“A STUDY ON THE EFFECT OF CELEBRITY ENDORSEMENT ON THE BRAND IMAGE OF PEPSI IN LPU”

Submitted to Lovely Professional University In partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION

Group No.

87

Submitted By:

Roll No.

Registration No.

Pardeep Yadav------------ RR-1803-A-08--------------- 10810219 Abhishek Kumar---------- RR-1803-A-11--------------- 10804922 Ruchi Sodhi--------------- RR-1808-A-12---------------- 10804521 Haziq Mushtaq----------- RR-1803-A-18---------------- 10800085

Submitted To: Ms. Malika Rani
DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (2010)

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TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report title “A study on the effect of celebrity Endorsement on the brand image of Pepsi in lovely Professional University” carried out by Mr. Pardeep Yadav has been accomplished under my guidance & supervision as a duly registered MBA student of the Lovely Professional University, Phagwara. This project is being submitted by him in the partial fulfillment of the requirements for the award of the Master of Business Administration from Lovely Professional University. His dissertation represents his original work and is worthy of consideration for the award of the degree of Master of Business Administration.

Ms. Malika Rani Date: 03/05/2010

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DECLARATION

I, "Pardeep Yadav, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

Pardeep Yadav (Reg. No:-10810219) Date: - 03/05/2010

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TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report title “a study on the effect of celebrity Endorsement on the brand image of Pepsi in lovely Professional University” carried out by Mr. Abhishek Kumar has been accomplished under my guidance & supervision as a duly registered MBA student of the Lovely Professional University, Phagwara. This project is being submitted by him in the partial fulfillment of the requirements for the award of the Master of Business Administration from Lovely Professional University. His dissertation represents his original work and is worthy of consideration for the award of the degree of Master of Business Administration.

Ms. Malika Rani Date: 03/05/2010

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DECLARATION

I, " Abhishek Kumar, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

Abhishek Kumar (Reg. No:- 10804922) Date: - 03/05/2010

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TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report title “a study on the effect of celebrity Endorsement on the brand image of Pepsi in lovely Professional University” carried out by Ms. Ruchi Sodhi has been accomplished under my guidance & supervision as a duly registered MBA student of the Lovely Professional University, Phagwara. This project is being submitted by him in the partial fulfillment of the requirements for the award of the Master of Business Administration from Lovely Professional University. Her dissertation represents his original work and is worthy of consideration for the award of the degree of Master of Business Administration.

Ms. Malika Rani Date: 03/05/2010

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DECLARATION

I, " Ruchi Sodhi, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

Ruchi Sodhi (Reg. No:- 10804521) Date: - 03/05/2010

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TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report title “a study on the effect of celebrity Endorsement on the brand image of Pepsi in lovely Professional University” carried out by Mr. Haziq Mushtaq has been accomplished under my guidance & supervision as a duly registered MBA student of the Lovely Professional University, Phagwara. This project is being submitted by him in the partial fulfillment of the requirements for the award of the Master of Business Administration from Lovely Professional University. His dissertation represents his original work and is worthy of consideration for the award of the degree of Master of Business Administration.

Ms. Malika Rani Date: 03/05/2010

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DECLARATION

I, "Haziq Mushtaq, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

Haziq Mushtaq (Reg. No:-10800085) Date: - 03/05/2010

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PREFACE

Without practical training, management education is meaningless so long with the theory; practical training is provided to management students to expose them to the actual working environment of any organization. Such project study provides a frame work of knowledge relating to the concepts and practices of the assigned topics in the organization. The project study is an integral part of the course. In this the student is in the position to analyze the integral working of an organization with mature eyes and understand the dynamics in a much better manner. This particular project has been conducted within the premises of Lovely Professional University (Punjab). The basic purpose was to know the relation between celebrity endorsement and brand image and celebrity endorsement and its impact on consumer behavior.

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ACKNOWLEDGEMENT

We sincerely feel that the credit of this project report could not be narrowed to only one individual as the whole work is outcome of integrated efforts of all those concerned with it through whose cooperation and effective guidance we could achieve its completion. We wish to place our profound indebtness and deep sense of obligation to Miss Malika Thakral, lecturer Lovely Professional University for providing us with the opportunity to work on such an interesting topic. We also want to pay our gratitude and sincere thanks to our esteemed Mam for being supportive during the entire tenure of this project report. When emotions are involved words fail to mean. Our heart full of sincere gratitude to our parents, who have supported, encouraged and helped us throughout our lives and academic career.

PARDEEP YADAV ABHISHEK KUMAR RUCHI SODHI HAZIQ MUSHTAQ

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TABLE OF CONTENTS

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Executive Summary.-----------------------------------------------------------------------------[15] History.--------------------------------------------------------------------------------------------[15] Introduction.--------------------------------------------------------------------------------------[16] Classical Conditioning Model.--------------------------------------------------------[17] Branding & Celebrity Endorsement.---------------------------------------------[18] Definition of Celebrities.---------------------------------------------------------------[18] Need, Scope and Objectives of the study.----------------------------------------------------[19-21] Review of literature.-----------------------------------------------------------------------------[22-28] Impact Of Celebrity Endorsements On Overall Brand--------------------------------------[29] The need for celebrity endorsement------------------------------------------------------------[30] The process of celebrity endorsement----------------------------------------------------------[31] Celebrity selection--------------------------------------------------------------------------------[31-33] Benefits of celebrity endorsements-------------------------------------------------------------[33-34] Why Celebrity endorsements fails--------------------------------------------------------------[34-35] The solutions-------------------------------------------------------------------------------[35] Research Methodology.--------------------------------------------------------------------------[37] Analysis and interpretation-----------------------------------------------------------------------[39-58] Conclusion------------------------------------------------------------------------------------------[57-58] References.-----------------------------------------------------------------------------------------[59-60]

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LIST OF CHARTS S.N. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11 12 13 Chart no.1 Chart no.2 Chart no.3 Chart no.4 Chart no.5 Chart no.6 Chart no.7 Chart no.8 Chart no.9 Chart no.10 Chart no.11 Chart no.12 Chart no.13 CHART TITLE PAGE NO. 38 39 40 41 42 43 44 45 46 47 51 54 56

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LIST OF TABLES Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Table Name Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Page No. 38 39 40 41 42 43 44 45 46 47 48 49 50 50 51 52 52 53 53 54 55 55 56

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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 be existing 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.

Aristotle said, “Beauty is a greater recommendation than any letter of introduction.” This could aptly summarize why innumerable products are endorsed by celebrities, with or without a significant need or benefit from the same. Similarly every product has an image. The consumer tries to consume a brand which has the maximum fit with his/her own personality/image. 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. A brand should be cautious when employing celebrities to ensure promise believability and delivery of the intended effect. 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. As the celebrities traverse from a mere commercial presence to public welfare message endorsements, 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.

HISTORY Celebrities are involved in endorsing activities since late nineteenth century. The advent of celebrity endorsements in advertising in India began when Hindi film and TV stars as well as sportspersons began encroaching on a territory that was, until then, the exclusive domain of models. One of the first sports endorsements in India was when Farooq Engineer became the first Indian cricketer to model for Bryl cream. The Indian cricket team 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 Suitings).

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INTRODUCTION Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of a person’s time to inform him or 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 endorsers is a widely used marketing strategy.

