SHDCHE

SANT HARI DASS COLLEGE OF HIGHER EDUCATION

(RECOGNIZED BY NCTE, GOVT. OF INDIA, APPROVED BY DHE, GOVT. OF NCT OF DELHI & AFFILIATED TO GGSIPU, DELHI)

MINOR PROJECT REPORT ON

NEUROMARKETING – OPPORTUNITIES AND CHALLENGES
Undertaken at

“SANT HARI DAS COLLEGE OF HIGHER EDUCATION”

Submitted in partial fulfillment of the

requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance

of MS. SONALI SETH Submitted by
Gautam
Prajapati
BBA- 4th sem
03896901721
Session 2022-23
Address: Opp. Air Force Station, Bani Camp, Najafgarh, New Delhi-110043

Phone No: 011-25318735/36. Email ID: santharidasscollege@gmail.com. Website: www.santharidasscollege.com

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 DECLARATION

I hereby declare that the Minor Project R e p o r t on

“NEUROMARKETING – OPPORTUNITIES AND CHALLENGES”, as

undertaken by me and submitted to GGSIP UNIVERSITY, DELHI, in

partial fulfillment of the requirements for the Degree of Bachelor of

Business Administration is my original work and in the best of my

knowledge the same has not been submitted for the award of any other

Degree.

Name : GAUTAM PRAJAPATI

Enrolment No : 03896901721

SHDCHE

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SANT HARI DASS COLLEGE OF HIGHER EDUCATION
CERTIFICATE OF GUIDE

Mr. Gautam Prajapati bearing Enrolment No. 03896901721, a

bona fide student Of Sant Hari Dass College Of Higher
Education, Delhi (an affiliated College of GGSIP
University, Delhi) has worked on “ NEUROMARKETING –
OPPORTUNITIES AND CHALLENGES”, in partial fulfillment of the
requirements for the Degree of Bachelor of Business
Administration under my supervision and guidance.

I certify that this Project Report is a record of the work done by

the candidate himself/herself and that to the best of my knowledge
the contents of this report did not form a basis of award of any
previous degree to anybody else.

(MS. SONALI SETH CHAWLA)

Faculty of Management SHDCHE
SHDCHE

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 ACKNOWLEDGEMENT

The satisfaction of the successful completion of any task wouldn’t be

complete without the expression of gratitude to the people who made it
possible.
I express my deep sense of gratitude and indebtedness to Dr. Neelam
Soni, Director of Management Department, Sant Hari Dass College of
Higher Education, Delhi and my guide MS. SONALI SETH for their keen
interest, valuable guidance, constant inspiration and continuous
encouragement during the various phases of work.
I am immensely thankful and indebtedness to Dr. Jai Bhagwan,
Principal, Sant Hari Dass College of Higher Education, Delhi for his
thoughtful advise and useful suggestion for carrying out the work.
I also express my gratitude to all the Faculty members of Department
Management, Sant Hari Dass College of Higher Education, Delhi for their
extended cooperation and creative validation of my work as needed for its
completion.
I also owe my obligation to the Librarian and the Staffs of Library, Sant Hari
Dass College of Higher Education, Delhi, who made available to me quite a
few of the information and data, books and journals. I cannot go without
expressing my thanks to my all well-wishers for providing support and
cooperation during the preparation of this Report.

Name: GAUTAM PRAJAPATI

Enrolment No. 03896901721
SHDCHE

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 INDEX

SNO CONTENT PAGE NO.

Chapter 1 - Introduction 7
1.1 Objective of the study 19
1. 1.2 Scope of the study 19
1.3 Company Profile 20
1.4 Industry Profile

2. Chapter 2 - Literature Review 29

3. Chapter 3 - Research Methodology 33

Chapter 4 – Data Reduction, Presentation &

4. 37
Analysis

5. Chapter 5 – Data Interpretation 44

Chapter 6 – Summary & Conclusion 53

6. 6.1. Result & Finding 54
6.2. Limitation of Study 56
6.3. Suggestion & Conclusion 58

7. Bibliography/References 60

8. Annexure

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 CHAPTER – 1
INTRODUCTION

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1.1 INTRODUCTION

Associations intend to create and dispatch items and administrations that can expand
their benefits and piece of the overall industry, searching for activities that create the
normal request and particularly have the option to connect with buyers on the
advantages and characteristics of the items and administrations advertised. The
principle objective is to create an effect on the buyer, so that at the hour of dynamic it
is obvious to the customer why they should choose the association's image over the
other Showcasing is tied in with understanding customers' practices, needs and
inspirations and afterward conveying an encounter that lines up with each one of
those focuses. Over 70% of new items propelled around the world, including
vehicles and shoes, in any event, when tried through customary showcasing
procedures and mental meetings or surveys, flop inside the initial a half year. This
happens basically in light of the fact that individuals don't state, or can't express their
actual perspectives about their advantage and purchasing inspiration when met about
new items or publicizing efforts. This implies advertisers who have a strong
comprehension of shopper conduct and brain science are regularly going to be the
best at making solid, client driven crusades. One of the unavoidable issues that
penetrate society yet to be explained is: the thing that drives the purchaser to settle on
a decision for a particular brand or item over the other, in light of the apparent
expenses and advantages. Confronted with this inquiry and mechanical improvement
of the most recent decades, a choice to all the more likely comprehend buyer conduct
has picked up quality against the conventional existing in the advertising field;
neuromarketing. All the more as of late, advertising professionals grasped the
significance of significant worth creation (counterbalancing costs against benefits)
and the key job of fulfillment (satisfaction of prior desires). Both of these generally
acknowledged showcasing ideas accept a purchaser looking for some type of
intellectual financial judiciousness when deciding. 3 The ability to summon an
enthusiastic answer through an ad or another correspondence instrument is one of the
principle points of showcasing. Be that as it may, it is difficult to gauge or evaluate
feelings. This issue has driven showcasing researchers to expand new models of

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utility and individual sanity. Ordinarily, the daily schedule of a buy in a client's brain
begins from a requirement for an item and emerges as think–see purchase/don't
accepting. In any case, this procedure doesn't generally continue so basically. Truth
be told, regularly individuals don't generally require an item or administration, and
the choice is made through different systems, without sound impact. Researchers are
continually investigating factors dependent on disposition and purchaser conduct that
can give an upper hand. Generally, promoting and publicizing researchers have used
exploration dependent on center gatherings to acquire replies about items and brand
correspondence, however showcase change requires new advancements to
comprehend shoppers' brains deductively. In the course of recent years, scientists
have created diverse neurophysiological strategies to dissect purchaser conduct and
the impacts of promoting, with the point of explaining various parts of advertising.
The fundamental issue for makers of different merchandise and for chiefs
everywhere throughout the world is to foresee whether their new items will be
alluring to customers, regardless of whether the proposed cost is adequate, and
whether the promoting interchanges are viable. Subjective examination, for example,
a center gathering meeting or visually impaired trial, is constantly founded on self-
reports, where the appropriate responses given during the meeting speak to the
primary method to realize which item, taste or business is acknowledged. This sort of
approach makes one significant supposition: purchasers never lie. In viable life, this
speculation isn't right, since purchasers lie and some of the time react with
articulations of stresses and preferences. It is accepted that reviews acted in this field
are pragmatist, logical and increasingly dependable. Besides, during center gathering
interviews individuals uncover perspectives—impacted by a solid character, for
instance—that make the examination untrustworthy. Hence, reactions are not
autonomous of each other. Neuromarketing defeats the restrictions of regular
strategies to test and conjecture proficiency in publicizing venture (which frequently
fizzle since they rely upon shopper accessibility and ability to depict how a notice
feels), offering a bleeding edge approach to straightforwardly test customers' brains 4
without requiring requesting intellectual cooperation. Neuro advances and
neuroimaging procedures have the ability to examine the recurrence, area and timing

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of neuronal action to an extraordinary degree. Neuromarketing utilizes neuroscience
to decide how buyers are influenced by varieties in item configuration, bundling and
instore shows; why buyers lean toward certain items and brands to other people; and
how much publicizing substance and execution affects them.

