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

1
A Grand Project on
Impact of Celebrity Endorsement on
Consumer Buying Behavior with
respect to Soft Drinks
Prepaid by Guided by
Hardik D Jani (Roll no: 35) Prof .Kruti Patel
MBA Semester 4
Submitted to
S K P I M C S

2
DECLARATION
We/ I, hereby, declare that the Comprehensive Project report Project titled,
―Impact of celebrity endorsement on consumer buying behavior with respect to
soft drink industry ‖ is original to the best of our/ knowledge and has not been
published elsewhere. This is for the purpose of partial fulfillment of Kadi Sarva
Vishwa Vidhyalaya University requirements for the award of the title of Master
of Business Administration, only.
Student Name Signature
Hardik Jani (35)

3
CERTIFICATE
This is to certify that Mr.Chaitalya Gadhavi of S. K. Patel Institute of Management and
Computer Studies, Gandhinagar have submitted their Grand Project Report on ―Impact
of Celebrity Endorsement on Consumer Buying Behavior with respect to
Soft Drinks‖ in the year of 2012-2013 in fulfillment of Kadi Sarva Vishwvidhlaya
requirements as a part of their course of MASTER OF BUSINESS
ADMINISTRATION PROGRAMME.
Dr. Bhavin pandya Prof. Kruti patel Prof. Sandhya harkavat
Director Faculty guide Coordinator

4
Preface
Everyday consumers are exposed to thousands of voices and images in
magazines, newspapers, billboards, websites, radio and television, etc. Every
brand attempts to steal at least fraction of a person‘s time to inform him/her of
the amazing and different attributes of the product at hand. The challenge of the
marketer is to find a hook that will hold the subject‘s attention. In helping to
achieve this, use of celebrity for endorsement of a brand is widely used
marketing strategy. In this modern age, people tend to ignore all commercials
and advertisements while flipping through the magazines and newspapers or
viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed.
Thus, celebrity endorsement in advertisement and its impact on the overall
brand is of great significance. In this process, the companies hire celebrities
from a particular field to feature in its advertisement campaigns. The
promotional features and images of the product are matched with the celebrity
image, which tends to persuade a consumer to fix-up his choice from a variety
of brands. Although this sounds pretty simple, but the design of such campaigns
and the subsequent success in achieving the desired result calls for an in-depth
understanding of the product, the brand objective, choice of a celebrity,
associating the celebrity with the brand, and a framework for measuring the
effectiveness.
Stars, who are known to shape destinies, cast an enormous influence. We‘re
referring to the powerful effect of celebrities on destinies of brands. One
approving nod from a famous face can translate into millions in brand sales.
People love to live in dreams. They worship celebrities. Celebrities may be
sports stars like Sachin Tendulkar, Mahindra Singh Dhoni,Roger
Federer.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 the
world over, companies have been using stars to endorse everything, from food
to food chains, from soft and hard drinks to health drinks, from clothes and
accessories to cars. For this they rope in these celebrities and give them
whopping amount of money. They believe that by doing this they can associate
their products with their target customers. This is called celebrity endorsement.

5
Acknowledgment
I express my sincere thanks to my project guide Prof.Kruti Patel for guiding me
right from the inception till the completion of the project. I sincerely
acknowledge them for extending their valuable guidance, support for literature,
critical reviews of project and above all the moral support they had provided to
me with all stages of this project.

6
Table of Content
Topic Page No
Executive Summery 7
Industry analysis 8
Literature Review 18
Theoretical aspect of the study 22
Research Methodology 31
Data analysis 33
Findings 46
Limitations 47
Conclusion 48
Bibliography 49

7
EXECUTIVE SUMMARY
India is a country where people love to live in dreams. They worship
celebrities.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 influence
their target customers may exist or potential ones. For this they rope in these
celebrities and give them whopping amount of money. They believe that by
doing this they can associate their products with their target customers. This is
called celebrity endorsement.
The field of consumer behavior is the study of individuals, groups or
organizations and the processes they use to select, secure, use and dispose of
product, services, experiences, or ideas to satisfy needs and impacts that these
processes have on the consumer and society. And understanding the consumer
behavior is the prime and toughest task in front of every marketer. There are a
lot of factors, which influence consumer buyer behavior. This study aimed at to
understand the influence of celebrity endorsement on consumer buying
behavior. Marketers pay millions of Dollars to celebrity endorsee hoping that
the stars will bring their magic to brand they endorse and make them more
appealing and successful. But all celebrity glitter is not gold.
The celebrity endorser fits in between these two interactions, where he tries to
bring the image of the product closer to the expectation of the consumer, by
transferring some of the cultural meanings residing in his image to the product.
Now, despite the potential benefits derived from celebrity endorsements, they
increase a marketer‘s risk manifolds and should be treated with full attention
and aptitude.
What therefore seems relevant by the study is that, yes, definitely celebrity
endorsee influence consumer buying behavior and brand building but while
using celebrity endorsee, marketer has to take care of all the aspect that whether
they brought personality and image of celebrity matches or not, whether
celebrity endorsee has deep penetration among the masses or not, whether he is
considered as credible source or not etc.