Pepsi too in this regard has always tried to tap the young segment of India through their promotions. Beginning from the famous “Ahaa” series of ads to the “Yah Dil Mange More” to today’s “Youngistan Meri always made ads to attract Jann”, Pepsi has

the youth. They have

always chosen the young stars, may not be established, as a face of young India. So the main reason of using Dhoni is same in case of the latest Youngistan Meri Jann ads. Pepsi is
an intelligent brand which attaches itself with fun and

enjoyment. It also shows its daring attitude, mischievous behaviour and outgoing nature. Pepsi Co invests large sums of money to align their brands and themselves with endorsers. Such endorsers are seen as dynamic with both attractive and likeable qualities and Pepsi Co. plans that these qualities are transferred to products via marcom activities. Furthermore, because of their fame, celebrities serve not only to create and maintain attention but also to achieve high recall rates for marcom messages in today’s highly cluttered environments. Similarly every product has an image. The consumer tries to consume a brand which has the maximum fit with his/her own personality/image. 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. Every product has an image. The consumer tries to consume a brand which has the maximum fit with his/her own personality/image. 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.

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In this report, we have focused on the impact of celebrity endorsement on brand image and also tried to find out how celebrity endorsements affect the buying behavior of the customers. “Brand” is the most valuable asset of any firm.

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 model of Celebrity Endorsement”, is essentially based on the theoretical framework of Classical Conditioning given by Ivan Pavlov.

The classical conditioning paradigm can be used to understand the effectiveness of celebrity endorsement. This is the process through which “a previously neutral stimulus, by being paired with an unconditioned stimulus, comes to elicit a response very similar to the response originally elicited by the unconditioned stimulus”. In a marketing context, consumers learn the association between an endorser (unconditioned stimulus) and a product (conditioned stimulus) through repeated exposure.

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BRANDING & CELEBRITY ENDORSEMENT Today, use of celebrities as part of marketing communication strategy is fairly common practice for major firms in supporting corporate or brand imagery. What is a Brand? A brand is a name, sign, symbol, slogan or anything that is used to identify and distinguish a specific product, service, or business. Brand is the image of the product in the market. Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation.

DEFINITION OF CELEBRITIES Celebrities are people who enjoy specific public recognition by a large number of certain groups of people. They have some characteristic attributes like attractiveness, extraordinary lifestyle or special skills that are not commonly observed. Thus, it can be said that within a society,

celebrities general y differ from the common people and enjoy a high degree of public awareness.

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NEED AND SCOPE OF THE STUDY The Need of This Study The charisma of the celebrities almost always entices people and their words are worshipped by a lot of people. Their influence also goes on the political front, where they are invited for

political endorsement. E.g. Hema Malini for B.J.P., Govinda for Congress, Amitabh Bachchan for S.P. The need of this study is to have a deeper understanding of the concept of “celebrity endorsement”. Since we all are from marketing background, we have gone through various concepts relating to marketing but this was one of the concepts that we had not studied very thoroughly. Hence, when we were given a chance to undertake a project report we took this as our project so as to get better acquainted with the same. Also, since in the current scenario the use of celebrity endorsement is regularly increasing, we wanted to have better understanding of the same.

WHY COMPANIES USE CELEBRITIES - THE CELEBRITY EDGE Psychological Factors: Celebrities generally satisfy the 'esteem needs' of an individual. For example a movie actress is expected to possess a flawless skin and a blemish free face. Her fans want to know the secret of her beauty, so she becomes a natural endorser for beauty related products (cosmetics, soaps, powder). propping Up Awareness and Trust Levels: Rahul dravid – bob To Sachin Tendulkar as brand ambassador gave it the desired facelift and image for the launch of 'Victor' Value for Money: To Position their Brand Distinctively: Lux worldwide has positioned itself as the 'soap the filmstars use'. From Leela Chitnis to Aishwarya Rai, all top actresses have modeled for Lux. Celebrity standing for a Single Brand: Think Zakir Hussain and you are reminded of 'Wah Taj' Taj Mahal tea. Ditto with A. R. Rahman for Airtel.

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SCOPE OF THE STUDY Region Scope The scope of this study, as far as the area is concerned, is limited to Lovely Professional University Campus only. Due to time and other resource constraints we have limited our scope of study to this particular area and hope to focus entirely on this available niche segment. Topic scope We have limited the scope of our study to only one brand i.e. Pepsi. Pepsi our the past few years has spent heavily on celebrity endorsements and this provides us with the opportunity to have a better understanding of the topic since we will be able to get a lot of secondary data regarding the same matter of concern.

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OBJECTIVES Previous studies in the area of celebrity endorsement have focused on how consumers react to celebrity endorsement but there is limited research available when it comes to how companies use celebrity endorsement and how they work to reduce the risks involved in celebrity endorsement. Our main concern will be to get the most satisfactory answer to the following question: To find the effects of celebrity endorsement on brand image of Pepsi in lovely professional university. To understand the effects of celebrity endorsement on the buying behavior of individuals at LPU towards Pepsi.

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REVIEW OF LITERATURE Biswas S, Hussain M, O'Donnell K (2009) in their research topic “Celebrity Endorsements in Advertisements and Consumer Perceptions: A Cross-Cultural Study” say that there is a positive, although moderate, impact of celebrity endorsements on attention and exposure of consumers. Implications for marketers as well as suggestions for future research are discussed. The article is of the view that although there is considerable risk in endorsing celebrities for products and services, the firms need to analyse the various factors that can reduce such risks and hence increase the likeability of transfer of leverage of the brand image from the celebrity to the products and services. Article URL : http://www.informaworld.com/smpp/content~content=a909857169~db=all~jumptype=rss __________________________________________________________________________________ Dix S, Pougnet S (2009) in their research article “Bend it like Beckham”: the influence of sports celebrities on young adult consumers have found that Athlete role model endorsers have a positive influence on young adults' product switching behaviour, complaint behaviour, positive word-of-mouth behaviour and brand loyalty. This confirms the assumption that sports celebrities are important socialisation agents and can have significant impact on purchase intentions and behaviours. This research provides useful insight into the influence of athlete endorsers on young adults and suggests athletes have a positive influence on young adults' behavioural intentions in switching products, generating word-of-mouth and establishing brand loyalty.

Article URL: http://www.emeraldinsight.com/10.1108/17473611011025993
__________________________________________________________________________________ Elberse A (2009) in her article “Risks and rewards of celebrity endorsements” found that sales for brands in a variety of consumer-product categories jumped an average of 4 percent in the six months following the start of an endorsement deal, even after controlling for advertising expenditures and other factors that could be expected to drive up sales. Why does celebrity endorsements work as well as they do? One obvious explanation is that celebrities help firms to tap into their fan base. They open new markets. Consider tennis star Maria Sharapova, one of today's most sought-after -- and, as our research shows, most effective -- endorsers: The mere fact that Sharapova promotes fashion label Cole Haan may encourage her most devoted fans to visit its shops, allowing Cole Haan to perhaps attract a younger and more diverse demographic.

