MEDI-CAPS UNIVERSITY

INDORE

Project Report
On

“ A study on the effect of advertisement on brand loyalty with

reference to Colgate Palmolive India”

Submitted as Partial Fulfillment for

Degree of Master of Business Administration
To
Medi-Caps University, Indore

May, 2023

GUIDED BY – SUBMITTED BY
Prof. Nikita Rathore Sweety Chadhokar

MS21MS501434
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DECLARATION

This is to certify that the dissertation entitled “ A study on the effect of

advertisement on brand loyalty with reference to Colgate Palmolive India” is
a bonafide work done by me Ms. Sweety Chadhokar MS21MS501434
under the supervision of Prof. NIKITA RATHORE in partial fulfillment for
the degree of Master of Business Administration by Medi-Caps University,
Indore.

Date (Signed)

Name : Sweety Chadhokar

Place Enrollment no .MS21MS501434

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CERTIFICATE OF SUPERVISOR

This to certify that Ms. Sweety Chadhokar MS21MS501434 has executed the
dissertation entitled A study on the effect of advertisement on brand loyalty with
reference to Colgate Palmolive India under my supervision and the report submitted
therewith is the result of work done under my supervision.

Name of the Supervisor

NIKITA RATHORE
Designation:
Professor
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ACKNOWLEDGEMENT

I am grateful to my Guide Prof. Nikita Rathore of Medi-Caps University,

Department of Management, Indore for his/her precious guidance throughout
my dissertation work. He/She has devoted his/her valuable time and
motivated me at every step towards completing this dissertation. The study
would not have been possible without his/her generous guidance.

I am deeply indebted to Ankur Saxena, Dean Management, Medi-Caps

University, Indore for his/her continuous support and blessings. His/Her
support has rendered me great help towards this dissertation work.

I also express my sincere gratitude to my family members, friends and

respondents for extended support throughout the dissertation work.
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TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1–6

CHAPTER 2 REVIEW OF LITERATURE 8 – 11

CHAPTER 3 INDUSTRY AND COMPANY 13-18

PROFILE

CHAPTER 4 DATA ANALYSIS AND 19-38

INTERPRETATION

CHAPTER 5 FINDINGS, SUGGESTIONS 40 – 43

& CONCLUSION

BIBLIOGRAPHY

ANNEXURE
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LIST OF TABLES
TABLE TITLE PAGE NO:
NO:

4.1 Table showing the influence of advertisement on 23

purchase decision.

4.2 Table showing the influence of Advertisements on 24

new product purchase.

4.3 Table showing the purchase motive of the consumers. 25

4.4 Table showing loyalty of the consumers for Colgate 26

Products.

4.5 Table showing the effect of promotional scheme on 27

brand loyalty

4.6 Table showing the effect of celebrity endorsement on 28

purchase

4.7 Table showing the effect of celebrity in brand 29

recognition

4.8 Table showing the effect of celebrity endorsement on 30

brand loyalty

4.9 Table showing the toothpaste preference of the 31

consumer

4.10 Table showing the effect of Colgate advertisment on 32

purchase

4.11 Table showing Advertisements and brand awareness 33

4.12 Table showing the motives of the consumers for 34

Colgate purchase
4.13 Table showing the effect of Price Fluctuations on 35
Brand loyalty

4.14 Table showing the brand loyalty of Colgate 36

consumers

4.15 Table showing the willingness of a consumer to 37

purchase Colgate products when it is not available in
the shop.
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4.16 Table showing the effect of advertisements on brand 38

awareness

4.17 Table showing the effect of advertisements on brand 39

loyalty

4.18 Table showing the relationship between the effect of 40

advertisement on brand loyalty and effect of
advertisement on brand awareness.

LIST OF CHARTS
CHARTS TITLE PAGE NO:
NO:
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4.1 Chart showing the influence of advertisement on 23

purchase decision.

4.2 Chart showing the influence of Advertisements on 24

new product purchase.

4.3 Chart showing the purchase motive of the consumers. 25

4.4 Chart showing loyalty of the consumers for Colgate 26

Products.

4.5 Chart showing the effect of promotional scheme on 27

brand loyalty

4.6 Chart showing the effect of celebrity endorsement on 28

purchase

4.7 Chart showing the effect of celebrity in brand 29

recognition

4.8 Chart showing the effect of celebrity endorsement on 30

brand loyalty

4.9 Chart showing the toothpaste preference of the 31

consumer

4.10 Chart showing the effect of Colgate advertisment on 32

purchase

4.11 Chart showing Advertisements and brand awareness 33

4.12 Chart showing the motives of the consumers for 34

Colgate purchase
4.13 Chart showing the effect of Price Fluctuations on 35
Brand loyalty

4.14 Chart showing the brand loyalty of Colgate 36

consumers

4.15 Chart showing the willingness of a consumer to 37

purchase Colgate products when it is not available in
the shop.

