A PROJECT REPORT

ON
“IMPACT OF ADVERTISING ON DEMAND
OF COLOUR TV.”

SUBMITTED IN THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR

THE AWARD OF DEGREE OF
(SESSION 2005-2007)

Submitted to: Submitted by:

Ms. Neerja Sharma Amit Goyal
Lecturer MBA (MARKETING)
ODM Institute of Management Roll
No.05061114009
Hisar, Haryana
INDIA

DEPERTMENT OF BUSINESS MANAGEMENT

GURU JAMBHESHWAR UNIVERSITYOF SCIENCE &
TECHNOLOGY, HISAR
 ACKNOWLEDGEMENT

Before moving further, I would like to express my heartiest gratitude towards

those who extended a helping hand in the successful competition of the study.

First of all, I am highly indebted to Ms. Neerja Sharma (Lect. In Management)

who inspired me to take my research on this topic and whose wide guidance in the
subject has been a great inspiration to me. Moreover, he provided me invaluable sources
for collecting information.

I express my gratitude to all other faculty members for their constructive

criticism.

I am thankful to my parents who cooperated me very during my project work and

others who helped my directly and indirectly.

In the end, I pray to God who has always been a source of encouragement, help
and inspiration tome in the time of disappointment & despondency.

(AMIT GOYAL)
 TABLE OF CONTENTS

1- INTRODUCTION

2- RESEARCH METHODOLOGY

3- COMPANIES PROFILE

4- OBJECTIVEWISEANALYSIS/MICROANALYSIS

5- MACRO ANALYSIS

6- CONCLUSION

7- SUGGESTION & RECOMMENDATIONS

8- QUESTIONNAIRE

9- BIBLIOGRAPHY
INTRODUCTION
 Introduction to TV Industry

A popular alternative to stress reliving medicines is our own television set, provided it is
decked with several of the new and enticing features. Gones are the days when Indian sky
was monopolized by Doordarshan. Today with the cut throat competition between
multiple channels, the viewers preferences along holds an ample of variety of existing
programs to choose from, this has accentuated the manufactures propensity to enhance
their quality to met ever growing demands of the colors television industry. The
American invented the televisions but it was the Japanese and Koreans who invested
millions of dollars in the US market.

In 1980, when as many as 500 parties were given licenses for the manufacturing
of televisions only 60 companies were to produce and the market CTV’s owing to the
faulty policies of the government, most of them assembled imported parts, made some
money and got out of it. The kits they made were mainly the Japanese Kits, Korean Kits
and European kits. The serious player were only ten in number who survive until about 2-
3 years ago, and by the end of the century can be predicted that at the national level the
market will be dominated by five brands.

The flooding of the brands in the market has made the market very competitive.
The entry of MNC is a very good for the customers and the Indian companies on the
scene. For the Indian companies they encouraged competition, forcing them to focus their
strength in order to hold their market shares. This has been done remarkable swell, so far
at least by BPL which took the MNC attack by taking on the ad campaigns (believe in the
best) showing the Indian brand company to any foreign brand. It remains to be seen for
how long it can stay. On the other hand Onida LG which commends a premium in the
market due to his high quality is finding going through. With the entry of foreign brands
such as Akai, Sony, Samsung and Panasonic the domestic brands came under pressure.
Some of the brands like Sony, National Panasonic were available in the country in pre
liberalization era, these were limited to the grey market or direct imports after paying a
custom duty as high as 200% but this has changed now.
 The CTV Industry Scenario
A compounded growth rate of nearly 30 percent over ten years since 1992-93 has
given the CTV field an air of invincibility. During this period, the CTVs demand has
grown 32 percent on a base of 1 million.

As for the causal factors that explain this phenomenon, the problem is not of identifying
the factors but of separating the impact of the extraordinary large number of them that are
involved. Conceptually there are many ways of explaining the CTV demand
phenomenon. The simplest explanation, of course, is that the penetration of CTVs has
been very low.

Therefore, it was natural that it should grow rapidly, given the decline in prices
over the years, the proliferation of satellite channels offering incredible choice by way of
software, and finally the large number of brand and model options that are available now.

This explanation has a sound basis, given that even today, the penetration of
CTVs is less than 15%as against the total TV penetration of over 50%.

The proliferation of satellite channels, offering over 50 options as against one or

two prior to 1993-94 has certainly provided a tremendous incentive for the purchase of
CTVs. The base prices for 20 inch as well as the prices of large screen sets have fallen
considerable since 1992-93, impacting both the first purchase and replacement purchased
demand.

Finally, the extent of competition and therefore, the marketing activities have
gone up exponentially.

Now, the problem arises in taking this argument forward that the penetration of
CTVs is still less than 15% which means that the field has many years of healthy growth
going for it.

The counter argument is that when the demand for CTVs declined in 1989-90 and
1990-91, the circumstances were not very different. The penetration of CTVs was around
5%, the economy was healthy to there was a large reservoir of B&W TV owners. Most
importantly, the demand had grown at as high a rate as during the current phase, through
on a much smaller base.

In model building teems, the complexity arises from the fact that in the absence of
a declining growth rate, there is nothing intrinsically available in the data that helps us in
identifying cyclical factors at work
 Factors Driving Demand
From the launch of colour transmission in 1982 till 1987, the primary driver was
the very rapid expansion in the growth of the population covered by transmission.

In 1989-90, however, suddenly there was a change of direction, The CTV demand
which grew 15% in 1988-89 suddenly went into a decline.

1991-92 was the year of serious economic crises, the worst in recent memory. The impact
on CTVs was built dimensional. The economic crisis had inhibited the purchases
impulses among the customers dramatically. Then the government, in an effort to
conceive the foreign exchange that was at the centre of the crises, imposed crippling
restrictions.