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Article URL: http://www.cnn.com/2009/OPINION/12/16/elberse.athlete.endorsements.tiger.woods/index.html
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Goddard L, Wilbur N (2009) in their study “the impact of negative information about a celebrity spokesperson on consumers' perceptions of the endorsed brand” provide a starting-point for further research on negative information transference in the celebrity endorsement relationship. It is crucial that organisations be aware of the risks associated with using celebrities to endorse their stores and products. Given that these results provide tentative support for the commonly held belief that a decline in the celebrity's image can impact the image of the brand, it is important that retailers carefully choose an endorser who currently has a good image and will likely be able to uphold this image in the future. Article URL: http://www.emeraldinsight.com/10.1108/09590550910948556
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Mukherjee D (2009) in his research topic “Impact of Celebrity Endorsements on Brand Image” is of the view that Celebrity endorsement has been established as one of the most popular tools of advertising in recent time. It has become a trend and perceived as a winning formula for product marketing and brand building. It is easy to choose a celebrity but it is tough to establish a strong association between the product and the endorser. While the magnitude of the impact of celebrity endorsement remains under the purview of gray spectacles, this article is an effort to analyze the impact of celebrity endorsements on brands. Objective of this article is to examine the relationship between celebrity endorsements and brands, and the impact of celebrity endorsement on consumer's buying behaviour as well as how consumer makes brand preferences. Celebrity endorsement is always a two-edged sword and it has a number of positives - if properly matched it can do wonders for the company, and if not it may produce a bad image of the company and its brand. Article URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1444814 __________________________________________________________________________________ Strout R (2008) in his case material “Pepsi and Madonna” examines the use of entertainment personalities in advertising commercial products through the example of Pepsi's use of Madonna. It illustrates how companies try to tie the success of the artist to their product. The paper demonstrates the need for clear evaluation of the celebrity endorser, their public image, and if the relationship between the artist and the product applies to the advertising rules. When Pepsi picked Madonna, the

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choice turned out to be too hot to handle. The $5 million campaign featuring the extravagant vocalist had to be scrapped because of its links to Madonna's highly controversial "Like a Prayer" music video." Article URL: http://www.bloggingstocks.com/2008/07/21/spokesperson-fiasco-5-madonna-preachesto-pepsi/ __________________________________________________________________________________ David H. Silvera, Austad B (2008) in their research topic “Factors predicting the effectiveness of celebrity endorsement on brand image” have examined whether consumers infer that celebrity

endorsers like the products they endorse, and presents a model using these inferences and other characteristics of the endorser to predict attitudes toward the endorsed product. Participants in two experiments examined written endorsement advertisements and were asked to infer the extent to which the endorser truly liked the advertised product and to rate the endorser's attractiveness, similarity to themselves, and knowledge of the product. Attitudes toward the advertisement, the endorser and the product were also measured. The resulting model indicated that product attitudes were predicted by inferences about the endorser's liking for the product and by attitudes toward the endorser. Article URL: http://www.emeraldinsight.com/10.1108/03090560410560218. __________________________________________________________________________________ The authors Kamins A M, (ET all) (2008) have examined celebrity endorsements in advertising using a two-sided framework, in terms of the internalization and identification processes of social influence. The two-sided execution was designed to increase a viewer's perception of advertiser credibility by including a discussion of a limitation of the advertised service. Results show that when compared to a traditional one-sided celebrity endorsement, the two-sided communication elicited significantly higher advertising credibility and effectiveness ratings, higher evaluation of the sponsor in terms of perceived overall quality of service, as well as a significantly greater intention to use the advertised service. These findings suggest that the use of a celebrity appeal in a two-sided form is an effective advertising strategy. Article URL: http://www.jstor.org/pss/4188716 __________________________________________________________________________________ Katyal S (2008) in his article “Impact of Celebrity Endorsement on A Brand Image” talks that despite the obvious economic advantage of using relatively unknown personalities as endorsers in advertising campaigns, the choice of celebrities to fulfil that role has become common practice for

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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.

Article URL: http://www.chillibreeze.com/articles/Celebrity-endorsement.asp __________________________________________________________________________________ Daneshvary R, Schwer K (2008) in their research article “The association endorsement and consumers’ intention to purchase’ have examined the effect of the Professional Rodeo Cowboys Association’s (PRCA) endorsement of products on consumers’ purchase intentions. Survey data were collected from 1,456 respondents attending six rodeos across the USA. Binary logit regression revealed that individuals who attended rodeo frequently and those with less than a college degree were the most likely to accept the association endorsement. The findings are explained within the social influence framework. Article-URL: http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&hdAction=lnkhtml &contentId=856354 __________________________________________________________________________________

Duncan A (2007) in his research paper “Companies Ditch Celebrity Endorsements” says that celebrities were too big and the Pepsi brand didn't get the promotion out of the ad campaign that the stars were getting. Instead, Pepsi's putting the spotlight on its product and replacing the "Joy of Pepsi" campaign with the endorsement-free "Pepsi. It's the Cola." campaign Many companies are shying away from big names and dumping celebrity endorsements altogether. Powerful execs say their brand is overshadowed by the likes of high-profile celebs.

Article URL: http://advertising.about.com/cs/advertising/a/endorsements.htm __________________________________________________________________________________

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Zafer B (2007) in his article “Celebrity endorsement: a literature review” indicates that the effectiveness of celebrity endorsers is moderated by a number of factors, including product-celebrity alignment and target receiver characteristics. Celebrity endorsement can be effective in distinguishing a company's products or services from those of its competitors, but research has produced mixed results regarding the choice of celebrity. Article URL: http://www.faqs.org/abstracts/Business/Celebrity-endorsement-a-literature-review-Green-marketingmultiplier-for-appropriate-technology-tran.html _________________________________________________________________________________ (Business Review) (2006) titled as “A-list celebrity endorsements are failing to dazzle consumers “A new survey published by the AccountAbility think tank and the National Consumer Council (NCC) questioned consumers over their shopping habits and how they judged manufacturers' products and ethnical responsibility. It concluded that the most trustworthy sources of information were considered to be packaging, followed by consumer watchdog groups and then personal recommendation from family and friends. Celebrity product endorsement fared particularly badly - an outcome that producers and marketers will need to take heed of at a time when their reliance on such methods of promotion is extremely strong; one-in-four advertisements currently features a celebrity, versus one-ineight 10 years ago. In this context, the 'cult of celebrity' is weakening, as consumers begin to seek out brands that are more closely associated with ideas of corporate responsibility and trust.

Article-URL:http://www.foodreview.com/comment/alist_celebrity_endorsements_are_failing_to_dazzle_consumers _comment __________________________________________________________________________________ Joshi V (2006) in his article “The Impact of Celebrity Endorsements on Consumer Brand Preferences” indicates that celebrity endorsement advertising strategy can under the right circumstances indeed justify the high costs associated with this form of advertising. The use of celebrity for endorsements create a very favourable impact on the consumer and it creates a connect which forces a consumer to purchase a product. However, as several failures show, it is essential for advertisers to be aware of the complex processes underlying celebrity endorsement. Modern day consumers are well educated and smart, they know celebrities are being paid for these endorsements and this knowledge makes consumers rather more cynical about the product and celebrity

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endorsements. Majority of the consuming population also knows what is advertising and how it actually works and this knowledge of consumer makes the task of celebrity endorsement all the more difficult and challenging for the advertising companies and the sponsors.

