Ch.# 1.0 Ch.# 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Ch.# 3.0 3.1 3.2 Ch.# 4.0 4.1 4.2 4.3 4.4 4.5 Ch.# 5.0

Introduction………………………….. Research Methodology………………. Primary Objective……………………. Hypothesis…………………………… Research Design…………………….. Sample Design………………………. Scope of the Study………………….. Limitations…………………………… Critical Review of Literature…………. Communication Theories…………….. Models in Celebrities Endorsement…… Brand, Celebrity and Consumer……… Brand…………………………………. Celebrity……………………………... Celebrity Endorsement……………….. Celebrity and Brand…………………. Understanding Consumer Behavior…. The Advantages and Disadvantages of using Celebrities as endorsers………… 29

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31 32 33 34 34

39 47 51 60 63 67 70 74

Ch.# 6.0 Ch.# 7.0 Ch.# 8.0

Celebrity Endorsement- An Indian Perspective Findings and Analysis………………… Suggestions……………………. Conclusion……………………………

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Bibliography and References………… Annexure…………………………….

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Case Study……………………………

Impact of Celebrity Endorsement



The use of celebrities endorsing brands has been steadily increasing over the past 20 years or so. Marketers visibly acknowledge the power of celebrity in influencing buyer's purchase decision and thereby extending the market share of the company. They believe that likeability or a favorable attitude towards a brand is created by the use of a celebrity. Different kinds of celebrities are used for endorsement purpose, but two of the most common types are entertainers and sports persons.

The purpose of this study is to understand the kind of impact these endorsements have on consumers and there by on the brands. In order to achieve this purpose three research questions have been considered:

Why and when do brands use celebrities as endorsers? What are the risks involved in celebrity endorsements? What impact does celebrity endorsements have on consumer behavior?

Research uses primary source of data. The research tools applied for the analysis of data were mainly statistical tools. The scope of the research is limited to the responses of 100 people living in Delhi NCR region. On the basis of analysis and the interpretations of the results obtained certain recommendations and conclusions have been derived from the research.

The main limitation of this research is that the scope of this research is limited to the response of 100 people who will be filling the questionnaire and thus cannot be generalized for the whole population.



The quick message-reach and impact are all too essential in today's highly competitive environment. they increase a marketer's risk manifolds and should be treated with full attention and aptitude. each having a similar product to that of a rival. hence.right from hiring the best advertising agencies to getting the biggest celebrities. despite the potential benefits derived from celebrity endorsements.1. cricketers. Choice of the celebrity. familiarity. attention and recall than those executed by non-celebrities. and even criminals. promise of trust.0 INTRODUCTION It is a known fact that the best endorsements achieve an eclectic balance between the product (brand) and the celebrity. politicians. service. popularity or even just a fantasy figure to endorse a brand. it is a decision that can change the future of the brand forever. and above all. In today's highly competitive markets. comfort.advertising.profit. India is a country where people are star-struck by film stars. everyday people need something or someone to look up to. A sense of security. A brand 5 . someone they aspire to be at some hidden level in their lives. The general belief among advertisers is that brand communication messages delivered by celebrities and famous personalities generate a higher appeal. is of utmost importance and is usually done based on many different parameters . Why? Populations of 1 billion and ticking. Giving a brand a 'face' is more than just a marketing strategy to increase sales or gain market share.appeal. market share and even recall. or even the all important price factors? Advertising seems to be the best platform where brands prefer to compete on . big brands are at logger-heads when it comes to products. Where does one brand gain that quintessential advantage . admiration. And clever marketers leverage this very celebrity appeal and are successfully carrying out their jobs by giving the bottom lines of all the brands what they want . looks. Now.

As the celebrities traverse from a mere commercial presence to public welfare message endorsements. dies? Will the product lose consumer support or perish? 6 . the questions that need to be answered are: does a company benefit from a celebrity endorsement? Does anyone buy a product because a Bollywood or TV actor/actress stands up and reads a script in somewhat convincing manner? Are their distinctions in how consumers perceive these types of endorsements and respond to them? What happens when a celebrity endorser gets involved in a public scandal. or worse. The growing importance of mythical characters as celebrities and their sway over the target segments are ample proof of public demand for icons to look up to. At the end of the day. a whole new dimension is added to this process and helps us in achieving a holistic view of the impact which celebrities generate in every sphere and segment through their well-versed endorsements.should be cautious when employing celebrities to ensure promise believability and delivery of the intended effect.


To find the motivating factors that affects the buying decision of a consumer? 2. To examine whether Celebrity endorsement leads to brand enhancement or not 5. It is the maneuver of doing research of particular problem. rules. SECONDARY OBJECTIVE The secondary objectives of this research are as follows: 1. 2. It is the specification of methods and procedures for acquiring the information needed. It is overall operational pattern or framework of the 8 . to be applied within a discipline and a particular procedure or set of procedures. To examine why does the brand uses the celebrities as endorsers 2. structure and strategy of investigation conceived so as to obtain to research problem and control variances. To find whether consumer focuses on their needs and cost factor or gets carried away by brands enhanced by the famous people 6.2.1 PRIMARY OBJECTIVE The primary objective of this research is to analyze the effect of Celebrity Endorsement on Consumer Behaviour. (H1)1 = Celebrity Endorsement does not cast an impact on consumer buying behaviour through advertisements.3 RESEARCH DESIGN A research design is the plan. sampling method and data collection sources etc. 2. and postulates employed by a discipline. To find what are the various risk involved in using celebrities as endorsers 4. This includes type of research.2 HYPOTHESIS (H0)1 = Celebrity Endorsement does cast an impact on consumer buying behaviour through advertisements. the development of methods. To find out when does the brand uses the celebrities as endorsers 3.0 RESEARCH METHODOLOGY Research Methodology is the analysis of the principles of methods.

In this project report. 9 .work together to try to address the central research questions. people etc) to include in a survey in order to provide a good basis for measuring economic and social phenomena. which are clearly mentioned in detail in the later part of this project report. measures. Research design provides the glue that holds the research project together. certain conclusions have been derived. Type of research design.the samples or groups. On the basis of analysis of the result collected from the survey. to understand the psyche of the customers to know their needs. A questionnaire was then drafted for the same.4 SAMPLE DESIGN Sample design is about choosing how many elements (businesses. The procedure by which a few subjects are chosen from the universe to be studied in such as way that the sample can be used to estimate the same characteristics in the total is referred to as sampling. to show how all of the major parts of the research project -. 2. The data collected is in the form of a questionnaire as primary data and certain studies which have already been conducted are also considered which will be used as secondary data. A design is used to structure the research. It includes calculating quality measures based on sampling (sampling errors). treatments or programs. Estimation is about producing aggregate information from data collection in samples. expectations and their attitude.DESCRIPTIVE The research is descriptive in nature. and methods of assignment -. their liking and disliking and their views and comments about Celebrity Endorsement and towards the brand that they see on various media mode.project that stipulated what information is to be collected and from which source and by what procedure. firstly primary data was collected regarding how a celebrity can help a consumer in identification of a product.

Some of the limitations in the course of research are as follows Sampling error.Type of sample design. sometimes the respondents were reluctant to give their time in order to fill the questionnaire. 10 .5 SCOPE OF THE STUDY The research conducted attempts to find out the effect of celebrity endorsement on consumer buying decision.since we are restricted to just four months to cover the work.  Limited time. 2. which can not determine the characteristics of the total population.the research included a small sample size.  At times the information given by the respondents were found to be contradicting in nature. The survey conducted involves a sample of 100 elements. which is less to undergo the entire study. In order to achieve this purpose a survey has been conducted which include 100 elements from Delhi NCR region. Thus the scope of the study is limited to the response of 100 elements only.CONVEYNCE The research is to be based on non probability sampling technique which attempts to obtain a sample of convenience element.  Also. 2. The problems arise in the form of constraints with time and scope of study.6 LIMITATIONS Research project are hindered in their smooth flow by some unforeseen problems.


immediate and powerful effect on their audiences. such as advertising and propaganda.2 Source Attractiveness Model 3.1.3 Elements of communication 3.1 COMMUNICATION THEORIES: 3.1 The one step communication model 3.1.1 Source Credibility Model 3.1. media is seen as a powerful hypodermic needle that injects information directly into the mind of the masses. they thought that media was allpowerful. 12 .2. which are eager to receive it.2. and the emergence of the persuasion industries.3.2. MEDIA The "hypodermic needle theory" implied mass media had a direct. They developed the ONE STEP FLOW also called the HYPODERMIC NEEDLE MODEL. including: the fast rise and popularization of radio and television.4 Meaning Transfer Model When researchers first began to study mass communication. This way the masses would know what they were told to know and do what they were told to do through the power of mass communication.2 MODELS IN CELEBRITY ENDORSEMENT 3. In the 1940s and 1950s mass media were perceived as a powerful influence on behavior change. In this model. Several factors contributed to this "strong effects" theory of communication.2 The two step flow model 3.2.3 Product Match-up Model 3.

