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A DIAGOSTIC STUDY ON

PROMOTIONAL ACTIVITIES WITH SPECIAL REFERENCE


TO THE CELEBRITY ENDORSEMENTS (ALCOHOLIC
BEVERAGE PRODUCTS OF THE UNITED BREWERIES
COMPANY LTD, BANGALORE)

A Dissertation submitted in partial fulfillment of the requirement for the


award of MBA Degree of Bangalore University

Submitted By

AMARESH PARASHURAM

Register no. :
07 XQCM 6003

Under the guidance and Supervision of

Dr.K.V. Prabhakar
Senior Professor

MP Birla Institute of Management


Associate Bharatiya Vidya Bhavan

BANGALORE-560 001.

2007-09
Promotional activities with special Reference to the celebrity Endorsements  

DECLARATION

I hereby declare that this dissertation entitled “Promotional activities with


special Reference to the celebrity Endorsements (Alcoholic beverage
products of the United Breweries Company Ltd, Bangalore)” is the result of
research work carried out by me from March 10th to May 25th, 2009 under the
guidance of Dr.K.V.Prabhakar, Senior Professor, M P Birla Institute of
Management, Bangalore.
I further declare that this dissertation reflects my own efforts and that it has
not been submitted earlier to any other University or Institution for the award of
any Degree or Diploma or any other title of recognition.

PLACE: Bangalore Amaresh Parashuram


DATE: (07XQCM6003)

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PRINCIPAL’S CERTIFICATE

This is to certify that this dissertation entitled “Promotional activities


with special Reference to the celebrity Endorsements (Alcoholic beverage
products of the United Breweries Company Ltd, Bangalore)” is the result of
the research work carried out by Mr.Amaresh Parashuram under the guidance of
Dr.K.V.Prabhakar, Senior Professor,MPBIM, Bangalore.

PLACE: Bangalore Dr.Nagesh Mallavali


DATE: Principal

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GUIDE’S CERTIFICATE
This is to certify that this dissertation entitled “Promotional activities with special
Reference to the celebrity Endorsements (Alcoholic beverage products of the United
Breweries Company Ltd, Bangalore)” is the result of the research work carried out by
Mr.Amaresh Parashuram under my guidance.

PLACE: Bangalore Dr.K.V.Prabhakar


DATE: Senior Professor

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ACKNOWLEDGEMENT
I am grateful to many people whose timely help and guidance has helped me to conduct this
research successfully.

I would also like to express my thankfulness to Dr.Nagesh Mallavalli, Principal M.P.Birla


Institute of Management for giving me an opportunity to pursue this project.

I take immense pleasure to express my heart-felt gratitude to Dr.K.V.Prabhakar for his


guidance and supervision.

I also wish to thank all those respondents who were patient enough in giving answer to my
questionnaire.

Finally, I would like to extend my grateful thanks to all my friends and faculty members of
MPBIM, Bangalore whose assistance has a lot to me personally for the completion of this
research.

PLACE: Bangalore (Amaresh Parashuram)


DATE:

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EXECUTIVE SUMMARY
Breweries and distilleries industry is one of the steadily growing industries in the market and
beer is a major product of any liquor industry. Since time immemorial Alcoholic beverage
consumption as becomes the part of human life. Nowadays any parties and social gathering will
not be complete without the beer on the menu.
The Indian Alcoholic beverage market has been growing rapidly over the last 10 years,
due to the positive impact of demographic trends and expected changes, like: increasing
income level, changing changing lifestyles, so Many of global players are entering the Indian
Alcoholic beverage sector to get the benefit of the profit wave of the Alcoholic beverage
sector in India.
I took up a diagnostic Study entitled. “Promotional activities with Special Reference to the
Celebrity Endorsements (Alcoholic beverage products of the United Breweries company
Ltd.Bangalore)”.
India is now adapting to marketing products with a blend of celebrity endorsement.
Hence, I thought it would be a right time to take such a project and present the findings of what
impact it has made.
There were only a few studies conducted in these product category highlighting behavioral
aspects and consumers preferences for the Product. Alcoholic beverage is unique in particular
reference to their consumption because of its wide variety of brands and high volume of
consumption.  The below given points are summary of findings and such findings have been
reached by
• Analysis done with the help of response from the respondents
• Discussion with the respondents.
• Research in internet
• Study from various books, journals, research findings related to this topic.

Brand endorsement by celebrities is mainly done


• To make an appeal among the consumers
• That the consumers should notice the brand
• The brand ambassadors would set a trend among the consumers
• To influence the consumers
• To bring a trust about the brand among the consumers

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• To achieve high brand recall


• To establish high brand awareness
Celebrity endorsement is mainly undertaken because to create brand awareness and brand
recall. The selling proposition is no longer the same. Earlier people were only concerned about
quality. But now things have changed. There are umpteen numbers of products which floods
the market. To stand out from the clutter brand ambassadors can be better tool.
Hence
• Articulate with clarity on the brand promise (What am I?) and the brand personality.
• Create consensus among the brand team on what the communication objectives for
the campaigns are.
• Focus single-mindedly on the characteristics the chosen celebrity should possess, in
order to provide synergy with the brand to be advertised.
• Overtly establish what the celebrity is going to communicate.
• Celebrities must be associated properly to the brand that they endorse once when
these criteria are met, endorsements can work as a force multiplier. On the flip side,
the greatest danger is that because celebrities already carry a strong brand character,
a mismatch could be counterproductive to the brand. It is very tempting to be
carried away by the short-term exposure and interest that an endorsement could
generate.

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LIST OFCHARTS, DIAGRAMS AND GRAPHS

PageNo.25 Fig No:1 Chart showing concept of brand equity

PageNo.27 Fig No:2 Chart showing that a Brand is more than a product

PageNo.50 Fig No:3 Pie Chart showing Sources of data collection

PageNo.53 Fig No:4 Bar chart showing habit of Drinking

PageNo.54 Fig No:5 Bar chart showing Brand awareness Among the
respondents (alcoholic drinks)

PageNo.56 Fig No:6 Bar chart showing preference of the place to drink.

PageNo.58 Fig No:7 Bar chart showing major reasons to shift from one Brand to
another brand.

PageNo.60 Fig No:8 Bar chart showing Celebrity endorsement and chances of
brand recall.

PageNo.61 Fig No:9 Bar chart showing Brand ambassadors and advertisement,
brand recall & awareness.

PageNo.62 Fig No:10 Bar chart showing preference among two brands having
same attribute

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CONTENTS
Particulars Page No
Declaration 2
Certificate from the Principal 3
Certificate from the Internal Guide 4
Acknowledgement 5
Executive summary 6

Part-A Theoretical frame work 11


Chapter-1 1.Introduction 12
2.Celebrity 13
Chapter-2 1. Literature survey 15
Chapter-3 1.Research Design 20
2.Research Objectives 20
3.Research Methodology 21
4.Data collection tools, Sample size 22
5.Research Limitation 22
Chapter-4 1.Celebrity Endorsement 23
2.Brand Management 24
3.Incubation of the concept of Brand Equity 25
4.Brand Image 27
5.Segmentation Marketing 28
6.Factors driving celebrity impact on the brand 35
Chapter-5 1. Industry profile 38
2.Company Profile 44
Chapter-6 Data analysis and Inferences 50
1. Source of data collection 50
2. Consumer’s preference of alcoholic drinks 51
3. Habit of drinking alcohol 53
4. Brand awareness of alcoholic drinks among the consumers 54
5. Importance of celebrity endorsement 55

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Particulars Page
No.
6. Consumers’ preference place for drinking 56

7. Importance of celebrity endorsement for UBL’s alcohol brands 57

8. Reasons for shifting from one brand to other brand 58

9. Brand ambassadors and advertisement, brand recall & awareness 60

10. Brand ambassadors and preference among the two brands having 61

same Attribute

11. Impact of celebrity endorsement for alcoholic drinks on society 62

Chapter-7 Major Research Findings & Recommendations 63

1.Findings 63

2.Findings from Analysis 64

3.Recommendation 66

Chapter-8 1.Bibliography 67

2.Annexure 68

3.Directions for further research 71

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INTRODUCTION

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PART ‘A’
(THEORITICAL FRAMEWORK)

INTRODUCTION

BRAND AMBASSADOR & ENDORSEMENT

RESEARCH OBJECTIVES

RESEARCH METHODOLOGY

DATA COLLECTION TOOLS

RESEARCH LIMITATIONS

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CHAPTER-1

INTRODUCTION

Advertising is the paid promotion of goods, services, companies, and ideas, by


an identified sponsor. Marketers see advertising as an overall promotional strategy. Along with
Price, Product, and Place, advertising is one of the elements of the 4th P of marketing, i.e.
Promotion. The other elements of the promotional strategy include - sales promotions, public
relations, etc. An effective marketing mix translates in to an effective run for the product in the
market. One of the vital elements of the whole marketing strategy is the promotional strategy,
and in a more specific sense, the advertising strategy.

The society that we live in can not only be called secular or democratic, it should be more
appropriately termed as over-communicated these days. A typical super-market in USA
displays more than 12000 brands, an American family has at least one television set and a
consumer is exposed to around 1000 ads per day1. Likewise, there are around 130 television
channels in India broadcasting over 3 million television commercials each year in India. The
media-explosion can thus be easily demonstrated. Moreover, people forget 80% of the
information in just 24 hours! Just imagine the plight of the marketer to make his brand shout
over the deafening clutter of all the brands! Somewhere in the 80's, Indian marketers found the
solution, 'Celebrity Endorsement' for the brand!

The theories like 'Source Credibility Theory, Source Attractiveness Theory and Meaning
Transfer Theory' provide a basis on which the methodology of celebrity endorsement works
and also explains how the process of the celebrity endorsement influences the minds of the
consumers. Firms invest huge amounts as advertising expenditure for hiring the right celebrity.
However there lies uncertainty with respect to the returns that the company might be able to
garner for the brand. The issue of matching the values of the celebrity with the brand values is
also very important, i.e. getting the right celebrity to endorse the right brand. Consumers
perceive the brand as having superior quality because it has been endorsed by a credible source.
This makes endorsement as one of the indictors of quality for any brand. Corporate credibility
along with endorser credibility plays a significant role in the attitude of the consumer towards
the brand and the advertisement respectively.

