Impact of celebrity endorsement on consumer buying behavior in prospect of soft drinks (autosaved)


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Impact of celebrity endorsement on consumer buying behavior in prospect of soft drinks (autosaved)

  1. 1. 1A Grand Project onImpact of Celebrity Endorsement onConsumer Buying Behavior withrespect to Soft DrinksPrepaid by Guided byHardik D Jani (Roll no: 35) Prof .Kruti PatelMBA Semester 4Submitted toS K P I M C S
  2. 2. 2DECLARATIONWe/ I, hereby, declare that the Comprehensive Project report Project titled,―Impact of celebrity endorsement on consumer buying behavior with respect tosoft drink industry ‖ is original to the best of our/ knowledge and has not beenpublished elsewhere. This is for the purpose of partial fulfillment of Kadi SarvaVishwa Vidhyalaya University requirements for the award of the title of Masterof Business Administration, only.Student Name SignatureHardik Jani (35)
  3. 3. 3CERTIFICATEThis is to certify that Mr.Chaitalya Gadhavi of S. K. Patel Institute of Management andComputer Studies, Gandhinagar have submitted their Grand Project Report on ―Impactof Celebrity Endorsement on Consumer Buying Behavior with respect toSoft Drinks‖ in the year of 2012-2013 in fulfillment of Kadi Sarva Vishwvidhlayarequirements as a part of their course of MASTER OF BUSINESSADMINISTRATION PROGRAMME.Dr. Bhavin pandya Prof. Kruti patel Prof. Sandhya harkavatDirector Faculty guide Coordinator
  4. 4. 4PrefaceEveryday consumers are exposed to thousands of voices and images inmagazines, newspapers, billboards, websites, radio and television, etc. Everybrand attempts to steal at least fraction of a person‘s time to inform him/her ofthe amazing and different attributes of the product at hand. The challenge of themarketer is to find a hook that will hold the subject‘s attention. In helping toachieve this, use of celebrity for endorsement of a brand is widely usedmarketing strategy. In this modern age, people tend to ignore all commercialsand advertisements while flipping through the magazines and newspapers orviewing TV. But even then, the glamour of a celebrity seldom goes unnoticed.Thus, celebrity endorsement in advertisement and its impact on the overallbrand is of great significance. In this process, the companies hire celebritiesfrom a particular field to feature in its advertisement campaigns. Thepromotional features and images of the product are matched with the celebrityimage, which tends to persuade a consumer to fix-up his choice from a varietyof brands. Although this sounds pretty simple, but the design of such campaignsand the subsequent success in achieving the desired result calls for an in-depthunderstanding of the product, the brand objective, choice of a celebrity,associating the celebrity with the brand, and a framework for measuring theeffectiveness.Stars, who are known to shape destinies, cast an enormous influence. We‘rereferring to the powerful effect of celebrities on destinies of brands. Oneapproving nod from a famous face can translate into millions in brand sales.People love to live in dreams. They worship celebrities. Celebrities may besports stars like Sachin Tendulkar, Mahindra Singh Dhoni,RogerFederer.Ronaldo and tiger woods‘ or Film Stars like tom cruise, bredd pitt,Salman Khan, John Abraham. They treat them as God. . Perhaps that‘s why theworld over, companies have been using stars to endorse everything, from foodto food chains, from soft and hard drinks to health drinks, from clothes andaccessories to cars. For this they rope in these celebrities and give themwhopping amount of money. They believe that by doing this they can associatetheir products with their target customers. This is called celebrity endorsement.
  5. 5. 5AcknowledgmentI express my sincere thanks to my project guide Prof.Kruti Patel for guiding meright from the inception till the completion of the project. I sincerelyacknowledge them for extending their valuable guidance, support for literature,critical reviews of project and above all the moral support they had provided tome with all stages of this project.
  6. 6. 6Table of ContentTopic Page NoExecutive Summery 7Industry analysis 8Literature Review 18Theoretical aspect of the study 22Research Methodology 31Data analysis 33Findings 46Limitations 47Conclusion 48Bibliography 49
  7. 7. 7EXECUTIVE SUMMARYIndia is a country where people love to live in dreams. They worshipcelebrities.Celebrities which might be cricket stars like Sachin Tendulkar,Mahinder Singh Dhoni or Film Stars like Shah Rukh Khan or John Ebrahim.They treat them as God. Marketers use this very preposition so as to influencetheir target customers may exist or potential ones. For this they rope in thesecelebrities and give them whopping amount of money. They believe that bydoing this they can associate their products with their target customers. This iscalled celebrity endorsement.The field of consumer behavior is the study of individuals, groups ororganizations and the processes they use to select, secure, use and dispose ofproduct, services, experiences, or ideas to satisfy needs and impacts that theseprocesses have on the consumer and society. And understanding the consumerbehavior is the prime and toughest task in front of every marketer. There are alot of factors, which influence consumer buyer behavior. This study aimed at tounderstand the influence of celebrity endorsement on consumer buyingbehavior. Marketers pay millions of Dollars to celebrity endorsee hoping thatthe stars will bring their magic to brand they endorse and make them moreappealing and successful. But all celebrity glitter is not gold.The celebrity endorser fits in between these two interactions, where he tries tobring the image of the product closer to the expectation of the consumer, bytransferring some of the cultural meanings residing in his image to the product.Now, despite the potential benefits derived from celebrity endorsements, theyincrease a marketer‘s risk manifolds and should be treated with full attentionand aptitude.What therefore seems relevant by the study is that, yes, definitely celebrityendorsee influence consumer buying behavior and brand building but whileusing celebrity endorsee, marketer has to take care of all the aspect that whetherthey brought personality and image of celebrity matches or not, whethercelebrity endorsee has deep penetration among the masses or not, whether he isconsidered as credible source or not etc.