The above model shows that the information does not flow directly from the text into the minds of its audience unmediated but is filtered through "opinion leaders" who then communicate it to their less active associates.2 THE TWO STEP FLOW MODEL By the year 1940.1. synthesize it. An opinion leader as a peer to whom others turn for information and influences the opinion of others. researchers realized that there was more to simple mass communication cause and effect model. This model shows information flowing from the media to opinion leaders and from them to the masses. This was shown in the TWO STEP FLOW MODEL developed by KATZ and LAZARFELD in 1955. The audience then mediates the information received directly from the media with the ideas and thoughts 13 . While the mass communication does have some effect. They became aware that while people do get some of their information from the media directly. it wasn’t the media alone that made them act. think about it and pass it on to others. especially from the people which the researchers called opinion leaders. Opinion leaders gather the information from the media and other resources.3. the strongest influence comes from the interpersonal communication. over whom they have influence.

especially for professional communicators who were trying to influence the opinions and actions of large number of people. the form of communication is considered to be interpersonal as he or she seems to influencing the customer directly into purchasing a product by giving his or her opinion about it. There are two types of opinion leaders:  Formal opinion leaders are people whose opinion is valued because they hold an important office or position for example film stars.3 THE COMMUNICATION PROCESS AND ITS ELEMENTS: 14 . these celebrities can easily be categorized as opinion leaders. sports celebrities. 3. Since people relate to such celebrities and are deeply impacted by their endorsements.expressed by the opinion leaders. thus being influenced not by a direct process. The idea of opinion leader became very important. When a celebrity endorses a product through a mass medium. politician etc  Informal opinion leaders are people who just have a strong influence on the opinions of their peers.1. but by a two step flow. Therefore there are cases where people get lured into buying a product without knowing its true characteristics.

The process of putting thought into symbolic form is called as encoding. as without it the sender would not be able to make out if the receiver has been able to interpret the message in the way it was intended. In mass communication receivers are large in number and thus are self directed.  RESPONSE and FEEDBACK: Response is a set of reactions that the receiver has after being exposed to the message. 15 . It should be such that it is easily understandable and transmittable through the channel of communication being used. There can be many people involved in originating the information. Noises can be of three kinds: semantic. The channel used should be in accordance to the message.  MESSAGE: The message is the actual idea which the sender wants to transmit to the receiver.  NOISE: Noise is the unplanned hindrances in the way of the communication process due to which receiver receives a different message then that send by the sender. it can range from 1-2 individuals to a large organization depending upon the type of communication process involved  ENCODING: The message so generated by the sender has to be passed to the receiver. Feedback is an important part of the communication process.  DECODING: The message so sent by the sender has to be transferred into a form which is easily understandable by the receiver.  CHANNEL: A channel is the medium through which the message is send by the sender to the receiver. The channel used can be audio. And on this basis sender modifies his/her message. visual or audio visual medium. The message can be verbal or non verbal. As can be seen there eight elements to any communication process. They are explained below:  SENDER: The sender is the source from where the information originates.The above diagram represents the actual communication process. The decoding of the message greatly depends upon the social environment  RECEIVER: The receiver is the person/persons to whom the message is directed at. environmental and mechanical.

Furthermore. “Source Attractiveness Model”. In a research study McGinnies and Ward (1980) found that an expert a trustworthy source generated the strongest opinion change by consumers and the trustworthy communicator was persuasive whether an expert or not (Ohanian 1990). 41). “Match up Proposition” and “Meaning Transfer Model”. et al. 1953). reputation. These include “Source Credibility Model”. research has also demonstrated the positive effect of trustworthiness on attitude change. refers to a communicator’s positive characteristics that affect the receiver’s acceptance of a message” (Ohanian 1990. prestige. Ohanian’s (1990) study is considered to be a key research paper in the 16 . (1989) indirectly supported source credibility model. Till and Busler (2000) found the expertise dimension to be more important than physical attraction as a match-up factor. Kamins. 41) and rests on the research in social psychology. The ‘Source Credibility Model’ is generally considered to have two main dimensions. 3. This is because of different operationalisations and use of different labels and terminology such as ethos. In their study. Previous research established a link between expertise and persuasiveness. most of the work can be classified into the following four theory areas. enhanced credibility and effectiveness was reflected in overall higher ratings on perceived quality of service and respondents also revealed greater purchase intentions. It should be noted that it is often difficult to define “source credibility” in exact terms. p. authority and competence by different researchers and authors (Ohanian 1990 p.3. namely “Trustworthiness” (the audience's degree of confidence in and degree of acceptance of the speaker and the message) and “expertness” (the extent to which a communicator is perceived to be a source of valid assertions). An expert celebrity tends to be more persuasive and generates a higher willingness to buy the brand by consumers.1 SOURCE CREDIBILITY MODEL “Source Credibility” in a broad sense.2 MODELS IN CELEBRITY ENDORSEMENTS Whilst there is a growing interest in the literature regarding celebrity endorsement. This model suggests that the effectiveness of a message depends upon how the consumers perceive the endorser (Hovland et al.2.

These were reduced to 27 items representing three dimensions (expertise. Her three factors fifteen-item credibility scale has been widely accepted and replicated by other researchers. Using two exploratory and two confirmatory samples. The whole study was divided in two stages. In the exploratory stage. the items with the lowest item-to-total correlations were eliminated while maintaining an acceptable level of reliability. Ohanian (1990). Four celebrities and four products were selected and to purify and validate the scale. Ohanian (1990) developed a fifteen-item semantic differential scale to measure perceived expertise. Two adult samples (138 and 127) and two different celebrities (Linda Evans and Tom Selleck) were used to support the generalizability of the scale. after assessing the level of familiarity (with Madonna and John McEnroe).area of celebrity endorsement.2 SOURCE ATTRACTIVENESS MODEL Source Attractiveness Model. Source: Construction and Validation of a Scale to Measure Celebrity Endorsers’ Perceived Expertise. Following table represents the final three dimensions source credibility scale. in order to obtain a practical size of five items per factor. trustworthiness and attractiveness) by factor analysis. five items per subscale (total of 15 items) along with some other validation items were used to assess the final scale’s reliability and validity. Table 2. The source attractiveness 17 . In the confirmatory analysis. and Attractiveness. considered to be a component of the “source valance” model (McGuire 1985) and draws on the research in social psychology.1 Source-Credibility Scale 3. Trustworthiness. Finally. respondents were asked to evaluate 72 semantic differential items. trustworthiness and attractiveness.2.

Caballero and Pride 1984. product attitudes and purchase intention to a greater extent than endorser likeability or level of product involvement (Kahle and Homer 1985). Sources that are familiar. product attitudes. there should be congruence between the product and the celebrity in terms of characteristics such as image. He paired attractive and unattractive celebrities with either attractiveness related or unrelated products. namely “familiarity” (knowledge of source through exposure). Findings for the research studies conducted by Baker and Churchill (1977). Mills and Aronson 1965). He paired a 18 . likeable and/or similar to the consumers are attractive and to this extent persuasive (Ohanian 1990). It suggests that effectiveness of the message depends on these four dimensions. Kahle and Homer (1985) found that in the case of attractiveness related products. Joseph 1982.2. Friedman and Friedman (1979). 3.3 PRODUCT MATCH-UP MODEL The “Celebrity-Product Match” proposition holds that in order to make an advertisement effective. Empirical findings posit that physical attractiveness is one of the key factors in an individual’s initial judgment of another individual as well as influencing attitude change (Baker and Churchill 1977. and “attractiveness”.model is mainly based on four dimensions. Chaiken 1979. Physical attractiveness of the celebrity endorser was found to influence subject recall. and purchase intention. such as home computers. “likeability” (affection for source based on his/her physical appearance or behaviour). Attractive models led to more favorable attitudes toward the advertisement and stronger purchase intentions. expertise or attractiveness. Joseph (1982) and Kahle and Homer (1985) demonstrated consistent results. Kamins (1990) set up a full test of the match-up proposition. the use of physical attractive celebrities increased subject recall. The Match-up model states that attractive endorsers are more effective when promoting products used to enhance one’s attractiveness (Kamins 1990) and that the impact will not be significant in the case of an attractiveness unrelated product. they did not demonstrate that an attractive celebrity is less effective when endorsing a product not used to enhance one’s attractiveness. However. “similarity” (resemblance between the source and the audience).

