Chapter-1

INTRODUCTION
1.1Background of the Study:
Advertising is one of the most important marketing activities in the modern world. Globalization has increased its importance. Advertising is the impersonal method of communicating messages to prospective buyers. It is also the art of persuasion of human minds through a range of communication media. It aims to create positive impressions about a brand, an organization, or an idea. The American Marketing Association defines advertising as any paid form of non-personal presentation of goods, services or ideas for action, openly paid by an identified sponsor. The advertising is salesmanship in print, voice and visual. The field of advertising is made up of a system of interacting institutions that play their role in creating and executing the advertising process. This study has been carried out study the benefits of using colour identified by a company. In order to study he stated topic Ncell has been chosen. Ncell private limited stands as a privately owned GSM services in telecommunication sector of Nepal with the brand name Mero Mobile, which was re-branded as Ncell in 12 March 2010. Ncell with a new brand identity including a new brand symbol in the shape of a hitek stone in rich purple colour replaced the brand Mero Mobile with its red and yellow colouring. The stone symbolizes connectivity and connection between people. The purple colour is energizing and inspiring, it reflects the creativity passion and reliability with which Ncell will continue to serve its customers.

1.2 Statement of Problem:

In order to conduct this study following problems have been raised: What colour is used by Ncell? Why they use that colour? How they decide which colour to use? What is the result of using the colour?

1.3 Objective of the Study:

The main objective of the study is to solve the problems that have been raised. To meet the main objective some sub-objectives are set which are as follows: To collect the advertising information of Ncell. To seek reasons why the company uses colour in advertising. To provide suitable suggestions.

1.4 Importance of the Study:

The importance of the study can be highlighted in following points: It is a part of BBA curriculum and carries certain portion of internal evaluation. The study bridges the gap between the theoretical knowledge that has been gained in the classroom and the real world practice. The findings of the study can become a source of information to the readers who in future tend to study and analyze this topic. This study will also be helpful in making appropriate improvement in the current situation of advertising in the company.

1.5 Limitations of the Study:

This study covers only a small segment of advertising i.e. colours. Other aspects of advertising and marketing are not included in this study. This study is based on a single organization and its findings cant be generalized and used for other organizations.

1.6 Organization of the study:

The entire study is organized into five chapters: Chapter1- Introduction Chapter2- Literature Review Chapter3- Research Methodology Chapter4- Data Presentation and Analysis Chapter 5- Summary and Conclusion

Chapter-2
LITERATURE REVIEW
2.1 Meaning of Literature Review:
A literature review is a description if the literature relevant to a particular field or topic. It is a critical and in depth evaluation of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. A literature review can also be interpreted as an abstract accomplishment. It is secondary source and does not report any new or original experiment work. A literature review is the process of locating, obtaining, reading and evaluating the research literature in the area of your interest.

2.2 Types of Literature Review

There are three types of literature review. They are: 2.2.1 Conceptual review 2.2.2 Previous studies 2.2.3 Pilot works

2.2.1 Conceptual Review

It is the description of abstract idea related to the topic. Therefore, it includes concept, qualities, types, benefits, etc. Concept Color is the sensation produced by the wave of light. It is the important visual elements affecting the effectiveness of advertisement. It is a communicative tool in advertising as it conveys various meanings. Qualities of Color Any color has three qualities: Hue: It is the quality of color which makes one color distinct from next color. E.g.: red is distinct from green. Value: It is the quality of a particular color which shows it either bright or light. E.g.: dark green and light green. Chroma: It is the quality of intensity and purity of color.
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Types of Color Naturally, there are seven types of color. They are red, blue, yellow, green, orange, violet and indigo. Among these, red, blue and yellow are primary color. These colors are mixed to produce other colors according to the needs of advertiser. Color Connotation Different colors symbolize different meanings. Advertisers use various colors to express different meaning. For example: green is used to indicate freshness. However, the interpretations of colors vary according to the cultures and societies. The normal connotations of different colors are as follows: Red: It is emotionally intense color and is associated with energy, war, danger, strength, and determination. It has high visibility. Advertiser uses this color to stimulate people to make quick decisions. Orange: It is associated with joy and represents enthusiasm, fascination, creativity and happiness. It stimulates mental activity and is very effective for promoting food products. Yellow: It is the most eye catching color. It is used to highlight the most important elements of message. Green: It symbolizes freshness, fertility, growth and harmony. It is used to express freshness in products. Blue: It is associated with depth and stability. It symbolizes loyalty, trust, confidence and wisdom. Light blue makes people feel cool and peaceful. Dark blue symbolizes class and royalty. White: It symbolizes purity, safety, economy, goodness and innocence. It is used to convey safety and simplicity in products. Purple: It is the color of royalty and connotes luxury, wealth and nobility. It conveys wealth and extravagance. Benefits of Color Benefits are the advantages obtained by the firm using colors. Different benefits obtained by a firm using colors are as follows: The use of color makes advertisement attractive. Thus, it draws the attention of the target audience. Colors give different meanings which can highlight the purpose of products. Colors create different moods, encouraging them to buy advertised products.
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Colors add reality and value to the advertisement which increase consumers desire to buy the product.

