Dissertation Report On

A STUDY ON IMPACT OF ADVERTISING AND SALES PROMOTION ON CONSUMER BUYING BEHAVIOR IN CONFECTIONERIES
By

Fatima Obaid A0102209284 MBA Class of 2011

Under the Supervision of

Ms. Aparna Goyal

Assistant Professor Department of M&S

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2010

DECLARATION
This Dissertation Report is submitted in partial fulfillment of the requirement for the award of degree of MBA-M&S at Amity University. I declare that this Dissertation Report is my own work and it does not contravene any academic offence as specified in the Universitys regulations. I confirm that this Dissertation Report does not contain information of a commercial or confidential nature or include personal information other than that which would normally be in the public domain unless the relevant permissions have been obtained.

Sign: Name: Date: Program: MBA M&S 2011 Fatima Obaid

CERTIFICATION

This is to certify that the dissertation work done on A STUDY ON IMPACT OF

ADVERTISING AND SALES PROMOTION ON CONSUMER BUYING BEHAVIOR IN CONFECTIONARIES by Fatima Obaid is submitted to Amity Business School in

partial fulfillment of requirement for the award of degree of MBA-M&S and is a genuine work carried out by her in my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma.

Date: 4th April 2011

Ms. Aparna Goyal,

(Assistant Professor), ABS, Amity University, Sec-125, NOIDA (UP)

ACKNOWLEDGEMENT
This project report is the culmination of the efforts over six weeks period submitted by 4th April 2011. During the course of this project I have had the privilege to work with many distinguished people and the opportunity to learn many things from them. I would like to express my sincere gratitude to my mentor Ms. Aparna Goyal (Assistant Professor). Her guidance and advice proposed ideas and constructive suggestions in the marketing front towards the result-oriented approach for the completion of this project. I also convey my sincere thanks to all faculty members of ABS for their kind support and knowledge.

Fatima Obaid MBA-M&S 2011 ABS A0102209284

CONTENTS
Declaration Certification Acknowledgement

S.No. Chapter Name Page No.

1 ..VI 2 Introduction i. Marketing mix and promotion mix.. .3 ii.Advertising v/s Sales promotion.6 iii.Confectionery Industry in India7 iv.Confectionery: Current chocolate scenario.9 v.Advertising Industry in India 14 .2 Executive

summary

vi.Consumer buying behavior .15 3 4 5 6 Literature review.18 Research Methodology and data collection... .22 Data Analysis &Interpretation ..24 Limitations, Conclusions & Suggestions .47 References.................. ..................................51 Annexure (QUESTIONNAIRE AND SYNOPSIS) ...53

EXECUTIVE SUMMARY
This report has been made with the compilation of data accumulated through Primary and secondary data. It is based upon the topic IMPACT OF ADVERTISING AND SALES PROMOTION ON THE CONSUMER BUYING BEHAVIOR IN CONFECTIONERIES with the following objectives which have been accomplished Impact created on the consumers mind through advertisement and sales promotion of confectionaries. Whether they are influenced by the same during the purchase decision making or not.

The primary data has been collected using questionnaire as a descriptive tool. A questionnaire is made to gather the information which is a primary method for collection of data. Collecting data through questionnaire is the most appropriate method. This questionnaire includes: a. Contains personal data about the respondent and b. 12 questions. Through this report it is duly proved that advertising and sales promotion has impact on consumer buying behavior and customers expect creative advertisements and innovative sales promotion schemes to be given to them.

INTRODUCTION
Companies always try to establish the contact with target market. This is a prestigious status for company to address the customers. Company wanted to enhance its image in the minds of common man so that in future, whenever it would be visited to customer court; it would be having enough matter to communicate the customers. The company presents it's history products history and even national history. Companies have these processes in all continuance and consistency. Promotion is a term, which means the moving from one end to another. In marketing, promotion means all those took that a marketer uses to take his product from the factory to the customers and it promotion, personal selling, merchandising. Promotions are involves the advertising sales public relations, publicity and result oriented. Promotion

CHAPTER 1 INTRODUCTION

system works with proper communication system. This has sender, receivers and feedback system. Feedback is form of action which customer gives bark to the company about product, advertisement or strategy. Promotion involves the following steps: (i) Common Understanding (ii) Demographic and psychographics profile. (iii) Media habits (iv) Level of Awareness. The ultimate expectation of the company is to make the people for purchase of product. The sales promotion and advertising functions and stimulate the customer purchase decision in accordance with this model. Present research paper will examine the comparative effectiveness issue of Sales promotion and advertising measures.
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Advertising or "Mainline" as it is also called, helps an enterprise to launch a product or service, increase market share and to compete in the market place by influencing consumer and their decision making process. Sale promotion or "Below-the-line" activities as it popularly know as also helps an enterprise inducing trials, increasing off take and thereby enhance the top-line. Both the promotional activities aims at achieving the firms marketing and business objective, however the duration of results and magnitude of impact varies.

Marketing-Mix and Promotion-Mix

Definition: The Marketing mix is the combination of the elements of marketing and what roles each element plays in promoting the products and services and delivering those products and services to their customers. Elements of the Marketing Mix The elements of the marketing mix are also referred to as the 5 P's of marketing. For years marketers referred to the 4 P's of marketing. Only recently has a 5th P been added. Whether its subscribed to the theory that there are four p's or five p's of marketing, this is essentially referred to as the "marketing mix".

