CHAPTER-1

INTRODUCTION

INTRODUCTION
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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 day. 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, an
Indian marketer found the solution, 'Celebrity Endorsement' for the brand.

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 a lazy 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. 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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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.

The project has been made to study the effect of celebrity endorsements on the consumers
and its effect on the image of the company.

Main aim of the research was to find out how many or how much percentage of
customers is likely to get influenced by celebrity endorsements and their reactions due to
it.

The main problem that was faced while collecting the relevant data was that general
public does not like to fill the Questionnaire. They generally don’t like to fill this because
they believe that it is waste of time.

A questionnaire was conducted to collect information regarding what customers think

about celebrity endorsements, reasons they think for which a company uses them. Here
primary data is being used.

Secondary Data was also used to gather information about meaning of celebrity,
endorsements etc.

Celebrity

To determine this, we need to consider what celebrity actually means. The American
Heritage Dictionary defines celebrity as "a famous person," or "renown, fame." That

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definition is very broad indeed. To be renowned is to simply be well-known. Osama Bin
Laden is well-known, but does not necessarily have the same following as Sharukh Khan
has. By this definition, however, they are both celebrities.

Thus, to be a celebrity, one must be either famous or infamous, and the distinction is not
relevant. By this same token, individuals who have developed a following in
unconventional ways such as the internet or reality programming are certainly celebrities
as well – albeit some have more global coverage than others. So to measure the amount
of celebrity an individual has obtained, one would simply need to measure his or her
popularity.

Here we will like to determine the factors on which we can measure the popularity and
the critical factors that help in making celebrity a true celebrity and also determine the
role played by the news coverage.

Measuring Popularity
Before the information age, to measure popularity would involve countless newspaper
and magazine searches. Print resources as well as television and radio contained any and
all celebrity news and gossip. With the advent of the internet, this changed, of course. In
present times, the internet has not only opened countless doors to those aspiring to
stardom, but has developed a multitude of news and gossip outlets as well.

Most of the conventional media outlets – magazines, newspapers, radio, and television
have developed an online presence. Often these websites contain more information
pertaining to celebrities than the original medium. Those interested in entertainment news
now have almost countless methods to find the information they seek.
The fastest way to find information online, however, is through the search engines. Major
search engines index all web pages and online news items as they are developed, and
offer users a chance to hone in on the desired material. Searching for celebrities will pull
up thousands, if not millions, of relevant results. It follows that by simply counting the

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number of searches and articles for each celebrity, one could understand the popularity of
that individual.

Celebrity Contest
It seems the algorithm developed by CelebrityContest.net holds true. The algorithm
assigns value to a celebrity based on the number and age of news items and searches,
which is the best indicator of popularity. Of course, the algorithm also includes results
from CelebrityContest.net, which are a valid indicator as well.

If a celebrity is popular, he or she will be included in many portfolios. If he is becoming

blasé, he will be dropped from portfolios in favor of more popular individuals. If a
celebrity is looking for a gauge of her own value, she can perform a complicated web
analysis, or simply track her price changes on CelebrityContest.net to understand how her
fan base is feeling. Of course, fans can search for the value of their favorite celebrity, and
even cash in on the details only devoted fans are privy to – insider trading if you will.

Advertising Definition
ADVERTISING is a paid form of communicating a message by the use of various media.
It is persuasive, informative, and designed to influence purchasing behavior or thought
patterns.

One definition of advertising is: "Advertising is the non-personal communication of

information usually paid for and usually persuasive in nature about products, services or
ideas by identified sponsors through the various media." Now let's take this statement
apart and see what it means.

Advantages of Advertising

1) Advertising has, comparatively speaking, all the time in the world. Unlike personal
selling, the sales message and its presentation does not have to be created on the spot
with the customer watching.

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2) Although advertisers may not see the individual customer, nor be able to modify the
sales message according to that individual's reactions at the time, it does have research
about customers. The research can identify potential customers, find what message
elements might influence them, and figure out how best to get that message to them.

3) Advertising can be far cheaper per potential customer than personal selling. Personal
selling is extremely labor-intensive, dealing with one customer at a time. Advertising
deals with hundreds, millions of customers at a time, reducing the cost per customer.

COMMUNICATION
Communication means not only speech or pictures, but any way one person can pass
information, ideas or feelings to another. Thus communication uses all of the senses:
smell, touch, taste, sound and sight. Of the five, only two are really useful in advertising
-- sound and sight.

Smell

Smell is an extremely strong form of communication. However, when it comes to

advertising, it is not very useful. Although a smell can evoke a memory, everyone's
memories are different.

The point is the effect of using smell in advertising cannot be controlled by the advertiser.
Although many people smell the same things, what they associate with those smells
varies with each person. Without some control, smell is a very weak form of
communication for advertising.

Touch

Touch has a limitation that makes it of little use to advertising -- the customer has to
come in actual contact with the item to be touched. Thus the item must actually exist and
be put in a medium that can carry it. This puts touch more in the realm of personal selling
than advertising.

