1

A
PROJECT ON
CELEBRITY ENDORSEMENTS AND BRAND
BUILDING
SUBMITED BY
PANKAJ DEEPAK AGARWAL
ROLL NO - 96
T.Y.B.M.S. SEMESTER-VI
PROJECT GUIDE
Dr. MMAHEK Chhabria
SUBMITTED TO
UNIVERSITY OF MUMBAI
RAJASTHANI SAMMELAN’S
Ghanshyamdas Saraf College
Of Arts & Commerce
Affiliated to University of Mumbai
Reaccredited by NAAC with ‘A’ Grade
S.V.Road, Malad (west)
Mumbai – 400064
A.Y. 2019-2020
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CERTIFICATE

This is to certify that Mr. PANKAJ AGARWAL, Roll no:96, has worked and duly
completed his project work for the degree of bachelor of management studies under the
faculty of commerce in the subject of and his project is entitled,”
CELEBRITY ENDORSEMENTS AND BRAND BUILDING “under my supervision
. I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any degree or diploma of any
university.

It is his own work and facts reported by his personal findings and investigations.

Name & Signature of:

Project Guide: Principal:

Date:

External Examiner:
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DECLARATION

I, the undersigned, Miss/Mr. PANKAJ AGARWAL , a student of Ghanshyamdas Saraf

College of Art & Commerce, Malad (West) T.Y.B.M.S. SEMESTER – VI hereby declare that
the work embodied in this project work titled “ CELEBRITY ENDORSEMENT AND
BRAND BUILDING “, forms my own contribution to the research work carried out under the
guidance of PROF. MAHEK ,is a result of my own research work and has not been previously
submitted to any other University for any other Degree/Diploma to this or any other
University.
Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.
I, hereby further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

Name and Signature of the student

Certified by

Name and Signature of the Guiding Teacher

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ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal Dr. Jayant Apte for providing the necessary facilities required
for completion of this project.

I take this opportunity to thank our Chief Coordinator Dr. Lipi Mukherjee and Course
Coordinator Prof. Prajna Shetty for their moral support and guidance.

I would also like to express my sincere gratitude towards Prof. Dr. MMAHEK Chhabria

whose constant guidance helped in successful completion of the project work.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.
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INDEX

Sr. No. Topic Page Number

 Executive Summary 6

1. 1.1 Introduction to the Industry 8

1.2 Introduction to the Company (all sub topics to

come under this chapter in the form of 1.2.1,1.2.2, etc)
2. Research Methodology

2.1 Scope

2.2 Objectives of the study

2.3 Significance of the study

2.4 Hypothesis

2.5 Data Collection Method

2.6 Sampling Design

3. Literature Review

4. Data Analysis, Interpretation& Presentation

General Analysis (As Applicable)*
 SWOT analysis

 PESTLE analysis

 BCG matrix

 Porter’s 5 Force model

 Competitor’s analysis
Survey results
5. Findings, Conclusions, Suggestions and Limitations of the
study

6. Case Study/ Article (Optional)

 Bibliography/References

 Appendix
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Executive Summary

Today, we all are living in an over-communicated world. Mass media and internet have
facilitated the world in becoming a globally interactive world. Indian households, slowly and
gradually are getting grabbed in the strong claws of the media. Such an enormous and
enlarged exposure to media, which was never seen before, led to increased opportunities for
the marketers and manufacturers to market their products and services to their potential
consumers. Marketers and advertisers are under tremendous pressure of accountability while
designing a promotional campaign. Grabbing the attention of existing and potential customers
will not serve the purpose.

Finally, an effective advertisement is the one which results in the sales. Advertisers and
marketers are putting in every effort to win the battle of positioning in the mind of
consumers. And, an easy way out to beat the over-communicated atmosphere is to have a
celebrity endorse the brand. The celebrity is an easy route! A significant transformation
which became evident is an increase in the visibility of celebrities in the world of advertising.
Not only local but international advertisers too, are increasingly using celebrity endorsement
advertising strategies in an attempt to break the clutter and thereby enhance the equity of their
brands. This doctoral research attempts to explore the impact of celebrity endorsements on
Indian consumers.

India is a country where people love to live in dreams. They worship celebrities. Celebrities
which might be cricket stars like Sachin Tendulkar, Mahendra Singh Dhoni or Film Stars like
Shah Rukh Khan or John Abraham. They treat them as God. Marketers use this very
proposition so as to influence their target customers may be existing or potential ones. For
this, they rope in these celebrities and give them a whopping amount of money. They believe
that by doing this they can associate their products with their target customers. This is called
celebrity endorsement.

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 endorsements, a
whole
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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.

The impact of celebrity endorsements on Indian consumers was determined by testing the
proposed hypothesis. It was found that there is a significant difference in the overall impact
of endorsers' perceived credibility on male and female respondents' attitude toward the
advertisement, attitude toward the brand, and purchase intent. Further, the overall impact of
endorsers' perceived credibility on respondents' attitude toward the ad, attitude toward the
brand and, purchase intent was found significantly different across age groups i.e., teenagers
and young adults.
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CHAPTER 1. 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.

Celebrity endorsement has been established as one of the most preferred tools of advertising.
It has become a trend and perceived as a winning formula for product marketing and brand
building. It is very easy to have a celebrity for a product or brand but it is very tough to
establish a very strong association between the product and the endorser: because the objective
is to build a brand, not the celebrity.

In this modern age, people tend to ignore all commercials and advertisements while flipping
through the magazines and newspapers or viewing TV. But even then, the glamour of a
celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact
on the overall brand is of great significance. In this process, the companies hire celebrities
from a particular field to feature in its advertisement campaigns. The promotional features
and images of the product are matched with the celebrity image, which tends to persuade a
consumer to fix up his choice from a variety of brands. Although this sounds pretty simple,
the design of such campaigns and the subsequent success in achieving the desired result calls
for an in-depth understanding of the product, the brand objective, choice of a celebrity,
associating the celebrity with the brand, and a framework for measuring the effectiveness.

Companies invest large sums of money to align their brands and themselves with endorsers.
Such endorsers are seen as dynamic with both attractive and likable qualities and companies
plan that these qualities are transferred to products via marcom( marketing and
communication
) activities. Furthermore, because of their fame, celebrities serve not only to create and
maintain attention but also to achieve high recall rates for marcom( marketing and
communication ) 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.
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Here, I have focused on the impact of celebrity endorsement on the overall process of brand
building and also tried to define: how to make celebrity endorsement a win-win situation for
both the brand and the brand-endorser. "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.

Celebrities have also been in demand having succeeded in being effective by rising above the
clutter & grabbing the attention and focus of the consumer. They also succeed in creating an
aspiration in the minds of the consumer to acquire what their favourite celebrity endorses.

Celebrity endorsement if used effectively, makes the brand stand out, galvanizes brand recall
and facilitates instant awareness. To achieve this, the marketer needs to be really disciplined
in the choice of a celebrity. Hence the right use of celebrity can escalate the Unique Selling
Proposition of a brand to new heights, but a cursory orientation of a celebrity with a brand
may prove to be claustrophobic for the brand. A celebrity is a means to an end, and not an
end in himself/herself. The brand, company, celebrity, and consumer are interconnected in a
continuous network. If there is a fit relation between the celebrity and the advertised product
there will not be any obstacles in the network and the information the celebrity is sending out
will be optimal. But if there is no fit relation between the celebrity and the brand there will
not be any clear flow in the network. Furthermore, if the celebrity receives negative publicity
it serves as an obstacle in the network which affects the buying behavior of the consumer.
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1.1 CELEBRITY ENDORSEMENT: FACTORS INVOLVED

There are several factors to consider before resorting to celebrity endorsement. There is no
single formula to win in the world of marketing. A company must analyze the prospect of
endorsement from 360 degrees, prior to product promotion.

Price vs. Profit

The most important issue is that of return on investment (ROI). Companies need to perform a
cost-benefit analysis prior to endorsement. The process of gauging the effectiveness of
endorsement on the overall brand is but difficult. The companies expect to bring, in the long
run, future sales, revenues and profit from the present investments on celebrity endorsement.
Celebrity endorsement is an expensive means of brand promotion and the price burden
almost always shifts on to the consumers; if not, then it narrows the companies' profit.

Multiple Brand Endorsement vs. Multiple Celebrity Endorsement

In the advertising landscape, we find either a celebrity endorsing multiple brands or multiple
celebrities being used to endorse a single brand.

Sachin Tendulkar, for example, in 2002 endorsed 12 brands (including Pepsi, Boost, Colgate
Total, Gillette, Britannia Tiger, Fiat Palio, TVS Victor, Fiat Sienna, MRF, Adidas, Visa
Cards and Home Trade). Tripp et al, says that the endorsement of as many as four products
negatively influences the celebrity spokesperson's credibility and likeability.
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1.2 History of celebrity branding :

Through the 1760s, royal endorsements were used as a type of celebrity branding to promote products.

The first product that used celebrity endorsements was in the 1760s, where Josiah Wedgwood and
Sons, producers of pottery and chinaware, used royal endorsements as a marketing device to show value
in the company and promote others their product ("Celebrity Endorsement – Throughout the Ages,
"2004).

In 1875–1900s trade cards were introduced, this is where there would be a picture of a celebrity with a
photo of the product. Typically, these trade cards would be given to consumers with the product or
would be inserted on the packaging of the product itself, which would feature celebrities such as actors
or sport stars.

Cigarette brands became hugely involved in celebrity branding, 'Kodas' cigarettes introduced baseball
player cards into the packets of cigarettes as part of a customer loyalty scheme. This created a demand
for consumers to buy more cigarettes so they could gain all the cards of all baseball players due to
celebrity endorsement of the cards.

In the early 1930s the major trending celebrity endorsers were athletes, then by 1945 the trend changed
and movie stars were the next big celebrity endorsers. In 1965, colour television was introduced to the
marketing and there was a popular rising demand which was occurring, this in when television
personalities and entertainers became a celebrity endorsement for communicating services and products.