4.16 Chart showing the effect of advertisements on brand 38

awareness
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4.17 Chart showing the effect of advertisements on brand 39

loyalty
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CHAPTER 1
INTRODUCTION

1.1 Introduction

According to W.J. Stanton “Advertising consists of all the activities involved in

presenting to a group a non-personal, oral or visual, openly sponsored message
regarding a product or service, this message, called an advertisement is
disseminated through one or more media and is paid for by the identified
sponsor”. Advertisement is one of the essential tools used by companies in the
present scenario to catch the consumers attention. There are many tools for
promoting a product but advertisement is considered to be the oldest form of
promotion.

For a company to be successful, it should have high sales and in order to boost
the sales we can use various marketing techniques. Price, place, promotion and
product are considered to be the 4 P’s of marketing mix. Among these,
advertisement is one of the most popular tool for promoting a product to its
consumers. Advertising aims to reach those consumers who are willing to buy
the company’s products or services and attract them into buying those products.

Advertisement is a paid form of non-personal presentation and promotion of

ideas, goods or services by an identified sponsor. It is a form of communication
used by the company to communicate about their product to its consumers.
Advertising helps in creating awareness which helps to build preference for that
product over its competitors. Consumers should feel like purchasing the
product after watching the advertisements and should prefer this product over
the others. This will lead to sales and repeated sales which results in brand
loyalty.
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The information and media in the advertisements will affect the minds of the
consumers and persuade them to buy the same. This helps to increase the sales
of the company. If the consumers continue to buy this product this results in
brand loyalty.
Brand loyalty is a pattern of consumer behaviour through which consumers
tend to get committed to a specific brand or product and make repeat purchases
over time. Brand loyalty is when a customer continues to purchase the same
product, not because its the only option, but because they trust and prefer this
product over the others. Brand loyalty is the tendency of customers to purchase
the product repeatedly. It results in such a situation where even when the price
increases, the consumers continue to purchase it.

1.2 Statement of the problem

This study is undertaken to understand the effect of advertisement on consumer

brand loyalty. This project is conducted to understand to what extent
advertisement has an impact on brand loyalty as well as brand awareness. It
also aims to identify whether specific celebrity endorsements create an impact
on consumers brand loyalty.

1.3 Scope of the study

The study is conducted to analyse whether there is any impact of advertisements on
consumer brand loyalty in reference to the users of Colgate Palmolive India in
Christ college. The project is conducted to identify the effect that advertising
has on consumer brand loyalty and to analyse the relationship between
advertisement and consumer brand awareness. This study also aims to
understand the impact of celebrities in an advertisement on consumer brand
loyalty.

1.4 Significance of the study

Advertisement is one of the oldest and most popular tool of promoting a

product. It helps to create awareness of the product to its consumers.
Advertisements catch the attention of the consumers which influences them to
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purchase it. If the consumer is satisfied with the product, then he shall purchase
this product repeatedly which will result in brand loyalty. As the brand loyalty
increases, the sales of a company shall increase. This study attempts to
understand how consumers are influenced by advertisement. It analysis
whether a consumer purchase a product after watching an advertisement and do
they continue to purchase the product repeatedly. This helps to understand to
what extend advertisement affects the brand loyalty. This also helps to
understand how advertisement and brand loyalty affects the sales of the
company.

1.5 Objective of the study

The following are the main objectives of the study

1. To analyse the effect of advertisement on consumers brand loyalty.

2. To analyse the impact of advertisement on brand awareness
3. To study the effect of celebrities in consumer brand loyalty.

1.6 Hypothesis of the study

The following are the hypothesis for the study conducted

1. There is a relationship between advertisement and consumers brand

loyalty
2. There is a significant relationship between advertising and brand
awareness.

1.7 Limitations of the study

The study is subject to the following limitations. They are mentioned below

1. Due to time constraint of 6 weeks, a detailed study is not possible.

2. The study is conducted through questionnaires, so all the answers
received from the respondents are assumed to be accurate. Any error
or bias from the respondents will affect the validity of this report.
3. The sample size of 50 is relatively small.
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1.8 Research design

1.8.1 Nature of study

This project is descriptive in nature.

1.8.2 Nature of data

The data collected for this project is both primary and secondary. A survey is
conducted among various consumers using Colgate toothpaste and their results
were analysed. Various published articles, reports etc are also referenced to
make this study more convincing.

1.8.3 Sources of data

The main source of primary data for the project were the surveys conducted
among the various users of Colgate toothpaste in Christ college. Their
responses are analysed for this project. To make this project more convincing,
specific secondary data like published reports, articles etc. were also used.

1.9 Sample design

1.9.1 Nature of population

Various users of Colgate toothpaste in Christ College are surveyed for this
project.

1.9.2 Sample unit

The samples are collected from users of Colgate toothpaste in Christ College.

1.9.3 Method of sampling

The sampling method used here is convenience sampling.

1.9.4 Size of sample

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The sample size selected here is 50.