physical. (2001) investigated practitioner’s perspective and found that while selecting celebrity endorsers. Erdogan et al. McCracken 1989). Meanings move from culturally constituted world to consumer goods through advertising and fashion systems and than it is transferred to 19 . In the model. Consistent to meaning transfer model (McCracken 1989). Agencies considered congruence. credibility. Till and Busler proposed that though attractiveness is important. Implicitly. 2001). Till and Busler (1998. McCracken has described the Celebrity Endorsement process as a special instance of a more general meaning transfer (McCracken 1986. they supported the product-match up proposition. Based on their findings. and obtainability issues to be more important while deciding upon a celebrity.2. expertise is more appropriate for matching products with a celebrity endorser. managers view the celebrity as a multidimensional personality with a bundle of meanings. They also rated trustworthiness and expertise more important in the case of technical/attractiveness-unrelated product (Erdogan et al. cultural meanings move through a conventional path to individual consumers. the study demonstrated that there should be a proper fit between celebrity characteristics and product types. On the other hand.4 MEANING TRANSFER MODEL McCracken (1989) addressed the endorsement process from a cultural perspective. Predicted interaction was found for “spokesperson credibility” and “attitude toward the advertisement” but not for “brand attitude” or “purchase intention”. profession.celebrity with a product and found interaction effect between attractiveness and product type. and social world. familiarity and likeability were more important for a non-technical or attractiveness-related product. 2000) examined attractiveness versus expertise as a relevant match-up factor and found a general attractiveness effect on brand attitude and purchase intent but no match-up effect was found based on attractiveness. managers considered a number of factors. 3. popularity. He argued that the endorsement process depends upon the symbolic properties of the celebrity endorser and the celebrity served the endorsement process by taking on the meanings that then carry from advertisement to advertisement. Meanings begin as something inherent and resident in the culturally constituted. they indicated that celebrity’s physical attractiveness. Moreover.

meanings are transferred to the product through advertisement and the endorsement process. the meanings generated from distant movie performances. reside in celebrities themselves. 20 . A celebrity is a persuasive communicator not only because of being attractive or credible but also because he/she has made up certain meanings the consumer finds compelling and useful. The effectiveness of the endorser depends upon the meanings he or she brings to the endorsement process. McCracken (1989)’s meaning transfer theory has direct implications for the celebrity endorsement process. a celebrity has a set of fictional roles and when consumers respond to celebrity’s specific characteristic. In the second stage. In the third stage the meanings are transferred from the product to the consumer where the properties of the product become the properties of the consumer (McCracken 1989). they are in fact responding to a very particular set of meanings. As shown in figure in the initial stage. McCracken has described the whole Meaning Transfer Process in three stages. or athletic achievements and performance. McCracken 1989). He argues that for the purpose of communication.individual consumer through the efforts of the consumer. political campaigns. Thus. meaning keeps on circulating in the consumer society (McCracken 1986.

2001) 21 . companies also get provided with the name of an endorser.such as source. Most of the people that are hired by any company to pitch their products or services are popular people that can be movie stars. in a hope that celebrities might boost effectiveness of their marketing attempts in the long-term (Belch & Belch. 2001). the endorser is a celebrity and function is endorsement which means an approval or support that can be seen as a guarantee or recommendation to the consumers.3. 2001). According to Riezebos (2003) it is only advisable to use endorsers for brands if there is a high level of brand-added value.In an endorsement strategy a new sort of product is given a new brand name that is unique for that product (Riezebos. In such case. In order to be able to develop an effective advertising and promotional campaign. 1998). athletics. entertainers. This means that the name of the endorser should be clearly visible next to the name of the branded article.Thus. a company is trying to send various types of information to their target audience. 2003). through the use of celebrity endorsers. a company has to select their endorser who are appropriate to different channels and media (Till & Shimp. when a company decides upon using an endorsement strategy for their marketing communication tool. the brand can be seen as the message the company is trying to send to their audience. and receiver (Belch & Belch.3 CELEBRITY ENDORSEMENT STRATEGY Marketers generally use individuals who have achieved some form of celebrity status for their companies to serve as spokespersons. message. Further. Saunders.Basically.along with the unique brand name. Armstrong. or pop-stars. & Wong. 2001). the main focus lies in exposing their brand (Kotler. Moreover. the source which is intended to send this message in an endorsement strategy becomes the celebrity and the receiver in the communication process becomes the consumer (Belch & Belch. Companies have jointly been using their brands and their own name. and occasionally a politician or some other well-known public figure may be used (Belch & Belch. 2001).


5 UNDERSTANDING CONSUMER BEHAVIOUR 4.1 Consumer Decision Making Process 4.1 Types of Celebrity Endorsements 4.2 CELEBRITY CELEBRITY AND BRAND Celebrity Brand Compatibility 4.2 Impact of Brand on Consumer Decision Making Process 23 .1 B RAND 4.3 CELEBRITY ENDORSEMENT 4.3.

rational and cultural image that a consumer associates with a company or the product. fashion shows and magazines. People feel that by using the brand. extraordinary life style or special skills. Advertisements enforce what exactly the brand stands for and what to expect by its consumption and also what all factors. and are present everywhere. thus generating sense of fulfillment. The subjective intangible feelings of a customer become objective and tangible in the form of celebrity and the level of expectations rises. Coke – thanda matlab coca-cola. they will receive certain traits or characteristics that they otherwise do not have. CELEBRITY AND CONSUMER 4.1 BRAND: Brand is the proprietary visual. tabloids and above all advertisements. They appear in public when fulfilling their professional commitments or they appear in public by attending special celebrity events.2 CELEBRITY: Celebrities are people who enjoy public recognition and are the experts of their respective fields having wider influence in public life and societal domain. Kurkure. in news. Celebrities have universal presence and appeal. features and attributes makes it better and different from its competition. Celebrities appear in public in different ways.4. Advertisements force people to think about what they see or hear. The above examples convey one message that when people watch these advertisements a connection is created which results in people wanting to go for the experience of buying. 4. 24 . emotional. Attributes like attractiveness. Pepsi – Yeh dil mange more. Few examples to clarify its meaning are Amul utterly butterly delicious.Masti bole to kurkure. larger than life image and demigod status can be associated with them. This gets enhanced when a celebrity endorses the brand.0 BRAND.

original role.  Invented: The celebrity plays a new. thereto. however.3. "any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (marcoms). because when celebrities are depicted in marcoms. they help in increasing the sales revenues.4. a more favorable evaluation of the product and advertisement. Thus. and a significantly more positive purchase intention. 4.3 CELEBRITY ENDORSEMENT: McCracken's (1989) definition of a celebrity endorser is. irrespective of the required promotional role. there are deeper attributes that are involved in celebrity endorsement. companies use celebrities to endorse their products. A slight change in the type of branding used can result in either a great success or a dismal failure.  Imported: The celebrity performs a role known to the audience. Celebrity endorsements are powerful.  Harnessed: The celebrity's image is integrated with the ad's storyline.  Observer: The celebrity assumes the role of an observer commenting on the brand. 4. Celebrity branding falls into five general categories:  Testimonial: The celebrity acts as a spokesperson for the brand. 25 . in the promotion of products high in psychological and/or social risk. they bring their own culturally related meanings. is useful. use of celebrity endorser would lead to greater believability.4 CELEBRITY AND BRAND: According to Advertising research companies that actors bring reliability and trust in the brand and above all. Celebrities might endorse as a brand ambassador or a brand face." Friedman and Friedman (1979) found empirical evidence that.1 Types of Celebrity Endorsements Celebrity branding has many aspects.

Values and image of the brand is defined. A good brand campaign idea and an intrinsic link between the celebrity and the message are musts for a successful campaign. association. On the other hand. Belief in efficiency and new appearance that will result in at least trial usage. Celebrity credibility. aspiration and connectivity to brand. Certain parameters that postulate compatibility between the celebrity and brand image are:             Celebrity’s fit with the brand image. 4. Costs of acquiring the celebrity. they are rendered useless when it comes to the actual efficiency of the core product.4. knowledge about the brand and easy recall. Credibility. Celebrity availability. trust.      Instant Awareness. creating positive attitudes to brands. Celebrities are no doubt good at generating attention. Celebrity—Product match.This power is offered by the following elements. highlighted and refreshed by the celebrity. Celebrity prior endorsements. Celebrity controversy risk. but the celebrity needs to match the product. which also creates a 'Top of the Mind Position'. Celebrity physical attractiveness. Celebrity—Target audience match Celebrity associated values. recall and positive attitudes towards advertising provided that they are supporting a good idea and there is an explicit fit between them and the brand. Celebrity popularity.1 Celebrity and Brand Compatibility: A celebrity is used to impart credibility and aspirational values to a brand. The celebrity adds new edge and dimension to the brand. purchase intentions and actual sales. 26 . Whether celebrity is a brand user.