Taste

Taste is probably the least useful communication channel available to advertising. Like
touch, taste requires the potential customer to come in actual physical contact with the

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product. However, taste is even more limited than touch. There are few products other
than food for which taste is a major selling point, and there is virtually no medium in
which an ad can be placed that people are likely to lick; It is possible to use direct mail,
sending samples to homes, but that is an expensive way to advertise.

Thus, taste is much more effective in personal selling, such as sampling foods in
supermarkets or in door-to-door sales.

Sound

Sound is extremely useful for advertising. It can be used in a variety of media, from radio
and television to the new technology of binding micro-sound chips in magazines to
present 20-second sales messages. It is also capable of presenting words and "theatre of
the mind."

Sight

Sight is arguably the most useful of the communication channels available to the
advertiser. Through sight it is possible to use both words and images effectively.

Words do not have to be spoken to be understood. They can be printed, as well. Although
it is difficult to put in written words the emotional impact possible in spoken words, with
their inflections and subtle sound cues, nevertheless written words are unsurpassed for
getting across and explaining complex ideas or arguments.

"A picture is worth a thousand words," is correct. Think how long it takes to describe
something as opposed to showing a picture of it. No matter how many words you use,
some details will be left out that are visible at a glance. Thus sight can quickly and
concisely show a customer what the advertiser wants them to see, be it a product or how
buying the product can benefit them.

INFORMATION

Information is defined as knowledge, facts or news. However, you should bear in mind
that one person's information is another person's scam, particularly when advertisers talk
about their products.

Information comes in many forms. It can be complete or incomplete. It can be biased or

deceptive. Complete information is telling someone everything there is to know about
something: what it is, what it looks like, how it works, what its benefits and drawbacks

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are. However, to provide complete information about anything is time consuming and
difficult. For example, to tell all about a car would require its appearance, manufacture
and manufacturer, what percentage of parts are made in which countries, cost of upkeep,
mileage, cost, sales and excise taxes per state, insurance costs per state and local, ride
characteristics, acceleration, braking distance at many different speeds, etc.. All of this
would require a documentary, not a commercial. Complete information is impossible to
provide in an advertisement.

PAID FOR

If an ad is created and placed in the media, the costs of creation and time or space in the
media must be paid for. This is a major area in which advertising departs from public
relations.

PR seeks to place information about companies and/or products in the media without
having to pay for the time or space. PR creates news releases and sends them to news
media in hopes they will be run. Often PR departments produce events that will be
covered by news media and thus receive space or time. There is no guarantee that the
media will run any of the PR material.

Advertising doesn't have that problem. If time or space is bought in the media, the ads
will appear. The drawback is that ads are clearly designed to extol the virtues of products
and companies, and any ad is perceived by consumers as at least partly puffery. PR
pieces are usually not so perceived.

PERSUASIVE

"Persuasive" stands to reason as part of the definition of advertising. The basic purpose of
advertising is to identify and differentiate one product from another in order to persuade
the consumer to buy that product in preference to another. The purpose of this book is to
discuss some basic elements of persuasion.

PRODUCTS, SERVICES OR IDEAS

Products, services or ideas are the things that advertisers want consumers to buy.
However, there is more involved in products or services than simply items for purchase.

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It is actually a bundle of values, what the product means to the consumer. That bundle
may contain the product's function, but also the social, psychological, economic or
whatever other values are important to the consumer.

Perceptible

Perceptible differences are those that actually exist that make one product obviously
different from others of the same kind. The difference may in color or size or shape or
brand name or some other way. In any case, the consumer can easily see that this car or
couch or camera is different from other cars or couches or cameras. Perceptible
differences allow a person to make an instant identification of one product as opposed to
another.

Imperceptible

Imperceptible differences are those that actually exist between one product and others,
but are not obvious. For example, there are imperceptible but profound differences
between MS-DOS and Apple and MacIntosh computers. You can't simply look at a
computer and tell which it is; machines can and usually do look alike. And yet buying
either precludes being able to use software designed for the other.

Induced

For many products, there is no actual substantive difference between one and another.
For these products, the only way to differentiate one from another is to induce that
difference, to persuade people that there actually is some difference, and that difference is
important to them. These differences are created through advertising, not through any
inherent difference in the products, and that creation often uses the appeals and methods
discussed in the bulk of this book.

IDENTIFIED SPONSORS

Identified sponsor means whoever is putting out the ad tells the audience who they are.
There are two reasons for this: first, it's a legal requirement, and second, it makes good
sense.

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Second, it makes good sense for a sponsor to identify themself in the ad. If the sponsor
doesn't, it is possible for the audience to believe the ad is for a competitor's product, thus
wasting all the time, creativity and money that went into making and placing the ad.

VARIOUS MEDIA

The various media are the non-personal channels of communication that people have
invented and used and continue to use. These include newspapers, magazines, radio,
television, billboards, transit cards, sandwich boards, skywriting, posters, anything that
aids communicating in a non-personal way of ideas from one person or group to another
person or group.

