A

MINI PROJECT REPORT

ON

“A STUDY OF CELEBRITY ENDORSEMENT.”

TO BE SUBMITTED TO DR. ABDUL KALAM TECHNIAL UNIVERSITY

LUCKNOW IN THE PARTIAL FULFILLMENT OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

BATCH (2020-22)

SUBMITTED TO :- SUBMITTED BY :-

MS. KAJAL YADAV KALASH RASTOGI

HOD, MANAGEMENT MBA-II SEM

RGGI, MEERUT ROLL NO:- 2000690700011

1
 INTRODUCTION

Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation. The Advanced Learner’s
Dictionary of Current English lays down the meaning of research as “a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge.”1 Redman and Mory define research as a “systematized effort to gain new
knowledge.”2 Some people consider research as a movement, a movement from the
known to the unknown. It is actually a voyage of discovery. We all possess the vital
instinct of inquisitiveness for, when the unknown confronts us, we wonder and our
inquisitiveness makes us probe and attain full and fuller understanding of the
unknown. This inquisitiveness is the mother of all knowledge and the method, which
man employs for obtaining the knowledge of whatever the unknown, can be termed as
research.
The term consumer behavior is defined as the behavior that consumer display in
searching for, purchasing using, evaluating and disposing of products and services that
they expect will satisfy their needs.
The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how
• The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);

2
• The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
• The behavior of consumers while shopping or making other marketing decisions;
• Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer;
and

• How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
Celebrity Endorsement: 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.
Who is a celebrity?
Celebrities are people who enjoy public recognition by a large share of a certain
group of people whereas attributes like attractiveness, extraordinary lifestyle are just
examples and specific common characteristics cannot be observed though it can be
said that within a corresponding social group celebrities generally differ from the
social Normand enjoy a high degree of public awareness (Schlecht, 2003).
Testimonial: If the celebrity has personally used a product or service and is in a
position to attest its quality, then he or she may give a testimonial citing its benefits.
For instance AishwaryaRai endorses Lux by testifying the quality of the product as it
forms a part of her consumption basket.

3
 Endorsement: celebrities often lend their names to ads for product or services for
which they may or may not be the experts For instance SachinTendulkar has been
endorsing the Palio brand of Fiat.
Actor: A Celebrity may be asked to present a product or service as a part of
character enactment rather than personal testimonial or endorsement. For instance
SwetaTiwari of “Prerna fame” (KasuatiZindagiki) enacts as a housewife for Nirma’s
ad campaign.
Why Endorsements?
Celebrity Endorsements act as a credible means of “money burning”. This is
because this is a world of products for which the value a consumer obtains from
purchasing any given variety. This could be for reasons of social standing-People want
to wear the “right” clothes, drink the “right” beverages and use the “right” fragrances.
Specifically a consumer that observes messages for two different firm’s products, one
product’s message containing a celebrity endorsed and the other not, believes the
celebrity endorsed product will have more purchases and so be of higher value.(Clark
&Horstman, 2003)
Celebrity endorsement is more likely to be observed for those product shaving a
high price-production cost margin and on a large customer base. In short, celebrity
endorsements are more typical for nationally marketed products then for local or niche
market products and for products such as running shoes, soft drinks and the like for
which the price cost margins are apparently large.
Promoters of certain products require co-ordination over multiple customer groups
- different age, income, education groups or groups in different location. Example,
Credit Card. With a product of this sort a common set of advertising messages
communicated to all custom is a more effective and coordinates mechanism than

4
 messages targeted at separate customer groups with common messages. A customer in
one group receiving a message knows that customer in other groups are also receiving
the message. The challenge with common message is of significant audience reach in
the various customer groups at low cost. Because the celebrity is recognizable globally,
it is a low cost way to achieve cross group coordination (Clark & Horst man, 2003).

OBJECTIVES OF THE STUDY

• To examine the influence of congruence between celebrity value and product values on
advertising effectiveness.
• To compare three dimensions i.e, values, expertise and attractiveness of the matchup
hypothesis.
• To understand the influence of celebrity endorsement on purchasing decision of the
customer.
• To understand other factors like price and quality.