  8. 8. 8Industry AnalysisIndian Advertisement IndustryIndian economy is growing and the market is on an expansion mode.Businesses are looking up to advertising as a tool to cash on businessopportunities. Growth in business has led to a consequent growth in theadvertising industry. Indian advertising industry has emerged as one of themajor industries and has broadened its horizons be it the creative aspect, thecapital employed or the number of personnel involved.Advertising industry grew by 9 to 10 per cent in comparison to the double digitgrowth rate of 20 per cent in 2010. According to ad industry estimates, thegrowth this year has been similar to 2011.The Rs 30,000-crore advertising industry has been dealing with tightened pursestrings as companies across sectors dealt with issues ranging from rising inputcosts to demand slowdown on account of lower disposable income andinflation. The big boys of the advertising club — fast moving consumer goods(FMCG) companies — were careful with their money, especially in the firsthalf of the year, complicating matters further. Sample this: Ad spends by FMCGcompanies have been hovering between 12-13 per cent of sales from 14 -15 percent earlier.
  9. 9. 9India stands at No. 5 worldwide in the advertisement industry. Television -Valued at Rs 329 billion (US$ 5.76 billion) in 2011, the television (TV)industry is expected to expand at a compounded annual growth rate (CAGR) of17 per cent through 2011-16 to touch Rs 735 billion (US$ 13 billion). Radio-The radio industry with around 36 FM radio operators, is estimated at Rs 1,200crore (US$ 210 million). Print- An estimated growth of 10 per cent isanticipated till 2015. Digitization- Digital advertising is expected to grow at aCAGR of 30 per cent during 2011-16.
  10. 10. 10Introduction to the Soft drink Industry:The industry began in mid 1900‘s with leading companies like Pepsi Co. andCoca Cola controlling the beverage business sector with sweetened softdrinks and carbonated soda water. American audiences attached excitementand convenience to these popular drinks, and a variety of soft drink brandsbegan to originate such as Dr.Pepper, Sprite, etc. The beverage industry hasundergone rapid expansion over the last decade. The only obstacle for thesebeverage companies was the high number of calories and sugar levels theirdrinks contained; a drawback for health-conscious consumers.A soft drink (also called pop, soda, coke, soda pop, fizzy drink, or carbonatedbeverage) is a non-alcoholic beverage that typically contains carbonatedwater, a sweetening agent, and a flavoring agent. The sweetening agent maybe sugar, high-fructose corn syrup, or a sugar substitute (in the case of dietdrinks). A soft drink may also contain caffeine or juice. Products such asenergy drinks, Kool-Aid, and pure juice are not considered to be soft drinks.Other beverages not considered to be soft drinks are hotchocolate,hot,tea,coffee,milk,milkshakes,and schooled.Small amounts of alcohol may be present in a soft drink, but the alcoholcontent must be less than 0.5% of the total volume. If the drink is to beconsidered non-alcoholic. Widely sold soft drink flavors are cola, lemon-lime, root beer, orange, grape, vanilla, ginger ale, fruit punch, sparklinglemonade, squash, and water. Soft drinks may be served chilled or at roomtemperature. They are rarely heated.The first marketed soft drinks (non-carbonated) in the Western worldappeared in the 17th century. They were made from water and lemon juicesweetened with honey. In 1676, the Companies des Lemonades of Paris wasgranted a monopoly for the sale of lemonade soft drinks. Vendors carriedtanks of lemonade on their backs and dispensed cups of the soft drink tothirsty Parisians.
  11. 11. 11Carbonated drinks made without any alcohol are called Soft Drinks. They arealso known as Coke/Soda/Pop etc. Hot chocolate, teas, coffee etc are usuallyexcluded from this classification. They are sold in a variety of sizes andmanner. In the U.S., they are often sold in two-liter bottles, one liter plasticbottles, 24 and 20 US fluid ounce bottles and in 12 US fluid ounce cans.Packaging is also available in many different quantitiesIn Japan, 1.5 liter bottles, 500 mL and 350 mL bottles and cans are sold. Attimes, the fizzy soft drinks are served as fountain drinks in which carbonationis added to a concentrate immediately prior to serving. In Europe, plastic andglass bottles of sizes 2, 1.5, 1, 0.5, 0.35, 0.33 liters, aluminum cans of 0.33,0.35, and 0.25 liters are popular. Almost all soft drinks are made of refinedsugars. Hence, they are often criticized for causing obesity and other healthrelated problems. A link to problems of sleep, bones, and teeth has beenproven by many studies.Market Structure:The soft drink industry is a global marketing phenomenon. In essence, it issimply a blended water drink with sweeteners, flavors and additives. Thesuccess in advertising and marketing this product lies in convincing billionsof consumers to drink these instead of straight water or other less expensingalternatives. The brand recognition of this industry is extraordinarily high. In2002, world sales exceeded US $193 billion. In contrast, fruit sales were justUS $69 billion. Global consumption is currently in excess of 327 billionliters.Pepsi and Coca-Cola, between them, hold the dominant share of the worldmarket. Cadbury Schweppes follows a close third. Coca-Cola hasapproximately half of the world market share and sells 4 out of the top 5 softdrink brands in the world. Coca Cola sales for 2006 reached US $24.1 billion.It has profit margins of 20% and a market capitalization of US $130 billion.Pepsi sales stood at US $36 billion but this also includes snacks and otherfoods.Some analysts view the definition of soft drinks incomplete and wish to addready to drinks also, to this industry. If they are added as well, these wouldadd another 1.3 billion servings to 50 billion servings for these drinks.