Article URL: http://www.indianmba.com/Faculty_Column/FC706/fc706.html __________________________________________________________________________________
Erdogan (2005), "Celebrity Endorsement: A Literature Review", Journal of Marketing Research,

15, 291-314) writes that product endorsement is a form of testimonial from someone which indicates
that they like or approve of a product. Commonly, product endorsements are solicited from people who are socially prominent, allowing companies to advertise their products with statements like as used by such-and-such an actress, or the official product of company/event X. Consumers are often seduced by the idea of purchasing a product which is endorsed by someone wealthy or famous, as though by buying the product, the consumer also becomes affiliated with the person who endorses it. _________________________________________________________________________________

Brian D. Till (2005) in his research article “Using celebrity endorsers effectively: lessons from associative learning” is of the view that the use of celebrity endorsers in advertising is wide-spread – as much as 20 percent of all advertising use some type of celebrity endorser. Marketers invest significant dollars in securing the promotional support of well-known individuals. Associative learning principles are presented as a useful framework for understanding how celebrity endorsers can be used more effectively. Principles such as repetition, overshadowing, blocking, belongingness, association set size, and extinction are introduced and linked to specific managerial suggestions for improving the use of celebrity endorsers. Article URL:http://www.emeraldinsight.com/10.1108/10610429810237718 __________________________________________________________________________________ Diana S, Bryan A. (2003) in their research paper ”The equity effect of product endorsement by celebrities” suggest that both endorser image and brand image serve as mediators in the equitycreation process of celebrity product endorsement. The theoretical perspective adopted in this study is that celebrity product endorsement is a form of co-branding. This study outlines a conceptual framework that can be used to organise and guide future research into how celebrity product endorsement creates equity for both the endorsed product-brand and the endorsing celebrity. Article URL: http://www.emeraldinsight.com/10.1108/03090560710718148

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Hsu C, McDonald D (2001) in their research article” An examination on multiple celebrity endorsers in advertising” say that Celebrity endorsement advertising is a prevailing advertising technique. Some marketers choose to utilize multiple celebrities to promote their products or brands. Nevertheless, it is surprising that so little research has focused on this phenomenon. This research discusses advantages and potential concerns of multi-celebrity endorsement advertising and documents the actual use of multiple celebrity endorsers in the Pepsi campaign in the USA. Overall, the findings have been that the Pepsi ads have matched their celebrities’ gender, age and type of cola attributes in appealing to their female/male, teen/adult consumers. The results support that fit between the endorsed product and various celebrities is a key factor for using multiple celebrity endorsers in advertising. Article URL: http://www.emeraldinsight.com/10.1108/10610420210419522 __________________________________________________________________________________ Martin J (2000) in his research paper “Is the athlete’s sport important when picking an athlete to endorse a non sport product” tells that businesses will spend millions of dollars associating their products with athletes through product endorsements. Finding the “best” athlete to make the endorsement is a crucial decision. Several theoretical perspectives suggest that the sport from which the athlete comes may be an important factor in producing a favourable consumer response. In a study conducted to investigate the effects of the type of sport on endorsement evaluations, results indicated that the image of the sport, independent of the athlete, can contribute significantly to the consumer’s response to an endorsement. The image of the sport can enhance, or detract from, the effects of the personality and appearance of the athlete making the endorsement. These findings suggest the managers should consider the sport, as well as the athlete carefully, when picking a product spokesperson. Article URL: http://www.emeraldinsight.com/10.1108/07363769610152581 __________________________________________________________________________________

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IMPACT OF CELEBRITY ENDORSEMENTS ON OVERALL BRAND Successful branding programs are based on the concept of singularity. The objective is to create in the mind of the prospect the perception that there is no other product on the market quite like your product." Al Ries & Laura Ries Indian advertising started with the hawkers who used to call out their wares right from the days when cities and markets first began. Since then, Indian advertising has metamorphosed into a strategic tool that enhances sales, siphons more profits and helps in the process of brand-building and product promotion. With this evolved a strategy that tried to benefit from the emotional attachment of the admirers or the fans of the celebrities; in the form of celebrity endorsement. It does help in creating instant awareness and visibility; but for a cost. "Brand" is the most valuable asset of any firm. Any thoughtless adventure can be like the Sword of Damocles. It's the "strong idea" of promotion which is a more strategic means of brand-building; which can be an economical alternative over celebrity endorsement. "It doesn't matter how new an idea is; what matters is how new it becomes." Elias Canetti If you're trying to persuade people to do something, or buy something, it seems to me you should use their language, the language in which they think." David Ogilvy

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THE NEED FOR CELEBRITY ENDORSEMENT The charisma of the celebrities almost always entices people and their words are worshipped by a lot of people. Their influence also goes on the political front, where they are invited for political endorsement. The business firms, thus, resort to celebrity endorsement to perk up brand recall and product sales. This has now become a trend and is being perceived as a strategic means of brand building exercise. The Elaboration Likelihood Model (EML) suggests that consumers will scrutinize claims more in important situations (say, life saving drugs) than in unimportant ones. So, for almost similar products like Coke and Pepsi, it makes sense to use endorsement. Also, Friedman & Friedman have shown that a celebrity relative to a non-celebrity spokesperson would be more effective for products high in psychological or social risk, involving such elements as good taste, self-image, and opinion of others. For example, when actor Shah Rukh Khan endorses Santro-Zip drive; the consumers are made to think that he is giving his opinion to go for this car. Two reasons why advertisers need celebrity endorsement are to increase the credibility & attractiveness of their advertisement. This is solely to affect consumers' attitude towards their brand. To justify this hypothesis, we can take the example of former Miss Universe Sushmita Sen who helped the Epson brand of printers achieve instant recognition; even with the established giants like HewlettPackard and Wipro in the running. Similarly, actress Rani Mukherjee has turned the tables for Bata's ladies footwear brand called Sundrop as sales increased by a whopping 500%.

THE PROCESS OF CELEBRITY ENDORSEMENT The process of celebrity endorsement is more of meaning translation & meaning application. A deeper insight into this complex process is provided by the following theory. The Meaning Transfer Model McCracken, the author to this model, has suggested that, "The effectiveness of the endorser depends, in part, upon the meaning he or she brings to the endorsement process." The celebrities' effectiveness as endorsers stems from the cultural meanings with which they are endowed. It is a three-stage process of meaning transfer that involves the formation of celebrity image, transfer of meaning from celebrity to the brand, and finally, from the brand to the consumer.

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Figure 1: The Meaning Transfer Model To explain it with the help of an example, we can take the case of Rahul Dravid and Castrol. The cricket icon is seen as "Mr. Dependable". And when he endorses Castrol, an image of "dependability" is tagged on to the brand under promotion. CELEBRITY SELECTION There are various scientific ways in which the right celebrity is selected for the product endorsement, which are discussed here after Stereotyping Tellis, defines stereotypes as perceptions and depictions of individuals based on simplistic, biased image of the group to which they belong, rather than on their own individual characteristics. For example: its better to select celebrities who say are teens for chocolate advertisements and females for detergent ads, etc.

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The TEARS Model The attributes highlighted by the acronym "TEARS" are gauged for celebrity selection. These are: Trustworthiness: For example - Legendary actor Amitabh Bachchan who is an icon of trust; promoting ICICI Bank. Expertise: For example - Golfer Tiger Woods for a sports brand. Attractiveness: For example - Tennis player Anna Kournikova who earns 10 Million dollars per year in just endorsement. Respect: For example - Former Miss World Aishwarya Rai and the Eye donation campaign. Similarity: For example - a child artist promoting a chocolate brand. A celebrity scoring high on all the above attributes can turn out to be a good endorser for the brand under question. THE NO TEARS MODEL The "No TEARS" approach is a tool for managers and their advertisers how to go about selecting celebrities so as to avoid the pitfalls from making an unwise decision. It gauges the following information: celebrity & audience match up, celebrity & brand match up, celebrity credibility, celebrity attractiveness, cost consideration, a working ease and difficulty factor, an endorsement saturation factor, a likelihood-of-getting-into-trouble factor

Selecting the right celebrity does more than increasing sales; it can create linkages with the celebrities' appeal, thereby adding new dimension to the brand image. Research conducted by Katherine Eckel has revealed that celebrities can get people to make a better choice but cannot influence 'people to make a foolish choice'.

