Final Project on effects of ads on the children

Role of Child / Children on Purchase Decision Under The Influence of Advertising A Study Paper Submitted Towards the Partial Fulfillment of 3 Year BBA (H) Course Under West Bengal University of Technology Paper Submitted By: Sayantan Ojha, BBA (H) 3 rd Year (6th Sem), Roll No: 16350061015, Reg No: 163205011015 of 2006-07 Bengal Institute of Technology & Management, Santiniketan.

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Content

ACKNOWLEDGEMENT

4

OBJECTIVES OF THE STUDY

5

SCOPE

6

INTRODUCTION

7-13

METHODOLOGY

14

DATA DATA ANALYSIS

15-21 15-2 1

FINDINGS

22-25

LIMITATIONS

26

CONCLUSION

27

REFERENCE

28

APPENDIX SOME ADS. QUESTIONER

29-40 41-43















Acknowledgement

I am thankful to all the parents and children, who were patient enough to share there valued time and provided their valuable perception about the topic. I am also thankful to Prof. A. K. Baksi, Assistant Professor, Professor, Department of Management, BITM, Santiniketan, without whom this project work would not have been completed.

…………………… Signature Date:















Objectives of the Study My objectives are, 1. To ident identif ify y how how a chil child d or childr children en can can play play a vita vitall role role in influen influenci cing ng purchas purchasee decision / behavior under stimulation from advertisements. 2. How advertis advertisers ers are using using the childre children n in their adverti advertisin sing g toward towardss comply complying ing with point no.1?















For every child the development of self-esteem begins at the moment, when the children start seeking independence. Positive feed back from advertisers at this stage may help a child to make decision to consume a thing. As parents have strong emotional bonds with children and feel more responsible to provide them which they wanting. So child or children as consumer is an influence able decision maker. Today, oday, everywhere we go we see some type of advertising. A sale at the supermarket or a bil billb lboar oard d for for a radi radio o stati station on,, are are two two of the the many many form formss of adver adverti tise seme ment nt.. Curr Current ently ly,, advertisements that target children are very controversial. Markete Marketers rs choose choose childr children en because because they they can easily easily lure lure them in. Advertis Advertisers ers spent spent $105.97 billion in 1980. This number more than doubled in 2001 when it reached $230 billion (Laws, 2003). In the year 2000, the Census reported 105 million househ0olds in America, meaning advertisers spend an average of $2,190 on one household per year. Advertisers spend this much money because of television. The average child sees an estimate of more than 20,000 commercials every year - that works out to at least 55 commercials per day (Laws, 2003). Children will insist their parents purchase what they see or hear on television. In the 1960's, children had an influence on about $5 billion of their parent’s purchases. That figure increased to $50 billion in 1984 and tripled to $188 billion in 1997. James McNeal, a kids marketing expert, estimates children twelve and under will influence $500 billion of family purchases by the year 2000 (Laws, 2003). Children don't just have their parents buy their toys, but they make purchases of their own. Children's spending has roughly doubled every ten years for the past three decades, and has tripled in the 1990's. Kids ages 4 to 12 spent $2.2 billion in 1968 and $4.2 billion in 1984. By 1994, the figure climbed to $17.1 billion and by 2002, their spending exceeded $40 billion. Kids direct buying buying power is expected to exceed $51.8 billion billion by 2006 (Laws, (Laws, 2003). No matter how you look at it, advertisers choose children because they are the most easily influenced and will spend their money if they find something interesting. The use of this study paper in future is to advice the other agency, department and clients on how best to target an advertise adv ertise to effectively reach a specific audience or viewer.

















Kids are everywhere in advertising. They are being used as effective ways of grabbing adult attention. There is Videocon with Sharukh Khan and a bunch of kids and Hutch with a pug and a boy to hook the adults to the commercials. Close-up has now entered the fray with two cute tykes; Tata Steel uses children symbolically to show how their company works. Kids with celebrities like the Big B in the Hajmola ad make a still more lethal combination. US studies on the impact and influence of advertising on children show that

• An estimated $12 billion a year is now spent on advertising and marketing to children (The Kids' Market: Myths and Realities; McNeal, James; 1999) • Young Young children are not able to distinguish between commercials and TV programs. They do not recognize that commercials are trying to sell something (Television and the American Child; Comstock, George, 1991; Academic Press Inc) • In 2000, teenagers, ages 12 to 17, spent a record $155 billion (New York Times; Salamon, J. March; 2001). • In 2001, children age’s four to twelve spent an estimated $35 billion (Tapping the Three Kids' Markets. American Demographics; McNeal, James; April 1998). • In 1997, children 12 years and under, directly and indirectly, influenced the household spending of $500 billion (McNeal, 1998). • The average American child may view as many as 40,000 television commercials every year (Strasburger, (Strasburger, 2001). • Children as young as age three recognize brand logos (Fischer, 1991), with brand loyalty influence starting at age two (McNeal, 1992). • Children, who watch a lot of television, want more toys seen in advertisements and eat more advertised food than children who do d o not watch as much television (Strasburger, (Strasburger, 2002).

