  12. 12. 12Industry Definitions: Fizzy drinks: drinks injected with carbon dioxide at high pressure are calledFizzy drinks. Floats: soft drink with scoops of ice-cream Soda: another term for soft drink Pop: another U.S. term for soft drinks Coke: a derivative and brand name of Coca-Cola, often used as a label forsoft drinks in general.Market Metrics:Soft drink market size for FY00 was around 270mn cases (6480mn bottles).The market witnessed 5- 6% growth in the early‗90s. Presently the marketgrowth has growth rate of 7- 8% per annum compared to 22% growth rate inthe previous year. The market size for FY01 is expected to be 7000mnbottles.Soft Drink Production areaThe market preference is highly regional based. While cola drinks have mainmarkets in metro cities and northern states of UP, Punjab, Haryana etc.Orange flavored drinks are popular in southern states. Sodas too are soldlargely in southern states besides sale through bars. Western markets havepreference towards mango flavored drinks. Diet coke presently constitutesjust 0.7% of the total carbonated beverage market.Growth promotional activitiesThe government has adopted liberalized policies for the soft drink trade togive the industry a boast and promote the Indian brands internationally.Although the import and manufacture of international brands like Pepsi andCoke is enhanced in India the local brands are being stabilized byadvertisements, good quality and low cost.
  13. 13. 13U.S. MarketThe U.S. is closely linked with soft drinks with Coca Cola being an Americanin much of the world. About 500 soft drinks companies operate in the U.S.Annual sales of refreshments total approximately US $88 billion, of whichthree quarters are soft drink sales. There are about 500 soft drink bottlers inthe United States.Soft drink companies manufacture and sell beverage syrups which areessentially bases to bottling operators that then add sweeteners and/orcarbonated water to produce the final product. Independent bottlers workunder license with various soft drink manufacturers and are generally allottedspecific territories to serve. Manufacturers not only provide the bottlers withsyrups and bases, but also often provide other business services such asproduct quality control, marketing, advertising, and engineering as well asfinancial and personnel training.In return, the bottlers furnish the required capital investment for land,buildings, machinery, equipment, trucks, bottles and cases. As notedpreviously, the soft drink industry distributes and sells its product in twoprimary forms: packaged and fountain service. In fountain service, the softdrink product is dispensed and served in cups in restaurant or other retailoriented location with a food service station.Coke, Pepsi and CadburySchweppes control over 91% of the U.S. market share. They employ about63,000 people in the U.S.Indian MarketSoft Drinks in India industry profile provide top-line qualitative andquantitative summary information including: market size (value, and forecastto 5). The profile also contains descriptions of the leading players includingkey financial metrics and analysis of competitive pressures within the market.Essential resource for top-line data and analysis covering the India soft drinksmarket. Includes market size data, textual and graphical analysis of marketgrowth trends, leading companies and macroeconomic information.
  14. 14. 14Highlights-The soft drinks market consists of retail sale of bottled water, carbonates,concentrates, functional drinks, juices, RTD tea and coffee, and smoothies.However, the total market volume for soft drinks market excludes theconcentrates category. The market is valued according to retail selling price(RSP) and includes any applicable taxes. Any currency conversions used inthe creation of this report have been calculated using constant 2010 annualaverage exchange rates.-The Indian soft drinks market generated total revenues of $3.8 billion in2010, representing a compound annual growth rate (CAGR) of 11% for theperiod spanning 2006-2010.-Carbonates sales proved the most lucrative for the Indian soft drinks marketin 2010, generating total revenues of $1.9 billion, equivalent to 50.5% of themarkets overall value.-The performance of the market is forecast to decelerate, with an anticipatedCAGR of 9.1% for the five-year period 2010-2015, which is expected to leadthe market to a value of $5.9 billion by the end of 2015.World Market:Global sales of soft drinks exceed 327 billion liters and are valued at morethan US $393 billion annually. North America, Europe and Japan are themost mature markets for global soft drinks. Coco Cola and PepsiCo Inc havesignificant control over the global soft drinks market and both have similarbusiness organizations and processes worldwide. The industry includes otherthan the soft drink manufactures themselves, the bottlers and various rawmaterial suppliers. Suppliers of cans, plastic and glass bottles are included inthis category.
  15. 15. 15Globally, the soft drinks majors continue to face challenges. One key globaltrend is a move away to healthier drinks, which may put some pressure onyearly growth in sales of soft drinks. The push to diet beverages have beenwell covered by the major producers – with sales of diet Coke and diet Pepsistill strong. A recent trend is the rise in popularity of sports drinks. Bottledwater has also experienced very strong growth. Finally the quality of waterused in the manufacture of soft drinks poses serious issues for the industry.Major players are working on the issue as water scarcity becomes a globalissue.Industry Players:The Coca-Cola CompanyCoca Cola is the number one brand globally and has been for over 40 years Itis sold in virtually every country of the world. The successful expansion thatbegan in World War II has continued unabated up to this date. Now, thecompany has more than 400 brands in its portfolio. Tab, produced in 1963was one of the company‘s landmark marketing successes.PepsiCo Inc.Pepsi-Cola was created in 1898 in New Bern, North Carolina, by druggistCaleb D. Brad ham. PepsiCo Inc. holds about one-third of the U.S. marketand is the second largest soft drink major in the world. It owns Frito-Laysnacks and other businesses. Pepsi soft drinks include brands such as Pepsi,Diet Pepsi, Slice, Mountain Dew and Mug Root Beer.Cadbury SchweppesCadbury Schweppes PLC is the number three global soft drink producer. Theportfolio includes Squirt, La Casera, TriNa, Spring Valley, and Wave. It hascornered more then 17% of the world market. Total sales exceed US $12.9billion.