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Firms endorse celebrity for a variety of reasons. It might be the life experience of the celebrity
that fits the advertising message or the endorser's high appeal with the firm's consumer target
group. Studies associated with the market effect of celebrity endorsement suggest that
consumers positively value the use of celebrity endorsers in the advertisements. Firms invest
significant money in putting together brands and organizations with endorser qualities such as
attractiveness, likeability, and trustworthiness. But today's dynamic market conditions make
these investments unviable.

Today 'Celebrity Endorsement' has attracted immense debate on whether it really contributes to
the brand building process or whether it is just another tool to make the brand more visible in
the minds of the consumers. Although it has been observed that the presence of a well known
personality helps in solving the problem of over-communication that is becoming more
prominent these days, there are few undesirable impacts of this practice on the brand. The
theories like 'Source Credibility Theory, Source Attractiveness Theory and Meaning Transfer
Theory provide a basis on which the methodology of celebrity endorsement works and also
explains how the process of the celebrity endorsement influences the minds of the consumers.
Firms invest huge amounts as advertising expenditure for hiring the right celebrity. However
there lies uncertainty with respect to the returns that the company might be able to garner for
the brand. The issue of matching the values of the celebrity with the brand values is also very
important, i.e. getting the right celebrity to endorse the right brand. Consumers perceive the
brand as having superior quality because it has been endorsed by a credible source. This makes
endorsement as one of the indictors of quality for any brand. Corporate credibility along with
endorser credibility plays a significant role in the attitude of the consumer towards the brand
and the advertisement respectively. On the other hand, the over popularity of the celebrity
sometimes overshadows the brand. If the celebrity is involved in multiple endorsements, it
tends to create confusion among consumers and hence negatively affects the perception of the
advertisement and the brand. Hence, to say clearly whether the practice of celebrity
endorsement impacts positively or negatively to the brand still remains a debate.

CELEBRITY :

A brand ambassador/Celebrity a well-connected person or a celebrity who is used to


promote and advertise product or service.

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Pictorial view of Brand ambassador

A diplomat a representative of an organization, institution or corporation that best portrays the


product or service. Celebrity/Ambassadors are the face and a finger of the brand, everything
they touch, the brand is touching. Brand Ambassadors from the public image of brands and are
the humans, companies use to deliver their message to the public. Non-traditional marketing
companies utilize Brand Ambassadors in campaigns to answer questions, engage the audience,
and increase brand awareness. Using reputable firm to supply this type of staff allows
companies to maintain a high quality of applicants that mirror the target demographic to reach
consumers in the most effective manner.

A company achieves some clear-cut goals by using a brand ambassador. It works out in
building brand loyalty as the consumer may have interest on that particular celebrity. So when
he or she would see that celebrity on an advertisement, then that person could get motivated to
use that product or service, as a respected person is involved.

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LITERATURE SERVEY

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CHAPTER-2

LITERATURE REVIEW:
Purpose of the Literature Review
1. To identify the problem
2. To understand the secondary data that has been gathered in the field of study
3. To attempt to make new findings on the problem statement without repetition
Of what has already been done in the field of study.
Various researches have been conducted in different parts of the world regarding
Celebrity endorsement of alcoholic products , different methods and marketing and
advertising aspects of alcoholic products , now let’s discuss a few

1. A research was conducted by Lyn Phillipson and Sandra C. Jones, Centre for Health
Initiatives, University of Wollongong. To bring Awareness of Alcohol Advertising among
Children Who Watch Televised Sports

An audit of advertising during the finals of the One Day Cricket during the summer of 2006
reveals a high frequency of alcohol advertisements, dominated by the products of the alcohol
sponsors. Significantly, the alcohol advertisements shown during the cricket broadcasts showed
an overwhelming use of human model and humor, both of which have been shown to be
appealing to a younger audience.
Are children being adversely affected by advertising directed at adult consumers, is it socially
responsible to advertise alcohol during programs with a young viewing audience one potential
area requiring consideration is the potential impact of alcohol advertising and promotion during
sporting broadcasts on the alcohol beliefs of children in Australia. In this paper, the frequent
alcohol advertising during the finals of the One Day Cricket Series broadcast during the
summer of 2006 was found to contain features potentially appealing to young children.
Qualitative data collected during friendship pair discussions with Grade five and six primary
school students found that children have high levels of recognition for alcohol ads shown
during the TV broadcasts and highlights the appeal of certain features such as humor and
mascots – as well as a tendency for children to associate a preference for alcohol products with
being young, male, sporty and humorous

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The friendship pair data revealed a high awareness amongst the grade five and six children for
the alcohol products and brands advertised during the cricket broadcast. Interviews confirmed
that ads containing features previously identified in the literature such as humor, music and
mascots were particularly appealing to children. Children were aware of celebrity endorsement
of products and, in some cases, associated the preference for products of the celebrities with
products they had endorsed. Of particular note was the association of particular products with
personal characteristics.
Alcohol was identified as a product preferred by males, young people and people who were
humorous and men who play sport. Given cricket celebrities are young males, it is possible that
the association between being, male and young and preferring alcohol, is also strengthened by
the alcohol sponsorship of sport. The fact that there were some advertisements that the children
did not recall, or did not find appealing (such as Johnny Walker) suggests that it may be
possible to develop adult-targeted ads that do not appeal to children. Marketers should pay
particular attention to the use of appeals and messages that are attractive to young people – not
only to demonstrate their commitment to corporate social responsibility (i.e., to contribute to
reducing alcohol related harms), but also to reduce the likelihood of government restrictions on
alcohol advertising that are likely to occur if the industry does not demonstrate a capacity to
Self-regulate effectively.
Although only a small pilot study, both the frequency and content analysis of alcohol
ads shown during the cricket broadcast and the appeal of those ads to the young children
interviewed prompts the need for further investigation into the alcohol sponsorship of sport and
the impact on children’s alcohol beliefs and expectancies. This is particularly so in light of the
central place of sport in the Australian culture, and the increasing levels of underage and binge
drinking amongst our young people.

2.A research on Alcohol Advertising and Young People’s Drinking conducted by Barrie
Gunter, Anders Hansen and Maria Touri Department of Media and Communication University
of Leicester, January 2008.

This report presents an investigation of alcohol advertising and young people’s drinking habits.
It combines a review of international research literature, an analysis of the nature of alcohol
advertising from print media and television, an analysis of point-of-sale displays in retail
outlets that sell alcoholic drinks, and a survey of young people that obtained data about their

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alcohol drinking habits and exposure to alcohol advertising. It also conducted a review of
alcohol advertising codes of practice within the United Kingdom. The principal objectives of
this research were:
1. To establish the status of research evidence concerning the effects of alcohol advertising on
young people’s consumption of alcohol.
2. To examine general patterns and trends of alcohol consumption among young people, with
special reference to the situation in the United Kingdom.

Research in the United Kingdom has also indicated that while positive links between
advertising expenditure and aggregate consumption of alcohol can be found, such links exist
only for specific categories of alcohol (e.g., beer and spirits but not wine). Furthermore, any
increase in consumption of one type of alcohol can sometimes have an impact of levels of
consumption of another type.

It is well established that young people’s alcohol consumption can be influenced by a variety of
factors. Whether children and teenagers star t to drink themselves is linked to parental and peer
group drinking patterns and to the attitudes towards drinking of others who represent important
role models or sources of social norms and values. Media related experiences have also been
found to play a possible role in drinking onset and in shaping ongoing patterns of alcohol
consumption. The current research included a new investigation of young people’s alcohol
consumption and its relationship to a range of other social and psychological factors, including
their exposure to alcohol advertising. A self-completion questionnaire survey was conducted
with young people aged 17 to 21 years. Respondents were recruited from among a university
and further education college populations in Leicester. Respondents were volunteers accessed
via class tutors.
Most questionnaires were completed at the end of class sessions, while some were returned by
respondents in their own time to an address provided. A researcher explained to respondents
the purpose of the survey and gave clear assurances that all questionnaires would be completed
anonymously. Data could not therefore be traced back to specific respondents. In consequence,
respondents were invited to be as honest as possible in giving their answers.
3.Research on “ Consumer preference towards beer brand In Bangalore City “ by a
student of MBA program, St. Joseph’s College

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The Indian beer market has been growing rapidly over the last 10 years, due to the positive
impact of demographic trends and expected changes, like: increasing income level, changing
changing lifestyles, so Many of global players are entering the Indian beer sector to get the
Benefit of the profit wave of the beer sector in India.
There were only a few studies conducted in this product category highlighting behavioral
aspects and consumer’s preferences for the product. Beer is unique in particular reference to its
consumption because of its wide variety of brands and high volume of consumption.
This study will be precedence for the subsequent studies, which could be undertaken in this
category. This study elicits various opinions attitudes, views of consumer preferences towards
beer brands. A Thorough research is done for making various observations and finally drawing
the recommendation for beer industry as a whole.

Some of the important findings are


1. Majority of the beer drinkers are in the age group of 22 to 27 ages.
2. It is found from the study that drinkers spend around 100 to 300 rupees on beer monthly
3. Majority of the consumers responded are from the middle class
4. From the survey it is found the respondents are aware of the products by trying it
themselves.
5. Brand image plays a major role in the buying decision of beer.
6. It is found from the study that alcoholic drinkers start their drinking habit from beer and
slowly moves towards other alcoholic drinks.
7. Majority of the respondents rate alcohol content, flavor price are the important while
making purchasing decision.
8. Majority of the respondents will buy the beer in the single bottle or can and only few
prefer in 6 packs
9. Majority of them feel 3% to 6% of alcohol is good for the beer.
10. Majority of the respondents will usually have the beer in bar rather in homes.
11. Majority of the respondents feel that the taste will make the difference between ideal
beer and the other beer.
12. Majority of the respondents will have beer once in week or twice in the week but they
do not drink they beer daily.