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The success of celebrity endorsement in India can be sought from a market research conducted earlier which found that 8 out of 10 TV commercials scored the highest recall were those with celebrity appearances. A few examples: Sachin Tendulkar - Adidas, Sourav Ganguly - Britannia, Leander Paes & Mahesh Bhupati - J. Hampstead, Shah Rukh Khan - Pepsi, Sushmita Sen - Epson, and Aishwarya Rai - Coke.

THE BENEFITS THAT ACCRUE FROM SUCH A RELATIONSHIP CAN BE CATEGORIZED INTO TWO COMPONENTS: Value of Hard Assets: The benefits derived from the hard assets are those that have a clear market value such as increased sales and increase in brand equity. These are the tangible benefits that a company derives from its endorsement strategy. Value of Association: Association value is derived from the target customers who associate the company / brand with the celebrity. These are the intangible benefits that the company will accrue in the long-term. There are ways to quantify the potential value of hard assets and association value against their impact on company's celebrity endorsement by looking at the following catergories: Incremental Sales Companies can quantify the effect of the celebrity programs on sales by performing year-to-year or quarter-to-quarter sales comparisons for targeted consumers, geographic regions, or specific product lines. Primary research can also be done to reveal the impact of the celebrity on target customer's propensity to purchase. Brand Recognition One of the objectives of celebrity endorsement is to increase brand awareness. However, the companies use popular, though incorrect, survey approach by asking the respondent which celebrity endorsed their brand. Instead, they should ask the respondent the brands associated with the celebrity.

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By gauging the top-of-mind recall can enable the company to find out if a connection is made between the brand and celebrity.

Figure 2: ENDORSEMENT COST-VALUE RELATIONSHIP Customer Loyalty: Customer churn can be measured in fixed intervals before and after the celebrity campaign period to determine the impact of celebrity on customer retention. Additionally, primary research can be conducted to evaluate changes in the customer loyalty, customer preferences, etc.

WHY CELEBRITY ENDORSEMENT FAILS? There may be cases where brands are not able to take-off even after the backing of celebrities. And this leads to speculations in the Ad World on the soundness of celebrity endorsement as an effective communication strategy.

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THE REASONS According to leading management thinker, Dr. Seamus Phan, "Many celebrity endorsements fail because they identify a celebrity they like in an emotive and un-researched manner and then try to create advertising to force-fit the celebrity into the creative concept." Therefore, the advertisers must associate the celebrity to the advertisement and not vice versa. Thinking on the similar lines, the advertisers shouldn't identify the brand to associate with the celebrity but do vice versa. The success of celebrity endorsement also depends upon the capacity, knowledge, experience, and qualification to talk about the product. Failure may be attributed to improper positioning (Example: Amitabh Bachchan, Abhishek Bachchan & Maruti Versa), negative perception after use of product / service (inferior products), misapprehension of the meaning of the endorsement, etc. "The philosophy behind much advertising is based on the old observation that every man is really two men - the man he is and the man he wants to be." William Feather Another reason for the celebrity endorsement to turn against the brand is due to "Overshadowing". This happens when the celebrity is larger than the brand being endorsed. And unfortunately, though the celebrity generates higher levels of attention among viewers, the impression is not always strongly linked to the advertised brand. Finally, brand may also fail to get noticed given a recent negative publicity of the celebrity endorser. Example: Michael Jordan lost his endorsement deals when he announced in 1991 that he's HIVpositive. It wasn't until July 2003 that he landed his first endorsement deal since the announcement.

THE SOLUTIONS As discussed, celebrity management is very crucial to avoid the brand-celebrity disconnect, and subsequently, brand failures. Proper market research should be carried out and right positioning strategies should be in place. If the consumers have questions in their minds regarding the quality or performance of the product then even God cannot save the brand. There shouldn't be any ambiguity or confusions when showing the celebrity in the advertisement. The obvious solution to the problem of overshadowing is to make sure that both the advertisement and the celebrity are focused on the brand or product. To avoid any bad publicity arising out of celebrity defames, companies may resort to

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multiple celebrity endorsement. For Example: Pepsi while capitalizing on the popularity of cricket and films in India used several cricketers and film stars in their ads. So when Azharuddin and Jadeja got embroiled in the match-fixing controversy, Pepsi severed its association only with these stars, but its relationship with cricket continued.

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RESEARCH METHODOLOGY

Research Design Our study is descriptive in nature since we are doing a study with already existing information and want to have further insights into the same by collecting primary data. Sampling Area: Extent refers to the geographical area where there is a scope of population. The extent of the study is only the campus area of Lovely Professional University. Sampling Design: For the selection of the respondents, Convenient Sampling has been used. Scaling Technique: likert scale has been used while framing the questionnaire. Sample size: Sample size is the size of sample drawn from the population which is the true representative of the research. 200 respondents who are studying in Lovely Professional University have been contacted.

SOURCES OF DATA Primary data: Questionnaire Personal interview Secondary data: Books journals Internet websites HYPOTHESIS HO: Celebrity Endorsements has a positive impact on the brand image of the product.

HA: Celebrity Endorsements has no impact on the brand image of the product.
HO: Celebrity endorsement has a positive impact on consumer buying behavior.

HA: Celebrity endorsement has no impact on the consumer buying behavior.

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Q1] ARE YOU AWARE OF THE BRAND PEPSI?

Table 1 showing the % age of people aware about PEPSI

CUMULATIVE FREQUENCY Valid YES 200 PERCENT 100.0 VALID PERCENT 100.0 PERCENT 100.0

Chart 1

According to the data collected from the questionnaire, it was found that the brand awareness of PEPSI was very high and all the respondents contacted said that they knew about the brand PEPSI.

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Q 2] HAVE YOU EVER DRINK PEPSI?

Table 2 showing the number of respondents who have drink PEPSI at least once

VALID FREQUENCY PERCENT VALID YES 200 100.0 PERCENT 100.0

CUMULATIVE PERCENT 100.0

Chart 2

All the respondents contacted said that they have, at least once drank PEPSI in their lives. Hence, the percentage of people is 100% out of the population that we have taken i.e 200.

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Q 3] HOW MUCH YOU ARE CONCERNED ABOUT YOUR CHOICE OF DIFFERENT BRANDS OF COLD DRINKS?

Table 3 showing the concerned level of respondents regarding various brands

VALID FREQUENCY PERCENT HIGHLY CONCERNED SOME-WHAT CONCERNED Valid NEUTRAL Total 42 200 21.0 100.0 21.0 100.0 107 51 53.5 25.5 PERCENT 53.5 25.5

CUMULATIVE PERCENT 53.5 79.0 100.0

Chart 3

According to the survey it was found that all most all the respondents were concerned about the choice of brands and no one gave their response in negative or disagreed with the fact that they don’t give preference to the type of the brand they are purchasing. This represents the rational attitude and behavior of the respondents that they try to look in for certain characteristics and features of the product before purchasing the same.

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Q 4] IDENTIFY THE BRAND FROM THE TAGLINE GIVEN?

