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IMPACT OF ADVERTISEMENT ON SALES A CASE STUDY ON LOREAL

NATASHA RAO 03 NAILA AZMAT 17

INTRODUCTION
Problem statement:
Marketing managers of LOreal want to know whether an increment in advertising expense this year lead to an increased sales volume and if it is so then what kind of advertisement the company should adopt and currently what general public perceives as good advertisement and creates a drive to purchase the products.

Objectives of Study

Scope of Study

METHODOLOGY
INEDEPENDENT VARIABLES: 1)Research and Development Expense 2)Advertising Expense 3)Total Assets 4)Account Receivables DEPENDENT VARIABLE: 1)Sales

DATA SOURCES
Primary Data

Secondary Data

HYPOTHESIS
H1a: 0 H1: =0 H3a:0 H3:=0

H2:=0 H2a:0
H4a:0 H4:=0

REGRESSION EQUATION:
Y=+1X1+2X2+3X3+4X4+e

EMPIRICAL EVIDENCE

H0: 1 = 2 = 3 = 4 = 0 HIA: 0 (At least one of the 0)

Regression Equation: Y = 1923.6 - 1.138X1 + 0.312X2 + 0.315X3 + 2.713X4 T-Test

PRIMARY DATA ANALYSIS AND INTERPRETATION


Television media grabs the attention of people Viewers get attracted by the Theme of the ad According to the perception of viewers Telecom Industry is making good ads currently 42% Brand preference among various cosmetic brands was observed for LOREAL. Appearance of Famous celebrities create an urge to purchase the products.

CONCLUSION

RECOMMENDATIONS
Increase advertising expense in order to contribute positively towards the sales. Focus at making more investments in total assets in order to improve its sales figures. Instead of having a relax credit policy, dollars should be utilised in advertising.

THANKS