The 4 P's of the Marketing Mix The original 4 P's of marketing (although they have been renamed a bit over the years) that were the elements of marketing mix is:

Product The products or services offered to the customer: Their physical attributes what they do, how they differ from the competitors and what benefits they provide.

Price How companies price their product or service so that their price remains competitive but allows them to make a good profit. How price plays a role in companys marketing strategy with respect to differentiating its products or services from its competitors'.

Place (Also referred to as Distribution) Where a business sells its products or services and how it gets those products or services to its customers. May also be used in its marketing strategy to differentiate it from competition.

Promotion The methods used to communicate the features and benefits of a companys products or services to its target customers. Promotion consists of following elements. Advertising Personal selling Sales promotion. Direct marketing. Publicity.

The 5th P of Marketing

Some marketing theorists have added a 5th P of marketing to the elements of the marketing mix: People When referred to as an element in the marketing mix, this 5th P refers to how the level of service and the expertise and skills of the people who work for a company can be used to set it apart from its competitors.

Advertising v/s Sales Promotion

Advertising

Sales Promotion
one-way about of A type of marketing tool. A Promotion usually involves an immediate consumer). disseminating product, company. incentive It can for also a or about brand, buyer end a or involve (intermediate distributor information line,

A type of marketing tool. Advertising inform obtain is a

communication whose purpose is to potential them customers the products and services and how to from point distribution.

product

Increase sales, brand building. Long term. Expensive in most cases. Medium to large companies. Assumption that it will lead to sales. Giving an advertisement in the

Increase sales. Short term. Not very expensive in most cases. Small to medium companies. Directly related to sales. Giving free products, coupons etc.
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newspaper about the major products of

a company

Confectionery industry in India

The organized sector of the confectionery market is estimated to be about Rs 1400 crore and it is estimated that the market is growing at a pace of 9 per cent per annum. The confectionery industry in India is the largest among the food processing industries. It has an annual turnover of around Rs 3,500 crores with huge potential to grow. (Including the organized and the nonorganized sector) There are four categories of confectionery in the organized sector - chocolate confectionery, sugar confectionery, gum and cereal bars. A large part of the confectionery industry in India comprise of the local subsidiaries of global confectionery majors like Perfetti, Lotte, Wrigley's and Cadbury. Korean confectionery company Lotte India, acquired a 60.39 per cent in Parry`s Confectionery from the Murugappa group in January 2004 for Rs64.47 crore, and later another 20 per cent through an open offer. One of the leading players in the Indian confectionery market is the Rs 125 crore Candico. Candico started their operations in 1997, and now they are the largest Confectionery Company in India. In fact, Candico is a confectionery multinational headquartered in India with operations in 19 countries. Candico is the only Indian confectionery company with production facilities overseas. In June 2006, Godrej Foods & Beverages Limited acquired India's leading confectionery player, Nutrine Confectionery Company Private Limited. In April, 2007, The Hershey Company, North America's leading chocolate and confectionery manufacturer, and Godrej Beverages and Foods Ltd., one of India's largest confectionery and Food Company and an associate of Godrej
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Industries Limited, announced a joint venture to manufacture and distribute confectionery, snacks and beverages across India. The joint venture is called Godrej Hershey Foods & Beverages Ltd.

Source: Euromonitor- Chocolate Confectionery Companies- India- September 2007

Confectionery: Current chocolate scenario

After having it easy for several years, the three listed players in the confectionery industry are set to face a buzz of activity. Consumer goods giant Hindustan Lever has just announced a foray into the business with the launch of Max candy. An entry into this segment is also part of the diversification plans of cigarette major, ITC. Both hope to use the confectionery foray to pep up flagging growth rates in their core businesses, thus putting their sizeable cash flows to better use. High on potential On the face of it, the vital statistics of the confectionery segment seem more promising than the conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and detergents already reach over 90 per cent of the households, both chocolate and sugar confectioneries have abysmally low penetration levels. ORG-MARG estimates suggest that chocolates penetrated just five per cent of the Indian households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent of the households, leaving ample room for growth. Even considering the urban market alone, the category reaches just 22 per cent of the urban consumers. This category, therefore, has considerable potential to grow before it reaches saturation point -- as have traditional FMCG products such as soaps and detergents. Chocolates and sugar-boiled confectionery boast of even lower penetration levels than biscuits, which reach 56 per cent of the households. The Indian confectionery market is segmented into sugar-boiled confectionery, chocolates, mints and chewing gums. Sugar-boiled confectionery, consisting of hard boiled candy, toffees and other sugar-based candies, is the largest of the segments and valued at around Rs 2,000 crore. The organised segment is dominated by Nutrine Confectionery and Parry Confectionery, apart from the Indian arms of MNCs such as Perfetti India and Warner Lambert.
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Cadbury India and Nestle India also made a foray into this segment five years ago and have a small presence. Chocolates make up a 22,500-tonne market which is valued at Rs 400 crore and dominated mainly by listed players Cadbury India and Nestle India. ...but slipping volumes However, despite its unmistakable potential, the major players in the confectionery industry have not fared too well in recent times in terms of sales growth. Take the chocolate segment. Cadbury India, which derives nearly 76 per cent of its revenues from chocolates and sugar confectionery has seen its topline growth wind down from 19 per cent in 1999 to 12 per cent in 2000 and further to 7 per cent in the first six months of 2001. Nestle India has managed to report healthier sales and profit growth, but this is more on account of the contribution from milk, coffee and culinary products rather than sugar or chocolate confectionery.