FIGURE 1.1 NEUROMARKETING INFLUENCE

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NEUROMARKETING

In marketing, the brain assumed centre stage in 2002 with the first neuromarketing
tests. These examinations - which utilized instruments like fMRI, yet additionally
EEG (electroencephalography, a strategy for estimating mind waves) and biometrics
(apparatuses, for example, face and unique finger impression scanners)— analyzed
the crossing point of purchaser conduct and neuroscience to decide how shoppers
may react to a promotion, brand or battle. Neuromarketing is a business advertising
correspondence field that applies neuropsychology to promoting research,
contemplating purchasers' sensorimotor, intellectual, and full of feeling reaction to
showcasing improvements. Neuromarketing looks to comprehend the method of
reasoning behind how buyers settle on buying choices and their reactions to
promoting boosts so as to apply those learnings in advertising. "Neuromarketing is
basically planning showcasing materials (counting the site, promotions, email
crusades and substance) to bring out explicit neurological responses that trigger
feelings or reactions that are connected to buying." Neuromarketing gets to the
nonconscious responses of buyers to an item, brand, or publicizing spot to more
readily comprehend the conduct of the customer, the buying choice or how
perspectives, for example, feelings and intellectual predispositions influence
dynamic. Advancing specialists will use neuromarketing to all the more promptly
evaluate a purchaser's tendency, as the verbal response given to the request "Do you
like this thing?" may not by and large be the real answer. This data will help sponsors
with making things and organizations organized even more suitably and exhibiting
endeavours focused more on the brain's response. Neuromarketing will make
reference to the sponsor what the client reacts to, whether or not it was the shade of
the packaging, the sound the compartment makes when shaken, or the likelihood that
they will have something their co-customers don't. Neuromarketing is the use of
neuroscience to advancing. Neuromarketing fuses the prompt use of brain imaging,
checking, or other cerebrum activity estimation advancement to measure a subject's
response to unequivocal things, packaging, advancing, or other promoting parts.

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Now and again, the psyche responses assessed by 6 these methods may not be
intentionally observed by the subject; consequently, this data may be more revealing
than self-giving insights about audits, in focus social affairs, etc. The potential
preferences to sponsors fuse logically capable and ground-breaking advancing
endeavours and methodology, less thing and campaign disillusionments, and finally
the control of the veritable needs and needs of people to suit the prerequisites and
requirements of exhibiting interests Using neuromarketing, you can re-examine your
philosophies and make increasingly splendid advancing that will bolster the
ampleness of your undertakings. Its goal is to perceive how your customer's
cerebrum truly works and what impacts your advancing will have on the quantity of
occupants in buyers.

FIGURE 1.2 NEUROMARKETING

Neuromarketing isn't just about essential system. You can really put resources into
elevated level examination to perceive how genuine purchasers are reacting
neurologically to your genuine battles. Scientists use innovations, for example, useful
attractive reverberation imaging (fMRI) and electroencephalography (EEG) to
quantify explicit sorts of cerebrum action because of publicizing messages. With this
data, organizations realize why shoppers settle on the choices they do and what parts
of the mind spur them to do as such.

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OPPORTUNITIES IN NEURO MARKETING

Neuromarketing refers to the application of neuroscience and psychology principles

to understand consumer behavior and develop marketing strategies. It aims to
uncover subconscious motivations and responses to marketing stimuli. Here are some
opportunities in neuromarketing:
1. Consumer Insights: Neuromarketing provides a deeper understanding of
consumer preferences, decision-making processes, and emotional responses. It
can help identify subconscious biases, motivations, and desires that influence
purchasing behavior. By using techniques such as neuroimaging (fMRI, EEG) and
biometric measurements, marketers can gain insights into consumers' emotional
engagement and cognitive processes.
2. Product Development: Neuromarketing can guide product development by
understanding consumers' sensory experiences and preferences. By measuring
brain activity and physiological responses, companies can optimize product
design, packaging, and branding to maximize consumer appeal and create more
engaging experiences.
3. Advertising Optimization: Neuromarketing techniques can evaluate the
effectiveness of advertising campaigns. By analyzing brain responses to different
advertisements, marketers can identify which elements (visual, auditory,
emotional) are most impactful and optimize content accordingly. This can lead to
more persuasive and engaging advertisements.
4. Pricing and Decision Making: Understanding the neuroeconomic aspects of
consumer decision-making can help optimize pricing strategies. Neuromarketing
research can reveal how consumers perceive prices, evaluate options, and make
purchasing decisions. This knowledge can aid in setting optimal prices, framing
offers, and influencing consumer choices.

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5. Customer Experience: Neuromarketing can enhance the customer experience by
identifying key touchpoints and designing strategies to create positive emotional
responses. By understanding the neural mechanisms involved in customer
satisfaction and loyalty, companies can tailor their interactions, service delivery,
and overall brand experience to strengthen customer relationships.
6. Branding and Positioning: Neuromarketing can uncover how consumers perceive
and connect with brands. By examining brain responses to different brand
elements (logos, slogans, packaging), marketers can develop more effective
branding strategies and positioning. This helps create a stronger brand identity
and resonates better with the target audience.
7. Neurometric Analysis: Neuromarketing can employ advanced analytics
techniques to process and interpret large datasets of neuroscientific and behavioral
data. By combining neuroscience, machine learning, and data analytics, marketers
can gain valuable insights and make data-driven decisions.
It's important to note that ethical considerations and consent are crucial when
implementing neuromarketing techniques. Respecting consumer privacy and
ensuring transparent use of neuroscientific methods should be a priority for
marketers.

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TECHNIQUES IN NEURO MARKETING

Neuromarketing utilizes a variety of techniques to understand and influence

consumer behavior. Here are some commonly used techniques in neuromarketing:

Neuroimaging: Neuroimaging techniques, such as functional magnetic resonance

imaging (fMRI), electroencephalography (EEG), and positron emission tomography
(PET), are used to study brain activity. These methods can help identify neural
responses associated with specific stimuli, emotions, and decision-making processes.
Neuroimaging provides insights into consumers' subconscious reactions to marketing
stimuli, such as ads or product designs.

Eye Tracking: Eye tracking measures eye movements and gaze patterns to
understand visual attention. It can reveal what consumers focus on, what elements
attract their attention, and how they navigate visual stimuli. Eye tracking is valuable
for optimizing website design, product displays, and packaging to capture consumers'
attention and guide their visual exploration.

Facial Expression Analysis: Facial expression analysis uses computer vision

techniques to analyze facial expressions and emotions. By tracking facial muscle
movements, researchers can identify emotions like joy, surprise, sadness, or disgust.
This method helps evaluate consumers' emotional responses to advertisements,
products, or experiences, providing insights into emotional engagement and
consumer preferences.

Biometric Measurements: Biometric measurements include physiological signals like

heart rate, skin conductance, respiration, and sweat gland activity. These

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measurements can indicate emotional arousal, stress levels, and cognitive load. By
monitoring these physiological responses, neuromarketers can assess consumers'
emotional engagement and identify the effectiveness of marketing stimuli.

Implicit Association Tests (IAT): IAT measures the strength of associations between
different concepts by assessing response times to paired stimuli. In neuromarketing,
IAT is used to uncover subconscious associations between brands, products, and
attributes. It helps understand implicit biases and preferences that may influence
consumer decision-making.

Neurofeedback: Neurofeedback is a technique where individuals receive real-time

feedback about their brain activity. It can be used in neuromarketing to measure
consumers' responses to marketing stimuli and provide feedback that guides their
preferences and behaviors. Neurofeedback allows marketers to understand how
consumers' brains respond to different strategies and optimize marketing efforts
accordingly.

Implicit Priming: Implicit priming involves presenting subliminal or subtle cues to

prime consumers' subconscious minds and influence their subsequent behavior. By
exposing consumers to specific stimuli (e.g., words, images) outside their conscious
awareness, marketers can activate associated concepts and influence decision-making
processes.

