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PROJECT REPORT
ON
“CONSUMER PERCEPTION ABOUT CELEBRITY
ENDORSEMENT & BRAND BUILDING”

SUBMITTED TO:
PANJAB UNIVERSITY, CHANDIGARH
In partial of fulfillment requirement for the degree of
BACHELOR OF BUSINESS ADMINISTRATION
SESSION (2016-2017)

Under the supervision & guidance of: Submitted By:


Prof. KAREENA MANOCHA Vikas Kumar Yadav
Department of Business Administration BBA-3rd

UNI. ROLL NO: 18914000349

DEPARTMENT OF BUSINESS ADMINISTRATION


GOBINDGARH PUBLIC COLLEGE, ALOUR (KHANNA)

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DECLARATION

VIKAS KUMAR YADAV, here by declared that I have prepared this project report
“CONSUMER PERCEPTION ABOUT CELEBRITY ENDORESEMENT & BRAND
BUILDING ”in partial fulfillment award of Bachelor of Business Administration(BBA) from
GOBINDGARH PUBLIC COLLEGE ALOUR,KHANNA Affiliated to PANJAB
UNIVERSITY CHANDIGARH ,under the guidance of Prof. KAREENA MANOCHA. The
project is compiled and submitted by me is my original frame work. The finding in the report
are based on the data collected by me while preparing this report. I have not copied the data
from any previous report.
VIKAS KUMAR YADAV
Uni. Roll no.18914000349
PANJAB UNIVERSITY (CHD)

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CERTIFICATE

This is to certify that the project work titled “CONSUMER PERCEPTION ABOUT
CELEBRITY ENDORSEMENT & BRAND BUILDING” is a bonafide work of VIKAS
KUMAR YADAV . This project is carried out in the partial fulfillment for the award of degree of
Bachelor of Business Administration, GOBINDGARH PUBLIC COLLEGE of Punjab
University Chandigarh under my guidance. This project has not been submitted earlier for
award of any degree/diploma of any other institution /university.

Prof. Kareena Manocha


Department of Business Administration

Gobindgarh Public College,Alour (Khanna)

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ACKNOWLEDGEMENT

“Success is an effort bounded activity that involves co-operation of all”


It has been a great pleasure for me to work on this project. My sincere thanks to Prof. Kereena
manocha for giving me an opportunity to work on this project whereby I was given as exposure
to study “CONSUMER PERCEPTION ABOUT CELEBRITY ENDORSEMENT & BRAND
BUILDING” which helped me to increase the span of my knowledge & developed my thinking
on more practical lines. I thank him for his guidance & support throughout the time which I was
working on this project.
I learnt a lot & which will help me out in the coming days. I would like to thank Prof.
Kareena Manocha of Department of Business Administration of GPC College, ALOUR
(KHANNA) for guiding & supporting me in the completion of project from time to time.

I express my sincere thanks to my parents & my elder brother who encourage me


throughout this project & always with me.

VIKAS KUMAR YADAV


BBA 3rd year
Uni. Roll No. 18914000349

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CONTENTS
SR NO. CHAPTER’S NAME PAGE
NO.

1. INTRODUCTION ABOUT CELEBRITY


ENDORSEMENT 1-40

RESEARCH METHODOLOGY 41-48


2. a. SCOPE OF STUDY
b. OBJECTIVES
c. RESEARCH DESIGN
i. TYPES OF RESEARCH
ii. SOURCES OF DATA
iii. TOOLS FOR ANALYSIS
d. LIMITATIONS OF STUDY

3. RESULTS AND INTERPRETATION 49-66

4. FINDINGS 67-69

5. CONCLUSION 70-71

6. SUGGESTIONS & RECOMMENDATIONS 72-73

BIBLIOGRPAHY

ANNEXURE

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INTRODUCTION

India is a country where people love to live in dreams. They worship celebrities. Celebrities
which might be cricket stars i.e. Sachin Tendulkar, Mahinder Singh Dhoni etc. film stars i.e.
Shahrukh khan , Amitabh Bachchan, Katrina Kaif , Aishwarya Rai etc. They treat them as a
GOD. Marketers use this very preposition so as to influence their target customers may be
existing or potential ones. For this they rope in there celebrities & give them whopping amount
of money. They believe that by doing this they can associate their products with their target
customers. This is called celebrity endorsement.

Aristotle said that :


“ Beauty is a great recommendation than any letter of introduction”.

This could be rightly summarized why countless products are endorsed by celebrities, with or
without a significant need or benefit from the same.

Similarly, every product has an image. The consumer tries to


consume a brand which has the maximum fit with his/her personality image. The celebrity
endorse fits in between these two interactions, where he tries to bring the image of product closer
to the expectations of the consumers by transferring some of the culture & meanings exist in
his/her image of product.

Now, despite the potential benefits derived from celebrity


endorsements, they increase a marketer’s risk manifolds & should be treated with full attention
& aptitude. A brand should be careful when employing celebrities to ensure promise
believability and delivery of the future effect. The growing importance of mythical characters as
celebrities and their popularity among the target customers segment are ample proof of public
demand for icons to look up to as celebrities pass through from a mere commercial presence to

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public welfare message endorsements a whole new features is added to this process and helps us
in achieving a holistic view of the impact which celebrities generate in every sphere and segment
through their well-versed endorsements.
Everyday consumers are exposed to thousands of voices and images in magazines, newspapers,
websites, radio and television. Every brand attempts to steal at least of fraction of a person’s time
to inform him or her of the amazing and different attributes of the product at hand. The challenge
of the marketer is to find a buckle that will hold the subjects attention. In helping to achieve this
use of celebrity endorsement is a widely used marketing strategy.

In this modern age, people tend to ignore all commercials &


advertisements, While flipping through the magazines and newspapers or viewing T.V. But even
then, the glamour of the celebrity seldom goes to unnoticed. Thus the celebrity endorsement in
advertisement and the impact on the overall brand is of great significance. In this process, the
companies hire celebrities from particular field to feature in its advertisement campaigns. The
promotional features and images are matched with the celebrities image, which tends to persuade
a consumer to fix up his/ her choice from a variety of brands, Although this sounds pretty simple
but the design of such campaigns and the subsequent success in achieving the desired results
calls for an in-depth understanding of the product, the brand, the objectives, choice of celebrity,
associating the celebrity with the brand and a framework for measured the effectiveness.
Companies invest large sum of money to align their brands and
themselves with endorsers. Such endorsers are seen as dynamic with both attractive and likable
qualities and companies plan that these qualities are transferred to products. Furthermore because
of their fame, celebrities serve not only to create and maintain attention but also to achieve high
recall rates for advertisement messages in today’s highly cultured environment.

Indian advertising started with the hawkers who used to call out their
products right from the days when cities and markets first began. With this evolved a strategy
that tried to benefit from the emotional attachments of the esteem or the fans of the celebrities, in
form of celebrity endorsement.

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In this report, I have focused on the impact of celebrity endorsement
on the overall process of brand building and also tries to define how to make celebrity
endorsement a win-win situation for both the brand and the brand endorser. “Brand” is most
valuable asset of any firm.
The general belief among advertisers is that brand communication messages delivered by
celebrities and famous personalities generate a higher appeal, attention and recall than those
executed by non-celebrities. The quick message reach and impact are all too essential in today’s
highly competitive environment

Celebrities have also been in demand having succeeded in being effective


by rising clutter and grabbing the attention and focus the customers. They also succeed in
creating an aspiration in the minds of consumers to acquire what their favorite celebrity
endorsed.

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CRITICAL REVIEW OF THE CONCEPT:-

BRANDING AND CELEBRITY ENDORSEMENT:-

Today use of the celebrities as a part of marketing communication strategy is fairly common
practice for the major firms in supporting corporate or brand imagery.

DEFINITION OF A BRAND:

Jeck Welch, the former CEO of General Electric once said:


“ our most valuable assets are our intangible assets.”

The intangibles assets he was referring to a brand. The Dictionary of a Business & Management
defines a brand as:
“A name, term, sign, symbol, or a design, or a combination of them, intended to identify
goods or services of one seller or a group of sellers and to differentiate them from those of
competitors.”

DEFINITION OF CELEBRITY:-

Per say a dictionary meaning of this word is,


“ A person who has excelled in his/her field of action or activity.”