The only listed player in sugar-boiled confectionery has not done too well either. Parrys Confectionery, a leading player in sugar-boiled confectionery, has reported shrinking sales volumes in 1998-99 and 1999-2000, after robust financial performance in earlier years. Screeching to a halt These topline numbers only reflect the ground realities. Industry sources estimate that the 22,500-tonne chocolate market, which grew at a robust 12 per cent per annum until 2000, grew by just three per cent in that year. Several factors appear to behind this slowdown. As with all other FMCG products, the demand for confectionery products appears to have been hit by the economic slowdown and the consequent shrinkage in consumer spending. Confectionery products are impulse foods and thus appear to have borne the brunt of a cutback in consumer spending over the past couple of years, while staple foods have continued to exhibit healthy growth rates. This is evident from ORG-MARG figures which suggest that the annual per capita consumption of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000, while that for sugar boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG Milestone Papers: The Growth Inertia). Branded staples such as atta and salt registered a healthy increase in per capita consumption over this period. No price hikes Despite fairly aggressive promotional efforts by marketers, the overall penetration level for chocolates registered no increase between 1999 and 2000. Consumption of chocolates could have been impacted by the selling price increases that marketers affected between 1999 and 2000. In 1999 and 2000, selling prices of key chocolate brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa prices in that period. This probably contributed to the sales growth for the year.

However, with cocoa prices falling sharply in the second half of 2000, marketers were forced to maintain selling prices of most products, holding back value growth in sales. Cadbury India, the market leader in the chocolate segment (market share 71.9 per cent) saw the growth in its chocolate portfolio slow to 6 per cent in the April 2000 to April 2001 period, from nine per cent the previous year. This was mainly due to the healthy double digit growth rates in its flagship brand -- Cadbury's Dairy Milk. Brands such as 5 Star and Perk stagnated in 2000-01. Nestle India's chocolate portfolio (comprising of KitKat, Munch and Charge commanding a total market share of 24.7 per cent) slowed even more dramatically, registering less than one per cent growth between April 2000 and April 2001. Though Nestle's recent launch, Munch, has been a success, the low-priced brand has moderated the value growth in Nestle's portfolio. Wooing adults now The avenue for growth appears to lie in taking advantage of the low penetration level for chocolates by roping in new consumers. The chocolate majors attempted to do this by repositioning chocolate, earlier targeted at children, as a snack food for adults. Cadbury's chocolate-coated wafer Perk and Nestle's Charge and Munch were essentially sold on this platform. Though products such as Perk did succeed initially (Cadbury India claims to have added eight million new consumers in 2000), growth in this segment appears to be petering out. Both Perk and KitKat (the chocolate-coated wafer which is central to Nestle's chocolate portfolio), have shown signs of stagnation in 2001, actually reporting negative growth rates for a few of the months. Banking on smaller editions Of late, the chocolate majors have been rejigging their products to launch chocolates in the Rs 10 and Rs 5 price points. Mimicking the trend in other FMCG products, the chocolate majors have

been relaunching their conventional chocolate brands in smaller unit packs, hoping that this will prompt more frequent purchases and pep up volume growth.

The past year has seen a slew of such launches, the 18-gram version of 5 Star (retailing at Rs 5), the 15-gram version of Cadbury Dairy Milk (Rs 5), Perk Slims (Rs 5), Cadbury Chocobix (a chocolate biscuit combination priced at Rs 5), Nestle Crunch (a mini snack at Rs 6) and Nestle Munch (Rs 5). It is early days yet to judge if this has indeed pepped up volume growth in the segment. However, the chocolate majors do not have much to lose. Unlike the low unit pack versions of products such as shampoos, the low unit packs of chocolates do not cost less on a per gram basis than their normal versions. In most cases, the volume offered under the low priced packs, has been brought down in the same proportion as the price, leaving realizations for the chocolate majors untouched.

ADVERTISING INDUSTRY IN INDIA

The Indian advertising industry is talking business today. It has evolved from being a smallscale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mindboggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies in the country too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has lead to a consecutive boom in the advertising industry as well. The Indian advertising today handles both national and international projects. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services.

Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. If the experts are to be believed then the industry in the coming times will form a major contribution to the GDP. With al this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over.

CONSUMER BUYING BEHAVIOR

Buying Behavior is the decision processes and acts of people involved in buying and using products. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

Stages of the Consumer Buying Process The process of consumer buying involves 6 stages. All consumer decisions do not always include all 6 stages. The 6 stages are:
1. Problem Recognition (awareness of need)It is the difference between the desired

state and the actual condition. It represents deficit in assortment of products.

2. Information search : this can be of two types external or internal as follows

Internal search on the basis of your memory.

