning standpoint, companies use billboards for their efficiency in terms of reach, frequency, and cost per thousand exposures.

Local PresenceAspects of billboard location that influence use include generating awareness in close proximity to the business, maintaining brand presence, and providing a “last hit” close to the place of business.

Tangible ResponseProducing a tangible consumer response, such as increasing traffic or sales, also influences a company’s decision to continue using billboards.

The eight executional factors that are associated with successful billboard advertising: name identification, location of the billboard, readability, clarity of the message, use as a tool of integrated marketing communications (IMC), powerful visuals, clever creative, and information provision have been identified.

Visibility and media efficiency are the most important influences on the decision to continue using billboards. These attributes help billboards to be noticed and read rather than screened out through the process of selective perception.

The ability to place attention-getting billboards close to the point of sale is an especially important reason to use billboards. The need to expose the message to the consumer when and where the consumer is ready to make a purchase is extremely very important.


The moving billboard i.e. trucks/trailers reveals a lot about the company image. A good company color scheme, logo or graphics can build image recognition and speaks volumes about. Quality paint professionally applied helps trucks look their best, and finishes can help fleets protect their investment.

Large format has the potential to reach a wide audience but while the use of novel effects can create stand-out, it's crucial that the creative is carefully thought out and well executed. Large format requires an imaginative, but relevant, response to where it will appear.


We design a questionnaire by keeping in mind the convenience of our sample and our objective. We include both closed and open ended questions in our questionnaire. In closed ended questions we include dichotomies, multiple-choice and scale response questions to get the advantage of all of them.Then we tried our best to use as clear and easy wording as possible in our questionnaire. Moreover, through our questions, we tried to capture the interest of our respondents too.

The flow which we adopted in our questionnaire is on the next page:

(Screener) Tabulate and terminate No Yes


Watch ads

(Warm-ups)

Yes/No

(Transitions)

Yes/No

Yes

No Yes/No

(If choose any of a, b, c or d)

(If choose ‘e’)

Yes/No (Complicated)

(Classifying and demographic)

After developing our questionnaire, we evaluated the questionnaire ourselves. Then we approved it from our sir Shoaib-ul-Haq. After his approval we pretest our questionnaire by some of our senior students.


Some general questions which are easy to answer

Allocate 100 score among list of soft drink brands on the basis of attractiveness of their billboards

Can you recall any billboard of Pepsi?

Do you feel that billboards of Pepsi are attractive?

You buy Pepsi because of its

a. Tasteb. Advertisementc. Availabilityd. Attachmente. I don’t buy it

5 questions about the design of billboards; then

2 open ended questions about suggestions for outdoor advertisement of Pepsi Questions on the

demographics of respondents; age, gender and Pepsi consumption; terminate the interview

Have you ever bought Pepsi by watching its billboard?

After that for the convenience of our respondents we developed the questionnaire in both English and Urdu language. The copy of our questionnaire in both English and Urdu is attached in appendix.


The distribution of the sample in attributes of the respondents like gender, age,

Pepsi consumption is given below:

Statistics

The frequency details of gender are given below:

Gender of respondent

Frequency Percent Valid PercentCumulative

PercentValid female 44 48.4 48.4 48.4

male 47 51.6 51.6 100.0Total 91 100.0 100.0

The age frequency of respondents is given below:

Age of respondent

Frequency PercentValid

PercentCumulative

PercentValid less than

1611 12.1 12.1 12.1

16-30 66 72.5 72.5 84.6 more

than 3014 15.4 15.4 100.0

Total 91 100.0 100.0

The frequency distribution of Pepsi consumption is given below:

Pepsi consumption in a week


age of respondentgender of

respondentPepsi consumption in

a weekN Valid 91 91 91

Missing 0 0 0Mode 2 2 1

Frequenc

y PercentValid

PercentCumulative

PercentValid less than

1050 54.9 54.9 54.9

10-20 24 26.4 26.4 81.3more than 20

7 7.7 7.7 89.0

none 10 11.0 11.0 100.0Total 91 100.0 100.0

Data Reliability Test

Reliability Statistics

Cronbach's Alpha N of Items

.644 2

The table is showing the result that is 0,644 which mean that our data is reliable.