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CHALLENGES IN NEURO MARKETING

While neuromarketing offers valuable insights into consumer behavior, it also faces
several challenges that need to be addressed. Here are some of the key challenges in
neuromarketing:

Complexity and Interpretation: Neuroscientific data is highly complex and requires

expertise to interpret accurately. Analyzing brain activity, physiological responses,
and behavioral data requires a multidisciplinary approach combining neuroscience,
psychology, and marketing. Ensuring the validity and reliability of neuromarketing
studies is crucial to draw meaningful insights.

Ethical Considerations: Neuromarketing involves the measurement of brain activity

and personal data, which raises ethical concerns. Respecting privacy, obtaining
informed consent, and maintaining data security are essential. Ethical guidelines
should be followed to protect participants' rights and ensure responsible use of
neuromarketing techniques.

Sample Size and Generalizability: Many neuromarketing studies involve relatively

small sample sizes due to the cost and complexity of neuroimaging equipment and
data collection. This raises concerns about the generalizability of findings to larger
populations. Replication of studies and increasing sample sizes are important to
enhance the validity and reliability of neuromarketing research.

Cost and Accessibility: Neuroimaging techniques, such as fMRI and EEG, can be
expensive and require specialized equipment and expertise. This makes
neuromarketing less accessible for smaller businesses and limits the widespread

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adoption of these techniques. Reducing costs and developing user-friendly tools
could help make neuromarketing more accessible to a broader range of organizations.

Integration with Traditional Methods: Neuromarketing should be integrated with

traditional marketing research methods to provide a comprehensive understanding of
consumer behavior. Combining qualitative and quantitative data from surveys, focus
groups, and observational studies with neuroscientific techniques can offer a more
holistic view of consumer motivations and preferences.

Neural Complexity and Individual Differences: The human brain is highly complex,
and neural responses can vary significantly among individuals. It is challenging to
establish a direct, one-to-one relationship between brain activity and specific
marketing outcomes. Individual differences in cognitive processes, cultural
backgrounds, and personal experiences can influence neural responses, making it
difficult to develop universally applicable neuromarketing strategies.

Translating Findings into Actionable Insights: While neuromarketing can provide

valuable insights, translating those insights into actionable marketing strategies is not
always straightforward. Bridging the gap between neuroscientific findings and
practical marketing applications requires a deep understanding of both domains and
effective collaboration between neuroscientists and marketers.

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IMPLICATION OF NEURO MARKETING

When the advertising level of influence is quickly moving for the shopper, accessing
neural demonstrative instruments has significant ramifications. In the expressions of
an industry official, "we can bid farewell to those unending costly bleeding research
bunches where shopper either lie their heads off or mention to us what they think we
need to hear". Along these equivalent lines, it dodges the issue of depending
vigorously upon subjects' self-reports when it is profoundly improbable that even the
most decided subject could precisely express their critical subliminal intentions.
Ninety-five percent of clients' choice procedure happens in the inner mind, and
neuroscience could offer great help to all the more likely clarify this procedure,
indicating the purposes behind clients' buy activities. It is additionally hard for an
overview to catch the enthusiastic reasons basic shopper inclinations or choices. It is
noticed that only one out of every odd cola consumer recognizes what drives her to
her preferred beverage, nor can she dispassionately portray the motivation, given the
inclination of the advertising impact she has just been presented to. Neuroscience's
apparatuses, interestingly avoid all feeling, reflection and conscience.
"Neuromarketing's quality is that it might hit on subliminal predispositions that
customary publicizing techniques, for example, center gatherings, neglect to reveal".
As it were, the potential for neuromarketing to diminish advertising disappointments
and increment showcasing victories appears to be very encouraging; despite the fact
that not without debate. While the reason for neuromarketing is to decide how buyers
react to brands or crusades, a somewhat harmless examination, not every person is
persuaded that it's moral. The investigation, "Is Neuromarketing Ethical? Purchasers
Say Yes. Customers Say No," addresses moral inquiries, for example, "Will brands
have the option to impact purchaser choices to an extreme?" and "Is neuromarketing
manipulative?" With the development of the field, reactions and fears of
neuromarketing's implied power have developed, remembering both prompt impacts

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for singular purchasers and long haul consequences for society all in all, including
positive rights to security, selfrule, and poise just as negative rights not to be
bamboozled, exposed to tests without assent, or utilized as a methods as it were.
1.2 OBJECTIVES OF THE STUDY
• Understanding different aspects of Neuromarketing
• Assess use of neuromarketing in real life campaigns of various companies
• Analyse consumer behaviour driven by neuromarketing

1.3 SCOPE OF THE STUDY

The research aims to understand the extent of impact neuromarketing has on

consumer behaviour. In order to do that we first understand various aspects of
neuromarketing including its limitations and also different applications of
neuromarketing and how they are applied. The study also examines consumer
behaviour in response to campaigns built with neuro marketing techniques

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1.4 COMPANY PROFILE

1.4.1 PEPSICO

PepsiCo, Inc. is an American multinational food, snack, and beverage

corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's
business encompasses all aspects of the food and beverage market. It oversees the
manufacturing, distribution, and marketing of its products. PepsiCo was formed in 1965
with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi Cola to an immensely diversified range of
food and beverage brands. The largest and most recent acquisition was Pioneer Foods in
2020 for US$1.7 billion[2] and prior to it was buying the Quaker Oats Company in 2001,
which added the Gatorade brand to the Pepsi portfolio and Tropicana Products in 1998.

As of January 2021, the company possesses 23 brands that have over US$1 billion in
sales annually.[3] PepsiCo has operations all around the world and its products were
distributed across more than 200 countries, resulting in annual net revenues of over
US$70 billion. PepsiCo is the second-largest food and beverage business in the world
based on net revenue, profit, and market capitalization, behind Nestlé. PepsiCo's flagship
product, Pepsi Cola has been engaged in a rivalry for generations with Coca-Cola; it is
commonly referred to as the cola wars. Although Coca-Cola outsells Pepsi Cola in the
United States, PepsiCo within the North American market is the largest food and
beverage company by net revenue. Ramon Laguarta has been the chief executive of
PepsiCo since 2018. The company's beverage distribution and bottling is conducted by
PepsiCo as well as by licensed bottlers in certain regions.

Pepsi has been repeatedly criticized by environmentalists for its relationship to

negative environmental impacts of agriculture in its supply chain, and distributing
operations such as palm oil-related deforestation and pesticide use, its use of water
resources, and the negative impacts of its packaging—Pepsi's packaging has consistently

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been one of the top sources of plastic pollution globally.[4] Similarly public health
advocates have criticized Pepsi's high-calorie, poor nutrition product lines along with
other popular snack and drink manufacturers.

1.4.2 COMPANY’S VISION AND MISSION

Create more smiles with every sip and every bite

For our consumers

By creating joyful moments through our delicious and nourishing products and unique
brand experiences.

For our customers

By being the best possible partner, driving game-changing innovation and delivering a
level of growth unmatched in our industry.

For our associates and our communities

By creating meaningful opportunities to work, gain new skills and build successful
careers, and maintaining a diverse and inclusive workplace.

For our planet

By conserving nature’s precious resources and fostering a more sustainable planet for our
children and grandchildren.

For our shareholders

By delivering sustainable top-tier TSR and embracing best-in-class corporate
governance.

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1.4.3 PRODUCT RANGE

PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of 53

percent foods, and 47 percent beverages.[61] On a worldwide basis, the company's current
products lines include several hundred brands that in 2009 were estimated to have
generated approximately US$108 billion in cumulative annual retail sales

The primary identifier of a food and beverage industry main brand is annual sales over
US$1 billion. As of 2015, 22 PepsiCo brands met that mark, including: Pepsi, Diet
Pepsi, Lay's, Gatorade, Tropicana, Everest, Doritos, Brisk, Quaker
Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked, Kevita, Propel, Sobe, H2oh,
Sabra, Starbucks (ready to Drink Beverages), Pepsi Max, Tostitos, Sierra
Mist (discontinued in 2023 in favor of Starry), Fritos, Walkers, and Bubly.