 External search if you need more information. Friends and relatives (word of mouth), public sources etc.
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer

wants or does not want. Rank/weight alternatives or resume search. Marketers try to influence by "framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store, method

of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation: Outcome can be Satisfaction or Dissatisfaction. Cognitive

Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication Categories that Effect the Consumer Buying Decision Process A consumer, making a purchase decision will be affected by the following three factors: 1. Personal 2. Psychological 3. Social Personal:- These are the reasons which are unique to a particular person. Some of them are Demographic Factors Sex Race Age

Psychological factors:-Psychological factors include Motives-A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Motives often operate at a subconscious level therefore are difficult to measure. Perception-Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. If we chose what info we pay attention to, organize it and interpret it. Information inputs are the sensations received through sight, taste, hearing, smell and touch. Attitudes-Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Attitudes and attitude change are influenced by consumers personality and lifestyle. Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. There is a difference between attitude and intention to buy (ability to buy). Personality

All the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include: Work holism Compulsiveness Self confidence
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 Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism. Traits affect the way people behave. Marketers try to match the store image to the perceived image of their customers. There is a weak association between personality and Buying Behavior; this may be due to unreliable measures. Consumers buy products that are consistent with their self concept. Social Factors: - Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture. Opinion leaders-Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.) Roles and Family Influences-Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand: that many family decisions are made by the family unit consumer behavior starts in the family unit family roles and preferences are the model for children's future family (can reject/alter/etc)
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 family buying decisions are a mixture of family interactions and individual decision making Family acts an interpreter of social and cultural values for the individual. Culture and Sub-culture-Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom Culture can be divided into subcultures: Geographic regions Human characteristics such as age and ethnic background.

CHAPTER 2 LITERATURE REVIEW

1) The subject of celebrity endorsement: what it was and what it has become - a literature review Author: Johanna Jansson Rajakaski; Regina Simonsson; [2006] Celebrity endorsement has increased the past few years and it has become a widespread advertising strategy. By gathering information about the subject we have created a review over: what celebrity endorsement was and what it has become. The review brings all the important facts about the subject and should facilitate for practitioners and for further research. Celebrity endorsement is about endorsing products with help from a celebrity. Consumers association towards a celebrity endorser increases their purchase intention though many consumers have the celebrity as a role- model. It is important that the consumer can identify with the celebrity and that the celebrity's image fits with the endorsed product, then celebrity endorsement will be an effective advertising strategy.

2) Organizing print ads containing scent: a case study on theorganization of print ad elements Author: Anna Puljeva; Peter Widn; [2006] The visual image has become an increasingly popular communication tool forstandardizing global advertising campaigns. Advertising is one of severalmarketing communication techniques, and is capable of reaching a massaudience repeatedly. It is about grabbing attention through trying tostimulate as many of the five senses as possible. One of the media that weencounter everyday is print media, where words and pictures work together toproduce a creative advertising concept.

3) The reflection of our nation through advertising Wednesday, April 25, 2007 The television industry has made attempts to search out and exploit differences between consumers, by providing over 400 specialized channels (Turow 4). For example, Nickelodeon, MTV, Food Network or ESPN are all specialized channels that attract a certain type of people. Each group is attracted to a specific type of content, which makes it easier for advertisers to target a specific audience a certain way.

4) The role of media on consumer brand choice - a case study of chocolate industry Fazlollah Kazemi (Corresponding author), Malihe Esmaeili The proliferation of assorted brands of food drinks in the country has led to cut-throat competition for increased market share being witnessed among the operators in the food drink industry. When competition is keen and the consumers are faced with brand choice in the market, it becomes imperative for the manufacturers to understand the major factors that can attract the attention of buyers to his own brand.

5) Influence of Advertising on Consumer Brand Preference, Author : Adeolu B. Ayanwale, Taiwo Alimi and Matthew A. Ayanbimipe Research on family decision making has been largely confined to spouses, who have been considered as the relevant decision making unit in a family. However, the role of third party influences, such as children, on decision making strategies and negotiations is essential to taking a broader view of the relevant unit of analysis.
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6) Children in Family Purchase Decision Making in India and the West: A Review By Singh, Raghbir, Publication: Academy of Marketing Science Review , Date: 2006 2006 Research on family decision making has been largely confined to spouses, who have been considered as the relevant decision making unit in a family. However, the role of third party influences, such as children, on decision making strategies and negotiations is essential to taking a broader view of the relevant unit of analysis. Traditionally, women were seen to be the purchasing agents for the family. Nonetheless, increasing participation of women in the workforce has prompted a shift in this role as children are increasingly the "buyers" for the entire family. Even in families where women do not work, children are observed to share this role with their mothers.

Rationale of proposed investigation: The rationale behind this is to study the impact of various advertisement and sales promotion techniques followed by the confectionary companies over the purchase decision of the consumer. It is to see whether the purchase is impulse or they are actually attracted by the advertisement and sales promotion. Research Objectives: a. Impact created on the consumers mind through advertisement and sales promotion of confectionaries. b. Whether they are influenced by the same during the purchase decision making or not. Research A CHAPTER 3 RESEARCH METHODOLOGY AND DATA COLLECTION Design: descriptive

research design was adopted to do the survey. The study used non probability judgment and convenience sampling. The methodology of study is the questionnaire method survey with 12 questions. The study is completely based on the primary data. Sampling plan: The study area is Noida. The data collected is based on primary research using a questionnaire which has been collected from various sectors of Noida and the sample size taken for the study is 150 people. There is an age limit between 18 to 26 years. Data analysis technique: The data processing consists of coding the data collected in the form of questionnaire. The data collected with the help of questionnaire is having the closed replies which are measured using various tests such as Chi-square, Linear regression, Cross-tabulation, t-test and Correlation.
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Major Hypothesis (s) H0 = advertisements and sales promotions does not impact consumer buying behavior in confectionaries. H1 = Advertisements and sales promotions impacts consumer buying behavior in confectionaries.