1.10 Tools for analysis

Percentage analysis, correlation are the statistical tools used for this study.

CHAPTER 2
REVIEW OF LITERATURE
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2.1 Review Of Literature

A literature review is a survey of scholarly sources on a specific topic. It
provides an overview of current knowledge, allowing you to identify relevant
theories, methods, and gaps in the existing research. To write a literature
review, we have to find various relevant publications (like books and journal
articles) analyze them and explaining what we understood from them. We can
say that the literature review is a professional source of information on a
specific topic.

A useful literature review doesn’t just summarize sources – it analyses,

synthesizes, and critically evaluates to give a clear picture of the state of
knowledge on the subject. Usually, we write a literature review to analyze a
part of a report through summary, classification, and evaluation of past research
studies, reviews of literature, and theoretical articles. A literature review is a
descriptive, analytic summary of the existing material relating to a particular
topic or area of study.

We can define a conceptual framework as a specific exploration of an aspect of

the theoretical framework and is usually used to arrive at a hypothesis. A
conceptual framework explains the path of research and grounds it firmly in
theoretical constructs. The overall aim of the framework is to make research
findings more meaningful, acceptable to the theoretical constructs in the
research field and ensures generalizability.

An empirical literature review is a review which examines past empirical

studies to answer a particular research question. Empirical research is research
based on investigation or observation. Such research is conducted more often to
answer a specific question or to test a hypothesis. Empirical research can be
obtained from published books and in scholarly, peer-reviewed journals.
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2.2. Conceptual Framework

Advertising is a means of communication with the users of a product or service.

We need advertisements since it helps the consumers to make decisions
regarding which product and service to buy. With the help of advertisement, a
consumer gets the best possible options. In the current situations,
advertisements are everywhere and is one of the most commonly used method
of promotion.

Advertising aims to reach those consumers who are willing to pay for a
company’s products or services and attract them into buying those products.
Advertisement is a paid form of non-personal presentation and promotion of
ideas, goods or services by an identified sponsor. Advertising helps in creating
awareness which helps to build preference for that product over its competitors.

Advertising is a marketing tactic involving paying for space to promote a

product, service, or cause. The actual promotional messages are called
advertisements, or ads for short. The goal of advertising is to reach people
most likely to be willing to pay for a company’s products or services and
entice them to buy.

Traditional advertising includes newspapers, magazines, TV and radio

stations. Today, however, advertisements are placed nearly everywhere and
anywhere, including Roadside billboards, Sides of buildings, Websites,
Electronic newsletters, Print newsletters, Product packaging, Restaurant
placemats, Event bulletins, Store windows, the sides of cars and trucks,
Train walls, Sporting arenas, YouTube videos.

Brand loyalty is a pattern of consumer behaviour through which consumers

tend to get committed to a specific brand or product and make repeat purchases
over time. Brand loyalty is when a customer continues to purchase the same
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product, not because it’s the only option, but because they trust and prefer this
product over the others.
Brand loyalty is a customer purchasing products and services from the same
brand over and over rather than changing to other brands. Brand loyalty
consists of a consumer’s commitment to repurchase or continue to use one
brand. Marketers know brand loyalty is a key factor is terms of customer
retention.

Brand loyalty is always developed post purchase. To develop brand loyalty, an

organization should know their niche market, target them, support their
product, ensure easy access of their product, provide customer satisfaction,
bring constant innovation in their product and offer schemes on their product so
as to ensure that customers repeatedly purchase the product.

Colgate-Palmolive (India) Limited is India's leading provider of scientifically

proven oral care products. Colgate belongs to the fast-moving consumer goods
(FMCG) category. Oral care accounted for about 16 percent of the fast-moving
consumer goods market in India. Within the segment, Colgate occupied almost
53 percent of the market in 2017.

2.3 Empirical Review

1. Gerard J. Tellis (1988) responded that the effect of advertising is

generally nonlinear and its impact on volume purchased is mediated by
brand loyalty. Advertising seems to reinforce preference for current
brands rather than stimulate brand switching. However, features,
displays, and especially price have a stronger impact on response than
does advertising. The effect of brand loyalty dominates that of the other
variables.
2. Deepak Agrawal (1996) said that each manufacturer's brand has a loyal
segment of consumers who buy their favourite brand unless the
competing brand is offered at a much lower price by the retailer. The
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number of loyal consumers is different for the two brands and so is the
strength of their loyalty to their favourite brand. Advertising directly
affects the strength of loyalty a consumer has for the favourite brand. If
the favourite brand advertises, the loyalty strength increases but if the
rival brand advertises, it decreases.
3. Matthew Shum (2004) have examined that in differentiated product
markets where consumer preferences are characterized by brand loyalty,
an important role for advertising may be to overcome brand loyalty by
encouraging consumers to switch to less familiar brands. Advertising
reduces switching costs in this market. Furthermore, experiments
demonstrate that in markets with brand loyalty, advertising is an
attractive and effective option—relative to alternative promotional
activities, such as price discounts—of stimulating demand for a brand.
4. Ioana Chioveanu (2008) examined the influence of advertising on
brand loyalty and has noted that advertising influences consumers into
buying specific brands. Further, this leads to customer loyalty.
Advertising has the power to influence consumers into buying a brand.
There is a particular effect of advertising on brand loyalty and brand
equity in a marketing environment. Now, this effect may be low to
moderate, even high for some brands or market segments. We must
investigate these factors.
5. Gillen Dyer (2009) has said advertising is a form of communication that
constantly impinges on our daily lives, yet we are often unaware of its
more subtle form of persuasion, or of the extent to which it manipulates
our consumer culture.
6. Muhammad. MG. et, al (2013) Brand image and advertisement play a
crucial role to boost up any business performance as brand image is an
implied tool which can positively change people’s buying behaviors and
advertisement is behaving as a driving force for any business as it’s an
effective source to convey your message and stay in customer’s mind.
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CHAPTER 3