The CTV industry, which was substantially depended on imports, was so badly
affected that the price of base model shot up by Rs. 2000 to 3000.

This price increase, together with the inhibited purchase impulse, affected demand
so badly that it fell below one million units in 1991-92. And in 1992-93, which received
the full impact of the crisis, the demand went down to some 9, 00,000 sets.

Post 1992-93, factors impacting the TV demand directly were as follow:-

• Cable TV became legal and this led to the proliferation of satellite channels from
nothing to over 50. In other words instead of one or two channels, the customer
suddenly had over 50 channels to choose from.

• The price of 20 inch CTVs fell continuously in absolute terms and therefore, even
more so in real terms.

• The step increases in the number of brands by itself, and the intensity of
competition expenditure. That it unleashed, led to a sharp increase in the
advertising expenditure.

• Liberalization allowed all the leading brands in the world to enter the country.
Threw re 11 significant new brands launches from 1993-1999.

• The prices of large screen sets declined very rapidly.

Beside the above, there were a whole lot of event which added substantially to the
demand because with the advent of satellite channels the coverage of events like
world cup cricket was dramatic and the promotion of such events was also dramatic.
Therefore, there was the 1994 world cup football, 1996 world cup cricket, 1998world
 cup football and 2006 world cup cricket, 2007 world cup cricket, all of which had a
very discerable impact on CTV sales.

Choice of Models
In 1998, the approach used was to do the forecasting of CTVs by first purchase
and repeat purchase segments, independently, across the population strata. While this
method has considerable conceptual appeal, its limitation are of two Kinds, is follows;

• Are our estimates, especially of replacement purchase down the population

strata, accurate enough to do this reliable?

• In the impact of macro-econometric factors the same across the population

strata?

Beyond the above, as the prices of CTVs dropped and the ratio of CTV
Prices to B&W TV prices decreased the relationship between B&W TV and
Colour television demand was there clearly to be seen.

Therefore, the question was whether it would be better to forecast the

demand for TVs per se and the split this demand between the B&W and CTV
segments.

The appeal of this approach was that it allowed for the accounting of the
relationship between the two. Secondly, as a sizeable entity affecting a large
proportion of the population, the impact of macro factors would be easier to
identify.
It was decided that we will do the forecasts using both the approaches, as
follows:-
• Forecast the demand for first purchase and replacement purchases
of CTVs all India level.
• Forecast demand for all TVs at the all India level and then split the
total demand between colour and B&W sets.

However, no forecast should ever be seen without simultaneously looking

at the assumption made.

The most striking aspect of the forecasting effort is that no matter which
approach was used or which model was used , the outcomes was always a sharp
fall in the growth rate in year 2005. Conceptually, this is easy to explain. There
were two major factors that roped up the CTV sales in 2004, as follows:-
 World Cup Cricket and the lagged effect of the sharp growth in
agricultural production in 1998-99. The growth agriculture was clearly related to
the record rabbi production affecting the northern states and in these sates the
peak buying season is April-June, subsequent to the Rabi harvest And this season
coincide with world cup cricket.
The reason why there is a sharp fall in 2000 is because the growth in 1999
was much higher than what it would have been in the normal course. This has
raised the base figure tremendously. Threfore, in the absence of any other factors
the growth of the field in the year 2000 will be the normal and on in inflated base
of 1999, the fall in the growth is sharp.

Even this assumes that the conditions will be normal and not negative. The
probable Negative condition is that of deficient monsoon. This will have a direct
effect on purchase in rural areas, towns and to somr extent, in class-I cities. As it
is the 1999-2000 agriculture season itself has been negative. Threfore, if the
monsoon fails to a significant extent, we could see a decline in CTV purchases. In
absolute teems for the first time since 1992.

But now this year 2005, the sale of CTV is increased and we hope that it
will be increased in the becoming years.
 Significance of Study
Advertising is the most important field of marketing of one want to survive in
todays tough competition marketing environment, there is no other ways, but to
advertising its project. We can define advertising as any paid form of non
personal presentation and promotion of ideas, goods & services by an identified
sponsor.

The firms have to spend money to advertise its products on different

media. The advertisement expenditure of the co. for the year 1997-98 as Rs. 1500
crores. The spender included not only business firms but also for social
organization that advertises their courses to various target publics.
The roots of advertising can be traced to early history. Although
advertising is mostly used by private enterprises. It is employed, in all countries
of the world, including socialist countries. Advertising is to sell coca-cola world-
wide or to get consumers in a developing nation to drink milk or to use birth
control.
Organizations handle advertising in different ways. In small companies,
advertising might be handle by some one in the sales departments whose job is set
advertising budget, works with advertising agency & handle direct that are mail
advertising, dealers display & other advertising not done by the agencies. Most
companies hire outside advert agencies because they offer several advantages.
Due to the fast growing of importance of advertising all types of
organizations irrespective of its nature resorting to advertising by billions of
dollars. But nobody knows, whether the investment is worth inverting. Although
several studies have been carried out to evaluate the effectiveness, precisely &
discretely. The directly measure of ad effectiveness is the sales.
There is no conclusive evidence to speak that the sales increases is only
due the advertisement because the sales is influenced of ads on sales & giving an
inclusive inference. Therefore, several others measures have been developed to
examine the problem in question. The principal importance is communication.
Therefore the effectiveness of advertisement depends upon how effectively the ad
has communicated the message. Hence, measures like recreation, ad recall tests
have been developed to study, the effectiveness, How there are not many studies
carried out to study the effectiveness of ads of our TV with this backdrop, a
modest attempt is made to study the effectiveness of ads of colour TV.
 Conceptualization
The trails & tribulation of marketer begin as they set out to conceptualize the two
key terms of advertisement measurement viz. effectiveness & measurement. A liberal use
of such familiar terms as productivity, performance, ability, efficiency & impact has
further confounded the confusion. Reddin’s (1970) description of effectiveness comes
very handy in this context. Acc. To him, effectiveness means doing things rightly,
producing creative solutions, optimizing resources allocation & utilization & obtaining
results.

