BUSN20019: Management Project Proposal: Soft Drink Advertisement

This report presents a project proposal focusing on the impact of market advertisement on the sales and profit of Coca-Cola and Pepsi, two leading beverage companies. The research aims to understand how price performance and advertising strategies influence sales. It includes a literature review exploring factors affecting price performance, advertising impact, and the relationship between advertisement and sales. The methodology section outlines the research philosophy, design, approach, and strategies, including the use of a descriptive research design and a deductive approach for data analysis. The report details both primary and secondary data collection methods, emphasizing the use of secondary data from books, journals, and websites. The qualitative data analysis approach is chosen to analyze the data. A Gantt chart provides a schedule, and publicly available secondary data sources are listed, alongside a feasibility assessment. The project adheres to the BUSN20019 assessment requirements, including a preliminary literature review, research questions, and a research plan. The report includes references to scholarly articles and aims to provide a comprehensive analysis of advertisement effectiveness.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note

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Table of Contents
Aim and research question.........................................................................................................2
Literature review........................................................................................................................2
Conceptual framework...........................................................................................................2
Factors affecting price performance.......................................................................................3
Factors affecting advertisement..............................................................................................4
Impact of advertisement on sales and profit of an organisation.............................................5
Organisation of the project.........................................................................................................5
Methodologies used................................................................................................................5
Overview of the data collection methods...............................................................................6
Method of data analysis..........................................................................................................7
Gantt chart schedule...............................................................................................................8
Publicly available secondary data..........................................................................................8
Feasibility of the project.............................................................................................................8
Reference..................................................................................................................................10

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Price performance Advertisement
Product cost
Utility and demand
Marketing methods
Annual sales
Marketing objectives
Target market
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Aim and research question
The aim of the research is to understand the effectiveness market advertisement on
sales and profit of the soft drinks and the impact it has on two of the giant beverage
companies in the world, Coca Cola and Pepsi. Along with this price, performance of the
company along with its impact on the market is taken into consideration. In this regard,
research questions can be made that can help in addressing the aim. The research question of
the company includes:
 What are the impacts of price performance on sale?
 What are the impacts of advertisement on sale?
Literature review
Conceptual framework

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Factors affecting price performance
Product cost: The most important factor that is considered for the price performance
is the product that is sold in the market. The cost of the product needs to comply with the
quality sold by the organisations. According to Cooper, Gulen and Rau (2016) the prices of a
commodity are determined based on the total cost of the commodity and it is the duty of
every manager to ensure that the prices are reduced so that competitive advantage can be
gained in the market. This can ensure that the product developed is at a low cost and
therefore, the satisfaction of the customer be maintained. In this regard, it can be said that the
product cost plays a valuable role in determining the prices of a product and likewise provide
scope for increasing the opportunity for sales and profit (Ţiţan, 2015).
Utility and demand: The demand of a consumer over a product is more only if the
quality is maintained and the prices are reasonable. However, as stated by Ahi and Searcy
(2015) during the elasticity of the product prices changes can be seen in the quantity of
demand. In this regard, it can be said that the inelasticity of the product demand does not
affect the prices of a product in a significant manner. Hence, Govindan et al. (2015) is of the
opinion that with the change in demand, the utility of the products can be understood based
mainly on the ability to charge higher profits and thus increase the opportunity for
development in the business.
Marketing method: The various marketing methods used, such as the distribution
system as well as the promotional methods are taken into consideration for determining the
prices. If the marketing method such as promotion yields high results, then the service of the
customers can have a positive impact. At the same time, as stated by Kratz and Strasser
(2015) the price of the product may increase since the high value promotion method used
requires gaining back the expenditure of the finance. In this regard, it can be said that the