  16. 16. 16Trends and Recent DevelopmentsPrivate labels are becoming more prominent. Private Labels are brandsowned by stores and retailed through them. These private label manufacturersare retailing their brands very aggressively these days. Although, lowering ofprices is an open option for the soft drink majors, it reduces their profits.Private labelers offer heavier discounts and sales are increasing.In 2007, a new issue is the lack of recycling of plastic bottled watercontainers. Although the trend to bottled water is high, environmentalistspoint out many of these are simply filtered tap water and that the discardedbottles are causing environmental damage. The fallout among consumers isunclear at mid-point 2007.After nearly a year of deliberation, Cadbury has finally announced a date forthe de-merger of its US soft drinks arm, American Beverages. Although itappears to make sense to separate this group from the companysconfectionery operations, the separation could leave Cadbury vulnerable to atakeover, which its turnaround plan may be unable to prevent.The de-merger, which was first announced as a possibility back in March2007, will now take place in May and will see the creation of Dr PepperSnapple Group as a separate entity with a listing on the New York StockExchange and its own management team. The confectionery arm is to berenamed Cadbury plc and will be listed in London.
  17. 17. 17Celebrity branding and its effect on the consumerIt is a known fact that the best endorsements achieve an eclectic balancebetween the product (brand) and the celebrity. Giving a brand a face is morethan just a marketing strategy to increase sales or gain market share, it is adecision that can change the future of the brand forever.Choice of the celebrity, hence, is of utmost importance and is usually donebased on many different parameters - appeal, looks, popularity or even just afantasy figure to endorse a brand.In todays highly competitive markets, big brands are at logger-heads when itcomes to products, each having a similar product to that of a rival. Where doesone brand gain that quintessential advantage - advertising, service, promise oftrust, or even the all important price factors? Advertising seems to be the bestplatform where brands prefer to compete on - right from hiring the bestadvertising agencies to getting the biggest celebrities. What would be theformula to success then? Well, a good creative agency, a large enoughpromotional budget and a huge star to endorse your brand would definitelyensure in the minds of a brand management team a feeling of security, successand a triumph over the competitors brand.The general belief among advertisers is that brand communication messagesdelivered by celebrities and famous personalities generate a higher appeal,attention and recall than those executed by non-celebrities. The quick message-reach and impact are all too essential in todays highly competitive environment.The different models applied by brands to achieve the full potential of suchendorsements, highlight the need for a convergence between the theoretical andpragmatic approaches of brand building and effective advertising. Theimportance of a celebrity-brand match and the various roles played by them asbrand-associates show the momentum this strategy has gained in the last decadeor so. We put forward certain ideas like positioning by association,diminishing celebrity utility and the Multiplier Effect which show thetriangular relationship between the brand, the consumer and the Celebrity.
  18. 18. 18Literature ReviewTitle : CELEBRITY ENDORSEMENT : A MARKETING STRATEGYAuthor : Ms Radhika MadanLecturer - MarketingIILM College, GurgaonThis paper shows that Celebrity endorsement strategy can be an effectivecompetition weapon in mature markets in order to differentiate products fromcompetitors since there is heavy advertising clutter. Celebrities have alwaysbeen the easiest way to attract the customers because of their mass appeal.Though there areTitle : EFFECTS OF CELEBRITY ENDORSEMENT ON CONSUMERBUYING BEHAVIOR AND BRANDING OF A BRANDAuthor DR. GIRIDHAR K.VAssistant Professor, Department of Com. & Mgt., Sahyadri Arts& Commerce College Kuvempu University, Shimoga - 577203.The study has focused on ―the effect of celebrity endorsement on consumerbuyingbehavior on brand‖ mainly on three prospective, marketer, celebrity andconsumer. Celebrity endorsements will be more effective when usedconsistently over time to increase the strength of the link between the celebrityand the endorsed brand.
  19. 19. 19Title : Impact of Celebrity Advertisement on Customers‘ Brand Perception andPurchase IntentionAuthor :Qurat-Ul-Ain ZafarScholar, Faculty of Management Sciences,International Islamic University Islamabad, PakistanMahira RafiqueScholar, Faculty of Management Sciences,International Islamic University Islamabad, PakistanCelebrity endorsement has reasonable impact on customers as per their attitudeand purchase intention. Celebrity endorsement has come out as not only aninfluential factor but rather a causal factor in the results of this paper. Physicalattractiveness, credibility and congruence of celebrity with reference to theendorsed advertisement all have impact on the customer‘s perception about theadvertised product. The tests have by and large bore favorable significant resultsin the light of variables used
  20. 20. 20Tiltle: A Study on Consumer Buying Behaviour on Celebrity Endorsement andBrand Building of Automobile Industry in Tamil Nadu, IndiaAuthor:Annadurai PughazhendiResearch Scholar , PSG Institute of Management (PSG College of Technology)Coimbatore, IndiaD. Sudharani RavindranProfessor, PSG Institute of Management (PSG College of Technology)Coimbatore, IndiaThis paper investigate that the choice of celebrities to fulfill that role hasbecome common practice for brands competing in todays cluttered mediaenvironment. There are several reasons for such extensive use of celebrities.Because of their high profile, celebrities may help advertisements stand outfrom the surrounding clutter, thus improving their communicative ability. Abrief assessment of the current market situation indicates that celebrityendorsement advertising strategies can, under the right circumstances, indeedjustify the high costs associated with this form of advertising.