5
 RESEARCH METHODOLOGY
Research Design:
A research design is an arrangement of conditions for collection and analysis of
Data in a manner that aims to combine relevance to the research purpose with
Economy in procedure. It constitutes the blueprint for collection, measurement and
analysis of data. My research design will be exploratory research design.
Data Sources:
In dealing with any real life problem it is often found that data at hand are
inadequate, and hence, it becomes necessary to collect data that are appropriate. The
researcher can collect data either through primary source or secondary source.
a) Primary data: Primary is the data which is collected afresh and for the first time,
and thus happen to be original in character. I used the structured questionnaire.
b) Secondary data: Secondary data is the data which have already been collected by
someone else and which have already been passed through the statistical process. I
collected it from the sources like internet, published data etc.
Sampling plan :
Data collected has been analyzed and interpreted by percentage system and
presented in pie and column graphs.
Sampling Size:
It is the total number of respondents targeted for collecting the data for the research.
Sample size of 100 is taken for this research.

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 SCOPE OF THE STUDY
• Due to time constraint it is very difficult to cover the entire sectors. So I decided to
cover beverage industry.
• The scope of consumer behavior has been briefly touched upon in the previous section
wherein it was explained that how consumer behavior includes not only the actual
buyer and his act of buying but also the impact of celebrity endorsement while
purchasing the products.

7
 LIMITATIONS OF THE STUDY
There are following constraints of the study which can be explained as:-
• The time of research was short, due to which many facts have been left untouched.
• Sample size for the study is taken only 100 consumers. This can also act as a constraint
to the study.
• While collecting data some of the respondents are not willing to fill the questionnaire,
so they might not reflect their true behavior. This can also be a constraint to the study.

8
 INDUSTRY PROFILE
The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India,
Coke and Pepsi have a combined market share of around 95% directly or through
franchisees. Campa Cola has a 1% share, and the rest is divided among local players.
Industry watchers say, fake products also account for a good share of the balance.
There are about 110 soft drink producing units (60% being owned by Indian bottlers)
in the country, employing about 125,000 people. There are two distinct segments of
the market, cola and non-cola drinks. The cola segment claims a share of 62%, while
the non-cola segment includes soda, clear lime, cloudy lime and drinks with orange
and mango flavors.
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepal's) compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the
Philippines 173 and Mexico 605. The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn. It also supports growth of industries like
glass, refrigeration, transportation, paper and sugar. The Department of Food
Processing Industries had stipulated that 'contains-no-fruit-juice' labels be pasted on
returnable glass bottles. About 85% of the soft drinks are currently sold in returnable

9
bottles. There was a floating stock of about 1000 mn bottles valued at Rs 6 bn. If the
industry were to abide by the new guidelines, it would have to invest in new bottles,
resulting in a cost outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to invest
such a large amount.
Around 400,000 tonnes of raw material would be required to replace the existing stock
of bottles. Instead, the soft drink industry suggested that a seven-year moratorium be
extended to the industry so that it can incorporate the change in a phased manner.
There is no such mandatory requirement anywhere in the world to specifically label the
glass surface of returnable bottles. The government has decided to extend the date for
replacing the bottles to end-march 2006. In the meantime, the producers have shifted
substantially to the use of PET bottles.
Soft and aerated drinks were considered products for the middle class and the affluent.
That segregation is no more valid. Soft and aerated drinks are consumed by all except
those who cannot afford to buy any drink. An NCAER study says that 91% soft drink
sales are made to the lower, middle and upper middle classes. The soft drink industry
has been urging the government to categories aerated waters (soft drinks) equitably
with other consumer products of mass consumption and remove special excise duty.
The industry estimates that the beverage market should grow at twice the rate of GDP
growth. The Indian market should have, therefore, grown by at least 12%. However, it
has been growing at a rate of about 6%. In contrast, the Chinese market grew by 16% a
year, while the Russian market expanded at almost four times the rate of growth of the
Indian market.
It may be recalled that Coca-Cola, the world's number one player, was present in India
for a long time in collaboration with an Indian producer but was thrown out in the late
1970s. It reappeared in India following the economic liberalization era - but after its

10
rival, world's number two, had already entered in a big way following a long and tough
fight against the opposition from the domestic producers. When Coca-Cola re-entered,
it installed a new milestone. It acquired the well flourishing India's top player, Parle.
Since then it is basically a fight between the two American giants. Others are playing
a peripheral role, as adjuncts to the two MNCs. World's third biggest player, Cadbury
Schweppes, had also made an entry but was gobbled up by Coca-Cola. When Coca-
Cola acquired Parle brands, it was, in fact, buying the bottling facilities, the marketing
network, and the established consumer preference during the market build-up. The
brands were a drag on the global brand. Since Coca-Cola was not interested in brands
(like Thumps Up), it did not promote them. The result, at least, in the short run was a
loss of the market to the competitor. Coca-Cola decided to market more effectively the
Parle brands. It had in its armoury Coke, Thumps Up, Limca and Fanta. The latest to
enter market was Parle’s erstwhile Rimzim, alongside Portello, a black currant
flavoured drink, very popular in Srilanka.
Coca-Cola operates through 35 plants and 16 franchisees throughout the country,
while PepsiCo has 20 plants, but it has 7 more franchisees at 23 to 16 of its rival. Coca-
Cola claims a market share of 51%, while Pepsi has a share of 46%. The claims,
however, remain disputed. The other smaller players like Pure Drinks Ltd claim the
rest of the market. The shares of the two lead players are consolidated figures, which
include the respective bottlers. Coca-Cola had approached the government for a five
year extension for divesting 49% equity in its bottling subsidiary, Hindustan Coca-
Cola Holdings. It had set up the marketing subsidiary as part of its strategy to integrate
all its bottling operations, both company-owned and franchisee bottlers, apparently
keeping in line with its global policy. All together, it had bought initially over 38
franchisee bottlers.