Question-wise Analysis


Question no.1

On which media do you mostly notice ads?

a). Newspapersb). Televisionc). Billboardsd). Magazines e). Internetf). Radio

newspaper

telev ision

billboards

magazines

internet

adds most noticed on media

Pies show counts

8.79%

67.03%

18.68%

3.30%2.20%

Results

The media on which most ads are noticed is the television that makes percentage of 67.03%

Only 18.68% people watch ads on billboards.

Question no.2

Have you recently observed any ad on billboard?

a). Yes b). No


yes

no

observed add

Pies show counts

83.52%

16.48%

Results

The data shows that 83.52% respondents have recently observed an ad on billboard

It means that majority of people can recall observed ads on billboards.

Question no.3

At which location do you mostly observe billboards? (CHECK ONE)

a). Traffic Signalsb). Commercial areasc). Road sidesd). any other please specify


traffic signals commertial areas road sides other

location of billboards

0

10

20

30

40

Co

un

t

Results

The above graph shows the location at which mostly billboards are observed is the road sides after that is the commercial area and then traffic signals.

This shows that billboards are most observable at busy locations.

Question no.4

How many billboards do you watch in a day?

a). less than 10b). less than 15c). less than 20d). more than 20


less than 10 less than 15 less than 20 more than 20

billboards watch in a day

0

10

20

30

40

50

Co

un

t

Results

According to the replies of respondents 49 out of 91 watch less than 10 ads in a day and 27 out of 91 watch less than 15 ads.

Question no.5

From these watched billboards, how many can you recall?

a). less than 5b). 5-10c). more than 10


less than 5 5-10 more than 10

recalled billboards

0

10

20

30

40

50

Co

un

t

Results

Of these watched billboards most of the people can recall only less than 5 billboards.

A very few no. of people can recall more than 10 ads.

Question no.6

Do ads on billboards play any role in your purchasing decisions?

a). Yes b). No


yes

no

billboards play role in purchase

Pies show counts

51.65%48.35%

Results

The above graph shows that 51.65% people say that billboards play a role in there purchase decision.

Question no.7

Please allocate 100 scores among these soft drinks according to the attractiveness of their billboards. (GIVE HIGHEST SCORE TO THE MOST ATTRACTIVE & PLEASE RECHECK THE TOTAL)

COKEPEPSI SPRITE7-UPDEWFANTA 100

Statistics

score coke

score sprite

score Pepsi

scrore7up

score dew

Score fanta

N Valid 91 91 91 91 91 91 Missing 0 0 0 0 0 0Mean 16.77 17.46 19.55 14.70 14.73 13.38Median 15.00 15.00 20.00 10.00 10.00 10.00Mode 10 10 10 10 10 10


Results

The above table shows that on average the billboards of Pepsi are most attractive among people.

Sprite and coke are close to Pepsi that have the mean 17.46 and 16.77 respectively,

Question no.8

Can you recall any billboard of Pepsi?

a). Yes b). No

yes

no

recall billboad of pepsi

Pies show counts

54.95%

45.05%

Results

The above graph shows that 54.95% people can recall the billboards of Pepsi which makes the majority.

Question no.9

Do you feel that the billboards of Pepsi are attractive?

a). Yes b). No c). I don’t know


y es

no

i dont know

attractiveness of billboard of pepsi

Pies show counts

48.00%

40.00%

12.00%

Results

48.00% people have the opinion that billboards of Pepsi are attractive. 40% people don’t find it attractive.

Question no.10

You buy Pepsi because of its (PLEASE CHECK ONE)

a). Tasteb). Advertisementsc). Attachmentd). Availabilitye). I don’t buy it


taste

ads

attachment

availability

i dont buy

reason of buying pepsi

Pies show counts

38.46%

12.09%12.09%

27.47%

9.89%

Results

According to the responses the reason of buying is because of its taste which makes 38.46% and 27.47% people buy because of availability.

There are only 12.09% people who buy because of advertisement. So the result shows that although a low percentage but advertisement

does play a role in their reason for buying Pepsi.

Question no.11

Have you ever bought Pepsi by watching billboards?

a). Yes b). No

yes

no

bought pepsi by watching billboard

Pies show counts

20.93%

79.07%


Results

The result shows that 79.07% people replied in no while 20.93% have bought Pepsi by watching its billboard.

