INTRODUCTION

India is a country where people love to live in dreams. They worship celebrities.
Celebrities which might be cricket stars like Sachin Tendulkar, Mahinder Singh Dhoni or
Film Stars like Shah Rukh Khan or John Ebrahim. They treat them as God. Marketers use
this very preposition so as to influence their target customers may exist or potential ones.
For this they rope in these celebrities and 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.

The field of consumer behavior is the study of individuals, groups or organizations and
the processes they use to select, secure, use and dispose of product, services, experiences,
or ideas to satisfy needs and impacts that these processes have on the consumer and
society. And understanding the consumer behavior is the prime and toughest task in front
of every marketer. There are a lot of factors, which influence consumer buyer behavior.
This study aimed at to understand the influence of celebrity endorsement on consumer
buying behavior. Marketers pay millions of Dollars to celebrity endorsee hoping that the
stars will bring their magic to brand they endorse and make them more appealing and
successful. But all celebrity glitter is not gold.

The celebrity endorser fits in between these two interactions, where he tries to bring the
image of the product closer to the expectation of the consumer, by transferring some of
the cultural meanings residing in his image to the product. Now, despite the potential
benefits derived from celebrity endorsements, they increase a marketer’s risk manifolds
and should be treated with full attention and aptitude.

What therefore seems relevant by the study is that, yes, definitely celebrity endorsee
influence consumer buying behavior and brand building but while using celebrity
endorsee, marketer has to take care of all the aspect that whether they brought personality
and image of celebrity matches or not, whether celebrity endorsee has deep penetration
among the masses or not, whether he is considered as credible source or not etc.

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 OBJECTIVES

The objectives of the study are as follows:

 To identify the factors that affects purchase attitude of the consumers
 To study the consumers perception on endorsement of celebrities through
advertisement of consumer response.
 To identify the factors that makes consumer loyal toward a particular brand of
soft drink.

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3
Literature Review
According to McCracken (1989), a celebrity endorser is defined as ‘‘any individual who
enjoys public recognition and who uses this recognition on behalf of a consumer good by
appearing with it in an advertisement. (Wei and Lu,2013) According to (Schlecht 2003)
term ‘celebrity’ can be defined as, ”Celebrities are people who enjoy public recognition
by a large share of certain Group of people.” (Ahmed et al. 2012)

Marketing tends to take on new and unique ways of advertising as advertisers are
exploring different ways to make the advertisements effective and influential as well.
Celebrity endorsement is one of these. The advertisers know it very well that the positive
image that the celebrities cast on the audience is can make the message in the
advertisement more persuasive (CHOI and Rifon 2007). Advertisers go for celebrity
endorsement because of its greater benefits and immense possible influence. There are
certain potential advantages of celebrity endorsement, celebrities endorsed
advertisements draw more attention as compared to those of non-celebrity ones, helps the
company in repositioning its product/brand and finally empowers the company when it’s
new in the market or plans to go global. (Erdogan 1999).

Celebrities and Consumers Behavior

Nowadays, the use of new marketing concepts in advertisement is increasing widely, and
the use of effective propaganda tools to support and influence the perception of the brand
mother is increasingly expanding. Studies show 80% of the decisions leading to purchase
happen through visual representations and buyers need an authority to confirm and
guarantee their purchase. One of the specific propaganda instruments is the utilization of
prominent figures and witnesses that have attracted the attention of people from the
different aspects. These celebrities are desirable for the audience from several
perspectives including accreditation, persuade the audience, creating a sense of
confidence and credibility. In other words, by ascribing their own image, credibility,
reputation, character, and generally brand to a product, celebrities as endorser and
guarantor increase the awareness of the audience, encourage them, influence their buying
decision and finally raise income level. Thus, use of celebrities and famous personalities
in order to create value for goods provides organizations and firms with various
consequences because of the celebrities’ enjoyment of cultural and professional
backgrounds, age and social acceptability. Famous personalities take privilege of quality
and values that are cherished and respected by others. In other words, having different
characteristics to social norms such as unique lifestyle, and individual charm, celebrities
have special skills to attract the attention of others in the category to which they are
entering (Moukharji, 2009, Abdolvand and HosseinzadehEmam, 2013).

4
The issue of celebrity endorsement in advertising has received significant attention in the
literature. Many studies show strong support for the use of celebrity endorsements,
arguing that celebrities help make brands recognizable and create a positive brand
attitude (Petty, Cacioppo, & Schumann, 1983), enhance the likelihood of purchase
(Friedman & Friedman, 1979), foster brand loyalty, and positively impact wordof-mouth
(Bush, Martin, & Bush, 2004). Hoffner and Cantor (1991) also point out that people
emulate the appearance and behavior of the media celebrities that they admire.
Advertisers often employ celebrities to endorse a product to enhance audience
attentiveness, add glamour and desirability to the product, and make the advertisement
more memorable and credible (Spielman, 1981).Scholars have shown that using famous
celebrities to endorse products is generally more effective than using non-celebrities to
generate positive responses from consumers (Atkin& Block, 1983; Freiden, 1984;
Kamins, 1989).

