Vikas P.docx

A 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: Prof. KAREENA MANOCHA Department of Business Administration

Submitted By: Vikas Kumar Yadav 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. 1.

CHAPTER’S NAME

INTRODUCTION ABOUT CELEBRITY ENDORSEMENT

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PAGE NO.

RESEARCH METHODOLOGY

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41-48

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

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RESULTS AND INTERPRETATION

49-66

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FINDINGS

67-69

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CONCLUSION

70-71

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SUGGESTIONS & RECOMMENDATIONS

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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)

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

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

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

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

Entertainers : (e.g. KAPIL SHARMA)

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Pop-stars: (e.g. MADONA, SHAKIRA)

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Businessmen: (e.g. MUKESH AMBANI)

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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 22

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 singlehandedly 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:- Shortterm 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.

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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. 31

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.

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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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(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

8%

49%

students

others

16%

27%

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.

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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%

FACTORS AFFECTING PURCHASE

20 15 10

FACTORS AFFECTING PURCHASE

5 0 PRICE

OPINION LEADERS

INTERPRETATION :-

CELEBRITY BRAND NAME

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 %

STRONGLY DISAGREE

4

8%

DISAGREE

6

12%

INDIFFERENCE

9

18%

AGREE

19

38%

STRONGLY AGREE

12

24%

EFFECTIVE TOOL OF PERSUASION

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. 55

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 THE

USING NO. OF RESPONDENTS

IN %

ENDORSED

PRODUCT YES

24

48%

NO

14

28%

MAY BE

12

24%

CELEBRITY USING THE ENDORSED PRODUCT YES

24%

NO

MAY BE

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 5 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 FOR

FACTOR NO. OF RESPONDENTS

BUYING

IN %

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

18% 32%

BRAND AMBASSADOR

28%

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. 59

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 BUYING

A

IN %

MOTOR

VEHICLE LUXURY

23

46%

ESTEEM

7

14%

BRAND

13

26%

CELEBRITY

7

14%

WHEN BUYING A MOTOR VEHICLE LUXURY

ESTEEM

14%

BRAND

CELEBRITY

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 BUYING

IN %

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 %

STATUS

8

16%

LOW PRICES

11

22%

TRENDS

21

42%

CELEBRITY

10

20%

WHEN

BUYING

CLOTHES

WHEN BUYING CLOTHES STATUS

LOW PRICES

20%

TRENDS

CELEBRITY

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. 71

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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. c) Indifference.

b) d)

Agree. 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. 78

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. c) Brand name.

b) Packaging. d) Celebrity.

Any suggestions. ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ……………………………………………………………… 79