international journal of informative & futuristic … issn (online): 2347-1697 international...

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Original Paper

International Journal of Informative & Futuristic Research ISSN (Online): 2347-1697

Volume 2 Issue 9 May 2015

Abstract Advertisement and Brand awareness plays an important role in brand building, brand recognition, brand loyalty and boost up the sales performance which is regarded as the foundation for brand development. To some degree advertisement and brand awareness can directly influence consumers’ buying behavior. The female consumers from IT industry have been taken as main consumers for the research purpose. The researcher seeks to inspect and investigate brand’s intention factors and consumer’s individual factors in influencing advertisement and its impact of brand awareness on fast moving consumer goods especially personal care products .The aim of the paper is to examine the advertising and its impact of brand awareness towards FMCG Products, on the other hand, to analyze the influence of advertising on personal care products among female consumers in IT industry and finally to study the impact of media on advertising & brand awareness. The prescribed survey were conducted in the form of questionnaire and found valid and reliable for this research. After evaluating some questions, better questionnaires were developed. Then the questionnaires were distributed among 200 female consumers with a response rate of 100%. We found that advertising has constantly a significant positive effect on brand awareness and consumers perceive the brand awareness with positive attitude. Findings depicts that advertising and brand awareness have strong positive influence and considerable relationship with purchase intention of the consumer. This research highlights that female consumers of personal care products in IT industry are more brand conscious and aware about their personal care products. Advertisement and brand awareness affects their purchase intention positively; also advertising media positively influences the brand awareness and purchase intention of the female consumers. The obtained data were then processed by Pearson correlation, multiple regression analysis and ANOVA.

A Study On Advertising And Its Impact Of Brand

Awareness On Fast Moving Consumer Goods With

Reference To Personal Care Products In Chennai Paper ID IJIFR/ V2/ E9/ 068 Page No. 3325-3333 Subject Area

Business

Administration

Key Words Advertising, Brand awareness, FMCG, Personal Care Products, Purchase

Intention

R. Punniyamoorthy

Assistant Professor Department of Management Studies Srinivasa Institute of Engineering & Technology Chennai – India.

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ISSN (Online): 2347-1697 International Journal of Informative & Futuristic Research (IJIFR)

Volume - 2, Issue - 9, May 2015 21st Edition, Page No: 3325-3333

R. Punniyamoorthy :: A Study On Advertising And Its Impact Of Brand Awareness On Fast Moving Consumer Goods With Reference To Personal Care Products In Chennai

1. Introduction

Brand awareness is a long term process and it can prove a strong weapon to fight with the market

competitors. Female consumers in the society are so brand conscious about their personal care

products and they prefer to use leading branded products which is advertised in social media.

Advertisers often seek to generate increased consumption of their products or services through

creating brand awareness, which involves associating a product name or image with certain qualities

in the minds of the consumers. Advertising is considered as implicit device through which any

business can attain the attraction of people and can attain the competitive edge. It considered as a

priceless asset for any business as it can change people purchase intention. Advertising and brand

awareness plays an essential role to expand any business. In present scenario customers depend on

good quality products, mostly prefer to buy products with brand conscious and give priority to well-

known brand. Advertising strategies can develop the brand awareness of any product. If brand is

managed through effective advertising strategies, a business can attain maximum number of

customers and can build long term profitable and mutual relationship with the customers. Quality

products in fast moving consumer goods can positively affect the purchase intention of people

regarding brand image, satisfaction and loyalty towards the brand. Advertisement plays a crucial

role to boost up the sales performance for any business; it is a powerful strategy to attract the

customers towards the brand. Advertisement is a foremost and leading weapon in all marketing tools

due to its positive impact on consumer's purchase intention. It is an effective way to communicate

and convey your message to the target audience and it is a promotional strategy to create awareness

related to FMCG products. Purchase intention can be positively changed due to impact of media on

advertising. As brand awareness and advertising are playing an important role in any business to

make it successful. Advertisement becomes a dynamic force for any business because it can

positively influence the people to change their purchase intention regarding the brand. At present

scenario in global and emerging markets, business war is not only on price but customer attraction,

loyalty and relationship matters a lot. FMCG industries are too conscious about their customer‟s

satisfaction. It is very important for the marketer to know how people perceive any brand and how

advertising and brand awareness can positively influence the purchase intention of people especially

female consumers in IT industry at Chennai.

2. Overview of FMCG Industry Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian economy taken as a

whole FMCG market is expected to raise at a compound annual growth rate of 14.7 % to US$

110.4 billion during 2015-2020, the sector has grown-up at an annual average about 11% over the

last decade. Food products are in the leading position, accounting for 43% of the overall market.