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In our day to day activity, we perform many acts, may at home, at work place, on field of sports,
in social life. But these acts may be daily routine or just “acts” per say giving no extra-ordinary
results, not noticed by anybody surrounding, and not taken in to notice by Media.

But if a person acts as performs something which gives fantastic results is noticed by masses.
That person has “done something special” that we and masses cannot do so. He is regarded as
special person, with some “extra” given by that “Almighty” above we start feeling that he/she is
great. We start celebrating his/her all acts which produce success. If the success rate for that
person is very high to “deliver” same results, he becomes a “CELEBRITY”. It may be in field of
sports, cinema, theatre, social life, politics and science anything but something with some special
results.
But by all means these acts should be with good cause, positive results,
morally good and acceptable results.

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A celebrity is perceived as GOD by masses. They touch their feet, create idols and worship,
garland their photographs, performs “Yagnyas” for their idols performance, wait for their
“Darshan” in hot sun or heavy rains for hour together, follow fashions of them, wear similar
clothes or have similar hair styles as that of celebrity and on wrong side even commit suicide if
celebrity fails to deliver results.

They have tremendous mass followings. They pull crowds with their
presence only. If it is understood that Amitabh bachchan is coming for shooting of a film to a
particular location on a particular day then there is a big rush in that area.

Celebrities are people who enjoy specific public recognition by a large


number of certain groups of people. They have some characteristics attributes like
“attractiveness, extra-ordinary lifestyle, or special skills that are not commonly observed.”
Thus, it can be said that within a society, celebrities generally differ from common people and
enjoy a high degree of public awareness.

According to Friedman and Friedman, “ a celebrity endorser is an


individual who is known by the public for his/her achievements in area’s other than that of
product endorsed.” Compared to other endorser types, famous people always attach a greater
degree of attention, recall and loyalty.

In this age of stiff competition where capturing a position in the


consumers mind space is extremely tough, celebrity endorsements give an extra edge to the
companies, for holding the viewers attention. Celebrities can catalyze brand acceptances and
provide the enormous momentum that brands require by endorsing the intrinsic value of the
brand.

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 Models: (e.g. URVASHI)

 Actors : (e.g. AMITABH BACHCHAN, SHRADDHA KAPOOR)

 Television : (e.g. SAURYA KHANNA , ISHITA )

 sports figures: (e.g. VIRATH KOHLI, SANIA MIRZA)

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 Entertainers : (e.g. KAPIL SHARMA)

 Pop-stars: (e.g. MADONA, SHAKIRA)

 Businessmen: (e.g. MUKESH AMBANI)

 Politicians: (e.g. NARINDER MODI)

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These celebrities appear in public in different ways. First, they appear in public when fulfilling
their profession e.g. VISHWANATHAN ANAND who plays chess in front of audience.

Furthermore, celebrities appear in public by attending special celebrity


events e.g. Award functions, world premiere of movies. In addition they are present in news,
fashion magazines and tabloids. Which provides second source information on events and the
private life of celebrities through mass-media channels e.g. SMRITI IRANI being regularly
featured in various publications. Last but not least, celebrities act as spokes people in advertising
to promote products and services which is referred to celebrity endorsement.

WHAT IS PRODUCT ENDORSEMENT?

A product endorsement is a form of testimonial from someone which indicates that they like or
approve the product. Commonly, product endorsements are solicited from people who are
socially prominent, allowing companies to advertise their products with statements like “as used
by such and such an actress” or “the official of the company event X.” It’s hard to miss a product
endorsement on product packaging and in advertisement, most companies keep their
endorsements front and center so that they are always in the public eye.

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The concept of product endorsement is quite ancient. In England, for example several
companies have been advertising themselves as “by appointment to the queen” for hundreds of
years, indicating that they enjoy the sponsorship of the British royal family. Consumers are often
seduced by the idea of purchasing a product which is endorsed by someone wealthy or famous,
as though by buying the product, the consumers also becomes affiliated with the person who
endorses it.

Modern product endorsement can come with contracts worth substantial


amounts of money. For example, many sports stars agree to participate in product endorsement
campaigns with the understanding that the company will compensate them for the troublesome
stars donate, the proceeds to charities they support using the product endorsement as a public
relations campaigns. In exchange for an endorsement contract someone may agree to use the
product publicly whenever possible and they may be restricted from using products made by a
competitor.

A product endorsement take the form of written testimonials where people


write about how the product changed their lives. Historically, such testimonials were often
printed on the product packaging directly. Modern testimonials are more commonly included in
advertising campaigns with quote only on the packaging. Many companies also use photographs
of famous people on their products to create a visual connection between the endorser and the
product, which is why sports stars appear on various sports merchandise.

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WHAT IS CELEBRITY ENDORSEMENT?

The use of celebrities in order to increase the sales and the recall value of a brand is called
celebrity endorsement.

The late 80s saw the beginning of celebrity endorsements in advertising


in India. Hindi film and T.V. stars as well as sports persons began encroaching on a territory that
was until then the exclusive domain of models. There was a spirit of advertising featuring stars
like Tabassum (PRESTIGE PRESSURE COOKER), Kapil Dev (PALAMOLIVE SHAVING
CREAM), Sunil Gavaskar (DINESH SUITINGS) of course, probably the first ad to cash in on
star power in a strategic way was for LUX soap, a brand which has perhaps as a result of this,
been among the top there in the country for much of its lifetime.

Endorsements by celebrities have started


since a long time. The very fact that their use has continued for so long
is proof enough of its immense advantages, disadvantages too. When it
comes to celebrity endorsement the first brand that comes in India mind is that of LUX - the
Beauty Bar of the stars, since its inception LUX brand has grown positioning from being a
women’s soap for men as well. Sticking to its strategy of using celebrities to appeal to its target
audience, this time around it has used Shahrukh Khan to endorse LUX. But this time the
response has been confusing.

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One of the first sports endorsements in India was when Farokh Engineer
become the first Indian cricket to model for Brylcream. The Indian cricket teams now earns
roughly Rs. 100 crore through endorsements.

There was a spirit of advertising featuring stars like, Sachin Tendulkar


(BOOST & PEPSI) , Mohinder Singh Dhoni (ORIENT PSPO FANS), Sunil Gavaskar( DINESH
SUITINGS).

IS IT SMART TO USE CELEBRITY ENDORSEMENT FOR BRANDING?

Stars, who are known to shape destinies cast an enormous influence. No, we are not talking
about astrology here. We are referring to the powerful effect of celebrities on destinies of brands.
One approving signal from a famous face can translate in to millions of brand sales. Perhaps
that’s why the world over companies have been using stars to endorser everything, from food to
food chains, from soft to hard drinks, from clothes and accessories to cars (and the tires on which
they runs). Even political parties are awestruck by the charisma of stars. Such as the magnetism
of celebrities in this country that in the recent, general elections major political parties fielded a
record number of film stars and cricketers to contest from important constituencies around the
country.

CELEBRITY ENDORSEMENT AS A MARKETING STRATEGY:-

Signing up stars for endorsements is a time-tested strategy and has been effectively used by some
of the top brands in the world including NIKE and PEPSI. In INDIA too HLL has used Hindi
film stars to endorse their beauty soap LUX since the 50s. Vimal, Thumbs up, Gwalior and
Dinesh are some other brands used stars appeal in the early days of mass advertising.
Marketers believe that stars endorsements have several benefits, key among them being building
creditability, fostering trust and dreams attention or any or all of which can translate into higher
brand sales.

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So, how does one decide whether to put a celebrity on an ad? Ideally, this should be dictated by
the communication idea.

Most experts concur that, when used judiciously celebrity endorsements can be an effective
strategy. According to Mohommed khan, chairman of enterprise Nexus, “using a celebrity by
itself is not a bad idea provided it is done intelligently. And there are many example of good and
bad use of celebrities.

Take AMITABH BACHCHAN, who has been used by some companies


like PARKERS PENS and ICICI Home loans remarkably well, while some other have been
unable exploit his BIG B status too well. SHARUKH KHAN’S endorsement of HYUNDAI i10
too seems to have worked well.

Parmeswaran adds, “ we used cricketers like RAHUL DRAVID for


CASTROL in an attempt to breakout the clutter as well as have an image rub off ‘ dependability’
on to brand.”