An effective advertising evolution:-

• Provides measurements, which are relevant to the objective of the advertising.

• Requires agreement about how the results be used in advance of each specific
test.

• Provides multiple measurements, because single measurements are generally

inadequate to assess the performance of an ad.

• Is based on a model of human response to communicate the reception of

stimulus, the comprehension of the stimulus, and the response to the stimulus.

• Allows For consideration of whether the advertising stimulus should be

exposed more than once.

• Recognizes that the more finished a piece of copy is, the more soundly it can
be evaluated and requires, as a minimum, that alternatives execution be tested
in the same degree of finish.

• Provides controls to avoid the biasing effect of sample definition.

• Demonstration reliability and validity empirically.

Pre Testing Techniques:-

Pre-testing advertising effectiveness has been both applauded in marketing world

for its early warning signals & assailed that pre testing may become indistpensable in
many decision situation especially relating to new product introduction or to a complete
overhauling of media strategy.
There of two types:-
a) Pre testing prints ads.
b) Pre testing broadcast ads.

Pre testing print ads:-

There are some popular Techniques used by researchers to pre testprint ads.

Order of Merit test:-

In seeks to obtain a ranking given by the potential prospects to the test
advertisement. The test hopes to have a consensus ultimately, about the best and ad even
through the advertisement with the heighest ranking may turn out to be the best among
the worst ones.

Paired companies:-
It attempts a one to one comparison between the test ads. The technique is easier
to use than the order of merit method.

Mock magazines:-
It is a variation of portfolio method & used a real magazines, introduces a test ads
in a magazines to n experimental group to read. The magazine is like any normal one.
The control group will read the same magazines but untempered by the introduction of
test ads. A recall test would be conducted to determine effectiveness of test ads.

Direct Questioning:-

It seeks fuller answers to such questions as to what do test advertisements way.

What could be the purpose of advertising etc? it seeks meaningful reactions to test ads.

Pre testing Broadcast Ads”-

There is a no. of other methods are used to pre-test ratio & television
commercials. These are as follows:-

a) home projection test :-

It often called the ‘Block Box’, method uses a small movie projector
(16mm) run test commercials as respondent’s home. The respondents are questioned
before and after the exposure, on ad related questioned before the exposure, on ad-related
questions to measure change by the exposure. It provides an early evaluation strength &
weakness of ad.
 b) Test:-

It is conducted as a natural shopping environment to measure actual

consumer behavior. The test may be setup inside a shopping center, its parking lot, rear
positions of the shopping complexes etc. the potential customers are invited to the way
and interviewing. Then invitation also promises discount coupons but without thing been
shown the test ads. The differences in redemption rate of coupons but without having
been shown the test ads.

c) Test:-

It is the most popular method for evaluating test ads. The test offers
capturing audience collected for entertainment. Here, respondents selected on a random
may be sent a questionnaire to fill

There is some technique which is used in post testing. There are as

follows:-

Aided Recall:-

In this interviewer contact the target audience with the print ads or the TV
commercial on a tape & question them about their recongnition, readership & viewership.
Those interviewers may hail from the ad-agency concerned or to an independent
marketing research organization. The test provide answers to the questions on current ads
& comparative readability with the post ads etc. either on the same brand.

Unaided Recall

The unaided Recall test aims to measure penetration of an advertisement.

They are regards as more demanding than the aided recall. They make viewer/readers
recall what advertisement they had seen & what they remembered.

Attitude Test:-

These test measures the change in attitude of potential buyer towards a

company, its products, or brand as a result of its advertising. It is assumed that purchases
are often preceded by a favorable attitude. The tests can be done in conjunction with
recall/recognition tests & may use direct questioning or same indirect story build-up.

Enquiry Test:-

Many advertisements particularly those of consumer durable, electronic

products & business or more details. The number of enquiries received as a result will
Indicate effectiveness of the advertisements. It would enable the advertisers to develop
the cost of enquiry & help doing its sales force decisions.

Sales Tests:-

It is done by recording pre & post advertisement sales levels.

o Post sales test is the most common route where sales figures are obtained
for a specific market, product & brand before & after advertisement. The
difference is attributable to advertisement impact.
o Mails order selling is relevant to direct marketers who attach buying
before coupons in their ads.
o Consumer purchase Tests are conducted by Multi product companies like
Hindustan Lever by independent or client sponsored research
organization. They run consumer panels.
o Inventory Audit is testing the dealers stock before & after the
advertisement. The inventory audit test is more beneficial to consumer
product manufactures.
 Operationalization of Concept

In the operationization, we measure the effectiveness of advertising of colour TV

brands we measure it from the following ways:-

a) Measuring the Communication effect.

b) Measuring the sales effect.

a) Measuring the Communication effect:-

Measuring the communication effect tells us whether an

advertisement is communication well or not. There are three methods:-

Direct Rating:-
In direct rating the advertiser exposes consumer panel to
alternatives ads & ask them to rate the ads. There direct ratings indicate how well
the advertisement has got attention & how they effect consumers. Although an
important measures of an ad actual impact, a high rating indicates a potentially
more effective ad.

Portfolio Test:-
In portfolio test, consumers view or listen to a portfolio of
advertisement, taking a much time as they need. They then are asked to recall all
the ads & their contents, aided or unaided by the interviewer. Their recall levels
indicate the ability of an ad to stand out & its message to be understood and
remembered.

Laboratory Test:-
Laboratory tests use equipment to measures consumer
physiological reactors to an advertisement – heart-beat, blood pressure, pupil
dilation, perspiration. This test measures an ads effectiveness & attention getting
or intentions.

