Project Study Report

1

• Project Study Report
• On
• PESTER POWER
  
• (Children influencing parents buying
  decision)
• Submitted by
• Nand Kumar Sharma

2
Objectives of the Study

• The paper plans to study the impact of TV
  Advertisements on School Going Children. It
  proposes the following
• To study what pester power is?
• To study the drivers of Pester Power.
• To study the tools used by the companies to
  target kids.
• To study the various ways to control Pester
  Power.

3
WHAT IS PESTER POWER?

• Pester Power is the name given to Marketing
  Techniques which encourage children to nag their
  parents to purchase a particular product.
• It is repeated nagging of influencing their
  parents to buy advertised or fashionable items.
• Over 95 of kids have pestered their parents for
  a product promoted on TV, according to a new
  survey by www.raisingkids.co.uk.

4
Kids the chief design element of commercials

• Videocon with Sharukh Khan
• Kids with celebrities like the Big B in the
  Hajmola ad make a still more lethal combination.
• Surf excel advertisement.

5
Influence of Children in Family Decision Making
Process

• Children constitute three different markets
• the primary,
• the influencer,
• the future market.
• Children have not been observed to have a large
  impact on instrumental decisions such as how much
  to spend but rather play a role while making
  expressive decisions such as color, model, brand,
  shape, and time of purchase.
• Kids have a lot of information because of
  exposure to television, other media, and friends.

6
Media strategies for children

• Marketers use television as a medium of
  communication
• Young children are able to differentiate between
  a TV program and a commercial but are unable to
  understand the intent of an advertisement until
  they are 8-10 years of age
• Advertising to children avoids any appeal to the
  rational, emphasizing instead that ads are for
  entertainment and "enjoyable for their own sake
• Celebrities and cartoon characters are commonly
  used by marketers

7
expenditure for pester power

• Industry spending on advertising to children has
  exploded in the past decade, increasing from a
  mere 100 million in 1990 to more than 2 billion
  in 2000.
• Teens influence more than 50 billion adult
  spending every year and pester an adult 25 times
  on an average before the desired product or
  experience is finally bequeathed.

8
Pester Power in India

• Arrival of niche channels like the Cartoon
  Network, Hungama and Toonami .
• In 2005- 120 million tween (children between 8-12
  years of age) were present.
• Out of which 45 million live in urban areas
  contribute whopping Rs. 20,000 crore.
• Ad spend per year on products Horlicks and
  Complan is 12 to 15 per cent of the total i.e.
  close to Rs 5000 to 6000 crore.
• Eg.Nestle India - Rs 1507.1 million in December
  2002, Britannia Industries spent Rs 906.3 in
  March 2002 Cadbury India which spent Rs 876.7
  million in December 2002.

9
TOOLS USED TO TARGET KIDS

• The marriage of psychology and marketing
• Buzz or street marketing
• Brand loyalty
• Commercialization in education
• The Internet

10
Drivers of Pester Power

• More working women
• Grand parents increasing role in bringing up
  children
• Rise in the number of single parent households
• Delayed parenthood
• Greater exposure to kids
• Hurried Child Syndrome and Hyper parenting
• The Askable Parent
• Growth of retail sector
• Kids channels-a newer phenomenon

11
Stages of the Consumer Buying Process

• Problem Recognition (awareness of need)
• Information search
• Evaluation of Alternatives
• Purchase decision
• Purchase
• Post-Purchase

12
Some popular examples of Ad campaigns
Bajaj hopes its animation campaign building on the Hoodibabaa promise for Caliber will help it add volumes.

• Bajaj hopes its animation campaign building on
  the Hoodibabaa promise for Caliber will help it
  add volumes.
• Taking the Hoodibabaa campaign for Bajaj's
  Caliber.

13
Measures to control Pester Power

• Advertising Industry regulations in India
• The Advertising Standards Council of India
  (ASCI), the ad industrys self-regulatory
  voluntary organization, encourages viewers to
  pick up their pens and write in, if they find any
  ad offensive, vulgar or false in any way.
• Chapter III, Rule 2 of the Advertising Standards
  Council of India clearly says that
  "Advertisements addressed to minors shall not
  contain anything, whether in illustration or
  otherwise, which might result in their physical,
  mental or moral harm or which exploits their
  vulnerability.

