The association between advertising, profit and sales volume of beverage companies in India

Advertising is a type of message that attempts to infer the virtues of products, services and ideas in terms of consumer needs and wants. Some companies or organizations embrace advertising to achieve goodwill, high market share and sales. Good quality of advertisement plays a major part in creating customer fidelity and brand confidence resulting in enhancement of sales and profit. This research work examines the association between advertisement expenditure, sales and profit of twelve beverage companies listed on the Bombay Stock Exchange for the period 2009 to 2013.The data is analyzed using correlation and regression analysis. The outcome exposed that all the dimensions which have been used in the study are positively related to each other.