Question no.12

If the billboards of Pepsi is of bottle shape then

a). I definitely like itb). I probably like itc). I neither like nor dislike itd). I probably dislike ite). I definitely dislike it

i definitelty like it i probably like it i neither like not dislike it

i probably dislike it

i definitely dislike it

bottle shape billboard

0

10

20

30

40

50

Co

un

t

Results


Majority of respondents are of the opinion that if the billboard of Pepsi is of bottle shape they will probably like it.

The chances of likeness are high.

Question no.13

Do you think that the billboard ads should be different from TV ads?

a). Yes b). No

y es

no

different than tv adds

Pies show counts

85.71%

14.29%

Results

Above graph shows that 85.71% respondents hold the opinion that billboard ads should be different from TV adds that makes a huge percentage.

Question no.14

Do you think that the billboards featuring celebrity attract the most?



yes

no

i dont know

billboards featuring celebrity

Pies show counts

75.82%

18.68%

5.49%

Results

The graph shows that 75.82% respondents think that billboards of Pepsi are attractive while 18.68% people replied in negative.

Only a few percentage doesn’t hold any opinion about it.

Question no.15

The most attractive billboards should have

Dark colors 1 2 3 4 5 light colorsLarge size 1 2 3 4 5 Small SizeRegular shape 1 2 3 4 5 Irregular shape


very dark

somewhat dark

medium

some what light

very light

color of billboards

Pies show counts

29.67%

30.77%

21.98%

7.69%

9.89%

Results

Most of the respondents have the common opinion that color of the billboards should be dark to make them eye-catching.

very large large size medium size small size very small size

size of billboards

0

10

20

30

40

Co

un

t


Results

Most of the respondents are of the view that size of the billboards should be very large to make them attractive.

regular shape some what regular

moderate some what irregular

irregular shape

shape of billboards

0

5

10

15

20

25

30

Co

un

t

Results

To make the billboards attractive people hold the opinion that they should be in somewhat irregular shape.

Question no.16

A billboard with an embossed Pepsi bottle is

a). very Attractiveb). somewhat Attractivec). somewhat unattractived). very unattractivee). I don’t know


very attractive somewhat attractive

somewhat unattractive

very attractive i dont know

embossed bottle on billoard

0

10

20

30

40

50C

ou

nt

Results

If the billboard of Pepsi is in embossed bottle shape that will look somewhat attractive to the majority of people

It shows that there is a chance of likeness.


Critical Analysis

Pepsi consumption in a week * gender of respondent Cross tabulation

Count

gender of respondent

Totalfemale malePepsi consumption in a Week

less than 10 25 25 5010-20 13 11 24more than 20 1 6 7none 5 5 10

Total 44 47 91

female male


0

5

10

15

20

25

Co

un

t

pepsi consumption

in a week

less than 10

10-20

more than 20

none

Results

According to the data 54% people consume less then 10 bottles in a weak

and gender wise the consumption is almost same between males and

females.


The consumption between 10-20 bottles is 26% and is more in females as

compared to males.

Moreover consumption more than 20 bottles is only 7% and it is more in

males.

So it means that overall people mostly consume less than 10 bottles in a

weak.

Pepsi consumption in a week * age of respondent Cross tabulation

Count age of respondent Total

less

than 16 16-30more than

30 Pepsi consumption in a week

less than 105 33 12 50

10-20 2 21 1 24 more than

202 5 0 7

none 2 7 1 10Total 11 66 14 91


less than 10 10-20 more than 20 none

pepsi consumption in a week

0

10

20

30

40

Co

un

t

age of respondent

less than 16

16-30

more than 30

Results

Pepsi consumption less than 10 bottles in a week is 85% in age more than

30 years, 50% in age 16-30 and 45% in age less than 16 years.

A Pepsi consumption 10-20 bottle in a week is 32% in age 16-30 years

and very low in other age groups.

Overall Pepsi consumption is more in age 16-30 years that makes them

the most potential customers.

This shows that for profit Pepsi should hit the most potential customers in

market Pepsi should make the billboards focus on teenagers and

youngster’s whose age ranging from 16 to 30 years.