2.2.2 Previous Studies

Researches related to benefits of colors in advertising were not found. However, some researches in preference and effects of colors were conducted.
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The study on preference of color by Faber Birren (2003) had following objective:

To know peoples preferences of colors based on age group and gender. The findings of the study are divided into three sections and are expressed in percentage. The first section shows the favorite color of all participants regardless of age and gender. Colors Blue Black Yellow White Red Purple Orange Grey Green Brown Participants (%) 42 7 3 2 8 14 5 2 14 3

Birren noted that blue is the most favorite color. People tend to like hue of blue because of its calming and relaxing effect.

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When Birren further examined the data to know preferences of male and female, he came up with the following results: Table for female Table for male

Colors Blue Black Yellow White Red Purple Orange Grey Green Brown

Participants (%) 35 6 3 1 9 23 5 1 14 3

Colors Blue Black Yellow White Red Orange Grey Green Brown

Participants(%) 57 9 1 2 7 5 3 14 2

Blue is the most favorite color of both male and female. Second favorite color for male is green followed by black; for female it is purple followed by green.

Birren also found that color preference differs by age of the participants.
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Blue color maintains a high preference throughout life. Yellow is well liked by children but begins to droop down as people become older. With maturity, people like hues of shorter wavelength (blue, green and purple) than hues of longer wavelength (red, orange and yellow). As people become older, preference for purple increases whereas, preference for green decreases. Preference of people change as a result of social and cultural influence.

The next study on the positive and negative traits of colors in emotion by Claudia Cortes (2006) had following objective: To know the emotions associated with specific color.

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The findings of the research were: Color Red Blue Orange Yellow Green Purple
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Positive traits Active, emotional Faithful, traditional Ambition Lively, energetic Calm, neutral Leadership, passive

Negative traits Offensive, embarrassed Depressed Tiring Cautious Greedy, sick Arrogant, sorrow

Emotions Anger, love Confident, sadness Joy, determination Fear, joy, happiness Faith, greed Introspective, melancholic

Another study on effects of color by Susan Gunelius (2008) had following objective: To know the effects of colors on brands and consumers

The study had the following findings:

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Colors increases brand recognition up to 80%. Ads in color are read up to 42% more than the same ads in black and white. Color increases readability to 40%, ability to remember- 55% to 78% and understanding73%.

Some other previous studies show the following findings: A research was made at COLOR EXPO 2004 in Seoul which showed that 92.6% of the respondents gave attention to appearance, 5.6% to touch and 0.9% to hearing and 0.9% to smell. Later, another survey was made and it showed that 84.7% of the respondents told that colors have the biggest influence to their choice. CCICOLOR research showed that people make a subconscious judgment about a person, environment or product within 90 seconds or initial viewing. And between 62% and 90% of that assessment is based on color alone. Psychologists noticed that colors stimulate our brains to remember things better.

2.2.3 Pilot Works

A pilot study is a small-scale methodological test intended to ensure that proposed methods and procedures will work in practice before being applied in a large, expensive investigation. It provides opportunity to make adjustments and revisions before investing in and incurring the heavy costs associated with a large study.

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Chapter-3
RESEARCH METHODOLOGY
3.1 Meaning of Research:
Research Methodology is simply the method of finding out solution of particular problem. In other words, research methodology is process of finding something new to solve particular problem through planned and systematic dealing with collection, analysis and interpretation to the facts and figures.

3.2 Design of the Research Methodology:

Generally, design of research is descriptive and explorative in nature. To achieve the objective of study, both descriptive and explorative designs have been used.