Question 1 Many respondents have marked chocolates to be the confectionery item that is consumed mostly followed by chewing gums and sweets (mithai). Question 2a

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

Most preferred 46% Preferred 14% Neutral 16% Somewhat preferred 12% Least preferred 11% Thus, the chocolates lie maximum in the most preferred category and minimum in the least preferred category.
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Question 2b

The above pie chart shows the ranking of Chewing Gums that respondents have shown through the following results: Most preferred 20.67% Preferred 34% Neutral 14% Somewhat preferred 20%
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Least preferred 11.33% Thus, the chewing gums lie maximum in the preferred category and minimum in the least preferred category.

Question 2c

The above pie chart shows the ranking of sugar boiled candies, toffees and lollypops that respondents have shown through the following results: Most preferred 12% Preferred 9.33% Neutral 26%
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Somewhat preferred 19.33% Least preferred 33.33% Thus, the boiled candies, toffees and lollypops lie maximum in the least preferred category and minimum in the preferred category.

Question 2d

The above pie chart shows the ranking of Sweets (Mithai) that respondents have shown through the following results: Most preferred 13.33% Preferred 14.67% Neutral 27.33% Somewhat preferred 24.67%
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Least preferred 20% Thus, the sweets (mithai) lie maximum in the neutral category and minimum in the most preferred category. Question 2e

The above pie chart shows the ranking of Sweets (Mithai) that respondents have shown through the following results: Most preferred 7.33%
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Preferred 27.33% Neutral 17.33% Somewhat preferred 23.33% Least preferred 24.67% Thus, the cookies lie maximum in the preferred category and minimum in the most preferred category.

Question 3

Television is the most preferred media that impinges buy now within respondents and the least preferred media is Radio.

Question 4 and Question 6 (CROSS-TAB, STANDARD DEVIATION AND CORRELATION)

Descriptive Statistics Mean Do you find confectionery advertisements interesting? Have you purchased any confectionery because of its sales promotion scheme? 1.3200 .46804 150 1.1467 Std. Deviation .35496 N 150

Correlations Have you purchased any Do you find confectionery advertisements interesting? Do you find confectionery advertisements interesting? Pearson Correlation Sig. (2-tailed) N Have you purchased any confectionery because of its sales promotion scheme? N *. Correlation is significant at the 0.05 level (2-tailed). 150 150 Pearson Correlation Sig. (2-tailed) 150 .200* .014 1 confectionery because of its sales promotion scheme? .200* .014 150 1

Out of the 102 respondents who said they have purchased confectioneries because of their sales promotion scheme, 92 said they find confectionery advertisements interesting and 10 said they do not find the confectionery advertisements interesting. Out of the 48 respondents who said they have not purchased confectioneries because of their sales promotion scheme, 36 said they find confectionery advertisements interesting and 12 said they do not find the confectionery advertisements interesting. Above S.D. is 0.35496 and 0.46804 which shows it is not too scattered and is not deviating much from the assessed mean values from the above table itself.
Our Pearson Correlation = 0.200 and Sig. (2-tailed) = 0.014

 This implies it is a Positive correlation. However, they have a very weak relationship as

the correlation value is closer to 0.

It can therefore, be interpreted that there does not exist statistically significant correlation

between the above two variables. That means, increase or decrease in one variable will not increase or decrease the second variable.

Question 5 and Question 7 (CROSS-TAB AND LINEAR REGRESSION)

Variables Entered/Removedb Variables Model 1 Entered Which company's advertisement impactsyour mind the most? a a. All requested variables entered. b. Dependent Variable: Does the brand remind you of its advertisement and sales promotion when you buy them? Model Summary Adjusted R Model 1 R .201a R Square .040 Square .034 Std. Error of the Estimate .40856 Variables Removed Method . Enter

a. Predictors: (Constant), Which company's advertisement impactsyour mind the most?

ANOVAb Model 1 Regression Residual Total Sum of Squares 1.035 24.705 25.740 df 1 148 149 Mean Square 1.035 .167 F 6.202 Sig. .014a

a. Predictors: (Constant), Which company's advertisement impactsyour mind the most? b. Dependent Variable: Does the brand remind you of its advertisement and sales promotion when you buy them?

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Which company's advertisement impactsyour mind the most? a. Dependent Variable: Does the brand remind you of its advertisement and sales promotion when you buy them? B 1.097 .074 Std. Error .060 .030 .201 Coefficients Beta t 18.377 2.490 Sig. .000 .014

Cross-tab analysis:
Those who have the most impact on their minds for Cadbury advertisements are 98, out of which 82 remember the advertisement and sales promotion of the brands when they buy them whereas 16 do not.