8
Industry Analysis
Indian Advertisement Industry
Indian economy is growing and the market is on an expansion mode.
Businesses are looking up to advertising as a tool to cash on business
opportunities. Growth in business has led to a consequent growth in the
advertising industry. Indian advertising industry has emerged as one of the
major industries and has broadened its horizons be it the creative aspect, the
capital employed or the number of personnel involved.
Advertising industry grew by 9 to 10 per cent in comparison to the double digit
growth rate of 20 per cent in 2010. According to ad industry estimates, the
growth this year has been similar to 2011.
The Rs 30,000-crore advertising industry has been dealing with tightened purse
strings as companies across sectors dealt with issues ranging from rising input
costs to demand slowdown on account of lower disposable income and
inflation. The big boys of the advertising club — fast moving consumer goods
(FMCG) companies — were careful with their money, especially in the first
half of the year, complicating matters further. Sample this: Ad spends by FMCG
companies have been hovering between 12-13 per cent of sales from 14 -15 per
cent earlier.

9
India 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) of
17 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 1,200
crore (US$ 210 million). Print- An estimated growth of 10 per cent is
anticipated till 2015. Digitization- Digital advertising is expected to grow at a
CAGR of 30 per cent during 2011-16.

10
Introduction to the Soft drink Industry:
The industry began in mid 1900‘s with leading companies like Pepsi Co. and
Coca Cola controlling the beverage business sector with sweetened soft
drinks and carbonated soda water. American audiences attached excitement
and convenience to these popular drinks, and a variety of soft drink brands
began to originate such as Dr.Pepper, Sprite, etc. The beverage industry has
undergone rapid expansion over the last decade. The only obstacle for these
beverage companies was the high number of calories and sugar levels their
drinks contained; a drawback for health-conscious consumers.
A soft drink (also called pop, soda, coke, soda pop, fizzy drink, or carbonated
beverage) is a non-alcoholic beverage that typically contains carbonated
water, a sweetening agent, and a flavoring agent. The sweetening agent may
be sugar, high-fructose corn syrup, or a sugar substitute (in the case of diet
drinks). A soft drink may also contain caffeine or juice. Products such as
energy drinks, Kool-Aid, and pure juice are not considered to be soft drinks.
Other beverages not considered to be soft drinks are hot
chocolate,hot,tea,coffee,milk,milkshakes,and schooled.
Small amounts of alcohol may be present in a soft drink, but the alcohol
content must be less than 0.5% of the total volume. If the drink is to be
considered non-alcoholic. Widely sold soft drink flavors are cola, lemon-
lime, root beer, orange, grape, vanilla, ginger ale, fruit punch, sparkling
lemonade, squash, and water. Soft drinks may be served chilled or at room
temperature. They are rarely heated.
The first marketed soft drinks (non-carbonated) in the Western world
appeared in the 17th century. They were made from water and lemon juice
sweetened with honey. In 1676, the Companies des Lemonades of Paris was
granted a monopoly for the sale of lemonade soft drinks. Vendors carried
tanks of lemonade on their backs and dispensed cups of the soft drink to
thirsty Parisians.

11
Carbonated drinks made without any alcohol are called Soft Drinks. They are
also known as Coke/Soda/Pop etc. Hot chocolate, teas, coffee etc are usually
excluded from this classification. They are sold in a variety of sizes and
manner. In the U.S., they are often sold in two-liter bottles, one liter plastic
bottles, 24 and 20 US fluid ounce bottles and in 12 US fluid ounce cans.
Packaging is also available in many different quantities
In Japan, 1.5 liter bottles, 500 mL and 350 mL bottles and cans are sold. At
times, the fizzy soft drinks are served as fountain drinks in which carbonation
is added to a concentrate immediately prior to serving. In Europe, plastic and
glass 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 refined
sugars. Hence, they are often criticized for causing obesity and other health
related problems. A link to problems of sleep, bones, and teeth has been
proven by many studies.
Market Structure:
The soft drink industry is a global marketing phenomenon. In essence, it is
simply a blended water drink with sweeteners, flavors and additives. The
success in advertising and marketing this product lies in convincing billions
of consumers to drink these instead of straight water or other less expensing
alternatives. The brand recognition of this industry is extraordinarily high. In
2002, world sales exceeded US $193 billion. In contrast, fruit sales were just
US $69 billion. Global consumption is currently in excess of 327 billion
liters.
Pepsi and Coca-Cola, between them, hold the dominant share of the world
market. Cadbury Schweppes follows a close third. Coca-Cola has
approximately half of the world market share and sells 4 out of the top 5 soft
drink 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 other
foods.
Some analysts view the definition of soft drinks incomplete and wish to add
ready to drinks also, to this industry. If they are added as well, these would
add another 1.3 billion servings to 50 billion servings for these drinks.