3.3 Nature and Sources of Data:

Data are collected from different sources by visiting different places and medium. Here, primary data as well as secondary data are collected for study. a) Primary data: Primary data is first time in nature which is not published and not recorded earlier. The source of primary data is authorized body. For primary information, group has consulted proprietor and staffs of N cell Private Limited. b) Secondary data: Data from source that has already been published in any form is secondary data. Group collected secondary data through website of company, reference book, Annual General Meeting (AGM) report of company and other published documents.

3.4 Sample Decision:

Sampling is selection of certain proportion/ unit/ percentage of whole population or universe. It is expressed either in percentage or unit. There are random sample and judgmental sample but study is based on judgmental technique of sampling.

3.5 Data Collection Procedures:

The data collection methods used for this study are as follows: Primary data collection method: For collection of primary data, group visited organization, prepared questionnaire and consulted proprietor and requested to fill the questionnaire. Also, observation technique has been taken into account for primary source. Secondary data collection method: Secondary data have been collected by using following procedure: Prior approval has been taken from concerned authorities and data has been provided by organization
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3.6 Data Presentation Technique:

Data can be presented by using quantitative and qualitative technique. Quantitative technique is those in which data is presented with the help of figures, pie-chart, table etc. In qualitative technique, data are presented in language. Since the study is based on qualitative technique and does not require quantitative technique; it has been presented in terms of points and headings and explained accordingly. Here, heading of the study (Benefits of Colors) itself is qualitative in nature. So, only qualitative technique is used.

3.7 Data Analysis and Interpretation Technique:

Only descriptive designs are used as the study is based on qualitative techniques. Data analysis and information technology are presented in descriptive form and they has not been presented in pie-chart, trend line. But only at some places, tables have been made.

Chapter-4
Data Presentation Analysis and Interpretation
This chapter is important part of the study because it tries to meet the objectives of the study. It means it attempts to find the solutions to the problems stated in the earlier chapter (i.e. chapter 1). In order to conduct this study in chapter 3 research methodology has been developed. The format has been developed according to the research methodology. The data collection procedure stated in the research methodology helped researcher to develop questionnaire. The researcher went to N Cell Pvt. Ltd to fill the questionnaire. The obtained data has been presented in different forms depending upon the quality and quantity of data. The explanation of these obtained data is as under:

4.1 Types of Ad Agency Used by Ncell

Ad agency is an independent business firm that specializes in creation, development, production and dissemination of ad message. It has direct link with the media. Ad agency makes media available for advertisers. Ad agency can be in-house or outsource agency. Ncell uses outsource agency (Prisma Advertising Private Limited) to prepare its advertisement. As more manpower is required in inhouse agency, Ncell outsource ad agency o avoid over staffing. Prisma Advertising Private Limited is used by Ncell for advertising purpose. It is one of the leading ad agencies of Nepal. It includes lots of specialized people for specialized functions such as creation, development, production and dissemination of ad messages.

4.2

Practice of Media Planning and Scheduling in Prisma Advertising Private Limited

Media planning is a process of determining media mix to achieve specific ad objectives. Media mix is the combination of electronic, display and print media and their vehicles. Prisma Advertising Private Limited decides the media mix to be used for advertisement of Ncell. Depending upon the specific ad objectives of Ncell, Prisma Advertising uses electronic, print and display media for advertisement. In electronic media, television, radio and internet are used to convey messages. In television, different channels like Nepal Television, Kantipur, Avenues, Channel Nepal and Sagarmatha are used for the very purpose. In print media, newspapers and magazines are used. In case of newspaper, Kantipur, Himalayan Times, Kathmandu Post and Nagarik are used.

Media scheduling is the process of determining time and space in selected media by entering into contract for ad release. In television, the ads of Ncell are scheduled in the
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middle of news and before the programs. In newspaper, the ads of Ncell are scheduled in the front page and middle page.

4.3 Use of Colour and Its Benefits to Ncell

Colour is the sensation produced by the wave of light. It is sensed by the eyes of target audiences. Naturally, there are seven colours (red, blue, yellow, green, orange, violet and indigo). Other colours are produced by combining these primary colours according to need of the advertiser. Colour is widely used in advertisements. Different colours have different meanings like red implies danger; white denotes simplicity; green indicates freshness etc. Ncell uses purple colour in its advertisement to attract the target audience as purple colour is highly visible and provides realism. Purple also symbolizes luxury and royalty. Purple has become replica of Ncell. Using this colour, Ncell has been successful in building brand identity, brand image and attracting large number of people.