PepsiCo Inc. has four major divisions that produce and sell these two categories of
products-

1. PepsiCo Americas Beverages (PAB): The division provides concentrates and

syrups to Pepsi bottlers; it is also involved in direct marketing of finished
products to retailers and distributors, which indicates its relative independence.
The brands include Pepsi, Mountain Dew, Tropicana Fruit Juices, Gatorade
Isotonic Sports Beverage, Lipton tea, Sierra Mist, Dole, and SoBe; moreover,
PAB licenses and sells tea, coffee, and water products in a joint venture with
Starbucks and Unilever, which allows it to get a higher profit but does not expand
its width.

2. Frito-Lay North America (FLNA): The division produces various foods (mostly
specializing in quick snacks), including such brands as Lays Potato Chips, Doritos

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 Tortilla Chips, Tostitos Tortilla Chips, Cheetos Cheese Flavoured Snacks, Fritos
Corn Chips, Ruffles Potato Chips, SunChips, and Smart Food–this implies that
the product width of FLNA is reduced to only one product line.

3. Quaker Foods North America (QFNA): Unlike FLNA, this division is more
oriented at healthy foods and does not manufacture snacks. Instead of this, they
produce cereals, corn, and pasta. QFNA covers such brands as Life Cereal, Pasta
Roni, Aunt Jemima, and Quaker Oats. Again, the product width is limited to one
product line.

4. PepsiCo International (PI): The major task of the division is to handle

international interactions of the other three. As a coordinator, it deals with
licensing, marketing, region-specific products, cash flow, and other issues related
to operations in the global market. This implies that all interactions PepsiCo UAE
has with the head company are organized through the intermediacy of PI. The
local brands the division has to control include Walkers Potato Chips, Mirinda,
7UP, Gamesa, Sabritas, and Copella juices.

As far as PepsiCo is concerned, its food group includes seven brands while the beverage
group consists of ten brands, the complete list of which runs as follows (Lang &
Heasman, 2015):

Foods:

 Lays;
 Cheetos;
 Kurkure;
 Lehar;

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  Quaker Oats;
 Uncle chips;
 Aliva.

Beverages:

 7 UP;
 Mirinda;
 Pepsi;
 Mountain Dew;
 Nimbooz;
 Slice;
 Tropicana;
 Aquafina;
 Duke’s;
 Gatorade.

Each brand within the line has more than one variation. Products can vary in their size,
color, flavor, target audience, and any other factors that customers may find significant.
The total of all variations is defined as the product depth (Keller, 2014).

For instance, the depth of Pepsi as the initial product of the company comprises-

 Pepsi Free;
 Pepsi Wild Cherry;
 Diet Pepsi;
 Caffeine Free Pepsi;
 Caffeine Free Diet Pepsi;
 Diet Wild Cherry Pepsi;
 Pepsi Vanilla;
 Pepsi One;

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  Pepsi NEXT Cherry Vanilla;
 Pepsi NEXT Paradise Mango;
 Diet Pepsi Lime;
 Diet Vanilla Pepsi;
 Pepsi;
 Pepsi MAX;
 Pepsi NEXT;
 Pepsi Throwback.

As far as the second-largest brand, Lay’s Chips, is concerned, it also features a significant
depth: The product can be found in a number of different sizes and with different flavors,
including international and local ones. Those available in the UAE include (Laseter,
2017):

 India’s Magic Masala;

 Classic Salted;
 Spanish Tomato Tango;
 American Style Cream & Onion.

Other less popular flavors that can also be found in some stores include:

 Chile Lemon;
 French Salt and Cracked Pepper
 Swiss Grilled Cheese.

Recently, there have also appeared baked chips, although innovation is not popular with
customers.

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1.4.4 SIZE OF ORGANIZATION

IN TERMS OF MANPOWER

PepsiCo India provides direct and indirect employment to almost 1,70,000 people. The
company believes in providing employment and growth opportunities to local talent. Its
‘College of Leadership’, ensures early identification of talent, and employees’ focused
development through critical experiences. PepsiCo firmly believes that encouraging
diversity means encouraging policies and systems that respect people’s special needs. Not
only does PepsiCo have a vibrant and diverse workforce, it takes the utmost care to make
dynamic business leaders of its employees and foster their career and personal growth
through differentiated experiences and a robust leadership development model.

IN TERMS OF TURNOVER

PepsiCo annual/quarterly revenue history and growth rate from 2010 to 2023. Revenue
can be defined as the amount of money a company receives from its customers in
exchange for the sales of goods or services. Revenue is the top line item on an income
statement from which all costs and expenses are subtracted to arrive at net income.

 PepsiCo revenue for the quarter ending March 31, 2023 was $17.846B, a 10.16%
increase year-over-year.
 PepsiCo revenue for the twelve months ending March 31, 2023 was $88.038B,
a 8.89% increase year-over-year.
 PepsiCo annual revenue for 2022 was $86.392B, a 8.7% increase from 2021.
 PepsiCo annual revenue for 2021 was $79.474B, a 12.93% increase from 2020.

26
  PepsiCo annual revenue for 2020 was $70.372B, a 4.78% increase from 2019.

1.4.5 ORGANISATIONAL STRUCTURE

PepsiCo is an adaptive organization, as they are continuously seeking constant

improvement and keeping new ideas in the marketplace while its products progress along
their life cycles. PepsiCo has a decentralized organizational structure, with operational
decisions made within the separate business units while being governed by policies at the
corporate level.

PepsiCo consists of three units: PepsiCo Americas Foods, PepsiCo Americas Beverages
and PepsiCo International. PepsiCo Americas Foods encompasses Frito-Lay North
America, Quaker and all Latin American food and snack businesses. PepsiCo Americas
Beverages oversees Pepsi-Cola North America, Gatorade, Tropicana, and all Latin
American beverage businesses. PepsiCo International is responsible for PepsiCo business
in Europe, Asia, and Africa.

ORGANISATION STRUCTURE OF THE PEPSICO

27
1.4.6 MARKET SHARE AND POSITION OF THE COMPANY

Carbonated Soft Drinks (CSDs): PepsiCo competes with The Coca-Cola Company in
the CSD market. Both companies have a significant presence globally, with PepsiCo's
flagship brand, Pepsi, being a major competitor to Coca-Cola. The specific market share
and rankings may vary across regions and time.

Snack Foods: PepsiCo is a dominant player in the global snack food market. It owns
popular snack brands such as Lay's, Doritos, Cheetos, and Tostitos, which have
substantial market share and enjoy widespread consumer recognition. The company's
snack division has consistently performed well and contributed to its overall market
position.

28
Non-Alcoholic Beverages: PepsiCo's beverage portfolio extends beyond carbonated soft
drinks. It includes a range of non-alcoholic beverages, such as Gatorade sports drinks,
Tropicana juices, Lipton teas, and Aquafina bottled water. These brands compete in
various subcategories of the non-alcoholic beverage market and hold significant market
share in their respective segments.

Global Presence: PepsiCo has a strong international presence, operating in more than
200 countries and territories worldwide. Its global reach allows the company to cater to
diverse consumer preferences and adapt its product offerings to local markets.

29
 CHAPTER – 2
LITERATURE REVIEW

MARKETING DRIVE WITH NEURO-MARKETING

Vrtana et al (2019) have elaborated on the concept of communication as of the most

necessary tools for marketing to attain the company's strategic goals. This can be
achieved by influencing the consumer's purchasing behaviour by using tools such as
Neuro-marketing which analyses brain activity with various marketing stimuli through
sensory stimulation. This point has been illustrated by the authors (Vrtana et al., 2019) by
taking an example from the Slovak Telekom Group. This group has a strong marketing
presence as it has built itself as a brand to reckon with due to its vast array of services and
products and good promotional advertisement, especially its preChristmas slogans. It has
used sincerity as its emotional contrivance to support the purchase of its telecom services
during Christmas time at a lower price and discount for their loved ones. They used Eye
tracking of advertisements as a Neuro-marketing device. They used eleven respondents

30
for their experiment which was based on thermal or heat maps captured by photos on the
faces of its respondents to judge the outcome of their advertisements. Redcolour heat
maps on the eyes and faces of the thermal photos showed the respondents agreed
sincerely about the company's, campaign.