Companies and firms in the 1980s then decided to start making products around celebrities ("Celebrity
Endorsement – Throughout the Ages," 2004). An example of this is in 1984 when the
company Nike noticed a talented and young basketball player called Michael Jordan. Michael Jordan
then became Nike's celebrity brand ambassador for their sports industry. Nike extremely relied on
Michael Jordan's social status to make the brand internationally well known.

Since companies started making products around celebrities and the celebrity becoming the brand
ambassador for the company, athletes and entertainment celebrity's then started to negotiate salaries and
pay outs for them representing the company due to the competition of other firms. Due to salaries
always increasing because of the demands of the celebrity, usually, sales for the company that the
celebrity was promoting would increase
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Furthermore, in the late 1900s, celebrity endorsements came to another level, instead of images of them
promoting a brand, companies started to hold press conferences with the celebrity announcing special
deals, this meant celebrities had now become a spokesman for the firm. As more companies got their
celebrity ambassador to hold press conferences and announce special deals, sales for the brands were
increasing immensely and more deals were introduced to the market.

In the year of the 2000s, studies have shown that by having a celebrity ambassador for a firm has
improved sales enormously; such as Nike whom signed Tiger Woods in 1996 saw a $50million increase
in sales on golf balls by 2002 ("Celebrity Endorsement – Throughout the Ages, "2004).
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Also, the use of multiple celebrities to endorse a brand may hinder the meaning transfer
process, and thus, lead to confusion among the consumers.
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1.3 Kinds of Celebrity Endorsement - Their Impact on Brands

(1) Product Placements

While the movie 'Taal' brandished Coke bottles.

(2) Celebrities Co-Owning the Brand

Madhuri Dixit and Emami 'Beauty secrets by Madhuri' range

(3) Fictional Heroes

Shaktimaan has sold Parle-G, and Popeye single-handedly revived the consumption of spinach
in the US.

(4) No More but Still Celebrities

Campaigns created around Dhirubhai Ambani was the 'Kar lo Duniya muthimein' campaign
for Reliance.

(5) Page 3 Celebrities

(6) Celebrities for a Cause

The Pulse Polio campaign being coordinated by UNICEF for the Ministry of Health and
Family Welfare had Amitabh Bachchan and Sachin Tendulkar

(7) Spoofing

Mirinda spoofed the Hutch puppy (a celebrity in its own right).

(8) Mascots

Ronald McDonald, the Amul Girl

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(9) Products endorsed according to gender

John Abraham lends his rugged image to Yamaha bikes while Preity Zinta lends her cute
dimples to peddle Scooty.

(10) Celebrities Lending their Name to Brands

Shahrukh Khan, Amitabh Bachchan, and Rekha have perfumes named after them

(11) Company Owners Being Celebrities

Vijay Mallya and Richard Branson who are walking talking celebrities and endorse their own
brands through their extravagance, their flamboyant lifestyle
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1.4 CELEBRITY ENDORSEMENTS : MAKE OR BREAK

1. Shahrukh Khan – Mayur Suiting’s (Positive Impact)

"Shahrukh Khan" is how this product came to be known Shahrukh brought to the product his
persona of high-class lifestyle, giving the consumer the belief to aspire and good clothing a
sure way to reflect the aspiration. The ad shows a great fit between what the product stands
for, what the consumer expects and what the celebrity means to the consumer, hence
explaining the strong impact in sales and brand recall.

2. Dharmendra - Rajdoot Motorcycles (Positive Impact)

This strong man from yester years, still resonates as the only brand ambassador, who
managed to sell a motorcycle in each and every corner of India in the 80's. Dharmendra's
image of being a brawny man, hailing from the rustic roots of India, gave Rajdoot
motorcycles the perfect brand ambassador it was looking for. He not only gave to the product
a sturdy and robust image, but also brought to the product trust and honesty which it was
trying to build in its first-time buyers.

3. Amitabh Bachchan (Cluttered Identity)

Our framework argues that exclusivity makes the product-celebrity association stronger
thereby making the product resonates with the qualities of the celebrity. In cases where the
celebrity endorses multiple products, he dilutes his equity.

There's no better example in the Indian industry than Amitabh Bachchan who endorses ICICI
Bank, Cadbury, Versa, Dabur, Rin, Parker Pens, Pepsi, Nerolac Paints and much more. In
each of the cases, the ads use some or the other attributes of Amitabh to endorse the product,
but makes no strong link in the minds of the consumer. Hence, in the end, the consumer is
lost and has difficulty identifying, what does Amitabh really stand for?
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4.Rani Mukherjee - Hero Cycles (Negative Impact)

Rani Mukherjee endorsing a cycle makes a case where the celebrity is used only for her
popularity without looking for a Brand-celebrity fit. Cycles in India are generally used by
men and the target segment belongs to the low-income group. By using Rani, the consumers
could not be assured of the product's qualities and could not relate the product to the
ambassador. Hence, the consumers were not motivated towards the product and the ad was
called back, thereby emphasizing the need for a brand-celebrity fit. After that, Irfan Pathan
was signed to endorse for the product which increased the sales.

5. Vodafone – Zoo Zoo (Created Spokesperson)

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Hutch managed to grab the attention of the consumers, by not using a celebrity. The zoo zoo campaign came
across as a fresh initiative at endorsing a product. The zoo zoo has had a very high brand recall as they represent
only Vodafone and have been created by the company according to the needs of the product and the message. It
communicates to the consumer about all the offers and packages the company offers. The protagonist says all of
the above and creates a strong bond with the consumer

6.Mohammad Azharuddin - Britannia (Change of the Celebrity Image)

Mohammad Azharuddin, at the peak of his career as a brand ambassador for an assortment of
products. But the match-fixing case besmirched his image and all of the products started
disassociating their endorsements from him. Thus, a product is sold on basis of the qualities of
the endorser and with a change in the inherent value system of the celebrity; the bond with the
consumer is lost.

7.Narain Karthikeyan – Jordan / Formula 1 Racing (Entering International Markets)

A celebrity's endorsement through various cultural and social roadblocks is one of the critical
applications of our model; Narain is a case in point. The popularity of F1 as a sport in India
owes its genesis to use of Narain as a brand ambassador of the sport. His image and persona
has been used by the sport and the Jordan team to create brand awareness in India

8.Sachin Tendulkar - Fiat Palio (Financial Viability)

Sachin Tendulkar was paid a huge sum of Rs. 12 Crore to endorse Fiat Palio, even though
Tendulkar as a brand could command such an exorbitant amount. It's for the company to
evaluate if the returns generated by the endorsement would commensurate the initial spend.
In this case, due to excessive spending and failure of the product to take-off, the
advertisements had to be withdrawn.
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1.6 Celebrity Reach:

Celebrity branding or celebrity endorsement of a company's product is effective largely because

celebrities have the potential to reach a large number of prospective consumers.

Reach can be loosely defined as the number of people that have seen and/or heard the brand's intended
message at least once (Belch & Belch, 2012).  If a brand or company decides to use celebrity branding
to market their product, it is highly probable that they are deciding to attempt to reach the largest
assortment of potential consumers possible, rather than reaching a small number of consumers but more
frequently – which is described as frequency (Belch & Belch, 2012).

An example of the usefulness of a celebrity's reach can be shown in statistics taken from telegraph.co.uk
regarding the world's most followed Instagram celebrities. The most followed Instagram celebrity
is Cristiano Ronaldo, with each post that he makes being viewed by all or most of his 192 million
followers. Selena Gomez is 2nd, with 164 million followers, and Ariana Grande is 3rd with 116 million
followers. A direct brand endorsement from one of these celebrities would be significant were they to
post a picture with the company's product encouraging their followers to go out and purchase it, and this
is on Instagram alone. Imagine the effect of a celebrity posting an endorsement across all of their social
media, (Facebook, Instagram, Twitter, Snap chat, etc.). The reach that an A-list celebrity has possesses
the ability to reach millions of potential consumers, and as a result can be an incredibly effective way to
boost sales, or at the very least get a brand's name out there in a wider audience than before.
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1.7 Brand Image:

There is a high focus placed upon the importance of choosing a reliable, trustworthy celebrity to
endorse or sponsor a company's product, while still balancing the celebrity's attractiveness, power, and
similarity of the celebrity's public image with the company's overall current, or intended brand image.

Brand image can be described as "the set of beliefs held about a particular brand" (Kotler,
1988). Research carried out by Keller & Aaker in 1992 suggests that a brand with better positive brand
image and attitudes is more likely to achieve heightened development within their relevant market.
(Keller & Aaker, 1992). Therefore, choosing a celebrity who is going to beneficially contribute to the
existing or intended image and attitudes of the brand is vital to ensure the success of the celebrity
branding.
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1.10 Advantages:

 Celebrity endorsements can build brand equity. An example of this is Nike, prior to Michael
Jordan Nike mostly sponsored tennis and track athletes and decided to expand their market, which
increased sales to become a multibillion-dollar company.
 Celebrity endorsement is used as an advertising strategy, by using celebrity status and image, to
promote a brand's recognition, recall, and differentiation.
 It helps customers to remember advertisements when seeing a celebrity that has already got a
brand of their own, it will bring customers to try or purchase the product.
 It also helps the brand to stand out over a brand that does not use celebrity branding.

Pros

 Increased attention to the product and the brand

 Polishing the image of the brand
 Introduction of the brand to new and wider market
 Repositioning of the brand
 Guarantee of successful advertising of the brand

Advantages for sales and advertising:

The advantages of celebrity branding are having a product that the endorser likes and utilizes and
incorporates into their lifestyle as well as having some knowledge about the product. This would be an
advantage in advertising the product because the endorser would be more passionate about the product
and promote the product in a believable way that consumers would be persuaded by (Halonen-Knight
and Hurmerinta, 2010).