There are two popular methods of presenting ads:-

1- Recall Test:-

Using recall test, the advertiser asks people who have been exposed to
magazines or televisions programs to recall every thing they can about the
advertisements and products they saw. Recall scores indicate the ad’s power to be
noticed & retained.
 2- Recognition Test:-

In recognition tests, the researches ask the readers of a given issue to

say, magazine to point out what they recognize as having seen before.
Recognition scores can be used to assess the ad’s impact on in different market
segments 7 to compare company’s ad with the competitor ads.

3- Inquiry Tests:-

It is controlled experiment conduct in the field. In this test the number of

consumer inquiries produced by an advertising copy or the medium is considered as the
measure of its communication effectiveness. The number of inquiries is the test of
effectiveness which can be produced is the test of effectiveness which can be produced
only when the advertising copy or the medium succeeds in attracting & retaining reader
or viewer attention. To encourage inquiries, the advertises offers to send something.

B) Measuring the Sales Effect:-

The sales effect of advertising is often harder to measure than the

communication effect. Sales are affected by many factory besides advertising such as
product features, price & availability.

One way to measure the sales effect of advertising is to compare

the sales with the advertising expenditure. Another way is through experiments.
 Focus of the study
Now these days’ companies spend a lot of money to advertise their products. So,it
become necessary for the companies to find out the effectiveness of the advertisements.
A lot of money is spent to money is spent to make an advertisement but if this is not
effective and not able to gain attention of the customer than all the money goes vain. So
our focus of the study is that how much advertisement is effective and to measure the
awareness of CTVs brand. We also interested to find out the impact of various ads on
customer buying decision. When we talked about CTVs then we interested to find out
which was brand advertisement influence the customer. And to find out the future
advertising needs of the company.

Due to serve competition in market effective advertisement will position

the brand in customer mind more effectively. To know this impact through this study.
 OBJECTIVES

The specific objectives of the study were:-

1- To ascertain the viewer’s awareness, attitudes and preferences towards the advertising.

2- To find out the level of acceptance of different message given in the

advertisement.

3- To find out the most suitable media for generating awareness of

advertising.

4- Above all to find its communicative effectiveness.

5- To offer appropriate suggestions for improving the effectiveness of

advertisements.
 Limitations
o The scope of this research had to be limited due to
shortage of time available with the researcher for
carrying out the study.

o Sample size is not appropriate and its is so small that it is

not enough for a good research.

o Limited area problem.

o Some questionnaires were not sending returned by the

respondents.

o Some of questions were remain vacant by respondents

with out providing answer.

o Although all attempts were made to make this objective

study, biasness on the part of the respondents might have
resulted in some subjectiveness.

o Resource limitations.

Hypothesis

Ho: We assure that the colour TV brand advertisement for all the TV brands
are equally effective.
 Universe or Survey Population
From a statistical point of view, the team ‘Universe’ refers to the total of the items
or units in any field of inquiry, where the team population refers to the total of items
about which information is desired. The attributers that are the object of study are
referred to as characteristics and the units possessing them are called as elementary units.
The aggregate of such unit is generally described as population. Thus, all units in any
field of inquiry constitute universe and all elementary units constitute population.

Quite often, we do not find any differences between population & universe, and
as such the two teams are taken as interchangeable. However, a researcher must
necessarily define these teams precisely.

The population or universe can be finite or infinite. The population is said to be

finite if its consists of a fixed number of elements so that it is possible to enumerate it in
its totality. For instance, the population of a city, the number of workers in a factory is
example of finite populations. The symbol ‘N’ is generally used to indicate how many
elements or items are there in case of a finite population. An infinite population is that
population in which it is theoretically impossible to observe all the elements.

The survey population is that in which we want to conduct one survey.

We take finite universe & conduct our survey in Delhi.

 Research Methodology
Research methodology is a systematic way to solve research problems & it can be
said to have four companies research Design, sample design, data collection problems 7
the method of data Analysis.

Research Design

A research design is a framework for a study and it used as a guide in collection

& analyzing the data. It helps the researcher to conduct the study & ensure the
economical procedures are employed and probing is relevant to the problem. Depending
upon the objective of study. These are three research design available to a researcher.

A) Exploratory Research:

It emphasizes the discovery of the ideas & insights. It helps in breaking

the broader, vague problems into smaller & precise sub problems. This approach is called
as “Fact finding approach” and is used when the researcher has no idea about the
problem.

B) Descriptive Research:-

It is a ‘fact providing approach’ It is guided by an initial hypothesis set up

by exploratory research & before going for descriptive research. Researcher has to have
some preliminary knowledge about the problem.

C) Causal or Experimental Research:-

This research is concerned with determining the cause & effect

relationship. These studies are made under experimental conditions because experiments
are best suited for determining cause & effect relationship.

The present study is fact finding one and, therefore, is exploratory. This is
because before going for the study, the researcher had no idea as to what could be the
retailer response to various questions.

Sample size

To get a proper prospective on market & analyze its response, the sample size was
restricted to 100 customers.
The schedule was designed by structured questionnaire & these are given to
customers/respondents for fill up these questionnaires in Delhi. The sample size was kept
short due to constraints like time & misguiding response & money.
Data Collection:-

The test of data collection begins after a research problem has been defined &
research design/plan checked out. Data collection is must for each & every study.
Without collecting data we cannot draw inferences or conclusion. These are two types of
data, such as primary & secondary. These are various methods of data collection such as
observations, interview, questionnaire, projective techniques, scaling techniques, case
study etc. I find the observations & questionnaire method more suitable for my study.

I prepared a questionnaire consisting of 1 questions regarding various aspect of

advertising. The questions included both open ended & close ended questions. The
questions were set in such a way as to get the correct feedback from the customer. The
questionnaire was set in English and I set translated into Hindi for those does not
understand English.