Negative effects of advertising

1) An extensively documented effect is the control and vetoing of free information by the
advertisers. Any negative information on a company or its products or operations often
results in pressures from the company to withdraw such information lines, threatening to
cut their ads.

2) Advertisers may try to minimise information about or from consumer groups,

consumer-controlled purchasing initiatives, or consumer-controlled quality information
systems.

3) Another indirect effect of advertising is to modify the nature of the communication

media where it is shown. Media that get most of their revenues from publicity try to make
their medium a good place for communicating ads before anything else. The clearest
example is television, where broadcasters try to make the public stay for a long time in a
mental state that encourages spectators not to switch the channel during advertisements.

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Celebrity Endorsements

An endorsement done by the celebrity is known as Celebrity Endorsements.

An endorsement basically means an ad to persuade the target customer or to create an

interest in the minds of consumer. Endorsement is not just done for creating an interest
but also it tries to have a competitive advantage over the competitors. Endorsement is
also used in the case where you want people to know the overall advantage or extra
facilities that you will provide to a customer. Endorsement can be done on regular and
non-regular basis.

A Company tends to use different types or techniques of using an endorsement or may be

for different reasons like creating an effect on audience, creating a brand awareness or for
popularity gain.

Endorsement can be done by different endorser. They may be from different fields of like
bollywood, sports, models or any one.

This is the thing that a company needs to decide on its own. They need to think and try to
used an endorser who can create an interest in the minds of consumer, can have some
kind of impact on their decisions, An endorser must have some qualities like good image,
clean image, good communication skills, influencing power, knowledge about the pros
and cons of that product, the product should suit to the personality of endorser and the
product should be used by that endorser. Endorser should also have credibility also.
These are various things that a company keeps in mind while choosing the endorser.

Just by choosing the right kind of endorser might not have a impact on the interest,
decision making etc. It is also very important the time factor. If a right endorser does an
ad at a right time, then it can have a positive impact on the product.

Now the types of the media that they will be using will also a very important decision
from a company’s point of view. Media can of different types like print media (like
newspaper), audio-visual (like television), or audio (like radio).

The most important thing that need to kept in the mind is the target customer.

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If a right kind of target customer is not search properly, then all the efforts that is time,
money will be wasted. Then even celebrity endorsement will not have any kind of
impact, instead of it can also lead to some kind of negative impact.

Endorsing a Celebrity for the brand means you are selecting a medium for your brand to
reach the insight of the target groups. We generally use celebrity as the medium to
communicate our message to the target groups because of their wider acceptability
amongst the population. But the most important reason for Celebrity endorsement is that,
we want to establish the brand personality similar to the personality of the target groups
that helps us to ensures that our brand identity what we create is similar to the brand
image what the target audiences perceived in their mind. And for this, we matched the
celebrity’s personality with our brand’s personality before endorsing him/her for the
brand.

Keeping all these things in mind, the negative actions of the celebrity hampers the brand
personality and brand image, thus damaging the overall acceptability of the brand. For
example we know that in past famous rock star Michel Jackson is involved in some child
abusing cases, may be he is innocent or not but we can’t endorse him for the baby
products or even for any product keeping in view that he is famous in all part of the
world. Even Pepsi Co. also dumped him.

Brand can be a person also. In India, Amitabh Bachchan was seen as a big brand once he
started endorsements but now he's found in every other advertisement, which had given a
negative impression of him, and that’s also a case of a good brand ending up as
NEGATIVE BRANDING.

The celebrity’s role is the most explicit and profound in incarnating user associations. To
comprehend this, let us analyze the multiplier effect formula for a successful brand:

S=P* D*AV
Where S is a successful brand,
P is an effective product.

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D is Distinctive Identity
and AV is Added values.

The realm of the celebrity’s impact is confined to bestow a distinctive identity and
provide AV to the brand; the celebrity does not have the power to improve or debilitate
the efficiency and features of the core product. Thus, we are gradually approaching an
evident proposition claiming,

“The health of a brand can definitely be improved up to some extent by celebrity

endorsement. But one has to remember that endorsing a celebrity is a means to an end
and not an end in itself.”

An appropriately used celebrity can prove to be a massively powerful tool that magnifies
the effects of a campaign. But the aura of cautiousness should always be there. The fact
to be emphasized is that celebrities alone do not guarantee success, as consumers
nowadays understand advertising. They know what advertising is and how it works.
People realize that celebrities are being paid a lot of money for endorsements and this
knowledge makes them cynical about celebrity endorsements.

ADVANTAGES OF CELEBRITY ENDORSEMENTS

Brands have been leveraging celebrity appeal for a long time. Across categories, whether
in products or services, more and more brands are banking on the mass appeal of
celebrities. As soon as a new face ascends the popularity charts, advertisers queue up to
have it splashed all over. Witness the spectacular rise of Sania Mirza and 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 bestowed on the overall brand:

1) Establishment of Credibility

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 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 Shah
Rukh-Santro campaign. At launch, Shah Rukh Khan endorsed Santro and this
ensured that brand awareness was created in a market, which did not even know
the brand.

