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 Submitted by

MR. VIJAY LAKRA 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.

( )

Faculty of Management 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 MR.Vijay Lakra 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 &Analysis

4. 37

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 utility and individual sanity. Ordinarily, the daily schedule of a buy in a

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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 of neuronal action to an
extraordinary degree. Neuromarketing utilizes neuroscience to decide how buyers are

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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. Now and again, the psyche responses assessed by
6 these methods may not be intentionally observed by the subject; consequently, this

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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.
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

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 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
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.

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

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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 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.

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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
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.

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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
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.

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 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;
• Quaker Oats;
• Uncle chips;
• Aliva.

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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;
• Pepsi NEXT Cherry Vanilla;
• Pepsi NEXT Paradise Mango;
• Diet Pepsi Lime;
• Diet Vanilla Pepsi;

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

26
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.

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.

28
 CHAPTER – 2
LITERATURE REVIEW

29
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 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

30
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.

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.

31
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
 CHAPTER – 3
RESEARCH METHODOLGY

33
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
• 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

34
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

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.

35
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:

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

36
CHAPTER – 4
ANALYSIS

37
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

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.

38
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
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.

39
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. 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

40
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 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.

41
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 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.

42
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.

• 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.

43
 CHAPTER – 5

DATA
INTEPRETATION

44
Fiscal year is January-December. All values USD
2022 2021 2020 2019 2018
Millions.

Cash & Short Term Investments 5,348 5,988 9,551 5,738 10,990

Cash Only 4,954 5,596 8,185 5,509 10,718

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% 14.15%

Total Accounts Receivable 10,163 8,680 8,404 7,822 7,142

Accounts Receivables, Net 8,042 7,025 6,691 6,342 5,978

Accounts Receivables, Gross 8,192 7,172 6,892 6,447 6,079

Bad Debt/Doubtful Accounts (150) (147) (201) (105) (101)

Other Receivables 2,121 1,655 1,713 1,480 1,164

Accounts Receivable Growth 17.09% 3.28% 7.44% 9.52% -

Accounts Receivable Turnover 8.50 9.16 8.37 8.59 9.05

Inventories 5,222 4,347 4,172 3,338 3,128

Finished Goods 2,742 2,298 2,247 1,743 1,638

Work in Progress 114 151 205 200 178

Raw Materials 2,366 1,898 1,720 1,395 1,312

45
Fiscal year is January-December. All values USD
2022 2021 2020 2019 2018
Millions.

Other Current Assets 766 2,715 826 692 586

Miscellaneous Current Assets 766 2,715 826 692 586

Total Current Assets 21,499 21,730 22,953 17,590 21,846

Net Property, Plant & Equipment 26,664 24,427 23,039 20,853 17,589

Property, Plant & Equipment - Gross 52,157 48,848 48,010 44,551 40,164

Buildings 10,816 10,279 10,214 9,314 8,941

Land & Improvements 1,142 1,123 1,171 1,130 1,078

Machinery & Equipment 33,335 31,486 31,276 29,390 27,715

Construction in Progress 4,491 3,940 3,679 3,169 2,430

Accumulated Depreciation 25,493 24,421 24,971 23,698 22,575

Total Investments and Advances 3,886 2,627 2,792 2,683 2,409

LT Investment - Affiliate Companies 3,073 2,627 2,792 2,683 2,409

Other Long-Term Investments 813 - - - -

Long-Term Note Receivable 202 111 109 85 86

Intangible Assets 33,788 37,046 38,072 31,544 30,633

46
Fiscal year is January-December. All values USD
2022 2021 2020 2019 2018
Millions.

Net Goodwill 18,202 18,381 18,757 15,501 14,808

Net Other Intangibles 15,586 18,665 19,315 16,043 15,825

Other Assets 1,944 2,126 1,581 1,433 721

Deferred Charges 1,111 1,432 1,088 1,048 428

Tangible Other Assets 833 694 493 385 293

Total Assets 92,187 92,377 92,918 78,547 77,648

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

Asset Turnover 0.94 - - - -

Return On Average Assets 9.66% - - - -

47
 All values USD Millions. 2022 2021 2020 2019 2018

ST Debt & Current Portion LT Debt 3,897 4,754 4,240 3,362 4,026

Short Term Debt 801 882 882 514 73

Current Portion of Long Term Debt 3,096 3,872 3,358 2,848 3,953

Accounts Payable 10,732 9,834 8,853 8,013 7,213

Accounts Payable Growth 9.13% 11.08% 10.48% 11.09% -

Dividends Payable 1,610 1,508 1,430 1,351 1,329

Accrued Payroll 2,519 2,324 2,059 1,835 1,755

Miscellaneous Current Liabilities 8,027 7,800 6,790 5,900 7,815

Total Current Liabilities 26,785 26,220 23,372 20,461 22,138

Current Ratio 0.80 0.83 0.98 0.86 0.99

Quick Ratio 0.61 0.66 0.80 0.70 0.85

Other Current Liabilities 12,156 11,632 10,279 9,086 10,899

Cash Ratio 0.20 0.23 0.41 0.28 0.50

Long-Term Debt 37,590 37,624 41,603 30,266 28,295

Long-Term Debt excl. Capitalized Leases 35,657 36,026 40,370 29,148 28,295

Non-Convertible Debt 35,657 36,026 40,370 29,148 28,295

Provision for Risks & Charges 3,037 3,568 4,508 3,767 3,200

48
 All values USD Millions. 2022 2021 2020 2019 2018

Deferred Taxes (71) 516 (88) (268) (865)

Deferred Taxes - Credit 4,133 4,826 4,284 4,091 3,499

Deferred Taxes - Debit 4,204 4,310 4,372 4,359 4,364

Other Liabilities 3,369 3,988 5,599 5,094 5,914

Other Liabilities (excl. Deferred Income) 3,369 3,988 5,599 5,094 5,914

Total Liabilities 74,914 76,226 79,366 63,679 63,046

Total Liabilities / Total Assets 81.26% 82.52% 85.42% 81.07% 81.19%

Common Equity (Total) 17,149 16,043 13,454 14,786 14,518

Common Stock Par/Carry Value 23 23 23 23 23

Additional Paid-In Capital/Capital Surplus 4,134 4,001 3,910 3,886 3,953

Retained Earnings 67,800 65,165 63,443 61,946 59,947

Cumulative Translation Adjustment/Unrealized For.

(12,948) (12,309) (11,940) (11,290) (11,918)
Exch. Gain

Unrealized Gain/Loss Marketable Securities - - - - 2

Other Appropriated Reserves (2,354) (2,589) (3,536) (3,010) (3,203)

Treasury Stock (39,506) (38,248) (38,446) (36,769) (34,286)

49
 All values USD Millions. 2022 2021 2020 2019 2018

Common Equity / Total Assets 18.60% 17.37% 14.48% 18.82% 18.70%

Total Shareholders' Equity 17,149 16,043 13,454 14,786 14,518

Total Shareholders' Equity / Total Assets 18.60% 17.37% 14.48% 18.82% 18.70%

Accumulated Minority Interest 124 108 98 82 84

Total Equity 17,273 16,151 13,552 14,868 14,602

Liabilities & Shareholders' Equity 92,187 92,377 92,918 78,547 77,648

50
 • 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

• 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)

51
 • 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

52
CHAPTER – 6
CONCLUSION

53
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
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

54
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
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.

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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.

• 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

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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 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.

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 CHAPTER – 7
REFERENCE AND BIBLIOGRAPHY

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7 REFERENCE

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