Table 4 showing the awareness level of respondents regarding various brand tag lines

CUMULATIVE FREQUENCY PERCENT VALID PERCENT PEPSI SPRITE VALID THUMS UP COCA COLA TOTAL 60 35 44 61 200 30.0 17.5 22.0 30.5 100.0 30.0 17.5 22.0 30.5 100.0 PERCENT 30.0 47.5 69.5 100.0

Chart 4

The main purpose of posing this question was to know the awareness level of the repondents regarding the various cola brands available in the market place. The results that we got showed that COCA COLA and PEPSI were highly recalled from their tag lines while sprite had the least brand recall. This

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clearly signifies that PEPSI and COCA COLA have been successfully been able to distinguish and create a positive image of their brands with respect to other brands in the same product category. Q 5] IDENTIFY THE BRANDS ENDORSED BY THE CELEBRITIES. Table 5 showing the knowledge level of respondents regarding celebrity endorsement
CUMULATIVE FREQUENCY COCA COLA THUMS UP VALID PEPSI SPRITE SLICE TOTAL 64 44 61 17 14 200 PERCENT VALID PERCENT 32.0 22.0 30.5 8.5 7.0 100.0 32.0 22.0 30.5 8.5 7.0 100.0 PERCENT 32.0 54.0 84.5 93.0 100.0

Chart 5

Again here the purpose of posing this question was to know the knowledge respondents had regarding the celebrities endorsing various cola products. The purpose was also to know whether the respondents were aware of the concept of celebrity endorsement and how much importance they gave to it because one who is aware of the concept of celebrity endorsement will have effect of the same on his attitude and buying behavior. The results that we were able to get showed that celebrities endorsing PEPSI and COCA COLA brands were highly recalled as compared to SPRITE and THUMS UP. As is clear from the table almost 32 %

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respondents were able to recognize the celebrities endorsing PEPSI and COCA COLA while 22 % for THUMS UP, 8% and 7% for SPRITE and SLICE respectively. Q 6] IMPORTANCE OF PRICE FACTOR WHILE PURCHASING PEPSI. Table 6 showing the importance of price while purchasing PEPSI

VALID FREQUENCY PERCENT HIGHLY UNIMPORTANT UNIMPORTANT VALID NEUTRAL IMPORTANT HIGHLY IMPORTANT TOTAL 46 51 63 24 16 200 23.0 25.5 31.5 12.0 8.0 100.0 PERCENT 23.0 25.5 31.5 12.0 8.0 100.0

CUMULATIVE PERCENT 23.0 48.5 80.0 92.0 100.0

Chart 6

This question was put forward to the respondents so as to know the degree and level of importance they give to price while purchasing PEPSI and it was found that price was not a major factor in determining the purchasing of PEPSI. More than 50% of the respondents said that they don’t consider

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price as a factor when going for the purchase of PEPSI. However, some 20% respondents were of the view that they do consider price as an essential criteria before purchasing PEPSI. Q 7] IMPORTANCE OF QUALITY FACTOR WHILE PURCHASING PEPSI Table 7 showing the importance of quality while purchasing PEPSI
VALID FREQUENCY PERCENT HIGHLY UNIMPORTANT UNIMPORTANT VALID NEUTRAL IMPORTANT HIGHLY IMPORTANT TOTAL 10 10 60 63 57 200 5.0 5.0 30.0 31.5 28.5 100.0 PERCENT 5.0 5.0 30.0 31.5 28.5 100.0 CUMULATIVE PERCENT 5.0 10.0 40.0 71.5 100.0

Chart 7

The next question was regarding the quality factor and the importance individuals give before purchasing PEPSI. In our study we found that the quality was ranked as one of the most important factors as is clear from the table too that shows that more than 58% of respondents ranked quality as an important factor. Comparing the quality factor with price we can say that individals tend to pay higher

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price or do not pay attention to the price being charged if it is to relate with the quality of the product being purchased

I IMPORTANCE OF AVAILABILITY FACTOR WHILE PURCHASING PEPSI Table 8 showing the importance of availability while purchasing PEPSI

VALID FREQUENCY PERCENT HIGHLY UNIMPORTANT UNIMPORTANT VALID NEUTRAL IMPORTANT HIGHLY IMPORTANT TOTAL 18 54 52 66 10 200 9.0 27.0 26.0 33.0 5.0 100.0 PERCENT 9.0 27.0 26.0 33.0 5.0 100.0

CUMULATIVE PERCENT 9.0 36.0 62.0 95.0 100.0

Chart 8

Regarding the availability factor we received some mixed response from the respondents. Some 33% ranked it an important factor while 27% ranked it as unimportant. From these observations we can conclude that individuals tend to be neutral regarding the availability of PEPSI and can forgo it if not available. This also refers to the fact that since there are similar substitutes available in the market

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place hence, individuals at times tend to forgo their favourite drink and can go for other cola drink. Hence, the availability factor is not considered an important factor as compared to other factors such as quality and price. Q 9] IMPORTANCE OF TASTE FACTOR WHILE PURCHASING PEPSI Table 9 showing the importance of taste while purchasing PEPSI

VALID FREQUENCY HIGHLY UNIMPORTANT UNIMPORTANT NEUTRAL VALID IMPORTANT HIGHLY IMPORTANT TOTAL 63 57 200 31.5 28.5 100.0 31.5 28.5 100.0 10 10 60 PERCENT 5.0 5.0 30.0 PERCENT 5.0 5.0 30.0

CUMULATIVE PERCENT 5.0 10.0 40.0 71.5 100.0

Chart 9

The taste factor was also ranked as an important factor for the purchase of PEPSI. Again, about 58% of the respondents were of the view that they do consider the taste factor before purchasing PEPSI. If we compare the taste and quality factor we see a positive relationship exists between the two. Both these

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factors got almost the same rankings and measures when doing the survey. Hence, we can say that price, taste and quality are the factors that individuals do keep in mind before going for the purchase of PEPSI. Q 10] IMPORTANCE OF CELEBRITY ENDORSING FACTOR WHILE PURCHASING PEPSI Table 10 showing the importance of Celebrity Endorsement while purchasing PEPSI
PERCEN FREQUENCY HIGHLY UNIMPORTAN T UNIMPORTAN T VALID NEUTRAL IMPORTANT HIGHLY IMPORTANT TOTAL 23 52 61 47 200 11.5 26.0 30.5 23.5 100.0 11.5 26.0 30.5 23.5 100.0 20.0 46.0 76.5 100.0 17 8.5 8.5 8.5 T VALID PERCENT CUMULATIVE PERCENT

Chart 10

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Regarding the importance of celebrities on the purchasing behavior of the consumers, the survey that we conducted showed that presence of celebrities in advertisements had a positive impact on the purchasing behavior as most i.e. 50% suggested that presence of celebrities plays an important role in buying PEPSI. Also 26% gave neutral suggestions regarding the same. However, some 19% were of the converse opinion i.e. they believed that presence of celebrities does not induce them to buy or purchase PEPSI.

To conclude the set of questions that followed from 6-A to 6-E, we can say that the most important factors that individuals keep in mind are quality, taste and presence of celebrities. Quality and taste factors define the rational behavior and attitude of the respondents while celebrity endorsement signifies the gratification of the esteem needs of the respondents. Purchasing the products endorsed by celebrities satisfies the esteem needs of respondents and hence forms an important factor while purchasing PEPSI. __________________________________________________________________________________ Q 11] CELEBRITY ENDORSEMENT HELPS IN BUILDING THE BRAND IMAGE OF PEPSI AS COMPARED TO OTHER MEANS OF PROMOTIONS.