11
Kandhari Beverages, coke bottlers for north have been eyeing to lift a stake in Coca-
Cola India. Coca-Cola had filed an application to offload 49% stake of its bottling
operations in favour of their Indian operators. Besides Kandhari, three other bottlers,
one each from Uttar Pradesh, Gujarat and Jammu, were lined up to invest in Hindustan
Coca-Cola Holding. Kandhari has already invested Rs 300 mn in 1999 and 2000 to
upgrade its capacity. The total investment by all the four was expected to be Rs 1000
mn. Both Coca-Cola and PepsiCo planned for the launch of lemon-flavored versions of
their products. Both have been expanding their non-carbonated drink line-ups, as
consumers seem to be shifting away from carbonated soft drinks. PepsiCo is
deliberating whether to come out with Pepsi Twist, a cola mixed with lemon. But while
both companies have juice sports drinks, bottled water and other such drinks in their
line-ups, neither coke nor Pepsi has launched a new national variety of a cola-
flavoured carbonated soft drink in years.
PepsiCo had achieved Rs 3 bn worth of exports, which include processed foods,
basmati rice, guar gum and soft drinks concentrate. PepsiCo completed the second
phase of its expansion and with this expansion, PepsiCo was to explore the possibility
of expanding the export of concentrates to more countries in addition to the exports to
Russia and other South Asian countries.
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote sales
of soft drinks through Pepsi-HLL network of vending machines and fountains. The
major soft drink brands in the Pepsi stable are Pepsi, 7UP, Mirinda, Tropicana and
Acquafina.
As a major strategic departure, both MNCs were expanding their brand range.
Consequent to some diversifying moves, at present, the sales ratio of Coca-Cola
between soft drinks and other beverages is 95.5. The company intended to change this
to 80:20 in the next three years. Its juice brand, Maaza - acquired from Parle a few
12
years ago - is being given a major thrust. It has plans to go in for canned coffee, iced
tea and purified categories under expansion schemes. It has already launched its
bottled water brand, Kinley, in the Indian market. Besides, it is intending to acquire
domestic brands in the non-carbonated beverages segment.
The global deal between Coca-Cola and P&G to form a snacks and beverages joint
venture company was reported to have slipped into rough weather. The P&G brand of
potato wafer, Pringles, seemed to be faced with distribution problems in India. P&G
had globally tied up with Coca-Cola to form a stand-alone juice and snacks company.
The new firm is focused on developing and marketing new juices, juice based
beverages and snacks on a global basis. The Sharjah-based Allied Beverages was
pushing its Ahlan brand in India, having entered the market in mid-2000. Its target was
carbonated drinks market in PET bottles. Its plans were to launch a PET bottle in the
popular 300 ml category. Ahlan expected to gain a 12% share of the total PET bottle
market in northern India. Of the total market, PET bottle segment is approximately
12%. Presently, Allied Beverages has a manufacturing unit at Dharuhera in Haryana.
The product range includes carbonated drinks - cola, orange, lemon and soda in three
pack sizes - 500 ml, 1500 ml and 2000 ml. Allied Beverages sells non-carbonated
drinks in 200 ml foodgrade cups priced at Rs 7 in its portfolio, available in four
different flavours. The company's future plans include pulp-based fruit drinks in
flavours, which will be available in 200 ml non-returnable glass bottles.
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes in
favour of Coco-Cola India, following the global takeover of Schweppes beverages by
Coke. The company still retains the bottling rights for the beverages.
It was noticed for the first time during the summer of 2004 that soft drink companies
were registering a slower growth in the sale of bottled water at 20% compared to 35%
in case of drinks.
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Market Segmentation
Segment
Share (%)
North
24
East 18
West 32
South
26
Rural 30
Urban 70

Market Structure
Product Variation Company Cola
Drinks Share (%)
Thums Up 29
Coca Cola 25
Pepsi 18
Non Cola Drinks:
Gold Spot 2
Fanta 9

14
Mirinda 8
Limca 9
Overall Colas 62
Lemon:
Cloudy 7
Clear 3
Orange 17
Mango 3
COMPANY PROFILE
PEPSICO
Pepsi was first introduced as "Brad's Drink", in New Bern, North Carolina, United
States, In 1893 the pharmacy of Caleb Bradham, who made it at his drugstore where
the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme
pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that
was delicious and would aid in digestion and boost energy.