2) Ensured Attention

Celebrities ensure attention of the target group by breaking the clutter of

advertisements and making the ad and the brand more noticeable.

3) PR coverage

It 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 and
PR events. Indeed, celebrity-company marriages are covered by most media from
television to newspapers (e.g. The Spice Girls and Pepsi)

4) Higher 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, and Nike. Actress Catherine Zeta-Jones is used by T-
Mobile and Elizabeth Arden. 007 Pierce Brosnan promotes Omega, BMW, and
Noreico.

5) Associative Benefit

A celebrity’s preference for a brand gives out a persuasive message - because the
celebrity is benefiting from the brand, the consumer will also benefit.

6) 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

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 Bachchan for the job. Last year, when the even more controversial pesticide issue
shook up Coca-Cola and PepsiCo and 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 fightback as an
ingenious and fastidious Bengali who finally gets convinced of the product's
`purity,' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once
again in a television commercial which drew references to the `safety' of the
product indirectly.

7) Psychographic Connect

Celebrities are loved and adored by their fans and advertisers use stars to
capitalise on these feelings to sway the fans towards their brand.

8) Demographic Connect

Different stars appeal differently to various demographic segments (age, gender,

class, geography etc.).

9) Mass Appeal

Some stars have a universal appeal and therefore prove to be a good bet to
generate interest among the masses.

10)Rejuvenating 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 an estimated Rs 8 crore.

11)Celebrity endorsement can sometimes compensate for lack of innovative ideas

DISADVANTAGES OF CELEBRITY ENDORSEMENTS:

The celebrity approach has a few serious risks:

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1. The reputation of the celebrity may derogate after he/she has endorsed the
product

Pepsi Cola's suffered with three tarnished celebrities - Mike Tyson, Madonna, and
Michael Jackson. Since the behaviour of the celebrities reflects on the brand,
celebrity endorsers may at times become liabilities to the brands they endorse.

2. The vampire effect

This 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. Examples are the campaigns of Dawn
French—Cable Association and Leonard Rossiter—Cinzano. Both of these
campaigns were aborted due to celebrities getting in the way of effective
communication. Another example could be the Castrol commercial featuring
Rahul Dravid.

3. Inconsistency in the professional popularity of the celebrity

The celebrity may lose his or her popularity due to some lapse in professional
performances. For example, when Tendulkar went through a prolonged lean patch
recently, the inevitable question that cropped up in corporate circles - is he
actually worth it? The 2003 Cricket World Cup also threw up 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.

4. Multi brand endorsements by the same celebrity would lead to overexposure

The novelty of a celebrity endorsement gets diluted if he does too many

advertisements. The celebrities are willing to endorse anything for big bucks.
Example, MRF was among the early sponsors of Tendulkar with its logo

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 emblazoned on his bat. But now Tendulkar endorses a myriad brands and the
novelty of the Tendulkar-MRF campaign has scaled down.

5. Celebrities endorsing one brand and using another (competitor)

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

6. Mismatch between the celebrity and the image of the brand

Celebrities manifest a certain persona for the audience. It is of paramount

importance that there is an egalitarian congruency between the persona of the
celebrity and the image of the brand. Each celebrity portrays a broad range of
meanings, involving a specific personality and lifestyle. Madonna, for example, is
perceived as a tough, intense and modern women associated with the lower
middle class. The personality of Pierce Brosnan is best characterized as the
perfect gentlemen, whereas Jennifer Aniston has the image of the ‘good girl from
next door’.

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 OBJECTIVES OF THE STUDY

1. To understand the concept of celebrity endorsements.

2. To determine the main quality that they expect an endorser should have according
to the consumers.

3. To know that whether the consumers feel that the celebrity actually uses the
product which he or she is actually endorsing.

4. To know whether consumers purchase decisions are influenced by celebrity

endorsements.

5. To determine the main factor which consumers consider before buying the
product.

6. To determine who is the most preferred type of celebrity.

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 RESEARCH METHODOLOGY

Research methodology is the basic framework and the approach that has to be followed to
carry out the research work; most of the things while conducting the research work are
based upon the research methodology, like the approach used to collect the data, the
sources of primary data, i.e. from where and how it has been collected.

THE SAMPLING PROCEDURE:

While carrying out the primary survey, it is not possible to interview and study each and
every individual so a relatively small group of individual from the universe is selected
which is able to represents the whole universe. This selected group is called sample. The
sample was chosen using convenience sampling methods.

SAMPLE UNIT:

This takes into account target population that will be sampled. In other words, who are
the people to be surveyed? In this respect the target population includes respondents from
DELHI region.

SAMLE SIZE:

This takes into account the number of respondent selected from the universe that should
be surveyed. It is generally preferable to have a large sample size, which is considered to
give more reliable result.

