A

PROJECT REPORT

ON

“IMPACT OF ADVERTISEMENT OF ON YOUTH

WITH RESPECT TO FMCG PRODUCTS”

SUBMITTED BY:-

SANDEEP ZOTING ,

PASCOAL DANTAS

MD. IRFAN

POOJA SHETH

ASHISH TRIPATHI

ANIKET WADEKAR

MOAZAM SHAIKH .

(PGP / SS / 11-13 / IIPM )

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ACKNOWLEDGMENT

We consider it a privilege to express a few words of gratitude

and respect to all who guided and inspired me in successful

completion of this project.

We acknowledge my profound ineptness and extend my deep

sense of gratitude to my guide Prof. MAITREE DE for sharing

their knowledge and experience and providing valuable

guidance, profound advice and encouragement that has led to

successful completion of this project.

We would like to thank many other bank staff for their technical

and moral support required for realization of this project.

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INDEX

EXECUTIVE SUMMARY

INTRODUCTION

THE MAIN OBJECTIVES OF THE

STUDY ARE

SCOPE AND LIMITATIONS

REVIEW OF LITERATURE

RESEARCH METHODOLOGY

CONCLUSION

BIBLIOGRAPHY

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IMPACT OF ADVERTISEMENT OF ON YOUTH

WITH RESPECT TO FMCG PRODUCTS

EXECUTIVE SUMMARY

As we are approaching to the twenty first century the FMCG

product market is growing like a money plant in this world. Not

only companies are gaining huge profit from these product

sources but these products are also one of the main ingredients

in our day today life. So the customer has to think and decide on

the products which he is going to purchase because of the

availability of the choices replicates variants in every section of

the products.

The average Canadian child watches nearly 14 hours of

television each week. By his/her high school graduation, the

average teen will have spent more time watching television than

in the classroom. Studies show how time spent watching

television varies between different age groups and cultures. This

is especially relevant when studying the effects of excessive

television exposure on disadvantaged populations.

The ad-filmmakers are formulating fresh ways of enticing the

Youths to buy their products. If an advertisement for a product

attracts the Youths, they tend to purchase it frequently or at least

give it a try. If a company has to survive in this competitive

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world, it has to project the image of its products in such a way

that, they pick up the maximum sales, when they hit the stores.

The best way to persuade the Youth to buy the product of a

particular brand, out of the numerous choices available in the

market, is attractive advertisement. These advertisements

familiarize kids with the latest products in the market and

inculcate some good habits in them, such as, the ones related to

dental hygiene. However, the ad-filmmakers should remember

that the commercials can also have negative impact on people,

especially the young children. In this article, we have presented

some of the most visible effects of advertising on children,

positive as well as negative.

Over the years there has been an increasing amount of violence

in media directed towards children. There have also been an

increasing number of violent acts directed toward children and

the high degree of these acts that children see on television, in

movies, computer games, videotapes, and the large number of

violent toys. The National Association for the Education of

Young Children (NAEYC) feels that the increasing number of

violence endangers children from growing up in a mentally

stable way.

The influence of the media on the psychosocial development of

children is profound. Thus, it is important for physicians to

discuss with parents their child’s exposure to media and to

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provide guidance on age-appropriate use of all media, including

television, radio, music, video games and the Internet.

The objectives of this statement are to explore the beneficial and

harmful effects of media on children’s mental and physical

health, and to identify how physicians can counsel patients and

their families and promote the healthy use of the media in their

communities.

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INTRODUCTION

Advertisements convey brand differentiation and this may be

important in several categories, which consist of several brands.

In FMCG products like tea, coffee and detergents,

“differentiation awareness” can be created by television

advertising, but in certain categories there may be a need to

demonstrate the effectiveness of brands. Differentiation with

which Youths cannot “connect” may have a negative

implication and if a brand “connects” Youths with its

differentiation, it is likely to also differentiate itself in terms of

getting identified with the Youth. A detergent or a washing

machine, which claims “low water consumption” has to

demonstrate this claim at a retail outlet especially given the fact

that the quality of water varies across areas even in a specific

geographical region. It is also essential that a good

“differentiation proposition” result in a positive word-of-mouth.