Similarly, those who have the most impact on their minds for Nestle advertisements are 29, out of which 21 remember the advertisement and sales promotion of the brands when they buy them whereas 8 do not. Those who have the most impact on their minds for Lotte advertisements are 3, out of which 2 remember the advertisement and sales promotion of the brands when they buy them whereas 1 does not. Those who have the most impact on their minds for Perfetti advertisements are 15, out of which 9 remember the advertisement and sales promotion of the brands when they buy them whereas 6 do not. Those who have the most impact on their minds for Parle advertisements are 5, out of which 3 remember the advertisement and sales promotion of the brands when they buy them whereas 2 do not. Linear regression analysis: Linear regression is the relationship analysis between 2 variables. The dependent variable is Q5 = does the brand remind you of its advertisement and sales promotion when you buy them? The Independent variable is Q7 = which companys advertisement impacts your mind the most?

 The coefficient part of the output gives us the values that we need in order to write the regression equation. The regression equation will take the form Predicted variable (dependent variable) = slope * Individual variable + Intercept From the table we know that the slope = 0.74 and Intercept = 1.097 Therefore our required linear regression equation will be the following Q5 = 0.74 * Q7 + 1.097 Question 8a

The above pie chart shows the effectiveness of the advertisement of Cadbury Dairy Milk Shubh Arambh on the scale of 5 that the respondents rated and the results are as follows Least effective 20% Somewhat effective 15.33% Neutral 18.67% Effective 12.67%
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Most effective 33.33%

Question 8b

The above pie chart shows the effectiveness of the advertisement of Cadbury Shots Kuch meetha hojaye on the scale of 5 that the respondents rated and the results are as follows Least effective 18%
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Somewhat effective 20.67% Neutral 16.67% Effective 28.67% Most effective 16%

Question 8c

The above pie chart shows the effectiveness of the advertisement of Nestle Kit Kat squirrels Kt Kat break banta hai on the scale of 5 that the respondents rated and the results are as follows Least effective 16% Somewhat effective 22%
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Neutral 25.33% Effective 20.67% Most effective 16%

Question 8d

The above pie chart shows the effectiveness of the advertisement of Perfetti Alpenliebe kajol and alligator on the scale of 5 that the respondents rated and the results are as follows Least effective 20.67% Somewhat effective 22.67%

Neutral 22% Effective 18.67% Most effective 16%

Question 8e

The above pie chart shows the effectiveness of the advertisement of Perfetti Center Fresh Baatein kam kaam zyada on the scale of 5 that the respondents rated and the results are as follows Least effective 16% Somewhat effective 14%
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Neutral 20% Effective 24% Most effective 26%

Question 10

It can be clearly seen from the above graph that 74% respondents have chosen Cadbury celebrations Amitabh Bachhan as the best brand-celebrity combination followed by 13.33% who found Perfetti Alpenliebe the best and again followed by 12.67% who found Nestle Munch Rani Mukherjee the best.
1

Question 7 and Question 10 (CHI-SQUARE WITH CROSS-TAB)

From the above bar diagram, it can be interpreted that Cadbury outrules every other brand significantly in both brand-celebrity combination as well as the most impactful brand in the minds of respondents.

 It is then followed by Nestle, Perfetti, Parle and Lotte.

Among all the 5 brands, maximum favorability is towards Cadbury and Amitabh Bachhan combination and Cadbury brand as a whole.

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 17.394a 17.517 .333 150 df 8 8 1 sided) .026 .025 .564

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 38.

Rules of chi-square A chi-square test is used when you want to see if there is a relationship between two categorical variables. We interpret the outcome with the help of the following rule:
If calculated value is less than tabular value at 5% (0.05) the result is not significant.

Accept null hypothesis.

If the calculated value is more than tabular value at 5% (0.05) the result is significant.

Reject null hypothesis. Hypothesis:

H0 = there is no significant relationship between the brand-celebrity combination and the

company whose advertisements impacts the mind the most.

H1 = there is a significant relationship between the brand-celebrity combination and the

company whose advertisements impacts the mind the most. Now, from the above chi-square table, we get to know that the Asymp. Sig. (2-sided) i.e P = 0.026, which is less than the value of alpha = 0.05.

 Also, the tabular value of Chi-square at df = 8 is 15.51 and calculated value of Chi-square at df = 8 is 17.394 @ alpha = 0.05. The calculated value is greater than the tabular value. This means the result is significant. Thus, H0 is rejected.
This implies there is a significant relationship between the brand-celebrity combination and

the company whose advertisements impacts the mind the most.

Question 11 (ONE SAMPLE CHI-SQUARE)

"Advertising and Sales promotion impacts consumers buying behavior in confectioneries" Observed N strongly agree agree neutral disagree Total 72 62 14 2 150 Expected N 37.5 37.5 37.5 37.5 Residual 34.5 24.5 -23.5 -35.5

Test Statistics "Advertising and Sales promotion impacts consumers buying behavior in confectioneries" Chi-Square df Asymp. Sig. 96.080a 3 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 37.5.

Hypothesis:

 H0 = "Advertising and Sales promotion impacts consumers buying behavior in confectioneries" is false. H1 = "Advertising and Sales promotion impacts consumers buying behavior in confectioneries" is true. Now, from the above chi-square table, we get to know that the Asymp. Sig. i.e P = 0.000, which is less than the value of alpha = 0.05.
Also, the tabular value of Chi-square at df = 3 is 7.81 and calculated value of Chi-square

is 96.08 @ alpha = 0.05.