  21. 21. 21Title : Impact of Celebrity Endorsement on Consumers‘ Buying BehaviorAuthor : Pradeep Agrawal Research Scholar,Faculty of Management Studies, Banaras Hindu University,Varanasi. 221005Dr. S. K. Dubey Associate Professor,Faculty of Management Studies, Banaras Hindu University,Varanasi. 221005This paper shows that Celebrity endorsement decisively gives more visibility tothe product endorsed. What-so ever the Ground realities may be, but the massesstill try to imbibe a style imitating the celebrities. The Brands, taking intoconsideration all the related factors, can make best use of either the ‗Bollywoodstars‘ or ‗Sports star‘ to endorse their product. Yet not many studies areconducted to test if the celebrity advertisement appeal carries on towardsboth male and female, or only towards a particular gender. Companiesmust understand that the fees for celebrity talent can be substantial, cost ofnational advertising, especially on television, is extremely high, and the type ofspokesperson affects the levels of awareness and recall Studies with regards tocelebrity endorsers, researchers have included the issue of demographics.
  22. 22. 22Theatrical aspect of the studyWhat is celebrity endorsement?The use of celebrities in order to increase the sales and/ or the recall value of abrand is called celebrity endorsementThe late 80s saw the beginning of celebrity endorsements in advertising inIndia. Hindi film and TV stars as well as sportspersons began encroaching on aterritory that was, until then, the exclusive domain of models. There was a spurtof advertising, featuring stars like Tabassum (Prestige pressure cookers), JalalAgha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar(Dinesh Suitings). Of course, probably the first ad to cash in on star power in astrategic, long-term, mission statement kind of way was for Lux soap, a brandwhich has, perhaps as a result of this, been among the top three in the countryfor much of its lifetime.Endorsements by celebrities have started since a long time. The very fact thattheir use has continued for so long is proof enough of its immense advantages,but they have several disadvantages too. When it comes to celebrityendorsement, the first brand that comes to the Indian mind is that of Lux, theBeauty Bar of the Stars. Since its inception, Lux the brand has grownpositioning itself thus. However, recently Lux has tried to change its positioningfrom being a woman‘s soap to being soap for men as well. Sticking to itsstrategy of using celebrities to appeal to its target audience, this time around ithas used Shah Rukh Khan to endorse Lux. But this time the response has beenconfusing.One of the first sports endorsements in India was when Farokh Engineerbecame the first Indian Crickets to model for Brylcream The Indian cricketteams now earns roughly Rs. 100 crore through endorsements. There was aspurt of advertising, featuring stars like tabassum (Prestige Pressure cookers).Jalal Agha (Pan Parag).Kapil Dev (Palmolive Shaving cream) and SunilGavaskar (Dinesh Sutings)
  23. 23. 23RISE OF CELEBRITY CULTUREThe modern mass media has increased the exposure and power of celebrity.Often, celebrity carries with it immense social capitals that is highly soughtafter by some individuals. High paying jobs and other social perks unavailableto most people are readily available to celebrities, even for wok not connectedto the talents or accomplishment that made them famous. For example A retiredathletes might receive high ―speaking fees ‗ or compensation for publicappearances, despite his talent having been sports.Often, celebrities cannotescape the public eye & risk being followed by fans. As well, child celebritiesare notorious for having poor emotional health in adulthood, and often turn todrug and alcohols abuse when their fame fades.In India today, the use of celebrity advertising for companies has become atrend and a perceive winning formula of corporate image building and productmarketing. Associating a brand with a top-notch celebrity can do more thanperk up brand recall. It can create linkages with the stars appeal, thereby addingrefreshing and new dimensions to the brand image. In a world filled with faces,how many do you remember? Admittedly the ones that evoke some kind of feelin you, whether it‘s humors, acceptance, appreciation or recognition. These arethe faces you‘d turn to look at, the ones that would stop you in your tracks. Andthat‘s when you have more than just a face. You have personality. ―Personalitythat‘s reflective of your brand and promises to take it that extra mile‖.As existing media get increasingly cluttered, the need to stand out has becomeparamount- and celebrities have proved to be the ideal way to ensure brandprominence. Synergizing personality with product and message can create aninstant breakthrough. Result? Brand buzz. People begin to notice, opportunitiescome about. People want to be part of the brand.―Touch it. Feel it. Experience it.‖
  24. 24. 24IS IT SMART TO USE CELEBRITY ENDORSEMENT FORBRANDING?Stars, who are known to shape destinies, cast an enormous influence. No, we‘renot talking about astrology here. We‘re referring to the powerful effect ofcelebrities on destinies of brands. One approving nod from a famous face cantranslate into millions in brand sales. Perhaps that‘s why the world over,companies have been using stars to endorse everything, from food to foodchains,from soft and hard drinks to health drinks, from clothes and accessoriesto cars (and the tyres onwhich they run).Even political parties are awestruck by the charisma of stars. Such is themagnetism of celebrities in this country that in the recent general elections,major political parties fielded a record number of film stars and cricketers tocontest from important constituencies around the country.CELEBRITY ENDORSEMENTS AS A STRATEGYSigning up stars for endorsements is a time-tested strategy and has beeneffectively used by some of the top brands in the world including Nike andPepsi. In India too, HLL has used Hindi film stars to endorse their beauty soapLux since the fifties. Vimal, Thums Up, Gwalior and Dinesh are some of theother brands that used star-appeal in the early days of mass advertising. Andwho can forget Kapil ‗Palmolive‘ Dev?Marketers believe that star endorsements have several benefits, key among thembeing building credibility, fostering trust and drawing attention or any or all ofwhich can translate into higher brand sales.So how does one decide whether to put a celebrity in an ad? Ideally, this shouldbe dictated by the communication idea. MG Parmeswaran, Executive Directorof FCB Ulka says, ―As advertising professionals, we recommend celebrityendorsements when the case is justified.