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Research Gap:

The previous researches done at international level have dealt with issues like
Importance of Alcoholic advertisement, Impact of Alcohol Advertising Among Children
Who Watch Televised Sports, Consumer preference towards beer brand in Bangalore city,
Alcohol Advertising and Young People’s Drinking etc.
In the local research was conducted on “Promotional activities with special
Reference to the celebrity Endorsements (Alcoholic beverage products of the United Breweries
Company Ltd, Bangalore)” , To Increase the Market Share of alcoholic products of united
breweries limited in Bangalore city Segment.
In the recent times it was observed that United breweries ( India) Ltd had become
the leading alcohol and Spirit manufacturer in the world . It is worlds 2nd highest manufacturer
of the alcohol in the world. Now United breweries has the top position in terms of Spirit,
Beer and wine in Bangalore city. And the reason for this was that some of UBL’s
products are specially endorsed by the Great Celebrities like Akshay Kumar for
Bagpiper,Shilpa shetty for Romanov vodka,Vinod Kambli,Upendra,Darshan for
Kingfisher beer ,and it is following various surrogate marketing technique for various other
alcoholic products. To identify whether celebrity endorsement has any influence in the buying
behavior of alcoholic beverages of United Breweries, to find out whether celebrity
endorsement constitutes for brand recall and brand awareness. to study the influence of
celebrity endorsement towards the buying behavior of alcoholic drinks of United Breweries
it was very important to know whether the celebrity Endorsement is able to reach the
consumers. So a Research gap was created in this regard.

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RESEARCH DESIGN

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CHAPTER-3

RESEARCH DESIGN:

RESEARCH OBJECTIVES:
The research study was pursued mainly with the following objectives:

To identify whether celebrity endorsement has any influence in the buying behavior of
alcoholic beverages of United Breweries.
To find out whether celebrity endorsement constitutes for brand recall and brand
awareness.
To identify the fissures and faults in celebrity endorsement.
To study the influence of celebrity endorsement towards the buying behavior of
alcoholic drinks of United Breweries

PROBLEM STATEMENT:

Do the celebrity endorsements really work in promoting the product?

HYPOTHESES:
Ho: There is no Significance difference between students and employees who drink
Alcoholic drinks than the soft drinks.

H1: There is a significance difference between students and employees who drink Alcoholic
drinks than the soft drinks.

Ho: Celebrity endorsements dose not influence the buying behavior/consumer


preference formation in respect of alcoholic beverages. (Ps =P)

H1: Celebrity endorsements greatly influence the buying behavior/consumer preference


formation in respect of alcoholic beverages. (Ps < P)

Ho: There is no significant difference between observed and expected number of


respondents who think that brand ambassadors for UBL’s Alcoholic Drinks
are important. (Ps =P)

H1: There is significant difference between observed and expected number of respondents
who think that brand ambassadors for UBL’s Alcoholic Drinks are important. (Ps < P)

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RESEARCH METHODOLOGY:
formation process through celebrity endorsements The research study first examines
the various facets of celebrity endorsements and the impact on the purchase behavior of the
Alcoholic beverage products. A thorough literature survey has been made in light of all the
things surrounding the celebrity endorsement. Then a survey is taken among the general public
with a sample to arrive at several conclusions regarding the impact of brand ambassadors
towards the purchase behavior of Alcoholic beverage products.
The study can well be described as qualitative, descriptive, and empirical. As
qualitative research, it will study the phenomenon of celebrity endorsements. As a descriptive
research, the study will deal with the impact of celebrity endorsements on the buying
process/consumer preference formation. It finds facts. As an empirical study, it will unzip the
customer’s experiences and value judgments in the customer preference

SAMPLE SIZE:

The data taken for study is a convenient sample of 36 Students from different college to
representing the youth of today and 64 various Government and Private sector employees from
different companies like ,ABB,KPTCL,Accenture,etc so that a proper conclusion can be
reached. The target is respondent aged between 18 to55.

INSTRUMENTATION TECHNIQUES

The questionnaire technique is used for the survey and the reasons for using this approach are
· It covers wide area
· It is not an expensive affair
· Original data could be obtained
· It is free from all bias
· Easy to tabulate and understand

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DATA COLLECTION TOOLS:


Primary data was collected through questionnaire; a structured questionnaire was used to
collect data and questionnaire comprised of both open-end and close- end questions. Relevant
and valuable inputs have also been collected from individual customers, who make their
purchases based on celebrity endorsements. The responses have been cross-checked through
pilot study.
The secondary has been collected through thee available literature in, books, journals and
websites. 

DATA ANALYSIS
The data has been subjected to rigorous quantitative analysis through such statistical tool as
chi-square test which has enabled us to assess the critical components of customer preference
formation through celebrity endorsements.

RESEARCH LIMITATIONS:

Our research investigation is beset with the following constraints:


Time and resource constraints
At the micro level, the scope of our research investigation is restricted to only one
company in Bangalore City
Bias/prejudice creeping into the responses of the respondents.
Limited sample size of customers, but, in our opinion, it is adequate enough to make
valid projections

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CELEBRITY
ENDORSEMENT

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CHAPTER-4

BRAND AMBASSADORS/CELEBRITY ENDORSEMENT:

There is a management saying that when the product is good you no longer have to be a very
good marketer.. But the saying is soon becoming outdated. There are many product categories
and many brands flooded in the market in each category. Hence attributes like quality, value for
money alone doesn’t count. There has to be an effective media to make the product reach
towards the customer. The media here can be termed as the celebrity who endorses the product.
When a product is being endorsed by a famous celebrity then it will result in better brand recall
and better brand awareness. People also start associating their status symbol to that of the product
that they consume and the celebrity associated with it. Hence in many ways the company can
capitalize on celebrity endorsement. That is the reason why companies shell out millions to
promote their product with the celebrities.

DOES CELEBRITY ENDORSEMENT REALLY WORK?

Does celebrity endorsement really work? Theoretically yes, because the qualities associated
with the endorser are associated with the brand and the brand therefore remains at the top of the
consumer's mind. However one needs to realize that the impact of an endorser cannot be
sustainable in all product categories and in all the stages of brand life cycles. It really depends
upon the type of product. If it is a 'functional brand', then the product itself is the hero. Here
any celebrity association with the brand without corresponding performance of the product will
not be sustainable. While incase of 'image brands', like the categories of soaps, soft drinks,
cigarettes etc., where it is difficult to distinguish between the products, celebrity endorsements
help to distinguish between the brands at an emotional level. A research conducted by
Synovate7, a global market research firm, revealed that 47% people would be more likely to
buy a brand that was endorsed by their favorite celebrity.
Pepsi Co. has used a variety of celebrities including Aishwarya Rai, Hrithik Roshan, Amitabh
Bachchan, Kareena Kapoor, Rahul Khanna, Fardeen Khan, Sachin Tendulkar etc. Amongst
advertisements featuring celebrities, Pepsi tops the heap with the highest recall of 70%, while
arch rival Coke is lower across all markets with 52% recall. This proves that Pepsi has really
exploited the use of celebrities in their advertisements and has worked. Whether Celebrity
endorsement has a positive or a negative impact on the brand is a debate that is open to
interpretation. But till the time the corporate world continues to foot fancy bills of celebrity

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endorsers and till consumers continue to be in fear of the stars, the party is not likely to break
up. And in the chapters to come it can be learnt more on this grounds and at the end
interpretation is on “Promotional activities with special Reference to the celebrity
Endorsements (Alcoholic beverage products of the United Breweries company ltd.Bangalore)”

BRAND MANAGEMENT:

The first thing to recognize when we talk about brands is that they are not just names, terms
symbols designs or combinations of these, although it is true say that such things differentiate
certain products and companies from others.
The strong brand apparently says more about itself than the product lurking behind it.
The brand forms an independent embodiment of the relationship between the seller and the
buyer and what they expect from one another. That makes the brand a very important
catalyzing element in the formation of strategy the additional ingredient that makes successful
brands is “personality” the brand can project a certain personality. Marketers have used
personality variables to segment markets. They endow their products.

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INCUBATION OF THE CONCEPT OF BRAND EQUITY:

The 1980 marked a turning point in the conception of brands. Management came to realize that
the principal asset of a company was in fact its brand names. A lot of writing followed this
incubation of the idea of .Brand Equity or the financial value of the brand. In fact, the
emergence of brands in activities which previously had resisted or were foreign concepts e.g. in
Industry, banking, the service sector etc vouched for the new importance of brands. This is
confirmed by the importance that so many distributors place on the promotion of their own
brand.

A strong brand is comprised of:

Benefits

Image Differe
ntiation

Brand
Presence
Quality

Distribu
tion Pricing

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Image. visual perception that supports brand and consumer preference


Benefits. consequences of your branding
Differentiation. your distinction from the competition
Quality. impacts customer satisfaction, return business, growth
Pricing. a component of value and suggestion of quality
Distribution. availability implies (non)exclusivity
Presence. visibility in media leads to brand recognition 
 
Brands vary in the amount of power and value they have in the market place. David Aaker
distinguished five levels of customer attitude towards their brand, from lowest to highest
namely:
i. Customers will change brands, especially for price reasons.
ii. Customer is satisfied. No reason to change the brand.
iii. Customer is satisfied and would incur costs by changing brand.
iv. Customer values the brand and sees it as a friend
v. Customer is devoted to the brand.
Brand equity is highly related to how many of a brand’s customers are in Classes 3, 4 and
5.Moreover it is also, related, according to Aaker, to the degree
• Brand name recognition
• Perceived quality of brand
• Strong mental and emotional association
• Other assets such as patents, Trademarks and emotional associations.
Brand Equity is therefore an intangible asset i.e. it cannot be seen, tasted, heard or smelled
before it is bought.
Example:
According to a study conducted in 2006, about 84 percent of the market value of ten of the
leading FORTUNE 500 companies was attributed to intangible assets. Similarly an indicative
analysis by the agency Price Waterhouse Coopers, of listed companies with a turnover of more
than Rs. 100 crores, identified 25 companies which in today’s market command a market value
which is more than 4.5 times the book value of tangible assets.

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A Brand is more than a Product


Chart: Chart showing that a Brand is more than a product

Brand Brand
Personality
Organizati Symbols
onal
Associatio
n
Scope P
Attitudes R
Country of Brand/
Uses O Customer
Origin Relationship
Quality/ Value D
Functional U
Benefits CT

User Self-
Imagery Expressive
Benefits
Emotional
Benefits

BRAND IMAGE:
Brand image creates value principally by projecting an image. While they may be based on an
extraordinary product, these brands are distinguished from the competitors because buyers see
them as offering a unique set of association or image. Brand image are often created in
categories where products are relatively undifferentiated or quality is difficult to evaluate (I.e.
wines, medical or consulting services) or where under such circumstances, images attached to
the brand add value in terms of distinguishing it from other brands by serving them as a badge
informing others the one group. Membership or accomplishments in either case it is the set of
images attached to the brand that define the brand’s
Uniqueness and create symbols that are highly valued by buyers.