Celebrity endorsements have considerable influence in sales when promoting a product and brand, as
they can supply information, which is focused on the benefits and remarkable features of the product in
an unbiased and standard form, which has a great effect on the business revenue (Popescu, G.H, 2014).
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An advantage of celebrity branding is by using social networks, as it is a less cost-effective scheme of

assembling and distributing information so that consumers become more aware of the product before
purchasing it, as well as having great online consumer reviews will increase sales due to great
advertisement is done by the company/brand and the celebrity promoting the product.

The most effective advertisements are those that are supported by celebrity endorsements. These
celebrity endorsements result in beneficial results for the product or brand.

Celebrities in advertising make the advertisement more noticeable to consumers, they stand out from
the media clutter and are therefore a good basis of capturing and retaining consumer attention (Muda et
al., 2012). Studies have shown that using celebrities in advertising increases the message's
persuasiveness which results in consumers having a better recall and recognition for the product or
brand (Zhou & Whitla, 2013). Muda et al. (2014) state that having celebrities in advertisements
positively influences ad effectiveness measures (i.e. consumer attitudes towards the brand, consumer
attitudes towards the ad, and purchase intentions).

Celebrities are perceived to hold qualities such as attractiveness, expertise, trustworthiness and
likeability, which advertiser's hope will be transferred to the brand or product consequently creating
positive images for that product or brand (Muda et al., 2012). Many consumers idolise celebrities and
strive to imitate their lives with the clothes they wear and products they consume (Aureliano-Silva et
al., 2015). Celebrities create meaning for the consumer through their interactions with products in
advertising (Muda et al., 2012; Aureliano-Silva et al., 2015).
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1.11 Disadvantages:

Due to the high-profile lives of celebrities that are constantly being reviewed and scrutinized by the
media, there are risks of using celebrities in advertising (Jin & Phua, 2014).The term eclipsing (also
referred to as overshadowing) is used to describe the instance where a celebrity in an advertisement
overshadows the product being advertised by occupying more time or space than the product being
advertised, this is a negative for the advertiser as the product is not the main focus for the consumers
(Ilicic & Webster, 2014). It is crucial for the effectiveness of the advertisement to ensure that the
product is the focus of attention (Keel & Nataraajan, 2012). Overexposure refers to the negative effect
that is a result of when a celebrity endorses multiple products of a similar type at one time (Muda et al.,
2012). Consumers can become more sceptical of the celebrity's motives to endorse products and
therefore may perceive the celebrity to be less credible when endorsing multiple products (Ilicic &
Webster, 2011).

Celebrity endorsements do not guarantee long-term favourable effects, due to the risk to advertisers that
the celebrity endorser may get caught up in a scandal, creating negative perceptions to consumers (Zhou
& Whitla, 2013). Common celebrity scandals involve alcohol, drug, sex, or crime related events
(Mudaet al., 2012). These scandals can have a negative effect on the image of the brand, as consumers'
negative perceptions of the celebrity endorser may be transferred to the brand, therefore negatively
influencing sales of the brand's products (Zhou & Whitla, 2013). One of the largest profile celebrity
endorsement scandals of recent history was the infidelity scandal of Tiger Woods in 2009, at the time,
Tiger Woods was a brand ambassador for Nike golf apparel and footwear. It has been estimated that
Nike lost approximately US$5–12billion due to this scandal (Zhou & Whitla, 2013).

Consumers' views of the celebrity endorser may change, due to changes in the celebrity's image (Muda
et al., 2012). Changes in image may be a result of injury, physical appearance, change in marital status,
or a decline in professional visibility and this can result in the celebrity endorser no longer suiting the
product or brand being endorsed (Muda et al., 2012; Keel & Nataraajan, 2012

 Brand images can change if celebrities cause themselves a bad name or reputation.
 Celebrities can be overexposed. An example of this is Tiger Woods when he worked for so
many companies his credibility started to suffer.
 Celebrities start to overshadow brands. Customers will start to focus on the celebrity rather than
the product.
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Cons

Using celebrity endorsement has its risks as well as its benefits. Some of the opportunities provided by
the endorsement may have two sides to it, making it a potential risk as well.

 Celebrity may overshadow the product: There may be a chance of the celebrity getting more
attention than the product being endorsed, which may lead to consumers remembering only the
celebrity than the product.
 Credibility of Celebrity endorsements: Consumers are now more aware of how advertising and
celebrity endorsements work, which brings them to question celebrity credibility within
advertisements as more consumers are starting to voice their opinions asking if the brand or the
product should be trusted based on the celebrity that is being paid to endorse the product.
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1.12 Risk:

When a celebrity is promoting a brand there can be risks involved, where there is a miscommunication
between the consumer and the representation of the product. In some cases, there is no connection
between the product and the celebrity, which can become an effective or a defective result due to the
position and relevance of the product. When Celebrity Branding does not work out for a firm, the
celebrity can be seen as a scheme to promote the person as a marketing instrument. Ideally, some
consumers believe that companies who use celebrity endorsers, as a marketing strategy to promote a
product should choose an endorser who utilizes and enjoys using the product. Therefore, ethically they
are trusting the brand and showing potential consumers the effects of the product and making the
advertisement more believable. Rather than a celebrity endorser who is promoting the brand just
because of their social status and there is no relevance between the product and the celebrity (Popescu,
G.H, 2014).

Companies who use celebrity endorsers are at a risk financially, whether they are choosing the right
celebrity endorser to represent their brand and return the favor with an increase in sales, or for the brand
to become known on a wider scale. Firms are also taking risks in hoping that their chosen celebrity
endorser will portray their brand in the correct way, because any small or big mistake can cost the
company in a negative outcome, especially due to the celebrity's social status it can affect a huge
audience. This could be due to miscommunication between the firm and the endorser advertising the
product or service (Halonen-Knight and Hurmerinta, 2010).

Celebrity endorsement usually impacts the feelings of the customers and the position they have
concerning the advertisement and the brands, thus enhancing the purchase intentions and the sales
(Bondrea and $tefanescu-Mihäilä, 2004). Therefore, if there is a communication error, it can defeat the
sale as well as portray the brand negatively. Financially, firms can invest up to millions of dollars when
choosing a celebrity to promote their brand; therefore they do not wish for an undesirable impact.
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1.13 Risks For Companies:

Although for a business, hiring a celebrity to endorse their brand would seem to be an effective and
profitable way of expanding the growth of their brand – there is a severe risk with choosing this type of
marketing strategy which could lead to damaging impacts on the business therefore choosing this
strategy could be an beneficial or a huge disadvantage.

When observing the communication process, the three main factors when communicating information
are through the sender, channel and receiver but then considering the noise surrounding it – noise being
anything that can interfere with the intended message sent from the source to the receiver. (Belch, G. E.,
& Belch, M. A. (2012).) A company when choosing the celebrity to represent their brand, they have to
carefully examine the reputation and image of this person and whether it coincides and complements
with their product and purpose. A business needs to have confidence in this celebrity to remain acting a
suitable way which does not diminish the reputation of the brand otherwise there could be a definite
negative impact on the way a consumer interprets a message from the brand.

For example, in recent news the global Tennis star Maria Sharapova who has been a role model and
highest paid female athlete ("Maria Sharapova: Is star's brand damaged goods? – CNN.com," 2016)] for
the past 11 years since she was 17 was caught in a scandal after she failed a major drugs test.
Sharapova, endorsing some of the biggest and most successful organisations like Nike, Poshe and Evian
– was immediately dropped by these businesses as soon as word was out about the drug failure as it was
evident that this would be harmful to the companies' reputation and would leave consumers with a
different and undesired view of their brand. It is shown that even the most seemingly reliable and
trustworthy celebrities can slip up and cause brand image and reputation to be put on the line.

The news of controversy surrounding a celebrity would be a definite source of noise and it alters the
message a brand is trying to convey. Consumers would already have specific connotations and personal
views on the celebrity after negative news about them has surfaced, which would consequently directly
affect that same consumer's image of the company. This is known as the term 'Source-related Thoughts'
where the source significantly sways the thoughts of the receiver. It has been said that "If consumers
find a particular spokesman annoying or untrustworthy, they are less likely to accept what this source
has to say...Receivers who react favourably to the source generate favourable thoughts, or source
bolsters." (Belch, G. E., & Belch, M. A. (2012). This would mean that if a company chose to market
their brand using a celebrity they would have to make sure their target market would appeal to this
person as they develop feelings for the consumer regardless of the brand their product.
 28

Therefore, there would not use in using a youthful teenaged movie star to endorse an anti-wrinkle
cream or a very misogynistic politician to promote a campaign to women – people would not be in
favour to trust or like the business because they dislike or do not relate with the celebrity spokesman
representing it. Choosing a celebrity in which a business' target market will appeal to will convey and
carry on the message effectively.

The entire aim of marketing and advertising is to draw attention to your business and persuade or
manipulate the target market into consuming goods or services. The more attention brought to the
company, the larger opportunities gained to communicate with consumers. With using celebrity
branding, there is an advantage as because this person already has a large audience and following,
attention can be drawn easily. It's how the business uses this attention decides whether the outcome is
beneficial or negative to the brand because there are dear impacts if an error is made due to the many
people watching and making judgments. The theory of market senses/sensory marketing is where a
marketer relates to an audience on an emotional level. With taking advantage of the already built
attention, the right celebrity branding whether the brand is looking for a celebrity with sex appeal or a
reputation of charity or generosity, these can develop an emotional response and connection from
consumers which can benefit the business greatly. Though of course if celebrities possess undesired
traits, this can generate a negative emotional response which would turn consumers away from a brand.
(Heath, R., Brandt, D., & Nairn, A. (2006).)