Types of Data:-

These are two sorts of data available:-

a) Primary Data
b) Secondary Data

a) Primary Data :-

Primary data may be described as those data that have been

observed & recorded by the researcher for the first time. And to collect such data
researcher has prepared structured questionnaire and on the basis of this questionnaire &
on the basis of observation.

B) Secondary Data:-

Secondary data was collected from a number of sources, these

included literature provided by the company, data collected from various sources such as
journals, magazines & newspapers. In present study, history & present scenario of
advertising effectiveness on CTV brands are taken from secondary sources.

Methods of Data Collections:-

These are two methods of data collection, which we used, in the present study.

a) Observational method
b) Questionnaire method
 a) Observational method:-

Informal observation is a common means of collecting relevant marketing

information. The list of common, day to day observations that provide useful information
to the marketing managers is visually endless. However casual observation is likely to
produce excessive measurement error. In present study, this method is not so much for
data collection.

b) Questionnaire Method:-

If one wants to know why people purchase a particular brand the natural
procedure is to ask them. So, questionnaire method is very effective & widely used for
the purpose of data collection.

In present study, this method was used. A written questionnaire was

designed which was structured.

Advantages of Questionnaire Method:-

1) The greater advantage of the questionnaire method’s its versatility. Almost every
problem can be approached by questioning. Many problem can be studied only
by questioning process.
2) In this method questioning is usually faster & cheaper than observing.
Interviewers have more control over their ideas gathering activities.

Decisions about Question Sequence:

1) The firstly asked questions should be simple, objective & interesting. If the
respondent fined the questions uninterested in the initial stapes them may refuse
to answer the remaining questions.
2) The questions in questionnaire should be arranged in logical manner.
3) Questionnaire should not be too long other wise these may be chance of declining
quality near the end of the long questionnaire.
 Analysis of Data
Analysis of data is the very important part of any research project
because the saw data, which we collected from the respondents is containing
the information in such a way as it proved to be helpful in decision making
& findings some conclusions. So the collected data is tabulated & present to
make it self-explanatory. A liberal use of charts & diagrams has been made
to present data & to make present study more interesting 7 easily
understandable. It is well said that “ A picture is worth a thousand words”.
These findings are based on primary data & secondary data & data is
collected by conducting market survey of customers at Delhi.
 Classification and Tabulation of Data

The response to the question has to be different. Clearly, if a large

number of different kinds of responses are to be organized such that they can
be used in answering the research questions or drawing generalizations, they
must be grouped into limited numbers of classes. The responses to various
questions are classified and tabulated here. The classified tables are been
showed in the next page to draw inferences about the advertising
effectiveness.
 Identified Independent & Dependent variables
A concept which can take on different valves is called a variable. As such the
concepts like weight, height, income are all examples of variables.
If one variable depend upon on is a consequence of the other variable, it is termed
as a dependent variable is termed as an independent variable. For instance, if we say that
height depend upon age, then height is dependent variable & age and sex are independent
variables. Similarly, ready-made films & lectures are example of independent variable,
whereas behavioral changes, occurring as a result of the environmental manipulation, are
example of dependent variables.

In the present study the brand awareness is depend on quality of advertisement.

Dependent Variable: - Brand Awareness, Purchasing Decision.

Independent Variable: - Quality of Advertisement.

COMPANIES
PROFILE
 BPL
Certificate, German BZT Certification, British BIS certification etc. In the context it is
noteworthy that in 1994, Germany’s leading trade magazine “video” sated BPL color TV
s among the best in the world.
BPL is the first company to launch “FAST” offering ultra sophisticated facilities
fir design, tolling & robotics is one of Asia’s best giving BPL total controls over product
design; up gradation and mars production.
Given its constant drive toward excellence, it is hardly surprising that BPL
commanded mammoth 30% share of the colour TV market in India during the year 1995-
96. Also over 57% of the colour TV exported from India during 1997-98 was production
by BPL, Germany, UK, West Asia & South Africa were its export markets. Moreover
BPL has nearly 4000 dealers, 500 services centers and over 50 offices spread across300
towns & cities in India.
For better servicing, the group has implemented a web-based system which will
integrate its major dealer with the company. This system would help the company in
achieving better service level & increased efficiency.
 SAMSUNG
Samsung a Korean giant, launched its products in India in Dec.95. Starting
with North, it has spread its wings throughout India witching such a short span of
time. Samsung electronic plans to be among the top three electronic makers in
India by the year 2000. Samsung India Electronic Ltd. (SIEL) is investing about
seven percent of its turnover in R&D every year to provide the quality of
international standards. Samsung is engaged in the exports of CTVs in big way.

Samsung electronic introduced ‘Inver Mask’ technology in India in 1996,

winning its claim to be one of the three companies of the world to introduce the
technology, the other two being Thomson & Philips. Samsung has introduced the
73cm (29 inch) world best Ultra Bio-vision model which has the world’s flat
screen, ensiromg do strprtomp free imaging even at the edges.

As for CTVs, The Company introduced a law level basis colour television
model developed especially for the rural area market. Part, however classify that
‘Basic’ does not imply any compromise on quality but only a reduction in the
features offered.

SIEL is the first company of launch in India a Unique TV with an inbuilt 4

head VCR, Samsung’s selling points are :-

(a) Quality of the products

(b) Value for money

(c) After Sale Services

 LG
LG electronic (formally known as Lucky Gold star), a US $ 73 billion (Rs.
284700 crore) South Korean giant hit the Indian market with a spectrum
comprising 10 models of CTVs, 8 models of refrigerator & 3 models of washing
machines during May 1997, through its wholly owned subsidiary LG Electronic
India Pvt. Ltd. (LEGIL), Since then LGEIL has created new landmarks in the
history of consumer electronics and appliances industry. In the Direction of Mr.
K.R.Kim (Managing Director) LGEIL is

 The First Company to go nation wide in 4 months.