CELEBRITY ENDORSEMENT: ‘ KEY TO MARKETING SUCCESS’ :-

When you tell people that a product/service can help them, they may or may not believe on you.
After all you have a vested interest in selling your services. But when celebrities says that
particular product has helped them and it could help others, people tend to listen and believe.
After all most people assume “he/she wouldn’t say it if it weren’t true.”

As marketing experts Patrech Bishop – Co-author of ‘Money tree marketing , innovative secrets
that well double your small- business profits in 90 days or less’ – noted:

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“When you get a celebrity to endorse your company or sign a licensing agreement you
benefit from customers awareness of property, could include the perception of quality,
educational value or a certain image.”

COMPATIBILITY OF CELEBRITY PERSONA WITH OVERALL BRAND IMAGE:-

A celebrity is used to impart credibility and aspiration values to a brand, but the celebrity needs
to match the product. A good celebrity campaign idea and intrinsic link between the celebrity
and the message are must for a successful campaign. Celebrities are no doubt good at generating
attention, recall and positive attitudes towards advertising provided that they are supporting a
good idea and there is an explicit fit between them and the brand .

Certain parameters that ensure proper compatibility between the celebrity and brand image:-

1) FIT WITH ADVERTISEMENT IDEA:- Marketers now seek to adopt 360 degree brand
sees no limits on the number of contact points possible with target consumers.
Advertising idea, thus revolve around this approach and the celebrity endorsements
decisions are made through their strategic motives.
RICHARD GERE’s recent endorsement for VISA in India has
gained a claim due to its innovativeness and consumers connect. Brand marketers say that
RICHARD GERE was the most popular face across the ASIA PECIFIC REGION and
would also fit in to persona of the brand meeting their communication objective to
enhance VISA’s brand leadership and consumer preference and the motive to continue
the ‘ALL IT TAKES’ platform featuring international celebrities.

2) CELEBRITY- TARGET AUDIENCE MATCH:- SMRITI IRANI endorsing the WHO


recommended ORS campaign in India. Indian mothers can associate with SMRITI
IRANI, through the facets the projects on screen or in regular life. Which helps in
developing connect with target audience since mothers medicate their children with ORS.
The in serial placement of campaign in “KYUNKI SAAS BHI KABHI BAHU THI” has
won it an award from PR week.

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3) CELEBRITY VALUES:- Celebrity branding is all about the transfer of the value from
the person to the product he endorses or stands for. There are two concerns here, the first
is how long this could last can the person maintain his popularity (i.e. his performance or
status ranking).
The life cycle of celebrity popularity varies a lot. The second
concern in his private life- personal integrity. If he is implicated in any kind of scandal,

That would be ruin the brand. “who would want to use MICHEAL JACKSON” to brand
their product? TABU endorsing TETRA PACKS MILK, SHABANA AZMI
campaigning for AIDS awareness, AMITABH BACHCHAN & SHAHRUKH KHAN
endorsing for polio, AISHWARYA RAI appearing in the DONATE EYES campaigns
are few examples which reflect the transfer of celebrity values to the brand creates an
impact their general recall.

4) COSTS OF ACQUIRING THE CELEBRITY:- Consequentially, companies must have


deep pockets to be able to afford the best available celebrities. Recently, a newspaper
report firms showed how cola firms had gone beyond their advertising budgets to get the
best celebrities services run greater risks if they invert large amounts. Although nobody
is willing to say exactly how much celebrities get paid , industry sources say SACHIN
TENDULKAR price is believed to be Rs. 2-2.5 crores per endorsement, MUSICIAN
A.R.REHMAN who had signed up with AIRTEL is believed to have picked up Rs. 1.75
crores. Film stars AISHWARYA RAI as apparently picks up Rs. 1.25 crores for an
endorsement and the film star AAMIR KHAN apparently makes Rs. 1 crore per
endorsement.

5) CELEBRITY REGIONAL APPEAL FACTOR:- R MADHVAN endorsing PEPSI in


SOUTHERN INDIA or SACHIN TENDULKAR endorsing in INDIA are few examples
of how celebrities are chosen to reach out to target audiences for brands in regional
markets . Another interesting example would be of STEVE WAUGH campaigning for
TOURISM AUSTRALIA in INDIA since he was one of the popular celebrity from
AUSTRALIA and could carry the message of AUSTRALIA as a tourist destination.

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6) CELEBRITY-PRODUCT MATCH:- Some examples of compatibility of celebrity
product match in which celebrity brand attributes get transferred to brand equity is of
MALLIAKA ARORA KHAN AND FERSHIZZA from PIZZA HUT, GOVINDA and
NAVRATNA TEL, SANJAY DUTT and ELF OIL, SUNNY DEOL and LUX COZI
UNDERGARMENTS, AISHWARYA RAI and NAKSHATRA etc.

7) CELEBRITY CONTROVERSY RISK:- The perfect example here is of SALMAN


KHAN & the controversy in which he crushed a man to death with his POJERO when he
was driving under the influence of ALCOHOL. Also any act on the part of the endorser
that gives him brand in most instances takes a bashing.

8) CELEBRITY POPULARITY:- Celebrity brand association likes GARNIER endorsed by


TARA SHARMA AND SIMONE SINGH, AGNI DIAMOND’s with RIAMA SEN,
don’t get much brand recall and even if they do its difficult to attribute it to the celebrities
endorsing the brand.

9) CELEBRITY AVAILABILITY:- In case of various brands there are situations in which


they prefer to go without a brand face, since there is no brand fit between the celebrities
available and the brand. Also, due to multiple endorsements by certain celebrities, brands
refer to adopt celebrity endorsement since they fear dilution of brand image.

10) CELEBRITY PHYSICAL ATTRACTIVENESS:- BIPASHA BASU physical


attractiveness can make popular SUGAR FREE GOLD- ITS MY FITNESS SECRETS.
JOHN ABRAHAM endorsing YAMAHA are some examples which portray the celebrity
physical attractiveness that helps creating an impact.

11) CELEBRITY CREDIBILITY:- The most important aspect and reason for celebrity
endorsement is credibility. In the research carried out among 43 ad agencies and
companies most experts believed that the most important dimensions of credibility are

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trustworthiness and prowess or expertise with regard to the recommended product or
service. One of the most obvious reasons of AMITABH BACHCHAN endorsing huge
number of brands is the credibility and his recognition across consumers. To site one of
the most successful campaign in which the celebrity’s credibility has had an indelible
impact on the brand and has saved the brand is of CADBURY’s. After the worm
controversy, AMITABH BACHCHAN’s credibility infused in to brand through the
campaign, helping it to get back on track. The campaign has won an award for the same.

12) MULTIPLE ENDORSEMENTS:- The case of multiple endorsements, both in terms of a


simple brand hiring multiple celebrities and that of a single celebrity endorsing multiple
of brands is often debated. At times, consumers do get confused about brand endorsed
when a single celebrity endorses numerous brands. The recall then gets reduced and
reduces the popularity of the brand. Not many people can remember all the brands that a
celebrity endorses and the chances of losing brand recall increases if the celebrity
endorses multiple brands. For example in case of SACHIN TENDULKAR people recall
PEPSI, TVS VICTOR & MRF but might not remember brands like BRITANNIA AND
FIAT. Similarly for AMITABH BACHCHAN consumers remembers CADBURY,
PEPSI, PARKER PENS, PULSE POLIO & BPL. They might get confused in the
endorsement of NEROLAC or ASIAN PAINTS. Thus for multiple endorsement where
the same celebrity endorses several brands, it boils down to the strength of the brand and
the advertising content.

13) WHETHER CELEBRITY IS BRAND USER:- One of the strongest platform to discuss
this is through NGOs various celebrities endorsed NGOs and social causes since they
believe in the social message that they need to convey to the audience. One of the most
successful campaign has been executed by PETA in which celebrities like SHILPA
SHETTY, AMISHA PATEL, MAHIMA CHAUDHRY claimed to believe in PETAs
philosophy and thereby endorse the brand. On the other hand while some would
understand that AMITABH BACHCHAN would have never used NAVRATAN TEL,

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the target audience that the brand want to reach out to will be ready to believe that he
used the oil and his endorsement thereby creates an impact.

TYPES OF CELEBRITY ENDORSEMENTS:-

Celebrity branding has many aspects. A slight change in the type of branding used can
result in either a great success or a dismal failure. Celebrity brandings falls in to five
categories :-

1) TESTIMONIAL:- The celebrity acts as a spokes persons for the brand.