  25. 25. 25Celebrity Endorsement in Indian Soft Drink CompaniesPepsi (Oh Yes Abhi!)New Delhi, January 29, 2013: The newand young India is impatient and wantsto do things ‘right now’. This is the pulse of the nation, the new youthhilosophy that Pepsi aims to bring alive through its mega campaign and newbrand positioning, ‘Oh Yes Abhi’. This marks the beginning of a new journeyfor Pepsi in India and will be followed by a series of innovative and excitinginitiatives over the course of the year.The up-coming commercial scheduled to go on-air on February 1 creates aspectacular viewing experience for consumers, portrayingRanbir Kapoor,Mahendra Singh Dhoni and Priyanka Chopra in their moments of impatience.Priyanka is impatient to go and perform on stage; Ranbir is impatient to go andeat PaniPuri coupled with his Pepsi; Dhoni, the calm and composed sportsmanis impatient to celebrate after winning the World Cup.Commenting on the new Pepsi positioning Deepika Warrier, Vice President,Marketing-Beverages, PepsiCo India said,“Oh Yes Abhi is all about theimpatient youth, who believe in making the most of the moment and thereforewants action „right now!‟. Oh Yes Abhi! translates into - live for the present astomorrow is too late,„now‟ is the time to bring about a change; „now‟ is the timeto take action; if you wish to make it big, work on it „now‟ and many suchsentiments synonymous to the young generation today. Our latest campaignillustrates all this and much more in a quintessential irreverent Pepsi package”.Homi Battiwalla, Senior Director – Marketing (Colas, Juices andHydration), PepsiCo India further added,,“By anticipating the pulse of thenation ahead of the curve, Pepsi yet again establishes itself as a trend-settingbrand. Our new brand positioning, Oh Yes Abhi! reiterates the hunger forimpatience seen in the youth today and brings it alive in a revolutionary format.This campaign is a great combination of impatience of the cola and impatienceof youth presented in a grand manner.”
  26. 26. 26The TVC brings alive Pepsi‘s youthful irreverence and demonstrates the Oh YesAbhi! moments of these Pepsi brand ambassadors and youth icons. PriyankaChopra, in her latest pop star look is shown waiting impatiently, all anxious togo on the stage for her first live performance; while Ranbir Kapoor, stuck in atraffic jam on Mumbai‘s busy streets, craving for street foodand a chilled glassof Pepsi, instantly runs towards a PaniPuri stall to gorge on it one after theother.On the other hand, MS Dhoni, known to beexpressionless about winning orlosing in true sportsman style, is shown breaking into a celebratory dance in themiddle of the field after the much awaited World Cup 2011 win.“This film notonly captures the stars in their impatient avatars, but also shows many momentsfrom our everyday lives that exemplify the belief of „now‟. Shot at differentlocations, whether in the middle of a cricket stadium or a crowded Mumbaistreet or in a small town, the ad-film proves to be a true spectacle forconsumers. Moreover, we‟ve worked with Nirvana Films who‟ve beensuccessful in showcasing the product in a completely new and larger than lifemanner”, added, Surjo Dutt, Executive Creative Director – JWT India.Consumers can experience the Oh Yes Abhi fever through extensive above-the-line communication. This will be supported by radio activation, on-groundamplification andan outdoor campaign amongst other initiatives. Theexcitement continues on digital platforms like Facebook and Twitter; and aimsto build hype on various impatient moments.
  27. 27. 27Coke (Open Happiness)Open Happiness is a global marketing campaign for The Coca-ColaCompany that was rolled out worldwide in the first half of 2009, following thecompanys "Coke Side of Life" advertising campaign. It was developed by theWieden + Kennedy creative agency.The campaign was launched on the reality television series American Idol onJanuary 21, 2009, and rolled out to other national markets over the followingweeks. In the United States, commercials following the Open Happiness themeappeared during NBCs broadcast of Super Bowl XLIII on February 1, 2009,and during ABCs broadcast of the 81st Academy Awards on February 22,2009. Marketing for The Coca-Cola Company based on the Open Happinesstheme also appeared in the United States as print ads in newspapers, intelevision commercials, in outdoor advertising, and in in-store advertising.Coca-Cola has launched a new TVC extending its ‗Crazy for happiness‘campaign. The soft drink major has roped in Alia Bhatt, Varun Dhawan andSiddharth Malhotra for the new commercial. The TVC created by McCannWorldGroup India revolves around the tagline Bewajah khushiyan lutao, Coca-Cola pilao (Spread happiness without reason, share a Coca-Cola).The TVC opens in an Irani cafe where a hassled waiter is shown workingfrantically. He is clearing dishes, taking orders from patrons and receivinginstructions from the owner of the café. Seated at a table are Bollywood actorsAlia Bhatt, Varun Dhawan and Siddharth Malhotra. Dhawan asks for threebottles of Coke. Bhatt changes the order to four bottles. She gives a casual shrugwhen asked why by Dhawan and Malhotra. When the waiter sets the bottles onthe table, Bhatt picks up the extra bottle and offers it back to the waiter.Surprised at her unprecedented gesture, he looks at his boss for approval. Theboss nods in the affirmative and the waiter along with the three youngstersenjoy their drink. A voice over signs off saying, Bewajah khushiyan lutao,Coca-Cola pilao.