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marketing method usually consist of a high expense owing to the promotional method used as
well as the packaging of the materials.
Factors affecting advertisement
Annual Sales: Annual sales are always taken into consideration while preparing a
budget based on the advertisements. As stated by Kong et al. (2019) this is done to
understand the actual allowance that an entrepreneur possess and based on it the budget
related to the development of advertisements is kept. For example, advertisement via social
media using celebrities for promotion can cost more than advertising via newspaper. Thus,
this can be considered as an important factor that helps in the development of advertisement
for an organisation.
Marketing objectives: The marketing objectives may have a negative impact on the
budget of an organisation mainly because the objectives are provided more priority. As stated
by Rad, Khoshalhan and Glock (2018) advertising is not considered in the objective simply
because the advertisements are done for ensuring promotion of a product that is newly
developed or established in the market. The objectives help in defining the strategies and
provide an analysis about the manner in which advertising can be made. Therefore, it can be
said that the marketing objectives is one of the important factors based on which the
advertisement of a product is made. According to Patel and Basil (2017), a smart approach
that can be used is for maintaining a budget objective.
Target market: The target market is considered as the potential buyer of the product.
Business may get a fresh start based on the target market and the advertisement of the
business helps in its development in the market. Therefore, it can be said that the
development of the target market provides for the purpose of advertisement of the products in
the market (Toubiana et al., 2016). The target market needs to be based on the advertisement

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of the products so that the intended customers can continue to get the latest update on the
products.
Impact of advertisement on sales and profit of an organisation
The analysis shows that advertisement has a huge impact on the sales and profit of an
organisation. This is because based on the advertisement made by the organisations;
customers indulge in purchasing a product and likewise ensure that profitability is met.
Wicherts (2016) is of the opinion that the sales of a product depend upon the impact that an
advertisement have and thus, it can be said that the advertisements are usually the area of
focus for the organisations. However, Patel and Basil (2017) pointed out that the
advertisements need to be within the budget so that the sale of the product based on the
advertisement yield profit for the organisations.
Organisation of the project
Methodologies used
The research methods that can be considered for the development of the research
includes identifying the philosophy, approach as well as the design. The research philosophy
that is taken into consideration is the method that is used for the collection of the data. It
consists of the positivism, reality and the interpretivism. For this case, the research
philosophy that is used is the positive philosophy.
The research design consists of understanding the pattern that is taken in order to
conduct the research. Research design consists of three types that include the descriptive,
explanatory and the exploratory research designs. The analysis helps in gaining a broad
overview of the research. For this research, the application of a descriptive research is
undertaken for the development of the research study

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The research approach consists of the inductive and deductive approach. The research
approach is applied in order to validate the research questions that are associated with aim.
The application can help in lining the theories with the literature so that a proper analysis of
the topic can be made. In this regard, the data analysis that is taken into consideration is the
deductive approach. This is because the deductive approach can help in linking the works of
the scholars in the literature review with the updated knowledge.
The research strategies consist of identifying the methods that can be used in
analysing the data. These strategies include the case study analysis, interview method and
survey questionnaire and thematic analysis. For the research the analysis is made on the
thematic analysis so that theme based on the topic can be identified and presented that can
help in the development of the research.
Overview of the data collection methods
The data collection method usually consists of two types, one is the primary collection
and the other is the secondary analysis of the data. In the primary collection of data, the
information that is collected is gathered from first hand sources. This information is based on
the responses from the target population. The target population that is gathered for the
research need to provide responses either by survey method or by an interview method. The
application of the survey method is done to gather responses that are brief. A close-ended
questionnaire is considered for gathering the responses. At the same time, the interview
method consists of open-ended questions in which descriptive responses are provided for
research.
The secondary data analysis consists of gathering information from already existing
sources. The works of the scholars are identified and the data is gathered from sources that
consist of information received from the analysis of books, journals and websites. The