INDUSTRY PROFILE
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3.1 Industry Profile

This study has been conducted with reference to Colgate Palmolive (India).
Colgate-Palmolive (India) Limited is India's leading provider of scientifically
proven oral care products. Colgate belongs to the fast-moving consumer goods
(FMCG) category. Oral care accounted for about 16 percent of the fast-moving
consumer goods market in India. Within the segment, Colgate occupied almost
53 percent of the market in 2017.

Along with its competitors, Colgate offered a range of products in the market
containing herbal and natural ingredients, especially in toothpastes.

The range includes toothpastes, toothpowder, toothbrushes and mouthwashes

under the 'Colgate' brand, as well as a specialized range of dental therapies
under the banner of Colgate Oral Pharmaceuticals. The strong relationship and
the trust of generations of consumers and dental profession built over decades
of operations in India has made Colgate a trusted household name.

Fast-moving consumer goods (FMCG), also known as consumer-packaged

goods (CPG), are products that have maximum points of distribution across
India. FMCGs (Fast Moving Consumer Goods) are those goods and products,
which are non-durable, mass consumption products and available off the shelf.
Consumers in rural areas generally purchase goods from nearby towns or
villages. Recently, there has been a shift in consumer purchase behaviour
toward purchasing locally that has prompted the need for better local
promotional efforts to generate brand awareness in small towns.

FMCG relates to products in the market sold quickly and at a reasonably low
price. These are usually not long-lasting and are also regarded as CPG
(Packaged Goods for Consumers). Some examples of FMCG products include
meat, vegetables, dairy products, fruits, processed foods, soft drinks, cosmetics
such as soaps, deodorants, lip balm, eyeliner and everyday use products such as
 17

toilet paper and soaps, shower cap, face towel, over the counter drugs and other
consumer products.

The lifespan of FMCG goods is very short, and the products have usually been
sold or replaced within a few days, few weeks or within a few months or in a
short time. Although sales profitability is weak in FMCG products relative to
others, net profit is still higher as they are sold commercially in a large
quantity. The globalization of the internet and the development of the brand
population that has occurred over the past quarter of a century have contributed
to a large extent to demand FMCG goods. FMCG’s achievement with the
company relies largely on brand value, promotions, the distribution system and
comprehensive knowledge of customer behaviour and request.

FMCGs play a large part in the economy, as they are inelastic products that
touch every part of consumer life. Businesses that supply FMCGs to a rural
community can help provide employment opportunities and drive down the
cost of such products in those rural areas.

For instance, FMCGs represent the fourth-largest sector in the Indian economy
and generate employment for more than three million people in downstream
activities.

According to the article by the Indian Brand Equity Foundation on November

2020, Fast-moving consumer goods (FMCG) sector is India’s fourth largest
sector with household and personal care accounting for 50% of FMCG sales in
India. Growing awareness, easier access and changing lifestyles have been the
key growth drivers for the sector. The urban segment (accounts for a revenue
share of around 55%) is the largest contributor to the overall revenue generated
by the FMCG sector in India.

However, in the last few years, the FMCG market has grown at a faster pace in
rural India compared to urban India. Semi-urban and rural segments are
 18

growing at a rapid pace and FMCG products account for 50% of the total rural
spending.

Rise in rural consumption will drive the FMCG market. It contributes around
36% to the overall FMCG spending. In the third quarter of FY20 in rural India,
FMCG witnessed a double-digit growth recovery of 10.6% due to various
government initiatives (such as packaged staples and hygiene categories); high
agricultural produce, reverse migration and a lower unemployment rate.

3.2 Company Profile

3.2.1 Colgate- Palmolive (India) Ltd

Colgate Palmolive was founded in 1806. Colgate-Palmolive Limited is a $17.2

billion consumer products company that attends the needs of individuals
around the world with well-known brands that make their existence healthier
and more enjoyable. Colgate-Palmolive (India) Limited is India's leading
provider of scientifically proven oral care products. The range includes
toothpastes, toothpowder, toothbrushes and mouthwashes under the 'Colgate'
brand, as well as a specialized range of dental therapies under the banner of
Colgate Oral Pharmaceuticals.