Reason of buying Pepsi *age of respondent *gender of respondent Cross tabulation

Count gender of respondent age of respondent Total

less than

16 16-30more than

30 Female reason of

buying Pepsi

taste1 14 3 18

ads 1 6 0 7 attachment 1 2 1 4 availability 1 6 3 10 I don’t buy 1 4 0 5 Total 5 32 7 44

Male reason of buying Pepsi

taste6 10 1 17

ads 0 4 0 4 attachment 0 4 3 7 availability 0 12 3 15 I don’t buy 0 4 0 4 Total 6 34 7 47


female male


0

5

10

15

20

Co

un

t

reason of buying

pepsi

taste

ads

attachment

availability

i dont buy


age of respondent

0

5

10

15

20

25

Co

un

t

reason of buying

pepsi

taste

ads

attachment

availability

i dont buy


Results According to the data gender wise the reason of buying Pepsi is its taste

and secondly its availability. While reason of buying Pepsi because of its advertisement is more in

females them males i.e.16% and 8% respectively. Moreover, most of the people of age group less than 16 and 16-30 years

buy Pepsi because of its taste while people of age more than 30 years buy it because of availability.

Among these age groups most people of 16-30 years buy Pepsi because of its advertisement.

Age of respondent * gender of respondent * bought Pepsi by watching billboard Cross tabulation

Count bought Pepsi by watching billboard

gender of respondent Total

female male Yes age of

respondentless than 16

2 1 3

16-30 6 9 15 more than

300 3 3

Total 8 13 21No age of


3 5 8

16-30 26 25 51 more than

307 4 11

Total 36 34 70


yes no


0

10

20

30

40

Co

un

t

gender of

respondent

female

male

yes no


0

10

20

30

40

50

60

Co

un

t

age of respondent

less than 16

16-30

more than 30


Results

Data shows that 18% of the female and 27%of the male respondents have bought Pepsi buy watching its billboards.

27% respondents of age less than16 years, 23% of 16-30 years and 21%of more than 30 years have bought Pepsi by watching its billboard.

This shows that may be for once but people have bought Pepsi by watching its billboard.

Age of respondent * gender of respondent * recall billboard of Pepsi Cross tabulationCount

recall billboard of Pepsi


female male Yes age of

respondent

less than 162 4 6

16-30 17 20 37

more than 30 3 4 7

Total 22 28 50

No age of respondent

less than 163 2 5

16-30 15 14 29

more than 30 4 3 7

Total 22 19 41


female male


0

3

6

9

12

15

Co

un

t

attractiveness of

billboard of pepsi

yes

no

i dont know

yes no

recall billboad of pepsi

0

5

10

15

20

25

30

Co

un

t

gender of

respondent

female

male


Results

The above data shows that male respondents as compared to the females can easily recall ads.

Age wise, almost respondents of all ages can easily recall ads of Pepsi.

Age of respondent * gender of respondent * attractiveness of billboard of Pepsi Cross tabulation

Count attractiveness of billboard of Pepsi


female male yes age of


0 3 3

16-30 9 10 19 more than

300 2 2

Total 9 15 24no age of

respondent16-30

8 8 16

more than 30

2 2 4

Total 10 10 20I don’t know

age of respondent

less than 162 1 3

16-30 0 2 2 more than

301 0 1

Total 3 3 6


yes no i dont know


0

3

6

9

12

15

Co

un

t

gender of

respondent

female

male

yes no i dont know


0

5

10

15

20

Co

un

t

age of respondent

less than 16

16-30

more than 30


Results

The data shows that males find billboards of Pepsi more attractive than females i.e. 53% and 40% respectively

50% respondents of age less than 16 years, 51% of age 16-30 years and 28% of age more than 30 years have opinion that Pepsi billboards are attractive.

As major respondents of age 16-30 years finds billboards of Pepsi more attractive but females of this age group like it more than males.

The shows that people don’t have strong likeness about the billboards of Pepsi.