Through this we can understand that the advertisement impact

on youth with reference to FMCG product in the current

scenario not only purchase the product based on the one quality

that it contains. But they carefully analyze it and then go for the

purchase.   So knowing the customers attitude is important and

what are the factors they considered when purchasing a product.

In a certain situation, the company may have two offerings in a

product-line and there is a need to differentiate them clearly

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depending on the target segments involved. This is a complex

situation where differentiation decides the growth of the brand

and the perceived difference between the offerings. An added

layer to the complexity is the same brand name being used for

the offerings. Fairness cream is a category in which the benefit

is the fairness of the complexion. A brand like Fair and Lovely

built over the years still has a strong association with the

category but under tremendous pressure from competitive

brands and the most important criteria which these brands is the

herbal touch associated with them. Herbal ingredients are

becoming popular with Youths in several categories and

personal care in India has a strong tradition of herbal care. Fair

and Lovely had to launch its herbal variant (it used the same

brand probably because of the brand equity built up over the

years). The interesting fact is the differentiation being conveyed

by advertising. The original version uses an aspiration route in

which the brand's ultimate benefit is success through

confidence.

Penetration level in most product categories like jams,

toothpaste, skin care, hair wash etc in India is low. The contrast

is particularly striking between the rural and urban segments -

the average consumption by rural households is much lower

than their urban counterparts. Low penetration indicates the

existence of unsaturated markets, which are likely to expand as

the income levels rise. This provides an excellent opportunity

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for the industry players in the form of a vastly untapped market.

Moreover, per capita consumption in most of the FMCG

categories (including the high penetration categories) in India is

low as compared to both the developed markets and other

emerging economies. A rise in per capita consumption, with

improvement in incomes and affordability and change in tastes

and preferences, is further expected to boost FMCG demand.

Growth is also likely to come from Youth "upgrading",

especially in the matured product categories.

As we are approaching to the twenty first century the FMCG

product market is growing like a money plant in this world. Not

only companies are gaining huge profit from these product

sources but these products are also one of the main ingredients

in our day today life. So the customer has to think and decide on

the products which he is going to purchase because of the

availability of the choices replicates variants in every section of

the products.

Now a day’s customer has a wide variety of choice while

selecting FMCG, producer has to add additional values to the

product that the product continues its presence in the market.

Different factor governing the customer based on different

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product category like milk products, beverages, prepared dishes,

Chocolates & Confectionaries, personal care and Fabric care etc.

So by this project we can come to know the effect of branding

on Youth while purchasing a FMCG product & Durable goods.

It has been wrongly assumed that the advertising function is of

recent origin. Evidences suggest that the Romans practiced

advertising; but the earliest indication of its use in this country

dates back to the middle Ages, when the use of the surname

indicated a man’s occupation. The next stage in the evolution of

advertising was the use of signs as a visual expression of the

tradesman’s function and a means of locating the source of

goods. This method is still in common use. The seller in

primitive times relied upon his loud voice to attract attention and

inform Youths of the availability of his services. If there were

many competitors, he relied upon his own personal magnetism

to attract attention to his merchandise. Often it became

necessary for him to resort to persuasion to pinpoint the

advantages of his products. Thus, the seller was doing the

complete promotion job himself.

Development of retail stores, made the traders to be more

concerned about attracting business. Informing customers of the

availability of supplies was highly important. Some types of

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outside promotion were necessary. Signs on stores and in

prominent places around the city and notices in printed matters

were sometimes used.

When customers were finally attracted to the store and satisfied

with the service at least once, they were still subjected to

competitive influences; therefore, the merchant’s signs and

advertisements reminded customers of the continuing

availability of his services. Sometimes traders would talk to

present and former customers in the streets, or join social

organizations in order to have continuing contacts with present

and potential customers.

