Advertisements of Coca-Cola and Pepsi and Its Influence on Consumers - Case Study Example

Consumer Behaviour Executive summary This study deals with advertisements of Coca Cola and Pepsi and its influence on consumers. These two large beverage companies create many innovative ads which helps them to increase their sales and revenue. This study also focuses on the different theories which are used to analyse consumer behaviour. Both of these companies do a detail analysis of the behaviour of their targeted customers. By this analysis these companies are able to create effective advertisements which help them to create a strong position in competitive market. In this case study effectiveness of advertisement is highlighted. Influences of different model of consumer behaviour are also explained in details. At the end of this case study recommendation is provided for making those advertisements better. Therefore this case study shows advertisement and its impact on consumer behaviour in a detailed way. Contents Executive summary 2 Contents 3 Coca Cola Advertisement 5 Pepsi Advertisement 6 Consumer Behaviour Models 7 Marketing and Other stimuli 8 Nicosia Model: 9 Effectiveness of the advertisements 9 Using marketing and other stimuli model 10 Using Nicosia Model 11 Limitation of models 12 Limitations of Nicosia model 12 Limitations of the buyer black box model 13 Limitation of the marketing and other stimuli model 14 Recommendations for your chosen adverts 14 Appendices 20 Coca Cola Advertisement Coca Cola is one of the largest companies of the world. It mainly deals non alcoholic beverages. The company attracts it customers by showing various innovative advertisements. With its advertisement campaign the brand communicate different messages to its customers. Some of the best marketing campaigns are done by this brand. The company spent a huge amount on its advertisements. In this advertisement the company focuses on the happiness that people will experience at the time of Christmas. The target audience of this advertisement is family, individual people, children etc. Attention: The beginning and the things shown in the advertisements attracts the customers to notice the entire advertisement. This Christmas advertisement of Coca Cola highlight on festive season and holiday mood. The appearance of Christmas truck of Coca Cola shows that the company is preparing something great for celebrating Christmas and enjoying holidays. Interest: After getting the attention of the viewers Coca Cola tries to maintain the interest of its customers and viewers in its products. For this reason the company has shown many interesting and innovating things in this advertisement. Coca Cola has designed this ad in a very innovative way which helps its customers to relate themselves with the things shown in the advertisement. Desire: Coca Cola aims to build desire among the viewers and customers to purchase its products. By this advertisement, Coca Cola portraits it brand image in a very unique way. It focuses on the happiness of people. This ad creates a desire for its customers to purchase Coke product for celebrating the festive season (Churchill, 2009). Action: By showing innovative and attractive advertisement the main purpose of the company is to persuade people to buy its product. This is the most important stage of advertisement. By this advertisement Coca Cola highlights Christmas event and used the concept of Santa Claus. This will help the company to increase its sales volume at the time of Christmas. Pepsi Advertisement Pepsi is one of the giant players in non alcoholic beverage company of the world. The company use many catchy phase in its advertisements. For a long time the company is using very strong strategies in building innovating advertisement. The company is able to attract a huge number of customers and increase their loyalty towards brand by showing various attractive and innovative ads. Pepsi has made many significant changes in its advertisements in past few years. In this advertisement the company has tried many innovating things to attract people. Attention: Attracting customers through advertisement is the main objective of conducting ad campaign. By this advertisement Pepsi tried to attract more customers. The London street advertisement of Pepsi was designed in a very attracting way. The people became surprised after experiencing different events occurred in this advertisement. This helped the company to attract more people to watch this. As a result the company was able to get connected with many people (Fill, Hughes and Francesco, 2013). Interest: After watching the advertisement people becomes more interested towards the brand and its products. In this advertisement Pepsi used some innovative strategies and technologies which have made this advertisement much more interesting. This helps the company to establish strong interest among the people to purchase its product. This also helps the company to increase customer loyalty. (Russell, 2009). Desire: Pepsi desire is to increase its sales by surprising people through its innovative advertisements. This advertisement of Pepsi created a memorable experience to the customers. It helps the company to attract more customers and increase their desire to purchase its product. This ad of Pepsi creates a desire among the people to know more about the company and its product (Mcfarlin and Sweeney, 2008). Action: By producing this kind of innovative advertisement Pepsi influences its customers for purchasing its different products (Fill, 2013). London street advertisement of Pepsi created a strong impact on customers which influenced them to purchase more products of Pepsi. Consumer Behaviour Models Consumer behaviour means the details study of group, individual etc by organization for selling different products and services. Detail study of consumer behaviour helps