Choosing to use the celebrity branding strategy to connect to consumers is either win or lose. With the
future being so unexpected, using a celebrity to endorse a product and business could bring huge
positives or could have immensely damaging effects but there is no way of predicting which outcome
the business will get. By choosing the perceived most trustworthy and suitable celebrity relative to the
business would be the safest bet to gain success and prevent reputation damage. Businesses need to
outweigh the pros and cons and decide whether they are prepared to take the risk.
 29

1.14 Paid Endorsement:

Paid endorsement or overt endorsement involves a contract between the brand and the celebrity to
represent the brand in an advertising campaign. The contract may involve some restraints on the
celebrity's act; such as cutting their hair or endorsing a direct competitor. Paid endorsements involve a
contract between the brand and the celebrity to represent the brand. The celebrity will generally gain a
sum of money for endorsing the brand but also have a few guidelines to follow Some methods of paid
endorsements are:

 Advertisements

Advertisements can include television advertisements, radio, billboards, or magazine posters showing
the celebrity in the brands advertisement to help increase the products image. The celebrity could be
seen using the product, or the main character, as being seen in the advertisement can help viewers
associate them with the brand. An example of Celebrity Branding in an advertisement is George
Clooney in Nespressos 'What else' advertising campaign. Celebrities used for voice-overs or radio
advertisements generally have a distinct voice that viewers will recognize like Morgan Freeman's voice.

 PR Events

Brands use events for the celebrity to be seen at, as it helps show their support or association with the
brand. Having photos taken of the celebrities at the event makes the viewer’s associate them with them
supporting the brand, making the viewer associate a positive connection. This can be done through
celebrities hosting the brands event, like Victoria Secret Show, using celebrities to perform on the
catwalk.

 Social Media

Celebrities promote the brand using social media using social media, like Instagram, Facebook or Snap
chat. This helps the brand target the celebrities' followers to create an association between the two.

Social media sites, including Twitter, Instagram and Facebook, are a popular non-traditional medium
for celebrities endorsing products and brands (Jin & Phua, 2014. The advantages of using celebrity
endorsements on social media is the large reach that celebrities have. This means that large audiences
are exposed to the influence of the celebrity to encourage positive purchasing behaviours towards the
brand (Jin & Phua, 2014). In 2013, the most followed accounts on Twitter with more than 30million
followers each were Justin Bieber, Lady Gaga and Katy Perry (Jin & Phua, 2014). Jin and Phua, (2014)
state that the more followers someone has the greater perceived social influence they hold.
 30

 As well as having reach to their followers, any post may be shared by their followers to extend that
reach to further audiences (Jin & Phua, 2014). Another benefit of using social media for celebrity
endorsements is the interactive nature of this non-traditional media, (Cunningham & Bright, 2012) this
helps to build the relationship between the celebrity endorser, consumer and the brand.
 31

1.15 Unpaid endorsement:

Unpaid endorsement or covert endorsement occurs when a celebrity wears or uses the product of a
certain brand because they like it. Brands can send free samples to celebrities to try out their product,
and review or use on social media to give their opinion on the product. Lots of beauty companies use
this to get YouTube reviewers to review their product so they get free advertising. Sometimes a
celebrity is given merchandise by a brand to use or wear in public where there is maximum exposure,
such as an event. This is called "gifting" and the celebrity might endorse the brand by taking a photo of
the gift and putting it on their social media account for their fans and followers to see. Whilst the
"gifting" may appear to be unpaid, costs are associated with this endorsement, as the brand does not
have any contract in place with the celebrity and will have little or no protection against what happens
during the unpaid endorsement. Celebrities are seen wearing or using the product due to liking it
themselves. They could be seen wearing the product in public or in photos on social media. This is 'free
advertising' for the brand. A disadvantage of this is the brand has no control over what message or
image the celebrity associated with the brand is portraying.
 32

1.16 THE IMPACT

As defined earlier, the impact would be both short term and long term, but here the focus
would be more on the long-term implications of the brand. Measurement of this would be
challenging and data would be difficult to obtain. The parameters on which impact could be
measured would be on a comparative basis of the brand before and after the celebrity began
endorsing the brand. Sales/revenue, market share, brand recall, level of repurchase, brand
loyalty, trust, image and perception of the brand per say.

In this trend of creative advertising, we see the usage of celebrities of all walks of life -
particularly actors, film stars, models, sports persons, and the whole gamut. But the usage can
always backfire if the choice of the star is completely contradictory in nature to the brand.
Believability and association of brand to celebrity is important.

Selection of celebrities can be done while they are at their peak or when they are destined for
greatness in the near future. Again a risk that may go eitr way. What is important at some
level is the value that a celebrity adds to a particular brand. The advertiser tries his best to
make the celebrity and brand as analogous as possible. The celebrity endorser is seen to score
quite well on dimensions such as trustworthiness, believability, persuasiveness, and
likeability when tested for reaction from people. This is important to a marketer as if he can
get a celebrity to make the masses follow, believe or listen to him, he has been successful.

The basis for the effectiveness of celebrity-endorsed advertising can be linked to this process
of identification and internalization of the desired behavior. Price of fame may be high for the
celebrity endorsed brands but they have both what the markets and the everyday common
man want - attention, power and star sizzle. Celebrities are people who enjoy the public
recognition of a large group of people. Celebrities may convey a broad range of meanings,
involving demographic categories (e.g., age, gender and status), personality and lifestyle
types. For instance, people adore Sachin Tendulkar because he represents a middle-class
Maharashtrian boy who made it big with sheer hard work. Likewise, Amitabh Bachchan for
most is an icon of style, trust, and dependability.
 33

BRAND, CELEBRITIES & CONSUMER

Factors Impacting a Brand while being viewed by a Consumer in Media The model above
shows the various factors that affect a celebrity endorsed brand while viewed by a consumer
in the media (both TV and print). The central idea being the impact on the brand. The three
major parts of a brand being shown are: -

The Product
Advertisement
The celebrity endorsing it

It is important is to study the relationship between these factors and how they together act for
or against the brand.

The product is important, of course, it may fulfil a need, want or a desire. Quality is
quintessential and, hence, nowadays it is understood the product is of the highest quality. So
what next? The advertisement is important as a good product could see an early exit if the
advertisement is handled badly, and otherwise, a mediocre product which is tastefully
handled goes a long way. Lastly, the celebrity in the advertisement, recall, trust, familiarity is
some of the reasons that they are used. Now consider the interactions of these individual
factors. The best of superstars can be doing the advertisement but if the product is far from
the image the star has, the whole advertisement is a waste. Imagine an Amitabh doing an
advertisement for an ad for youth apparel.
 34

Well, exceptions can be there but then again it depends on the way it is done. Believability is
of vital importance, the TVS Victor advertisement shows us the bike is compared to the bat of
Sachin and the strokes he plays.

The relationship between a product and its advertisement again can be either dependent or
none. In that case, a shock value makes people remember the brand better and, hence, a
possible long-term loyalty.

Selection of Celebrity

Anyone who is famous may be the right celebrity. However, the appropriateness of the
celebrity largely depends on the product or service. Most advertisers insist that their celebrity
spokespeople have charisma and current popularity. That is why we see more movie and
television stars, athletes, real-life heroes, and musicians acting as brand ambassadors in the
market.
 35

The choice of celebrity is critical for the success of the advertisement. The celebrity should
have high recognition, high positive affect, and the image of the celebrity must match with
that of the product. For this reason, famous sportsmen are used to endorsing sporting goods:
Michael Jordan & Nike, Tiger Woods and Nike, David Beckham endorses Adidas, etc. While
it is totally inappropriate for movie stars to endorse a sports products.

Celebrity endorsements must be used judiciously. If the celebrity is too famous or too
popular, then the celebrity will overpower the product - i.e., people will remember seeing
only the celebrity and forget the product. This happened when Britney Spears came in a Pepsi
Commercial in 2001. Britney Spears was at the height of her popularity - viewers saw the
advertisement to see Britney Spears and forgot all about Pepsi.

The cost-benefit analysis of using a celebrity in marketing communications is a bit tricky. But
the general belief is that using celebrity is a lot cheaper in building a brand. For example,
S.Kumar's built the brand "Reed & Taylor's" as a premier suiting material by having Amitabh
Bachchan in its advertisements. To achieve the same without a celebrity would have taken
longer time & more money. In a span of fewer than two years after launch, the brand Reed &
Taylor's" has become the second largest seller of cloth for men's suits in India.

Selection of the right celebrity is crucial. The needs of the brand—rather than the fame of the
celebrity—should be the primary criteria when selecting a celebrity spokesperson. The
celebrity's physical attractiveness, values, and credibility also matter tremendously. However,
it would be suicidal to forget about the target audience.
 36

CHAPTER 2. RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem, it not only
takes the research methods but also consider the logic behind the methods. The study of
Research Methodology for developing the project gives us the necessary training in gathering
materials and arranging them, participation in the field work when required, and also
provides training in techniques for the collection of data appropriate to particular problems.
Celebrity Endorsement and It’s Influence on Consumer Behaviour, revealed that there is a
need to study the said subject in Indian Context. It was also revealed that the impact of source
credibility and physical attraction on purchase intentions, attitude towards the advertisement
and brand play an important role in selecting a celebrity to endorse a brand. This study has
explored these aspects in the context of Indian Market. In this Chapter, the methodology
associated with each of the research objectives has been discussed in detail covering areas
like questionnaire development, validity and reliability, respondents of the study, increasing
response - quality and quantity, data analysis and limitations.

Research Design used in the project

The Descriptive Studies is used in this project due to the fact that the descriptive studies
attempt to obtain a complete and accurate description of a situation, that is it covers the all
phases required and provides the ways to collect the data from various sources of information
(sample design), ensure minimum bias in the collection of data, hold costs to a minimum, and
reduces the errors in interpreting the data collected.
 37

2.1 THE SCOPE OF THE STUDY

• The scope of the study is to gain first hand knowledge about how consumers make their buying
decision towards celebrity advertisement. To find whether products endorsed by celebrities influence
purchase intention. To find the effect on consumer by companies who advertise the product with the
help of celebrities.
 38

2.2 OBJECTIVE OF THE STUDY

Objectives:

• To understand consumer perception to the celebrities in advertisements.

• To understand the effectiveness of celebrity endorsement.