In this respect sample size for the customer is taken 100.

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DATA COLLECTION

Both primary and secondary data is used in the research –

Data Collection Methods

To conduct the market research the data is collected by two sources.

Primary Data :

The primary sources of data refer to the first hand information. Primary data is collected
during the survey with the help of Questionnaires.

Secondary Data :

Secondary data is one which already exists and is collected from the published sources.

The sources from which secondary data was collected are:-

• India Today
• Internet

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 LIMITATIONS OF THE STUDY

➢ Secondary data was difficult to find.

➢ The sampling was of convenience sampling, where the error could be of the
highest level.

➢ The sample size of respondents (i.e. 100) was low.

➢ A number of respondents being illiterate, it took us lot of time in collecting the

correct information.

➢ Time and money were the greatest limitations in carrying out the surveys.

➢ The response given by customers may be distorted by some other factors.

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 CHAPTER – 2
REVIEW OF RESEARCH STUDY

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Effect of Couples

Real life couples of the Hindi film industry seems to be using their personal relationships
for professional purposes. Like Saif Ali Khan and Kareena Kapoors’s Brand worth in
films is estimated to be between 10 and 12 crores about 10 crores in ads. Ajay Devgan
and Kajol, who have been endorsing brands together, reportedly take home between six
and eight crores, are doing a reality shown n television and are reuniting on a screen in a
new film.

John Abraham and Bipasha’s Basu brand’s worth could be around 8 crores in film, and
about five crores in ads.

Despite their last cinematic flop Abhsihek and Aishwarya Rai Bachchan fetch abnbout 12
crores in films and ad campaigns and have 100 crores riding on their films together.

Komal Nahta, tarde analyst feels, “If you take Ajay-Kajol in an endorsement, in keeping
with the promotion of their upcoming movie, then it will be a mileage for their new film,
and if you look at it from a corporate point of view it makes a sense to advertisers.

But is it just the ‘couple’ effect that charms the audience? Abdul Khan vice president,
(marketing) of a national tele-services firm that has Ajay Devgan and Kajol in its ads
agree that the “power of two” brings good tidings for some brands. “The Ajay-Kajol”
jodi has worked well for our brand, their personalities complement each other and
audience identifies that.

The media also plays a big role in reinforcing the curiosity factor among the audience,
who want to know what is happening in a celebrity’s relationship and the ads act as a
teaser to the same. Trade analyst Taran Adarsh,feels the ‘comfort level’ of such couple
attracts offer. He says, “The couple effect is what vouches for the endorsements, also
availability of such couples to work and spend time with each other.

Trade Pundit and advertisers were quick to cash in on this behavioral pattern and turned it
into successful advertising strategy for many products and services. Many of these jodis
have not tasted success as a couple in their films together and yet can be a lethal
combination for a product.

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Adman Santoshi Desia, says “It is a matter of convience, if you get one partner on a
board, then its easy to get the other. There is a chance of campaigning bombing of the
two decide to call their relationship quits. The power-couple phenomenon need not
always translate into a winning proposition for the brand. A credible couple is hard to
find in bollywood.”

Adman Alque Padamsee analyses “In a country which is star struck, when such power
couples appear in ads, the audience feels that they are getting glimpse into their personal
relationship. Again, if SRK were to charge 6 crores for an endorsement, advertisers can
get a decent deal with bollywood jodis who can charge anything between 2 crore and 4
crore. At the end of day it is a win-win situation for everyone.”

With more bollywood couples openly talking about their love lives in public, the
audience can see more of them selling soaps, colas and washing machines. So, who next
more and more ads of deepika and ranbir kapoor?

Modern Advertising
Modern advertising—advertising with the goal of creating desire for a product where
none previously existed—began in the early twentieth century. With the blessing of
leaders in the advertising industry, academic psychologists had begun applying principles
of psychology to advertising content in the late 1890s. In 1901, psychologist Walter Dill
Scott, speaking on the psychology of advertising, addressed a gathering of businessmen.
His book The Theory of Advertising appeared in 1903. Advertisers were initially skeptical
of Scott's thesis that psychological principles, especially the concept of suggestion, could
be effectively applied to advertising.

An ongoing conflict thus arose in the early twentieth century between two types of
advertising: "reason-why" and "atmosphere" advertising. Dominant in the late nineteenth
century, reason-why advertising consisted of long, detailed discourses on the features of a
product. Atmosphere advertising reflected psychology's influence; it emphasized visual
imagery that evoked emotions. The conflict between the two types of advertising was
especially intense in the decade before World War I (1914–1918). In 1909, the
advertisers of Colgate toothpaste took the conflict directly to consumers, giving them the

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opportunity to decide "Which Is the Better Ad?"—the one that offered a detailed
explanation of the health advantages of Colgate toothpaste, or the one that used
illustrations to associate the use of Colgate with a happy family life.

Most practitioners and advertisers were won over by about 1910. Psychologists were
judged correct; advertising could change needs and desires. After 1910, most advertising
copy emphasized buyers' needs and desires rather than the product's objectively described
characteristics.