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THE MAIN OBJECTIVES OF THE STUDY ARE:

To assess current Youth sales promotion schemes in the

market

To assess how Youths differentiate the products based on

advertisements

To get an insight into retailers' views regarding the

schemes being offered in toilet soap category, and Youth

perceptions

To study Youth perceptions regarding various schemes in

this category and responses toward them.

To study the various methods of differentiation.

To analyze the methodology adopted by companies to

target end Youths.

To address basic business questions like:

Do companies have the right product/service to offer?

How companies reach their customers?

How the buying power can be created?

To prepare new business strategies

Scope and Limitations:

The geographical scope of the study was restricted to the

PUNE city due to time and resource constraints.

The study being exploratory in nature, the sample size was

restricted to 30 Youths (student group) and 6 retailers.

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Focus being mainly on in-depth probing, the

generalizations drawn are only indicative and not

conclusive.

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REVIEW OF LITERATURE

This minor project consist of the response of different age group

respondents who specifies their predetermined factors which

drives them while purchasing the factors which drive them to

buy the products are as under, Price, Availability, Brand name,

Quantity, Quality, Packing, advertisement.

Impact of Effective Advertisement on Youth. By going through

this article I have come across some points which you should

look upon. If you want to read the article it is present in the

appendix. Following are some points:-

Advertising is the only direct method which helps to reach

masses of potential buyers. Advertising, being dynamic, changes

with changing methods of distribution and consumption.

In the present era of information explosion and media influence,

these advertisements play a major role in changing the settled

perception or thinking, which is otherwise called attitude, of the

Youth and· also the consumption pattern of the society in

general. Thus, the impact leads to cultural and social changes to

a great extent.

Why is there a need of advertising? Advertising is a way of

communicating information to the Youth which enables him or

her to compare and choose from the products and services

available. Advertising is the most economical means by which a

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manufacturer or an Institutional body can communicate to an

audience whether to sell a product or promote a cause of social

welfare.

Essentials of Effective Advertisement-the writer thinks that

there are 4 important things for an advertisement to be effective.

They are importance of claim, believable, uniqueness and

repetition.

The advertiser must constantly assess the situation to choose the

right environment and ideal time for an advertisement to be

launched. Some of the situations are as follows:-

When there is a favorable primary demand of particular

product.

When there is a distinctive product differentiation from

other competitive brands.

When mass market is penetrated.

In order to ensure that the advertisements reach the target

Youths in a most effective way and gets right response from

them, it has to be ensuring that such advertisements are

presented in the right way. The following steps on the part of the

Youth may ensure that the advertisements are on the right track.

· Getting attracted towards the advertisements.

· Listening and observing the contents of the

advertisements in full.

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· Continuous watching of the same over a period.

· Comparing the advertisements of similar products.

· Making a trial purchase as follow up activity.

· Assessing the level of utility of the product individually.

· Ascertaining the level of utility derived with other similar

Youths.

This study shows how an advertiser can use different techniques

of advertisements to show FMCG products. The techniques are

as follows:

Value added ads- In addition to providing information about the

product; Value-added advertising transforms a product into

something more appealing to Youths than the physical object

produced in the factory. Therefore, it is a missing link between

brand attributes and the customer perception, between product

features and need fulfillment, .between benefits and values.

Comparative ads- the advertiser compares the 2 brands of the

same product category. The ad can be copied as the Pepsi and

sprite example in the case. They have used the same story but

both have them had a different approach.

Informative ads- these ads are used to provide information to the

Youth about different products and services.

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Health and Hygiene ads- these ads show that the product is

taking care of the Youth's health. It is emphasizing of the

physical attribute of the product. What does the product do?

How does it help you? The ad tells you all. These are some of

the techniques.