2) IMPORTED:- The celebrity performs a role known to the audience.

3) INVENTED:- The celebrity plays a new, original role.

4) OBSERVER:- The celebrity assumes the role of an observer commenting on the brand.

5) HARNESSED:- The celebrity image is integrated with the ad’s storyline.

KINDS OF CELEBRITY – THEIR IMPACT ON BRANDS:-

1) PRODUCT PLACEMENTS:- While the movie “TAAL” brandished COKE bottles.

2) CELEBRITY CO-BRANDING:- MADHURI DIXIT & EMAMI “BEAUTY SECRETS


BY MADHURI RANGE”.

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3) FICTIONAL HEROES:- SHAKTIMAAN has sold PARLE-G and POPEYE single-
handedly revived the consumption of SPINACH in U.S.

4) NO MORE BUT STILL CELEBRITIES:- Campaigns created around DHIRUBHAI


AMBANI was the “KAR LO DUNIYA MUTHI MEIN” campaign from RELIANCE.

5) CELEBRITY FOR A CAUSE:- The PULSE POLIO campaign being coordinated by


UNICEF for the MINISTRY OF HEALTH & FAMILY WELFARE had AMITABH
BACHCHAN and SACHIN TENDULKAR.

6) SPOOFING:- MIRINDA spoofed the HUTCH PUPPY (a celebrity in its own rights).

7) MASCOTS:- RONALD McDONALD, THE AMUL GIRL.

8) PRODUCTS ENDORSED ACCORDING TO GENDER:- JOHN ABRAHAM lends


his rugged image to YAMAHA, while PRIETY ZINTA lends her cute DIMPLES to
paddle SCOOTY.

9) CELEBRITIES LENDING THEIR NAMES TO BRANDS:- SHAHRUKH KHAN,


AMITABH BACHCHAN & REKHA have perfumes named after them.

10) COMPANY OWNERS BEING CELEBRITIES:- VIJAY MALLYA AND RICHARD


BRANSOM who are walking-talking celebrities and endorses their own brands through
their extravagance, their flashy lifestyle.

11) POLITICAL LEADERS:- The “INDIA SHINING” cam from BJP & the “SWACH
BHARAT ABHYAAN” from the BJP with NARINDER MODI

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12) USING A SOCIETIAL PROPOSITION BUILT WITH IN THE BRAND:- The surf
campaign done by REVATHY AND SHABANA AZMI (in the south and the north
respectively) which stressed on the cautious usage of valuable water was a social
proposition cleverly inter-woven in the brand.

13) DURATION OF USAGE PROMOTIONAL OR LONG-TERM STRATEGY:- Short-


term example is RANI MUKHERJEE campaign for BATA which is believed to have
helped in boosting sales for the LADIE’s FOOTWEAR brand. SUNDROP, by
whooping 500%. The same RANI MUKHERJEE has a longer association with FANTA
& MUNCH.

14) FOREIGN CELEBRITIES:- JACKIE CHAN doing a discover commercial or a


BORRIS BECKER doing a SIYARAM’s commercial.

15) UNINTENTIONAL CELEBRITIES:- The year before the LATE PRINCESS DIANA
bought an AUDI, they sold just about 500 pounds in UK. The following year sales
figures were close to 10 thousand marks. JOHN ABRAHAM riding hay abuse in the
movie “DHOOM” boosted the sales of SPORTS BIKES in INDIA.

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EFFECTIVE FRAMEWORK FOR CELEBRITY ENDORSEMENT
PROGRAMME

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IS CELEBRITY ADVERTISING EFFECTIVE?

What are the benefits of representing India in the national cricket team? It is an opportunity to
compete with the best in the world and pitch one’s talent against the best.

It is an opportunity to travel around the world. It is an opportunity to uphold


national pride. And make good money from every match played.

But there is more a ticket to modeling in the advertising world (and a future
perhaps in BOLLYWOOD). Not surprisingly it’s a very attractive profession, as advertisers pour
crores of rupees every year into celebrity advertising.

Think of SACHIN TENDULKAR. He means PEPSI in soft drinks, BOOST in


malted beverages, MRF in tires, FIAT PALIO in cars, TVS VICTOR in two-wheelers,
COLGATE TOTAL in toothpastes, BRITANNIA in biscuits, VISA in credit cards & AIRTEL in
mobile services.

Clearly an overload of brands categories associated with one star. In the


advertising world, Celebrity advertising is seen as a substitute for absence of idea’s and actually
frowned upon. Yet it appears again and again. The reasons are quite insightful.

A client hits upon celebrity as a solution when his agency is unable to


present him a viable exciting solution for his communication/ marketing problem. He then feels
that the presence of a well known face is an easy way out. It is rare that there is an idea on the
table and client and agency mutually agree that the presence of a celebrity will actually lift the
script. This is very similar to BOLLYWOOD BLOCKBUSTER FILM where the cast is decided
upon the script is either written accordingly and re-engineered around the cast.

28
SHAHRUKH KHAN CHANGED THE FORTUNE OF DISH TV AFTER HE STARTED
ENDORSING IT.

The four Q’S are:

1) QUICK SAILENCY:- It gets cut through because of the star and his attention getting
value. NEROLAC has ensured high sailency for its brand with the inclusion of
AMITABH BACHCHAN in its advertising.
2) QUICK CONNECT:- There needs to be no insight but the communication connects
because the stars connects SACHIN TENDULKAR & SHAHRUKH KHAN ensure an
easy connect for PEPSI with the youth.
3) QUICK SHORTHAND FOR THE BRAND:- The right star can actually telegraph a
brandmessage fast without elaborate story telling. KAPIL DEV & SACHIN
TENDULKAR seem to have done that successfully for BOOST in the early 90s And
helped to differentiate it in the malted beverages market.
4) QUICK MEANS OF BRAND DIFFERENTIATE:- In a catageory where no brand is
using a celebrity, the first that picks one up could use it to differentiate itself in the
market. BOOST did it in the malted beverages categeory

FEW EXAMPLES OF CELEBRITIES WHO ENDORSED THE PRODUCTS

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 BRAND ENDORSED BY DHONI

The young, handsome, self-controlled, composed autonomous cricket captain of Indian


young brigade is one of the most famous image in Indian market. In India, cricket is a
religion and cricketers are placed among the GODs.

Dhoni is a brand in himself and a attractive choice for the


marketers as a brand endorser. Dhoni has been successfully used indifferent
advertisement as a brand ambassador.

Few of all the brands that dhoni is endorsed are the famous
YOUNGISTAN advertisement of PEPSI, REEBOK’S ad of YOUR MOVE and funky
ad of LAYS with SAIF ALI KHAN.

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BRANDS ENDORSED BY DHONI:-

1) LAVA “NEVER LETS YOU DOWN”:-

LAVA has always tries to tap the young segment of INDIA through their promotion. Beginning
from the famous “AHAA” series of ads to the “NEVER LETS YOU DOWN.” LAVA has
always made ads to attract the youth. They have always chosen the young stars may not be
established as a face of young India. So, the main reason of using DHONI is same an case of the
latest “LAVA NEVER LETS YOU DOWN” ads.

BRAND PERSONALITY:-

 The brand is vibrant, energetic.


 PEPSI is an intelligent brand which attaches itself with fun and enjoyment.
 It has also shown its daring attitude mischievous behavior and outgoing
nature.
 There is nothing opaque about the product and the brand.

ENDORSER’S PERONALITY:-

 DHONI is a young guy with learning personality.


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

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2) LAYS: “USE YOUR TOUNGE”:-

LAY’S chips are marketed a division of FRITOLAY’s a company owned by


PEPSICO incorporation since 1965. Other brands in the FRITOLAY group includes
KURKURE, RUFFLES & CHEETOS. MS DHONI joined FRITOLAY as ambassador. SAIF
ALI KHAN & JUHI CHAWLA also to launch a mega portfolio promotion “CHALA CHANGE
KA CHAKKAR” in February. The FRITOLAY division of PEPSICO INDIA holdings the
makers to ready to eat snack brands LAYS, KURKURE & CHEETOS has signed MAHENDRA
SINGH DHONI as their new brand ambassador to launch a new promotion called “CHALA
CHANGE KA CHAKKAR.”