12
Industry Definitions:
 Fizzy drinks: drinks injected with carbon dioxide at high pressure are called
Fizzy 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 for
soft 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 market
growth has growth rate of 7- 8% per annum compared to 22% growth rate in
the previous year. The market size for FY01 is expected to be 7000mn
bottles.
Soft Drink Production area
The market preference is highly regional based. While cola drinks have main
markets in metro cities and northern states of UP, Punjab, Haryana etc.
Orange flavored drinks are popular in southern states. Sodas too are sold
largely in southern states besides sale through bars. Western markets have
preference towards mango flavored drinks. Diet coke presently constitutes
just 0.7% of the total carbonated beverage market.
Growth promotional activities
The government has adopted liberalized policies for the soft drink trade to
give the industry a boast and promote the Indian brands internationally.
Although the import and manufacture of international brands like Pepsi and
Coke is enhanced in India the local brands are being stabilized by
advertisements, good quality and low cost.

13
U.S. Market
The U.S. is closely linked with soft drinks with Coca Cola being an American
in much of the world. About 500 soft drinks companies operate in the U.S.
Annual sales of refreshments total approximately US $88 billion, of which
three quarters are soft drink sales. There are about 500 soft drink bottlers in
the United States.
Soft drink companies manufacture and sell beverage syrups which are
essentially bases to bottling operators that then add sweeteners and/or
carbonated water to produce the final product. Independent bottlers work
under license with various soft drink manufacturers and are generally allotted
specific territories to serve. Manufacturers not only provide the bottlers with
syrups and bases, but also often provide other business services such as
product quality control, marketing, advertising, and engineering as well as
financial and personnel training.
In return, the bottlers furnish the required capital investment for land,
buildings, machinery, equipment, trucks, bottles and cases. As noted
previously, the soft drink industry distributes and sells its product in two
primary forms: packaged and fountain service. In fountain service, the soft
drink product is dispensed and served in cups in restaurant or other retail
oriented location with a food service station.Coke, Pepsi and Cadbury
Schweppes control over 91% of the U.S. market share. They employ about
63,000 people in the U.S.
Indian Market
Soft Drinks in India industry profile provide top-line qualitative and
quantitative summary information including: market size (value, and forecast
to 5). The profile also contains descriptions of the leading players including
key financial metrics and analysis of competitive pressures within the market.
Essential resource for top-line data and analysis covering the India soft drinks
market. Includes market size data, textual and graphical analysis of market
growth trends, leading companies and macroeconomic information.

14
Highlights
-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 the
concentrates category. The market is valued according to retail selling price
(RSP) and includes any applicable taxes. Any currency conversions used in
the creation of this report have been calculated using constant 2010 annual
average exchange rates.
-The Indian soft drinks market generated total revenues of $3.8 billion in
2010, representing a compound annual growth rate (CAGR) of 11% for the
period spanning 2006-2010.
-Carbonates sales proved the most lucrative for the Indian soft drinks market
in 2010, generating total revenues of $1.9 billion, equivalent to 50.5% of the
market's overall value.
-The performance of the market is forecast to decelerate, with an anticipated
CAGR of 9.1% for the five-year period 2010-2015, which is expected to lead
the 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 more
than US $393 billion annually. North America, Europe and Japan are the
most mature markets for global soft drinks. Coco Cola and PepsiCo Inc have
significant control over the global soft drinks market and both have similar
business organizations and processes worldwide. The industry includes other
than the soft drink manufactures themselves, the bottlers and various raw
material suppliers. Suppliers of cans, plastic and glass bottles are included in
this category.

15
Globally, the soft drinks majors continue to face challenges. One key global
trend is a move away to healthier drinks, which may put some pressure on
yearly growth in sales of soft drinks. The push to diet beverages have been
well covered by the major producers – with sales of diet Coke and diet Pepsi
still strong. A recent trend is the rise in popularity of sports drinks. Bottled
water has also experienced very strong growth. Finally the quality of water
used in the manufacture of soft drinks poses serious issues for the industry.
Major players are working on the issue as water scarcity becomes a global
issue.
Industry Players:
The Coca-Cola Company
Coca Cola is the number one brand globally and has been for over 40 years It
is sold in virtually every country of the world. The successful expansion that
began in World War II has continued unabated up to this date. Now, the
company has more than 400 brands in its portfolio. Tab, produced in 1963
was one of the company‘s landmark marketing successes.
PepsiCo Inc.
Pepsi-Cola was created in 1898 in New Bern, North Carolina, by druggist
Caleb D. Brad ham. PepsiCo Inc. holds about one-third of the U.S. market
and is the second largest soft drink major in the world. It owns Frito-Lay
snacks and other businesses. Pepsi soft drinks include brands such as Pepsi,
Diet Pepsi, Slice, Mountain Dew and Mug Root Beer.
Cadbury Schweppes
Cadbury Schweppes PLC is the number three global soft drink producer. The
portfolio includes Squirt, La Casera, TriNa, Spring Valley, and Wave. It has
cornered more then 17% of the world market. Total sales exceed US $12.9
billion.