 How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. friends. 4. and behavioral variables in an attempt to understand people's wants and also assess influences on the consumer from various groups such as family. anthropology and economics.g. socio-psychology. Culture. and society in general. culture. when do they buy and why do they buy. psychographics. It studies the characteristics of individual consumers such as demographics. The study and knowledge of consumer behavior is essential to the firms as it helps them to improve their marketing strategies and product offerings. signs. media). what do they buy.4.. informal group and Referent Group.g. It tries to understand the buyer decision-making process. sociology.5.  The psychology of how the consumer is influenced by his or her environment (e.1 Consumer Decision Making Process: 27 . and  How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. products). Religion. brands. and select between different alternatives (e. reference groups. reason.5 UNDERSTANDING CONSUMER BEHAVIOUR Consumer Behavior is the study of how people buy. Following are some of the important issues that have significant influence on consumer's psyche that affects their buying behaviour:  The psychology of how consumers think.  Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome.  Their Age. Income. feel. family. It blends elements from psychology.. both individually and in groups.

The next stage includes the ability to purchase. Based upon information search various alternatives are generated i. people whose opinion will count and other relevant details that will help in optimizing the consumer satisfaction. that a consumer would like to have or purchase in order to attain satisfaction. Something. 28 . attitudinal or Physiological. where will it be comfortably available and in comparison to other brands or products how better or economical it is. level of involvement. which brand or product is affordable to the consumer.The above process is explained here: The first step to consumer buying process starts with problem recognition or with an unsatisfied need of a consumer. This need can be Psychological.e.

The next stage is the Evaluation stage which takes into consideration cost benefit analysis and based upon maximum value or utility per rupee spend.  Delight where the consumer gets more than expected satisfaction and utility and this will assure the repeat purchase and creation of brand loyalty. 29 . Recognition of brand and its significance along with the traditional factors plays a very significant role in consumer decision-making process. Next stage in the consumer decision making process is the purchase when the consumer finally goes to the market and looks for the brand or the product. consumer decides or shortlist the product or brand. Therefore. He tries to find out whether his purchase decision was right or not.  Dissonance where the consumer is not satisfied as he got less utility or less than expected result from the consumption or product performance. a known brand or an optimally exposed brand will find more recognition and buyers in the market in comparison to completely unknown or unexposed brand. Last stage is the post purchase Evaluation in which the customer justifies his consumption or purchase decision. This is the decision and confirmation stage where the consumers prepares him for the purchase of a particular brand and give preference to one and only one over and above the others.5. 4.2 Impact of Brand on Consumer Decision Making Process Research studies have proven that known products and names are sold more than unknown ones. The last stage may result into three situations:  Satisfaction where customer is satisfied as he got expected results but this does not necessitates the repeat purchase by the consumer. physically verifies it and purchases it. Companies make a lot of effort to tackle this situation successfully and they want the customer to be satisfied with their product.

than he keeps his favorite as one of the alternatives and he evaluate his selected brand against all available options and on finding it suitable or best among all options. based upon a qualitative and quantitative evaluation he ultimately purchases the selected or favorite brand. A consumer start collecting data or information about his favorite brand. 30 .The above given model explains the important role that a brand plays in three different stages of consumer's purchase decision making.


5. Shah Rukh Khan endorsed Santro and this ensured that brand awareness was created in a market.  Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. but also in product launching and PR events. The accruement of celebrity endorsements can be justified by the following advantages that are bestowed on the overall brand:  Establishment of Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience. which create high PR coverage. advertisers queue up to have it splashed all over. and Noreico. Across categories. Higher Degree of Recall: People tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value. who have not only appeared in advertisements for Pepsi. 007 Pierce Brosnan promotes Omega. At launch. 32 . whether in products or services. As soon as a new face ascends the popularity charts. more and more brands are banking on the mass appeal of celebrities. We had the Shah Rukh-Santro campaign.  PR Coverage: is another reason for using celebrities. and Nike. the Spice Girls. Rolex. which did not even know the brand.0 THE ADVANTAGES AND DISADVANTAGES OF USING CELEBRITY AS ENDORSERS The Argument for Celebrity Endorsement Brands have been leveraging celebrity appeal for a long time. A good example of integrated celebrity campaigns is one of the World’s leading pop groups.this is especially true in case of new products. Managers perceive celebrities as topical. Actress Catherine ZetaJones is used by T-Mobile and Elizabeth Arden. Golf champion Tiger Woods has endorsed American Express.   Time Saving: Celebrity is able to build brand credibility in a short period of time. BMW. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter of a few months.

particularly when the product has contributed to their celebrity. Associative Benefit: A celebrity’s preference for a brand gives out a persuasive message . the consumer will also benefit.' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references to the `safety' of the product indirectly. Last year.because the celebrity is benefiting from the brand. geography etc. so the company appointed Amitabh Bachchan for the job. While Aamir Khan led the Coke fight back as an ingenious and fastidious Bengali who finally gets convinced of the product's `purity.  Mitigating a Tarnished Image: Cadbury India wanted to restore the consumer's confidence in its chocolate brands following the high-pitch worms controversy. when the even more controversial pesticide issue shook up Coca-Cola and PepsiCo and resulted in much negative press. class. both soft drink majors put out high-profile damage control ad films featuring their best and most expensive celebrities. 33 . the more likely consumers are to buy the endorsed product. gender.  Rejuvenating a Stagnant Brand: With the objective of infusing fresh life into the stagnant chyawanprash category and staving off competition from various brands. The more familiar an endorser.  Celebrity endorsement can sometimes compensate for lack of innovative ideas.  Psychographic Connect: Celebrities are loved and adored by their fans and advertisers use stars to capitalize on these feelings to sway the fans towards their brand.  Demographic Connect: Different stars appeal differently to various demographic segments (age. Dabur India roped in Bachchan for an estimated Rs 8 crore.).  Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses.  Providing Testimony: Another benefit of using celebrity endorsers is that s/he can provide testimony for a product or service.

bang in the middle of the event.  The Vampire Effect: This terminology pertains to the issue of a celebrity overshadowing the brand. celebrity endorsers may at times become liabilities to the brands they endorse.Mike Tyson. This may be termed as commoditisation of celebrities. who are willing to endorse anything for big bucks.found itself on an uneasy wicket  Multi Brand Endorsements: by the same celebrity would lead to overexposure: The novelty of a celebrity endorsement gets diluted if he does too many advertisements. With the Australian cricketer testing positive for consuming banned substances and his subsequent withdrawal from the event. If there is no congruency between the celebrity and the brand. when Tendulkar went through a prolonged lean patch recently. Both of these campaigns were aborted due to celebrities getting in the way of effective communication. which caught Pepsi off guard. the inevitable question that cropped up in corporate circles .The Argument Against Celebrity Endorsement  The Reputation of the Celebrity May Derogate After he/she has Endorsed the Product: Pepsi Cola's suffered with three tarnished celebrities . Another example could be the Castrol commercial featuring Rahul Dravid.  Inconsistency in The Professional Popularity of The Celebrity: The celebrity may lose his or her popularity due to some lapse in professional performances. Madonna. then the audience will remember the celebrity and not the brand. For example. Since the behaviour of the celebrities reflects on the he actually worth it? The 2003 Cricket World Cup also threw up the Shane Warne incident. when she was caught shopping in Tesco. and Michael Jackson.  Celebrities Endorsing one Brand and Using another (competitor): Sainsbury’s encountered a problem with Catherina Zeta Jones. But now Tendulkar endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has scaled down. Example. Examples are the campaigns of Dawn French—Cable Association and Leonard Rossiter—Cinzano.the presenting sponsor of the World Cup 2003 . MRF was among the early sponsors of Tendulkar with its logo emblazoned on his bat. PepsiCo . A similar case 34 . whom the company used for its recipe advertisements.