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Brand image may be created in many ways as


1. By adding product features that evoke images;
2. By making emotional connection with buyers;
3. By associating a brand with particular types of users; and/or by clever advertising
campaigns.
Brands are successful because people prefer them to ordinary products. In addition to the
psychological factors already mentioned, brands give consumers the means whereby they can
make choices and judgments.
Based on the experiences customers can rely on chosen brands to guarantee standards of
quality and service, which reduces the risk of failure in purchase. Smart companies now
responsive to the criticisms, in real time and of making sure the brand is consistent and is as
good as it can be wherever it shows up, and even after the sale has been made tools the sales
people use to sell it, public efforts and follow up customers service all must reflect brand
values impart a consistent brand image

SEGMENTATION MARKETING:

The first step in developing a segmentation strategy is to select the most appropriate
base on which to segment the market.
Geographic Segmentation:

In this, the market is divided by the location. The theory behind this strategy is that people who
live in the same area share some similar needs and wants and that these needs and wants differ
from those people living in other areas.
Some regional consumption differences can be accounted for by climate. At the same time
marketers have observed divergent consumer purchasing patterns among urban, suburban and
rural areas. For example if I consider my project case, it is seen that many urban people beer
when compared to other rural areas
Demographic Segmentation:

Demographic characteristics such as age, sex, marital status, income, occupation and education
are most often used as the basis for market segmentation. In my study, income, education and
occupation play a major role in consumer preference for beer. Education, income and
occupation tend to be closely correlated in almost a cause-and-effect relationship. Insights on
media preferences tend to support the close relationship among income, education and

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occupation.
Psychological / psychographics segmentation:

Psychological characteristics refer to the inner or the intrinsic qualities of the individual
consumer. Consumers may be segmented in terms of their needs and motivations, personality,
perceptions, learning, level of involvement and attitudes. Psycho graphic research focuses on
the measurement of activities, interests and opinions. On their most common form,
psychographic studies use a battery of statements designed to identify relevant aspects of a
consumer’s personality, buying motives, interests, attitudes, beliefs and values.
Socio cultural Segmentation:

Social class is a potential market segmentation variable. The concept of social class implies a
hierarchy in which individuals in the same class generally have the same degree of status, while
members of other classes have either higher or lower status. Studies have shown that
consumers in different social classes vary in terms of values, product preferences and buying
habits.
Related segmentation:

Awareness status encompasses the notion of consumer awareness, interest level or buyer
readiness. Marketers have to determine whether potential consumers are aware of the product,
interested in the product or need to be informed about the product. Particularly many people are
not aware of difference between granite and marble. So the marketers should make them to
understand the product and its characteristics and in what way it is better to other ceramic
products.

MOTIVATION:

It is the driving force within individuals that impels them to action. This driving Force is
produced by a state of uncomfortable tension, which exists as the result of an unsatisfied need.
All individuals have needs, wants and desires.
The individual’s subconscious drive to reduce need induced tension results in behavior that he
or she anticipates will satisfy needs and thus brings about a more comfortable state.
Motivation is a highly dynamic construct that is constantly changing in reaction to life
experiences.

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• Needs and goals are constantly changing.


• Needs are never fully satisfied.
• New needs emerge as old needs are satisfied.
• Success and failure influence goals.
• Substitute goals.

According Marlow’s hierarchy of needs, consumer preference for granite will come under
egoistic needs. Inwardly directed ego needs reflect an individual needs for self-acceptance, for
self esteem, for success, for independence, for personal satisfaction. Outwardly directed ego
needs include the needs for prestige, for reputation, for status, for recognition from others.
PERCEPTION:

It is the process by which individuals select, organize and interpret stimuli into a meaningful
and coherent picture of the word; perception has strategy implications for marketer, because
consumers make decision based on what they perceive, rather than on the basis of objective
reality. Just as individuals have a perceived self-image as a certain kind of person, so, too, do
products and brands have images (i.e. Symbolic meanings) for the consumer? The perceived
image of a product or service (i.e. positioning) is probably more important to its ultimate
success than are its actual physical characteristics.

Perceived quality:

Consumers often judge the quality of a product or service on the basis of a variety of
informational cues; some are intrinsic to the product (e.g.; color, size, flavor, aroma) while
others are extrinsic (e.g. price, store image, brand image, service environment) In choosing the
granite products consumers always use its characteristics such as sustenance against wear and
tear, hardness, colors and patterns. In absence of direct experience or other information
consumers often rely as an indicator of quality.

Price / Quality Relationship:

Price is considered to be an indicator of quality. One of the dangers of sales pricing for retailers
is that products with lower prices may be interpreted as reduced quality.

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Consumer’s imaginary extends beyond perceived price and store image to the producers
themselves. Manufacturers who enjoy a favorable image generally find that their new product
accepted more readily than those of manufacturers with less favorable or “neutral” images.
The marketers should concern with actual consumer purchasing patterns, with consumers
beliefs and opinions concerning their brands and competing brands, and with knowing how
important the product is to the consumer. Developing a highly consistent market share of
brand-loyal consumers is the ultimate goal of marketing strategy. Discovering how consumers
learn about brands and become attached to certain brands assist markets in achieving this goal.
Brand equity:

Brand equity refers to the inherent value a brand name has in the market place.
Marketers are consolidating their brands to enhance brand equity and to encourage brand
loyalty in the face of proliferation of private brands. For marketers, the purpose of
understanding how consumers learn is to teach them that their brand is best, and to develop
brand loyalty. The consumers search for alternatives is influenced by self-image, interpersonal
influences and attitudes. Each individual has a perceived self-image (or multiple images) as a
certain kind of person with certain traits, habits possessions, relationships, and ways of
behaving. Consumers frequently attempt to preserve enhance alter or extend their self-images
by purchasing products or services and shopping at stores believed to be consistent with the
relevant self-image and by avoiding products and stores that are not.
Attitude:

It is learned predispositions to behave in a consistently favorable or unfavorable way with


respect to a given object (e.g. a product category, a brand, a service, an advertisement, a retail
establishment).The attitude towards-the-ad models examine the influence of advertisements on
the consumer’s attitudes towards the brand. Internal Variables like social, cultural, family,
communication and persuasion are explained below.

Social class:
It is usually defined by the amount of status that the members of a specific class posses in
relation to members of other classes. Social class membership often serves as a frame for the
development of consumer attitudes and behavior.
Research has revealed social class differences in clothing habits, home decoration, leisure
activities and savings, spending and credit habits. Thus astute marketers tailor specific product
and promotional strategies for each class target segment.

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Occupation is a widely accepted and probably the best-documented measure of


Social class, it implies occupational status. Marketers frequently think in terms of specific
occupations when defining a target market for their products. Education is another commonly
accepted approximation of social class standing. Generally speaking, the more education a
person has, the more likely is his pay and can afford for any expensive product such as granite
flooring for his house.

Culture:

Culture is defined as the sum total of learned objects, values and customs that serve to regulate
the consumer behavior of members of a particular society. Culture is dynamic and gradually
and continually evolves to meet the needs of society. It is learned as a part of social experience.
Family:

Family is a major influence on the consumption behavior of its members; it is also the prime
target market for most of the products and product categories. The members of a family assume
specific roles and tasks in their everyday functioning. Such roles and tasks extend to the realm
of consumer purchase decisions.
Marketers are interested in the relative amount of influence that a husband and a wife when it
comes to a family consumption choices. Most husband wife influence studies classify family
consumption decisions as husband dominated, wife-dominated, joint and automatic. Studies
that have examined both the extent and nature of husband-wife influence in family decisions
have found that such influence is fluid and likely to shift, depending on the specific product or
service, the family structure orientation, and the specific stage in the decision making process.

Communication:

Communication is defined as the transmission of message from a sender to a receiver through a


channel or medium of some sort. It is a bridge between marketers and consumers and between
consumers and their sociocultural Environments.
Consumer’s decision to purchase or reject a product is the moment of final truth for the
marketer. It signifies whether the marketing strategy has been wise, insightful and effective or
whether it was poorly planned and missed the mark. Thus marketers are particularly interested
in the consumer’s decision-making process. For a consumer to make a decision, more than one
alternative must be available.

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FACTORS DRIVING THE CELEBRITY’S IMPACT ON THE BRAND


ATTRIBUTE MATCHING

Impact of the celebrity used on the brand will be determined by the process chosen to select the
celebrity for the concerned product. The kind of celebrity chosen will depend on the objective
of endorsing and the kind of product. Attribute matching is one of the most important factors
when it comes to choosing a celebrity for the above objectives and also has a positive or
negative impact on a brand.

OBJECTIVE OF ENDORSING:

Breaking the clutter: When the objective is to break the clutter among the deluge of
advertisements, the impact on the brand will depend on the kind and quality of the message
conveyed to the consumer. The celebrity is used to garner attention to match the attributes.
Endorsement for this particular reason might give you the brand recall hence having significant
positive impact on the brand. The celebrity should be used to catch the attention of the viewer
and associate him/her with the brand.

CELEBRITY USED TO REPRESENT OR PASS ON ATTRIBUTES:


The use of celebrity in such a situation should be linked with the objective and the strategies of
the organization promoting the product. If the objective is to portray leadership then the
celebrity chosen should reflect the same or else there would be no impact or possibly a negative
impact on the brand.
To achieve the objectives of the communication, attribute match-up should be done with great
care. The steps are as below: -
• Clearly define the objective
• Identify attributes of the product and the celebrity
• Match the attributes of the product Vs personality and decide
• which attributes need to be transferred from the celebrity to the
Design the right kind of advertisement considering the factors like exposure of the celebrity,
his image, other brands endorsed and attributes already exploited.

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KIND OF PRODUCT:

Apart from objective the kind of product is also important when it comes to matching the right
attributes. For example: If it's a high involvement product, the right message from the celebrity
will have a significant impact and a consumer might wait for sometime if the product is not
available readily. On the other hand if it's an impulse product an attractive celebrity might play
a big role depending upon the availability of the brand at the outlet when the consumer wants
to buy it. So it becomes the integrated work of a supply chain to support the positive affects of
the celebrity endorsement.