  28. 28. 28On the new TVC, Anupama Ahluwalia, vice-president, marketing, Coca-ColaIndia and South West Asia, said, ―Brand Coca-Cola has been at the forefront inmaking a cultural point of view that encourages optimism and positivity in oureveryday lives. This summer, the ‗Bewajah khushiyan lutao, Coca-Cola pilao‘campaign inspires everyone to spread and share happiness without any reason,through little gestures like sharing an ice cold bottle of Coca-Cola. We hope thatthe new Coca-Cola campaign serves as the thought starter, the trigger whichencourages people to undertake simple acts of kindness towards others.‖Prasoon Joshi, CEO and chief creative officer, McCann World Group India,said, ―Take one of the world‘s most loved brands and team it with the youngand vibrant stars of Bollywood, along with some peppy, foot tapping music.That‘s how we made the latest Coca-Cola campaign. The whole idea of thecampaign was to take the Crazy for happiness theme to an individual level,with a call to action. The emotions of togetherness and celebration, energised bya bottle of Coca-Cola, are very real and identifiable, and we are sure thateveryone will connect to this.‖The company has planned an integrated communication plan including OOH,digital, point of sale merchandise and other on-ground initiatives across keymarkets.
  29. 29. 29Thumbs Up (Ajj Kuch Tufani Karte hay )Thums Up‘s 2012 summer campaign employs a new tagline, ‗Aaj kuch toofanikarte hain‘. The TVC also showcases a new star cast, headlined by South Indianactor (and the brand‘s ambassador in the South)Mahesh Babu.The TVC, created by Leo Burnett, shows Babu and his friends cutting short athirty minute trip across the city to just three minutes by taking the route lesstravelled – gliding down wires, jumping roofs and slipping down pipes, in thedaredevil style typical of the brand.According to the brand, ―This campaign marks the evolution of the Thums Upman from being the ‗Angry Young Man‘ to the ‗Cool Risk Taker‘ to thefollower of ‗Playful Mastery‘ and now the advocate of ‗Bold MasculineLeadership‘.‖Commenting on the film, Sainath Saraban, executive creative director, LeoBurnett, said, ―The new ‗Aaj Kuch Toofani Kartey Hain‘ campaign withMahesh Babu, Sahil Shroff, Dhaval Thakur and Angela Jonsson has beendesigned to give the consumers a differentiated and thrilling experience.‖Nomad Films is the production house and Nick Livesey is the director.
  30. 30. 30Mountain Due ( Dar ke age Jit hay)Following the appointment of Hrithik Roshan as brand ambassador last month,Mountain Dew has rolled out a new campaign. The brand continues with itsDarr se mat daro, darr ke aage jeet hai plank.The ad created by Taproot India shows how Roshan putting his fears aside afterdrinking Mountain Dew and jumping into the water from a high cliff. The adgoes on air on 22 March.On the campaign, Ruchira Jaitly, category director - flavours, PepsiCo India,said, ―We are excited about the new summer campaign by Mountain Dew, withour brand ambassador Hrithik Roshan. This campaign is true to the brandphilosophy ‗Darr Ke Aage Jeet Hai‘ and brings alive how one can face theworst fears and vanquish them. It was a challenge to shoot this ad, given thelocation and the need to look authentic, and we had the perfect partner inHrithik, who went all out to make the dive come alive. We look forward to astrong surround campaign to bring alive this new creative.‖Agnello Dias, creative director, Taproot India, added, ―Everybody feels fear. Tobe courageous is defined by one‘s fear rather than the fact that they feel no fearat all. Hrithik‘s personality in real life and on-screen is well rounded and multi-dimensional. That‘s a great thing about him because he can be vulnerable andfearful like a normal person and transform into a heroic and fearless performerthe next moment. He has the ability to carry off both with equal ease.‖
  31. 31. 31Research Methodology:Title of the study:―Impact of celebrity endorsement on consumer buying behavior with respectto soft drinks ―Objectives of study:The objectives of the study are as follows: To identify the factors that motivate and affect the purchase attitude ofthe consumers To study the consumers perception on endorsement of celebrities throughadvertisement of consumer responseSources of DataFor the study purpose both primary and secondary data are used. The primarydata collected from customers who are consuming soft drink through structuredQuestionnaires the secondary data collected from the various website andresearch projects.Sampling Size:It is the total number of respondents targeted for collecting the data for theresearch. Sample size of 00 persons will be taken for this research.
  32. 32. 32Research InstrumentStructured QuestionnairesSample planSample unitCustomers who are consuming soft drinks.Sample size200 sample for research work.Sampling method.The sample is selected by using non probability convenience sampling method.