 Mismatch Between the Celebrity and the Image of the Brand: Celebrities manifest a certain persona for the audience. intense and modern women associated with the lower middle class. The personality of Pierce Brosnan is best characterized as the perfect gentlemen. Each celebrity portrays a broad range of meanings. is perceived as a tough. 35 . involving a specific personality and lifestyle. whereas Jennifer Aniston has the image of the ‘good girl from next door’. for example.happened with Britney Spears who endorsed one cola brand and was repeatedly caught drinking another brand of cola on tape. It is of paramount importance that there is an egalitarian congruency between the persona of the celebrity and the image of the brand. Madonna.


A standard example here is Coke.AN INDIAN PERSPECTIVE The latter part of the '80s saw the burgeoning of a new trend in India– brands started being endorsed by celebrities. which. 37 . long-term. We have numerous examples exemplifying this claim. In the Indian context. This brand has. Director. it would not be presumptuous to state that celebrity endorsements can aggrandize the overall brand. used Amitabh Bachchan to revitalize the brand in India. In fact. till recently. Star power in India can be gauged by the successful endorsement done by Sharukh for three honchos.Pepsi. and even the normally conservative trade got interested. In India there is an exponential potential for a celebrity endorsement to be perceived as genuinely relevant. Advertisements. Parker's sales have increased by about 30 per cent. The objective was to garner faster brand recognition.6. The Parker pen brand. According to Pooja Jain. which has always idolized the stars of the celluloid world. Luxor Writing Instruments Ltd (LWIL). Jalal Agha (Pan Parag). then the hottest advertising icon for their launch advertising for Tamarind. Clinic All Clear and Santro. when S Kumars used Hrithik Roshan. Probably. Ad recall was as high as 70 per cent. which by itself commands equity. perhaps as a result of this. been among the top three in the country for much of its lifetime. India was a first for them. Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) became common. India is one country. the first ad to cash in on star power in a strategic. we had the Shah Rukh-Santro campaign with the objective of mitigating the impediment that an unknown Korean brand faced in the Indian market. post Bachchan. Similarly.50 per cent less on media due to the sheer impact of using Hrithik. Therefore it makes tremendous sense for a brand to procure a celebrity for its endorsement. featuring stars like Tabassum (Prestige pressure cookers). association and emotional unity with the target group. they reckoned they spent 40 . Hindi film and TV stars as well as sportspersons were roped in to endorse prominent brands. didn't use stars at all internationally. The result was a ubiquitously appealing Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra advertising is only due to the sensuous Aishwarya. In recent times. mission statement kind of way was Lux soap.0 CELEBRITY ENDORSEMENT.

This would especially prove true if the endorser and the category are a natural lifestyle fit like sportspersons and footwear.  George Foreman for Meineke. He has also sold more than 10 million Lean Mean Fat-Reducing Grilling Machines since signing with the manufacturing company. Over the years. In 2000 he renegotiated a five-year contract estimated at $125 million.  Other successful endorsements like Nike—Michael Jordan. and so on. tennis player and Wimbledon champion has signed a five-year $40 million contract with sportswear manufacturer Reebok International Inc.  Venus Williams. and Busta Rhymes. Dunlop—John McEnroe.  Nike golf balls. KapilSachin and Boost or film stars and beauty products. Some successful ongoing global endorsements are as follows:  Celebrity endorsements have been the bedrock of Pepsi's advertising. SOME GLOBAL EXAMPLES: Globally. Blige. Nike's golf line grossed more than $250 million in annual sales. 38 . including Shaquille O'Neal. firms have been juxtaposing their brands and themselves with celebrity endorsers.thereby motivating consumers to go in for the product. have seen a $50 million revenue growth. since the company signed Tiger Woods in 1996. Pepsi has used and continues to use a number of celebrities for general market and targeted advertising. who did a targeted campaign for their Mountain Dew product. Mary J. Wyclef Jean. Adidas—Prince Naseem Hamed.  James Earl Jones for Verizon and CNN.


40 .AGE PROFILE Age group 18-25yrs 25-35 yrs 35-50 yrs Above 50 yrs Percentage of people 66% 28% 6% 0 This research project is based on the responses of people belonging to the age group of 18 to 25 years of age. so that there is no biasness between the responses. GENDER PROFILE PERCENTAGE 52% 48% MALE FEMALE The number of respondents taken to fill this questionnaire has been equally divided into males and females. That is how the consumer belonging to this age group reacts to the celebrity endorsement strategies taken by the companies. Due to this reason perceptions of both the gender have been taken into consideration. around 28% belongs to the age group of 25 to 35 years of age and only 6% belongs to the category of 35 to 50 years of age group. Therefore this research project is based on the perception of youth.

it can be concluded that majority of consumers (44%) give utmost importance to quality while going for a particular product. offers etc. discounts. followed by price. As a result it influences their buying decision to some extent. WHAT FACTORS AFFECT A CONSUMER BUYING DECISION Motivating factors to buy a product 120 100 80 60 40 20 0 Most important factor 2nd important f actor 3rd important f actor 4th important factor least important factor % of respondents celebrity endorsement Latest trends Discounts and off ers Quality Price degree of im portance According to the survey. magazines etc.e. Thus latest trends and celebrity 41 .ARE ADVERTISEMENTS INFORMATIVE? 10% yes no 90% According to the survey done it can be inferred that most of the consumers feel advertisements are very informative. newspaper. While celebrity endorsement is the least important feature that most of the consumers (44%) consider while making their purchase decision. media. Majority of people thinks that advertisement helps them to get the brief information about the product even before its launch. whether they are in any form i.

88% of respondents feel that Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. people perceive celebrities as topical. DOES CELEBRITIES CAST IMPACT? Do celebrities cast impact through advertisement 12% yes no 88% From the above chart it can be concluded that celebrities cast impact through advertisement. And Alternate Hypothesis is rejected. how? 20% Attracts attention 50% Build desire to have a product initiate an action to buy a product 30% 42 . that is “Celebrity Endorsement does cast an impact on consumer buying behaviour through advertisements”. Besides this.endorsement does not play such an important role in influencing a consumer’s buying decision as compared to other factors. Null Hypothesis is accepted. which create high PR coverage. IF YES. THEN HOW? if yes. Thus the above graph proves that in the Hypothesis.

Whereas. DOES CELEBRITIES USE THE PRODUCT THEY ENDORSE? 43 . According to them they (celebrities) not always help in increasing the share of company i. the reputation of the celebrity may derogate after he/she has endorsed the product.Attracting attention. People tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value. Majority of the respondents are of the view that celebrities attract the attention of their target group. 52% of people support this point. Besides this.e. CELEBRITIES HELP IN INCREASING THE MARKET SHARE? Do celebrities help in increasing the market share of the company 14% 52% 34% Always sometimes Never On the basis of the survey it can be inferred that celebrities helps in increasing the market share of the company. Whereas 26% people think that celebrity of their choice build desire in them to make a purchase. it also helps in rejuvenating a stagnant brand. building desire to have a product and initiating an action to buy a product are the various basis through which celebrities cast impact through advertisement. 34% of people thinks the other way round. Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses.

37% no yes 26. 82% of the respondents believe that celebrities do not use the product that they endorse. IS IT ETHICAL TO ENDORSE A PRODUCT NOT USED BY CELEBRITIES? if no. 44 . The majority of the people believe that is 63% of them say it is not ethical for celebrities to do such a thing. is it ethical? 15.Do celebrities use the product they endorse 6% 12% yes no cant say 82% According to the responses in the questionnaire. And 6% are not sure whether the celebrities use the products they endorse or they do not. And only 37% says it is ethical. Thus we can conclude that in today’s world consumers are educated and do not get carried away by the celebrities they see endorsing the product. 63% This chart shows whether the consumers believe that when celebrities do not use the product they endorse then is it ethical for them to endorse such a product. 12% of them believe that the celebrities does use the products so endorsed by them in their daily lives.

Thus it can be inferred that most of the consumers are infect against the wrong perception that celebrities try to make in the mind of the consumers. Majority (i.e 84%) somewhat agrees to the fact that the celebrities does help in increasing the total revenue of the company from their endorsements. does according to the consumers it actually help the companies to increase their total revenue. A small percentage (i. only 16%) somewhat disagree to this statement. This small number of people does not agree 45 . DOES INVESTMENT MADE IN CELEBRITIES ACTUALLY BENEFIT THE COMPANY? companies investing huge money for using celebrities help them in increasing their total revenue? 16% somewhat agree somewhat disagree 84% The above chart explains that when companies invest huge amount of money for using celebrities.e. They say that it is not morally correct on the part of the celebrities to do such a thing.