CELEBRITY POWER:

Tom et al. (1992) suggest that celebrities possess different types of social powers - expert
power, referent power, legitimate power, coercive power and reward power - that enable them
to have an effect on consumers. Apart from that a celebrity attains a power to influence the
consumers by his/her various attributes. We shall classify these attributes into: -
• Source Credibility
• Source Attractiveness

Source credibility: It is the extent to which the recipient perceives the source as having
relevant knowledge and/or experience and therefore trusts the source to give unbiased
information. From a study by Holland and Weiss, credibility has two components has two
components that effect believability and persuasiveness: -
• Expertise
• Trustworthiness

Source Attractiveness: Society throughout the ages has determined that particular features of
persons are attractive. It is therefore to be expected that physical attractiveness as a source
attribute would affect the receptivity of the message. Two discrete elements of source
attractiveness are generally identified by researchers:
• Likeability
• Similarity.
Trustworthiness, likeability, attractiveness and personality of the celebrity endorser play an
important role in attracting attention to both the endorsement and the brand, fulfilling a

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requirement in successful advertising. Once attention had been gained, other source
characteristics could come into play and have a more persuasive impact on the audience. The
source characteristics with the greatest impact on consumers' intention to purchase were those
of credibility and expertise.

THE EFFECT OF CARDINALITY:

The following observations can be made regarding number of celebrities and brands endorsed:
1 Celebrity 1 Brand –
The association between the two would be high but this also has a flipside as in over
dependence on one celebrity for brand success

1 Celebrity n Brands:
The audience may perceive the celebrity to possess little focus and may not be able to recall
the combination. But different brands may be harnessing different attributes of the celebrity, in
which case it is either baneful or beneficial to the celebrity depending on what effect
overexposure has on him. This case would again lead to confusion in the minds of the audience
who may fail to correlate the advertisement with the brand.
The effectiveness of the celebrity endorsement in such cases will depend on how
effectively the advertiser correlates and projects the attributes of the celebrity and passes on to
his product. From a study (Tripp, Thomas and Carlson, 1994) it was observed that a celebrity
who endorses more than one brand is generally perceived to be more credible with the
consumers than a celebrity who endorses only a single brand but on the other hand the
perceived likeability of a celebrity who endorses multiple brands is lower than celebrity who
endorses only one brand. On the other hand, consumers might become skeptical and accuse
them of slack endorsements. So this tradeoff should be handled by the advertiser efficiently and
effectively.

N. celebrities 1 Brand:
The brand is at an obvious advantage if all the n celebrities are in the scene
simultaneously. But sometimes these celebrities need to have a strong interlinking factor
amongst them as in "The Indian Cricket Team" endorsing Samsung, "Film stars with Youth
Appeal" Preity Zinta, Saif Ali Khan and Rahul Khanna for Lays. Nevertheless, multiple

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celebrities in distinct active endorsements may lead to low recall among the targets. According
to the attribution theory (Kelley, 1967), people assign causality to events on the basis of either
their own behavior or the behavior of others. In the context of celebrity endorsement
advertising, consumers might ask whether an endorser recommends a product because he/she
actually believes the positive characteristics of the product (an internal attribution) or because
he/she is paid for endorsing it (an external attribution). Since consensus is one of the attribution
cues, using multiple celebrities may create a consensus and help advertisers to positively affect
consumer perception. A brand has a wide range of consumers and sometimes the use of
multiple celebrities is needed to cover the whole target audience, though it must be made sure
that each celebrity's values reflects core brand values.
Studies have shown that multiple celebrities help marketers reduce audience boredom which
may be caused by a single celebrity. However it should be assured that "each and every
celebrity possesses compatibility

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PART ‘B’
(SURVEY FINDINGS)

INUSTRY PROFILE.

DATA ANALYSIS AND INFERENCES.

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INDUSTRY PROFILE

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CHAPTER-5

INDUSTRY PROFILE:

INDIAN ALCOHOL INDUSTRY

The Indian Alcoholic& beer sector has seen a hectic merger and acquisition activity recently
with 12 breweries changing hands in the last 10 years. However, this is not the end of the
consolidation wave in the Indian industry. Rather, some of the largest beer players across the
world are still eyeing India with a view to gaining a share of the country’s rapidly growing beer
consumption.
An attractive beer market

The Indian beer market was estimated to be 9.2 million hectoliters (hl) in 2002-03. As seen in
figure 1, beer consumption has been growing rapidly at a CAGR (Compound Annual Growth
Rate) of 8 per cent over the last 3 years, while growth in 2004-05 was 10 per cent Indian
growth rates compare favorably with the global beer industry, which grew by about 2.9 per
cent in 2006-07 Apart from providing strong growth, India also provides attractive profit
margins due to the consolidated nature of the industry.
A comparison between China and India, for example, reveals that the Chinese beer market is
marked by intense competition, with several players being marginalized. In China there are
about 400 brewers, of which the top 10 account for only 45 per cent of the market. This has
resulted in low profit margins for the Chinese beer players. In contrast, the top two beer players
in India account for about 75 per cent of beer sales in India and the industry stands a chance to
see more consolidation in the near future. The effect of this consolidation can be seen in the
fact that beer prices in India Rarely go down with the competitive pressures of new product or
brand launches. In the past, whenever beer prices have gone down, it has been due to either the
Lowering of duties by the government or the deregulation of distribution (leading to lower
margins for the distribution channel partners). In neither scenario have the margins or revenues
of beer manufacturers been affected.

Growth prospects for the Alcoholic beverage industry in India


The Indian Alcoholic and beer market has been growing rapidly over the last 10 years, due to
the positive impact of demographic trends and expected changes, like:

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Rising income levels:

India is home to nearly one-sixth of the global population and is one of the most attractive
consumer markets in the world today. Various research studies have shown that a rise in the
income levels has a direct positive effect on wine, beer, whisky, rum, zin, vodka and scotch
consumption. The National Council for Applied Economic Research (NCAER) projects India’s
‘very rich’, ‘consuming’ and ‘climbers’ classes to grow at a CAGR of 15 per cent, 10 per cent
and 2 per cent respectively. With this growth in income levels, Indian beer consumption is
expected to continue growing, at the very minimum, at the growth rates witnessed in the last
decade.
Changing age profile:

As a consequence of the high birth rates prevalent until the 1990s, a large proportion of the
Indian population is in the age group of 20-54 years. This age group is the most appropriate
target for Alcoholic beverage marketers.
This population trend will give a further boost to the growth of Alcoholic drinks consumption
in India.

Changing lifestyles:

A deep-seated traditional social aversion to alcohol consumption has been a traditional feature
of the Indian society. However, as urban consumers become more exposed to western
lifestyles, through overseas travel and the media, their attitude towards alcohol is relaxing.
Social habits are undergoing transformation as mixed drinks are becoming more popular. The
greatest evidence of this trend is the increase in beer consumption among women. More and
more women are consuming beer the penetration in metropolitan areas is almost twice as high
as the penetration in other large cities – implying that the greater tolerance towards alcohol
consumption in metropolitan areas facilitates the consumption of beer. With increasing
urbanization, this acceptance is only going to rise. Reduction in beer prices: The Indian
consumer typically values an alcoholic beverage on the basis of its ‘kick’ factor versus its
price. The following two factors therefore, affect the market for beer. Firstly, as most states do
not have a differential tax structure based on the alcohol content, strong beer.

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SURROGATE ADVERTISING:

Liquor companies advertise their drinks in the form of surrogate advertisements. In this type of
advertisement, a product other than the banned one is promoted using an already established
brand name. Such advertisements or sponsorship help in brand building and contribute to brand
recall. The product shown in the advertisement is called the (Surrogate). The surrogate either
resembles the original product or could be different product all together. But using the
established brand of the original product. The sponsorship of sports/cultural/leisure events and
activities using liquor brand name also falls in the category of surrogate advertising.

RECENT CHANGES IN SURROGATE ADVERTING LAWS:

In June 2002, the Information and Broadcasting (I&B) Ministry of India ordered leading
television (TV) broadcasters to ban the telecast of two surrogate ads of liquor brands
McDowell’s NO.1 and Gilbey’s green label the ministry also put some other brands – Smirnoff
vodka, shark teeth vodka,Ramanova,Hayward’s 5000, royal challenge ,Signature, whiskey and
kingfisher beer – on a watch list’ the surrogates used by these advertisements ranged from
audio cassettes, CDs and perfumes to golf accessories and mineral water. By august 2002 the
I& B ministry had banned 12 advertisements.
Leading satellite TV channels including Zee, SONY, STAR and Aaj Tak were issued
show cause notices asking them to explain their reason for carrying surrogate liquor
advertisements. The channels were asked to adhere strictly to the cable Television Regulation
Act 1995 (Cable TV Act, 1995). As a result, Zee and STAR stopped telecasting the
advertisements; Aaj Tak and Sony soon followed suit. In addition, the I&B Ministry hired a
private monitoring agency to keep a watch on all advertisements for violations of the Act.
These developments led to heated debates over the issue of surrogate advertising by liquor
companies. Though the liquor companies involved protested strongly against the I&B
Ministry’s decision, they had no choice, but to comply with the regulations. Analysts remarked
that the government’s policy was hypocritical.
One said, “On the one hand they allow these ‘socially bad’ products to be manufactured
and sold (in order to garner revenues) and then they deny the manufacturers the right to
propagate knowledge of their products in order to drive sales. Meanwhile, the government also
seemed to be in dilemma. On the one hand, it had to encourage the sales of liquor and tobacco

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because they were the highest taxed sectors of the Indian economy. On the other hand there
was also the need to take high moral ground and reduce the consumption of such products.