Lifestyle ads- Another way to. nave an impact on the Youth's

mind is portraying the life-style of a successful person.

Humorous ads- Humor in the advertisement is normally kept in

order to create a light, jovial and likely kind of an atmosphere

Packaging ads- Advertisement is trying to lure the customers to

buy their products on the basis of the way they are brought in

front of the Youth's eyes ie. Packaging. Dabur has brought in

different flavors in the market of fruit juice. E.g. Mango,

Pineapple, Orange, Mixed Fruit Jete. All these are in different

packages, i.e. 50 ml, 1000 ml, etc. They claim that unlike other

juices, which have preservatives in them, these products are

without preservatives. Hence, the punch line is "Real Fruit

Juice".

Price ads- Marketers also lure the customers by showing in an

advertisement that a product is available at a lesser price without

any compromise on the standard. Cadbury India advertised the

5-Star chocolate by offering 30% more chocolate in its 5-Star

bar for the same price.

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Celebrity ads- Celebrities are mainly used in the advertisement

either to lure the rural people in buying a particular product or in

forcing the young generation to buy the products. This is also

called endorsement advertising.,{t is also used in portraying that

a particular product is best in--qtJality because a person who is

also very well known in his/her field endorses it. The impact of

these stars in advertisements enables the company to increase its

sale.

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RESEARCH METHODOLOGY

Technique used for the survey is questionnaires, focus group

discussions and interviews. In order to address the above

questions an exploratory study was conducted. The idea was to

probe and get deeper insight into sales promotion scenario in

toilet soap market and to tap perceptions of retailers and Youths.

In order to address above mentioned objectives (i) study of

secondary sources was carried out, 10(ii) in-depth interview of

six retailers was undertaken and 11(iii) structured questionnaire

was designed to seek Youth responses. Convenience sampling

was used for both retailers as well as Youth studies. Six retailers

ranging from small kirana store to supermarket were

approached. All the retailers were located in the Pune. The

respondents for Youth study were postgraduate students in the

age group of 19-24 belonging to middle and upper middle and

upper class. The total respondents were 30 in number. They

were residing in hostel or as PG hence sole decision-makers for

this category. Also this age-group being more experimental and

likely to be more deal prone, so their perceptions, preferences

would give some insights to companies planning sales

promotions targeted at them.

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CONCLUSION

Advertisement, the foregoing discussion show, is a sharp double

edged weapon. When the claims of an advertisement correspond

with the features of a product purchased as a consequence of

such advertisement, the advertisement is bound to create a

positive attitude among the Consumers in the long run. On the

other hand, when the features of the product purchased do not

corroborate the claims made in advertisement, those

advertisements are sure to create a negative attitude among the

consumers. It is therefore essentials that an advertisement aims

to create faith and goodwill in the minds of consumer about the

product featured by conforming to the core principles of

believability, uniqueness, reputation and reasonable claims.

This Endeavour of the present survey can thus be concluded on

a note that repetition surely has very profound, widespread and

long-lasting impact on the emotions and behavior exhibited by

the consumers with regard to their purchase decisions.

Repetition, therefore, is a solution for many of the problems that

marketers face while trying to generate sales and favorable

response. But the frequency and various other factors like

emotions, clutter, familiarity/unfamiliarity of the brand or the ad

prove and determine the very subtle demarcation between an

application which improves effectiveness and the same effect

considered as a brain wash or damage

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Advertising serves many generic purposes, but for specific

categories like FMCG, the involvement of all stakeholders is

vital to the success of an advertising strategy. Innovation and

creativity are pillars of great advertising strategies, but equally

important are the content and delivery of the advertisement.

The techniques discussed are not exhaustive. The general

awareness of the consumers is on the increase, because of many

factors like urbanization, better transportation, developments in

information technology, media, etc and the average consumer

today is more concerned about the value of his money and time.