Organization structure:

15
About PepsiCo:
PepsiCo products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more than $66 billion in
net revenue in 2014, driven by a complementary food and beverage portfolio that
includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product
portfolio includes a wide range of enjoyable foods and beverages, including 22 brands
that generate more than $1 billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose—our goal to deliver top-tier
financial performance while creating sustainable growth and shareholder value. In
practice, Performance with Purpose means providing a wide range of foods and
beverages from treats to healthy eats; finding innovative ways to minimize our impact
on the environment and reduce our operating costs; providing a safe and inclusive
workplace for our employees globally; and respecting, supporting and investing in the
local communities where we operate.
PepsiCo India Region: Leadership through Performance with Purpose
Our Mission and Vision
At PepsiCo we believe that business and society can thrive together. We are guided by
Performance with Purpose: delivering top-tier results in a way that sustains and
respects business, society and the planet.
Our Mission
As one of the largest food and beverage companies in the world, our mission is to
provide consumers around the world with delicious, affordable, convenient and
complementary foods and beverages from wholesome breakfasts to healthy and fun
daytime snacks and beverages to evening treats. We are committed to investing in our

16
people, our company and the communities where we operate to help position the
company for long-term, sustainable growth.
Our Vision
At PepsiCo, we're committed to achieving business and financial success while leaving
a positive imprint on society – delivering what we call Performance with purpose.
In practice, Performance with Purpose means providing a wide range of foods and
beverages from treats to healthy eats; finding innovative ways to minimize our impact
on the environment and reduce our operating costs; providing a safe and inclusive
workplace for our employees globally; and respecting, supporting and investing in the
local communities where we operate.
Wherever we do business, Performance with Purpose is our guide. We believe that
delivering for our consumers and customers, protecting the environment, sourcing with
integrity and investing in our employees are not simply good things to do, but that
these actions fuel our returns and position PepsiCo for long-term, sustainable growth.
Our goal is to nourish consumers with a range of products that deliver great taste,
convenience and affordability, from simple treats to healthy offerings in the
communities where we operate.
Large investor in India with strong brands:
PepsiCo has been consistently investing in India, in the areas of product innovation,
increasing manufacturing capacity, ramping up market infrastructure, strengthening
supply chain and expanding company’s agriculture programmes. The company has
built an expansive beverage and snack food business supported by 37 beverage plants
and 3 food plants. In two decades, the company has been able to organically grow
eight brands each of which generate Rs. 1000 crores or more in estimated annual retail
sales and are household names, trusted across the country.

17
 A growing portfolio of enjoyable and wholesome snacks and beverages:
PepsiCo India’s diverse portfolio reflects its commitment to nourish consumers with a
diverse range of fun and healthier products and includes iconic brands like Pepsi,
Lay’s, Kurkure, Tropicana, Gatorade and Quaker. In addition to the recently launched
Lay’s Maxx, 7UP Revive and Tropicana Slice Alphonso, the portfolio includes several
healthier treats like Quaker Oats, Tropicana juices, rehydrator Gatorade, Tata Water
plus, Quaker flavoured oats and Quaker Nutri Upma and Quaker Nutri Poha breakfast
range with the power of wholegrain.
Foods
PepsiCo’s foods division Frito-Lay is the leader in the branded salty snack market. All
its products are free of trans-fat and MSG. It manufactures Lay’s potato
chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under
the Kurkure and Lehar brands. The company’s high-fibre breakfast cereal, Quaker
Oats and low-fat and roasted snack options like Aliva increase the number of healthy
choices available to consumers.