the company to know better about its targeted customers and operating market. Both Coca Cola and Pepsi pay much attention in studying consumer behaviour. This helps these companies to acquire more customers and to satisfy the existing customers by their product (Dahlen, 2009). Advertisement plays a vital role in influencing behaviour of people. So these companies put a huge effort in making its ad campaigns or advertisement successful. Both of these companies build innovative and unique ads which delivery an important message. It helps the companies to establish a strong connection with its customers (Wintzer, 2007). There are various models of consumer behaviour. Some of these models are very useful which explain adverts of Coca Cola and Pepsi, discussed in this case study. Marketing and Other stimuli This model describes that consumers are influenced by different stimulus. Mainly there are two kinds of stimuli. Marketers develop one kind of stimuli by using different elements of marketing mix. The marketer produces its product in a very attractive way to people which influences them to purchase the product (Tehrani, 2008). Both Coca Cola AND Pepsi have implemented many strategies to highlight different attributes and features associated with the products. According to the location the companies have designed its advertisements for attracting more customers. Another kind of stimuli is established by environment. This kind of stimuli can be technical, political, economical and cultural. Both the products of Coca Cola and Pepsi are quite economic. Therefore customers are able to purchase these products easily. Pepsi has used advanced technology in its advertisement which acts as a stimulus to attract more customers (Pride and Ferrell, 2014). On the other hand, Coca Cola has highlighted the cultural side of its customers in its advert to increase its sales. Both of these stimuli have a huge contribution to influence consumer behaviour. Buyer’s Black Box: This model describes that stimuli presented by environment and marketers influence the customer. After the stimuli are generated the model of buyer’s black box plays a significant role in analysing consumer behaviour (Joshi, 2005). This model is divided into two main parts. One part deals with characteristics of buyer and another parts deal with decision process of buyers. The characteristics of buyers involve different factors like social, cultural, psychological, personal etc. These factors help the customers to relate the product with their purchasing needs. The decision making process of the buyers deal with evaluating the products and its alternatives before purchasing it. Coca Cola and Pepsi have designed these two advertisements in such a way that different characteristics of buyers are highlighted (Franzen and Moriarty, 2008). It helps these companies to influence the decision making process of its buyers. Nicosia Model: This model of consumer behaviour deals with the relationship of targeted customers with the company. By showing various advertisements the companies try to build strong connection with customers. Companies deliver messages through these advertisements. These messages influence the customers and their purchasing decisions. According to this model both companies and customers influence each other (Carpenter and Hamilton, 2008). Attitude of the customers towards the product is based on the message the company delivers. Strength of the message influences the customers. They evaluate the brand based on the things shown in advertisement and its message. Company put a huge effort in motivating its customers to purchase its product. As a result of this people get convinced to purchase the product from that specific company (Cheverton, 2005). Coca Cola and Pepsi have used various innovative techniques in its advertisements which strongly motivate people to purchase their products. Effectiveness of the advertisements These theories of consumer behaviour create a strong impact on designing advertisement. The analysis of consumer behaviour benefited Coca Cola and Pepsi in understanding its customers. As a result they are able to make extra ordinary advertisement showing their products. All of the advertisements of Coca Cola and Pepsi deliver some message to its targeted customers (Batey, 2012). The two advertisements of these two companies which are discussed on this case study have created a strong impact on the company and helped them to increase their sales. Using marketing and other stimuli model By using this model both Coca Cola and Pepsi are able to improve the quality of their advertisements. These companies have incorporated various things in their advertisements which influence the purchasing behaviour of people (Assael, 2005). In the above mentioned advertisement Coca Cola has promoted in such a way which highlight the festive season and the happiness related to it. By using this model the company is able to focus on the values related to the festival and the place where Christmas is celebrated on a large scale. Coca Cola effectively used cultural issue for attracting customers by this advertisement. This model is also very effective for Pepsi in creating advertisement. In the above discussed ad of Pepsi the company was able to create its brand value in the mind of its customers. The company gained more publicity by showing this innovative advertisement. By analysis consumer behaviour the company is able to develop advertisement which will affect its customers. Environmental and technological stimuli played a vital role in attracting customers through this ad. Therefore two kinds of stimulus have effective role in creating advertisement and attracting customers (Baker and Hart, 2008). Both of these advertisements are able to surprise the targeted customers and influence them to purchase Coke and Pepsi’s product. Using Buyer’s black box model