• Databases Databases of child customers customers are being built from information information gathered on Internet sign-ups sign-ups and chat rooms, roo ms, from electronic toy registries at stores like Toys Toys 'R' Us, and from direct surveys. • Advertising in schools: Advertisers and marketers take advantage of severe budget shortfalls in schools to offer cash or products in return for advertising access to children. • Channel One: short news briefs are surrounded by commercials that children are forced to watch in schools. • Promotional licensing of products aimed at kids who will include media pitches, e.g., a brand of pagers will include messages from MTV. MTV. • Logos on all types of merchandise, everywhere children go. • Children’s radio networks are becoming popular. p opular. • Children’s toys are starting to carry product placements (e.g. Barbie™ dolls with Coca-Cola™ accessories). • Give-away programs include promotional merchandise aimed at children (e.g., McDonald's™ "Happy Meals"). In Britain too the numbers are startling. That is why advertising agencies such as McCaanErickson and Saatchi and Saatchi have launched separate divisions to produce advertising aimed at children. Children, teenagers and youth constitute a very important consumer segment for the market. Their consumption habits are unique and their purchase decisions are based on popular trends, brand image, use of new technology, technology, flavor of food products, and style. The market also realizes that young consumers have a propensity to consumer junk food and prefer them over traditional forms of food. This characteristic is exploited by the market by associating convenience and a brand image with junk food like colas, pizzas, and fast-food joints.

















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Advert Advertis ising ing in school schools: s: Advertis Advertisers ers and markete marketers rs take take advanta advantage ge of severe severe budget budget shortfalls in schools to offer cash or products in return for advertising access to ch ildren. Channel One: short news briefs are surrounded by commercials that children are forced to watch in schools. Promotional licensing of products aimed at kids which will include media pitches, e.g., a brand of pagers pag ers will include messages from MTV. MTV. Logos on all types of merchandise, everywhere ev erywhere children go. Children's radio networks are becoming popular. Children's toys are starting to carry product placements (e.g. Barbie™ dolls with Coca Cola™ accessories). GiveGive-aw away ay prog progra rams ms incl includ udee prom promot otio ional nal merc merchan handi dise se aime aimed d at chil childr dren en (e.g (e.g., ., McDonald's™ "Happy Meals").

As per a study stud y made by ASA School and College, Appreciated features in advertisement targeting a child •Humor •Cartoons •Slogans or songs •The presence of animals •Action or their favorite heroes •Reinforced myths •The presence of older children or an older person •A well known star or celebrity

















•Ads where the link between the images and the product is not direct or seems confused •Abstract adverts •Frightening adverts •Serious statements that remind them of school •The use of references (e.g. literary ones, unknown to them)

Catering to the Little Customers-the Kids

There are numerous numerous examples where the marketers are either innovating innovating their offerings offerings for the kids or re-positioning themselves to cater to the segment that is becoming influential in the family purchase decisions.

• Horlicks repositioned itself as a ‘pleasurable nourished for the entire family’. • ICICI has launched a special account for kids in association with cartoon network. This is to cater to the aspiration and demanding kids by catching them young. Doing this, ICICI has made a presence across the entire life cycle of a person. Along with the account, the child can now avail of a personalized debit card.

















addition to calcium carbonate and its reckless use by children who did not suffer from calcium deficiency might lead to kidney stones because of excessive intake of salts. • Raymond eyes the Rs.27, 000 crore kids wear market ma rket with ZAPP! The first store in Ahmedabad followed by another in Bandra, Mumbai. (The name ZAPP! comes from from the initials of the four cartoon characters — Zion, Ashley, Posh and Pixel — who have a different world on planet Zuto.)ZAPP! Has tied up with Warner Brothers for the ‘Superman’ brand of clothing in India. Each of the stores comes with lots of space for kids to move around and choose from. The clothes are kept in such a way that kids of any height can pick them up, so they get the feeling that they are shopping for themselves. The company wants to create an open communication channel through a website and build upon the relationship through it and the ZAPP! Club, giving each member an individual experience through special events. A membership card records preferences such as styles and colors. It also allows kids to swipe their cards to see a customized version of them on a plasma screen at the entry of every store. • Magazines such as Time, Sports Illustrated and People have all launched kid and teen editions —which boast ads for adult related products such as minivans, hotels and airlines. Times Magazine and Consumer report 2005 list of top-10kid-bribes • Nintendogs • FLY Pen top Computer • I-Dog • Zizzle lz • Pixel Chix • Shift Tricycle • PlasmaCar





































Experience Formation Health Influence

Information Collector

Convenie nce

Purchase Decision Based on cement Child’s / Children’ Influence + Personal Discretion + Societal Influence

Purchase Act

Reinfor



















MALE

27

FEMALE

23

5 TO 7

29

7 TO 10

21

GENDER

•

AGE



















Chart-3

Demographic Profile for Parents:

GENDER

AGE

MALE FEMALE

17 33

20 TO 25 25 TO 30

9 17



















Chart-5

INCOME

2000-10000

7

11000-20000

35

21000-45000

8





















1. Do you watch TV?

Chart-6 Chart-7

Analysis of Questions for Children:

YES NO

50 0



















Chart-10

4. How many ads. can you recall?

<5 5 TO 10 > 10

17 19 14



















Analysis of Question for Parents:

1. Do you allow your children to watch TV?

YES NO

50 0



















5. Does your baby pursue you to purchase by getting influence by advertisements?

FRE MOD INFRE

13 17 20



















Findings 9. Do you think now a day the children are more aware than you, about a product?

YES NO

50 (100%) 0 (0%)





















With the above statistics we identify that 26% children pursue their p arents about games, FMCG, education tools, 34% about dress and 40% about insurance and luxury product.

6. How often do you buy products under influence from

FRE

19 (38%)



















8. Do parents consult with you before making a purchase decision?

FRI MOD INFRI

12 (24%) 23 (46%) 15 (30%)





































EDUCATIONAL TOOLS

278

FMCG

270

DRESS

223



















































































































































































































































Final Project on effects of ads on the children

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