By the mid-1920s, the two types of advertising peacefully coexisted. Reason-why copy
was deemed appropriate for industrial advertising where decision-making rested on a
"rational" profit motive. Atmosphere advertising dominated consumer goods advertising;
with increasing standardization of consumer products eliminating many of the real
differences between brands, the emphasis of advertising shifted to the "imagined"
advantages.

A number of advertising textbooks appeared in the 1920s, authored by professors of

psychology whose academic affiliations were often with schools of business. Surveys
sought to ascertain the fundamental wants or desires of human beings. A typical list
would include appetite, love, sexual attraction, vanity, and approval by others.
Atmosphere advertisements emphasized how a product could satisfy these desires.

Advertisers increasingly looked upon themselves as quite set apart from the consumers
who saw their ads. Copywriters were male. Consumers were female. Roland Marchand,
author of Advertising the American Dream (1985), found that advertisers in the 1920s
and 1930s were predominantly male, white, Christian, upper-class, well-educated New
Yorkers who frequently employed servants and even chauffeurs, and whose cultural
tastes ran to modern art, opera, and symphonies.

Forms of Advertising
Advertising can take a number of forms, including advocacy, comparative, cooperative,
direct-mail, informational, institutional, outdoor, persuasive, product, reminder, point-of-
purchase, and specialty advertising.

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Advocacy Advertising Advocacy advertising is normally thought of as any
advertisement, message, or public communication regarding economic, political, or social
issues. The advertising campaign is designed to persuade public opinion regarding a
specific issue important in the public arena. The ultimate goal of advocacy advertising
usually relates to the passage of pending state or federal legislation. Almost all nonprofit
groups use some form of advocacy advertising to influence the public's attitude toward a
particular issue. One of the largest and most powerful nonprofit advocacy groups is the
American Association of Retired Persons (AARP). The AARP fights to protect social
programs such as Medicare and Social Security for senior citizens by encouraging its
members to write their legislators, using television advertisements to appeal to emotions,
and publishing a monthly newsletter describing recent state and federal legislative action.
Other major nonprofit advocacy groups include the environmental organization Green-
peace, Mothers Against Drunk Driving (MADD), and the National Rifle Association
(NRA).

Comparative Advertising Comparative advertising compares one brand directly or

indirectly with one or more competing brands. This advertising technique is very
common and is used by nearly every major industry, including airlines and automobile
manufacturers. One drawback of comparative advertising is that customers have become
more skeptical about claims made by a company about its competitors because accurate
information has not always been provided, thus making the effectiveness of comparison
advertising questionable. In addition, companies that engage in comparative advertising
must be careful not to misinform the public about a competitor's product. Incorrect or
misleading information may trigger a lawsuit by the aggrieved company or regulatory
action by a governmental agency such as the Federal Trade Commission (FTC).

Cooperative Advertising Cooperative advertising is a system that allows two parties to

share advertising costs. Manufacturers and distributors, because of their shared interest in
selling the product, usually use this cooperative advertising technique. An example might
be when a soft-drink manufacturer and a local grocery store split the cost of advertising
the manufacturer's soft drinks; both the manufacturer and the store benefit from increased
store traffic and its associated sales. Cooperative advertising is especially appealing to
small storeowners who, on their own, could not afford to advertise the product
adequately.

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Direct-Mail Advertising Catalogues, flyers, letters, and postcards are just a few of the
direct-mail advertising options. Direct-mail advertising has several advantages, including
detail of information, personalization, selectivity, and speed. But while direct mail has
advantages, it carries an expensive per-head price, is dependent on the appropriateness of
the mailing list, and is resented by some customers, who consider it "junk mail."

Informational Advertising In informational advertising, which is used when a new

product is first being introduced, the emphasis is on promoting the product name,
benefits, and possible uses. Car manufacturers used this strategy when sport utility
vehicles (SUVs) were first introduced.

Institutional Advertising Institutional advertising takes a much broader approach,

concentrating on the benefits, concept, idea, or philosophy of a particular industry.
Companies often use it to promote image-building activities, such an environmentally
friendly business practices or new community-based programs that it sponsors.
Institutional advertising is closely related to public relations, since both are interested in
promoting a positive image of the company to the public. As an example, a large lumber
company may develop an advertising theme around its practice of planting trees in areas
where they have just been harvested. A theme of this nature keeps the company's name in
a positive light with the general public because the replanting of trees is viewed
positively by most people.

Outdoor Advertising Billboards and messages painted on the side of buildings are
common forms of outdoor advertising, which is often used when quick, simple ideas are
being promoted. Since repetition is the key to successful promotion, outdoor advertising
is most effective when located along heavily traveled city streets and when the product
being promoted can be purchased locally. Only about 1 percent of advertising is
conducted in this manner.