16
Trends and Recent Developments
Private labels are becoming more prominent. Private Labels are brands
owned by stores and retailed through them. These private label manufacturers
are retailing their brands very aggressively these days. Although, lowering of
prices 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 water
containers. Although the trend to bottled water is high, environmentalists
point out many of these are simply filtered tap water and that the discarded
bottles are causing environmental damage. The fallout among consumers is
unclear at mid-point 2007.
After nearly a year of deliberation, Cadbury has finally announced a date for
the de-merger of its US soft drinks arm, American Beverages. Although it
appears to make sense to separate this group from the company's
confectionery operations, the separation could leave Cadbury vulnerable to a
takeover, which its turnaround plan may be unable to prevent.
The de-merger, which was first announced as a possibility back in March
2007, will now take place in May and will see the creation of Dr Pepper
Snapple Group as a separate entity with a listing on the New York Stock
Exchange and its own management team. The confectionery arm is to be
renamed Cadbury plc and will be listed in London.

17
Celebrity branding and its effect on the consumer
It is a known fact that the best endorsements achieve an eclectic balance
between the product (brand) and the celebrity. Giving a brand a 'face' is more
than just a marketing strategy to increase sales or gain market share, it is a
decision that can change the future of the brand forever.
Choice of the celebrity, hence, is of utmost importance and is usually done
based on many different parameters - appeal, looks, popularity or even just a
fantasy figure to endorse a brand.
In today's highly competitive markets, big brands are at logger-heads when it
comes to products, each having a similar product to that of a rival. Where does
one brand gain that quintessential advantage - advertising, service, promise of
trust, or even the all important price factors? Advertising seems to be the best
platform where brands prefer to compete on - right from hiring the best
advertising agencies to getting the biggest celebrities. What would be the
formula to success then? Well, a good creative agency, a large enough
promotional budget and a huge star to endorse your brand would definitely
ensure in the minds of a brand management team a feeling of security, success
and a triumph over the competitors brand.
The general belief among advertisers is that brand communication messages
delivered 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 today's highly competitive environment.
The different models applied by brands to achieve the full potential of such
endorsements, highlight the need for a convergence between the theoretical and
pragmatic approaches of brand building and effective advertising. The
importance of a celebrity-brand match and the various roles played by them as
brand-associates show the momentum this strategy has gained in the last decade
or so. We put forward certain ideas like 'positioning by association',
'diminishing celebrity utility' and the Multiplier Effect which show the
triangular relationship between the brand, the consumer and the Celebrity.

18
Literature Review
Title : CELEBRITY ENDORSEMENT : A MARKETING STRATEGY
Author : Ms Radhika Madan
Lecturer - Marketing
IILM College, Gurgaon
This paper shows that Celebrity endorsement strategy can be an effective
competition weapon in mature markets in order to differentiate products from
competitors' since there is heavy advertising clutter. Celebrities have always
been the easiest way to attract the customers because of their mass appeal.
Though there are
Title : EFFECTS OF CELEBRITY ENDORSEMENT ON CONSUMER
BUYING BEHAVIOR AND BRANDING OF A BRAND
Author DR. GIRIDHAR K.V
Assistant Professor, Department of Com. & Mgt., Sahyadri Arts
& Commerce College Kuvempu University, Shimoga - 577203.
The study has focused on ―the effect of celebrity endorsement on consumer
buyingbehavior on brand‖ mainly on three prospective, marketer, celebrity and
consumer. Celebrity endorsements will be more effective when used
consistently over time to increase the strength of the link between the celebrity
and the endorsed brand.

19
Title : Impact of Celebrity Advertisement on Customers‘ Brand Perception and
Purchase Intention
Author :
Qurat-Ul-Ain Zafar
Scholar, Faculty of Management Sciences,
International Islamic University Islamabad, Pakistan
Mahira Rafique
Scholar, Faculty of Management Sciences,
International Islamic University Islamabad, Pakistan
Celebrity endorsement has reasonable impact on customers as per their attitude
and purchase intention. Celebrity endorsement has come out as not only an
influential factor but rather a causal factor in the results of this paper. Physical
attractiveness, credibility and congruence of celebrity with reference to the
endorsed advertisement all have impact on the customer‘s perception about the
advertised product. The tests have by and large bore favorable significant results
in the light of variables used

20
Tiltle: A Study on Consumer Buying Behaviour on Celebrity Endorsement and
Brand Building of Automobile Industry in Tamil Nadu, India
Author:
Annadurai Pughazhendi
Research Scholar , PSG Institute of Management (PSG College of Technology)
Coimbatore, India
D. Sudharani Ravindran
Professor, PSG Institute of Management (PSG College of Technology)
Coimbatore, India
This paper investigate that the choice of celebrities to fulfill that role has
become common practice for brands competing in today's cluttered media
environment. There are several reasons for such extensive use of celebrities.
Because of their high profile, celebrities may help advertisements stand out
from the surrounding clutter, thus improving their communicative ability. A
brief assessment of the current market situation indicates that celebrity
endorsement advertising strategies can, under the right circumstances, indeed
justify the high costs associated with this form of advertising.