Age of respondent * gender of respondent * different than TV adds Cross tabulation

Count

different than TV adds




4 5 9

16-30 28 28 56 more than

307 6 13



1 1 2

16-30 4 6 10 more than

300 1 1

Total 5 8 13



age of respondent

0

10

20

30

40

50

60

Co

un

t

different than tv

adds

yes

no

female male


0

10

20

30

40

Co

un

t

different than tv

adds

yes

no


Results According to the above data majority of both male and females have the

opinion that billboard ads should be different from TV ads.

Furthermore, respondents of all ages have common opinion that billboard ads should be different.

Age of respondent * gender of respondent * billboards featuring celebrity Cross tabulation

Count billboards featuring celebrity




3 5 8

16-30 25 24 49 more than

307 5 12



1 1 2

16-30 7 7 14 more than

300 1 1

Total 8 9 17I don’t know

age of respondent

less than 161 0 1

16-30 0 3 3 more than

300 1 1

Total 1 4 5



age of respondent

0

10

20

30

40

50

Co

un

t

billboards featuring

celebrity

yes

no

i dont know

female male


0

10

20

30

40

Co

un

t

billboards featuring

celebrity

yes

no

i dont know


Results According to the above data 72% male and 79% females have opinion

that billboards featuring celebrity looks attractive. Furthermore, 74% respondents of age 16-30 years that makes our

potential market hold opinion that billboard featuring celebrity are different. Moreover 85%of the respondents of age more than 30 have the positive opinion.

Overall majority of all ages are in the favor that billboards featuring celebrity attracts the most.

Age of respondent * gender of respondent * bottle shape billboard Cross tabulation

Count bottle shape billboard


female male I definitely like it

age of respondent

less than 161 1 2

16-30 7 7 14 more than 30 1 3 4 Total 9 11 20I probably like it

age of respondent

less than 161 3 4

16-30 12 19 31 more than 30 4 3 7 Total 17 25 42I neither like not dislike it

age of respondent

less than 163 1 4

16-30 11 3 14 more than 30 2 0 2 Total 16 4 20I probably dislike it

age of respondent

less than 160 1 1

16-30 2 2 4 more than 30 0 1 1 Total 2 4 6I definitely dislike it

age of respondent

16-303 3

Total 3 3


female male


0

5

10

15

20

25

Co

un

t

bottle shape

billboard

i definitelty like it

i probably like it

i neither like not dislike it




age of respondent

0

10

20

30

Co

un

t

bottle shape

billboard

i definitelty like it

i probably like it

i neither like not dislike it




Results

The above data shows that majority of the respondents both gender and age wise hold the opinion that they will probably like it.

The strong opinion that respondents will definitely like it is small but the dislikness is also very few.

Age of respondent * gender of respondent * embossed bottle on billboard Cross tabulation

Count

embossed bottle on billboard


female male very attractive

age of respondent

less than 162 3 5

16-30 9 9 18 more than

301 2 3

Total 12 14 26somewhat attractive

age of respondent

less than 162 1 3

16-30 20 19 39 more than

305 3 8

Total 27 23 50somewhat unattractive

age of respondent

less than 161 1 2

16-30 2 4 6 more than

300 1 1

Total 3 6 9very attractive

age of respondent

less than 161 1

16-30 1 1 Total 2 2I don’t know age of

respondent16-30

1 1 2

more than 30

1 1 2

Total 2 2 4


female male


0

5

10

15

20

25

30

Co

un

t

embossed bottle on

billoard

very attractive

somewhat attractive


very attractive

i dont know


age of respondent

0

10

20

30

40

Co

un

t

embossed bottle on

billoard

very attractive

somewhat attractive


very attractive

i dont know


Results

Gender wise respondents find emboss bottle billboards somewhat attractive.

While age wise the data shows that 45% respondents less than 16 years of age find it very attractive

57% of 16-30 years of age and 59%of more than 30 years of age find it somewhat attractive.

Adds most noticed on media * gender of respondent Cross tabulation

Count

gender of

respondent Total female male adds most noticed on media

newspaper

2 6 8

television 29 32 61 billboards 9 8 17 magazines 2 1 3 internet 2 0 2Total 44 47 91


female male


0

10

20

30

40

Co

un

t

adds most noticed

on media

newspaper

television

billboards

magazines

internet


age of respondent

0

10

20

30

40

50

Co

un

t

adds most noticed

on media

newspaper

television

billboards

magazines

internet


Adds most noticed on media * age of respondent Cross tabulation

Count age of respondent Total

less

than 16 16-30more than

30 adds most noticed on media

newspaper

3 5 0 8

television 6 46 9 61 billboards 1 12 4 17 magazines 0 2 1 3 internet 1 1 0 2Total 11 66 14 91

Results

Age wise 9% respondents less than 16 years, 18% of 16-30 years and 28% of more than 30 years watch billboards.