Colgate Palmolive (India) Limited was introduced in india on the year 1937.
They offer oral care products. The Company's oral care class of products
contains toothpastes, toothbrushes, toothpowder, whitening products and mouth
freshener. The company also offers few personal care items.

In the toothpaste class, the Company offers products like Colgate Total
Charcoal Deep Clean Toothpaste, Colgate Active Salt and Neem Toothpaste
and Colgate Sensitive Pro-Relief toothpaste (CSPR) Enamel Repair and Relief
Toothpaste. In the toothbrush category, the Company offers the Colgate 360
degree Toothbrush range, including 360 degree Charcoal Gold, 360 degree
Whole Mouth Clean, 360 degree Visible White and 360 degree Floss-Tip.
3.2.2 Colgate Brands
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The Colgate toothpaste brand of India provides various types of toothpastes.

Colgate Total, Active Salt, Colgate Max infused with cooling crystals, Colgate
fresh, Colgate Ayurvedic toothpaste and Colgate Sensitive for sensitive teeth
are some of the most popular varieties in India.

3.2.3 Colgate Values

Colgate's success is related to the Company's values of Caring, Global

Teamwork and Continuous Improvement.

Caring: The Company cares about people. Colgate people, consumers,

shareholders and business associates. Colgate is dedicated to act with
compassion, integrity, honesty and high ethics in all circumstances, to
attend with respect to others and to value differences. The Company is
also dedicated to guard the global environment, to improve the societies
where Colgate people live and work, and to satisfy the government rules
and regulations.

Global Teamwork: All Colgate people are share of a global team,

committed to working alongside countries and through the world. Only
by sharing thoughts, technologies and talents can the Company attain
and endure profitable growth.

Continuous Improvement: Colgate is dedicated to getting healthier

every day in all it does, as individuals and as teams. By better
understanding consumers' and customers' expectations and continuously
working to innovate and improve products, services and processes,
Colgate will become the best.

3.2.4 Colgate USP

A unique selling point, also called a unique selling proposition, is the essence
of what makes your product or service better than competitors. The USP of
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Colgate Palmolive is “Colgate is the number 1 toothpaste brand recommended

by dentists”.

3.2.5 Colgate Slogan

“All around decay protection” is the slogan or tagline of Colgate

Palmolive.

3.2.6 Colgate strengths.

Below are the strengths in the SWOT Analysis of Colgate:

1. Colgate dental cream offers all around cavity protection, even where a
toothbrush cannot reach.
2. Its great mint taste freshens breath
3. Colgate protects against root caries
4. It cleans and makes teeth whiter and repairs early decay spots.
5. Colgate is an extremely popular brand and high brand awareness due to
advertising.
6. Sponsorship of events for dental associations have been beneficial for
the brand.

3.2.7 Colgate Weakness

Below are the weakness in the SWOT Analysis of Colgate:

1. High dependence of the company on a single category i.e. Oral

care.
2. Immense competition in the segment means limited market share
growth for Colgate.

3.2.8 Colgate Opportunities

Following are the Opportunities in Colgate SWOT Analysis:

1. Colgate has been ranked as the most trusted brand in India
 21

2. Focus on innovation and new product launches by deploying

advanced technologies
3. Growth in emerging markets – rural and semi-urban

3.2.9 Colgate threats

Following are the threats in Colgate SWOT Analysis:

1. High competition from competitive brands like Pepsodent and CloseUp.

2. Increasing commodity prices for manufacturing can affect Colgate.

3.2.10 Colgate Market Share

Oral care accounted for about 16 percent of the fast-moving consumer goods
market in India. Within the segment, Colgate occupied almost 53 percent of the
market in 2017.

3.2.11 Competitors

Below are the top Colgate competitors

Colgate competitors:

1. Close-Up

2. Pepsodent

3. Oral-B

4. Dabur Red

5. Sensodyne
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATIONS

Chapter 4- Data Analysis and Interpretation

4.1 Introduction

This chapter deals with analysis and interpretation. Data analysis is a process
used to inspect, clean, transform and remodel data with a view to reach to a
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certain conclusion for a given situation. It is a process for obtaining raw data
and converting it into information useful for decision making by users.

The data is collected using surveys. The survey was conducted using the online
platform google forms. It was given to the students of Christ College
Irinjalakuda. The sample size selected is 50. It is collected using convenience
sampling method. All the 50 respondents are selected at random.

This chapter is an attempt to analyse the impact of advertisements on consumer

brand loyalty in reference to Colgate Palmolive India. This chapter also
analyses the impact of advertisement on consumer brand awareness and the
effect of celebrity endorsement on consumer brand loyalty.

The data collected from the survey is presented using pie charts. Percentage
analysis and Karl Pearson’s co-efficient of correlation method is used to
conduct the study and to arrive into a conclusion. The result of the survey
reveals the following:

Table 4.1:

Showing the influence of advertisement on purchase decision.