21
Title : Impact of Celebrity Endorsement on Consumers‘ Buying Behavior
Author : Pradeep Agrawal Research Scholar,
Faculty of Management Studies, Banaras Hindu University,
Varanasi. 221005
Dr. S. K. Dubey Associate Professor,
Faculty of Management Studies, Banaras Hindu University,
Varanasi. 221005
This paper shows that Celebrity endorsement decisively gives more visibility to
the product endorsed. What-so ever the Ground realities may be, but the masses
still try to imbibe a style imitating the celebrities. The Brands, taking into
consideration all the related factors, can make best use of either the ‗Bollywood
stars‘ or ‗Sports star‘ to endorse their product. Yet not many studies are
conducted to test if the celebrity advertisement appeal carries on towards
both male and female, or only towards a particular gender. Companies
must understand that the fees for celebrity talent can be substantial, cost of
national advertising, especially on television, is extremely high, and the type of
spokesperson affects the levels of awareness and recall Studies with regards to
celebrity endorsers, researchers have included the issue of demographics.

22
Theatrical aspect of the study
What is celebrity endorsement?
The use of celebrities in order to increase the sales and/ or the recall value of a
brand is called celebrity endorsement
The late '80s saw the beginning of celebrity endorsements in advertising in
India. Hindi film and TV stars as well as sportspersons began encroaching on a
territory that was, until then, the exclusive domain of models. There was a spurt
of advertising, featuring stars like Tabassum (Prestige pressure cookers), Jalal
Agha (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 a
strategic, long-term, mission statement kind of way was for Lux soap, a brand
which has, perhaps as a result of this, been among the top three in the country
for much of its lifetime.
Endorsements by celebrities have started since a long time. The very fact that
their use has continued for so long is proof enough of its immense advantages,
but they have several disadvantages too. When it comes to celebrity
endorsement, the first brand that comes to the Indian mind is that of Lux, the
Beauty Bar of the Stars. Since its inception, Lux the brand has grown
positioning itself thus. However, recently Lux has tried to change its positioning
from being a woman‘s soap to being soap for men as well. Sticking to its
strategy of using celebrities to appeal to its target audience, this time around it
has used Shah Rukh Khan to endorse Lux. But this time the response has been
confusing.
One of the first sports endorsements in India was when Farokh Engineer
became the first Indian Crickets to model for Brylcream The Indian cricket
teams now earns roughly Rs. 100 crore through endorsements. There was a
spurt of advertising, featuring stars like tabassum (Prestige Pressure cookers).
Jalal Agha (Pan Parag).Kapil Dev (Palmolive Shaving cream) and Sunil
Gavaskar (Dinesh Sutings)

23
RISE OF CELEBRITY CULTURE
The modern mass media has increased the exposure and power of celebrity.
Often, celebrity carries with it immense social capitals that is highly sought
after by some individuals. High paying jobs and other social perks unavailable
to most people are readily available to celebrities, even for wok not connected
to the talents or accomplishment that made them famous. For example A retired
athletes might receive high ―speaking fees ‗ or compensation for public
appearances, despite his talent having been sports.Often, celebrities cannot
escape the public eye & risk being followed by fans. As well, child celebrities
are notorious for having poor emotional health in adulthood, and often turn to
drug and alcohols abuse when their fame fades.
In India today, the use of celebrity advertising for companies has become a
trend and a perceive winning formula of corporate image building and product
marketing. Associating a brand with a top-notch celebrity can do more than
perk up brand recall. It can create linkages with the stars appeal, thereby adding
refreshing 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 feel
in you, whether it‘s humors, acceptance, appreciation or recognition. These are
the faces you‘d turn to look at, the ones that would stop you in your tracks. And
that‘s when you have more than just a face. You have personality. ―Personality
that‘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 become
paramount- and celebrities have proved to be the ideal way to ensure brand
prominence. Synergizing personality with product and message can create an
instant breakthrough. Result? Brand buzz. People begin to notice, opportunities
come about. People want to be part of the brand.
―Touch it. Feel it. Experience it.‖

24
IS IT SMART TO USE CELEBRITY ENDORSEMENT FOR
BRANDING?
Stars, who are known to shape destinies, cast an enormous influence. No, we‘re
not talking about astrology here. We‘re referring to the powerful effect of
celebrities on destinies of brands. One approving nod from a famous face can
translate into millions in brand sales. Perhaps that‘s why the world over,
companies have been using stars to endorse everything, from food to food
chains,from soft and hard drinks to health drinks, from clothes and accessories
to cars (and the tyres onwhich they run).
Even political parties are awestruck by the charisma of stars. Such is the
magnetism of celebrities in this country that in the recent general elections,
major political parties fielded a record number of film stars and cricketers to
contest from important constituencies around the country.
CELEBRITY ENDORSEMENTS AS A STRATEGY
Signing up stars for endorsements is a time-tested strategy and has been
effectively used by some of the top brands in the world including Nike and
Pepsi. In India too, HLL has used Hindi film stars to endorse their beauty soap
Lux since the fifties. Vimal, Thums Up, Gwalior and Dinesh are some of the
other brands that used star-appeal in the early days of mass advertising. And
who can forget Kapil ‗Palmolive‘ Dev?
Marketers believe that star endorsements have several benefits, key among them
being building credibility, fostering trust and drawing attention or any or all of
which can translate into higher brand sales.
So how does one decide whether to put a celebrity in an ad? Ideally, this should
be dictated by the communication idea. MG Parmeswaran, Executive Director
of FCB Ulka says, ―As advertising professionals, we recommend celebrity
endorsements when the case is justified.