Gender wise males and females watch billboards 17% and 20% respectively.

Recalled billboards * billboards watch in a day Cross tabulation

Count billboards watch in a day Total

less

than 10less than

15less than

20more than

20 recalled billboards

less than 5

32 9 2 5 48

5-10 13 11 1 4 29 more than

100 7 2 5 14

Total 45 27 5 14 91


Results The above data shows that 45 out of 91 respondents are exposed to less

than 10 billboards and 71% respondents can recall only less than 5 billboards.

Moreover 27 out of 91 watches less than 15 billboards and 33% can recall less than 5, 44% can recall 5-10 billboards and only 25% can recall more than 10 billboards.

It means that majority watches ads less than 10 and then can recall very few ads.

Cross tabulation of age, gender and color of billboards

female male


0

2

4

6

8

10

12

14

Co

un

t

color of billboards

very dark

somewhat dark

medium

some what light

very light



age of respondent

0

5

10

15

20

Co

un

t

color of billboards

very dark

somewhat dark

medium

some what light

very light

Results Both males and females are of the opinion that dark color billboards attract

the most. Age group less than 16 years is of the view that dark colors make

billboards more attractive while age group16-30 years and more than 30 years think that very dark color billboards attract the most.


Cross tabulation of age, gender and size of billboards

female male


0

5

10

15

20

Co

un

t

size of billboards

very large

large size

medium size

small size

very small size



age of respondent

0

5

10

15

20

25

Co

un

t

size of billboards

very large

large size

medium size

small size

very small size

Results

Both gender and age wise respondents have mixed results and hold the opinion that size of the attractive billboards should be medium to very large.


Cross tabulation of age, gender and shape of billboards


age of respondent

0

5

10

15

20

25

Co

un

t

shape of billboards

regular shape

some what regular

moderate

some what irregular

irregular shape

female male


0

5

10

15

20

Co

un

t

shape of billboards

regular shape

some what regular

moderate

some what irregular

irregular shape


Results Respondents of less than 16 years of age hold the opinion that attractive

billboards should have somewhat regular shape.

Furthermore, age groups 16-30 years and more than 30 years think that somewhat irregular shape can make billboards more attractive.

Gender wise male think that some what irregular shape billboards attract most while female have mixed opinion.

Comparison of means of different brands

Reportage of respondent

Scorecoke

ScorePepsi

Scoresprite

Score7up

score dew

scorefanta

less than 16

Mean16.36 20.45 16.55 11.55 15.91 10.09

N 11 11 11 11 11 11 Std.

Deviation10.26

913.685 10.162 7.090 10.445 7.355

16-30 Mean 17.74 19.30 16.70 14.48 14.92 13.52 N 66 66 66 66 66 66 Std.

Deviation13.07

814.393 11.024 12.896 11.866 12.297

more than 30

Mean12.50 20.00 21.79 18.21 12.86 15.36

N 14 14 14 14 14 14 Std.

Deviation4.703 12.403 11.199 9.325 8.926 7.712

Total Mean 16.77 19.55 17.46 14.70 14.73 13.38 N 91 91 91 91 91 91 Std.

Deviation11.91

613.886 10.991 11.893 11.228 11.214

Results The above table shows that the age less than 16 years has the greatest

mean then age more than 30 years and last is the age 16-30 years i.e. 20.45, 20.00 and 19.30 respectively.

As coke and sprite has close averages to the Pepsi. Pepsi should take serious measures to make a clear difference between Pepsi and other brands billboards.



Scorecoke

ScorePepsi

Scoresprite

Score7up

Scoredew

Scorefanta

female Mean 16.43 18.18 16.75 15.50 15.66 12.14 N 44 44 44 44 44 44 Std.