Persuasive Advertising Persuasive advertising is used after a product has been

introduced to customers. The primary goal is for a company to build selective demand for
its product. For example, automobile manufacturers often produce special advertisements
promoting the safety features of their vehicles. This type of advertisement could allow

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automobile manufactures to charge more for their products because of the perceived
higher quality the safety features afford.

Product Advertising Product advertising pertains to non-personal selling of a specific

product. An example is a regular television commercial promoting a soft drink. The
primary purpose of the advertisement is to promote the specific soft drink, not the entire
soft-drink line of a company.

Reminder Advertising Reminder advertising is used for products that have entered the
mature stage of the product life cycle. The advertisements are simply designed to remind
customers about the product and to maintain awareness. For example, detergent
producers spend a considerable amount of money each year promoting their products to
remind customers that their products are still available and for sale.

Point-of-Purchase Advertising Point-of-purchase advertising uses displays or other

promotional items near the product that is being sold. The primary motivation is to attract
customers to the display so that they will purchase the product. Stores are more likely to
use point-of-purchase displays if they have help from the manufacturer in setting them up
or if the manufacturer provides easy instructions on how to use the displays. Thus,
promotional items from manufacturers who provide the best instructions or help are more
likely to be used by the retail stores.

Specialty Advertising Specialty advertising is a form of sales promotion designed to

increase public recognition of a company's name. A company can have its name put on a
variety of items, such as caps, glassware, gym bags, jackets, key chains, and pens. The
value of specialty advertising varies depending on how long the items used in the effort
last. Most companies are successful in achieving their goals for increasing public
recognition and sales through these efforts.

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 CHAPTER – 3
DATA ANALYSIS AND RESULTS

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Percent of People Influenced

39% of the people feels that they are not influenced by any celebrity endorsement, only
5% are highly influenced by these endorsements and most of the people that is 56% feels
that they are moderately influenced by celebrity endorsements.

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Tendency to Buy the Product

Here we tried to find out the tendency to buy the product if it’s endorsed by your favorite
celebrity. 12% feels like that they will buy the product at times if its endorsements is
done by their preferred celebrity,88% customer will consider their need first and no one
will directly buy the product that is 0% of people, inspite of their favorite celebrity.

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Determinant of Key Factor or Aspect

17% consider brand image as an important factor while buying the product, 35% will
look for its product quality and 45% considers their need as most important factor while
buying the product and only 3% will consider celebrity factor while buying the product.

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Role in Brand Building Process

65% customer feels that a celebrity endorsements helps in brand building process, 30%
feels that it does not helps and only 5% were not able to comment on it.

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Reasons for Using Celebrity

45% of the people feels that the reason behind using celebrity endorsement is for
popularity gain, 27% feels that it is used for brand awareness, 26% feels that it is used for
creating a effect on the audience and only 2% of the people feels that there are some
other reasons apart from the above..

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Product Actually Used by the Celebrity

8% feels that a celebrity doing an ad of a product is actually used by him, 46%

respectively feels that it is not used by them and same percentage of people feels that it
may be used by them.

35
Gender Consideration

60% feels that an endorsement should be done by the same gender for whom the product
is actually meant, 21% feels that an endorsements feels that some other gender can also
do endorsement for that product, 19% were not able to comment on it.

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Preferable Celebrity

33% people consider bollywood stars as preferred celebrity, only 14% feels considers
cricketers as preferred celebrity, just 2% feels that endorsement should be done by
models whereas 51% feels that endorsement should be done by anyone.

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Celebrity Endorsements as a Principal Channel of Brand
Communications

25% considers celebrity endorsement as principal channel of brand communications and

majority of the people considers that is 75% that celebrity endorsement is not a principal
channel of brand communication.

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Frequency of Use of Celebrity Endorsements

11% feels that frequency of use of celebrity endorsement should be high, only 9% feels
that it should be low whereas maximum people that is 80% believe that that it should be
moderate only.

39
Age Consideration

45% believes that endorsement should be done by similar age only for whom the product
is actually meant, but 55% believes that endorsement should not necessarily be done the
similar age.

40
Media Preference

60% of the people prefer TV whereas 30% of the people prefer newspaper. And last 10%
of the people prefer radio.

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Effect of Celebrities on the Cost of the Product

When a company uses the celebrity endorsements, 50% of the customers feel that it
increases the price of the product and the same no. or same percentage of the people
thinks other way round.

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Quality An Endorser Should Have

26% of people think communication skills is the most important quality that the endorser
should poses. 30% people believes the influencing power is the imp skills of endorser.
26% of people think personality is the most important quality that the endorser should
poses.15% of people think image is the most important quality that the endorser should
poses. 2% of people think social work is the most important quality that the endorser
should poses.

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 CHAPTER – 4
FINDINGS, CONCLUSION AND
RECOMMENDATIONS

44
 FINDINGS AND CONCLUSIONS

From the survey conducted the following findings can be concluded:

1. Most respondents consider their need first before they buy the product rather than
the celebrity who endorses the product.

2. Brand image, product quality, the need are the most important factors for the
consumers while buying the product rather than celebrity endorser.