Options Number of responses Percentage
Yes 31 62
No 4 8
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Maybe 15 30
Total 50 100

Figure 4.1:

Showing the influence of advertisement on purchase decision.

30%

62%

While analysing the data collected from the survey, 62% of the respondents
agree that advertisements does affect their purchase decisions. While 8% of the
respondents disagreed and 30% of the respondents are neutral.
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Table 4.2:

Showing the influence of Advertisements on new product purchase.

Options Number of responses Percentage
Yes 38 76
No 2 4
Maybe 10 20
Total 50 100

Figure 4.2:

Showing the influence of Advertisements on new product purchase.

20%
 26

76%

From the above, 76% of the respondents are influenced by advertisements to

purchase new products. While 4% of the respondents disagreed and 20% of the
respondents are neutral.

Table 4.3:

Showing the purchase motive of the consumers.

Basis Number of responses Percentage
Advertisement 19 38
Attractive packaging 6 12
Celebrity endorsement 2 4
Other 23 46
Total 50 100

Figure 4.3:

Showing the purchase motive of the consumers.

 27

46%

38%

The survey shows that 38% of the respondents are influenced by

advertisements to purchase a product. 12% of the respondents are influenced by
attractive packaging. 4% are influenced by celebrity endorsements. While the
remaining 46% purchase products due to other reasons.

Table 4.4:

Showing loyalty of the consumers for Colgate Products.

Options Number of responses Percentage
Yes 24 48
No 11 22
Maybe 15 30
Total 50 100

Figure 4.4:

Showing loyalty of the consumers for Colgate Products.

 28

30%
22%

48%

According to the survey, 48% of the respondents are loyal to the Colgate
products they buy. 22% of the respondents are not loyal to the Colgate products
they purchase, while 30% of the respondents are neutral.

Table 4.5:

Showing the effect of promotional scheme on brand loyalty

Options Number of responses Percentage
Yes 28 56
No 11 22
Maybe 11 22
 29

22%

Total 50 100

Figure 4.5:

Showing the effect of promotional scheme on brand loyalty

56%

According to the table, 56% of the respondents agree that promotional scheme
has a strong influence on their purchase decision. 22% of the respondents don’t
agree that promotional scheme has a strong influence on their purchase
decision while 22% of the respondents are neutral.

Table 4.6:

Showing the effect of celebrity endorsement on purchase

 30

Options Number of responses Percentage

Yes 14 28
No 28 56
Maybe 8 16
Total 50 100

16%
56%

Figure 4.6:

Showing the effect of celebrity endorsement on purchase

28%

Based on the table, 28% of the respondents agree that celebrity endorsement do
motivate them to purchase a product. According to 56% of the respondents,
celebrity endorsements does not affect their purchase. The remaining 16%
remain neutral.
 31

Table 4.7:

Showing the effect of celebrity in brand recognition

Options Number of responses Percentage
Yes 39 78
No 6 12
Maybe 5 10
Total 50 100

Figure 4.7:

Showing the effect of celebrity in brand recognition

78% of the respondents agree that celebrities help them to recognise the brand.
12% disagree that celebrities do not help them to recognise the brand, while the
remaining 10% are neutral.
 32

Table 4.8:

Showing the effect of celebrity endorsement on brand loyalty

24%

Options Number of responses Percentage

Yes 30 60
No 9 18
Maybe 12 24
Total 50 100

Figure 4.8:

Showing the effect of celebrity endorsement on brand loyalty

60%
 33

60% of the respondents will continue to purchase the product even if the
celebrity stops endorsing that product. 18% of the respondents will stop
purchasing it. 24% are neutral.

Table 4.9:

Showing the toothpaste preference of the consumer

Basis Number of responses Percentage
Colgate 32 64
Close up 8 16
Oral B 5 10
Dabur Red 5 10
Total 50 100

Figure 4.9:

Showing the toothpaste preference of the consumers.

16%

10%

64%
 34

When asked which toothpaste they prefer, 64% of the respondents prefer
Colgate. 16% of the respondents prefer close-up. 10% of the respondents prefer
oral-B as well as Dabur Red.

Table 4.10:

Showing the effect of Colgate advertisment on purchase

Options Number of responses Percentage
Yes 26 52
No 21 42
Maybe 3 6
Total 50 100

Figure 4.10:

Showing the effect of Colgate advertisment on purchase

42%
 35

52%

52% of the respondents have used Colgate products after coming across their
advertisement. 42% of the respondents have not purchased Colgate products
after coming across their advertisement. 6% of the respondents are neutral.