NEURO- MARKETING AND MEDICAL TOURISM IN INDIA

India's relatively low cost and good quality healthcare have led to a niche medical
tourism market despite competitions from other countries like Thailand, UAE, Malaysia,
etc. CII-McKinsey (2002) has projected an estimate of five to ten thousand crores by
2012 from medical tourism in India and it will boost the healthcare market by three to
five percent. The issue faced by India is that it has very little support from the
government on this initiative of medical tourism and the hospitals are not standardized on
pricing, promotion, and other health standards. Therefore the idea of using Neuro-
marketing techniques to boost the business through effective advertisement can help to
increase patient inflow from different countries (Kumar et al., 2016). It has been studied
that the human brain can process eleven million bits of information in a second but the
storage in the conscious mind is a fraction as compared to that which can be stored in the
subconscious mind and this fundamental has been used by researchers to connect the
power of the brain in decision making for marketing purposes (Kumar et al., 2016).
Medically, Neuro-marketing has been explained as the reaction of the CNS (Central
Nervous System) to marketing incitements i.e. the reactions of the consumer's behaviour
to marketing strategies. Experimental tests that are used for Neuro-marketing are Fmri
(measures brain activity with the amount oxygen level in the blood); SST (Steady State
Topography, which records the activity of the brain while the consumers look at specific
advertisements); respiratory rate; heart rate; eye movement; galvanic conductance of the
skin to assess the skin moisture level, etc. The consumers can then be shown health
advertisements that deliberate on messages of well-being, longer life span to drive home
the idea of a healthy life. The challenge faced by the healthcare sector is that it has too
many players in the market who jostle for patients by using advertisements of medical
surgeries with advanced techniques.

31
NEURO- MARKETING AND RETAIL MARKET IN INDIA

Neuro-marketing is an ideal tool to exploit the emotions of consumers during online

retail shopping and is being explored by many leaders of known brands (Marci, 2008).
The retailers use the Neuro -marketing science to have competitive prices based on the
consumer's perception of the brands which they explore through the steps of – attention,
representation, experience, predicted value, learning, and importance (Plassmann et al,
2015). Datta and Mandal (2018), have reflected on the notion of Neuro-marketing in
India to be an expensive option as cost per respondent especially with brain imaging
techniques and they have suggested other techniques such as Eye-Tracking and
Biometrics to understand the consumer's assertiveness. In the rural areas of India, visual
stimuli as Neuro-marketing tools are more enhanced with the people there, as they
depend on colour, packaging more than the brand name. Companies such as Neuronme,
Xanadu Consulting, Affectlab use EEG techniques along with Machine learning to study
the phenomena of Neuro-marketing in India. Kumar and Singh (2015) have itemized
Neuro- marketing techniques used by the following companies: Hyundai Motors (EEG),
Cheetos (Neuro-imaging), Yahoo (EEG cap), PayPal (Brainwave research), Microsoft
(EEG cap), Ford Motors (MRI and electrodes on the scalp). They have used these
techniques for advertisements, promotions, predictions product design, customer
relations, etc.

NEURO-MARKETING AND ETHICAL CONCERNS

Sharma et al (2014) have pondered over the ethical concerns over the concept of
Neuromarketing as it gives control to the companies to treat consumers as laboratory rats
and make them believe something via a falsely created virtual world in the name of
marketing Commercial Alert has raised alarm over the use of medical imaging of the
brain for nonmedical purposes and marketable moneymaking activities. The other
concerns are the privacy of consumers (Voorhees et al., 2011); deficiency of information
trustworthiness (Murphy et al., 2008); the information can be exploited by political
groups for their agendas (Devaru, 2018).

32
33
 CHAPTER – 3
RESEARCH METHODOLGY

RESEARCH METHODOLOGY

ABOUT

The study is aimed at understanding the following aspects:

• Understanding different aspects of Neuromarketing

• Assess use of neuromarketing in real life campaigns of various companies

34
 • Analyse consumer behaviour driven by neuromarketing

To get answers to these questions this research was taken place. This was because there
already exist studies quantifying neuromarketing aspects but there lies a gap in listing and
understanding of different aspects and there application in real life. There is no study
focusing on what all and how all neuromarketing is utilised. These questions are
answered through a point by point assessment of the writing and experimental outcomes
acquired concerning how neuromarketing procedures utilized in ads can impact clients'
conduct. They concern strategies for the examination of cerebrum movement, the
territories influenced by notices and their effect on clients' practices. This audit underlines
the dynamic job of neuromarketing this and furthermore depicts significant
administration applications in the field of promoting

RESEARCH DESIGN

Various papers, cases and texts were looked at to compile literature on neuromarketing

and its applications and how neuromarketing is put to use. Analysing existing research

to perform an integrative literature review.

Primary Data was also collected through interviews and questionnaires.

INTERVIEW

35
Specialists can pose various kinds of inquiries which thus create various sorts of

information.

They are moreover suggested as 'revelation gatherings' and are logically like a 'guided

protection' than a serious sorted out gathering. They are on occasion assembled

easygoing conferences.

• Unstructured interviews produce emotional data utilizing open requests. This

allows the respondent to talk in some significance, picking their own words.

This empowers the expert to develop a certifiable sentiment of a person's

understanding of a situation.

• They furthermore have extended authenticity since it offers the examiner the

opportunity to test for a progressively significant perception, demand

clarification and license the interviewee to manage the course of the gathering,

etc.

QUESTIONNAIRE

It is an investigation instrument containing a movement of requests to amass

information from respondents.

Data can be assembled modestly quickly in light of the fact that the expert shouldn't

be accessible when the studies were done.

They need detail. Since the responses are fixed, there is less augmentation for

respondents to deftly answers which reflect their real feelings on a point.

DATA COLLECTION

To achieve the research objectives of the study, data for the study included was

collected in the following manner:

36
PRIMARY DATA

• Interviews

• Survey/Questionnaire

SECONDARY DATA

• Existing Research Papers

• Existing texts on the topic

• Case Studies done to understand implications of neuromarketing

• Application of neuromarketing in real life campaigns, listed

37
 CHAPTER – 4
ANALYSIS

INTRODUCTION –

Neuromarketing is taking the world by storm and has been exploited by almost all

major brands and in some way or form.

“Neuromarketing is essentially designing marketing materials (including the website,

ads, email campaigns and content) to evoke specific neurological reactions that trigger

38
emotions or responses that are linked to purchasing.”

Neuromarketing insights are applicable to a broad range of contexts. Either in stores

or online; in restaurants and in television commercials.

Neuromarketing is used in multiple ways by companies, small and large alike. Some

of these include:

• Sensory Marketing

• Colour Psychology

• Prototype Testing

• Loss Aversion

• Anchoring

• Reward and Punishment

These are some ways neuromarketing is applied for garnering positive reactions from the
consumers. We will now look at these aspects in details.

SENSORY MARKETING

Sensory marketing are the methods that are used to reach the customer’s senses and
impact their behaviour dependent on how the image and strategies cause them to feel.
As we are already aware, the five faculties are sight, hearing, taste, contact and smell.
Tactile advertising is basically the way towards getting a client's trust and contemplation
by luring every one of these five detects. An incredible piece of the new assessment
centers around "exemplified perception"— the likelihood that without our discerning
care, our genuine sensations help choose the decisions we make. For example, people

39
who had immediately held a warm reward were more likely than people who had held a
cool one to feel that an outcast was pleasing. Considering substantial effects is a set up
preparing in some client adventures, for instance, food, beautifiers, and kind disposition.
For example, Hershey's has for quite a while realized that the material satisfaction
people get from opening up the foil around a Kiss changes a standard piece of chocolate
into an unprecedented experience. Carmakers have given close thought to the resources
for a significant long time: Designers attempt to improve the vibe of handles, the solid
uproar of a gateway shutting, and the specific new-vehicle smell. Starting late they have
gone to slant setting developments. For instance, in its 2014 M5 model, BMW mikes and
amps the engine sounds through the vehicle speakers, regardless, when the sound
system is murdered. The idea is to overhaul the vehicle's energetic feel. Sounds,
pictures, smells, and even tastes would all be able to influence the way that your
intended interest group ponders you. By dealing with the study of tangible showcasing,
organizations can start to try different things with the speculative chemistry of brand
dependability and find the ideas that genuinely persuade clients to purchase. This
procedure of drawing in the faculties to sell items is alluded to as tactile advertising:
showcasing that impacts customers' view of brands by utilizing multitangible encounters
to set up positive enthusiastic associations with them.