The new promotion would have the three stars swap one day of their lives with the contest
winners giving the customer a unique never before experience. DEEPIKA WARIER, director
(marketing) PEPSICO INDIA holding (FRITOLAY DIVISION) said “we are proud to welcome
MS DHONI into FRITOLAY FAMILY.” His pan Indian appeal, confident, can do attitude &
responsible yet firm image can create a positive vibe in the minds of customers.

The ad show DHONI showing his tongue to the audience to confirm that
new variant of LAYS is to satisfy the taste of customers, the crazy and created to gain the
attention of the customers and to let the customers aware about the new variant, from famous
hands.

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BRAND PERSONALITY:-

 The brand is vibrant, energetic. It sometimes portrays itself as a crazy


personality.
 LAYS is an intelligent brand which attaches itself with fun and enjoyment.
 It also shows its daring attitudes, mischievous behavior and outgoing nature.
 The product i.e. the new variant is a launch in the market. Hence people lack
any idea about the new variant that lays is launching.

ENDORSER’S PERSONALITY:-

 DHONI signifies youth of INDIA.


 He is intelligent & full of life.
 He is the leader of young team, fun loving young gentleman with transparent
character.

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 BRAND ENDORSED BY AMITABH BACHCHAN.

AMITABH BACHCHAN is known as the man with MIDAS TOUCH & people have long loved
to ape his style and his deep voice. No wonder advertisement agencies have been compete with
one another to cash in on his MEGASTAR status. Today, the star is one of the hottest advertising
lucky charm and probably the most highly paid model for commercials. BACHCHAN has
endorsed brands like BPL, ICICI, PARKER PENS, MARUTI VERSA, PEPSI, REID &
TAYLOR, NEROLAC PAINTS & DABUR. He was also a prominent part of recent AIDS
campaign and also have an important role in spreading awareness about the PULSE POLIO.

Even at 61, BACHCHAN makes more from his endorsements than the
stars of today like SHAHRUKH KHAN & AAMIR KHAN.

BRANDS ENDORSED BY AMITABH BACHCHAN:-

1) PARKER PENS:-

AMITABH BACHCHAN was actually roped in as brand


ambassador by PARKER PENS to promote WATERMAN, its FRENCH PEN BRAND. Who
can forgot the ad in a restaurant in which BIG B cannot get enough of writing with a parker and
proceeds to sign the bills of all the dinners? Or the one in which he goes on signing the
autograph book of a teenage girl (GENELIA D’SOUZA). The idea for this one was incidentally
AB’s.MANSOOR KHAN (QAYAMAT SE QAYAMAT TAK, JOSH) directed their ads.
BACHCHAN was reportedly paid Rs. 5 crores for this series.

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2) MARUTI VERSA:-

This was the first and so far only ad to feature the FATHER and SON dew of AMITABH
BACHCHAN & ABHISHEK BACHCHAN. The ad had the BIG B relaxing in backseat as son
ABHISHEK BACHCHAN drives the car. Both like the car for different reasons and launch on a
amusing conversation about it.

The two are famous also due to their films as well as their personality and father
son relation. They both are worked jointly in films as well and also successful in it and these
films are hit on BOXOFFICE.

3) REID AND TAYLOR:-

AMITABH BACHCHAN displaced none other than “JAMES


BOND” PIERCE BORSNAN for this product. REID AND
TAYLOR is the first clothing brand AB has. The action packed
ad show cases him as the INDIAN JAMES BOND.

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4) JUPITER:-

While AMITABH BACHCHAN giving smile, stair down from billboards, is effective T.V. ads
showing people shaking hands with him and then looking down at their brands to see them
painted are even more powerful.

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CELEBRITY ENDORSEMENTS CASES: MAKE OR BREAK

1) SALMAN KHAN- ( POSITIVE IMPACT) :-

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

2) AMIR KHAN- SNAP DEAL ( POSITIVE IMPACT):-

This strong man from yester years, still resonates as the only brand ambassador, who managed to
sell goods from online in each and every corner of INDIA. AMIR KHAN’, the perfect brand
ambassador it was looking for. He not only gave to the product a powerful and strong image, but
also brought to the product trust and honesty which it was trying to built in its first time buyer.

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3) AMITABH BACHCHAN (CLUTTERED IDENTITY) :-

Our framework argues that exclusively makes the produvts. Celebrity association stronger therby
making the product resonates with the qualities of celebrity. In cases where the celebrity
endorses multiple products, he dilutes his equity.

There’s no better example in the INDIAN INDUSTRY than


AMITABH BACHCHAN who endorses ICICI, CADBURY, VERSA, DABUR, RIN, PARKER
PENS, PEPSI, NEROLAC PAINTS & many more. In each of case the ads use some is the
attributes of AMITABH BACHCHAN to endorse the product, but makes a strong link in the
minds of the consumers. Hence in the end the consumer is lost and has difficulty identifying.
What does AMITABH really stand for?

4) RANI MUKHERJEE- HERO CYCLES ( NEGATIVE IMPACT) :-

RANI MUKHERJEE endorsing a cycle makes a case where the celebrity is used. Only for ther
popularity without looking for BRAND- CELEBRITY FIT.

Cycles in INDIA are generally used by men and the target segment
belongs to low income group. By using RANI, the consumers could not be assured of the
product’s qualities and could not relate the product to yhe ambassador. Hence, the consumers
were not motivated towards the product and the ad was called bach thereby emphasizing the
need for a brand celebrity fit. After that, IRFAN PATHAN was signed to endorse for the product
which increased the sale.

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5) VODAFONE- ZOOZOO (CREATED SPOKESPERSON) :-

HUTCH managed to grab the attention of the consumers by


not using a celebrity. The zoozoo campaign came across as a
fresh initiative at endorsing a product. The zoozoo have had
a very high brand recall as they represent only vodafone and
have been created by the company according to the needs of
the products and the message, it communicates to the
consumers about all the offers and packages the company
offers. The portagonist says all the above strong bond with the consumers.

6) MOHAMMED AZHARUDDIN – BRITANIA (CHANGE THE CELEBRITY


IMAGE):-

MOHAMMED AZHARUDDIN at the peak of his carrer was a brand ambassador for an
endorsement of products. But the match- fixing scandal make faulty his image and all of the
products started disassociating their endorsements from him. Thus, a product is sold on basis of
the qualities of the endorser and with a change in the inherent values system of the celebrity the
bond with consumer is lost.

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7) NARAIN KARTHIKEYEN- JORDON /FORMULA 1 RACING (ENTERING
INTERNATIONAL MARKETS) :-

A celebrity’s endorsements through various cultural and social barriers in one of the critical
applications of our model, NARAIN KARTHIKEYEN
is a case in point. The popularity of F1 as a sport in
INDIA owes its origin to use of NARAIN
KARTHIKEYEN as a brand ambassador of the sport.
His image and persona has been used by the sports and
the jordon team to create brand awareness in INDIA.

8) SACHIN TENDULKAR- FIAT PALIO ( FINANCIAL VIABILITY):-

SACHIN TENDULKAR was paid a huge sum of Rs. 12 crore to endorse FIAT PALIO, even
though TENDULKAR as a brand could command such an excessive amount. Its for the
company to evaluate if the returns generated by the endorsement would proportionate the initial
spend. In this case due to excessive spending and failure
of the product to take-off the advertisement has to be
withdrawn.

40
41
RESEARCH METHODOLOGY
Every project work is based on certain methodology, which is way to systematically
solove the problem or attain its objectives. It’s a very important guideline and lead to
completion of any project work through observation, data collection data analysis.

According to Clifford woody,

“Researh methodology comprises of defining & redefining problems ,


collecting, organizing &evaluating data, making deductions & researching
to condusions.’’

Data sources : Primary and Secondary.

Data approaches : Questionnaire.

Sample size : 50

Sample procedure : Convenience sampling.

Research Design : Descriptive.

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(A) SCOPE OF STUDY:

The marketing research design a sampling plan, which calls for three decisions:-

a) SAMPLING UNITS- It defines the target population that will be sampled i.e. It answers
Who is to be surveyed? In this study, sampling units is youth with in the age group of
18-25 years.
b) SAMPLING SIZE-How many people should be surveyed? Though large sample gives
more reliable results than small sample but due to constraints of time the sample size was
restricted to 50 RESPONDENTS only.
c) SAMPLING TECHNIQUES-CONVENIENCE SAMPLING & SIMPLE RANDOM
SAMPLING.