Now here, the calculated value is much higher than the tabular value. This means the

result is significant. Therefore, we reject H0. Thus, we accept H1 which holds that there is a significant difference between observed frequency and expected frequency. It implies that the statement "Advertising and Sales promotion impacts consumers buying behavior in confectioneries" is true.

Question 12

This pie chart shows that 97.33% respondents want to see more creative advertisements and getting innovative sales promotion schemes in future whereas 2.67% do not want to.

CHAPTER 5 LIMITATION, CONCLUSIONS AND SUGGESTIONS

LIMITATION
The research is confined to a certain parts of Noida due to time constraints and does not

necessarily shows a pattern applicable to all the places. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. The results in the analysis are approximate percentages and might vary to some extent. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

CONCLUSION
The major hypothesis of the research is accepted. Advertising and Sales promotion impacts consumer buying behavior in confectioneries (proved in question 11). Many people remember the brand when they purchase any confectionery of their choice which implies, the advertisements impact the mind of consumers. Also, holds true and fulfills the objective of this dissertation report. The current confectionery advertisements by the big players of the industry are admired by most of the people and they impact their buying behavior.
Chocolates have been ranked highest as the most preferred confectionery item by the

respondents followed by chewing gums opted as preferred, sweets (mithai) as neutral and once again leading in the category of somewhat preferred and finally the least preferred confectionery item is Sugar boiled candies, toffees and lollypops. Television is the most reliable media for advertising the confectioneries by the companies followed by word of mouth being the second highest favorable media. It can be inferred that many people buy confectioneries due to their sales promotion schemes which might come up during festive season or for various occasions such as Ney Year packs, etc. One of the most preferred appeals among confectionery advertisements is Love followed by Humor. The more people find an advertisement interesting, the more are the chances of them to purchase confectionery due to their sales promotion.
The all time hit advertising brand-celebrity combination in confectioneries is Cadbury

celebration and Amitabh Bachhan.

 Cadbury remains the most favorite of most of the respondents. It has shown the highest degree of favoritism.
The most effective advertisement is Cadbury Dairy Milk Shubh Arambh among other

confectionery advertisements by various brands. People would like to see more creative advertisements and get more innovative sales promotion schemes under confectioneries.

SUGGESTIONS
Companies can come up with more innovative sales promotion schemes under confectioneries which are happening but not vigorously. They need to focus on advertising more on television to fight competition and break the clutter of advertisements.
Since Amitabh bachhan is the most favorite endorser in confectionery, other brands

need to select one such celebrity to match the pace with Cadbury India, the market leader. Adopt more of Love and Humor appeals in the advertisements. Sales promotional strategies should be evaluated twice. First at the stages of implementation and secondly after the final performance because implementation control will suggest improvements during the application of the promotional strategy, while performance control will be a guide for the future. The push and pull promotional strategies may be used to enhance sales.

 http://www.indiafooddrinkexpo.com/news/indian_confectionery_industry_w orth_rs_1400_c

http://www.hinduonnet.com/businessline/iw/2001/07/22/stories/0522e051.htm http://www.essays.se/essay/63acd56ba6/......The subject of celebrity

endorsement: what it was and what it has become - a literature review

http://www.essays.se/essay/58f0ec290d/......Organizing print ads

containing scent: a case study on the organization of print ad elements

http://communicationandadvertising.blogspot.com/2007/04/literature-review.html
Reflection of Our Nation Through 2007

CHAPTER 6 REFERENCES

Advertising ,,,,,, Wednesday, April 25,

http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/7319/5692......The
Role of Media on Consumer Brand Choice, A Case Study of Chocolate Industry

http://www.krepublishers.com/02-Journals/JSS/JSS-10-0-000-000-2005-Web/JSS-10-1-001-0762005-Abst-PDF/JSS-10-1-009-016-2005-164-Ayanwale-A-B/JSS-10-1-009-016-2005-164-AyanwaleA-B.pdf......The Influence of Advertising on Consumer Brand Preference, Adeolu B. Ayanwale, Taiwo Alimi and Matthew A. Ayanbimipe

http://www.audiencematters.com/interview-individual.php?title=Sanjay%20Purohit,%20Executive
%20Director%20-%20Marketing,%20Cadbury%20India Interview of Sanjay Purohit, Executive Director - Marketing, Cadbury India

 http://www.scribd.com/doc/8201172/study-of-consumer-behaviour-towards-nestle-and-cadburychoclates

QUESTIONNAIRE ON IMPACT OF ADVERTISING AND SALES PROMOTION ON CONSUMER BUYING BEHAVIOR IN CONFECTIONERIES
GENERAL GUIDELINES:
group of 18 to 26 years. 2) The questionnaire has been divided into three segments: a. Personal Details b. Preferences in confectioneries c. Impact of advertising buying behavior in
3) Kindly fill in the following 1) The respondents selected for this questionnaire are from Noida region and lie in the age-

CHAPTER 7 ANNEXURE

and sales promotion on consumer confectioneries details and follow the guidelines as

per the question, wherever mentioned. 4) PLEASE DO NOT LEAVE ANY QUESTION UNANSWERED.