Deviation10.319 13.722 10.482 14.636 12.438 9.072

male Mean 17.09 20.83 18.13 13.96 13.85 14.55 N 47 47 47 47 47 47 Std.

Deviation13.343 14.064 11.521 8.678 10.022 12.892

Total Mean 16.77 19.55 17.46 14.70 14.73 13.38 N 91 91 91 91 91 91 Std.

Deviation11.916 13.886 10.991 11.893 11.228 11.214

Report

Results

The above table shows that the average likeness about the billboards of Pepsi is more in males as compared to females.

Surprising findings

We asked the following question in the questionnaire


Do ads on billboards play any role in your purchasing decisions?

a). Yes b). No

yes

no

billboards play role in purchase

Pies show counts

51.65%48.35%

Results

The above graph shows that 51.65% people say that billboards play a role in there purchase decision.

This that the billboards play a crucial role in the purchase decision of people.

The purpose of this project was to find out the current marketing problem of any firm and then conduct a research, present the findings that will be helpful in


decision making. We did our research on the marketing problem of PepsiCo that how to make billboards more appealing. By keeping in view the purpose of this research we defined some primary and secondary objectives. In order to conduct the research we adopted the survey research method. We chose questionnaire as a data collection device and probability sampling as a sampling plan.

After collecting the data we analyzed it and made some conclusions based on findings. We have found that TV advertisement is most noticeable by the people. A small no. of people observe billboards and a very few no. can remember not more than 5 billboards.

In our analysis we had a very interesting finding that for majority of the people, billboards play a vital role in their purchase decision.

Overall the Pepsi consumption is more in teenagers and youngster that makes the most potential customers .Mostly people buy Pepsi because of its taste and availability .But advertisement is also another reason of buying Pepsi and this attitude is more common in youngsters. Although may be for once or more people have bought Pepsi by watching its billboards that makes a very low percentage but billboards does play a role in buying.

People have mixed results about the attractiveness of Pepsi billboards. This shows that people don’t have strong likeness about the billboards of Pepsi and the Pepsi need to do serious work on that to make there billboards more eye-catching. Furthermore when Pepsi is compared with other soft drink brands billboards it is concluded that people find existing Pepsi billboards more appealing among all other soft drink brands’ billboards. The teenagers has the greatest likeness about existing Pepsi billboards then age more than 30 years and last is the youngsters. But the likeness of the people for coke and sprite billboards lies very close to it.

Moreover, billboards ads should be different from TV ads to make them more attractive. People of all ages are more likely to get attracted by the billboards on which celebrities have been introduced.

Other than typical rectangular shape billboards, people are more likely to be attracted by other shapes. People have been asked about some designs of Pepsi billboards that are bottle shape billboard or billboard with an embossed Pepsi bottle and we get the positive replies of the people. The strong opinion that people will definitely like it is small but the dislikness is also very few. Furthermore, billboards with dark colors, medium to large size and somewhat irregular shapes can attract attention of people and remind them that Pepsi is there.


By watching the results of our research we want to give the following recommendations to the Marketing Executives of Pepsi:

Try to display the billboards on road sides or in commercial areas as most of the people observe billboards in busy areas like that.

Try to use same irregular shape for billboards other than typical rectangular shape billboards as people feel it more attractive.

The size of billboard should be draw to make it eye catching.

The billboards should be different from TV ads as such billboards are more attractive.

You should continue to use different celebrities in your billboards as people can recall the billboards ads displaying celebrities much easily then others.

The color of billboards should be different in different seasons as it has good effects on your customers like in summer use light and fresh colors while in winter use some dark colors.

Mostly the people of age less then thirty are more enthusiastic by billboards so Pepsi should design its billboards by keeping this fact in mind.

Following are the limitations which we face in conducting the research:

Time constraints is the major limitation of our research as the target market of our research is whole population so we need


some more time to make our research more helpful and meaningful to make the decisions.

The number of samples is not representative of the whole population so the results may deviate a little bit from reality.

The respondents are not much serious in responding our questions due to many reasons like lack of time, lack of interest and lack of confidence etc.

As there are only girls in our group so we conduct our research in different shopping malls, restaurants, universities and beauty salons etc. we can’t move door to door for knowing the opinion of households.