43
44
(B) OBJECTIVES OF STUDY

The study will look into some issues as:-

1) To understand how the consumers perceive celebrities and the brands they endorse.

2) To study celebrity endorsement as a source of brand building.

3) To find which type of celebrity persona is more effective.

4) To study the effect of celebrity on purchase decision of people.

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(C) RESEARCH DESIGN

(i) DESCRIPTIVE
The description studies is used in the project due to fact that the descriptive studies
attempt to obtain a complete and accurate description of a situation that is it covers, the
all phases required and provides the ways to collect the data from various sources of
information (sample design), ensure minimum bias in the collection of data, hold costs to
a minimum and reduces the errors in interpreting the data collected.
(ii) SOURCES AND METHOD OF DATA COLLECTION:-
Sources of data collection state the various sources of data from where we collect the
information for the comparative analysis.
1) PRIMARY DATA:- Primary data are those collected specifically by or for the
data users, by different methods such as:
1. OBSERVATION METHOD.
2. INTERVIEW METHOD.
3. QUESTIONNAIRE METHOD.
2) SECONDARY DATA:- Secondary data are those data have been collected by
other organizations such as:
1. WEBSITES.
2. NEWSPAPERS.
3. MAGAZINES

(iii) TOOLS FOR ANALYSIS:-

1. BAR DIAGRAM.
2. PIE CHARTS.

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47
(D)LIMITATIONS OF STUDY

There are following constraints of the study which can be explained as:-

 The time for research was short due to which many facts had been left untouched.

 The area undertaken in research in MANDI GOBINDGARH only. But to do a completer


research a wide area is required, so the area is also a constraint of study.

 While collecting data some of the respondents are not willing to fill the questionnaire, so
they might not fill their true behavior. This can also be a constraint of the study.

 Sample for the study taken is only of 50 consumers which can also act as a constraint on
the study.

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49
DATA AND INTERPRETATIONS
1) What is your occupation?

a) Business class. b) Service class.

c) Students. d) Others.

OCCUPATION NO. OF RESPONDENTS IN %


BUSINESSMAN 8 16%
SERVICE 14 27%
STUDENTS 24 49%
OTHERS 4 8%

OCCUPATION
Businessman sevice students others

8%
16%

27%
49%

INTERPRTATION : From this pie chart is clear that 49% respondents are students .27% are
service persons. 16% are businessman and rest 8% are from other occupations. The results is that
majority of respondents are students.

50
2) What is your age?

a) 18-25 b) 26-32

c) 33-39 d) More than 40.

AGE NO.OF RESPONDENTS IN %


18-25 39 78%
26-32 7 14%
33-39 2 4%
MORE THAN 40 2 4%

AGE
18-25 26-32 33-39 MORE THAN 40

4% 4%

14%

78%

INTERPRETATION:- This pie-chart depicts that 78% respondents are lie between 18-25
years, 14% lie between 26-32 years and 4% -4% lie in between 33-39 years & more than 40
years both. The result is that majority of respondents are young lie in the age of 18-25 years.

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3) What is your gender?

a) Male. b) Female.

GENDER NO. OF RESPONDENTS IN %


MALE 32 64%
FEMALE 18 36%

GENDER
MALE FEMALE

36%

64%

INTERPRETATION:- This pie-chart depicts that 64% of the respondents are male and
36% are female. So, the majority of our respondents are of male category.

52
4) What factors affects your buying behavior towards a purchase?

a) Price b) Opinion leader.

c) Celebrity endorser. d) Brand name.

FACTORS AFFECTING NO. OF RESPONDENTS IN %


PURCHASE
PRICE 18 36%
OPINION LEADERS 12 24%
CELEBRITY 9 18%
BRAND NAME 11 22%

20
FACTORS AFFECTING PURCHASE

15

10
FACTORS AFFECTING
5 PURCHASE

0
PRICE OPINION CELEBRITY BRAND NAME
LEADERS

INTERPRETATION :- This graph depicts that out of 50 respondents 18 are


influenced by PRICE, 12 by OPINION LEADERS, 9 by CELEBRITY and 11 by
BRAND NAME. So the majority are influenced by PRICE and least by
CELEBRITY.

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

a) Yes. b) No.

c) Can’t say.

CELEBRITY ENDORSING NO. OF RESPONDENTS IN %


YOUR BRAND ON T.V.
YES 23 46%
NO 12 24%
CAN’T SAY 15 30%

CELEBRITY ENDORSING YOUR BRAND ON T.V.


YES NO CAN'T SAY

30%

46%

24%

INTERPRETATION:- The pie-chart depicts that 46% are liked to see their brand
endorsed by their favorite celebrity, 24% can’t agree with it and 30% remains silent in
this question. So, majority of the respondents would like to see their brand to be endorsed
by the celebrity.

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6)“Celebrity endorsement is an effective tool of persuasion of buying a product”.
Rate this statement?

a) Strongly agree. b) Agree.

c) Indifference. d) Disagree.

e) Strongly disagree.

CELEBRITY- NO. OF RESPONDENTS IN %


EFFECTIVE TOOL OF
PERSUASION
STRONGLY DISAGREE 4 8%
DISAGREE 6 12%
INDIFFERENCE 9 18%
AGREE 19 38%
STRONGLY AGREE 12 24%

CELEBRITY -EFFECTIVE TOOL OF PERSUASION


20
15
10
5
0 CELEBRITY -EFFECTIVE TOOL OF
PERSUASION

INTERPRETATION:- This graph depicts that out of 50 respondents 12 are strongly agree that
celebrity is an effective tool of persuasion, 19 are agree, 9 are indifference, 6 are disagree and the
remaining 4 are strongly disagree. So, the result shows that 31 respondents strongly agree and
agree to the fact that celebrity are an effective tool of persuasion.

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7) “Male endorser is more effective as compare to female endorser”. Do you
agree?

a) Yes. b) No.

c) Can’t say.

MALE CELEBRITY NO. OF RESPONDENTS IN %


MORE EFFECTIVE THAN
FEMALE
YES 21 68%
NO 15 32%

MALE CELEBRITY MORE EFFECTIVE THAN


FEMALE
YES NO

32%

68%

INTERPRETATION:- This pie-chart depicts that 68% respondents say that male
celebrity is more effective than female, 32% say no in this question. So, most of the
respondents consider a male celebrity endorsing product is more effective than female
celebrities.

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8) Does a celebrity endorsing a product actually uses it?

a) Yes. b) No.

c) May be.

CELEBRITY USING NO. OF RESPONDENTS IN %


THE ENDORSED
PRODUCT
YES 24 48%
NO 14 28%
MAY BE 12 24%

CELEBRITY USING THE ENDORSED PRODUCT


YES NO MAY BE

24% 28%

48%

INTERPRETATION :- From the pie-chart shows that 48% respondents think that the
celebrity who endorsed the product can’t use it, 28% think that celebrity can use it and
the remaining 24% are dubious in this case. So, it is clear that people think that a
celebrity who can endorsed the product cannot be used by him in real sense.

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9) Out of the following celebrity persona whom do you like most?

a) Bollywood stars. b) Sports stars.

c) None of the above.

MOST PREFFERED NO. OF RESPONDENTS IN %


CELEBRITY
BOLLYWOOD STARS 23 46%
SPORTS STARS 22 44%
OTHERS 5 10%

MOST PREFFERED CELEBRITY


25

20

15
MOST PREFFERED CELEBRITY
10

0
BOLLYWOOD STARS SPORTS STARS OTHERS

INTERPRETATION:- The above bar-diagram represents that out of 50 as per the data
23 prefer the BOLLYWOOD STARS as celebrity endorsements, 22 prefer SPORTS
STAR & rest 5 prefer OTHER categories of celebrities. So, the result depicts that most of
the respondents like BOLLYWOOD STARS.

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MOTIVATING FACTOR FOR BUYING A PRODUCT

In this chart we analysis which factor of sales promotion is liked most by the audience i.e. less
prices, discounts, new trends or the brand ambassador endorsing the product.