We can say that people do not perceive politicians as topical which creates high PR coverage.and thus say that investing such huge amounts in celebrities are not necessary if their products are good enough. WHICH OF THE CELEBRITIES ARE MOST AFFECTIVE? what kind of celebrity are most affective? 100% 80% percentage 60% 40% 20% 0% Sports person Filmstar TV star Politician Not affective affective very affective celebrity The above chart explains what kinds of celebrities are most affective in endorsing the products. T.V stars are not very affective but they do have some impact. may be because people see them on television daily and thus becomes a part of their lives. 46 . The least affective celebrities are the politicians who hardly have any impact on the consumers. Film stars are the ones who have the most prominent impact on the buying behaviour of the consumers. Next comes the sports persons who easily connect to the people and have power to change the purchasing decisions.

And for males discounts and offers are not 47 . Then while price is the second most important factor for males. discounts and offers are considered by females.GENDER WISE MOTIVATING FACTORS Number of respondents 16 14 12 10 8 6 4 2 0 Price as most Quality as Discounts & important most important offers as most important Latest Trends as most important Celebrity endorsement as most important Male Female Motivating factors to buy a product If we segregate the consumers into male and female and then see what factors motivates them the most then we can say that for both males and females Quality is the utmost important factor to buy a product.

While for both males and females celebrity endorsements have been the least motivating factor. 48 .even considered while purchasing the product.




8.0 SUGGESTIONS  Companies must try and use a celebrity whose personality matches the brand attributes and branding strategy. Only a good match helps to enhance the brand value.  Companies should avoid using a celebrity who is endorsing many brands simultaneously. In such a case the consumers get confused and may fail to associate the celebrity with the brand. Moreover using a multi brand endorser does not influence the rate of brand recall as much.  Companies should try and focus on the product quality, price, and promotional schemes rather than primarily focusing on the Celebrity. As per the research the consumers give more importance to these factors as compared to the celebrity endorsing the product.  Since celebrities are better at attracting attention than leading to purchase behavior, companies must also keep this factor in mind while choosing a celebrity.  Though the intelligent consumer of today understands that the celebrity endorsing a product does not necessarily use it, the percentage of such consumer is small. Also most people feel it is unethical to proclaim such a thing. Hence a company must be careful that a celebrity endorsing product A is not seen publicly using the competing brand. This may lead to negative publicity.  When it comes to celebrities, Film stars and Sports persons have a greater impact on public as compared to Television stars and Politicians. As the image of politicians and T.V stars is frequently variable they may hamper the brand image. Companies must be careful to use politicians and T.V stars for selective brands whose target audience is influenced essentially by such celebrities.  While using celebrities to endorse a product the cost factor should always be kept in mind. The revenue might not be as high as the cost incurred in using a particular celebrity.  While planning the advertising, the company must make sure that the celebrity does not overpower the brand. In all advertising messages and PR activities the brand must be highlighted more than the celebrity. 50

The aim of any promotional activity is enhancement of the brand. The celebrity must act according to the brand and the branding must not change according to the celebrity as they may prove fatal to the product’s individual image in the long run.

While choosing a celebrity, only his present must not be considered. Celebrities in general have a long term effect on brands hence a conscious decision must be made considering their past, present and gazing into their future projects and actions.



Selecting a celebrity involves a lot of financial risk. Demographic connection establishes that different stars appeal differently to various demographic segments i.. the consumer will also benefit. advertisers have to consider the cost effectiveness of their choice. Another invaluable benefit from celebrity endorsements is the public relation opportunities. the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image-building and product marketing.CONCLUSIONS In India today. This is especially true in case of new product.e. The 53 .because the celebrity is benefiting from the brand. as it is essential to bring a synergy between an individual's outfit and his personality. At some point in the decision to use celebrity endorsers. geography etc. Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. while psychographic connection establishes that stars are loved and adored by their fans. Advertisement is a medium through which a brand gets a personality and endorsers are perceived as the personalities of the brand. There is a demographic and psychographic connection between the stars and their fans. age. class. Therefore. Approval of a brand by a star fosters a sense of trust for that brand among the target audience. the same way it is essential to bring a synergistic effect between the brand and the endorser Brands rely on celebrities for the following reasons:  Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience  Attracts Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. gender.  Associative Benefit: A celebrity's preference for a brand gives out a persuasive message .

Similarly. The fact of associating a product with a well-known individual acts to increase the positive view of the consumer. For example. so long as the links are indisputable and match links in the consumer's mind. therefore.endorser who appears to have the highest potential. and therefore. and these individuals are sometimes very expensive to use as endorsers. With the help of the literature we have managed to close the knowledge gap and created a literature review about Celebrity Endorsement. HLL could not comment much on its sales and that though Dabur healthcare products' sales had improved. the most expensive to hire as an endorser. consumers do respond to an endorsement of a product by a celebrity. The potential benefits from endorsement for the brand owner are clear. In broad terms one can conclude that endorsement does work.. The impact of an endorser cannot be sustainable in all product categories and in all the stages of brand life cycles. On Amitabh Bachchan endorsing RIN. A celebrity does help in increasing brand sales. Here any celebrity association with the brand without corresponding performance of the product will not be sustainable. If it is a 'functional brand'. 54 . Celebrity endorsement helped Head & Shoulders promote their brand and within a year they became market leaders with over 45% market share. where it is difficult to distinguish between the products. In this situation. but only if he/she is selected carefully and used effectively. tend to be the most popular. cigarettes etc. It really depends upon the type of product. The demand for entertainment and sports celebrities has increased. the advertiser must decide whether the celebrity is worth the investment. While in case of 'image brands'. very important. like the categories of soaps. soft drinks. The personality of the brand and the celebrity have to complement each other and the selection of the celebrity is. celebrity endorsements help to distinguish between the brands at an emotional level. then the product itself is the hero. It would be difficult to judge the direct effect of celebrity endorsement on the sales or profits of the company. there are also cases wherein there was a dramatic change in the sales figure after the endorsements.


" Journal of Consumer 9th Ed. T. J. 13) http://www. Keith Schwer (2000). (1999) Marketing for Hospitality and Tourism. Rennae and R. P..ssrn. (1997).). 5) Kotler. Bowen. "Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process. 12) McCracken. London: Prentice Hall International. & Wong. Prentice Hall: Harlow 3) Kotler.merinews. Koostra. & and control. Ogilvy and Mather India 9) Aaker. J. NY: The Free Press.htm 19) www. Marketing management: 15) http://www. Brand Management." Journal of Advertising Research. 4) Kotler. 11) Friedman. Building Strong Brands. "Endorser Effectiveness by Product Type.. R. Prentice Hall 7) A theoretical and practical approach. Marketing essentials.Endorsers in Advertising: The case of Negative Celebrity Information: Journal 310-321. P. B. New York." Journal of Consumer Research.E. "The Association Endorsement and Consumers' Intention to Purchase.thehindubusinessline.htm 14) http://www. B.0 BIBLIOGRAPHY AND REFERENCES 1) Belch. Country Manager . M. (1998). G. Boston: Irwin/MaGraw-Hill. Kist. Armstrong. and Linda Friedman (1979). (2001).27 8) http://www. Hershey H. J. V.about.9. & Schimp.pdf 18) advertising.. 10) Daneshvary. (2001).2nd Ed. and Makens.. implementation. London: Prentice-Hall 6) Riezebos.. (1984).Principles ofMarketing. (2003). David A. 63-71. G. Advertising and Promotion: An integrated Marketing Communications Perspective (5thed. Grant (1989).rediff. 17) 16) http://papers.A. P. planning. 19 (5)..A. P. 203-213. Upper Saddle River: Prentice Hall Inc.brandchannel.jsp?articleID=183 56 .. 2) Kotler. 17 (3). 16 (3).. (1996)..

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QUESTIONNAIRE Name Income Gender Age Occupation : : : : : 18-25yrs 25-35yrs 35-50yrs above 50yrs 1) Do you think Advertisement informative? Yes No 2) What is a motivating factor to buy a product? Rank the below according to your preference (keeping 1 as the highest and 5 as the lowest). Price Quality Discounts and offers Latest Trends Celebrities endorsing the product Any other______________________________ 3) According to you do Celebrities cast impact through Advertisements? Yes No 59 .

4) If Yes? Attracts Attention Build Desire to have the product Initiate an action to buy the product 5) Does Celebrities helps in increasing the market share of the company? Yes No 6) What do you think. do celebrities themselves uses the product they endorses? Yes No 7) If No. do you think is it ethical to do such a thing? Yes No 8) Do you think companies investing huge money for using celebrities help them in increasing their total revenue? Yes No 9) What kinds of celebrity are most affective? Very Affective Affective Not Affective 60 .