Table 4.11:

Advertisements and brand awareness

Options Number of responses Percentage
Yes 32 64
No 14 28
Maybe 4 8
Total 50 100

Figure 4.11:

Advertisements and brand awareness

 36

28%

8%

64%

64% of the respondents have seen a Colgate advertisement in the last month.
28% have not seen any Colgate in the last month. The remaining 8% are
neutral.
 37 Table
4.12:

Showing the motives of the consumers for Colgate purchase

Basis Number of responses Percentage
Availability 14 28
Quality 3 6
Price 4 8
Advertisements 29 58
Total 50 100

Figure 4.12:

Showing the motives of the consumers for Colgate purchase

Availability
Advertisement
Price
Quality
58%

28%

28% of the respondents will purchase a product based on their availability. 6%

will purchase a product based on their quality. 8% of the respondents will
purchase a product based on their price. 58% of the respondents will purchase a
product based on advertisements.
 38 Table
4.13:

Showing the effect of Price Fluctuations on Brand loyalty

Options Number of responses Percentage
Yes 13 26
No 13 26
Maybe 24 48
Total 50 100

Figure 4.13:

Showing the effect of Price Fluctuations on Brand loyalty

26% 26%

48%
 39 Table

Based on the table, 26% have agreed that they will continue to purchase
Colgate products even if the price increases, while 26% of the respondents
have disagreed. 48% are neutral.

4.14:

Showing the brand loyalty of Colgate consumers

Options Number of responses Percentage
Yes 24 48
No 12 24
Maybe 14 28
Total 50 100

Figure 4.14:

Showing the brand loyalty of Colgate consumers

 40 Table

28%
24%

48%

48% of the respondents will prefer Colgate when given a choice between
Colgate and other brands. 24% will not prefer Colgate when given a choice
between Colgate and other brands. 28% of the respondents are neutral.

4.15:

Showing the willingness of a consumer to purchase Colgate products when

it is not available in the shop.
Options Number of responses Percentage
Yes 15 30
No 19 38
Maybe 16 32
 41 Table
Total 50 100

Figure 4.15:

Showing the willingness of a consumer to purchase Colgate products when

it is not available in the shop.

Based on the survey conducted, 30% of the respondents will try to find Colgate
product somewhere else if it is not available in the shop nearby. 38% will not
try to find Colgate product somewhere else if it is not available in the shop
nearby. 32% of the respondents are neutral.
4.16:

Showing the effect of advertisements on brand awareness

Options Number of responses Percentage
Yes 44 88
No 2 4
Maybe 4 8
Total 50 100
 42 Table
Figure 4.16:

Showing the effect of advertisements on brand awareness

88%

Based on the table, 88% of the respondents agree that advertisements help to
get to know the brand better. 4% of the respondents disagree that
advertisements do not help to get to know the brand better. 8% of the
respondents disagree.

4.17:

Showing the effect of advertisements on brand loyalty

Options Number of responses Percentage
Yes 19 38
No 14 28
Maybe 17 34
Total 50 100

Figure 4.17:
 43 Table
Showing the effect of advertisements on brand loyalty

34%

28%

38%

Based on the table, 38% of the respondents agree that advertisements affect
their loyalty towards a product. 28% of the respondents disagree to this. While
the remaining 34% of the respondents are neutral.
44 Table
 45

4.18 Karl Pearson’s co-efficient of correlation

It is the most widely used method for computing correlation, it is otherwise

known as ‘Pearsonian co-efficient of correlation’.

Formulae:

Table 4.18

Showing the relationship between the effect of advertisement on brand

loyalty and effect of advertisement on brand awareness.
Options Effect of Effect of X2 Y2 XY
advertisement advertisement
on brand on brand
loyalty. awareness.
(X) (Y)
YES 19 44 361 1936 836
NO 14 2 196 4 28
MAYBE 17 4 289 16 68
TOTAL 50 50 846 1956 932

3(932)−50×50
Correlation (r) : √ 3(846 )−(50 )2 ×√ 3(1956 )− 50 2

= 0.82

Result: From the study conducted, it is analysed that there is a high

relationship between the effect of advertisement on brand loyalty and effect of
advertisement on brand awareness.
 46

CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 Findings

1. Advertisements has a significant effect on consumer brand loyalty.

2. 48% of the respondents are loyal to the products they purchase.
 47

3. 38% of the respondents have agreed that advertisements do effect

consumer brand loyalty.
4. Advertisements affect the purchase decision of majority of the
respondents.
5. Advertisements impact consumer brand awareness.
6. 88% of the respondents has agreed that advertisements have affect their
brand awareness
7. Celebrity endorsements help in brand awareness.
8. Celebrity endorsements does not have a significant effect on consumer
brand loyalty.
9. Advertisements influence most respondents to purchase new products.
10. Majority of the respondents are influenced by advertisements to
purchase Colgate products.
11. Promotional scheme has a strong influence on the purchase decision of a
consumer.
12. 64% of the respondents are Colgate consumers.
13. A majority of 52% of the respondents have purchased Colgate products
after coming across their advertisements.
14. Majority of the respondents consider advertisements as their motive for
purchasing Colgate products.
15. Most of the respondents prefer Colgate products to other brands.
16. Price fluctuations have strong influence on purchasing decisions.
17. The availability and quality of the product is also important for
consumers purchase decisions.
18. The correlation result was 0.82 which proved that there is a high
correlation between brand loyalty and brand awareness.
 48