MOTIVATING FACTOR NO. OF RESPONDENTS IN %


FOR BUYING A
PRODUCT
LOW PRICES 14 28%
DISCOUNTS 11 22%
LATEST TRENDS 16 32%
BRAND AMBASSADOR 9 18%

MOTIVATING FACTOR FOR BUYING A


PRODUCT
LOW PRICES DISCOUNTS LATEST TRENDS BRAND AMBASSADOR

18% 28%

32%
22%

INTERPRETATION:- This pie-chart depicts that for 32% respondents latest trends are
one of the most motivating factor, for 28% low prices, for 22% discounts and for
remaining 18% brand ambassador or celebrities. The results depicts that most of the
respondents motivate with LATEST TRENDS & least by CELEBRITY OR BRAND
AMBASSADOR.

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WHEN BUYING A MOTOR VEHICLE

MOTOR VEHICLE is a type of luxury item. And in the today’s world demand for it can be
increased as a necessary item for going one place to another. It really makes life more easy. Out
of the survey with taking the example of motor vehicles find out their motivating factor for
buying the motor vehicle i.e. luxury, esteem or status, brand name or celebrity.

CONSIDERATION WHEN NO. OF RESPONDENTS IN %


BUYING A MOTOR
VEHICLE
LUXURY 23 46%
ESTEEM 7 14%
BRAND 13 26%
CELEBRITY 7 14%

WHEN BUYING A MOTOR VEHICLE


LUXURY ESTEEM BRAND CELEBRITY

14%
46%
26%

14%

INTERPRETATION:- From the above pie-chart it is clear that out of the collected
data from 50 persons nearly 46% people buy a motor vehicle due to as a luxury item,
26% due to brand name and 14%-14% are due to esteem and celebrity both. So, most of
respondents buy only due to LUXURY item.

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WHEN BUYING FOOD PRODUCTS

Out of basic needs FOOD is the most important and basic need of a human being for healthy
living. With taking example of food products buying decision analysis can be made to find that
with what factors their decision can be influenced whether with QUALITY, PACKAGING,
BRAND NAME or with CELEBRITY.

CONSIDERATION WHEN NO. OF RESPONDENTS IN %


BUYING FOOD
PRODUCTS
QUALITY 23 46%
PACKAGING 10 20%
BRAND NAME 12 24%
CELEBRITY 5 10%

WHEN BUYING FOOD PRODUCTS


QUALITY PACKAGING BRAND NAME CELEBRITY

10%

24% 46%

20%

INTERPRETATION:- From the pie-chart it is clear that out of 50 persons 46% are
purchase the food products due to the quality, 24% due to brand name, 20% due to
packaging & remaining 10% due to celebrity. So, most of respondents buy food due to
QUALITY and least due to CELEBRITY.

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WHEN BUYING CLOTHES

Clothes are the second basic need out of the all basic needs i.e. food, cloth and shelter as
per the MASLOW’s theory. In the third category of survey with taking example of
clothing products buying decision survey is to made to know with what factors can be
taken into considerations people buy clothes i.e. status, less prices, trends or due to
celebrity.

CONSIDERATION NO. OF RESPONDENTS IN %


WHEN BUYING
CLOTHES
STATUS 8 16%
LOW PRICES 11 22%
TRENDS 21 42%
CELEBRITY 10 20%

WHEN BUYING CLOTHES


STATUS LOW PRICES TRENDS CELEBRITY

20% 16%

22%

42%

INTERPRETATION:- From the pie-chart it is clear that out of 50 persons 42% are
buying clothes due to trends which can be changed as time passes, 22% due to low prices,
20% due to celebrity and remaining 16% due to status. So, the most of respondents
purchases clothes due to latest trends.

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ARGUMENTS FOR CELEBRITY ENDORSEMENT

Brands have been leveraging celebrity appeal for a long time. Across categories, whether
on products or services, more and more brands are banking on the mass appeal of
celebrities. As soon as a new face rise the popularity charts, advertisers queue to have it
splashed all over. Witness the fabulous rise of SANIA MIRZA & IRFAN PATHAN in
endorsements in a matter of a few months. The accruement of celebrity endorsements can
be justified by the following advantages that are present on the overall brand.

ARGUMENTS IN FAVOUR OF CELEBRITY ENDORSEMENT:-

 ESTABLISHMENT OF CREDIBILITY:- Approval of a brand by a star fosters a


sense of trust for that brand among the target audience this is especially true in case of
new products. We had the SHAHRUKH KHAN endorsed SANTRO and this ensured
that brand awareness was created in a market, which did not even know the brand.

 ENSURED ATTENTION:- Celebrities ensure attention of the target group by


breaking the clutter of advertisements and making the ad and the brand more
noticeable.

 PR COVERAGE:- PR COVERAGE is another reason for using celebrities. Managers


perceive celebrities as topical, which create high PR coverage. A good example of
integrated celebrity campaigns is one of the world’s leading pop groups, the spice
girls, who have not only appeared in advertisements for PEPSI but also in product
launching & PR events.

 TIME SAVING:- Celebrity is able to build brand credibility in a short period of time.

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 HIGH DEGREE OF RECALL:- People tend to commensurate the personalities of the
celebrity with the brand thereby increasing the recall value. GOLF CHAMPION,
TIGER WOODS has endorsed AMERICAN EXPRESS, ROLEX & NIKE. PIERCE
BROSNAN promotes BMW & OMEGA .

 ASSOCIATIVE BENEFIT:- A celebrity preference for a brand gives out a persuasive


message because the celebrity a benefiting from the brand, the consumer will also
benefit.

 MITIGATING A TARNISHED IMAGE:- CADBURY INDIA wanted to restore the


consumer’s confidence in its CHOCOLATE brands following the high-pitch worms
controversy so the company appointed AMITABH BACHCHAN for the job. Last year
when the even more controversial issue shook up COCACOLA & PEPSICO are
resulted in much negative press, both soft drink majors put out high profile damage
control ad films featuring their best and most expensive celebrities while AAMIR
KHAN led the COKE fight back as an ingenious & fastidious BENGALI who finally
gets convinced of the products ‘purity’, PEPSICO brought SHAHRUKH KHAN &
SACHIN TENDULKAR together since again on television commercial which drew
references to the safety of the product indirectly.

 PSYCHOGRAPHIC CONNECT:- Celebrities are loved and respected by their fans


and advertisers use stars to capitalize on these feelings to bend the fans towards these
brands.

 DEMOGRAPHIC CONNECT:- Different stars appeal differently to various


demographic segments ( age, gender, class, geography etc.)

 MASS APPEAL:- Some stars have a universal appeal and therefore prove to be good
bet to generate interest among the masses.

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 PROVIDING TESTIMONY:- Another benefit of using celebrity endorsers is that
she/he can provide testimony for a product or service particularly when the product
has contributed to their celebrity. The more familiar an endorser the more likely
consumers are to buy the endorsed product.

 REESTABLISHED A STAGNANT BRAND:- With the objective of infusing fresh


life into the stagnant CHYAWANPRASH category and staving off competition from
various brands, DABUR INDIA roped in BACHCHAN for estimated Rs. 8 crore.

 CELEBRITY ENDORSEMENT CAN SOMETIMES COMPENSATE FOR LACK


OF INNOVATIVE IDEA’S.

ARGUMENTS IN AGAINST OF CELEBRITY ENDORSEMENT:-

The celebrity approach has a few serious risks:

 THE REPUTATION OF THE CELEBRITY MAY DEROGATE AFTER HE/SHE


HAS ENDORSED THE PRODUCT:- PEPSICO suffered with three imperfect
celebrities- MIKE TYSON, MADDONA,& MICHEAL JACKSON. Since the
behavior of the celebrities reflects on the brand, celebrity endorser may at times
becomes liabilities to the brands they endorsed.

 VAMPIRE EFFECT:- The terminology pertains to the issue of a celebrity


overshadowing the brand. If there is no congruency between the celebrity and the
brand then the audience will remember the celebrity and not the brand. e.g. could be
of CASTROL commercial featuring RAHUL DRAVID.

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 INCONSISTENCY IN THE PROFESSIONAL POPULARITY OF THE
CELEBRITY:- The celebrity may loss his/her popularity due to some lapse in
professional performances e.g. when TENDULKAR went through a prolonged rest
patch recently the inevitable question that cropped up in corporate circles –is he
actually worth it ? The 2003 world cup the SHANE WARNE incident which caught
PEPSI off guard. With the Australian cricketer testing positive for consuming banned
substances and his subsequent withdrawal from the event bang in the middle of the
event, PEPSICO the presenting sponsor of the world cup 2003 found itself on an
uneasy wicket.