3. Most respondents feel that celebrity endorsements help in the brand building
process.

4. Almost 50% of people think celebrity endorsements are used to gain popularity.

5. Almost 50% respondents feel that celebrity do not use the products they endorse.

6. More than 50% of people feel that celebrity should be of the same gender that of
the target consumer group.

7. Majority of the respondents consider that celebrity endorsement is not a principal

channel of brand communication.

8. Most of the respondents feel celebrity endorsements should not be used too
frequently.

9. 45% believes that endorsement should be done by similar age only for whom the
product is actually meant, but 55% believes that endorsement should not
necessarily be done the similar age.

10. TV is the most preferred media for celebrity endorsements

11. 50% respondents feel that celebrity endorsement increases the price of the
product.

12. Communication skills, influence power and personality are the most important
qualities an endorser should have.

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With the help of the celebrities’ endorsement we realized that the interest was created in
the mind of the consumers, but it does not necessary help in realizing sales of the
company.

The ultimate factor that a customer considers before buying the products is their need
consideration.

Customers feel that the companies use the celebrities for gaining popularity for the
product and brand awareness and for creating an effect on them.

A celebrity is a means to an end, and not an end in himself/herself. This is because the
main factor or critical factor that a customer considers before purchasing the product is
only their need.

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 RECOMMENDATIONS

After studying deeply about the banking procedure facilities and suggestion given by the
customers, the following suggestions and recommendations can be drawn:-

1. If the marketing of a product has to be effective then there has to be proper and
right selection of the endorser by the companies and celebrity endorsements
should be used moderately by the companies.

2. The companies need to consider the most preferred quality that an endorser
should have so that on the basis of it they can choose the better celebrity.

3. Companies should use the celebrity endorsements as a marketing strategy at the

time of launching of the new product as it helps in brand building.

4. The companies must find ways to convince the customers that these product are
actually used by the endorser so that it can help in increasing the sales of the
company.

5. Most of the people does not considers that celebrity endorsements is the principal
channel of the brand communications, so the companies should try and identify
other channels of brand communications.

6. The companies should choose the celebrity to endorse the product according to
the age group and the gender of the target market.

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 ANNEXURE

QUESTIONNAIRE

Q1) Are you influenced by any celebrity endorsements?

a) Not so much (0%-35%)

b) Moderately (35%-65%)

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 c) Highly (65%-100%)

Q2) What is your tendency to buy the product directly if it is done by your favorite
celebrity?

a) Always
b) At times
c) Never, depends on my need

Q3) What you consider most important while buying your product?

a) Brand Image
b) Celebrity
c) Product utility
d) Quality

Q4) Do you think does a celebrity help in brand building process?

a) Yes
b) No
c) Can’t say

Q5) What is the reason you consider that brand uses a celebrity?

a) Popularity Gain
b) Brand awareness
c) Creating a effect on audience
d) Any other reasons

Q6) Do you think a celebrity doing an endorsement for a company actually uses that

49
 product?

a) Yes
b) No
c) May be

Q7) Do you think that an endorsement should be done by same gender for whom actual

product is useable?

a) Yes
b) No
c) Can’t say

Q8) Who is the most preferred celebrity?

a) Any bollywood star

b) Any cricketer
c) Models
d) Anyone

Q9) Should celebrity endorsements be the principal channel of brand communications?

a) Yes
b) No
c) Can’t say

Q10) What should be the frequency of using celebrity endorsements?

a) High
b) Moderate

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 c) Low

Q11) A celebrity doing an ad for a company should be of similar age for whom the
product is meant?

a) Yes
b) No
c) Can’t say

Q12) Do think these celebrity endorsements leads to an increase in the price of the
product?

a) Yes
b) No
c) Can’t say

Q13) which of the following media do you prefer for celebrity endorsements?

a) TV
b) Newspaper
c) Radio
Q14) What is the ultimate quality that you expect an endorser should have?

a) Communication skills
b) Influencing power
c) Image
d) Personality
e) Social work
f) Voice modulation

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Name: ________________________

Address: ______________________

Occupation: ___________________

52
 BIBLIOGRAPHY

WEBSITES

✔ http://www.Definethat.com/kikphp/adver.html

✔ http://www.Markettrends.org/promotion/adver/celeb.html

✔ http://www.Adverguru.com/endorse129/cb.html

✔ http://en.Wikipedia.org/wiki/celebrtiy.html

✔ http://en.Wikipdeia.org/wiki/endorsement.html

BOOKS

• V.S.Ramaswamy & S.Namakumari, Marketing Management, Seventh Edition,

India, Macmillan, 2007

• T.N.Chhabra & S.K.Grover, Marketing Management, Fourth Edition, India,

Dhanpat Rai, 2008

• S.L.Gupta, Marketing Research, First Edition, India, Excel Books, 2009

• Philip Kotler, Marketing Management, Twelfth Edition, Singapore, Pearson

Education, 2006

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