Table 11 showing the impact of celebrity endorsement on brand image

GENDER MALE FEMALE 22 35 17 12 14 100 TOTAL 43 68 38 29 22 200

STRONGLY AGREE Celebrity endorsement AGREE helps in building the NEITHER AGREE brand image of PEPSI NOR DISAGREE as compared to other means of promotions. DISAGREE
STRONGLY DISAGREE TOTAL

21 33 21 17 8 100

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CHI-SQUARE TESTS Table 12 showing the Chi-square results for impact of celebrity endorsement on brand image

ASYMP. SIG. (2VALUE Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.002a 3.028 .028 200 DF 4 4 1 SIDED) .558 .553 .868

According to our study we found that most of the respondents were of the view that including celebrities in advertisements increases the brand image of the product being endorsed [PEPSI in our case]. The value of the Chi-Square test that we received on applying the same delivered a value of .558 which indicates that it is more than the standard 0.05 level of significance. Hence, we accept our null hypothesis which states, “that there is a positive relationship between celebrity endorsement and brand image” and reject our alternate hypothesis. Hence, we conclude that there exists a positive relationship between celebrity endorsement and brand image.

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Q 12] CELEBRITY ENDORSEMENT ALWAYS HAS THE POSITIVE EFFECT ON THE BRAND IMAGE OF THE PRODUCT. Table 13 showing whether celebrity endorsement always has the positive effect on brand image
GENDER MALE STRONGLY AGREE 12 5 20 40 23 100 FEMALE 14 13 24 30 19 100 TOTAL 26 18 44 70 42 200

Celebrity endorsement AGREE always has the positive NEITHER AGREE NOR effect on the brand DISAGREE image of the product. DISAGREE
STRONGLY DISAGREE TOTAL

Chi-Square Tests Table 14 showing the results for, whether celebrity endorsement always has the positive impact
ASYMP. SIG. VALUE Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5.883a 6.016 2.758 200 DF 4 4 1 (2-SIDED) .208 .198 .097

Although most of the respondents responded negatively to this question but when we applied the ChiSquare test we found that the value we got varied significantly from the standard (0.05) level of significance which means that the null hypothesis is accepted and the alternate hypothesis is rejected Hence, we can say that celebrity endorsement always has positive impact on the brand image.

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Q13] MALE CELEBRITIES LEAVE GREATER IMPACT THAN FEMALE CELEBRITIES WHILE ENDORSING PEPSI. Table 15 showing the comparison between male and female celebrities and their respective impact on brand image.
Cumulative Frequency STRONGLY AGREE AGREE NEITHER AGREE NOR Valid DISAGREE DISAGREE STRONGLY DISAGREE Total 45 48 41 29 37 200 Percent 22.5 24.0 20.5 14.5 18.5 100.0 Valid Percent 22.5 24.0 20.5 14.5 18.5 100.0 Percent 22.5 46.5 67.0 81.5 100.0

Chart 11

The results that we got when we surveyed about which gender leave greater impact on consumers revealed that male celebrities advertising for PEPSI leave a greater impact than female ones. This can be also justified from the fact that the current advertisement featuring Sanjay Dutt and Ranbir Kapoor for PEPSI are coming on the television sets all over India.

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Q 14] YOU BUY PEPSI BECAUSE YOUR FAVOURITE CELEBRITY ENDORSES THE PRODUCT. Table 16 showing the results for the reason for buying PEPSI
GENDER MALE STRONGLY AGREE AGREE You buy PEPSI because your favourite celebrity endorses the product. NEITHER AGREE NOR DISAGREE DISAGREE STRONGLY DISAGREE TOTAL 9 18 31 31 11 100 FEMALE 11 28 26 26 9 100 TOTAL 20 46 57 57 20 200

Chi-Square Tests Table 17 showing the chi square results of the reason for buying PEPSI
ASYMP. SIG. VALUE Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.451a 3.470 2.006 200 DF 4 4 1 (2-SIDED) .485 .482 .157

On analyzing the chi square value we found that the value got [.485] differs significantly from the standard level of significance i.e. 0.05. Hence, we accept the null hypothesis which states that celebrity endorsement has a positive impact on consumer buying behavior and reject the alternate hypothesis which states that celebrity endorsement does not have any effect on the consumer buying behavior.

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Q 15] YOU WILL SHIFT FROM PEPSI TO ANOTHER BRAND IF YOUR FAVOURITE CELEBRITY STOPS ENDORSING IT. Table 18 showing whether respondents will shift from PEPSI to other brand
GENDER MALE STRONGLY AGREE You will shift from PEPSI AGREE to another brand if your NEITHER AGREE NOR favourite celebrity stops DISAGREE DISAGREE STRONGLY DISAGREE TOTAL endorsing it. 27 28 25 15 5 100 FEMALE 22 33 19 18 8 100 TOTAL 49 61 44 33 13 200

Chi-Square Tests Table 19 showing the chi square results for shifting behavior of respondents.
ASYMP. SIG. VALUE Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 2.703a 2.714 .668 200 DF 4 4 1 (2-SIDED) .609 .607 .414

Since our null hypothesis regarding the impact of celebrity endorsement on consumer buying behavior has been accepted, due to the value of chi square test [which =.609] turning out to be more than the standard level of significance i.e. 0.05. So, as has been also stated by most of the respondents that they will shift from PEPSI if their favourite celebrity stops endorsing the product, we can state that most of the respondents will shift from PEPSI to other brand if their favourite celebrity starts endorsing some other cola brand. This statement is also in line with our null hypothesis which has already being accepted.

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Q 16] PRESENCE OF CELEBRITIES IN PEPSI HAS CHANGED YOUR PERCEPTION REGARDING THE BRAND. Table 20 showing the results for the impact of celebrity endorsement on perception of respondents
VALID FREQUENCY PERCENT STRONGLY AGREE AGREE NEITHER AGREE NOR DISAGREE VALID DISAGREE STRONGLY DISAGREE TOTAL MISSING SYSTEM TOTAL 48 44 199 1 200 24.0 22.0 99.5 .5 100.0 24.1 22.1 100.0 77.9 100.0 20 48 39 10.0 24.0 19.5 PERCENT 10.1 24.1 19.6 CUMULATIVE PERCENT 10.1 34.2 53.8

Chart 12

When the respondents were asked about whether the presence of celebrities has changed their perception regarding PEPSI or not, the results obtained showed a mixed response of strong agreement to strong disagreement.

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Q 17] THE RECENT ADVERTISEMENT OF PEPSI HAS INCREASED YOUR CONSUMPTION OF PEPSI.

Table 21 showing the results for the recent impact of advertisement made by PEPSI

GENDER MALE STRONGLY AGREE The recent advertisement AGREE of PEPSI has increased NEITHER AGREE NOR your PEPSI. consumption of DISAGREE DISAGREE STRONGLY DISAGREE Total 9 18 31 31 11 100 FEMALE 11 28 26 26 9 100 TOTAL 20 46 57 57 20 200

Chi-Square Tests Table 22 showing the chi square results for impact of recent advertisement made by PEPSI
ASYMP. SIG. VALUE Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.451a 3.470 2.006 200 DF 4 4 1 (2-SIDED) .485 .482 .157

As our null hypothesis regarding the impact of celebrity endorsement on the purchasing behavior of consumers has already been accepted and that we have rejected the alternate hypothesis we can state that the resent advertising of PEPSI has increased the consumption level of the respondents. As we can also check the same from the value which is= .485. Since the value is more than the standard level of significance 0.05, we can easily conclude that the recent advertisement has increased the consumption of PEPSI among the respondents.