By making innovative and creative advertisement, both Coca Cola and Pepsi have been able to influence different stimulus of people. These have played a vital role in changing the purchasing behaviour of people. Both of these companies have used Buyer’s black box model for making their ad campaign successful. The main aim and objectives of these companies are to increase its sales and to create a strong brand image in the mind of their customers. The advertisements of Pepsi and Coca Cola are very unique (Ambler, 2005). These helped the company to establish their strong position in the competitive market. In the advertisement Coca Cola has highlighted social, cultural, psychological and personal issue related to Christmas. This helped the company to show that it is very concerned about the happiness of people that is why the company wants to celebrate festival with people. As a result the company is able to establish a strong bond with its customers. It help the organization to increase loyalty of its targeted customers. Therefore the advertisement of Coca Cola played a vital role in influencing the decision making process of the customer and motivating them to purchase its products (Mintzberg, 2006). The innovative and surprising advertisement of Pepsi also effects the decision making process of the customers. By using buyer’s black box model the company was able to change the perception of its targeted customers. This advertisement facilitated them to learn new things about Pepsi. The company used advanced technology to create this ad. The ad is quite different from traditional cold drink ad. Therefore mu trying some innovate approach the company was able to establish a strong brand image in consumer’s’ mind. Perception of people regarding Pespi’s ad changed after experiencing this advertisement. Both of these advertisements helped the company to understand more about the customers and their buying behaviour (Simerson, 2011). By these advertisement campaigns the companies became aware of the facts and factors which influence the people to purchase its product or the things of advertisement which help to create strong brand image. Using Nicosia Model Effectiveness of advertisement lies in establishing strong bonding with its customers. Companies develop its advertisement by focusing various things which will surprise and influence its customers (Ulwick, 2005). Every companies use some catchy line which helps them to create its position in customer’s mind. These catchy lines are explained in details in the advertisements. Therefore it help the companies to produces a clear idea about its product and its associated features. In the above explained advertisement of Coca Cola, the company used the message of spreading happiness. The festival Christmas is highlighted by this company in its ad. Social and cultural side of people are focused in this ad video. As a result the people are able to relate them with this ad. It helps the company to establish a strong connection with its potential customers (Porter, 2013). Nicosia model is also used by Pepsi in its above discussed ad. The advertisement of Pepsi was very innovative. It helped top entertain and surprise people. By this way the company became successful in connecting with people. Through this advertisement the company is able to communicate its message to its customers by providing them maximum benefit through its different products. This innovative advertisement of Pepsi helped the company to increase its sales of different products. People enjoyed the advertisement of Pepsi (Pringle, 2008). This played an important role in increasing the customer base of this company. Limitation of models Limitations of Nicosia model The main disadvantages or the limitation of application of the Nicosia model is that it is fully based on the concept of advertisement and it does not provide detail and proper explanation of the various internal factors or perspective which generally affects the attitude and personality of the consumers and it does not focuses on the reaction and the attitude of the customer towards the product which includes the likes and the dislike of the consumer towards the particular product for example the customer can be easily convinced by the message or the information that is delivered by the firm or the company through its advertisement which may not be real and it can be virtual but it may be such product that the consumer will not buy because it is against its belief or custom but the customer gets convinced due to the interesting message that is delivered by the company through its advertisement and therefore the model is required to include the internal factors such as the belief, faith , likes and dislikes of the customer towards the product which will affect or influence the decision making process of the consumers and the main limitation or the drawback in the application of this model is that it is not realistic in nature and it comprises of various assumptions , constraints and boundaries and the model has been criticized on the ground or on the basis of the motivation, attitude and the experience of the consumer that may not occur or take place in the proper sequence or order and the factors in this model is not clearly described or explained and this model does not deals with the internal factors that is directly related with the customers (Kotler and Armstrong, 2006). In this case both Pepsi and coca cola has focussed on their advertisement concept and has delivered the message to the consumers without considering the internal factors of the consumers that will affect the decision making process of the consumers (Loudon and Bitta, 2002). Limitations of the buyer black box model The main drawback or the limitation in analyzing the black box model of the buyer in analyzing the consumer decision or buying making process is that the black box