 The First Company to achieve a turnover of Rs. 100 crore in a
time span of 200 days.

LG has a contract with BESTAVISION ELECTRONICS for producing TVs when it first
came in India with the name as Gold star LGEIL is the first multinational focus on rural
marketing in a big way. It has launched a new CTV range with the “Sampooran”. To
reach the rural markets LGEIL has started video on wheels mobile vans. Which travel to
farthest destination to create awareness? It is also organizing road shows, exhibitions and
participating in smaller local meals. LG has achieved 4th rank in CTV sales in such a
short span of time. This achievement is solely because of the corporate philosophy of
LGEIL “We put people first”.

LG has launched and screen display CTV in four Indian Language

that is in Hindi, Marathi Tamil & Bengali priced Rs. 16300 in April 2000.
 MIRC ELECTONIC LTD.
MIRC electronic was started in 1981 in Mumbai by Mr. G.L.Mirchandani. the Co.
was setup in New Delhi in 1975 as a sister concern of Monica Electronic Ltd.,
which manufactured electronic watches & push button dialers. Capitalizing on the
Asian games product & the combination of clever advertising & purposeful
marketing soon ensured that Onida became a household name.

At Onida, we believe that yesterday’s level of perception is today’s

industry average. With this continue to provide the most technologically
advanced, state of the art product to our ever customer. The transaction of MIRC
electronics from a family-owned business to a profession company has largely
been made possible by the Mirchandani & Mr. Vijay Masukhani.

The vision is to be the number one brand in our chosen fields & to be
recognized as one or prestigious organization evoking of ownership by offering
unmatched quality products, innovations, speed, flexibility & empowered
Employees.

Mainly the world class quality of Onida has enabled the company to make
a breakthrough on the export front. Onida is a leading in Gulf Market & also
exports its models in Africa, Bangladesh, Sri-Lanka & Nepal.
 PHILIPS INDIA LTD.
Philips India Ltd. Is a 51% subsidiary of global electronics giant Philips & leading
player in the consumer electronics and electrical lighting segment. It also makes domestic
appliances, Electronic Components, telecom equipment’s etc.

Television from about 35% of the Rs. 110 billion Indian consumer durable
market. This segment grew at 30% in the last 2 years but slowed down in the current year
showing a growth of just 5-10%, owing to the increasing competition and a low range of
products in the 14” & 20”/21” segment. The company’s market share fell from 11% in
Feb. 96 to just 5-5% in Feb.99.

Benefit of Restructing to follow:-

 The company has roped in Mgt. Consultant Pwe and Booze & Allen for a major
restructing exercise of its Indian operation in order to turn its consumer’s
electronics division & help it show sustained growth.

 The benefit of restructing will fruity in the next 2 years. Same of these measures
have been implemented & others are in the process of implementation. The
impact of these measures is expected to be felt commencing in the early part of
2005.
 VIDEOCON
In 1985, through a technical tie-up with Toshiba Corporation of Japan, Videocon
International Limited launched India’s first world class colour television. Today,
Videocon group is India’s leading manufactures of consumer electronic products. The
managing director of Videocon innovation, Videocon has kept pace with the changing
face of technology, constantly upgrading its manufacturing, facilities to incorporate
advanced technology & high standards of quality into its product range right across the
spectrum.

Videocon is the first Indian company to introduce picture turbo sound, surround
sound, larger screen sizes the full flat square tube, the mighty Bazooka woofer & the
budget line collection & affordable yet high quality range of colour TVs for the price
conscious consumer.

Videocon has a network of over 4000 dealers, backed by over so services centers
all over India, equipped with the latest testing machinery & manned by skilled
technicians. In the audio segment, VIL stands third with a 12% market share. Videocon is
the first India companies its colour TV to Europe. Apart from making products for
Toshiba & Sansui for their global markets, Videocon is also setting up manufacturing &
marketing facilities in the Middle East, Europe, and Indonesia & South Africa.

But now these days company faces the danger of losing market share. The
company however continues to have the advantages of low priced products but has to
work on the after sales services provided.

Videocon International Ltd. Lost market leadership in CTVs in Feb. 99. Videocon
international Ltd. Has lost its leadership position to BPL in Feb.99 on the back of some
intense competition form MNCS like Aiwa,LG,Samsung etc. the likely scenario will see
a drop in margins.

The mgt. has diversified into unrelated business. The Dhoot’s have been
venturing into a lot of unrelated area viz. real estate, power etc. which will increase the
risk profile of the stock.
OBJECTIVEWISE
ANALYSIS
A. The first question put to the respondents was “ which TV brands you Posses?
The response are classified :-

a. BPL 40%
b. SAMSUNG 09%
c. ONIDA 11%
d. LG 30%
e. OTHERS 10%
 10% LG
40% SAMSUNG
ONIDA
30%
BPL
11% 9% OTHERS
2. The Second question put to the respondents was “ who influenced you to buy the the
TV of that specific brand” this question was directed to find out who influence the
customer to purchase a CTV of specific brand”. The response of this question are given.

A. family member 30%

B. Friends 20%
C. Relative 08%
D. Advertisement 28%
E. Dealer 06%
F. Celebrity endorsing 08%

6% Family Membe
30% Friends
28%
Relative
Advertisement
8% 20% Dealer
 3. The next question put to the respondent was “ On which media you have
seen the ad ?”. this question was directed to find out that on which media
the ad is seen by the customer. The response of this question are:-

A. TV 38%
B. Radio 02%
C. Magazine 28%
D. Newspaper 14%
E. Hoardings 12%
F. Any other 06%

TV
12% 6%
Radio
38%
Magazine
14% Newspaper
Hoardings
28% 2%
Any other
 4. The next question to the respondents was “ which is the most popular and
effective media for TV brands ad according to you,” This was directed to
find out that which is the most effective media for TV brand ad. The
response to this question is classified as.