Drawing in the faculties to sell items is alluded to as tactile promoting: showcasing that
impacts buyers' view of brands by utilizing multi-tangible encounters to build up positive
passionate associations with them.

COLOUR PSYCHOLOGY

Colour psychology is a region of exploration that sees how shading impacts our conduct
and dynamic. ‘At the point when utilized in promoting, for instance, various hues can
affect the manner in which purchasers see a brand in manners that aren't generally
evident, for example, how certain tones can expand hunger’. People are visual animals -
so visual, truth be told, that shading assumes an a lot greater job in impacting what we
buy than we may might suspect. It's what gets the crowd to perceive what you require
them to grasp, feel what you require them to feel, and to do what you require them to do.

40
Which tints are picked can likewise impact ease of use and whether element is discernible
it or not. This is the thing that makes understanding colour theory so necessary for the
achievement of your substance. The brain research of shading as it identifies with
influence is one of the most fascinating — and generally disputable — parts of
showcasing. Colour psychology is the investigation of how hues influence observations
and conduct. In showcasing and marking, shading brain science is centered around how
hues sway buyers' impressions of a brand and whether they convince customers to
consider explicit brands or make a buy. Shading tends to one of our essential neurological
requirements for incitement. Shading triggers quite certain reactions in the mind and in
the entire body (red raises circulatory strain and pulses, while blue brings down pulse,
heartbeat, and breath rates). For advertisers, shading separates the brand, recommends
passionate advantages and can be a key to a brand's character. The brain research of
shading in publicizing was created by specialists with an eye on the business area.
Studies have demonstrated that the shade of bundling altogether impacts the decision of a
specific item. Trials and testing of the benchmark groups were intended to support
publicists, makers, chiefs and fashioners to settle on the most proper decision for the
shade of items, considering the likely advantages and viability. 28 The affiliations our
minds make with specific hues are vital to overcoming any barrier between advertising
materials and their intended interest groups. An item's shading can persuade us that it
tastes fresher than a similar item with an alternate shading. It can even make prescription
(and fake treatments!) feel increasingly successful. Medication producers incline toward
shading relationship to make dozing pills blue and energizers yellow and red in light of
the fact that these are the hues buyers partner with their separate impacts. Colour
psychology is not only about inspiring certain feelings. It's tied in with utilizing hues to
live up to customers' wishes for items and brands. Consider hues that are appalling fits
for specific items or sorts of administrations, similar to a splendid yellow and orange logo
for a bank or an earthy colored or dark box for female cleanliness items. These hues feel
incorrect to us since they don't coordinate with our wants. By the day's end, our desires
are to a great extent established in organic programming. The manners in which hues
impact our view of the world aren't generally self-evident, nor are they generally
intelligent. Our relationship with a shading can even fluctuate contingent upon our social

41
foundations, our own experiences and our individual tastes. Be that as it may, there are
speculations we can make dependent on the study of Colour psychology. Consolidate this
with target crowd exploration to get further understanding into what your remarkable
buyers like.

LOSS AVERSION

Loss aversion is a mental wonder wherein individuals lean toward maintaining a strategic
distance from misfortunes to securing gains. Loss aversion alludes to the inclination of
individuals to firmly lean toward staying away from misfortunes to securing gains.
Studies show that misfortune abhorrence is twice as incredible mentally as the obtaining
of something. The torment of misfortune or passing up a great opportunity can be a solid

42
help for customers to purchase. This compelling feeling influences the quick reasoning
mind. Buyers Hate Losses More Than They Love Gains. In the event that you can
persuade potential clients that neglecting to act causes a type of misfortune, they will
settle on choices quicker. Buyers react emphatically to advertising messages which assist
them with staying away from misfortunes. At the point when you can cause somebody to
feel the torment of not making a move (with misfortune abhorrence), you can assist them
with settling on a choice. What's more, those choices can assist you with expanding
changes. At the point when you use desperation to sell, you forget about tomorrow by and
large. Loss aversion is an incredible mental essential. Individuals feel misfortunes more
profoundly than they feel gains. Misfortune repugnance can get them to move when they
would ordinarily stop. At the point when tried among other subjective predispositions on
an online business stage, misfortune repugnance beat the partners, arriving at the most
elevated increment in changes and the most noteworthy mean scores for expanding site
visits, as Daugirdas Jankus discovered in his examination at the ISM University of
Management and Economics. In a paper called 'The Boundaries of Loss Aversion',
Novemsky and Kahneman bring up that loss aversion possibly works when individuals
accepts there's something to lose. At the point when utilized the correct way - and
sparingly - misfortune repugnance can be an incredible apparatus for transformation rate
advancement.

LIMITATION OF NEURO MARKETING

The human brain, is a mind boggling thing. It is loaded up with opposing wants and a
steaming chaos of sentiments not coordinated to the basic virtue of an anticipated
business exchange. It's an erratic black box. While neuromarketing, reveals the discovery,
it's not liberated from its own arrangement of restrictions.

43
• The exceptionally advanced innovations utilized right currently are costly.
Examinations are along these lines exorbitant to direct and short in time, which prompts
little examples. This makes it difficult to increase dependable bits of knowledge from
these examinations.

• Experiments should be directed in research facilities. It's difficult to imitate genuine

circumstances, as outside unsettling influence isn't normally present in a lab domain and
here and there subjects are limited in body development. Once more, this has
ramifications for the legitimacy of exploratory outcomes when you need to apply these in
reality.

• Only a solitary neuroimaging innovation, for example, fMRI, can be utilized at once.
This outcomes in a deficient comprehension of the connections between various
physiological procedures and conduct.

• The same holds for non-neuroimaging gadgets, for example, EEG, the aftereffects of
which are considered separately. Besides, those gadgets are constrained in cerebrum
investigation prospects.

• Neuro-ethics. The field of neuromarketing is one that gets a lot of evaluate. A few
purchasers are apprehensive a "purchase button" exists in their cerebrum and
organizations will abuse it on the off chance that it is found. Besides, assurance of
powerless populace bunches is at present scant. Mindfulness and cognizance of study
goals, straightforwardness of showcasing methodologies being made from analyses and
enactment to go with the improvements in the field are for the most part regions needing
consideration. 31 Neuromarketing is directed in a fake situation and that places
constraints on the materialness of the discoveries in reality. In any case, it gives bits of
knowledge that would never be gathered in reality. You were unable to ask somebody
viewing a business on the off chance that they were more drawn in at second seven than
they were at second eight, yet with EEG, you can discover.