ALCOHOL MANUFACTURING COMPANIES IN INDIA:


1. SHAW WALLACE:

As one of India' s foremost liquor manufacturers and exporters with a host of brands that have
captured the imagination of alcohol consumers in the country and abroad, we believe it is
superior quality that effectively defines and underlines our primary goals.
For the last 116 years, we have carefully cultivated and abided by a rock solid character that
has been synonymous with a tradition of excellence setting and upholding the highest standards
is it in the manufacture of our products or in our customer focus.
Brands:

Shaw Wallace and Co, while constantly creating and unveiling new brands to tap fresh
markets, is also aware of the importance of maintaining the impeccable quality and equity
building of its existent brands.
Shaw Wallace and Company Limited is perhaps one of the few members of the alcohol and
beverages industry in India which reports a sale of 11 liquor bottles every second. While the
organization is safely entrenched as one of the liquor giants of the country and by far one of the
most promising players in the international arena, Shaw Wallace continues to speak the
language of change and development in keeping with changing tastes and trends.
With a view to keep up with the demands of the consumer, Shaw Wallace has re-launched
many of its old products like Antiquity, Royal Challenge, Director's Special (DSP), DSP Black,
and Old Tavern Whisky sprucing them up with revolutionary new packaging. White Mischief
vodka and London Lime gin have also undergone a revamp and a re- launch. From the
international portfolio, Shaw Wallace, in association with Kyndal, unveiled a plethora of new
products being introduced for the first time in India. The range includes Find laters, one of
Scotland' s most well- known Scotch brands, Vladivar vodka, Veba, UK' s fastest growing
ready to drink low strength alcohol beverage and Papillon.
A range of Shaw Wallace Bottled in Origin French Wines including red, white and sparkling
wines and Golden Mist, a range of red and port wines have also been introduced to cater to the
budget conscious Indian consumer.

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2.SABmillar COMPANY:

The South African Breweries Limited is a holding company invested in and taking management
responsibility for a portfolio of businesses, principally engaged in meeting beverage
consumers' needs. Beer is the major profit contributor, but an important balance is provided by
interests in carbonated soft drinks and other complementary beverages, supplemented by
strategic investments in hotels, gaming and selected mass consumer service Largest South
African industrial company on the Johannesburg Stock Exchange
• Over 80 000 people employed throughout the Group
• Market capitalization exceeds R50 billion
• Fifth largest brewer in the world
• Products compete internationally in over 40 countries
• R25 billion invested in total assets
• Group beverage sales total 60 million hectoliters

3. Mohan Me akin:

History Of Company YEAR EVENTS 1934 - The Company was Incorporated at Simla Hills.
The Company was formed to take over the business in India of Dyer Me akin & Co. Ltd.,
which went into voluntary liquidation in September. The Company’s object is to manufacture
beers, I.M.F. spirits, abrasive products, yeast, malt extract, fruit juices, carbon-di-oxide gas etc.
Presently, the Company is engaged in the production of alcoholic products-whiskies, rums,
brandies, vodka, gins and beers and nonalcoholic products - juice, vinegars, extracts, mineral
and water and breakfast foods.
The company exports alcoholic products, textile fabrics and made-ups, leather Garments and
consumer durables.

4. Skol Breweries:

History Of Company YEAR EVENTS 1969 - The Company was incorporated on 25th
September, at Mumbai. The company was promoted by Shaw Wallace and Co. Ltd. The
promoters also obtained licence free of cost from SKOL in the Company’s title. The object of
the company is to manufacture beer.

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5. MYSORE BREWERIES:

History Of Company YEAR EVENTS 1970 - The Company was incorporated. The company
manufactures beer like ale, draught, porter & layer.
1978 - During the year the company introduced a new brand viz "7 Star Super Strong Lager
Beer". The company also manufactures well known and popular brands of beer viz pals, Pals
Premium, Knockout, Cobra, etc. The company is in collaboration with M/s CEREKEM of
Denmark. 1981 - MBL set up Pals Distilleries to produce whiskies and other alcoholic
beverages

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COMPANY PROFILE

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COMPANY PROFILE:

INTRUDUCTION:

UNITED BREWERIES

History:
It all began with 5 breweries in South India. The oldest of which, Castle Breweries, dated back
to 1857. United Breweries, as these breweries were named in 1915 has come a very long way.
Soon afterwards, the sight of bullock carts carrying huge barrels or 'Hog's heads' containing
beer became a household sight. These carts wheeled their way to the customers, including
British troops, living in and around Madras, Bangalore and the Nilgiris. Almost immediately,
the Brew from UB became a favorite, especially with the British troops. So began the history of
Beer in India. And the history of Beer Division of United Breweries!
The company was bought by late Mr. Vital Mallya in 1947, and since Than has never
looked back. Today each one of the 32,000 Beer outlets in India sells one brand or the other
from United Breweries.

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CORPORATE PROFILE:

The beginnings of what is today The UB Group are rooted in the flagship company, United
Breweries Limited, (UBL) also referred to as the Beer Division. Led by Mr. Kalyan Ganguly,
President & Managing Director, it has a 40% market share in the country McDowell Alcobev
Pvt Ltd., (MABL), is the new Joint Venture Company in which UB and Scottish & Newcastle
of the UK have a 40% stake each, and Mr. Ravi Jain, Managing Director of the company and
his team has a 20% stake. United Breweries Limited, the flagship company of the UB Group,
has an association with the brewing dating back over five decades, starting with 5 breweries in
South India in 1915. From bullock cart-loaded barrels or 'hogsheads' of frothing ale, the Beer
business as gone on to become the undisputed 'king' in the Indian beer mark Here, innovative,
creative and aggressive marketing is complemented by a strong distribution network. A
management focused on building brand equity on one hand and exploiting it to the hilt on the
other.
A concerted emphasis on quality. The Division today boasts an impressive spread of 11
own and 15 contract manufacturing facilities throughout the Country.
Quality and hygiene are the key elements of the United Breweries' manufacturing
philosophy. To this end, the Central Scientific Laboratory (CSL), headquartered at Ban galore
sets standards for all its breweries. Quality Management Systems laid out along the lines of
ISO 9000 are strictly adhered to, controlling quality at every stage of production, from raw
materials to the end product. Also, besides controlling the production process, the CSL
analyses the Company's beer taken off market shelves all over the Country, the competition's
beers and beers across the world.

These beers are tested as per the standards laid down by the European Brewery
Convention on 40 different parameters. By these standards, United Breweries' beers don't just
equal, but even surpass, several Dutch and American beers.

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Its flagship brand 'Kingfisher', has achieved international recognition consistently, and has
won many awards in International Beer Festivals. Kingfisher Premium Lager beer is currently
available in 52 countries outside India and leads the way amongst Indian beers in the
International market. It has been ranked amongst the top 10 fastest growing brands in the UK.
In addition, UBL has also entered into mutli-faceted strategic alliance with Scottish &
Newcastle Plc (S&N), an international brewery major, with $6 billion in revenue and a market
capitalization of $5.4 billion. This alliance, apart from having a joint venture in India, will
allow S&N to market it International brands like Kronenbourg in India, while UBL will utilize
S&N's global network to further globalize its Kingfisher.

Mission Statement
• To be the recognized leader in our target markets
• To be the preferred employer wherever we operate
• To recognize the value of our human assets
• To be the partner of choice for customers, suppliers, and other creators of
Innovative concepts.

PRODUCTION:
Quality and hygiene are the key elements of the united breweries manufacturing philosophy.
To this end, the central scientific laboratory (CSL) at their headquarters at Bangalore is manned
by highly qualified scientists and equipped with sophisticated instrumentation. The CSL sets
standards for all its breweries. A manual has been developed laying down quality management
systems on the lines of ISO 9000. So quality is controlled at every stage of production, from
raw materials to the end product.
Besides controlling the production process, the CSL analyses the company's beer taken
off market shelves all over the country, the competition's beers and beer across the world.
These beers are tested as per the standards laid down by the European Brewery Convention on
40 different parameters with particular attention paid to apparent extract, bitterness, color,
dactyls, ethanol, foam stability and haze. By these standards, United Breweries' beers don't just
equal, but surpass several Dutch and American beers

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PREMIUM BRANDS:

United Spirits Ltd Premium Brands like Antiquity, Royal Challenge, Signature,
Romanov and White Mischief are a huge range in India and abroad. The Combined market
share of USL in premium segments is 63%.

In the Regular segments USL has close to 55% share of the market. USL’s Romanov
Diet Vodka and flavored Vodkas like Green Apple and Orange are doing extremely well. The
prestige vodka segment has evolved in the last 18-24 months. Romanov Red has clocked a12%
market share already and it will acquire leadership position soon.

Royal Challenge from the Shaw Wallace portfolio has undergone extensive packaging
change as well as an upgraded blend that caters to consumer demands and tastes.

USL’soldest scotch brand Black Dog remains true to its 126 years old heritage. Black
Dog deluxe 12 year old and Black Dog Centenary 8 year old launched to commemorate 100
years of Black Dog remains the oldest scotch whiskies bottled in India. Antiquity seductively
smooth and rich taste of the scotch. Such heritage has great appeal among Indian consumers
with Block Dog Deluxe 12 years old enjoying close to 45% market share in its segment.

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POWER BRANDS:

Some of the USL’s products sell in the millions and are world leaders in their category.
Some of them top the lists of the best know brands in India. Together they contribute 70% to
USL’s portfolio and they are called as Power Brands. The McDowell’s No.1 Whiskey, Brandy
and Rum are elements of this portfolio of Power Brand.

McDowell’s No.1 Whiskey:


McDowell’s No.1 Whiskey is India’s second largest Whiskey Recorded a retail value of
Rs.8300 crore in the year 2008-09. It sold 31.59 million cases across Whiskey, Brandy and
Rum categories to notch up this record. The retail value of the McDowell’s No.1 family slots it
in the eight places in brand ranking globally. McDowell’s No.1 Whiskey mopped up a retail
value of $835 million while McDowell’s Celebration Rum realized $340 million and
McDowell’s No.1 Brandy garnered $335 million.

Bagpiper Whiskey:
The other USL brand in Impact International’s 2008 list of the top 100 Brands. The
retail value of Bagpiper Whiskey is $745 million.USL has promoted the brand via Bollywood
star endorsements and upgraded the packaging over the years to international Standards.

DSP Block:
DSP Black is another major player that dons an international packaging.DSP Black has
been positioned as a brand that provides avenues to break the shack lets of Predictability and
enthuse life. DSP Black is launched in 1988; this premium extension of Director’s Special
Whiskey is the fastest growing Whiskey in the Regular and Prestige segments.

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McDowell’s No.1 Celebration Rum:


McDowell’s No.1 Celebration Rum has fared extremely well too, picking up from 2%
market share to 43% in a highly fragmented market.
This is largely due to the high quality standards that McDowell’s No.1 Rum provides its
consumers.