14
ANNEXURE CHILDREN INFLUENCING THE PARENTS
BUYING DECISION OF CONSUMER DURABLES

• 1. Name of the Parent _________________________
  
•  
• 2. Number of children _________________________
  
• 3. Age group of children
• Below 5year 5-10 10-15
• 4. Kind of family
• Nuclear Joint
• 5. Kind of family (according to earning)
• Single income Double income

15

• 6. Monthly family income
• 15-25 25-35 above 35
• 7. Where do you go for shopping?
• Malls local retailers any other
• 8. Do you take them with you while going for
  purchasing\shopping?
• Yes No
• 9. Do your child/children influence you while
  buying the following goods?
• FMCG
• ELECTRONICS
• VEHICLES
• FURNITURE
• APARTMENTS/FLATS

16

• 10. Which of the following do you own? Which type
  brand?

Product Tick Which you own Company Type When did you buy it?
Television
Refrigerator
Music system/DVD/ VCD
Washing machine
Microwave Owen
Air conditioner
Computer/laptop
Mobile phone
17

• 11. How do you arrive at a decision to buy the
  above items?
• Single
• Jointly with spouse
• With entire family
• 12. Has your child/children initiated you to
  purchase any of the above items?
• Yes No
• 13. When arriving at a decision to buy any of the
  above, how much was the influence of your
  child/children?
• Low
• Average
• High
• Extremely high
• 14. Please rate the awareness of your
  child/children regarding branding in the above
  product categories.
• (1. Bad 2.Average 3.Good
  4.Very Good)
• ________________________________

18

• 15. Has your child influenced you to buy a
  specific brand?
• Yes No
• 16. How did your child/children come to know
  about the brand?
• Friends
• Posters banners
• T.V
• Radio
• Internet
• 17. How many hours of T.V does your
  child/children watch in a day?
• Below 2hrs 2-4 above 4hrs
• 18. Have you ever made any unplanned purchase of
  above goods at a shopping mall, supermarket etc.
  due to the insistence of your child/children?
• Yes No Sometimes

19
Some Research Findings

• Findings of the Kids Lifestyle Study- New
  Generations 2005-conducted by Cartoon Network
• Times Magazine and Consumer report 2005 list of
  top-10kid-bribes.
• AC Nielson Research

20
ANALYSIS AND INTERPRETATIONS of
SURVEY  
AGE GROUP FMCG ELECTRONICS VEH1ICLES FURNITURE TOTAL
BELOW 5 4 2 1 0 7
5-10 7 6 3 1 17
10-15 9 9 11 5 34
TOTAL 20 17 15 6 58
21
AGE GROUP OF CHILDREN  
AGE GROUP NO OF RESPONDANCE PERCENTAGE
BELOW 5 7 12.06
5-10 17 29.31
10-15 34 58.62
TOTAL 58 100
22
12.06 of children belong to the age group below
5, 29.31 belong to group of 5-10 and 58.62
belong to group 10-15.age of children influence
the parents decision making.
23
KIND OF FAMILY 
TYPE NO OF RESPONDANCE PERCENTAGE
NUCLEAR 24 80
JOINT 6 20
TOTAL 30 100
24
Pie chart
25
Limitations

• The survey was restricted to 30 samples
• The survey was restricted to areas of Mansarovar,
  Jaipur
• The time limit was too short for the project

26

• Conclusion
• Pester Power is the name given to Marketing
  Techniques which encourage children to nag their
  parents to purchase a particular product.
• Due to the increasing number of nuclear families
  and monthly income, the working condition of
  parents gives more priority to their children.
• The various strategies used by the companies to
  target kids are commercialization of education,
  street marketing, advertisement and Internet.
• To control Pester power various guidelines have
  been given by the advertisement Industry in India
  and across the world which have to be followed by
  the companies.
• Its equally important for the parents to try to
  make a difference in the way advertising is being
  perceived by children.