A. TV 59%
B. Radio 01%
C. Magazine 23%
D. Newspaper 07%
E. Hoardings 07%
F. Any other 03%

0.7
59%
0.6
No. of respondent(%)

0.5

0.4

0.3 23%
0.2

0.1 7% 7%
1% 3%
0
1 2 3 4 5 6 7
Media
5. The next question put to the respondents are “ What is your perception about the
advertisement of following brands with respect tok following factors”. This was infended
to find out that what the respondent think about the factor of an ad. Of the colour Tv
brands. The response are classified as :-

Factor/ Brand Samsung% LG% Onida% BPL%

Ad copy is informative 08 40 12 40
Ad copy is attractive 05 40 20 35
Ad copy is convincing 04 53 08 40
Ad copy facilitates better 14 36 10 40
Evaluation
Product is cheaper 10 30 10 50
Product is superior 13 35 17 45
Product is Worth buying 13 32 20 42
Ad. Copy has emotional appeal 05 33 20 42
Clarity of central Message 08 42 10 40
G
SA
S
E

L
M

A
E
AL

P P
R

A
T

G
N

BPL
E

YI
C

N
BU
O

ONIDA
TI

R
H
O

O
T

LG
M

I
R
R
E

E
O

P
W

Samsung
U

E
S

TI AP
N
E
O
H
C
A
U

G
L

N
A
V

I
C
E

N
R

E
V
E

VE IV
N
ET

TI CT
B

A
R
TT
A

0 10 20 30 40 50 60
M
R
FO
IN

No. of Respondents(%)
6 The next question put to the respondents was According to you what is the ad.
Attribute used by the following color TV brand advertisement”. This was
intended to find out that what type of attribute see by the customer and what type
of attribute is present in the CTV brand advertisement. The response are as
follows:-

Samsung BPL Onida LG

Likeable 10 30 20 24
Attractive 16 24 30 30
Interesting 18 22 25 35
Believable 15 35 20 30
Understandable 10 32 23 30
Relevant 15 25 20 40
Inoffensive 30 17 30 23

Ino ffe ns ive

R elevan t
BPL
U n ders tand ab le O N ID A
B e lie vable LG
S a m s un g
Inte re s tin g

A TTR A C TIV E

Lik e ab le

0 10 20 30 40 50
N o . o f R e sp o n d e n t(%)
7. The next question put to the respondents was “ What features you prefer in the
colour TV brands for purchase “. This was intended to find out that what type of
features is watched by the customer when they go for purchasing a colour TV
brand. The responses are as follows:-

Price 24
Quality 32
Technology 18
/Features
Promotional 16
Schemes
Design/Model 06
Specific Dealer 04

35
30
25
No. of respondent

20
15
10
5
0
ice

r
n
ty

ale
sig
gy

al
a li
Pr

on

De
olo

De
Qu

oti
hn

om
tec

Pr

F e a tu re s
 MACRO
ANALYSIS
 Macro Analysis
In the macro analysis, we include the all environment factors means we take all
factors which affect the company sale and how much market share the companies have.
What is their growth rate, what is their market sales, what is their net profit and how
much company spend on advertising to complete in the market.

1. Market Share

Companies Market Share (%) Companies Market Share

Feb.2005 Feb. 2005
BPL 22 Videocon 17
Onida 13 LG 11
Aiwa 10 Samsung 09
Philips 5.5 Sony 03
Sharp 03 Akai 02
Thomson 02 Others 2.5

25
Market share(%) Feb. 2007

20

15

10

0
LG
BPL

Aiwa

Akai
Sharp
Onida

Sony
Thomson

Others
Philips

Videocon

Samsung

Com pa nie s
 2. Spend on Advertising

Company Rs. In crore

BPL 60.15
Onida 22.37
LG 23.21
Samsung 18.44
Philips 40.62
Videocon 103.41

120

100

80
Rs. in crores

60

40

20

0
LG
a
L

on
ng
id
BP

il ip

oc
On

su

Ph

de
m
Sa

Vi

Com pa nie s

Findings:-

Videocon spend very large amount on Advertising and BPL is on second no. in
spending money on advertising.
 3. Market Sale :-

Company in crores

BPL 20.15
Onida 08.05
Samsung 08.5
LG 10.2
Philips 14.45

25

20

15
Sale in crore

10

0
BPL onida s am s ung LG P hilips
Co m p a n ie s

Findings:

Market sale of BPL is very high then other TV brands.

 4. Net Profit

Company in crore

BPL 1.07
Onida 0.46
Samsung 0.32
LG 0.82
Philips 0.67

1.2

0.8
Net profit

0.6

0.4

0.2

0
BPL on ida s a m s un g LG P hilip s
C o m p a n ie s

Findings:-

Net Profit of BPL is high.

 5. Growth Rate

Company in crore

BPL 4.5
Onida 03
Samsung 2.4
LG 04
Philips 1.34

5
4.5
4
3.5
Growth Rate

3
2.5
2
1.5
1
0.5
0
a

ng

LG
L

s
id

ilip
BP

su
on

Ph
m
sa

Companies

Findings:-

The growth rate of BPL is 4.5% yearly and it is on first rank. LG got second rank
with 4% growth rank.
CONCLUSION
 Conclusion

 1-Mostly people prefer the BPL TV. They are mainly influenced by the
advertisement and family member to purchase TV.

 2- Majority of the customer easily recall the BPL’s as. In the array of FMCG
brands. BPL is the only durable brands which come up in the top 20. Mostly
people recall the Amitabh Bacchan in the BPL ad. A very few people recall
Samsung ad.