Personal care (22 %), fabric care (12 %) comes next in terms of market share. increasing awareness

and changing lifestyles have been the key growth drivers for the FMCG sector.

Table.1 Key statistics of FMCG industry

KEY STATISTICS OF FMCG INDUSTRY

FMCG market size US$ 25 Billion

Expected market size 2015 US$ 49 billion ( 3055395000)

Expected growth rate 10-11 %

Retail stores 113-14 million

Advertisement spending US $ 3 billion

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Figure-1: FMCG value growth rate

FMCG industry has a strong MNC presence and is characterized by a well-established distribution

network, powerful competition between the organized and unorganized segment and low operational

cost. Availability of raw materials, cheaper labor costs provide FMCG industry in competitive

advantage. There is a lot of scope for growth in the FMCG sector from rural markets with

consumption expected to grow as penetration of brand increases. The Indian government policies

and regulatory frameworks such as relaxation of license rules and approval of 51% FDI in multi-

brand and 100 % in single-brand retail are some of the major growth drivers of FMCG sector.

Figure 2: Segmental breakup of INDIAN FMCG market

43%

22%

12% 8%

4% 4% 2%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Segmental breakup of Indian FMCG market

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Figure 3 : Segmental breakup of personal care market

Figure 4: FMCG revenues

The FMCG market‟s penetration level as well as per capita consumption in most product categories

like toothpaste, skin care, hair wash etc is low, it indicates the untouched market potential. Rapid

increasing in Indian population, particularly the middle class, especially teenagers and the rural

segments, presents an opportunity to manufacturer of FMCG products.

3. Need and scope of the study The main important purpose of the study is to examine the advertising and its impact of brand

awareness in fast moving consumer goods, also to investigate the influence of advertising and to

study the impact of media on advertising and brand awareness. The result of this research will be

beneficial to marketers especially in Fast moving consumer goods industry to understand the target

consumer whether advertising and brand affect their purchasing decision. To some extent brand

awareness be positioned in consumer purchasing behavior will be inspected and it will help the

personal care products marketer and manufacturer to see their strengths and weaknesses in their use

of advertising and brand awareness can improve their performance consequently. The research can

help out domestic marketers to become accustomed the knowledge of their marketing plan and

actions to satisfy customers and provide the offerings based on the exact consumers‟ needs. The

research study was conducted in TIDEL park , Chennai. Personal care products are significantly

used to improve and care for the health and physical appearance. The spending level of personal care

40%

31%

22%

6%

1%

Segmental breakup of Personal care market

Bath & shower products

Hair care

Skin care

Colour cosmetics

Fragrances

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products especially in IT sector showing an increasing propensity in the last 5 years. This is due to

increase in income levels of the IT industry. Attraction towards westernized, improvement in

hygienic conditions, beauty conscious among female consumers in IT sector increase the FMCG

products particularly personal care products in this industry.

4. Objectives of the study I. To examine the advertising and its impact of brand awareness towards FMCG Products.

II. To analyze the influence of advertising on personal care products among female consumers

in IT industry.

III. To study the impact of media on Advertising & brand awareness.

5. Hypothesis H1: Advertisement has significant relationship between female consumer‟s purchase intention.

H2: Brand awareness has significant relationship between female consumer‟s purchase intention.

6. Review of literature

Kevin lane Keller The tangibles and intangibles either way, while the product performs in its

basic functions, the brand contributes to the differentiation of a product. Leo Burnett

Advertising does not just circulate information. It penetrates the public minds with desires and

beliefs.

Dr. Simon Knox & Dr.David walker identify consumer purchasing styles as loyal, habitual,

variety seekers, and switchers.

Rose Leahy examined the concept of brand loyalty in FMCG markets.

Coulter et al & Alba and Hutchison proposes that experts are more likely to search new

information because increases awareness of the existence of acquirable information.

Kevin Lane Keller approaches brand equity from a customer based point of view defining as

the differential effect of brand knowledge on consumer response towards brand.

Farquhar considers that building a strong brand within consumers‟ minds means creating a

positive brand evaluation, accessible brand attitude & consistent brand image.