5.2 Suggestions

• Spending more on Advertisements would have a positive impact

for the company as this will help to increase the brand awareness.
• Spending more on advertisements will also help to increase the
brand loyalty of the consumers.
• Celebrity endorsements can be given lesser expenditure as
compared to advertisements.
• Creating better promotional schemes helps to attract the consumers
attention.
• Improve the quality and availably of the products.
 49

5.3 Conclusion

The study is conducted to know about the effect of advertisement on consumers

brand loyalty. It is also conducted to analyse the impact of advertisement on
brand awareness and to study the effect of celebrities in consumer brand
loyalty.

It is crystal clear from this study that there is a significant effect of

advertisement on brand loyalty. Advertisements help to increase the brand
awareness as well as the brand loyalty of the consumers. Most of the
respondents has purchased products after coming across their advertisements
and has continued to purchase it.

Even though celebrity endorsements help to increase the brand awareness of a

company. Celebrity endorsements does not help to increase the brand loyalty of
the product. Based on the survey conducted most of the respondents purchase
products due to their availability and their advertisements and not due to
celebrity endorsements.

In a short glance, this study shows that there is a significant effect of

advertisement on brand loyalty. It also states that advertisements help to
increase the brand awareness as well as the brand loyalty of the consumers.
 50

BIBLIOGRAPHY

Books
1. Gillian Dyer, Advertising as communications, 2018
 51

Journals
1. Gerard J. Tellis (1988) Advertising Exposure, Loyalty, and Brand
Purchase: A Two-Stage Model of Choice, Volume: 25 issue: 2,
page(s): 134-144
2. Deepak Agrawal(1996) Effect of Brand Loyalty on Advertising
and Trade Promotions: A Game Theoretic Analysis with
Empirical Evidence, Vol. 15, No. 1
3. Ioana Chioveanu(2008) Advertising, brand loyalty and pricing,
Volume 64, Issue 1, September 2008, Pages 68-80
4. Matthew Shum( 2004) Does Advertising Overcome Brand
Loyalty? Evidence from the Breakfast‐Cereals Market,
Volume13, Issue2
5. Muhammad Mudasar Ghafoor, Muhammad Ehsan Malik, Hafiz
Kashif Iqbal, Qasim Ali, Hira Hunbal, Muhammad Noman and
Bilal Ahmad(2013) Impact of Brand Image and Advertisement
on Consumer Buying Behavior.

Websites
1. www.ibef.org
2. www.colgatepalmolive.com
3. www.marketing91.com
4. www.economicsdiscussion.net
 52

ANNEXURE

QUESTIONNAIRE
The Effect of Advertisement on Consumer Brand Loyalty in Reference to
Colgate Palmolive India.
1. Name:
2. Age
 20-30
 31-40
 41-50
 50 and above

3. Do advertisements influence your purchase decision?

 53

 Yes
 No
 Maybe

4. Do advertisements influence you to try out new products?

 Yes
 No
 Maybe

5. What influences you to purchase products?

 Advertisement
 Attractive packaging
 Celebrity Endorsement
 Other

6. Are you a loyal customer to the products you buy?

 Yes
 No
 Maybe

7. Will you switch your brand if you get better promotional scheme with
another brand?
 Yes
 No
 Maybe

8. Do certain celebrity endorsement in advertisement motivate you to

purchase that product?
 Yes
 No
 Maybe

9. Do you think advertisements having celebrities are more effective than

those which don't?
 Yes
 No
 Maybe

10. Does the presence of a celebrity in an advertisement help you to

recognize the brand?
 54

 Yes
 No
 Maybe

11. Will you continue to purchase that product even if that celebrity stops
endorsing it?
 Yes
 No
 Maybe

12. Which toothpaste do you purchase?

 Colgate
 Close up
 Oral- B
 Dabur Red

13. Have you purchased any Colgate products after coming across their
advertisement?
 Yes
 No
 Maybe

14. Have you seen any Colgate advertisements in the last month?
 Yes
 No
 Maybe

15. What motivates you to purchase Colgate products?

 Availably
 Quality
 Price
 Advertisement

16. Will you continue to purchase Colgate products even if the price
increases?
 Yes
 No
 Maybe
 55

17. When given a choice between Colgate and other brands, do you choose
Colgate?
 Yes
 No
 Maybe

18. If Colgate products are not available in the nearby shop, will you try to
find it somewhere else?
 Yes
 No
 Maybe

19. Do you recommend Colgate products to your friends?

 Yes
 No
 Maybe

20. Do you think the advertisements help the customers to get to know the
brand better?
 Yes
 No
 Maybe

21. Do you think advertisements affect your loyalty towards a product?

 Yes
 No
 Maybe