4.4 Ad Budget in Ncell

Ad budget is the total amount to be spent on various activities for releasing advertisement. It helps an organization (advertisers) to facilitate ad programs and achieve ad objectives. Ad budget is one of the base on which firms compete with each other. To know competitors ad budget, competitors advertising strategy should be analyzed. The analysis is done annually, quarterly or regularly. But, this is not applicable in Ncell. Ad budget is allocated considering the ad objectives, market coverage, nature of products, competitors budget, economic condition of market and so on. There are different methods of budget allocation. They are percentage of sales, competitive parity, return on investment, affordability, arbitrary and so on. Ncell uses incremental method for budget allocation. However, the amount of budget allocated for advertisement purpose is not disclosed by Ncell.

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Chapter-5
SUMMARY AND CONCLUSION
5.1 Summary
This study is on Benefits of Colour Realised by NCell Pvt. Ltd. This study is the part of BBA program. It enhances the practical knowledge regarding benefits of colour in advertising. To know the benefits an organization achieve by using colours in its advertisements different statement of problems have been raised such as : What colour it uses? Why they use that colour? How they decide which colour to use? And what is the result of using the colour? The study aims at collecting facts and figures to solve the earlier raised statement of problems. Beside this, it also provides suitable suggestions. Moreover, it bridges the gap between theory and practice. But the study is limited to benefits of colours in advertising for a specific organization only, which is a very small part of advertising. So, the findings may not be applicable to other organizations. A literature review is the process of locating, obtaining, reading and evaluating the research literature in the area of interest. Different types of literature review such as conceptual review, previous studies and pilot works have been included in this study. Conceptual review is the description of abstract idea related to the topic. It includes the concept, qualities, types and benefits of colour in advertising. Researches related to benefits of colour in advertising were not found. However, some researches in preference and effects of colours were conducted. Researches conducted by Faber Birren (Study on preference of colour), Claudia Cortes (Study on the positive and negatives traits of colours in emotion), Susan Gunelius (Study on effects of colour) and other studies on colour are included in the study. A pilot study is a small-scale methodological test intended to ensure that proposed methods and procedures will work in practice before being applied in a large, expensive investigation. It provides opportunity to make adjustments and revisions before investing in and incurring the heavy costs associated with a large study. A research is a procedure based activity. The statements of problems raised in research are solved by following certain methods. The same has been done in this research. Generally, research designs are descriptive or explorative. Both research designs are used for the study. Data collected for the study are primary data and secondary data. Primary data are first hand data which have not been published or recorded earlier and are collected by interacting with the related persons. Secondary data are published or recorded data obtained from organization. Data can be presented in language whereas quantitative data are presented in figures.

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NCell Private Limited is chosen for this research. NCell private limited stands as a privately owned GSM services in telecommunication sector of Nepal with the brand name Mero Mobile, which was re-branded as NCell in 12 March 2010.NCell with a new brand identity including a new brand symbol in the shape of a hitek stone in rich purple colour replaced the brand Mero Mobile with its red and yellow colouring. The stone symbolizes connectivity and connection between people. The purple colour is energizing and inspiring, it reflects the creativity passion and reliability with which NCell will continue to serve its customers. A questionnaire was prepared for collecting data about the advertisement process in NCell. Several questions related to the topic have been raised and asked with the hope of meeting the objective of the study. All data obtained from NCell are primary data since they are collected by interviewing the authorized person of the organization. Since, the topic of this study is benefits of colours, data analysis and interpretation are descriptive.

5.2 Conclusion:
Based on data collected through the questionnaire, the following findings have been derived: NCell uses Prisma Advertising Pvt. Ltd. in making its advertisements to avoid over staffing. Prisma has selected electronic, print and display media for advertisements depending upon the specific ad objective of NCell. In electronic media vehicle used are television, radio and internet. In television, different channels like Nepal Television, Avenues, Kantipur, Channel Nepal and Sagarmatha are used. The advertisements are scheduled in the middle of the news and before programs. In print media magazines and newspapers like Kantipur, Nagarik, Himalayan Times and Kathmandu Post are used. The ads in the newspaper are scheduled in the front page and middle page. NCell uses purple colour in its advertisement to attract target audience aas purple coour is highly visible and provides realism. With the use of purple colour in its advertisement, the company has been successful in building brand identity, brand image and attracting large number of people. NCell uses incremental method to allocate ad budget. However, the amount of ad budget is not disclosed.

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