7. Research Methodology The research paper was undertaken to identify the advertising and its impact of brand awareness on

fast moving consumer goods especially personal care products. The required data for this study were

gathered from the chosen respondents of female consumers in IT companies. The study largely

depends on primary data collected through a well-structured questionnaire to bring out the opinions

from the female respondents. The study is limited to 8 different IT companies in TIDEL Park,

Chennai. The researcher selected the female consumers in IT industry as sampling framework by

adopting non probability convenient sampling technique. 200 questionnaires were randomly

distributed to the female consumers in IT companies and field survey was conducted for a period of

3 months (Feb - Apr 2015) .The first part of the questionnaire is associated to demographic

characteristics, brand loyalty, shopping preferences and purchasing decisions. Second part is linked

to the dependent variables ( Purchase intention) and independent variable (advertising & brand

awareness). The collected data were analyzed mainly thorough descriptive statistics by using

Pearson correlation, multiple regression analysis and ANOVA.

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8. Demographic Characteristics Of Respondents: Analysis

Table -1: Age wise distribution of 200 respondents

The study was conducted with the sample size

of 200 respondents. On the basis of

Demographic factors, maximum 40.5% are

from an age group of 23-28 years followed by

28% in the age group of 29-33 subsequently

21.5% are in the age group of 34 -38 and10%

are from the age group of 39-40.

Table -2: Shopping preferences of respondents

Female consumers mostly purchase

personal care products from nearest super

markets. They prefer to purchase from

nearest super markets and shops ( 57.5%). It

is followed by the purchase from shopping

malls (31%) and remaining (11.5%)

customers purchase from online shopping.

Table-3: Brand loyalty status of female respondents

39% of respondents always purchase the same

brands. 28% purchase the same brands

sometimes. 21.5 % rarely purchase the same

brand and 11.5% customers never purchase the

same brand so they are highly disloyal towards

the same brand.

Table-4: Means of advertisement

It is understandable that out of 200

respondents, 65% are accepted that

Television is the most Prominent media to

advertise personal care products. So TV is

considered as most effective media to

advertise personal care products among the

remaining Medias.

Table-5: Purchasing decisions

It is clear that 66% of the respondents make

their purchase decision based on TV ads and

believe that it strongly influences their

purchase decision. 16.5% accept that online

ads help in making purchase decision. 7.5 %

accept that print ads also helps in taking

purchase decisions. Remaining 10% make their

purchase decision based on outdoor ads.

Age (years) Frequency Percentage

23-28 81 40.5

29-33 56 28

34-38 43 21.5

39-40 20 10

Total 200 100

Shopping preferences Frequency Percentage

From nearest super

market

115 57.5

From online shopping 23 11.5

From shopping malls 62 31

Total 200 100

Same Brand Frequency Percentage

Always 78 39

Sometimes 56 28

Rarely 43 21.5

Never 23 11.5

Total 200 100

Aspects No of

respondents

Percentage

TV 130 65

Internet 28 14

Magazines 15 7.5

Newspapers 15 7.5

FM & Radio 12 6

Total 200 100

Aspects No of

respondents

Percentage

TV Ads 132 66

Online Ads 33 16.5

Print Ads 15 7.5

Outdoor Ads 20 10

Total 200 100

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Table 6: Descriptive Statistics

Table-7: Correlation

**Correlation is significant at the 0.01 level (2-tailed).

Table 8: Model Summary

Model R R Square Adjusted R square Std. error of the

estimate

Durbin

Watson

1 0.498 0.248 0.239 .77898 1.974

Table-9: ANOVA

Model Sum of squares df Mean Square F

Sig.

1 Regression 39.682 2 19.841 29.89 .000

Residual 146.371 197 .743

Total 186.053 199 a. Predictors ( constant), Advertisement, Brand awareness

b .Dependent variable: Purchase intention

Table 10: Coefficients

Model

Unstandardized

Coefficient

Standardized Coefficient

1

B Std. Error Beta t Sig

Constant -.534 .652 -.923 .491

Brand Awareness .873 .236 .486 5.989 .000

Advertisement .269 .173 .213 2.746 .085 a. Dependent variable: Purchase Intention

Mean Std. Deviation N

Brand awareness 4.6527 .64328 200

Advertisement 4.3668 .75829 200

Purchase Intention 4.1473 .94396 200

Brand

Awareness

Advertisement Purchase

Intention

Brand

Awareness

Pearson Correlation 1 .426** .489***

Sig ( 2 – tailed ) .000 .000

N 200 200 200

Advertisement Pearson Correlation .426** 1 .344**

Sig ( 2 – tailed ) .000 .000

N 200 200 200

Purchase

Intention

Pearson Correlation .489** .344** 1

Sig ( 2 – tailed ) .000 .000

N 200 200 200

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9. Findings and Results

In descriptive statistics, the researcher calculated mean and standard deviation to check the tendency

of female consumers. Table (6) clearly shows that the mean value of Brand awareness is 4.6527

which is close to 5, it indicates that the majority of the respondents positively influence their

responses in support of brand awareness and it can be deviated 0.64328. Mean value of

Advertisement is 4.3668 shows that majority of female consumers agree that advertisement has

positive impact on their purchase intention. These responses can deviate 0.75829 for advertisement

and 0.94396 for purchase intention.