Beverages
PepsiCo India’s expansive portfolio includes iconic refreshment
beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew, in addition to
low-calorie options such as Diet Pepsi, hydrating and nutritional beverages such
as Aquafina drinking water, isotonic sports drink Gatorade and fruit juices such
as Tropicana and Tropicana 100%.
• 7UP
• Aquafina
• Duke's

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• Gatorade
• Mirinda
• Mountain Dew
• Nimbooz
• Pepsi
• Slice
• Tropicana

2016 financial highlights:

Fiscal year is 2017- 2016- 2016- 2016- 2016- COCA-COLA

Jan - Dec. Q1 Q4 Q3 Q2 Q1 The Coca-Cola Company is a

Pepsico Net beverage company. “It owns

Sales or 12.22B 19.95B 17.22B 16.89B 12.62B or licenses more than 500
Revenues nonalcoholic beverage
brands” (MintGlobal, 2014).
Cost Of Goods
5.44B 9.36B 8B 7.78B 5.75B It primarily serves sparkling
Sold (COGS) beverages but also wide

Pepsico Gross range of still beverages such

6.78B 10.58B 9.22B 9.12B 6.88B as water, juices, ready-to-
Profit
drink teas and coffees, and
sports drinks. The Coca-Cola Company was founded in 1886, by John S. Pemberton
and served Coca-Cola at a local Pharmacy in downtown Atlanta, Georgia (The Coca-
Cola Company, 2014). In 1892, Asa Candler purchased and incorporated the Coca-
Cola Company as a Georgia Corporation (The Coca-Cola Company, 2014). Fourteen
19
years later, under Candler’s leadership, bottling operations began in Canada, Cuba, and
Panama. In 1919, the Coca-Cola Company was purchased by a group of investors led
by Ernest Woodruff for $25 million. From its early years, Coca-Cola Company made
significant innovations in the beverage industry, such as six-bottle carton and steel 12-
ounce cans. Additionally, it continued to expand internationally (The CocaCola
Company, 2014). In 1923, Robert W. Woodruff was elected as president of the Coca-
Cola Company, who also served as a Chairman of the Board in 1939. The very first
new product distributed by the Company was Fanta Orange in Naples, Italy. After the
success of this product, it established a diverse portfolio through acquiring Minute
Maid Corporation and adding a line of juice products. In 2008, “Sprite became the
third Company product to sell more than 2 billion cases annually, joining Coca-Cola
and Diet Coke” (The Coca-Cola Company, 2014).
Current Situation:
Today, the Coca-Cola Company has been serving for more than 127 years and is one
of the largest beverage companies headquartered in Atlanta, United States. The
company is engaged in the production, distribution, and marketing of nonalcoholic
beverages and syrups. It is listed on the New York Stock Exchange (NYSE) and the
Dow Jones Industrial Average (DJIA) 2 (MintGlobal, 2014). On March 16, 2014, the
share price of the Coca-Cola Company is recorded at $38.17 under NYSE (The Coca-
Cola Company). The Coca-Cola Company has over 3500 products and serves over 200
countries. Some of its brands include Coca-Cola, Sprite, Fanta, Diet Coke, Dasani,
Minute Maid, Power Ride, Simply Orange, Fresca, and Vitamin Water. Moreover, it
has partnered with approximately 250 bottling companies worldwide. “The company’s
segments include Eurasia and Africa, Europe, Latin America, North America, Pacific,
Bottling Investments and Corporate” (MintGlobal, 2014). “Some of the company’s
customers include bottling and canning operators, distributors, fountain wholesalers,
20
and fountain retailers” (MintGlobal, 2014). Lastly, in the beverage industry, the Coca-
Cola Company competes with PepsiCo, Inc., Nestle, and the Dr. Pepper Snapple
Group Inc.
The company is growing its business via both organic growth and acquisitions. Recent
years saw the company increasing its investments in major emerging markets while
making small- scale acquisitions in developed markets to enrich its health and wellness
portfolio. Re-franchising and re-organizing its bottling operations is also an important
highlight of its corporate activities.
Our Mission Our roadmap starts with our mission, which is enduring. It declares our
purpose as a Company and serves as the standard against which we weigh our actions
and decisions.
• To refresh the world
• To inspire moments of optimism and happiness
• To create value and make a difference Our Values Our values serve as a compass for
our actions and describe how we behave in the world.
Our Vision: Our vision guides every aspect of our business by describing what we
need to accomplish in order to continue achieving sustainable, quality growth.
Goals and Objectives The Coca-Cola Company is a leader in the beverage industry
with a reputable brand and strong global presence. According to the Coca-Cola
Company’s mission statement and 2020 Vision, some of its goals include: • Increase
profit by cutting down costs through productive and efficient production facilities; •
Focus on environment friendly bottling production and enforce sustainability; 3 •
Continue to diversify its portfolio through innovations and partnerships, keeping
consumer demands in mind; • Increase annual operating income by 6-8% in order to
double their revenue by 2020.