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Q 18] You strongly recommend that companies should use celebrities in their advertisements. Table 23 showing the results for the recommendation provided by the respondents.
VALID FREQUENCY STRONGLY AGREE AGREE NEITHER AGREE NOR Valid DISAGREE DISAGREE STRONGLY DISAGREE Total 59 45 59 20 17 200 PERCENT 29.5 22.5 29.5 10.0 8.5 100.0 PERCENT 29.5 22.5 29.5 10.0 8.5 100.0 CUMULATIVE PERCENT 29.5 52.0 81.5 91.5 100.0

Chart 13

From the data that we collected we were able to know that the respondents strongly believed that Companies should go for the use of celebrities in their advertisements. The use of celebrities, as has been proved and observed not only enhances the brand image but also increases the consumption pattern of the individuals.

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CONCLUSION Celebrity endorsement can be a goldmine or a minefield for a company's brand building process. There have been extensive studies relating to the process of celebrity endorsement and brand-building These studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. Few celebrities have been more successful than those with almost parallel fame. So the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as a assured strategic tool to win profits, market share, revenues, etc. Consumers can identify the clear difference between a good script and a good brand idea. For example, while Pepsi's Sachin and Bachchan (kite flying) ad was seen as one with a good script, Coca-Cola's Thanda Matlab... was seen as an insightful and strong brand idea. For all the flak it drew in its vainglorious attempts to run down competition, Thumbs-Up was seen as the only example of seamless linkage between brand positioning and brand celebrity. "Brand" is the most valuable asset of any company; building its image is, thus, of paramount importance. Any thoughtless adventure can be like the Sword of Damocles upon your head. Celebrities do not make brands but ideas do. If the former were true then brands would have vanished when the hype and hoopla around the celebrities faded. Celebrity endorsement is also one of the ideas. But, its easy to come up with new ideas; the hard part is letting go of what worked for you two years ago, but will soon be out-of-date. Therefore, it is imperative to invest in good ideas; which will bring good returns. Thus, the need of the hour is to focus less on your Return-on-Investment, and think more in terms of your Return-on-Ideas. There is an increasing challenge to the marketing manager to develop and implement an integrated marketing communication (IMC) plan to realize the true value of the celebrity endorsements. There is a gradual shift from the traditional approach of showing celebrities in advertisement to making them the "spokes-person" of the brand. Companies have taken celebrity endorsement to next level by projecting brands as a way of life. Smart companies are using their brand ambassadors in other mediums such as movies to promote their brands. E.g., Amitabh Bachchan, who endorses the financial instruments of ICICI Bank, is shown as a branch-manager of ICICI Bank in the movie Baghban. Wooing the key existing and potential target customers is the trait of a successful promotion strategy. However, the marketing manager should be able to offer significant value propositions in the services / products offered to the customers. Thus, one needs to integrate celebrity endorsement with other marketing programs and ensure that the celebrity attributes align with the overall brand or company.

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Companies that succeed in developing such an integrated IMC plans is the one to succeed in the longterm.

"There is one thing which is stronger than all the armies of this world, and that is an idea whose time has come." - Victor Hugo

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BIBLIOGRAPHY
BOOKS REFERED Philip Kotler (2008), Marketing Management 12th Ed, New Delhi, Pearson Education, PP3442 Kotler, Philip and Pfoertsch (2006) Waldemar, 12th Ed, New Delhi, Pearson publication, PP 56-66 Shah .K and D’Souza .A (2009) Advertising and Promotions :An IMC Perspective 11th Ed, New Delhi ,TMH Publications, PP359-366

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,www.chillibreeze.com/articles/Celebrity-endorsement.asp.

David H. Silvera and Austad B (2007) “Factors predicting the effectiveness of celebrity endorsement on brand

image”(Aug,2007)www.emeraldinsight.com/10.1108/03090560410560218. Katyal S , “Impact of Celebrity Endorsement on A Brand Image”

Jan21,2009,www.chillibreeze.com/articles/Celebrity-endorsement.asp

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Daneshvary R, Schwer K “The association endorsement and consumers’ intention to purchase’ (2006), www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&hdAction=lnkht ml&contentId=856354. Elberse.A “Risks and rewards of celebrity endorsements” (2009),

www.cnn.com/2009/OPINION/12/16/elberse.athlete.endorsements.tiger.woods/index.html. Elberse.A “Risks and rewards of celebrity endorsements”

(2009),www.cnn.com/2009/OPINION/12/16/elberse.athlete.endorsements.tiger.woods/index.ht ml Joshi V “The Impact of Celebrity Endorsements on Consumer Brand Preferences” (2008),www.indianmba.com/Faculty Column/FC706/fc706.html

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QUESTIONNAIRE Dear Sir/Madam, We are conducting this survey as a part of our MBA programme from Lovely Professional University. The purpose of this survey is to study the “Impact of Celebrity Endorsement on brand Image of PEPSI”. Please spare some time to answer the following questions. Your responses shall be used for the purpose of research only and shall be kept confidential. Q 1] Are you aware of the brand PEPSI? A] Yes B] No

Q 2] Have you ever drink PEPSI? A] Yes B] No

Q 3] How much you are concerned about your choice of different brands of cold drinks? A] Highly concerned E] None concerned. B] Some-what concerned C] Neutral D] Least

Q 4] Identify the brands from the taglines mentioned below? A] Yeh hai youngistaan meri jaan ___________________________ B] Seedi Baat, No bakwaas, Clear hai ________________________ C] Taste the thunder ______________________________________ D] Thanda Matlab _______________________________________

Q 5] Which soft drink brands do the following celebrities endorse? A] Aamir Khan ______________________________________ B] Akshay Kumar ____________________________________ C] Ranbir Kapoor ____________________________________ D] Malika Sherawat __________________________________ E] Katrina Kaif _______________________________________

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Q 6] Which factors are important while you are purchasing PEPSI? Where 5=highest and 1= lowest and others being the intermediate values ATTRIBUTES Price Quality Availability Taste Celebrity endorsing 5 4 3 2 1

Q7) Please answer the following questions. Against each statement, 5 alternatives are given, which you may tick. After reading each statement carefully, please tick the corresponding block as per your belief. For example, if you strongly disagree with the statement, tick the block ‘1’. If you are undecided, tick the block ‘3’ and for others, you may tick the block, from ‘5 to 1’ depending on how you feel about the statement. INDEX: 1= Strongly Agree 2= Agree 3= Neither Agree Nor Disagree 4= Disagree 5= Strongly Disagree

Sr. No

5 STATEMENT Celebrity endorsement helps in building the brand image of PEPSI as compared to other means of promotions. Celebrity endorsement always has the positive effect on the brand image of the product. Male celebrities leave greater impact than female celebrities while endorsing PEPSI. You buy PEPSI because your favourite celebrity endorses the product. You will shift from PEPSI to another brand if your favourite celebrity stops endorsing it.

4

3

2

1

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Presence of celebrities in PEPSI has changed your perception regarding the brand. The recent advertisement of PEPSI has increased your consumption of PEPSI. You strongly recommend that companies should use celebrities in their advertisements.

Please also provide the following information about yourself: Name:_____________________________Address:______________________________ Phone/Mobile:_____________________ E-mail_Id: ______________________________ Age: 18-22 22-30 30-36 Thanks for your co-operation.

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