Table (7) indicates that brand awareness is positively interrelated to purchase intention of the

consumer with value of 0.489 at significant level of 1%. Advertisement is too positively related to

the purchase intention of the consumer with the value of 0.344 at 1% significant level. Correlation

0.489 indicates that brand awareness and purchase intention enlighten the variance in the extent of

23.9% (0.489)². The correlation of 0.344 shows that advertisement and purchase intention make

clear that variance in one another to the extent of 23.9 % (0.489)².Furthermore to inspect the

advertisement and impact of brand awareness, multiple regression analysis was applied with Durbin-

Watson for investigating the nature of correlation.

Table (8) indicates the model summary of findings. R square shows the variation in purchase

intention (dependent variable) due to influence of advertisement and brand awareness (independent

variables). R square value is 0.248 means that independent variables (advertisement and brand

awareness) have 24.8% influences on dependent variable (purchase intention). Durbin-Watson test

was calculated to check the type of correlation among the variables either correlation is positive,

negative or zero. Durbin-Watson is 1.974 and it demonstrates that positive auto correlation exists

among variables.

Table (9) shows the level of significance ie, ANOVA. Results specify that significant level is 0.000,

as a result it is acceptable and shows strong impact of brand awareness and advertisement on

purchase intention.

Table (10) shows beta values which mean independent variables influence on dependent variable.

Result depicted that brand awareness has strong influence on purchase intention with beta value

0.486. It explains that 48.6% variation in purchase intention due to brand awareness which is

significant at.000. Likewise advertisement has also strong impact on purchase intention with beta

value 0.213. It explains that 21.3 % variation in purchase intention due to advertisement which is

significant at 0.85.

10. Conclusion

Our purpose of this study was to examine the relationship between advertisement, brand awareness

and purchase intention of the consumer. Survey questionnaire method was used through non

probability convenient sampling technique. This research study provides the insight to the

companies and business that how they can make better their marketing and promotional tools to

capture their customers. With the help of this study Marketing Managers can understand that how

important brand awareness and advertisement is to boost up any business. This is a real picture of

society that advertisement and brand awareness playing a crucial role to change the people‟s buying

behavior. Results revealed that Advertisement and brand awareness has strong positive impact on

purchase intention of the consumers. We concluded that Advertising and brand awareness have

positive influence & relationship with purchase intention of the consumer as results showed that

advertisement and brand awareness playing a dynamic role especially in behaviors of female

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consumers in IT industry. It has been concluded that T.V advertising has great impact on buying

behavior of consumers. Hence advertising is mostly adopted to get information about FMCG

products. It has been found that 65 % of the respondents have agreed that their shopping of fast

moving consumer goods is based on advertisement and considered as most effective media to

advertise. It is clear that 66% of the respondents make their purchase decision based on TV ads and

believe that it strongly influences on their purchase decision. TV is the most prominent media to

advertise personal care products. Advertisement on Selected TV channels on prime time will

unknowingly influence the purchase decision. It has been also concluded that maximum number of

consumers are attracted towards the advertising on purchasing of FMCG products. In this way

Television advertising plays a vital role in buying behavior of female consumers in IT industry at

Chennai.

Finally we can summarize that consumers will be positively influenced by advertising and well

aware about the brand so automatically brand awareness will be stronger in their minds of

consumer‟s purchase intention. We can say that in present scenario advertisement is a big marketing

weapon to attract the customers and create awareness of the brand in minds of the consumer.

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[4] Keller, Kevin Lane. (1998) Strategic Brand Management: Building, Measuring, And Managing

Brand Equity. New Jersey: Prentice Hall

[5] Kotler, P. (2006) Marketing management. New Delhi: Prentice-Hall

[6] R.Batra ,David A Aacker and John G.Myers Advertising Management, Tata Mc Graw Hill, New

Delhi,1999.

[7] Farris and Albion “The impact of Advertising on the price of Consumer Products”.

[8] McCracken, Grant (1989), "Role of Advertisements and its effects" Journal of Consumer Research, 16

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response. Journal of Consumer Marketing, 18(5): 410-425.

international journal of informative & futuristic … issn (online): 2347-1697 international...

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