21
 Coca cola Products
• Coca-Cola
• Diet Coke
• Coca-Cola Zero
• Thums Up
• Sprite
• Fanta
• Limca
• Maaza
• Maaza Milky Delite
• Minute Maid Pulpy Orange
• Minute Maid Guava
• Minute Maid Mango
• Minute Maid Mixed Fruit
• Kinley Water
• Kinley Soda
• Georgia Gold
• Schweppes Ginger Ale
• Schweppes Soda Water
• Schweppes Tonic Water

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 THEROTEICAL FRAMEWORK
Miles and Huberman (1994) defined a conceptual framework as a visual or written
product, one that “explains, either graphically or in narrative form, the main things to
be studied—the key factors, concepts, or variables—and the presumed relationships
among them” (p. 18).1 Here, I use the term in a broader sense, to refer to the actual
ideas and beliefs that you hold about the phenomena studied, whether these are written
down or not; this may also be called the “theoretical framework” or “idea context” for
the study.
The most important thing to understand about your conceptual framework is that it is
primarily a conception or model of what is out there that you plan to study, and of what
is going on with these things and why—a tentative theory of the phenomena that you
are investigating. The function of this theory is to inform the rest of your design— to
help you to assess and refine your goals, develop realistic and relevant research
questions, select appropriate methods, and identify potential validity threats to your
conclusions.
What is often called the “research problem” is a part of your conceptual framework,
and formulating the research problem is often seen as a key task in designing your
study. It is part of your conceptual framework (although it is often treated as a separate
component of a research design or proposal) because it identifies something that is
going on in the world, something that is itself problematic or that has consequences
that are problematic. Your research problem functions (in combination with your
goals) to justify your study, to show people why your research is important. In
addition, this problem is presumably something that is not fully understood, or that we

23
don’t adequately know how to deal with; therefore, we want more information about it.
Not every study will have an explicit statement of a research problem, but every good
research design contains an implicit or explicit identification of some issue or problem,
intellectual or practical, about which more information is needed. (The justification of
“needed” is where your goals come into play.)
The field of consumer behavior studies how individuals, groups and
organization select, buy, use and despise of goods, services, ideas, or experience to
satisfy their needs and desires understanding consumer behavior and knowing
customer are never simple.
The wealth of products and service produced in a country make our economy strong
.The behavior of human being during the purchase is being termed as Buyer Behavior.
Customer says one thing but do another. They may not be in touch with their deeper
motivations.
The pie and column chart creates a visual model, which people can use when
comparing different data sets. Using different colours, pie and column charts divide
information into sections resembling pie slices which is accompanied by a number of
percentages, and its size changes accordingly. Graphs and charts condense large
amounts of information into easy-to-understand formats that clearly and effectively
communicate important points.
In the near future consumers desires more and more bikes to be introduced in the
market and at the same time they should maintain quality because most of the
consumers prefer pulsar bike by quality and price.

24
 DATA ANALYSIS&INTERRETATION

1. Which category of products do you like most?

TABLE:
Response Number of Percentage of
Soft drinks 20
respondents 35
respondents
Juice 19 33
Others 16 21
Total 55 100
GRAPH:
40

35

30

25

20
Percentage of respondents

15

10

0
Soft drinks Juice Others

Interpretation / Analysis:
According to my survey out of 100 respondents 35% of the respondents prefer soft
drinks. The remaining 32% respondents prefer juice and 31% respondents prefer other
products.

2. In soft drinks which brand do you prefer mostly?

TABLE:

25
 Response Number of Percentage of
Pepsi 20
respondents 35
respondents
Coco cola 19 33
Local brands 12 21
Not specified 4 11
Total 55 100

GRAPH:

40
35
30
25
20
15 Percentage of respondents

10
5
0
Pepsi Coco cola Local brands Not
specified

Interpretation / Analysis:
According to my survey, out of 100 respondents, 35 % of the people prefer Pepsi most
then coco cola with around 33% followed with local brands & not specified with 21%
& 11% respectively.

3. Which factor related to product attracts you most?

TABLE:
Response Number of respondents Percentage
Price 16 30
of
Quality 22 40
respondent
Taste 6 10
26 s
 Celebrity 10 18
other
endorsement 1 2
Total 55 100%
responses
GRAPH:
sales
45
40
35
30
25
20
Percentage of respondents
15
10
5
0
Price Quality Taste Celebrity
Endorsement

Interpretation / Analysis:
According to my survey out of 100% respondents, 40% of the respondents choose the
product on the basis of quality, 30% respondents choose according to the price, 10%by
taste, 18% by celebrity endorsement and the remaining 2% on other basis.
4. How frequently do you come across advertisements that feature celebrities?
TABLE