 Majority of customer see the ad which they recall on TV. After that educated
person recall the ad from magazines.

 TV is the good effective mode of communication to provide the information

regarding the brands as well as features of the CTV brands.

 Quality plays a bib role in the mind of customer. 32% people first see the quality
but price is also considered with the quality. The television which have large
features is also comes in the low range that’s why it also play a effective role why
they want to purchase TV.

 The perception about the BPL TV advertisement i.e. the factors like informative,
attractive, convincing product of cheaper, superior are good. After the BPL brand
the LG is on 2nd number. After that Onida and Samsung is there.

 In my survey I find that many people want that the company should stress more
long performance on the TV in the advertisements.

 Majority of the respondents suggest that the model name of the brands is not
easily recognizable so their model name should be such that it can make effective
image in the minds of customer e.g. Onida give their model name “BLACK”. So
it can be easily remembrable.

 Majority of people say that in the CTVs brands the BPL’s ad are likeable,
attractive, interesting, believable, relevant and less inoffensive. Because people
recall the ad of Amitabh Bacchan. So they gave the BPL ad as Rank 1. LG,
Onida and Samsung is on Second, Third and Fourth position respectively.
 Hypothesis Testing
We assume that the advertising effectiveness of each
CTV brand is equal. But this is no true. After collecting and
analysis of data we find that the advertising effectiveness of
different CTV brand is different BPL and LG have more
advertising effectiveness. So our hypothesis is disapproved.

H 1:- So there is a significant difference between

the different CTV brands advertisement effectiveness.
Different CTV brand have different advertising
effectiveness.
SUGGESTION
AND
RECOMMENDATIONS
 Recommendations
We have seen that the CTV advertisements are very effective. These
advertisements BPL, LG, Onida have unique advertisements and people remember it very
well. But there are certain areas, where should emphasize to make the advertisement
more effective:-

 We should give more advertisement on TV because television are

the most effective medium of advertising.

 The companies should try to make a logo for the brand and it must
seen in the advertisement so that it is easily recognized by the
people.

 You must give full information about technology, price and quality
in advertisement so that people understand about the product.

 Some people even recommended to beautiful girls as a model so

that people attract as the other products manufactures are doing.

 The advertisement should convey a message which is easy to

understand.

 They should be stress on long performance in the advertisements,

as people pay attention to it.

 They should make their ad. Copy more informative, attractive and
convincing.

 The ad. Must be relevant and interesting so that people like it.

 The advertisement should not be offensive.

 Majority of the respondents suggest that the model name of the

brands are not easily recognizable so their model name should be
such that it can make effective image in the mind of customers.
e.g. BPL gave their model name as XS bass and Onida gave their
name BLACK so it can be easily rememberable.

 Now these days, the use of internet is also increase. So that the ad
should be give on internet so people see the ad when they are
working on internet and know about CTV brands.
ANNEXURE
 Questionnaire
Name: ………………. Age: …………………..

Gender: ……………… Occupation: …………..

Income: …………….... Marital Status: …………

Q1. Which TV Brand you posses?

(a) BPL (b) Samsung

(c) Onida (d) LG

(e) Any other (specify)

Q2. Who influence you to buy the TV of that specify brand?

(a) Family member (b) Friends

(c) Relative (d) Advertisement

(e) Dealer (f ) Celebrity endorsing

Q3. Give the brief description of the Colour TV brand ad. That you can recall for the
following brands:-

(a) BPL ………………………………………………………….

(b) Samsung ………………………………………………………….
(c) Onida ………………………………………………………….
(d) LG ………………………………………………………….

NOTE:- Those who were not able to recall the content were shown the printed version
of ad. As clue and were ask to answer the following questions.

Q4. On which media you have seen ad. Described in Q3?

(a) TV (b) Radio

(c) Magazine (d) News Papers

(e) Hoardings (f) Any Others

Q5. Which is the most popular and effective media for TV brand ad. According to you

(a) TV (b) Radio

(c) Magazine (d) News Papers

(e) Hoarding (f) Any Others

Q6. What is your perception about the advertisement of following Brands w.r.t following
Factors:

Samsung LG Onida BPL

Factors/Brand Yes/No Yes/ No Yes/ No Yes / No
Ad. Copy is informative
Ad. Copy is attractive
Ad. Copy is convincing
Ad. Copy is facilitates Better
evaluation
Product is cheaper
Product is Superior
Product is Worth Buying
Ad. Copy has emotional appeal
Clarity of Central Message

Q7. According to you what are the ad attribute used by the following Colour TV brand
Advertisement? (Tick the appropriate attribute)

Samsung LG Onida BPL

Likeable
Attractive
Interesting
Believable
Understandable
Relevant
Quality of Information
quantity of Information
Inoffensive
Q8. What features you prefer in the colour TV Brand for Purchase (Give order of
priority)

(a) Price (b) Quality

(c) Technology/Features (d) Promotional scheme

(e) Design/Model (f) Specific Dealer

(g) Any other (specify)…………………..

Q9. Give Suggestion for effective advertisement of colour TV brand (if any)
…………………………………………………………………………
…………………………………………………………………………
….……………………………………………………………………..

(Signature)
 Bibliography

Marketing Management - Philip Kotler

Advertising Theory and Practise - Charles Sandage

Advertising management - Man Mohan

Advertising Excellence - Court Land L.Bovee

John V.Thill
George P.Dovel
Morian Burk Wood.

Research Methdology - C.R.Kothari

Magazines - Business Today

Advertising and Marketing
Business India

Journals - The Indian

Journals of Commerce

Newspapers - Business Line

The Time of India

Websites - www.marketingsherpa.com
www.indianindustry.com
Other sites through google