All compels the advertisers to innovate and develop new

techniques to attract the customers. We can say that the

advertisers use these different means of advertising in order to

lure the customers to buy their products. It is not necessary to

use only one aspect of advertising in an advertisement. Instead,

multiple aspects of advertising are being used to make sure that

the consumers buy the respective company's product.. Briefly,

we can say that the different aspects of advertising are quite

beneficial for promoting a product.

Every advertisement has some multiplier effect which gives a

greater benefit with respect to/ the amount spent. Recall of an

advertisement varies from individual to individual, and a

company may calculate its advertisement multiplier for

measuring its advertisement effectiveness.

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An attempt is made to identify the level of awareness among the

respondents towards TV advertising. From the study it is

inferred that TV commercials have considerable int1uence on

the Buying decision as well as Brand preference of the

consumers. The celebrity endorsement is also considered to be

an important part of advertisements to make them more creative

and innovative in their reach to the consumers and their attempt

to capture their attention.

Following observations are made after making an analysis of

data collected from various respondents and from general

discussions with them:

1. TV ads are considered as a most important source of

information among the respondents. This highlights the

role the TV commercials play in moulding the buyer

behavior. Thus, purchase decision of the people is

definitely impacted by advertisements.

2. Almost half of the segment of respondents likes to watch

ads regularly. This means TV outperforms other Medias as

far as effective presentation is concerned. It is capable of

attracting attention immediately.

3. A significant portion of the people prefers to watch ads

because of the ' informative content. This is because of

“evocation of experience" i.e TV advertising easily

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stimulates the experience of using and owning the product.

:

4. Brand preference is considered to be one of the

prerequisite for brand : salience-to create the Top of the

Mind Brand Awareness. TV ; commercials go a long way

in achieving this as also indicated by the study. ;

Advertising works by reinforcing Brand preference for

mature brands. :

5. A small segment of the respondents think that the

advertisements are totally true or reliable. All the rest of

them think that they are either sometimes deceptive or

mostly deceptive.

6. Major chunk of the respondents feel that celebrities

'presence in the ads is highly required. They feel models

are familiar and their presence is reassuring. Moreover,

because of the high positive image of the celebrities

consumers feel the genuineness of the product/ brand.

Celebrity endorsement is generally preferred for such

products as soft drinks, cars, suitings, premium range

products and luxurious items.

7. More than half of the consumers are not able to relate

themselves with the lifestyle shown in the TV ads. This is

because the people are not able to conform the

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exaggeration shown in the respect of product benefits with

their own picture of reality.

8. When asked to recall an advertisement in respect of any

Fmcg, almost all the respondents were able to recall only

one or two advertisements or the tag lines of their favorite

brands. They could also immediately relate the celebrities

they have seen in the respective ads.

9. TV advertising provides a unique blend of sight, colour,

movement, sound, repetition and presentation of the

products. This helps TV commercials to gain advantage

over other medias.

10. Although informative content is more liked by the

respondents but with the advent of too many satellite TV

channels, the use of celebrities has become an important

issue for the advertiser. This is to make the consumer more

conscious and attract towards the product.

Today, creating a different differentiation is becoming difficult

and problematic. Product differentiation should be strong

enough to create a wide gap between two brands. If a

differentiation technique does not create a wide gap between the

two brands, then the customer is not able to differentiate the

same leading to less brand loyalty. This is what is happening in

FMGC sector especially in soap industry, where the customer is

not able to differentiate between two soaps. Lux, Cinthol

appears to be same which was not the case earlier. As the

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product differentiation technique does not create a wider gap

between one brand and the other, customer loyalty is getting

eroded.

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BIBLIOGRAPHY

www.google.com

www.yahoo.co.in

www.wikipedia.com

http://www.ukdissertations.com/dissertations/marketing/

fmcg-products.php#ixzz2TLuQUF59

http://www.ukdissertations.com

http://www.ukdissertations.com/dissertations/marketing/

fmcg-products.php#ixzz2TLscPfN2

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