Response Number of Percentage of

Often 8
respondents 15
respondents
Sometimes 19 35
Rarely 8 50
Never 0 00
TOTAL 55 100

GRAPH:

27
60

50

40

30
Percentage of respondents

20

10

0
Often Sometimes Rarely Never

Interpretation / Analysis: According to my survey 50% of the respondents rarely

come across advertisements that feature celebrities, 35% sometimes, 15% often. There
are nil who never come across advertisements that feature celebrities
5. Do you like to see any celebrity endorsing your brand?
TABLE:
Response Number of Percentage of
Yes 47
respondents 85
respondents
No 8 15
TOTAL 55 100

90

80

70

60

50
Yes
40
no
30

20

10

0
Number of customers Percentage of
respondants
GRAPH:

28
Interpretation / Analysis:
From the above table it is clear that 85% of the respondents are like to see any
celebrity endorsing their brand where 15% of the respondents are unwilling.

6. In case of soft drinks which celebrity person you like most?

TABLE:
Response Number of Percentage of
Film stars 20
respondents 37
respondents
Sports stars 21 38
politicians 5 9
Famous 9 16
TOTAL 55 100
personalities

GRAPH:
40

35

30

25
Film stars
20 Sports stars
15 Politicians
10 famous personalities

0
Number of Percentage of
customers respondants

Interpretation / Analysis:
Majority of the respondents choose film stars with 37% and sports stars with 38%. The
remaining 9% choose polititians,16% choose famous personalities.

29
7. Do you associate the celebrity directly with the quality and the performance of
the product?
TABLE:
Response Number of Percentage of
Yes 1
respondents 2
respondents
Every time 2 4
Not really 14 26
No 19 34
Never 19 34
no
TOTAL 55 100

GRAPH:

40

35

30

25 Yes
Every time
20
Not really
15
No
10 Never
5

0
Number of percentage of
customers customers

Interpretation / Analysis:
Above table clearly shows us that most of the respondents i.e, 34% of the respondents
never associate the celebrity directly with the quality and the performance of the
product.
8. Is celebrity endorsement making you loyal towards soft drinks?

TABLE:8
30
 Response Number of Percentage of
Yes 35
respondents 63
respondents
No 20 37
TOTAL 55 100

GRAPH:
70

60

50

40
Percentage of respondents
30

20

10

0
Yes No

Interpretation / Analysis:
By the above table we can clearly say that celebrity endorsement sometimes make
you loyal towards soft drinks i.e, 63% of the respondents agreed with the statement and
37% did not agree.

9. For how long do you associate a particular celebrity to a particular brand?

TABLE:

31
 Response Number of Percentage of respondents
Temporary 36 66
respondents
Permanent 8 14
Can’t say 11 20
TOTAL 55 100

GRAPH:

70

60

50

40
TemporaryPermanent
30 Permanent
Can’t say
20

10

0
Number of Percentge of
customers customers

Interpretation / Analysis: According to my survey 66% of the customers like to

associate a particular celebrity to a particular brand temporarily, 14% of the customers
like to associate a particular celebrity to a particular brand permanently and the
remaining 20% can’t say anything regarding this.
10. Will you stop buying a brand if your favorite celebrity endorsing it got
involved in a scam?
TABLE:
Features Number of Percentage of
Strongly 34
respondents 62
respondents
Disagree 16 29
disagree
Neutral 3 5
Agree 1 2
Strongly 1 2
agree 32
 TOTAL 55 100

GRAPH:
70

60

50

40

30 Percentage of respondents

20

10

0
Strongly Disagree Neutral Agree Strongly
disagree agree

Interpretation / Analysis:
62% of the respondents never purchase the product because of celebrities loyalty, 5%
are neutral, 2% of the respondents always purchase the product because of their loyalty
towards celebrities.
11. If celebrity stop endorsing for product, will you continue the usage of
product?

TABLE:
Response Number of Percentage of
Yes 52
respondents 94
respondents
No 3 6
TOTAL 55 100

GRAPH:

33
 100

90

80

70

60

50
Percentage of respondents
40

30

20

10

0
Yes No

Interpretation / Analysis:
According to my survey if celebrity stop endorsing for product, 94% of the
respondents continue the usage of product, the remaining 6% of the respondents stop
the usage of the product.

12. Overall would you consider the presence of celebrity endorsement as positive or
negative when making a purchase decision of soft drinks?