25
Celebrity Endorsement in Indian Soft Drink Companies
Pepsi (Oh Yes Abhi!)
New Delhi, January 29, 2013: The newand young India is impatient and wants
to do things ‘right now’. This is the pulse of the nation, the new youth
hilosophy that Pepsi aims to bring alive through its mega campaign and new
brand positioning, ‘Oh Yes Abhi’. This marks the beginning of a new journey
for Pepsi in India and will be followed by a series of innovative and exciting
initiatives over the course of the year.
The up-coming commercial scheduled to go on-air on February 1 creates a
spectacular 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 and
eat PaniPuri coupled with his Pepsi; Dhoni, the calm and composed sportsman
is 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 the
impatient youth, who believe in making the most of the moment and therefore
wants action „right now!‟. Oh Yes Abhi! translates into - live for the present as
tomorrow is too late,„now‟ is the time to bring about a change; „now‟ is the time
to take action; if you wish to make it big, work on it „now‟ and many such
sentiments synonymous to the young generation today. Our latest campaign
illustrates all this and much more in a quintessential irreverent Pepsi package”.
Homi Battiwalla, Senior Director – Marketing (Colas, Juices and
Hydration), PepsiCo India further added,,“By anticipating the pulse of the
nation ahead of the curve, Pepsi yet again establishes itself as a trend-setting
brand. Our new brand positioning, Oh Yes Abhi! reiterates the hunger for
impatience 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 impatience
of youth presented in a grand manner.”

26
The TVC brings alive Pepsi‘s youthful irreverence and demonstrates the Oh Yes
Abhi! moments of these Pepsi brand ambassadors and youth icons. Priyanka
Chopra, in her latest pop star look is shown waiting impatiently, all anxious to
go on the stage for her first live performance; while Ranbir Kapoor, stuck in a
traffic jam on Mumbai‘s busy streets, craving for street foodand a chilled glass
of Pepsi, instantly runs towards a PaniPuri stall to gorge on it one after the
other.
On the other hand, MS Dhoni, known to beexpressionless about winning or
losing in true sportsman style, is shown breaking into a celebratory dance in the
middle of the field after the much awaited World Cup 2011 win.“This film not
only captures the stars in their impatient avatars, but also shows many moments
from our everyday lives that exemplify the belief of „now‟. Shot at different
locations, whether in the middle of a cricket stadium or a crowded Mumbai
street or in a small town, the ad-film proves to be a true spectacle for
consumers. Moreover, we‟ve worked with Nirvana Films who‟ve been
successful in showcasing the product in a completely new and larger than life
manner”, 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-ground
amplification andan outdoor campaign amongst other initiatives. The
excitement continues on digital platforms like Facebook and Twitter; and aims
to build hype on various impatient moments.

27
Coke (Open Happiness)
Open Happiness is a global marketing campaign for The Coca-Cola
Company that was rolled out worldwide in the first half of 2009, following the
company's "Coke Side of Life" advertising campaign. It was developed by the
Wieden + Kennedy creative agency.
The campaign was launched on the reality television series American Idol on
January 21, 2009, and rolled out to other national markets over the following
weeks. In the United States, commercials following the Open Happiness theme
appeared during NBC's broadcast of Super Bowl XLIII on February 1, 2009,
and during ABC's broadcast of the 81st Academy Awards on February 22,
2009. Marketing for The Coca-Cola Company based on the Open Happiness
theme also appeared in the United States as print ads in newspapers, in
television 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 and
Siddharth Malhotra for the new commercial. The TVC created by McCann
WorldGroup 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 working
frantically. He is clearing dishes, taking orders from patrons and receiving
instructions from the owner of the café. Seated at a table are Bollywood actors
Alia Bhatt, Varun Dhawan and Siddharth Malhotra. Dhawan asks for three
bottles of Coke. Bhatt changes the order to four bottles. She gives a casual shrug
when asked why by Dhawan and Malhotra. When the waiter sets the bottles on
the 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. The
boss nods in the affirmative and the waiter along with the three youngsters
enjoy their drink. A voice over signs off saying, 'Bewajah khushiyan lutao,
Coca-Cola pilao'.

28
On the new TVC, Anupama Ahluwalia, vice-president, marketing, Coca-Cola
India and South West Asia, said, ―Brand Coca-Cola has been at the forefront in
making a cultural point of view that encourages optimism and positivity in our
everyday 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 that
the new Coca-Cola campaign serves as the thought starter, the trigger which
encourages 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 young
and 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 the
campaign was to take the 'Crazy for happiness' theme to an individual level,
with a call to action. The emotions of togetherness and celebration, energised by
a bottle of Coca-Cola, are very real and identifiable, and we are sure that
everyone 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 key
markets.