• To identify drawbacks associated with celebrity endorsement.

• To study the impact of endorsement on the attitude towards the advertisement and attitude towards
the brand.

• To find whether products endorsed by celebrities influence purchase intention.

 39

2.3 Significance:

Today, consumers are spoilt for choice and sometimes it can be hard to distinguish one brand from
another. The influence a celebrity can have on generating brand awareness plays a pivotal role in
ensuring the success of a campaign. Here is how a celebrity endorsement could increase your brand
recognition, ensuring your product or service successfully stands out from the crowd.

Celebrity Culture:

Social media stardom is on the rise; many celebrities have strongly established themselves as a valuable
brand, just through the simple use of platforms such as Snapchat or Instagram. In today’s completely
connected world, it is hard for us to not be continually made aware of what they are doing in their
everyday lives – and fans take note of this. You can harness this power of celebrities on social media, to
create an effective bond with your target market.

Targeting New Customers:

A great way of reaching new customers can be by asking a celebrity to either become your brand
ambassador or promote your product. You may find you already have an established customer base, but
you are struggling to expand into new markets. If you utilise a celebrity for your promotion that attracts
a different demographic, it could open up a new market for the brand, that was otherwise hard to attain.

Establish the product need:

Establishing a need for a product or a product category is the necessary first step. This is more
important in the new-to-world category of products. In the Indian context, consider the
advertisement for Polio Immunization drive - the TV advertisement featured Amitabh
Bachchan telling that immunization is a must for every child - while people suffering from
polio are shown in the background along with healthy kids. This advertisement used a
celebrity to create the need for polio immunization. Another good example is Toyota's
advertisement of Innova in India. The TV advertisement prominently shows Amir Khan
playing different roles while traveling in an Innova. The different roles - establish the need for
such a big car in India. (Note that Indian car market is dominated by small cars - which can
seat only four adults, Toyota wanted to establish the need for an 8 seater car in India)
 40

Create Brand Awareness:

Once the need for a product is established, customers must be able to associate the brand with
the product category. For example, iPod is strongly associated with portable MP3 players,
Nike with sports shoes etc. A classic example of this is Nike's use of Michael Jordan
advertising for Nike. This advertisement instantly created a strong association of Nike with
basketball shoes.

Set customer expectations:

Brand value comes from the customer's experience with the product. If the product meets or
beats his expectations, then a positive brand image is created, else a negative brand image is
created. Therefore it is essential to set the customer expectations accordingly.This is most
common in established consumer products - Beauty products, household cleaning products,
food products etc.

Create a purchase intention:

These are marketing promotion advertisements - Buy one, get one free, or get additional
discounts if you buy within a particular date etc.. The sole purpose of such communication
messages is to encourage customers to buy immediately or within a short period after seeing
Use of celebrity endorsements to create a purchase intention has been very limited. This is
mainly because such advertisements adversely affect the personal brand value of the celebrity.
Being associated with a discount deal is not a favorable image for the celebrity and the
customer.
 41

2.4 DATA COLLECTION METHOD :

Methods of data collection are the way through which the data is collected for the research
purposes. While deciding on the method of data collection to be used for the study, the
researcher should keep in mind two types of data viz., primary and secondary. The researcher
would have to decide sort of data he would to select for his study and accordingly he will
have to select one or the other method of data collection. The methods of collecting primary
and secondary data differ since primary data are to be originally collected, while in case of
secondary data the nature of data collection work is merely that of compilation.

For data collection, we will develop a well-defined questionnaire as a research instrument

consisting questions aimed to measure the consumer's perception, their liking and disliking
and their views and comments about Celebrity Endorsement.

Sources of data collection

Sources of data collection state the various sources of data from where we collect the
information for the comparative analysis.

Primary Data:
Primary data are those collected specifically by, or for, the data users by different methods
such as Observation Method, Questionnaire Method, etc.

Secondary Data
Secondary data are those that have been collected by other organizations, such as government
agencies, newspapers and magazines, etc.
 42

2.5 SAMPLING DESIGN

The marketing researcher must design a sampling plan, which calls for three decisions –

a) Sampling unit - Who is to be surveyed?

b) Sample size - How many people should be surveyed?

c) Sampling Procedure - How should the respondents be

chosen?

SAMPLING PROCESS & SIZE

The sample size selected for the study was 113. A stratified sampling technique was used.

Research being exploratory in nature, a simple random & convenient sampling was
taken into consideration.
 43

CHAPTER 3. LITERATURE REVIEW

An attempt has been made to pursue the literature of earlier studies. A few studies have been conducted
in the field of brand celebrities and celebrity endorsement. Consumer behaviour is the important aspect
of every producer and marketer of products. For the purpose of review, some studies conducted on
celebrity endorsement are studied. The methodology and findings of these research works had been
carefully studied and analyzed. Useful hints were drawn from these studies which helped in framing the
present research work in a proper perspective. The gist of some of the relevant research studies and
research papers on celebrity endorsement are presented in this chapter.

1) Hershey, Santeramo and Linda Friedman (1979) , in their study examined the attributes
which are correlating with the trustworthiness of the celebrity. Two studies were conducted with
different population and types of celebrities. In the first study, the sample size of 110 undergraduate
marketing students were asked to rate 33 celebrities by considering six attributes such as awareness,
trust, likeableness, similarity, lifestyle and personal attractiveness. In the second study, sample sizes of
75 members under one group were asked to rate 20 celebrities with the same. It was found that among
the various types, only three types of endorsement were widely used in celebrity endorsements.
Celebrity endorsements were generally attractive and likeable by the media personalities. It was
concluded that celebrity was more effective in the promotion of the products.

2) Robert Swerdlow (1984) in his study entitled “The Effectiveness of Celebrity Advertisement”
revealed that the effectiveness of celebrity advertisement by celebrity and category of products with two
components i.e. consumables. It was found Cognitive recall and consumer purchasing behaviour having
a sample of 393 respondents. Celebrities were grouped into product and were classified into durable,
semi-durable and that the percentage of perfectness of celebrity products were associated. Celebrities‟
credibility expressed in terms of trust worthiness and expertness appeared to have little importance in
the evaluation of a product.
 44

3) Kahle, Lynn and Mhomer (1985) , in their study on “Physical attractiveness of Celebrity
Endorser: A Social Adoption Perspective” have explained the assured social adaptation perspective with
the sample of 20 undergraduate students to test the effect of the celebrity source in advertisements on
recall recognition attitude and purchases intention, they were attempted to replicate petty et al‟s 1983
study of the source effectiveness. Unlike petty al., the likeability and attractiveness dimensions were
different in their study. These factors manipulate the celebrity source physical attractiveness, celebrity
source likeability, consumer product involvement. Attitudes and purchases intentions are changed to
celebrity-source attractiveness but not celebrity source likeability.

4) Mc Cracken (1989) , in his study on “The Effectiveness of the Endorsement Process” suggested
that the meaning of transfer model is an attempt to explain the celebrity endorser process. According to
the model celebrity effectiveness as endorser stems from cultural meaning with which they are
endorsed. In this process there were three stages, process of meaning transfer involved the formation of
celebrity image, transfer from celebrity to the brand and finally from the brand to the consumer was
suggested. In the best of all possible worlds, the market advertising firm the symbolic properties sought
for celebrity and the meaning they made available and taking into choice, celebrity who best responses
the appropriate symbolic properties. The author has concluded that the image of the celebrity must fit or
should be congruent with the product. As the congruence is considered as the one of the major factors in
celebrity advertising effectiveness that this issue was examined from theoretical perspective using a
social cognition framework.

5) Michael A. Kamins et al. (1989) , in their study on “Two-Sided Versus One-Sided Celebrity
Endorsements: The Impact on Advertising Effectiveness and Credibility”, examine celebrity
endorsements in advertising. They used a two-sided framework in terms of the internalization and
identification processes. The two-sided execution was designed to increase viewers‟ perception towards
the advertiser credibility. Their results showed 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 intention to use the advertised service. From the analysis it was suggested that
the use of celebrity appeal in two-sided form is an effective advertising strategy.
 45

6) Jagdish Agrawal and Wagner. A. Kamakura (1995) , in their study on “The Economic
Worth of Celebrity Endorsers: An Event Study Analysis”, focused on their theories explaining how
celebrity endorsements influence consumers' attitudes and intentions. The authors assessed the impact
of celebrity endorsement contracts on the expected profitability of a firm by using event study
methodology. Their approach assumed that the announcement of a celebrity endorsement contract,
usually widely publicized in the business press, is used as information by market analysts to evaluate
the potential profitability of endorsement expenditures, thereby affecting the firm's expected return.
Announcements of 110 celebrity endorsement contracts were analyzed. Their results indicate that, on
average, the impact of these announcements on stock returns is positive and suggest that celebrity
endorsement contracts are generally viewed as a worthwhile investment in advertising.

7) Solomon Michael (2002) , in his study on “Consumer Behaviour: Buying, Having and Being”
elucidated that, to create effective messages, celebrity advertisers have to consider the attractiveness of
the spokesperson. “Source attractiveness” refers to the endorser‟s physical appearance, personality,
likeability and similarity to the receiver and the perceived social value of the source. The reason for
using celebrity as spokesperson goes back to their potential influences, when compared to other
endorser types, famous people achieve a higher degree of attention and recall. They increase awareness
of a company advertising, create positive feeling towards the brand and perceived by consumer are
more entertaining.