TABLE:
Response Number of Percentage of
Positive 45
respondents 81
respondents
Negative 10 19
TOTAL 55 100

GRAPH:

34
 90
80
70
60
50
40 Percentage of respondents
30
20
10
0
Positive Negative

Interpretation / Analysis:
91% of respondents said that they are positive when making a purchase decision of soft
drinks, the remaining 19% of the respondents have negative opinion on celebrity
endorsements while making a purchase decision.

FINDINGS
After completing survey I found that:
• The research shows that the soft drinks are almost equally preferred with juices.
• From the research Pepsi and coca cola brands are preferred more compared to other
brands.
• From the research maximum consumers see the quality of the product.
• Advertisements that feature celebrities play an important role in increasing the sales of
the product.
• The research shows that the celebrity endorsement is playing a key role on Indian
consumers.
• Film stars and sports stars both are equally effective in celebrity endorsement.
• There is no comparison of quality and performance of product with the celebrity.

35
• Out of 100 respondents 63 respondents said that celebrity endorsement makes them
loyal towards the soft drinks.
• Most of respondents associate a particular celebrity to a particular brand for short
period of time.

Suggestions

On the basis of survey there are some recommendations for the company which can
easily solve the problem what the company is facing.
• Looking towards the future, the most important recommendation to soft drink industry
is to continue product innovation and expansion of their product line.
• To sustain or increase the global market share.
• To maintain and try to increase their brand loyalty.
• Increase the number of dealers.
• Provide the dealership on the basis of their past experience.
36
• Focus on publicity instead of such aggressive advertisements.
• Provide special outlets to the customers.
• Provide outlets in the remote areas.
• Avoid large number of middle men or channels and develop more effective own
channel of distribution.

Conclusion
In India celebrities’ position in the mind of people is very high. People looks as
their Idol and millions of people follow them. In all region of the country different
celebrities follow by their fans like a god. In cricket Sachin Tendulkar ,Ms Dhoni,
Virat Kholi . In bollywood male endorser and female endorser both effective in ads
like Amitabh Bachchan ,Shahrukh Khan , Salman Khan , Ketrina Kaif ,Bipash Basu
,Ashwrya Rai Bachchan .These celebrities also using their name for endorsement very
effectively.
Celebrity endorsement in soft drinks is playing a key role for the soft drinks
companies. Soft drink is product which purchase for enjoyment. It is not necessary
37
product for the consumer. So all soft drink companies are highly concentrate on
advertisement campaign especially for TV advertisement. For all soft drink companies
like Pepsi, coca cola use celebrity as a market strategy and got positive result.
Consumer is highly affected by celebrity when he/she going to buy a soft drink. That
show how celebrity endorsement is effective with respect to soft drinks.

BIBILIOGRAPHY

References:
Philip A.Stroke(2009), “impact of celebrity endorsement on stock prices”, journal of
consumer research, Vol 14 No.March.
Philip kotler: “marketing management”,pearson publishers, New Delhi,2013.
http://www.coolavenues.com/know/mktg/surabhi6.php
38
http://www.thehindubusinessline.com/2008/04/08/stories/2008040851250500.htm
http://timesofindia,indiatimes.com/articleshow/1507842.cms

QUESTIONNAIRE

“CONSUMER BEHAVIOUR TOWARDS CELEBRITY ENDORSEMENT”

Personal Information:
NAME:
EMAIL ID:
GENDER: □ MALE □ FEMALE
39
AGE □18-25 □26-32 □ 32-39 □Above 40
What is your occupation?
□ Student □employee □business □other
1. Category of products do you like most?
□ Soft drinks □ juice □ other
2. In soft drinks which brand of soft drinks do you prefer most?
□Pepsi □coco cola □ local brands □not specified
3. Which factor related to product attracts you most?
□Price □ quality □ taste □celebrity endorsement □other
4. How frequently do you come across advertisements that feature celebrities?
□ Often □ sometimes □ rarely □ never
5. Do you like to see any celebrity endorsing your brand?
□Yes □ no
6. In case of soft drinks which celebrity person you like most?
□Film stars □sport stars □politician’s □famous personalities
7. Do you associate the celebrity directly with the quality and the performance of
the product?
□Yes □every time □ not really □no □never
8. Is celebrity endorsement making you loyal towards soft drinks?
□Yes □no
9. For how long do you associate a particular celebrity to a particular brand?
□ Temporary □ permanent □can‘t say

10. Will you stop buying a brand if your favorite celebrity endorsing it got
involved in a scam?
40
□Strongly disagree □ disagree □ neutral □ agree □ strongly agree
11. If celebrity stop endorsing for product, will you continue the usage of
product?
□Yes □ no
12. Overall would you consider the presence of celebrity endorsement as positive
or negative when making a purchase decision regarding soft drinks?
□Positive □negative

41