Name: Age: Gender: Monthly Income: 1. Please tick the confectionaries you eat from the following: Chocolates Marshmallows Chewing Gums Sugar boiled Candies, Toffees and Lollypops Sweets (Mithai)
2. RANK the following confectionery items as per your preferences on a scale of 5. (1 being

the most preferred and 5 being the least preferred) (one number to only one option): a. Chocolates b. Chewing Gums c. Sugar boiled Candies, Toffees and Lollypops
d. Sweets (Mithai)

e. Cookies

3. Which advertising media impinges BUY NOW within you for Confectioneries? SELECT

ONLY 1. Newspapers and magazines Word of mouth

1

Television Radio Banners and hoardings

Social websites

4. Do you find Confectionery advertisements interesting? Yes No 5. Does the brand remind you of its advertisements and sales promotion when you buy them? Yes No 6. Have you purchased any confectionery because of its sales promotion scheme? Yes No
7. Which companys advertisement impacts your mind the most? (Select only 1)

Cadbury (Bubbaloo, Dairy Milk, 5Star, Eclairs, Gems, Halls, etc.) Nestle (Munch, Milky Bar, Kit Kat, Bar One, Polo, etc.) Lotte (Spout, Coffy Bite, Lacto King, etc.) Perfetti Van Melle (Big Babol, Mentos, Alpenliebe, Happydent, Chloromint, etc.) Parle (Melody, Mango Bite, Poppins, etc.)
8. How effective is the advertisements of following brands as per you? (Give score out of 7 to

all, 7 being the most effective and 1 being the least effective) (numbers can be repaeated) Cadbury Dairy Milk Shubh Arambh Cadbury Shots kuch meetha hojaye Nestle Kit Kat Squirrels Kit Kat break banta hai Perfetti Alpenliebe Kajol and alligator Perfetti Centre Fresh Batein kam kaam zyada

9. What advertising appeals do you prefer in an advertisement? Love Humor Fear Emotional 10. Which Brand Celebrity combination you found the best? (select only 1) Cadbury Celebrations Amitabh Bachhan Nestle Munch Rani Mukherjee Perfetti Alpenliebe - Kajol
11. Advertising and sales promotion impacts consumers buying behavior in

Sex Rational Music

confectioneries Rate on the following parameters: Strongly Agree Agree Neutral Disagree Strongly Disagree
12. Would you like watching more creative advertisements and getting innovative sales

promotion techniques by the companies under Confectionery? Yes No

Thank you for your valuable time. The information provided by you is completely for the research purpose. It will surely be helpful for my research work.

SYNOPSIS
1.

Title of the Research A STUDY ON IMPACT OF ADVERTISING AND SALES PROMOTION ON CONSUMER BUYING BEHAVIOR IN CONFECTIONARIES

2.

Rationale of proposed investigation The rationale behind this is to study the impact of various advertisement and sales promotion techniques followed by the confectionary companies over the purchase decision of the consumer. It is to see whether the purchase is impulse or they are actually attracted by the advertisement and sales promotion.

3.
a.

Review of work already done on the subject Celebrity endorsement has increased the past few years and it has become a widespread advertising strategy. By gathering information about the subject we have created a review over: what celebrity endorsement was and what it has become. The review brings all the important facts about the subject and should facilitate for practitioners and for further research. Celebrity endorsement is about endorsing products with help from a celebrity. Consumers association towards a celebrity endorser increases their purchase intention though many consumers have the celebrity as a role- model. It is important that the
1

consumer can identify with the celebrity and that the celebrity's image fits with the endorsed product, then celebrity endorsement will be an effective advertising strategy.

b.

The visual image has become an increasingly popular communication tool forstandardizing global advertising campaigns. Advertising is one of severalmarketing communication techniques, and is capable of reaching a massaudience repeatedly. It is about grabbing attention through trying tostimulate as many of the five senses as possible. One of the media that weencounter everyday is print media, where words and pictures work together toproduce a creative advertising concept.

c.

The television industry has made attempts to search out and exploit differences between consumers, by providing over 400 specialized channels (Turow 4). For example, Nickelodeon, MTV, Food Network or ESPN are all specialized channels that attract a certain type of people. Each group is attracted to a specific type of content, which makes it easier for advertisers to target a specific audience a certain way.

d.

The proliferation of assorted brands of food drinks in the country has led to cut-throat competition for increased market share being witnessed among the operators in the food drink industry. When competition is keen and the consumers are faced with brand choice in

the market, it becomes imperative for the manufacturers to understand the major factors that can attract the attention of buyers to his own brand.

e.

Research on family decision making has been largely confined to spouses, who have been considered as the relevant decision making unit in a family. However, the role of third party influences, such as children, on decision making strategies and negotiations is essential to taking a broader view of the relevant unit of analysis.

4. a.

Objective(s) Impact created on the consumers mind through advertisement and sales promotion of confectionaries.

b.

Whether they are influenced by the same during the purchase decision making or not.

5.

Major Hypothesis (s)

H0 = advertisements and sales promotions does not impact consumer buying behavior in confectionaries. H1 = Advertisements and sales promotions impacts consumer buying behavior in confectionaries.

6.

Materials and Methods-

Descriptive research. The methodology of study is the questionnaire method survey. The study is completely based on the primary data and the secondary data. SPSS will be used for the data analysis and interpretation. Sampling would be convenience based.