0 CASE STUDY 61 .Sports Person Film Star TV star Politician 10) According to you what are other risks involved in using celebrity as endorsements? CHAPTER-10.

" . Percept sources commented. Percept. The campaign featuring Cronje had been running on the print. commenting on the withdrawal of the J Hampstead advertisement campaign.Hampstead brand of clothing. Siyaram Silk Mills. "This mess is horrible. in April 2000. Unfortunately we can't use them anymore. The news shocked both cricket fans and the media alike . The issue raised a heated debate in corporate and media circles regarding the perils of using celebrity endorsement. who was also president of the Delhi District Cricket Association. was also affected badly by this controversy. Siyaram and its advertising agency. a London-based Indian businessman. Hansie Cronje was one of the key celebrity endorsers for Siyaram's J. The conversation in the tapes seemed to implicate both men in illegal betting on a match played in February 2000 in India. electronic and outdoor media from March 2000. General Manager (Marketing). Cronje conceded that he had accepted $ 15. officials recorded phone conversations between Hansie Cronje (Cronje).000 to fix the match. (Siyaram). the New Delhi police unearthed one of the biggest scandals ever to hit the world of cricket. said the Delhi police would take the 62 . After initial denials." Union Minister of State for Information and Broadcasting Arun Jaitley. The Cronje Scandal In April 2000. Siyaram Silk Mills Ltd. one of India's leading textile companies. While investigating a local corruption case.Cronje's face was smeared with black paint on posters across the country.10. and Sanjeev Chawla. watched in dismay as their celebrity endorser turned into an internationally hated sportsman overnight.N Gangadhar. the captain of the South African cricket team.0 CASE STUDY THE SIYARAM CELEBRITY ENDORSEMENT EXPERIENCE "We have enough of film stock for a whole year.

woollen synthetics and synthetic blends – the main product being polyester blended worsted2 fabrics. 63 .scandal to its ''logical end''. fabrics and garments). producing over 27. Siyaram's businesses comprised fabrics and readymade garments. its subsidiary. ''The tapes have proved beyond doubt the involvement of the South African skipper.Hampstead (wool fabric). (BIL) was into the manufacturing of paperboards.Hampstead campaign was completely withdrawn. Siyaram had a 4% market share in the Rs 50 billion suitings and shirtings market. which had a turnover of $ 209 billion in 2000-01. The group. Siyaram was incorporated in June 1978 as a private limited company and was converted into a public limited company in 1980. Balkrishna Industries Ltd. trousers and jeans) and J. Background Note Siyaram was a part of the Siyaram Poddar Group of companies. The J. was into the financial services business. (GRL) was into the auto and bicycle tyres and tubes business. While Govind Rubber Ltd. Siyaram Finance. was into the textile (yarns. The company had three manufacturing plants situated at Thane and Raigad in Maharashtra and Silvassa in the union territory of Dadra & Nagar Haveli. paper/paperboards and tyre (rubber tyres and tubes) businesses. Siyaram had a strong presence in the lower and medium segment of the domestic suitings market. financial investors and the public held 26%. Siyaram manufactured and marketed textiles. The 'match-fixing' scandal seemed all set to force Siyaram – and other Indian companies – to rewrite the rules of using celebrity endorsement as an integral part of their media plans. Siyaram pulled down all the billboards featuring the entire South African team across the country. 22% and 8% respectively. Siyaram came out with a Rs 153 million rights issue to part-finance a Rs 165 million expansion-cum-modernization project. foreign collaborators. founded in 1954. While the family held 23% of the Rs 51 million equity. tyres/tubes and synthetics. In July 1993.5 million meters of fabrics annually. Its popular brands included Oxemberg (shirts. almost 20 days before it completed its scheduled run on hoardings and television. cotton.'' What happens when models turn 'villains'? Why did the advertisers choose Cronje & Co? How much were they paid? These and more questions surfaced.

Analysts commented that the campaign was largely responsible for Siyaram's high brand recall and positive consumer feedback. aimed at increasing awareness among its target audience about the company's range of products. Siyaram was one of the few non-FMCG companies in India that was known for its lavish advertisements. the Far East and the Gulf countries. Siyaram decided to begin manufacturing the brand at its plants with technical assistance from J. As part of its brand-building initiatives.500-1.Hampstead was a very popular suiting brand in Europe. 1997 and Siyaram's Celebrity Soccer 1998. It was priced in the range of Rs 1.) The company also exported its products to Europe. cashmere and woolsilk. and also for the huge budgets Siyaram set aside for them. South America.600 per meter. The company believed that good commercials helped it to effectively position its suitings on a global platform. Digjam. Siyaram also organized major sporting events like the triangular cricket series – Siyaram's Cup. The J.Hampstead for marketing its suitings in India. Raymond. the campaign established the brand's association with 'true love for the motherland. The company also held Siyaram fabric shows.000 retailers across the country. The 'Coming Home To Siyaram' advertisements were much talked about for being of much longer duration than the usual advertisements. Siyaram's sales increased from Rs 20 million in 1978 to Rs 3252.6 million in 2000-01. Siyaram had increased its advertising and promotion budget to Rs 300 million from the 2000-01 level of Rs 200 million. Over the years. South Africa.Hampstead. Siyaram tied up with J. 2002. Gwalior and Reid & Taylor etc. The 'Coming Home To Siyaram' campaign was reported to be one of Indian advertising's costliest campaigns. besides its distributor network of about 400 wholesale dealers and 50. For 2001-02. Mayur. (The number of exclusive showrooms was to be increased to 75 by August. Percept had conceptualized the 'Coming Home to Siyaram' campaign in the early 1990s.Hampstead Story J.' by showing successful men maintaining lasting. Siyaram officials said the company's focus on marketing was responsible to a great extent for its growth over the years.The other players included Vimal. In 1995. 64 . The company imported the fabric from Italy. Siyaram retailed its products through 25 exclusive showrooms. strong ties with their families. renowned for its premium 100% wool suitings woven from rich natural fibers like merino wool. In September 1997.

" Shailendra Singh. The first phase of this promotion was in the form of commercials featuring Indian tennis superstars Leander Paes and Mahesh Bhupati." The advertisements featured the entire South African team wearing the J 65 . we thought it was a very good opportunity and so decided to shoot with them for the ads.' were aimed at positioning the brand in the premium segment. Siyaram faced problems with the tennis duo when they decided to break their partnership. the company continued running the advertisements. Joint Managing Director. Siyaram signed the South African cricket team for promoting the brand. Explaining the reason for the decision. these models can be easily identified by both the masses as well the classes.Hampstead. Soon after. "Our brief is to project J Hampstead as a global fashion brand." Siyaram earmarked around Rs 50 million for the marketing. In India where cricket is almost a religion. Consciously. When they were coming to Bombay (for the match). The Indian fabric can be hand washed. satellite channels. said. 'The finest fabric in the world. Siyaram held a tennis carnival to promote J.' In February 2000. print. And this will enable the brand to be globally focused. "All along. Percept. sales and promotion of J Hampstead. It is a high fashion brand that is successful and sincere. Company officials justified this. So we had signed up the entire team and not just one individual. The multi-media promotion was spread over television. we thought that Hansie Cronje has a 82% success rate and nine years' experience as a captain. In September 1999. Gangadhar said." Siyaram had decided to use the South African team on the recommendation of Percept. "We have taken this opportunity to associate ourselves with the number one ranked cricket team as they will be popular in the coming series of cricket matches. Gangadhar said. The imported product had to be dry-cleaned and steam-ironed. "The imported J Hampstead faced two problems: that of maintenance and price. reportedly due to personal problems. Gangadhar said. These commercials with the positioning line. outdoor and point of purchase advertising. the South African team had a clean image. claiming that the 'sport was bigger than the players. The idea of such a campaign is also to send the message that the product is of international quality. However. where several Hindi film stars were invited to play tennis with the brand ambassadors.The product was slightly different from the imported version and was priced in the range of Rs 275-1000 per meter.

the Spur Restaurant Chain in Johannesburg ended a multi-million grand-advertising contract with Cronje. Gangadhar denied that the Hampstead brand image had been affected. 2000. but dropped them as the brand ambassadors in October." 66 .Hampstead premium suitings. It was reported that the Board of Control for Cricket in India (BCCI) and the Mumbai/Dubai underworld were also involved in the scandal. the campaign was not centered on one single player but the entire team. In South Africa. Within a month of the campaign being released in the national media. It is the entire 14-member South African team that we have signed up. The Aftermath Cronje had to resign from the South African team and was barred from playing cricket ever again. "I have had calls from well-wishers who say that no one could have anticipated this. There were even rumors of South Africa and India suspending diplomatic ties. We have not focussed just on Cronje. we never let the personality become the brand itself. He said. Singh commented. We do things right and in the right spirit. And if something goes wrong all we can do is make amends for it." Siyaram's strategy of opting for multiple brand endorsements seemed to have diluted the impact of the scandal on the brand. Though company sources denied that they had given up the celebrity endorsement route for J. Asserting that the J. The brand is bigger than any individual. "Let's not kill the sport for one moronic guy.Hampstead association with sports (and cricket) would continue. Siyaram continued to run the advertisements in newspapers for a few days after the scandal broke. the company decided to withdraw the campaign completely soon after." A Percept official said. the perils of celebrity endorsement began to be seriously examined by Indian companies and advertising agencies. The Indian companies who sponsored cricket matches and utilized cricket players as endorsers were however. Hence it is not so bad after all." He added. the Cronje controversy surfaced.Hampstead. The company began working on a new series of commercials featuring the Leander/Mahesh duo. "Thankfully. However. reported to be unfazed by the developments. with many more Indian and international cricket players being named as parties to illegal match fixing. So. We are also recovering from the incident. The controversy heated up in the next few weeks. "We have used multiple personalities for the ad.