8) R. Mohanambal (2003) , in her study on the “Impact of Celebrity Advertisement on Consumer

Purchase Decisions” examined the objectives of the study, was the influence of the advertisement on
consumer purchase decisions and also to identify the product purchased under the influence of celebrity
endorsements. Celebrity advertising has become significant in creating awareness of product; important
point of the celebrity advertising is the connection between the endorser and the product they endorse.
By the mere presence of celebrity the product would not end up with sales, celebrities have to influence
to some extent and their endorsement was required only for certain products and also they must
influence.
 46

9) Dipayan Biswas, Abijit Biswas and Neel Das (2006) , in their study on “The Differential
Effect of Celebrity and Expect Endorsement on Consumer Risk Perceptions: The Role of Consumer
Knowledge, Perceived Congruency and Technology Orientation”. Using source model theories, it was
hypothesized that for high technology oriented products there would be consumer risk perceptions. In
addition for high technology oriented products the authors state that there was likely to be interaction
effect between endorser type and consumer knowledge on respondent risk perceptions. Such an
interaction effect was likely to be absent for products with low technology orientation. These
hypotheses were supported by the first two studies. The third study examined the process of
identification also showed that the strong effect of an expert endorser for high technology oriented
product were somewhat neutralized for certain types of perceived risks. This happens when there was a
high congruency between the celebrity endorser and product.

10) Amit Jain and Rajnikant P. Patel (2008) , in their study on “Effectiveness of Celebrity
Endorsers in Various Product Categories” tried to find suitability of celebrity endorsers for various
product type, reasons for product suitability and impact of negative information and multiple product
endorsements by celebrity endorsers. A self designed questionnaire was used for the same. For this
study most popular endorsers from the field of sports (cricket) and entertainment (film industry) were
chosen. These celebrities not only represent their respective field but also an appropriate mix of
different gender and age groups. The major findings revealed that there were strong gender and product
association between celebrity and the brand. Similarly negative information regarding celebrity
negatively affect value perception of the brand and significantly affect their purchase intentions.
However multiple endorsements were not seen as a problem by the most of the respondents. The
suggestions to marketers, advertisers, researchers, celebrities and consumers are given as an outcome of
this study to make endorsement process more fruitful to all the stakeholders.
 47

CHAPTER 4. DATA ANALYSIS:

1) Name of the respondents

2) What is your occupation?

a) Business Class

b) Service Class

c) Student

d) Others

DATA INTERPRETATION
Here the respondents are classified into their occupation. The people who are into business and service
are about 12.5% and that of students are about 65.2% and rest are others (homemaker or housewife) this
data is analyzed among 112 respondents.

Here we can see that the higher category of respondents is student we can say that the major consumers
are students.

3) What is your age?

 48

a) 18-25

b) 26-32

c) 32-39

d) More than 40

DATA INTERPRETATION:
Here the respondents are categorized according to their age and we can say that majority of respondent
are between 18yrs to 25yrs that is approx. 72.6% and the rest are from age of 26yrs to 40yrs.

And also we can interpret that company can market according to the young age group more.
 49

4) What is your gender?

a) Male

b) Female

c) Prefer not to say

d) Something you wish to be

DATA INTERPRETATION:
Here, we can understand that the ratio of male is greater by 53.1% to that of female which is 46%.

We can say that males/gents are more likely to be influenced by the celebrity advertising brands.
 50

5) What factor affects your buying behaviour towards a purchase?

a) Price

b) Opinion-leader

c) Celebrity Endorser

d) Brand name

DATA INTERPRETATION:
As we can interpretate that consumers are more likely to be influence by price towards buying
behaviour by the ratio of 73.5%. Consumers also make their purchase decision on the basis of brand
name with a ratio of 50.4%.
 51

6) Do you like to see any celebrity endorsing your brand on television?

a) Yes

b) No

c) May be

d) Not sure

DATA INTERPRETATION:
Nowadays, as we can see celebrity endorsement are more effective towards consumer and also
according to the data we can see that consumer like to see their celebrity endorse their product with the
positive ratio of yes with 42.5% and negative response by 22.1% and some consumers are unsure about
how they feel their product endorse on television with a ratio of 29.2%
 52

7)"Celebrity endorsement is an effective tool of persuasion of buying a

product" Rate this statement.
1) Strongly agree

2) Agree

3) neutral

4) Disagree

5) Strongly disagree

8)"Male endorser is more effective as compared to the female endorser."

Rate this statement.
 53

a) Strongly agree

b) Agree

c) Disagree

d) Strongly disagree
 54

9)Does a celebrity endorse a product actually uses it?

a)Yes

b) No

c)Maybe

d)not sure
 55

10)Motivation factor for buying a product

a) Brand

b) Celebrity

c) Quality

d)Price
 56

11) Celebrities makes difference to the image of the brand

1)Strongly agree
2)Agree
3)Disagree
4)strongly disagree
 57

12) celebrity in an advertisement encourages to buy the product

1)strongly agree
2)agree
3)disagree
4)strongly disagree
 58

13) celebrity endorsement can build trust in brand

1)yes
2)no
3)maybe
4)not sure
 59

14) celebrities help more to remember brand/product

1)strongly agree
2) agree
3)Disagree
4)Strongly disagree
 60

15)Celebrity holds the viewer’s attentions

1)Strongly agree
2)Agree
3)Disagree
4)Strongly disagree
 61

CHAPTER 5 :
FINDINGS,SUGGESTIONS,CONCLUSION,LIMITATIONS.

5.1 FINDINGS
Celebrity endorsement is truly a multifaceted and debatable research topic. Based on the literature
review it can be concluded that even though celebrity endorsement as a marketing communication
activity is viewed in a positive light, it’s influence over the purchase intention of the consumers are not
so effective. The purchase behaviour of college students could differ based on their life style.
Demographic attributes of the college students are expected to affect their purchase behavior, which in
turn is expected to affect their attitude towards celebrity endorsement in general. After mulling over the
analysis it was evident that all the participants were very much aware of the trend of celebrity’s
endorsing products. There appeared to be a clear demarcation between consumers, one being the
‘celebrity enthusiast’ and the product enthusiast’. The results of the study revealed that there exists
strong association between gender and price consciousness. Gender and age of the college students
attributed to the quality consciousness behavior. Age and current status of the youth affect the
importance given by them to the social values

College students’ perception of celebrity endorsement is analyzed. Many respondents opined that
presence of celebrities in the advertisement makes them to recognize and recall the brands. It is found to
create brand awareness and also help the products to have a brand image. This is in coherence with the
other studies result. The studies conducted by O’Mahony and Meenaghan (1998) affirmed that the
consumer holds positive attitude towards celebrity endorsements. The results of both the studies
concluded the celebrity endorsement has an impact on the consumers recall evaluations and attention.
Usman et al (2011) stated that celebrity endorsement has the potential of being noticed and liked by the
viewers. Friedman and Seno and Lukas (2007) stated that compared to the other genre of endorsers the
celebrities are the most effective. The study by Basil (1996) stated that attitude towards celebrity
endorser can have a direct or indirect influence on the attitude towards the brand. As a result celebrity
endorsement in general is effective in recognizing and recalling the brands.
 62

5.2 CONCLUSION:

Celebrities have always been the easiest way for a new product launch (consumer goods) and
will remain to do so in the near future on account of their mass appeal and a world full of star
stuck loyal fans. But the impact on the brand is much greater than just an advertisement
showing a celebrity.

We have seen that the correct choice of a celebrity can surely increase sales but when it
comes to long-term loyalty and impact on the brand, the effect is yet somewhat debatable. In
the end, the product must deliver for the customer, no matter who endorses the product, if the
customer does not see himself getting value from his purchase, he will not buy it. But yes,
celebrities over time can influence the loyalty and make a person friendlier to a brand. Brand
and celebrities are here to stay for a long time and in this age of slick advertising and mass
media and unthinkable budgets, celebrities are having a field day charging huge amounts and
making more money than their mainstream professions. But then do they really care about the
brand? Or is it just the money? But the bottom line, celebrity endorsements are here to stay.

With the use of the celebrity, the effect is magnified so as to allow the consumer to equate the
personality and the brand together. Hence, whenever the consumer is watching the several
images of her favorite actress alone, it conjures up multiple impressions of her sipping the
XY brand of coffee, each time. While speaking of celebrities, we should be very clear as to
who this term connotes to and the powers they carry. Fido Dido for 7-UP, the Amul Girl or
Tony the Tiger for Kellogg's Frosted Flakes is as much a celebrity as any breathing face.
They reach their target consumer, they move the product, and they carry the brand. That's
what counts. Of course, the gestation period is higher in the case of such creatives, but in the
event of a hit, the comparative risks are minimized. After all, they cannot get drunk, attract a
controversy or commit a crime, as long as the management wants. In short, they are 'safe
floaters' vis-à-vis their unpredictable human counterparts.
 63

Using a celebrity in advertising is not a simple thing and the success of this process depends
on several factors as discussed in the report. The careful selection of celebrity, matching the
target segment and brand values, should be inherently stressed upon. The advertisers can use
the Q Score, as discussed developed by a U.S. based marketing research agency, which
considers two factors - awareness and likeability while evaluating the celebrity. Another
important factor is the flexibility with which the companies can go in for hedging the risks
associated with hiring a celebrity.

They choose personalities from various fields or even appealing to various consumer
perceptions so that they can minimize the damage in cases of negative publicity due to any
celebrity mistake. The cola brands spread their endorsements across a wide 'variety' of
celebrities such that even if one falls, the others are still holding the fort.

In terms of the future, celebrity endorsements are here to stay. Their ability to cut across the
classes, caste barriers and apprehensions are simply too important to be sidelined. They have
been time-tested and delivered results repeatedly, given good hands. One could continue to
wonder if these celebrity-hawkers are worth the money and the tantrums, but in a world of
brand clutter and product muddle, celebrities seem to hit the nail on the head, more often than
not.
 64

5.3 SUGGESTIONS:

 Select appropriate approaches for advertising appeal. First, the company has to determine the
type and attributes of a product instead of immediately emphasizing consumers’ dependence on
emotions. Companies need to make good judgments on consumers’ needs and interests for a
specific product. The practical functions and benefits of a product should be presented in related
advertisements.
 Carefully select an advertising spokesperson. Companies should carefully choose and evaluate a
popular celebrity to promote their product. The costs and benefits achieved by a spokesperson
for some product should be considered so the spokesperson could create maximum effects for
the product.
 Television and advertising together present a lethal combination and has become an integral part
of modern society .It is the most convenient route to reach not only adult consumers but also the
college students. Young people are manipulated by advertisement promise that the product will
do something special for them which will transform their life. Young are more serious about the
celebrity’s sex, beauty, reliability and honesty and trust. College students buying behavior are
depending on the celebrity endorsements in compare to adult. The manufacturers should,
therefore, take care to give all the information which would facilitate the college students in
decision making process.
 65

5.4 LIMITATIONS:

The celebrity approach has a few serious risks:

1) The reputation of the celebrity may derogate after he/she has endorsed the product:
Pepsi Cola's suffered from three tarnished celebrities - Mike Tyson, Madonna, and
Michael Jackson. Since the behaviour of the celebrities reflects on the brand, celebrity
endorsers may at times become liabilities to the brands they endorse.