USL ON THE VINE TRAIL:


In the year 2006 USL acquired 155 years old Bouvet Ladubay (France) to enter into the luxury
segments of the wine industry with a aim to make wines available across all price points as
well as it make it more accessible.
USL’s united vintners have been importing wine from South Africa, Australia, New Zealand,
France and other countries.

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DATA ANALYSIS

AND

INFERENCES

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CHAPTER-6

DATA ANALYSIS AND INFERENCES

A. TABLE SHOWING THE SOURCE OF DATA COLLECTION.

Students Employees(Govt/ Pvt)


36 64

Students
Employees

Fig No.3. Pie chart showing Sources of data collection

Source: Field Investigation

INFERENCE:
The data taken for study is a convenient sample of 36 Students from different college to
representing the youth of today and 64 various Government and Private sector employees from
different companies like ,ABB,KPTCL,Accenture,etc so that a proper conclusion can be
reached. The target is respondent aged between 18 to 55.

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B. PREFERNCE OF ALCOHALIC DRINKS.

Preference Students(A) Employees(B)


Alcoholic Drinks 20 50
Soft Drinks 16 14
Total 36 64
A+B=100
Source: Field Investigation

Ho: There is no significance difference between students and employees who drink
Alcoholic drinks than the soft drinks.

H1: There is a significance difference between students and employees who drink
Alcoholic drinks than the soft drinks.

Test statistic: Chi-Square Test

Chi-Square Test = ∑(O-E)2


E

DATA: n=100
Alcoholic Drinks Soft Drinks Total
Students 20 16 36
Employees 50 14 64
Total 70 30 100

Calculation of Expected frequency:

Q1=36*70
100

Q1=25.2

Q2=64*70
100

Q2=44.8

Q3=36*30
100

Q3=10.8

Q4=64*30
100

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Q4=19.2

O(Observed) E(Expected) (O-E) (O-E)2 (O-E)2


E
20 25.2 (5.2) 27.04 1.07301
50 44.8 5.2 27.04 0.60357
16 10.8 5.2 27.04 2.50370
14 19.2 (5.2) 27.04 1.40833
∑(O-E)2 = 5.58861
E

Degree of Freedom=Row-1 *Colunm-1


= (2-1)*(2-1)
=1

Level of significance 5% X2 tab =3.841

INFERENCE:
Since the calculated value 0f X2=5.58861 is greater then the tabulated value of X2
at 5% level of significance, hence the Alternate Hypothesis is accepted at 5% level of
Significance.

Hence, there is a significance difference between students and employees who drink
alcoholic drinks than the soft drinks.

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C: TABLE SHOWING THE HABIT OF DRINKING.


2.1A
B
Particulars Respondents Percentage (%)
Daily 24 24
Weekly 56 56
Monthly 12 12
Occasionally 8 8
Total 100 100
Source: Field Investigation

60

50

40
Daily
30 Weekly
Monthly
20 Occasionally
10

0
Respondents

Fig No.4. Bar chart showing habit of Drinking

Source: Field Investigation

INFERENCE:
This table clearly shows that 24% of the consumers consume Hot (Alcoholic) Drinks daily,
56%of the consumers consume Hot (Alcoholic) Drinks weekly, 12% of the consumer
consumes Hot (Alcoholic) Drinks monthly and 8% of the consumers consume Hot (Alcoholic)
drinks occasionally.

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D. TABLE SHOWING THE BRAND AWERENESS AMONG ALCOHOLIC


DRINKS.

Particulars Respondents Percentage (%)


McDowell’s Whiskey 56 56
Kingfisher strong Beer 30 30
Khodeys whiskey 4 4
Others 10 10
Total 100 100

60

50
Mc.Whiskey
40
KF Strong Beer
30
KHODEY's
20 Whiskey
Others
10

0
Respondent

Fig No.5. Bar chart showing Brand awareness among the Respondents.

Source: Field Investigation

INFERENCE:
This table clearly shows that 56% of the respondents prefer to have UBL’s McDowell’s
Whiskey and Rum, 30% of the Respondents prefer to have Kingfisher Strong Beer (Most of
them are students), 4% of the respondents like KHODEY’s whiskey(Local Brand Alcohol) and
remaining 10% of the respondents prefer to have other Alcoholic Drinks.

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E. IMPORTANCE OF CELEBRITY ENDORSEMENT.

Ho: Celebrity endorsements dose not influence the buying behavior/consumer


preference formation in respect of alcoholic beverages. (Ps =P)

H1: Celebrity endorsements greatly influence the buying behavior/consumer preference


formation in respect of alcoholic beverages. (Ps < P)

Ps: sample population; Ps = 0.81


P : expected population P = 0.80

Level of significance 5% Ztab =1.645 (one tailed test)

Test statistic:
Z = | P - Ps |/√ PQ / n

DATA: P =0.80 Ps =0.85 n =100

√ PQ / n = 0.04
TEST: Z cal = | 0.80 - 0.81 |
0.04
= 0.01
0.04

= 0.25

Since Z cal < Z tab, Ho is accepted.

INFERENCE:
It is obvious from the analysis that there is no significant difference between observed and
expected number of respondents who think that Celebrity Endorsement is important. The rules
of marketing are changing. Although companies use several strategies to make products reach
the people, brand ambassadors also constitute one of the important attributes.

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F: TABLE SHOWING THE PREFERNCE OF PLACE TO DRINK


ALCOHOLIC DRINKS.

Particulars Respondents Percentage


Home 10 10
Bar/Pub/Restaurants 76 76
Parties 14 14
Total 100 100

80
70
60
Home
50
40 Bar/Pub/Restar
30 urants
Parties
20
10
0
Respondents

Fig No: 6. Bar chart showing preference of the place to drink.

Source: Field Investigation

INFERENCE:

This table shows that 10% of them prefer to have at Home, 76% of them prefer to have it in
bars/pubs/Restaurants/Clubs, and 14% of them prefer to have in Parties. In this segment, more
students prefer to have in pubs and restaurants whereas employees prefer to have in all other
segments

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G: IMPORTANCE OF BRAND AMBASSADOR FOR UBL’s


ALCOHOLIC DRINKS.

Importance No. of respondents


Most important 6
Important 52
Neutral 23
Less important 19
Not at all important 0

Ho: There is no significant difference between observed and expected number of


respondents who think that brand ambassadors for UBL’s Alcoholic Drinks are
important. (Ps =P)

H1: There is significant difference between observed and expected number of


respondents who think that brand ambassadors for UBL’s Alcoholic Drinks are
important. (Ps < P)

Ps: sample population; Ps = 0.81


P : expected population P = 0.80

Level of significance 5% Ztab =1.645 (one tailed test)

Test statistics Z = | P - Ps |/√ PQ / n

DATA: P =0.80 Ps =0.85 n =100

√ PQ / n = 0.04

TEST: Z cal = | 0.80 - 0.81 |


0.04
= 0.25
Since Z cal < Z tab, Ho is accepted.
That is Ps = P.

INFERENCE:
It is obvious from the analysis that there is no significant difference between observed and
expected number of respondents who think that brand ambassadors for UBL’s Alcoholic
Drinks are important (Ps =P).

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H: REASONS FOR SHIFT FROM ONE BRAND TO ANOTHER

The respondents were asked what was the major reason for shifting from their previous brand
and the response was as follows:

Reasons for the shift


No. of respondents
Non-availability 20
Offer/Price 10
New Entry 40
Taste 27
Others 3

40
35
30
25 Non‐availability
Offer/Price
20
New Entry
15 Taste
10 Others
5
0
Respondents

Fig No: 7. Bar chart showing major reasons to shift from one Brand to another brand.

Source: Field Investigation

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INFERENCE:

There are various reasons for shift from brand to brand. And it is obvious from the chart that
nearly 40% of respondents say that they would shift for just a change due to the entry of new
brand. About 27% of the respondents say that they would shift for seeking better Taste.20% of
the respondents say that they would shift because of non-availability of the brand. It can be
inferred that the brand loyalty status can have a shift. Since the market is fold with several
Alcoholic drinks brand there is more kind of chances that are available to the consumer to shift
from one brand to another

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I: BRAND AMBASSADORS AND ADVERTISEMENT, BRAND RECALL, BRAND


AWERENESS.

The respondents were asked what the chances that they will see a print ad/hoarding of a
Alcoholic drink brand if it is endorsed by icon and Recall the old ducts and Brand awareness
response was as follows:

Chances of buying No. of respondents


Very less 2
Less 9
Neutral 10
High 58
Very high 19

60

50

40 Verry Less
Less
30
Neutral
20 High
Very  High
10

0
Respondent

Fig No: 8. Bar chart showing Celebrity endorsement and chances of brand recall.
Source: Field Investigation

INFERENCE:
From the chart it can be clearly seen that about 19% of respondents say that there is a very high
and 58% high chances of viewing a print ad or a hoarding, given the ad is featured with their
favorite icon. Advertisement is one of the important modes for brand
Awareness and brand recall. Hence if the celebrity endorsement can do that effectively when,
then it will have a positive influence on the buying behavior, Brand recall, Brand awareness.
On the other hand only 9% say that there is less chance of viewing and another 2% say that
there is very less chance of viewing. And the remaining 10% remain neutral.

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J: BRAND AMBASSADOR AND PREFERENCE AMONG TWO


BRANDS HAVING SAME ATTRIBUTES.

The respondents were asked whether they will prefer to buy a particular brand among two
brands having same attributes because that brand is endorsed by their favorite celebrity. And
their response was as follows.

Chances of preference No. of respondents


Most unlikely 11
Unlikely 17
Neutral 20
Likely 48
Most likely 4

50

40
Most lUnikely
30 Unlikely
Neutral
20 Likely
Unlikely
10

0
.

Fig No:9. Bar chart showing preference among two brands having same attribute
Source: Field Investigation

INFERENCE:
It is obvious from the chart that here are mixed reactions. About11% of respondents say they
are most unlikely and 17% unlikely that they will prefer one brand among two if it is endorsed
by their favorite icon. On the other hand about 4% of respondents say they are most likely and
48% likely that they will prefer one brand among two if it is endorsed by their favorite icon.
Hence there is a mixed reaction from the respondents. About 20% remain neutral in the
response.