 MULTIBRAND ENDORSEMENTS BY THE SAME CELEBRITY WOULD


LEAD TO OVER EXPOSURE:- The novelty of a celebrity endorsements gets
diluted if he does too many advertisements. This may be termed as commodity of a
celebrities, who are endorse anything for big bucks e.g. MRF was among the easily
sponsors of TENDULKAR with its logo decorated on his bat. But now
TENDULKAR endorse a countless of the TENDULKAR –MRF campaign has size
down.

 MISMATCH BETWEEN THE CELEBRITY AND THE IMAGE OF BRAND:-


Celebrities manifest a certain persona for the audience. Each celebrity portrays a
broad range of meaning s involving a specific personality and lifestyle e.g.
MADDONA is perceived as tough, intense and modern women associated with the
lower middle class.

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FINDINGS

 In the age of 18-25 years and rest 22% are above 25 years.

 The most of the respondents belongs to MALE category. Out of 50 respondents 64% are
male and 36% are female.

 Out of the study made regarding the most influencing factor of purchase decision is
PRICE. Out of 50 respondents 19 respondents take their purchase decision with taking
into account the price, 12 respondents due to opinion leaders, 9 due to celebrity
endorsement and 11 due to brand name. So, least of the respondents take their decision
due to celebrity endorsement.

 Out of the study results it is find out that 46% respondents purchase product because of
their favorite celebrity can endorsed the product, 24% cannot purchase due to this reason
and 30% can be silent about this question.

 Out of 50 respondents 31 are STRONGLY AGREE & AGREE that CELEBRITY-AN


EFFECTIVE TOOL OF PERSUASION & 19 were indifferent, disagree and strongly
disagree.

 Out of 50 respondents 42% were think that MALE CELEBRITY MORE EFFECTIVE
THAN FEMALE, 30% think female are effective and 28% are silent about it.

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 Out of 50 respondents 48% ARE DISAGREE that CELEBRITY USING THE
PRODUCT WHICH HE/SHE ENDORSED, 28% agree that celebrity use that product
and 24% are indifferent.

 The most of the respondents i.e. 23 out of 50 LIKE most the celebrity as BOLLYWOOD
STARS, 22 like sports stars and 5 like other celebrities.

 The most preferred MOTIVATING FACTOR for buying a product is latest trends. Out of
50 respondents 32% motivating with LATEST TRENDS, 22% with discounts, 28% with
low prices and 18% with brand ambassador.

 For BUYING A MOTORVEHICLE 46% assume it as a LUXURY ITEM, 14% consider


as esteem and status item, 26% due to brand name and 14% due to celebrity out of the
selected 50 respondents.

 For the purchase of FOOD PRODUCTS 46% take into consideration QUALITY, 20%
packaging, 24% brand name, just 10% consider celebrity out of 50 respondents.

 For buying CLOTHING 42% take into consideration LATEST TRENDS, 22% low
prices, 16% status or esteem and just 20% consider celebrity out of the selected area of
survey.

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CONCLUSION

Celebrities have always been the easiest way for a new product launch (consumer’s goods)
and will remain to do so in the near future on account of their mass appeal and a world full of
star stuck loyal fans. But the impact on the brand is much greater than just an advertisement
showing a celebrity. We have seen that the correct choice of a celebrity can surely increase sale
but when it comes to long term loyalty and impact on the brand, the effect is yet somewhat
debatable. In the end, the product must deliver for the customer, no matter who endorses the
product if the customer does not see himself getting value from his purchase, he will not buy it.
But yes, celebrities overtime can influence the loyalty and make a person friendlier to a brand.
Brand and celebrities are here to stay for a long time and in this age of slick advertising and mass
media and unthinkable budgets, celebrities are having a field day charging huge amounts and
making more money than their main stream professions but then do really care about the brand?
or is it just the money? But the bottom line, celebrity endorsements are here to stay.

This paper also bring forth the following insights:-

 Celebrity endorsements do work in the INDIAN scenario. The level & the magnitude of
the effect vary with the celebrity and the product category but most endorsements have a
favorite impact.
 The consumer looks for a variety of aspects from the endorsements like the credibility
and the likability also means the fit between the brand and the celebrity.
 Multiple endorsements do clutter in the minds of consumers.
 When one endorser endorses many brands then the recall of endorsements depends
entirely on the power of the brand. There are definitely some brands that go unnoticed
and the recall for those stands is at a base minimum. The company in that case can
heighten the advertising contents because that catches a special place in the minds of their
customers.
 It is not just the financial gains from the endorsements that matters of the celebrity. They
also look for the fit with the brand and what might the endorsement might do to their
image.
 Professionals performance of endorser is important in deciding the success of
endorsements.

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RECOMMENDATIONS & SUGGESTIONS

The report was linked to specific managerial suggestions regarding more effective use of
celebrities to enhance brand equity:

 Celebrity endorsements will be more effective when used consistently over time to
increase the strength of the link between the celebrity & the endorsed brand.
 Celebrity endorsements will be more effective when the ad execution is simple, clean
and free of irrelevant design elements. Focus on celebrity and the brand together.
 Celebrity endorsements will be more effective when using a celebrity who is not
already strongly associated with another product or service.
 Celebrity endorsements will be more effective when using a celebrity with a high ‘fit’ ,
‘congruence’ or ‘belongingness’ with the endorsed brand.
 Celebrity endorsers can used to effectively reinforce or create an image for a product
or service.
 Test potential brand/ celebrity combination to ensure that the impression and the
image of the celebrity is positive for the target audience.
 Celebrity endorsements will be more effective for less familiar brands.
 Celebrity endorsers will be more effective for brands for which consumers have
limited knowledge.
 Celebrity endorsers will be more effective when integrated across the elements of
marketing mix.
 Caution in choice of celebrity endorsers is warranted given the potential risk of
tarnishing the brand’s image.

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BIBLIOGRAPHY

(iii) Books:-

 Kothari C.L. (2008) “ RESEARCH METHODOLOGY” Kalyani publishers.


 Kotler Philip (2008) “ MARKETING MANAGEMENT” Pearson edition.
 Sontakki C.N. (2010) “ MARKETING MANAGEMENT” Kalyani publishers.
 Gupta Shashi. K., Rangi Parneet (2010) “RESEARCH METHODOLOGY” Kalyani
publishers.

(iv) Websites:-

 www. Google.com
 www.wikipedia.com
 www. Openpolicyontario.pbworks.com
 www.mbabooksindia.com
 www.finalyearreport.com
 www.cadburyindia.com
 www.reebok.com
 www.fiatpalio.com

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QUESTIONNAIRE
Dear Respondents,
I am VIKAS KUMAR YADAV student of BBA Final year am conducting
survey on “CONSUMER PERCEPTION ABOUT CELEBRITY ENDORSEMENT &
BRAND BUILDING”. For this purpose I need your co-operation in fulfilling this
questionnaire. It will take few minutes of your precious time. It is make sure that
information obtained is for general purpose only.

1) Name of the respondent………………………………………………..……………

2) What is your occupation?

a) Business class. b) Service class.

c) Students. d) Others.

3) What is your age?

a) 18-25 b) 26-32

c) 33-39 d) More than 40.

4) What is your gender?

a) Male. b) Female.

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

a) Price b) Opinion leader.

c) Celebrity endorser. d) Brand name.

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

a) Yes. b) No.

c) Can’t say.

7)“Celebrity endorsement is an effective tool of persuasion of buying a product”.


Rate this statement?

a) Strongly agree. b) Agree.

c) Indifference. d) Disagree.

e) Strongly disagree.

8)“Male endorser is more effective as compare to female endorser”. Do you agree?

a) Yes. b) No.

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

a) Yes. b) No.

c) May be.

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10)Out of the following celebrity persona whom do you like most?

a) Bollywood stars. b) Sports stars.

c) None of the above.

Motivation factor for buying a:

A. Motor vehicle:-

a) Luxury. b) Esteem.

c) Brand. d) Celebrity.

B. Clothing:-

a) Status. b) Few prices.

c) Trends. d) Celebrity.

C. Food products:-

a) Quality. b) Packaging.

c) Brand name. d) Celebrity.

Any suggestions.

…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………………………………

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