29
Thumbs Up (Ajj Kuch Tufani Karte hay )
Thums Up‘s 2012 summer campaign employs a new tagline, ‗Aaj kuch toofani
karte hain‘. The TVC also showcases a new star cast, headlined by South Indian
actor (and the brand‘s ambassador in the South)Mahesh Babu.
The TVC, created by Leo Burnett, shows Babu and his friends cutting short a
thirty minute trip across the city to just three minutes by taking the route less
travelled – gliding down wires, jumping roofs and slipping down pipes, in the
daredevil style typical of the brand.
According to the brand, ―This campaign marks the evolution of the Thums Up
man from being the ‗Angry Young Man‘ to the ‗Cool Risk Taker‘ to the
follower of ‗Playful Mastery‘ and now the advocate of ‗Bold Masculine
Leadership‘.‖
Commenting on the film, Sainath Saraban, executive creative director, Leo
Burnett, said, ―The new ‗Aaj Kuch Toofani Kartey Hain‘ campaign with
Mahesh Babu, Sahil Shroff, Dhaval Thakur and Angela Jonsson has been
designed to give the consumers a differentiated and thrilling experience.‖
Nomad Films is the production house and Nick Livesey is the director.

30
Mountain 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 its
'Darr se mat daro, darr ke aage jeet hai' plank.
The ad created by Taproot India shows how Roshan putting his fears aside after
drinking Mountain Dew and jumping into the water from a high cliff. The ad
goes 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, with
our brand ambassador Hrithik Roshan. This campaign is true to the brand
philosophy ‗Darr Ke Aage Jeet Hai‘ and brings alive how one can face the
worst fears and vanquish them. It was a challenge to shoot this ad, given the
location and the need to look authentic, and we had the perfect partner in
Hrithik, who went all out to make the dive come alive. We look forward to a
strong surround campaign to bring alive this new creative.‖
Agnello Dias, creative director, Taproot India, added, ―Everybody feels fear. To
be courageous is defined by one‘s fear rather than the fact that they feel no fear
at 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 and
fearful like a normal person and transform into a heroic and fearless performer
the next moment. He has the ability to carry off both with equal ease.‖

31
Research Methodology:
Title of the study:
―Impact of celebrity endorsement on consumer buying behavior with respect
to soft drinks ―
Objectives of study:
The objectives of the study are as follows:
 To identify the factors that motivate and affect the purchase attitude of
the consumers
 To study the consumers perception on endorsement of celebrities through
advertisement of consumer response
Sources of Data
For the study purpose both primary and secondary data are used. The primary
data collected from customers who are consuming soft drink through structured
Questionnaires the secondary data collected from the various website and
research projects.
Sampling Size:
It is the total number of respondents targeted for collecting the data for the
research. Sample size of 00 persons will be taken for this research.

32
Research Instrument
Structured Questionnaires
Sample plan
Sample unit
Customers who are consuming soft drinks.
Sample size
200 sample for research work.
Sampling method.
The sample is selected by using non probability convenience sampling method.

33
Data Analysis
What is your occupation?
Interpretation:
From this pie-chart it is clear that majority of the respondents are students and
rest of the share is occupied by service and business class
80
40
40
40
Occupation
Students
Business class
service class
Others

34
Age:
Interpretation:
This pie-chart depicts that mostly respondents are young and while rest are
above 25 years.
80
50
50
20
Age
18-25
26-32
32-39
More than 40

35
Gender
Interpretation:
This pie-chart depicts that 98% of the respondents are male and 2% are
Females.
180
20
Gender
Male
Female

36
Which category of products you like most?
(a) Soft drink (b) juice (c) others
This pie-chart depicts that 120 of the people like soft drink and 40 people like
juice and rest people like other drink.
12040
40
Which category of products you like most?
Soft drinks
Juse
others

37
If soft drink than which product you prefer mostly?
a) Pepsi
b) Coca Cola
c) Local brands
d) Not Specify
Interpretation:
This pie-chart depicts that 50 of the people like Pepsi and 60 people like coca
cola and 50 people like local brand
50
60
50
40
If soft drink than which product you prefer
mostly?
Pepsi
Coca Cola
Local brands
Not specify

38
Do you collect any information or take advice before your purchase decision?
a) Yes
b) No
Interpretation
This chart shows that 120 people take advice before purchase decision
120
80
Do you collect any information or take
advice before your purchase decision?
Yes
No

39
If yes than which factor affects you most?
a) Friends
b) Advertisement
c) Opinion Leader
d) Others
Interpretation:
The chart depicts that 65 of the people consider advertisement while going for
The purchase, followed by advice from friends 45,opinion leader 55 and 45
people Consider other factor..
45
65
55
45
which factor affects you most
Friends
Advertisements
Opeinion Leder
Others

40
Which factor related to product affects you most?
a) Price
b) Quality
c) Celebrity endorsement
d) Others
Interpretation:
The chart depicts that 75 of the people consider celebrity endorser while going
for the purchase, followed by price-with30,quality with 50 and 30 people
Consider other factor. As people usually are more interested towards well
known brands and if these brands are advertised by famous celebrity it creates a
huge impact.
45
5075
30
Which factor related to product affect you
most?
Prise
Quality
Celebrity Endorsement
Others

41
Do you like to see any celebrity endorsing your brand?
a) Yes
b) No
Interpretation
This chart 120 people like to see celebrity endorsing in their brands. This
clearly shows how much important these celebrities are in the daily life of
common man.
120
80
Do you like to see any celebrity endorsing
your brand
Yes
No