model deals with the psychology of the human being which is a very difficult and critical task since it is mammoth task in order to understand the psyche of the consumers as it is very difficult for the marketer in establishing the relationship between the stimulus and response of the customer as the black box model includes or comprises of the stimuli of the consumer then it is affected or influenced by the decision making process of the consumer which will result in response of the customer and therefore during the decision making process it is very difficult to ascertain because the perception, values, belief of the consumer varies from individual to individual and therefore it is very difficult to ascertain and assume the preference and the perception of the consumer towards the particular brand or the product (Peter and Olson, 2005). Here also we can explain the limitation of the black box model in the context of the Pepsi and coca cola where both this product has focussed on the stimuli that is the product, price, place and promotion of the product neglecting the intermediary in the process that is the transformer which is considered as the most important aspect as this influences the decision making process of the consumer that will result in the response of the customer (Schiffman and Kanuk, 2004). Limitation of the marketing and other stimuli model The main limitation or the drawback in the application of this model is that it distinguishes the determinant of the consumer buying behaviour with the motivators therefore it may create problem or constraint in understanding the buying behaviour of the customers (Ambler, 2005) and since it includes communication channel which may create barrier in transferring adequate and proper message and there buyers decision making process is mainly guided or assisted by the communication filters which includes the perception, learning and experience of the consumers which is very difficult to determine or ascertain and therefore it often creates a problem for the marketer in determining the perception and response of the customer as the buying behaviour of the consumer is influenced by various factors therefore the constraint created in any of the step will lead to the disruption or will adversely affect the consumer decision making process. In case of Pepsi and coca cola the decision making process of the consumer is also influenced by various factors (Gelder and Woodcock, 2003). Recommendations for your chosen adverts The Christmas advertisement of Cocas Cola shows different images to make people happy because Christmas is coming. But in the whole advertisement no words are used to express the message. Therefore this only shows its effectiveness in print media or through video. As a result this advertisement of Coca Cola is not effective in radio or any other voice media. In this advertisement the company followed a narrow way to reach its customers. To increase the effectiveness of this advertisement Coca Cola must use some words in its which will help the company to follow broad way to communicate and reach its customers. The advertisement of Pepsi was very unique. It was very effective to attract a particular set of customers who were present at that place where the company had set up its innovative advertisement. The customer of Pepsi who were not present in London or not visited that particular street was unable to experience the unique advertisement of this company. Though the advertisement was unique but only few people were able to experience it. Therefore Pepsi should follow some broad communication strategy to influence more customers. Its innovative advertisement should not be limited to any particular area. It should follow some marketing strategies to show its advertisement on a large scale which will affect more people. For making both of these advertisements more effective the companies should use celebrity in their ads. People are influenced more by celebrity. Therefore if they see that their favourite celebrating is purchasing something then they will be more interested about buying such products. Therefore endorsing the product by any big celebrity will benefit these firms to influence their customers. Making the advertisement more humorous will help the company to entertain its customers. The companies should focus more on delivering strong messages by using humour. By this way the firms can improve its position in the mind of its customers. The ads of companies need to focus more on family and sub cultural issues the companies. This will help the companies to establish strong connection with its targeted customers and increase their loyalty. Customers are highly influenced by these issues. So advertisement focusing more on these matters will help to attract more customers. References Ambler, T., 2005. Building brand relationships. Financial Times Mastering Management Series, 13(4), pp. 13-56. Ambler, T., 2005. Building brand relationships. Financial Times Mastering Management Series, 13(4), pp. 13-56. Assael, H., 2005. Consumer behaviour. New Delhi: Dreamtech Press. Assael, H., 2005. Consumer behaviour. New Delhi: Dreamtech Press. Baker, M., and Hart, S., 2008. The marketing book. 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Schiffman, L.G. and Kanuk, L.L., 2004. Consumer Behavior, Eight Edition: Prentice Hall India. Simerson, B.K., 2011. Strategic planning: a practical guide to strategy formulation and execution. Canada: ABC-CLIO. Tehrani, N., 2008. Contemporary marketing mix for the digital era. USA: Author House Ulwick, A. W., 2005. Business strategy formulation: theory, process and the intellectual revolution. New York: IAP. Wintzer, E., 2007. Global competition and strategic management. Germany: GRIN Verlag. Appendices Appendix 1 https://www.youtube.com/watch?v=D3ehP6EByfw Appendix 2 https://www.youtube.com/watch?v=Go9rf9GmYpM Read More