2) 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.
This may be termed as commoditization of celebrities, who are willing to endorse anything
for big bucks. Example, MRF was among the early sponsors of Tendulkar with its logo 53
emblazoned on his bat. But now Tendulkar endorses myriad brands and the novelty of the
Tendulkar-MRF campaign has scaled down.

3) Celebrities endorsing one brand and using another (competitor):

Sainsbury's encountered a problem with Catherina Zeta-Jones, whom the company used
for its recipe advertisements when she was caught shopping in Tesco. A similar case
happened with Britney Spears who endorsed one cola brand and was repeatedly caught
drinking another brand of cola on tape.

4) The mismatch between the celebrity and the image of the brand:

Celebrities manifest a certain persona for the audience. Each celebrity portrays a broad
range of meanings, involving a specific personality and lifestyle. Madonna, for
example, is perceived as a tough, intense and modern women associated with the lower
middle class.
5)
 66

CHAPTER 6. CASE STUDY I:

BRANDS ENDORSED BY VIRAT KOHLI

The young, handsome, self-controlled, composed cricket captain of Indian young brigade is
one of the most famous images in the Indian market. In India, cricket is religion and
cricketers are placed among the gods. ViratKohli is a brand in himself and an attractive
choice for the marketers as a brand endorser.

Virat Kohli has been successfully used in the different advertisements as a brand ambassador.
He is grabbing huge brand endorsements lately.

Recently he signed a whopping 100 Cr deal with tyre manufacturing company, MRF for
eight years. Earlier he had penned a 110 Cr deal with sports and lifestyle brand Puma.

1. PEPSICO:

Virat Kohli had endorsed with PepsiCo for a deal of $1.16 million a year which is around ₹8
Crore per year. By this deal he surpassed others like MS Dhoni, Ranbir Kapoor and Ranveer
Singh as the highest grossing celebrity. This contact expired on 30 April this year. Virat being
a fitness freak, decided not to renew his contract with the cola brand.
 67

BRAND PERSONALITY
1. The brand is vibrant, energetic.

2. Pepsi is an intelligent brand which attaches itself with fun and enjoyment.

3. It also shows its daring attitude, mischievous behavior, and outgoing nature.

4. There is nothing opaque about the product and brand.

ENDORSER'S PERSONALITY

1. Virat is a young guy with a daring personality.

2. He is intelligent yet humble and full of life.
3. He is the leader of the young team, a fun-loving young gentleman with transparent
character.

Celebrity's fit with the brand image : (5/5)

As mentioned earlier, the virtue of Virat matches with the embedded traits of the soft drink.
Either of the personalities, be it Virat or be it Pepsi's, joins as two consecutive part of a
jigsaw puzzle. So Virat is a perfect match for Pepsi's brand image

Celebrity—Target audience match: (5/5)

The young generation of India love Virat, worship the man, salute his virtue and get thrilled
to experience his presence. The young generation nowadays prefers to be like Virat if not
Sachin. So Virat is idle to the young generation of India and using Virat as a brand endorser
is a masterstroke by Pepsi
 68

Celebrity associated values: (5/5)

The value associated with Virat is very high. Virat's attitude, his transparency, maturity acted
as a magnet which attracts not only the youth but also the older generation. So Virat's
presence in an advertisement creates a positive vibe for the product in the mind of the
consumer which force them to think about the endorsed product.

Costs of acquiring the celebrity: (3/5)

The cost to use Virat as the endorser of Pepsi is very high but as a multinational company, it
is insignificant if they consider the high brand awareness they are creating through Virat.
Celebrity controversy risk: (5/5)

It is nil as Virat is known as a good boy among the celebrities. So low controversy level
increase the brand image of self as well as of Pepsi.

Celebrity popularity: (5/5)

It is already mentioned that Virat is one of the most popular persons in India. One can find a
man who might not know how our President Pratibha Patil looks like, but he must be a fan of
Virat. This popularity reduces Pepsi's half of job as an advertiser.

Celebrity physical attractiveness: (4/5)

As a sportsman, he possesses an athletic body. But in addition to that, he is manly looking

and with a macho image and a deadly smile, which makes him more attractive and appealing.
 69

Celebrity credibility: (5/5)

Celebrity is being judged that whether he has the right to appear in the advertisement and
indirectly advice the consumers what to do and what not to. Virat is captain of Indian cricket
team and not only that, he has proven his capability of performing under immense pressure
several times which is obviously created creditworthiness.

Celebrity prior endorsements: (4/5)

Prior advertisements with several companies have proven the spontaneity, acting ability and
confidence in front of the camera.

So as all the points that make an Ad popular and successful among the target audience are
above average. So there is an ample amount of chances that the ad published in the print
media, get the success.
 70

2. PUMA

PUMA is the most visible and remarkable sports brand of all time. It makes innovative
products which are making a lot of difference to consumers and athletes worldwide. As all
the persons related to sports are its target market, PUMA has been using different sports
celebrities for its promotion. It is a famous advertisement of PUMA.
 71

BRAND PERSONALITY:

1. The brand is related to sportswear.

2. PUMA attaches itself with an active & athletic image.

3. A sportsperson is incomplete without PUMA's products.

ENDORSER'S PERSONALITY:

1. Virat Kohli is a young sports personality.

2. He has a fit & healthy body as well as attitude.

He has achieved a remarkable position in cricket at a young age. Now, PUMA chose Virat for this
advertisement for following reasons…..

1. Celebrity's fit with the brand image : (5/5)

As Virat is the captain of Indian cricket team, he leads the cricket in India these days. PUMA
needed a sports personality who has a remarkable position in the sports world as well as a
different image than predecessors. So it completely matches to fulfill the need of promotion
of a brand having the specialty in sports products.

Celebrity—Target audience match: (5/5)

The target market of PUMA is sportspersons. Its product's price is also high because of high
quality. As Virat is a benchmark for new entrants in sports, so he totally matches to the
audience's dreams. They will buy PUMA products because they want to reach the level of
Virat
 72

Celebrity associated values: (5/5)

The value associated with Virat is very high because Virat image is a big sports celebrity as
well as youngest Indian cricket team's captain. If the audience thinks PUMA as Virat is, then
it shows that PUMA has as much quality as Virat has. Virat’s leading capacity reflects
PUMA leading behaviour in quality and standards.

Costs of acquiring the celebrity: (3/5)

The cost to use Virat as the endorser is very high but for a multinational company, it is
insignificant. And when the profit to the brand image of PUMA is measured because of Virat
then the cost seems very less in comparison of that profit.

Celebrity controversy risk: (5/5)

It is nil as Virat is known as a good boy among the celebrities. So low controversy level
increase the brand image of self as well as of PUMA

Celebrity popularity: (4/5)

In India, cricket is the most famous sport and it is played and watched by a big portion of the
whole population of India. As cricketers come just after religion for Indians, so it can be
easily assessed how much an Indian cricket team captain should matter to the people.
 73

Celebrity physical attractiveness: (5/5)

As a sportsman, he possesses an athlete type of physic. But in addition to that, he is manly

looking and with a macho image and a deadly smile, which makes him more attractive and
appealing.

Celebrity prior endorsements: (4/5)

Virat’s prior endorsements show the positive results of his image to the brand. He looked
confident and effective in different advertisements.

So from above analysis, we see that the brand personality matches with the image of Virat.
So people can easily relate the brand with Virat as he is a sports person and PUMA can easily
get attached to it. There is an ample amount of chances that the ad published in the print
media, get the success.
 74

3. MANYAVAR

Manyavar, the men’s ethnic wear brand, has roped in Indian cricket icon Virat Kohli as its
brand ambassador for 2 years. Kohli will feature in all the print and electronic media
campaigns of the company as part of the deal. One of the biggest names in Indian sports
today, Kohli, 28, is the captain of the Indian test team.
 75

Ajay Modi, director at Manyavar said, “We are delighted to have Virat as the ambassador for
our brand Manyavar. He is a role model for the youth and he is the most relatable figure for
the audience that Manyavar is targeting. We look forward to the partnership and are confident
that this will be a mutually rewarding association.”

Virat will be seen in the new ad campaign ‘Aadha-Aadha’, which highlights that the essence
of marriage all is about sharing, and this should start right from the expense of the wedding
function.

TARGET AUDIENCE:

Target segment is mainly youth section of India. The youth means the young generation of
both urban and rural setting. Virat will be seen in the new ad campaign ‘Aadha-Aadha’,
which highlights that the essence of marriage all is about sharing, and this should start right
from the expense of the wedding function.

Celebrity's fit with the product image: (1/5)

The virtue of Virat does not match with the embedded traits of the brand. The Advertisement
did not show the main strength of Virat, i.e. confidence, self-motivation, and performance.
Virat’s character does not match with these types of crazy things as it matches with Saif or
Srisanth. So it is a perfect mismatch with the product campaign and endorser's personality.