44
 CHAPTER – 5

DATA
INTEPRETATION

45
Fiscal year is January-December. All values USD
2022 2021 2020 2019
Millions.

Cash & Short Term Investments 5,348 5,988 9,551 5,738

Cash Only 4,954 5,596 8,185 5,509

Cash & Short Term Investments Growth -10.69% -37.30% 66.45% -47.79%

Cash & ST Investments / Total Assets 5.80% 6.48% 10.28% 7.31%

Total Accounts Receivable 10,163 8,680 8,404 7,822

Accounts Receivables, Net 8,042 7,025 6,691 6,342

Accounts Receivables, Gross 8,192 7,172 6,892 6,447

Bad Debt/Doubtful Accounts (150) (147) (201) (105)

Other Receivables 2,121 1,655 1,713 1,480

Accounts Receivable Growth 17.09% 3.28% 7.44% 9.52%

Accounts Receivable Turnover 8.50 9.16 8.37 8.59

Inventories 5,222 4,347 4,172 3,338

Finished Goods 2,742 2,298 2,247 1,743

Work in Progress 114 151 205 200

Raw Materials 2,366 1,898 1,720 1,395

Other Current Assets 766 2,715 826 692

Miscellaneous Current Assets 766 2,715 826 692

Total Current Assets 21,499 21,730 22,953 17,590

Net Property, Plant & Equipment 26,664 24,427 23,039 20,853

Property, Plant & Equipment - Gross 52,157 48,848 48,010 44,551

46
Fiscal year is January-December. All values USD
2022 2021 2020 2019
Millions.

Buildings 10,816 10,279 10,214 9,314

Land & Improvements 1,142 1,123 1,171 1,130

Machinery & Equipment 33,335 31,486 31,276 29,390

Construction in Progress 4,491 3,940 3,679 3,169

Accumulated Depreciation 25,493 24,421 24,971 23,698

Total Investments and Advances 3,886 2,627 2,792 2,683

LT Investment - Affiliate Companies 3,073 2,627 2,792 2,683

Other Long-Term Investments 813 - - -

Long-Term Note Receivable 202 111 109 85

Intangible Assets 33,788 37,046 38,072 31,544

Net Goodwill 18,202 18,381 18,757 15,501

Net Other Intangibles 15,586 18,665 19,315 16,043

Other Assets 1,944 2,126 1,581 1,433

Deferred Charges 1,111 1,432 1,088 1,048

Tangible Other Assets 833 694 493 385

Total Assets 92,187 92,377 92,918 78,547

Assets - Total - Growth -0.21% -0.58% 18.30% 1.16%

Asset Turnover 0.94 - - -

Return On Average Assets 9.66% - - -

All values USD Millions. 2022 2021 2020 2019

47
ST Debt & Current Portion LT Debt 3,897 4,754 4,240 3,362

Short Term Debt 801 882 882 514

Current Portion of Long Term Debt 3,096 3,872 3,358 2,848

Accounts Payable 10,732 9,834 8,853 8,013

Accounts Payable Growth 9.13% 11.08% 10.48% 11.09%

Dividends Payable 1,610 1,508 1,430 1,351

Accrued Payroll 2,519 2,324 2,059 1,835

Miscellaneous Current Liabilities 8,027 7,800 6,790 5,900

Total Current Liabilities 26,785 26,220 23,372 20,461

Current Ratio 0.80 0.83 0.98 0.86

Quick Ratio 0.61 0.66 0.80 0.70

Other Current Liabilities 12,156 11,632 10,279 9,086

Cash Ratio 0.20 0.23 0.41 0.28

Long-Term Debt 37,590 37,624 41,603 30,266

Long-Term Debt excl. Capitalized Leases 35,657 36,026 40,370 29,148

Non-Convertible Debt 35,657 36,026 40,370 29,148

Provision for Risks & Charges 3,037 3,568 4,508 3,767

Deferred Taxes (71) 516 (88) (268)

Deferred Taxes - Credit 4,133 4,826 4,284 4,091

Deferred Taxes - Debit 4,204 4,310 4,372 4,359

Other Liabilities 3,369 3,988 5,599 5,094

48
 Other Liabilities (excl. Deferred Income) 3,369 3,988 5,599 5,094

Total Liabilities 74,914 76,226 79,366 63,679

Total Liabilities / Total Assets 81.26% 82.52% 85.42% 81.07%

Common Equity (Total) 17,149 16,043 13,454 14,786

Common Stock Par/Carry Value 23 23 23 23

Additional Paid-In Capital/Capital Surplus 4,134 4,001 3,910 3,886

Retained Earnings 67,800 65,165 63,443 61,946

Cumulative Translation Adjustment/Unrealized For.

(12,948) (12,309) (11,940) (11,290)
Exch. Gain

Unrealized Gain/Loss Marketable Securities - - - -

Other Appropriated Reserves (2,354) (2,589) (3,536) (3,010)

Treasury Stock (39,506) (38,248) (38,446) (36,769)

Common Equity / Total Assets 18.60% 17.37% 14.48% 18.82%

Total Shareholders' Equity 17,149 16,043 13,454 14,786

Total Shareholders' Equity / Total Assets 18.60% 17.37% 14.48% 18.82%

Accumulated Minority Interest 124 108 98 82

Total Equity 17,273 16,151 13,552 14,868

Liabilities & Shareholders' Equity 92,187 92,377 92,918 78,547

49
  CURRENT RATIO - The current ratio is a liquidity ratio that measures a
company's ability to pay short-term obligations or those due within one year. It
tells investors and analysts how a company can maximize the current assets on its
balance sheet to satisfy its current debt and other payables

CURRENT RATIO = CURRENT ASSET / CURRENT LIABILITY

= 21499 / 26785

= 0.802 (2022 DATA)

 QUICK RATIO - The quick ratio measures a company's ability to quickly

convert liquid assets into cash to pay for its short-term financial obligations. A
positive quick ratio can indicate the company's ability to survive emergencies or
other events that create temporary cash flow problems.

QUICK RATIO = (Current Assets - Inventory) / Current Liabilities

= (21499 – 5222)/26785

50
  DEBT TO EQUITY RATIO - The debt-to-equity ratio (D/E ratio) shows how
much debt a company has compared to its assets. It is found by dividing a
company's total debt by total shareholder equity. A higher D/E ratio means the
company may have a harder time covering its liabilities.

DEBT TO EQUITY RATIO = TOTAL DEBT / SHAREHOLDER EQUITY

= 38391/92187

= 0.416 (2022 DATA)

 DEBT RATIO - The debt ratio is defined as the ratio of total debt to total assets,
expressed as a decimal or percentage. It can be interpreted as the proportion of a
company's assets that are financed by debt.

DEBT RATIO = TOTAL DEBT / TOTAL ASSETS

= 38391/92187

= 0.416

 INVENTORY TURNOVER RATIO - Inventory turnover is the rate that

inventory stock is sold, or used, and replaced. The inventory turnover ratio
is calculated by dividing the cost of goods by average inventory for the same
period

INVENTORY TURNOVER RATIO = Cost of Goods Sold / Average Inventory

= 5898/5222

= 1.1294

51
CHAPTER – 6

52
 CONCLUSION

6.1 RESULT AND FINDINGS

Neuromarketing is a field that combines neuroscience and marketing to understand and

influence consumer behavior. While I don't have access to real-time or future
neuromarketing studies since my training data only goes up until September 2021, I can
provide you with some general findings and insights that have emerged from
neuromarketing research up until that point. Please note that the field of neuromarketing
is continuously evolving, and new findings may have emerged since then. Here are some
key findings and insights from neuromarketing:

Emotional engagement: Neuromarketing research has shown that emotions play a crucial
role in consumer decision-making. Emotional engagement with a product or brand can
lead to stronger connections and higher purchase intent. By understanding the emotional
triggers of consumers, marketers can design more effective advertising campaigns.

Neurological response to advertising: Neuroimaging techniques, such as functional

magnetic resonance imaging (fMRI) and electroencephalography (EEG), have been used

53
to study the brain's response to advertising stimuli. These studies have revealed that
certain elements like storytelling, novelty, and positive emotions can enhance attention,
memory, and engagement with ads.

The power of branding: Branding has a significant impact on consumer decision-making.

Neuroscientific studies have demonstrated that strong brands can elicit positive emotional
responses, activate reward centers in the brain, and influence consumer preferences.
Consistent branding across different touchpoints helps build brand recognition and trust.

Impact of pricing: Neuroeconomic studies have explored the neural mechanisms behind
pricing decisions. Findings suggest that consumers' willingness to pay can be influenced
by various factors, including perceived value, reference prices, and pricing strategies such
as decoy pricing or framing effects. Neuromarketing research provides insights into how
pricing cues affect consumers' brain activity and subsequent purchasing behavior.