  33. 33. 33Data AnalysisWhat is your occupation?Interpretation:From this pie-chart it is clear that majority of the respondents are students andrest of the share is occupied by service and business class80404040OccupationStudentsBusiness classservice classOthers
  34. 34. 34Age:Interpretation:This pie-chart depicts that mostly respondents are young and while rest areabove 25 years.80505020Age18-2526-3232-39More than 40
  35. 35. 35GenderInterpretation:This pie-chart depicts that 98% of the respondents are male and 2% areFemales.18020GenderMaleFemale
  36. 36. 36Which category of products you like most?(a) Soft drink (b) juice (c) othersThis pie-chart depicts that 120 of the people like soft drink and 40 people likejuice and rest people like other drink.1204040Which category of products you like most?Soft drinksJuseothers
  37. 37. 37If soft drink than which product you prefer mostly?a) Pepsib) Coca Colac) Local brandsd) Not SpecifyInterpretation:This pie-chart depicts that 50 of the people like Pepsi and 60 people like cocacola and 50 people like local brand50605040If soft drink than which product you prefermostly?PepsiCoca ColaLocal brandsNot specify
  38. 38. 38Do you collect any information or take advice before your purchase decision?a) Yesb) NoInterpretationThis chart shows that 120 people take advice before purchase decision12080Do you collect any information or takeadvice before your purchase decision?YesNo
  39. 39. 39If yes than which factor affects you most?a) Friendsb) Advertisementc) Opinion Leaderd) OthersInterpretation:The chart depicts that 65 of the people consider advertisement while going forThe purchase, followed by advice from friends 45,opinion leader 55 and 45people Consider other factor..45655545which factor affects you mostFriendsAdvertisementsOpeinion LederOthers
  40. 40. 40Which factor related to product affects you most?a) Priceb) Qualityc) Celebrity endorsementd) OthersInterpretation:The chart depicts that 75 of the people consider celebrity endorser while goingfor the purchase, followed by price-with30,quality with 50 and 30 peopleConsider other factor. As people usually are more interested towards wellknown brands and if these brands are advertised by famous celebrity it creates ahuge impact.45507530Which factor related to product affect youmost?PriseQualityCelebrity EndorsementOthers
  41. 41. 41Do you like to see any celebrity endorsing your brand?a) Yesb) NoInterpretationThis chart 120 people like to see celebrity endorsing in their brands. Thisclearly shows how much important these celebrities are in the daily life ofcommon man.12080Do you like to see any celebrity endorsingyour brandYesNo
  42. 42. 42What comes in your mind when you go for Soft drinks?a) Celebrity endorsementb) Brandc) Qualityd) TestInterpretation:This pie-chart depicts that 65 of the people consider celebrity endorser whilegoing for The purchase, 55followed by brand name-with ., quality with 45 and35 people Consider test . ..65554535what comes in your mind when you go forSoft drinks ?Celebrity EndorsementBrandQulityTest
  43. 43. 43Do you think celebrity endorsement work as an effective tool of persuasion forSoft drinks?a) Strongly Agreeb) Agreec) DisagreeInterpretation:This pie chart depicts that mostly people agree that Celebrityendorsement is an effective tool of persuasion. 45 of people stronglyagree that celebrity endorsement is an effective tool of persuasion and95 people slightly agree that it work as tool of persuasion and 60 ofpeople disagree that it is one of the tool.459560celebrity endorsement work as an effectivetool of persuasion for Soft drinks?Strongly agreeAgreeDisagree
  44. 44. 44In case of Soft drinks celebrity persona you like most?a) Bollywood Starsb) Sports Starsc) OthersInterpretation:This pie-chart depicts that 65 people like to see bollywood stars to endorse theirBrands and 75 of them sports star. While remaining 60 want others657560In case of Soft drinks celebrity persona youlike mostBollywood StarsSports StarsOthers
  45. 45. 45Is celebrity endorsement making you loyal toward soft drinks?a) Yesb) NOInterpretation:This pie-chart depict that 140 respondents agree that endorsement of Pepsi bytheir favorite celebrity make them loyal toward Pepsi and 60 don‘t agree withthis.14060Is celebrity endorsement making you loyaltoward soft drinks?YesNo
  46. 46. 46Findings:After completing survey I found that:The research shows that the celebrity endorsement playing a key role onIndian consumersMost of respondent said that when they were going to purchase softdrinks first celebrity of the particular brand comes in the mind of theconsumer when they see different brands of the soft drinksFilm stars and sports stars both are equally effective as a celebrityendorsementOut of 200 respondent 140 respondent said that celebrity endorsementmake them loyal toward the soft drinksMost of the respondent agree upon that the celebrity endorsement is theeffective persuasion
  47. 47. 47Limitation:There are following constraints of the study which can be explained as:- the time of research was short due to which many fact has been leftuntouched The Area undertaken in research in Himmatnagar only. But to do acompleter research a wide area is required, so the area is also a constraintof the study.
  48. 48. 48Conclusion:In India celebrities‘ position in the mind of people is very high. People looks astheir Idol and millions of people follow them. In all region of the countrydifferent celebrities follow by their fans like a god. In cricket Sachin Tendulkar,Ms Dhoni, Virat Kholi . In bollywood male endorser and female endorser botheffective in ads like Amitabh Bachchan ,Shahrukh Khan , Salman Khan ,Ketrina Kaif ,Bipash Basu ,Ashwrya Rai Bachchan .These celebrities also usingtheir name for endorsement very effectively.Celebrity endorsement in soft drinks playing a key role for the soft drinkscompanies. Soft drink is product which purchase for enjoyment. It is notnecessary product for the consumer. So all soft drink companies are highlyconcentrate on advertisement campaign especially for TV advertisement. For allsoft drink companies like coca cola, Pepsi use celebrity as a market strategy andgot positive result. Consumer is highly affected by celebrity when he/she goingto buy a soft drink. That show how celebrity endorsement is effective withrespect to soft drinks.
  49. 49. 49Bibliography:REFERENCES:Philip A.Stroke(2009), "impact of celebrity endorsement on stockprices", Journal of Consumer Research, Vol. 14 No.March .Roy, Shubhadip (2007), "Consumer‘s perceptual space and Indiancelebrities in relation to brand attributes", Journal of Business Research,Vol. 37 No.1,Shimp (2007), "Celebrities as spokesperson", Journal of Retailing, Vol.76 .·,coca-cola-urges-people-to-spread-happiness-sans-reason-in-summer-campaign.aspx,mountain-dews-latest-darr-ke-aage-jeet-hai-adventure-goes-on-air.aspx
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