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K: IMPACT OF CELEBRITY ON ENDORSEMENT OF ALCOHOLIC


PRODUCT ON SOCIETY

The respondents were asked whether the Impact of Celebrity on Endorsement of Alcoholic
Product on the Society and their response was as follows.
1. High 43
2. Neutral 20
3. Low 37

45
40
35
30 High
25
Neutral
20
Low
15
10
5
0
Respondent

Fig No: 10. Bar chart showing the impact of celebrity endorsement of Alcoholic products on
society.
Source: Field Investigation

INFERENCE:
It is obvious from the chart that here are mixed reactions. About 37% of respondents say there
is Low impact of celebrity Endorsement on Society. On the other hand about 43% of
respondents say they are High Impact of Celebrity Endorsement on Society (Especially on
Children’s those who watch TV Regularly). Hence there is a mixed reaction from the
respondents. About 20% remain neutral in the response.

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MAJOR RESEARCH
FINDINGS
AND
RECOMMENDATIONS

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CHAPTER-7

MAJOR RESEARCH FINDINGS AND RECOMMENDATIONS


MAJOR RESEARCH FINDINGS:

The below given points are summary of findings and such findings have been reached by

• Analysis done with the help of response from the respondents

• Discussion with the respondents.

• Research in internet

• Study from various books, journals, research findings related to this topic.

Brand endorsement by celebrities is mainly done

• To make an appeal among the consumers

• That the consumers should notice the brand

• The brand ambassadors would set a trend among the consumers

• To influence the consumers

• To bring a trust about the brand among the consumers

• To achieve high brand recall

• To establish high brand awareness

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RESEARCH FINDINGS FROM THE DATA ANALYSIS

The following are summary of findings from the analysis made on the response given by the
respondents.

• Nearly 70% of the respondents say that there are huge chances that they will see a print ad
or a hoarding of Alcoholic drink brands.

• On an average about 35-40% of the respondents could associate the Alcoholic drink brand
with that of the ambassadors/celebrities. This shows that there has been a very good reach
of the advertisements featuring with celebrities.

• More than half of the respondents (38%) said that there are less chances that they would
buy a particular alcoholic drink brand because it is endorsed by their favorite icon. They
also look into other attributes like quality, value for money etc.

• Many respondents, nearly 35% of the respondents told that there is high chance of viewing
of television ads and nearly 51% of the respondents told that there is high chance of
viewing of hoardings particular alcoholic drink brand.

• There are some alcoholic drink brands which were not much popular earlier and then
became popular after it was being endorsed by a famous icon. Hence the respondents were
asked whether they tried. Nearly 45% respondents they have tried. (Bagpiper and
Antiquity whiskey of UBL are initially failed to capture the market when it was re-
launched using Akshay Kumar as brand ambassador)

• Most of the respondents told that, that is, nearly 20% of the respondents that they would
shift from their previous alcoholic drink brand for just a change. Next nearly 27% say that
they will shift due to non-availability and about 10% on account of quality/price. Next
nearly 40% say that they will shift due to new entry in the market.

• Brand awareness and brand recall can be effectively established by advertisements only.
And if brand ambassadors (celebrity) can help to do those, then it can be inferred that
brand ambassadors indirectly help in creating good brand awareness and brand recall.

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• There were mixed reactions when the respondents were asked, among two alcoholic drink
brands having same attributes will they prefer a particular alcoholic drink brand because it
is endorsed by their favorite icon. Partly told that they would prefer and partly took the
other view.

• Nearly 58% of the respondents felt that apart from attributes like quality, value for money
brand ambassadors is also important.

• The respondents were also asked to rate the effectiveness of the association between the
celebrity and the brand ambassador that they endorse. There were mixed reactions among
the respondents

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RECOMMENDATIONS:

Celebrity endorsement is mainly undertaken because to create brand awareness and brand
recall. The selling proposition is no longer the same. Earlier people were only concerned about
quality. But now things have changed. There are umpteen numbers of products which floods
the market. To stand out from the clutter brand ambassadors can be better tool.
Hence
• Articulate with clarity on the brand promise (What am I?) and the brand personality.

• Create consensus among the brand team on what the communication objectives for the
campaigns are.

• Focus single-mindedly on the characteristics the chosen celebrity should possess, in


order to provide synergy with the brand to be advertised.

• Overtly establish what the celebrity is going to communicate.

• Celebrities must be associated properly to the brand that they endorse once when these
criteria are met, endorsements can work as a force multiplier. On the flip side, the
greatest danger is that because celebrities already carry a strong brand character, a
mismatch could be counterproductive to the brand. It is very tempting to be carried
away by the short-term exposure and interest that an endorsement could generate.

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ANNEXURE

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ANNEXURE
1. SELECT BIBLOGRAPHY:

BOOKS:

1. Advertising Media Planning –A Brand Management Approach


Kelly, Larry D and Jugenheimer, Donald W; Prentice Hall India, person

2. Advertising and Sales Promotions.


Batra & Kazmi, Excell Books.

3. Integrated Advertising, Promotions And Marketing Communications,


Clow & Black, PHI

4. Principles & Practices of Advertising.


Wells, PHI

5. Brand Management.
H.V. Verma, Excel Books.

6. Advertising: Planning and Implementation.


Sharma & Singh, PHI.

7. Brand Management-Text and cases.


Dr. S.L. Gupta- (An Indian Perspective) - HPH.

MAGAZINES & JOURNALS:

Journal of Marketing, ICFAI Publications


Journal of Advertising Management , ICFAI Publications
Marketing Mastermind, ICFAI Publications
4 P s, IIPM publications
Brand Wagon--Financial Express
Brand Equity--Economic Times
Strategist--Business Standard
Catalyst--Business Line

WEBSITES:

1. www.brandchannel.com
2. www.magindia.com
3. www.blonnet.com
4. www.coolavenues.com
5. www.wikipedia.com

M.P.Birla Institute of Management  Page 76 
Promotional activities with special Reference to the celebrity Endorsements  

2. QUESTIONNAIRE:

Dear Respondent,

I am a student of M.P.BIRLA INSTITUTE Bangalore. I am doing a survey for my


Project “PROMOTIONAL ACTIVITIES WITH SPECIAL REFERENCE TO CELEBRITY
ENDORSEMENTS (ALCOHOLIC BEVERAGE PRODUCTS OF THE UNITED
BREWERIES COMPANY LTD, BANGALORE)”. In this connection I need some information
from you. Below is the questionnaire crafted for this purpose. Kindly give your responses to
the questions contained in the questionnaire. I will assure you that this information will be used
for academic purpose only.

Amaresh Parusharam

Name:
Age:
Occupation:

1. Do you drink?
A. Yes B. No(If yes, please go to Question number 2 otherwise go to Question
number 7 )

2. Whether you are a ?

A. Student B.Employee

3. Which Drink do you prefer to Drink?


A. Soft Drinks B. Hot drinks C.Beer
(If hot drinks, please go to Question number 3 otherwise go to Question number
7)

4. How do you prefer drinks?


A. Daily B. Weekly C. Fortnightly D. Monthly E. Occasionally

5. How much quantity of Hot drink you will drink in a single sit outs

A. Peg B. 2pegs C. Quarter Bottle D. Half Bottle E. Full Bottle

6. What is the reason for Drinking?


A. Friends B. Peers C. Colleagues D. Individual

M.P.Birla Institute of Management  Page 77 
Promotional activities with special Reference to the celebrity Endorsements  

7. Which place you most prefer for Drinking?


A. Home B. bar C. Bar and Restaurant D. Pubs E. Parties

8. What do you think whether the Alcoholic beverages are endorsed by


Celebrities?

A. Yes B .No

9. Please specify top 4 brands of Hot drinks that come in your mind?
(In order of Brand Preference with their brand ambassador.1-for highest
performance, 4-Least performance)
Brand Rank
1.________________ ___________________
2. ________________ ___________________
3. ________________ ___________________
4. ________________ ___________________

10. Do you like UB hot drinks?

A. Yes B. No
(If yes, please go to Question number 10 otherwise go to Question number 13 )

11. Why did you like UB drinks? It’s because…

A. Brand B. Taste C. Price/quality D. stimulation E. other

12. How did you come to know about UB Drinks?

A. News Paper B.TV Ads C. Hoardings D. Others

13. In your opinion, what is the impact of brand Ambassadors on Beer sales?

A. Very less B. Less C. Neutral D. High E .Very high

M.P.Birla Institute of Management  Page 78 
Promotional activities with special Reference to the celebrity Endorsements  

13. Do you shift one brand to another brand?

A. Yes B. No
(If yes, please go to Question number 14 otherwise go to Question number 15)

14. What is the Reason for shifting from one Brand the Brands?

A. Brand B. New entry C. Price/quality D. Non-availability E. other

15. Whether Companies like UB, SABMiller should go for celebrity


endorsement ?
A. Yes B. No
(If yes, please go to Question number 16 otherwise go to Question number 17)

16. Whether Celebrity Endorsement will increase the Sales of UB brand?

A. Very less B. Less C. Neutral D. High E. Very high

17. What Kind of Print ads are better for Brand Communication for UB
Company?

A.TV ads. B. Newspaper C. Magazine D. Outdoor ads

18. Do you think that the youth who prefer younger Stars like the soft drinks
endorsements for alcoholic Beverage Products?

A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree

19. Other than brand attributes like quality, value for money, how much do you
think celebrity endorsement is important?

A. Most Important B. Important


C. Neutral
D. Less Important E. Not Important

20. What is the Impact of Celebrity Endorsement of Alcoholic Product on


Society?

A. High C. Neutral C. Low

M.P.Birla Institute of Management  Page 79 
Promotional activities with special Reference to the celebrity Endorsements  

M.P.Birla Institute of Management  Page 80 
Promotional activities with special Reference to the celebrity Endorsements  

3. DIRECTIONS FOR FURTHER STUDY:


Based on our personal enquiry notes from the respondents, the following areas for further
research have been identified:

• Phenomenal Research on Celebrity Endorsements


• Consumer Insights into the Celebrity Endorsements
• Use/Abuse of Celebrity Endorsements by the Companies
• Subliminal Messages and Celebrity Endorsements
• Ethical Issues in using Celebrity Endorsements

------X------

M.P.Birla Institute of Management  Page 81