42
What comes in your mind when you go for Soft drinks?
a) Celebrity endorsement
b) Brand
c) Quality
d) Test
Interpretation:
This pie-chart depicts that 65 of the people consider celebrity endorser while
going for The purchase, 55followed by brand name-with ., quality with 45 and
35 people Consider test . ..
65
55
45
35
what comes in your mind when you go for
Soft drinks ?
Celebrity Endorsement
Brand
Qulity
Test

43
Do you think celebrity endorsement work as an effective tool of persuasion for
Soft drinks?
a) Strongly Agree
b) Agree
c) Disagree
Interpretation:
This pie chart depicts that mostly people agree that Celebrity
endorsement is an effective tool of persuasion. 45 of people strongly
agree that celebrity endorsement is an effective tool of persuasion and
95 people slightly agree that it work as tool of persuasion and 60 of
people disagree that it is one of the tool.
45
95
60
celebrity endorsement work as an effective
tool of persuasion for Soft drinks?
Strongly agree
Agree
Disagree

44
In case of Soft drinks celebrity persona you like most?
a) Bollywood Stars
b) Sports Stars
c) Others
Interpretation:
This pie-chart depicts that 65 people like to see bollywood stars to endorse their
Brands and 75 of them sports star. While remaining 60 want others
65
75
60
In case of Soft drinks celebrity persona you
like most
Bollywood Stars
Sports Stars
Others

45
Is celebrity endorsement making you loyal toward soft drinks?
a) Yes
b) NO
Interpretation:
This pie-chart depict that 140 respondents agree that endorsement of Pepsi by
their favorite celebrity make them loyal toward Pepsi and 60 don‘t agree with
this.
140
60
Is celebrity endorsement making you loyal
toward soft drinks?
Yes
No

46
Findings:
After completing survey I found that:
The research shows that the celebrity endorsement playing a key role on
Indian consumers
Most of respondent said that when they were going to purchase soft
drinks first celebrity of the particular brand comes in the mind of the
consumer when they see different brands of the soft drinks
Film stars and sports stars both are equally effective as a celebrity
endorsement
Out of 200 respondent 140 respondent said that celebrity endorsement
make them loyal toward the soft drinks
Most of the respondent agree upon that the celebrity endorsement is the
effective persuasion

47
Limitation:
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 left
untouched
 The Area undertaken in research in Himmatnagar only. But to do a
completer research a wide area is required, so the area is also a constraint
of the study.

48
Conclusion:
In India celebrities‘ position in the mind of people is very high. People looks as
their Idol and millions of people follow them. In all region of the country
different celebrities follow by their fans like a god. In cricket Sachin Tendulkar
,Ms Dhoni, Virat Kholi . In bollywood male endorser and female endorser both
effective in ads like Amitabh Bachchan ,Shahrukh Khan , Salman Khan ,
Ketrina Kaif ,Bipash Basu ,Ashwrya Rai Bachchan .These celebrities also using
their name for endorsement very effectively.
Celebrity endorsement in soft drinks playing a key role for the soft drinks
companies. Soft drink is product which purchase for enjoyment. It is not
necessary product for the consumer. So all soft drink companies are highly
concentrate on advertisement campaign especially for TV advertisement. For all
soft drink companies like coca cola, Pepsi use celebrity as a market strategy and
got positive result. Consumer is highly affected by celebrity when he/she going
to buy a soft drink. That show how celebrity endorsement is effective with
respect to soft drinks.

49
Bibliography:
REFERENCES:
Philip A.Stroke(2009), "impact of celebrity endorsement on stock
prices", Journal of Consumer Research, Vol. 14 No.March .
Roy, Shubhadip (2007), "Consumer‘s perceptual space and Indian
celebrities in relation to brand attributes", Journal of Business Research,
Vol. 37 No.1,
Shimp (2007), "Celebrities as spokesperson", Journal of Retailing, Vol.
76 .
http://www.coolavenues.com/know/mktg/surabhi6.php
http://www.thehindubusinessline.com/2008/04/08/stories/2008040851250
500.htm
http://timesofindia.indiatimes.com/articleshow/1507842.cms
http://in.movies.yahoo.com/news-detail/15671/Celebrity-endorsements-
ensure-highersale-
http://www.merinews.com/catFull.jsp?articleID=183
http://www.icmrindia.org/free%20resources/Articles/Celebrity%20Endor
sement1.htm
· http://catalogue.ausport.gov.au/fulltext/1998/cjsm/v2n1/dyson.htm
http://www.campaignindia.in/Video/338791,coca-cola-urges-people-to-
spread-happiness-sans-reason-in-summer-campaign.aspx
http://www.campaignindia.in/Video/337684,mountain-dews-latest-darr-
ke-aage-jeet-hai-adventure-goes-on-air.aspx
http://www.pepsiohyesabhi.com/?utm_source=Google&utm_medium=T
ext&utm_term=keyword&utm_campaign=PepsiIPL&gclid=CL-
0_NO40rYCFVEO6wod7jsAuw

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

More Related Content

What's hot

Viewers also liked

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

Recently uploaded

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