Celebrity Target audience match: (3/5)

A young generation of India loves Virat, worship the man, salute his virtue and get thrilled to
experience his presence. The young generation nowadays prefers to be like Virat If not
Sachin. So Virat is idle to the young generation of India and using Virat as a brand endorser
is a masterstroke by Manyavar. But for the crazy youth or crazy people, Virat may not be a
perfect choice.
 76

Celebrity associated values: (4/5)

The value associated with Virat is very high. Virat's attitude, his transparency, maturity acted
as a magnet which attracts not only the youth but also the older generation. So Virat's
presence in an advertisement creates a positive vibe for the product in the mind of the
consumer which force them to think about the endorsed product. But the question with the ad
campaign is whether the celebrity associated value is properly encased in the campaign or
not.

Costs of acquiring the celebrity: (3/5)

The cost to use Virat as the endorser of Manyavar is very high but as a company, it is
insignificant if they consider the huge amount of brand awareness they are creating through
Virat.

Celebrity controversy risk: (5/5)

It is nil as Virat is known as a good boy among the celebrities. So low controversy level
increase the brand image of self as well as of Manyavar.

Celebrity popularity: (4/5)

It is already mentioned that Virat is one of the most popular people in India. One can find a
man who might not know how our President Pratibha Patil looks like, but he must be a fan of
Virat. This popularity reduces Manyavar’s half of job as an advertiser.

Celebrity physical attractiveness: (4/5)

As a sportsman, he possesses an athletic body. But in addition to that, he is manly looking

and with a macho image and a deadly smile, which makes him more attractive and appealing.

Celebrity credibility: (5/5)

Celebrity is being judged that whether he has the right to appear in the advertisement and
indirectly advice the consumers what to do and what not to. Virat is captain of Indian cricket
team and not only that, he has proven his capability of performing under immense pressure
several times which is obviously created creditworthiness.
 77

Celebrity prior endorsements: (1/5)

Prior advertisements with several companies have proven his spontaneity, acting ability and
confidence in front of a camera. But he had never done any ad that does not consider his
strength or quality but he really has to "act" to project himself as a funky and unorthodox
personality, which affected his "performance" in the Ad. So as all the points that make an Ad
popular and successful among the target audience are, cumulatively, below average. So there
are chances that the ad published in the print media, may not get the success.
 78

CASE STUDY II:

BRAND IDENTITY PRISM OF ADIDAS AND NIKE

BRAND IDENTITY PRISM OF ADIDAS

 79

BRAND IDENTITY PRISM OF NIKE

 80

COMPARATIVE ANALYSIS OF ADIDAS & NIKE:

1. To create brand awareness both companies have been using celebrity endorsement
strategies in their brand-building programs.
2. What differs is that Adidas focuses on sponsorship of teams and events e.g. national
teams and big sports events like the Olympic Games and different World
Championship events. This helps them to create awareness with help from different
types of media
3. In contrast, Nike has their focus on individuals like M. Jordan and T. Woods and the
stars success stories
4. Nike centered their brand equity model on the platforms, the endorsement focus
strategy, creating a dominant media presence, development of Flagship stores, Nike
Town and sub-branding
5. The Adidas strategies were based on endorsement focus strategy, advertising,
sponsorship programs focusing on major global events, sports associations, and
teams, and sub-brands
6. About the advertising strategy, Nike's advertising strategy was to create a dominant
presence in media. Nike created media presence in several trends-setting United
States cities. TV ads linking Nike to a city were used, but the real drivers were huge
oversized billboards on buildings that blanketed cities with messages featuring key
Nike- sponsored athletes, not products.
7. Adidas took up the competition with Nike through raising their advertising budget to
a level that made it possible to compete with Nike on the same conditions and the
same strength as Nike did to capture the consumer interest.
8. Adidas did not just spend more money, they made an impact with brilliant executions.
They made TV and other advertising campaigns. The company communicated their
heritage of innovation, technology and big success stories with personalities like
Mohammad Ali & David Beckham.
9. Adidas tried to spread meanings like "We know then- we know now" and "There is
nothing between you and success, so exceed your own expectations and limitations"
and " Earn it"
10. The success was obvious and after hard work and striving for a top position in the
industry Adidas was back in business.
 81

11. Nike's third strategy was to develop flag ship stores, Nike Town shops in bigger
cities, first national, and then abroad.
12. Nike was the first company to establish flagship stores and it turned out to be a sensation
13. Adidas choice was to experiment with sports events, with which they made a great
success. Examples of that are the Adidas Street ball Challenge a local three-person
team basketball tournament, this event started out as a trail in Berlin in the beginning
of the 1990s as a one-time occasion. In the mid-1990s, it had become a huge sports
event with about 5,000 participants all over the bigger cities in Europe.
14. In the finals in Germany, it attracted 3,200 players and 40,000 spectators. Adidas
made hereby a brand-building success
15. The Nike customer associated the Nike brand with words like sports, attitudes and life
style. Reasons for that is one can relate to or identify ones elf to Nike's marketing

Campaigns like "Just do it" and the companies front athletes like Michael Jordan
Tiger Woods. For Adidas, Consumers found the brand very trendy, modern and cool.
16. Adidas introduced a sub-brand in 1990 to serve the high-end products for all
categories of shoes and apparel. The "Equipment" sub-brand would represent the best,
whatever the product was.
17. The low-end products, for the "normal consumer" still have a high technology and
level of innovation. This strategy made the Adidas brand take on a different meaning;
it still meant participation, emotion and performance
18. The success strategy for Adidas was so successful that Nike copied their idea and
introduced their own line, the Alpha line, based on the same idea
19. Nike advanced from $1 billion dollars in 1986 to $ 9.9 billion in 2002, Adidas
advanced from $1.7 billion in 1992 to $4.8 billion in 1998 According to sales figures
for the both companies, it seems that both Nike and Adidas companies have
succeeded to create a brand loyal customer who perceives the Nike and Adidas
products as top quality
 82

BIBLIOGRAPHY

c) http://www.chillibreeze.com/articles/Celebrity-
endorsement.asp
http://www.coolavenues.com/know/mktg/surabhi3.php
http://www.thehindubusinessline.com/bline/2008/04/09/storie
s/2008040950750500.ht m

d) http://www.coolavenues.com/know/mktg/surabhi6.php
http://www.thehindubusinessline.com/2008/04/08/stories/200
8040851250500.htm
http://timesofindia.indiatimes.com/articleshow/1507842.cms
http://in.movies.yahoo.com/news-detail/15671/Celebrity-
endorsements-ensure- highersale-Shahrukh-Khan.html
e) http://www.merinews.com/catFull.jsp?articleID=183
http://www.icmrindia.org/free
%20resources/Articles/Celebrity%20Endorsement1.htm
http://catalogue.ausport.gov.au/fulltext/1998/cjsm/v2n1/dyso
n.htm
http://issuesinimc.wikispaces.com/Advantages+and+Disadva
ntages+from+using+cele brit y+endorsement
f) http://www.broadcastnewscorp.com/html/production.php
http://www.utalkmarketing.com/Pages/Article.aspx4187&Titl
e=White_Paper._Celebr ity_ Endorsement_2008
 83

g) http://www.asuku.com/forum/viewtopic.php?t=4649
http://www.nerve.in/subscribe.php?xml=brand_ambassador
http://news.webindia123.com/news/Articles/Business/200702
08/586975.html
http//www.emeraldinsight.com_Insight_ViewContentServlet
_Filename=_published_e
meraldfulltextarticle_pdf_0070381109.pdf
http//www.emeraldinsight.com_Insight_ViewContentServlet
_Filename=_published_e
meraldfulltextarticle_pdf_0701050407.pdf

h) https://timesofindia.indiatimes.com/su
bverse/The-making-of-a-
celebrity/articleshow/3887216.cms
i) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1203322

j) https://openpolicyontario.pbworks.com/f/
Celebrity-Endorsements- Report1+
%282%29.pdf
k) https://www.surveymonkey.com/r/2NRY625
l) https://en.wikipedia.org/wiki/Celebrity_branding
 84

APPENDIX - QUESTIONNAIRE

Dear Respondents, I, Pankaj Deepak Agarwal, the student of TYBMS, am

conducting a survey on "Impact of celebrity endorsement on buying behaviour of
customers and as a source of brand building". For this purpose, I need your
cooperation in fulfilling this questionnaire. It will take few minutes of your
precious time. It makes sure that information obtained is for general purpose only.

1) Name of the respondent……………………

2) What is your occupation?

1)Business

2) Service

3) Student

4) Others

3) What is your age?

1) 18-25
2) 26-32

3) 32-39

4)More than 40
 85

4) What is your gender?

1)Male

2)Female

3)Prefer not to say

4) something you wish to be

5) What factor affects your buying behavior towards a purchase?

1)Price

2)Opinion-leader

3)Celebrity Endorser

4)Brand name

6)Do you like to see any celebrity endorsing your brand on television?

1)Yes

2)No

3)May be

4)not sure
 86

7) "Celebrity endorsement is an effective tool of persuasion of

buying a product" Rate this statement.

1)Strongly agree

2)Agree

4)Disagree

5)Strongly disagree

8)"Male endorser is more effective as compared to the female

endorser." Rate this statement.

1)Strongly agree

2)Agree

3)Disagree

4)Strongly disagree

9) Does a celebrity endorse a product actually uses it?

1)Yes

2)No

3)Maybe

4)not sure
 87

10) Motivation factor for buying a product

1)Brand

2)Celebrity

3)Quality

4)Price

11) Celebrities makes difference to the image of the brand

1)Strongly agree
2)Agree
3)Disagree
4)strongly disagree

12) celebrity in an advertisement encourages to buy the product

1)strongly agree
2)agree
3)disagree
4)strongly disagree
 88

13)can celebrity endorsement can build trust in brand

1)Yes
2)No
3)Maybe
4)Not sure

14) Celebrities help more to remember brand/product

1)Strongly agree
2) Agree
3)Disagree
4)Strongly disagree

15) Celebrity holds the viewer’s attentions

1)Strongly agree
2)Agree
3)Disagree
4)Strongly disagree

Any suggestion....................................................................

........................................................................................
89