While filling the questionnaire, some respondents themselves don’t know what type of billboards they are going to like so they were confused while filling our questionnaires.

We are students of BBA in GIFT University and we are conducting a research to find out the ways of making


attractive billboards. For this regard, we need your prestigious opinion.

1. Do you watch advertisements?

a). Yes b). No (IF NO. Thanks for your cooperation)

2. On which media do you mostly notice these ads? (KINDLY CHECK ONE)

a). Newspapersb). Televisionc). Billboardsd). Magazinese). Internetf). Radio

3. Have you recently observed any ad on billboard?

a). Yes b). No

4. At which location do you mostly observe billboards? (CHECK ONE)

a). Traffic Signalsb). Commercial areasc). Road sidesd). any other please specify

5. How many billboards do you watch in a day?

a). less than 10b). less than 15c). less than 20d). more than 20

6. From these watched billboards, how many can you recall?

a). less than 5b). 5-10c). more than 10

7. Do ads on billboards play any role in your purchasing decisions?

a). Yes b). No


8. Please allocate 100 scores among these soft drinks according to the attractiveness of their billboards. (GIVE HIGHEST SCORE TO THE MOST ATTRACTIVE & PLEASE RECHECK THE TOTAL)

COKEPEPSI SPRITE7-UPDEWFANTA 1009. Can you recall any billboard of Pepsi?

a). Yes b). No (IF NO, SKIP Q-10)

10. Do you feel that the billboards of Pepsi are attractive?


11. You buy Pepsi because of its (PLEASE CHECK ONE) (IF YOU CHOOSE OPTION (e) SKIP Q-12)a). Tasteb). Advertisementsc). Attachmentd). Availabilitye). I don’t buy it

12. Have you ever bought Pepsi by watching billboards?

a). Yes b). No

13. If the billboards of Pepsi is of bottle shape then

a). I definitely like itb). I probably like itc). I neither like nor dislike itd). I probably dislike ite). I definitely dislike it

14. Do you think that the billboard ads should be different from TV ads?

a). Yes b). No

THERE ARE ONLY A FEW MORE QUESTIONS TO GO...


15. Do you think that the billboards featuring celebrity attract the most?


16. The most attractive billboards should have

Dark colors 1 2 3 4 5 light colorsLarge size 1 2 3 4 5 Small SizeRegular shape 1 2 3 4 5 Irregular shape

17. A billboard with an embossed Pepsi bottle is

a). very Attractiveb). somewhat Attractivec). somewhat unattractived). very unattractivee). I don’t know

18. What Pepsi can do to make their billboards more appealing?

19. What else Pepsi can do for outdoor advertisement other than playing billboards?

The following are some personal questions about you that will be used for statistical purposes only. Your answers will be held in the

strictest confidence.

What is your age?o Less than 16o 16-30o More than 30

What is your gender?o Female o Male

How many Pepsi bottles do you drink in a week?o Less than 10o 10-20o More than 20o None


Hierarchy of PEPSI (Gujranwala)


of 68GIFT BUSINESS SCHOOL

Director

CEOs

Inventory

MISShipping

Production

Research Mkt & sales

Finance

Employees

Employees

Employees

Employees

Employees

Employees

Employees

HRM

Employees

Journal of Advertising, vol. 35, no. 4 (Winter 2006), pp. 21–34.

Armstrong, J. Scott, Roderick J. Brodie, and Andrew G. Parsons (2001), “Hypotheses in Marketing Science: Literature Review and Publication Audit,” Marketing Letters, 12 (May), 171–187.

Bhargava, Mukesh, and Naveen Donthu (1999), “Sales Response to Outdoor Advertising,” Journal of Advertising Research, 39 (July/August), 7–18

Effectiveness of Outdoor Advertising,” Journal of Advertising Research, 34 (March/April), 46–55

28: Marketing Week 12, 04.07, www.marketingweek.co.uk

www.fleetequipnnentmag.com FLEET EQUIPMENT October 2006 5 1


of 68GIFT BUSINESS SCHOOL

business research pepsi

Documents

market research

gift business school

existing pepsi billboards

complete research

employees of pepsi

pepsi consumption

pepsico brands

gujranwala plant