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secondary data analysis helps in theorising the concepts and makes links based on the
development of the concepts. Therefore, it can be said that the two forms of data collection
methods are effective in analysing the data. For this research, the analysis of the secondary
data is taken into consideration. Books, peer reviewed journals and the official websites are
considered for the research.
Method of data analysis
The method of data analysis can be either quantitative approach or qualitative
approach. During the qualitative data analysis, it can be seen that the data collection and the
depiction of the analysis is made by considering the transcript of the research. On the other
hand, the quantitative data analysis helps in providing an emphasis on the quantity of the
data. The data that has been collected need to be analysed by using appropriate data analysis
technique so that effective result can be developed.
The data that has been collected can be analysed by using numerical value and at the
same time by using statistical tools such as SPSS. The use of excel sheets are made in order
to analyse the statistics. The use of bar graphs, charts and pie diagrams are taken into
consideration for depicting the results. The application of the scientific and statistical
approach can help in the development of the accurate data and ensure that the data analysis
undertaken can be effective for the meeting the requirements of the data. In this research, the
data collection method that is used is the qualitative analysis. The qualitative analysis can
help in the effective analysis of the data using the secondary analysis method.

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Gantt chart schedule
Effectiveness market
advertisement on sales
and profit of Pepsi and
Coca Cola
Preparation of the topic Collecting and compiling
the relevant literature
Collecting the relevant
articles from abroad
Preparing the literature
review
Investigate the
documents
Completion of the thesis
Publicly available secondary data
https://www.forbes.com/sites/greatspeculations/2018/10/03/beverage-growth-impresses-for-
pepsico-but-margin-drop-disappoints/#1afa812559e0
https://www.business-standard.com/article/companies/coke-pepsi-hike-soft-drink-prices-by-20-
110020200197_1.html
https://www.marketingweek.com/2017/03/31/coca-cola-admits-30-ads-not-meeting-standard/
Feasibility of the project
Feasibility of the project can be presented based on the analysis of the secondary
sources that are used to conduct the research. It is essential that the secondary data sources
can help in ensuring the authenticity of the data by considering the works of the authors that
are associated with the research. The work is done by seeking information about the

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companies from the official websites and conducting research works on the scholars. This can
help the researcher to gain relevant information about the two concepts and ensure that a
positive relation between the two concepts is developed.

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Reference
Ahi, P., & Searcy, C. (2015). An analysis of metrics used to measure performance in green
and sustainable supply chains. Journal of Cleaner Production, 86, 360-377.
Cooper, M. J., Gulen, H., & Rau, P. R. (2016). Performance for pay? The relation between
CEO incentive compensation and future stock price performance. The Relation
Between CEO Incentive Compensation and Future Stock Price Performance
(November 1, 2016).
Govindan, K., Rajendran, S., Sarkis, J., & Murugesan, P. (2015). Multi criteria decision
making approaches for green supplier evaluation and selection: a literature
review. Journal of Cleaner Production, 98, 66-83.
Kong, S., Huang, Z., Scott, N., Zhang, Z. A., & Shen, Z. (2019). Web advertisement
effectiveness evaluation: Attention and memory. Journal of Vacation
Marketing, 25(1), 130-146.
Kratz, J. E., & Strasser, C. (2015). Researcher perspectives on publication and peer review of
data. PLoS One, 10(2), e0117619.
Patel, P., & Basil, M. (2017, May). The Effects of Celebrity Attractiveness and Identification
on Advertising Interest. In Academy of Marketing Science Annual Conference (pp.
579-589). Springer, Cham.
Rad, M. A., Khoshalhan, F., & Glock, C. H. (2018). Optimal production and distribution
policies for a two-stage supply chain with imperfect items and price-and
advertisement-sensitive demand: A note. Applied Mathematical Modelling, 57, 625-
632.

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Ţiţan, A. G. (2015). The efficient market hypothesis: Review of specialized literature and
empirical research. Procedia Economics and Finance, 32, 442-449.
Toubiana, V., Narayanan, A., Boneh, D., Nissenbaum, H., & Barocas, S. (2016, March).
Adnostic: Privacy preserving targeted advertising. In Proceedings Network and
Distributed System Symposium.
Wicherts, J. M. (2016). Peer review quality and transparency of the peer-review process in
open access and subscription journals. PloS one, 11(1), e0147913.