Hampstead. J. Instead.Hampstead. The fact that celebrities remain in constant media focus helps create high recall rates for the commercials that feature them. Now with Mahesh Bhupati and Leander Paes breaking ties.Hampstead's contribution to the turnover was expected to rise from Rs 400 million in 1999-00 to Rs 750 million. revealed its plans to achieve a turnover of Rs 4 billion for the fiscal 2001-02. and positively influence the consumption of the products they are associated with. with the new baseline 'One World One Fabric. Media analysts were quick to point out that having learnt its lessons from the Leander/Bhupati and Cronje issues. Percept Advertising was still doing the creatives. The purpose was to support the new launches scheduled for Diwali season. 67 . Soon the news of the Indian tennis champs separation started to become big.By the end of the year. the company launched a new campaign for J. the question was will the company withdraw that particular ad too? Percept's joint managing director Shailendra Singh said: ``Even as they have disassociated themselves. However. practiced globally. Mahesh Bhupati ad. international models were featured to reinforce the fabric's global appeal.'' In September 2001. the company continued with the Leander Paes. It is a matter of associating ourselves with the game of tennis. Siyaram meanwhile.' The campaign did not feature any sport or celebrity. Marketers believe celebrity endorsers are more effective than non-celebrity endorsers in generating actual sales from the customers. the Cronje scandal seemed to have died a natural death and cricket sponsorship by Indian corporates continued. the readymade garment wear from Siyaram Silk Mills was considering productspecific campaigns shortly after. The company planed to launch three-four products under the J Hampstead range. we don't see any reason as to why we will withdraw this particular ad. J Hampstead. Using celebrities for promotion has been a common marketing communications strategy. Siyaram was deliberately trying to 'play it safe' this time around by avoiding celebrity endorsements for J. The Celebrity Endorsement Issue: Celebrity endorsements began way back in the 19th century with UK's Queen Victoria endorsing Cadbury's Cocoa.

Some of the main reasons for companies using celebrity endorsers are given in the following table.Their attractive qualities are transferred to the product being promoted. If there is very little fit between the celebrity and the brand personae. the selection of Hansie Cronje for J. Celebrity advertisements stand out amidst the other advertisements They facilitate attention getting Celebrity values define and refresh the brand image Celebrities add new dimensions to the brand image Celebrities give the brand instant credibility The use of celebrities gives the brand enhanced PR coverage The use of celebrities make it easier for the agencies to convince clients about the campaign's success However. He said. A wrong choice can ruin the image of a brand. "Cronje is such a casual chap and he looks so awkward and uncomfortable in a suit. The acceptance of an advertisement message is largely determined by the attractiveness of the celebrity presenting the message." Following table shows the celebrity selection criteria’s which must be followed. filmmaker Prahlad Kakkar said. Celebrity availability Celebrity physical attractiveness Celebrity credibility Celebrity prior endorsements Whether celebrity is a brand user Fit with the advertising idea Celebrity-Target audience match Celebrity values Costs of acquiring the celebrity Celebrity-Product match 68 . Relevance is a very important factor in celebrity endorsements. "J Hampstead is a perfect example of using a celebrity without a script. selecting the right celebrity endorsers is usually a tough task. Interestingly. the message conveyed by the celebrity must match the product message.Hampstead was criticized on these very grounds by an executive from the advertising agency Ogilvy & Mather." The man behind the popular Pepsi ads. Also. the advertisement could prove counter-productive.

Celebrity profession Celebrity popularity Celebrity controversy risk In India. The Lux Soap in its 75 yrs journey as a product always used a Film Celebrity to promote the product with the most catchy lines ‘Lux meri Khubsurti Ka raaj’. The video led to widespread protests against the singer and Pepsi had to pull out the advertisement after airing it just twice. In 1993. Michael Jackson was signed by Pepsi in 1983 in what was the largest individual sponsorship deal in history. A 69 . Sridevi & Kareena Kapoor. This has encouraged the widespread use of celebrities in advertisements over the decades. Michael Jackson was charged with child abuse. It was highly criticized as saying that if a star with SRK’s stature promote whiteness cream then actually we are advocating for racism saying black is bad & white is gold. The Lux Story is famous in the world of bran endorsement. Film stars and sports personalities (especially cricket players) are immensely popular among the masses. That is the first time a male celebrity endorsed a female product in India. Pepsi faced this problem with two of its most popular celebrity endorsers – pop singers Michael Jackson and Madonna. When Shahrukh Khan(SRK) promoted Emami’s Fair & Handsome cream. Though the charges were not proved. they used SRK as the main endorser who has said the famous ‘Lux mera Khubsurti ka raaj’ along with Hema Malini. They used a huge number of celebrities from the beginning to promote their product & in their 75 years celebration advertisement campaign. A popular star can help immensely in improving brand image and recall. the singer released her sexually explicit and reportedly anti-Christianity music video 'Like A Prayer' on Music Television. But the same star can cause major problems for the brand if he or she lands in trouble – either in their careers or in their personal lives. celebrity endorsements are believed to be particularly useful as the average consumer reportedly identifies more strongly with celebrities than in other countries. Pepsi had to pull out of the contract after unprecedented media outrage against the brand's association with the singer. right after Pepsi aired the first Madonna commercial. In 1989. And how SRK could endorse such products as there will be a huge impact among the masses regarding the skin colors.

When Salman Khan got warrant for killing endangered dear ‘Thumbs Up’ has no option but to replace him. Celebrity branding is all right as long as the celebrity conducts himself in a good manner but if something wrong happens it will affect the image of the product also. But what we basically forgot that stars get money to endorse products & we shouldn’t eye washed by the advertisement & there is no point in criticizing a celebrity for endorsing product like Fair & Handsome.' when the celebrity overshadows the brand. Shilpa Shetty was also hardly criticized for promoting alcohol.person must be judged by his/her qualities & not by his/her skin color. Santro-SRK. it can reflect very badly on the brand being endorsed.Aamir Khan. Another peril associated with celebrity endorsement is the 'vampire effect. As being a celebrity she must be a responsible citizen & a responsible citizen should never promote alcohol. So the product and the celebrity remain good as long as both of them remain individually good. it is very difficult to separate the product from the star. Some brands did manage to fly high by the use of a good celebrity. Cadbury. if any one of the company want to change their endorser they have to redesign the product to let out their product from the shadow of the old campaign. Celebrity endorsements could become a 'double-edged sword' for most companies. Dabur brought in Amitabh Bachan in the stagnant chawanprash market. whether the celebrity endorsing a brand actually uses the brand or not is an issue of concern. Also. Aamir Khan’s ad campaign ‘Thanda Matlab Cocacola’ was also a huge hit. He brought back boost in market and helped Dabur to remain the market leader.Amitabh Bachan. if a celebrity endorsing Pepsi is seen drinking Coke. For instance. Like Coca-Cola . Conclusion: 70 . Not only that the company used the superstar to come out from the pesticides controversy. Now. The problem of celebrity branding is also that when a particular product is known to the common people with the effect of the celebrity. Cadbury India used Amitah Bachan not only to recover their image from worm controversy but also to establish itself as the leading company in the Indian chocolate market.

71 . always wants to minimize the negative sides of the celebrity endorsement and maximize the positive impact.So there are certain positive as well as negative points in celebrity branding in India. the company. A producer of a product.