Attention and memory: Understanding how attention and memory work can help
marketers design more effective communication strategies. Attentional biases, such as the
brain's tendency to focus on salient or personally relevant information, can be leveraged
to capture consumers' attention. Additionally, memory encoding and retrieval processes
can be optimized to enhance brand recall and recognition.

Multisensory marketing: Neuromarketing studies have explored the impact of sensory

stimuli on consumer perception and preferences. Research indicates that multisensory
marketing approaches, such as combining visual, auditory, and tactile cues, can enhance
the overall consumer experience and improve brand perception.

Decision-making and consumer choice: Neuromarketing research has shed light on the
underlying neural processes involved in consumer decision-making. It has revealed that

54
decisions are often influenced by both rational and emotional factors. Understanding the
interplay between these factors can help marketers tailor their messages and offerings to
align with consumers' decision-making processes.

It's important to note that individual studies may have varying results, and the field of
neuromarketing is still evolving. Therefore, it's crucial to interpret these findings in the
context of specific studies and consider the broader body of research in the field.

6.2 LIMITATION

The human brain, is a mind boggling thing. It is loaded up with opposing wants and a
steaming chaos of sentiments not coordinated to the basic virtue of an anticipated
business exchange. It's an erratic black box. While neuromarketing, reveals the discovery,
it's not liberated from its own arrangement of restrictions.

• The exceptionally advanced innovations utilized right currently are costly.

Examinations are along these lines exorbitant to direct and short in time, which prompts
little examples. This makes it difficult to increase dependable bits of knowledge from
these examinations.

• Experiments should be directed in research facilities. It's difficult to imitate genuine

circumstances, as outside unsettling influence isn't normally present in a lab domain and
here and there subjects are limited in body development. Once more, this has
ramifications for the legitimacy of exploratory outcomes when you need to apply these in
reality.

• Only a solitary neuroimaging innovation, for example, fMRI, can be utilized at once.
This outcomes in a deficient comprehension of the connections between various
physiological procedures and conduct.

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• The same holds for non-neuroimaging gadgets, for example, EEG, the aftereffects of
which are considered separately. Besides, those gadgets are constrained in cerebrum
investigation prospects.

• Neuro-ethics. The field of neuromarketing is one that gets a lot of evaluate. A few
purchasers are apprehensive a "purchase button" exists in their cerebrum and
organizations will abuse it on the off chance that it is found. Besides, assurance of
powerless populace bunches is at present scant. Mindfulness and cognizance of study
goals, straightforwardness of showcasing methodologies being made from analyses and
enactment to go with the improvements in the field are for the most part regions needing
consideration. 31 Neuromarketing is directed in a fake situation and that places
constraints on the materialness of the discoveries in reality. In any case, it gives bits of
knowledge that would never be gathered in reality. You were unable to ask somebody
viewing a business on the off chance that they were more drawn in at second seven than
they were at second eight, yet with EEG, you can discover. You can't ask an individual
taking a gander at a print advertisement with a pooch, an item, and a value whether he
invested more energy taking a gander at the canine than the item, however you can make
sense of it with eye-following. What's more, in addition, you can utilize EEG on that to
follow out on the off chance that somebody who reacted decidedly to a promotion was in
any event, connecting with the item or whether she was simply grinning at a pooch.

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6.3 SUGGESTION AND CONCLUSION

Neuromarketing and its tools represent a modern and expanding field that generates
intense debate concerning ethical principles and the accuracy of its use. It is a new way of
studying marketing. In particular, it could become a useful support for marketing
applications to find the correct audience for a particular product. A thorough
understanding of brain cognitive mechanisms could find answers to many questions in
the field of marketing. It was found that people relate to various aspects like colour, smell
and visual aesthetics of the product more than we realize. Also, a strong sense of brand
recognition goes in with these factors. They feel losses and the fear of missing out greatly
which companies use to garner attention. Through the study conducted we can clearly see
how neuromarketing impacts consumer behaviour. People give into companies’ tactics
without realising. Neuromarketing helps bring the consumers towards the product in an
efficient and scientific manner. This field even though not relatively new, still has a lot to
garner. There are certain aspects of neuromarketing that are being used, without us even
realising how they affect our decision making. This is exactly why it has also gained
criticism, the question of neuro ethics come into play, to the point of how to protect the
consumers. Neuromarketing, if it is correctly used with particular attention to ethical

57
principles, it could help marketing operators understand how to present and sell products
more efficiently. In particular, it could become a useful support for marketing
applications to find the correct audience for a particular product, and lure the audience to
the product.

CHAPTER – 7
REFERENCE AND BIBLIOGRAPHY

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7 REFERENCE

Fugate, D. L. (2007). Neuromarketing: a layman’s look at neuroscience and its

potential application to marketing practice. Journal of Consumer Marketing

Barbasso, L., Tardivo, G., Viassone, M., & Serravalle, F. (2018). Neuromarketing in

Customer Behaviour—Customers’ Diencephalic and Mid-Brain Implications in

Purchase Dynamics.

https://www.bitbrain.com/blog/neuromarketing-examples-applications

Goguen, Kate, "The Influence of colour on purchasing decisions related to product

design" (2012).

https://www.impactbnd.com/blog/neuromarketing

Jordao, I. L. D. S., Souza, M. T. D., Oliveira, J. H. C. D., & Giraldi, J. D. M. E. (2017).

Neuromarketing applied to consumer behaviour: an integrative literature review

between 2010 and 2015. International Journal of Business Forecasting and Marketing

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Intelligence

https://www.newneuromarketing.com/six-inspiring-examples-of-neuromarketingdone-
right

WILSON, R. M., GAINES, J., & HILL, R. P. (2008). Neuromarketing and Consumer

Free Will. Journal of Consumer Affairs

Hilderbrand, Miranda L, Neuromarketing : an essential tool in the future of advertising

and brand development

Naman Sharma, Macit Koc, Jugal Kishore. (2014) Neuromarketing - A Step Ahead of

Traditional Marketing Tools. SSRN Electronic Journal.

Nyoni, Thabani and Bonga, Wellington Garikai, Neuromarketing: No Brain, No Gain!

(February 28, 2017). Dynamic Research Journals' Journal of Economics and Financ

Cynthia A. Bulley, Veronica Adu Brobbey and Esther O. Duodu, Measuring

Consumer Behavior Using Neuroscience Methods in Marketing, Exploring the

Dynamics of Consumerism in Developing Nations

https://www.sciencedirect.com/science/article/abs/pii/S0167876006001073

Agarwal, S., Dutta, T. Neuromarketing and consumer neuroscience: current

understanding and the way forward (2015)

Nadanyiova, M. (2017). Neuromarketing - An Opportunity or a Threat?

Neuromarketing - An Opportunity or a Threat?

Touhami, Zineb Ouazzani et al. “Neuromarketing: Where marketing and neuroscience

meet.” (2011).

https://www.researchgate.net/profile/Sunita_Kumar2/publication/288986334_Neuro

marketing_The_New_Science_of_Advertising/links/5687d77908ae051f9af58ba1.pdf

Annette Kortovna Simson, Neuromarketing, Emotions and Campaigns (2015)

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M

arketing Drive with Neuro-

marketing
Vrtana et al (2019) have
elaborated on the
concept of communication
as of the most
necessary tools for
marketing to attain the

61
company's strategic goals.
This can be
achieved by influencing the
consumer's
purchasing behaviour by
using tools such as
Neuro-marketing which
analyses brain activity
with various marketing
stimuli through sensory
stimulation.
This point has been
illustrated by the authors
(Vrtana et al., 2019) by
taking an example

62
from the Slovak Telekom
Group. This group
Marketing Drive with Neuro-
marketing
Vrtana et al (2019) have
elaborated on the
concept of communication
as of the most
necessary tools for
marketing to attain the
company's strategic goals.
This can be
achieved by influencing the
consumer's

63
purchasing behaviour by
using tools such as
Neuro-marketing which
analyses brain activity
with various marketing
stimuli through sensory
stimulation.
This point has been
illustrated by the authors
(Vrtana et al., 2019) by
taking an example
from the Slovak Telekom
Group. This group

64
65