Celebrity endorsement has been in application from a long time (Kaikati 1987), in fact
not too late when advertisement techniques were taking on new forms because advertisers
realized soon that by using publicly renowned personalities in advertisements they will be
able to align brands personalities with that of the celebrity’s. Moreover, these credible
endorsers can produce more favorable attitudes toward the advertisement (Goldsmith,
Lafferty, & Newell, 2000; Lafferty, Goldsmith, & Newell, 2002) and intent to purchase
the product (Lafferty &Goldsmith, 1999; Ohanian, 1991; Wei and Lu,2013). According
to McCracken (1989), a celebrity endorser is defined as ‘‘any individual who enjoys
public recognition and who uses this recognition on behalf of a consumer good by
appearing with it in an advertisement. (Wei and Lu,2013) According to (Schlecht 2003)
term ‘celebrity’ can be defined as, ”Celebrities are people who enjoy public recognition
by a large share of certain Group of people.” (Ahmed et al. 2012) Marketing tends to take
on new and unique ways of advertising as advertisers are exploring different ways to
make the advertisements effective and influential as well. Celebrity endorsement is one
of these. The advertisers know it very well that the positive image that the celebrities cast
on the audience is can make the message in the advertisement more persuasive (CHOI
and Rifon 2007). Advertisers go for celebrity endorsement because of its greater benefits
and immense possible influence. There are certain potential advantages of celebrity
endorsement, celebrities endorsed advertisements draw more attention as compared to
those of non-celebrity ones, helps the company in repositioning its product/brand and
finally empowers the company when it’s new in the market or plans to go global.
(Erdogan 1999). Celebrities and Consumers Behavior Nowadays, the use of new
marketing concepts in advertisement is increasing widely, and the use of effective
propaganda tools to support and influence the perception of the brand mother is
increasingly expanding. Studies show 80% of the decisions leading to purchase happen
through visual representations and buyers need an authority to confirm and guarantee
their purchase. One of the specific propaganda instruments is the utilization of prominent

5
figures and witnesses that have attracted the attention of people from the different
aspects. These celebrities are desirable for the audience from several perspectives
including accreditation, persuade the audience, creating a sense of confidence and
credibility. In other words, by ascribing their own image, credibility, reputation,
character, and generally brand to a product, celebrities as endorser and guarantor increase
the awareness of the audience, encourage them, influence their buying decision and
finally raise income level. Thus, use of celebrities and famous personalities in order to
create value for goods provides organizations and firms with various consequences
because of the celebrities’ enjoyment of cultural and professional backgrounds, age and
social acceptability. Famous personalities take privilege of quality and values that are
cherished and respected by others. In other words, having different characteristics to
social norms such as unique lifestyle, and individual charm, celebrities have special skills
to attract the attention of others in the category to which they are entering (Moukharji,
2009, Abdolvand and HosseinzadehEmam, 2013). The issue of celebrity endorsement in
advertising has received significant attention in the literature. Many studies show strong
support for the use of celebrity endorsements, arguing that celebrities help make brands
recognizable and create a positive brand attitude (Petty, Cacioppo, & Schumann, 1983),
enhance the likelihood of purchase (Friedman & Friedman, 1979), foster brand loyalty,
and positively impact wordof-mouth (Bush, Martin, & Bush, 2004). Hoffner and Cantor
(1991) also point out that people emulate the appearance and behavior of the media
celebrities that they admire. Advertisers often employ celebrities to endorse a product to
enhance audience attentiveness, add glamour and desirability to the product, and make
the advertisement more memorable and credible (Spielman, 1981).Scholars have shown
that using famous celebrities to endorse products is generally more effective than using
non-celebrities to generate positive responses from consumers (Atkin& Block, 1983;
Freiden, 1984; Kamins, 1989). Celebrity endorsement has been in application from a long
time (Kaikati 1987), in fact not too late when advertisement techniques were taking on
new forms because advertisers realized soon that by using publicly renowned
personalities in advertisements they will be able to align brands personalities with that of
the celebrity’s. Moreover, these credible endorsers can produce more favorable attitudes
toward the advertisement (Goldsmith, Lafferty, & Newell, 2000; Lafferty, Goldsmith, &
Newell, 2002) and intent to purchase the product (Lafferty &Goldsmith, 1999; Ohanian,
1991; Wei and Lu,2013).

Most studies on celebrity endorsers have explored how the credibility of the source
affects the success of the message. A highly credible source is more persuasive than a
less credible source ininfluencing audience attitudes and behavioral intentions (Sternthal,
Phillips, &Dholakia, 1978).

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Ohanian (1990) has synthesizedthe previous literature on this subject and proposed three
distinctdimensions of celebrity endorser credibility: expertise, trustworthiness, and
attractiveness. (Wei and Lu,2013). Ohanian, R. (1991), investigated the relationship of
attractiveness, trustworthiness, and expertise with the intention of purchase and found
that only the perceived expertise of a celebrity as a significant factor is able to generate
more intentions of buying any brand. The author suggests that a celebrity spokesperson
should be very effective. According to him, a celebrity should be knowledgeable,
experienced and qualified to talk about the product. Researcher states, “no matter whether
an endorser is an expert or not; all that matters is how the target audience perceives the
endorser”. Researcher indicated that when a perceived expert delivers the message adds
the credibility to the message and influences the purchase behavior of the customer.
Researcher also described about trustworthiness, which is a component of credibility, can
be achieved by using someone closely associated celebrity with the product. (Arora and
Sahu,2014)

Attractiveness refers to how physically attractive, elegant, or likable the source is to the
audience. Therefore, endorsers who are perceived to be knowledgeable, reliable, and
attractive are considered credible and, in turn, induce consumers’ positive attitudinal and
behavioral responses to the brand and the product (Ohanian, 1991; Wei and Lu,2013).

Advertisers try to hire such celebrities for endorsement who are not only attractive (Baker
and Churchill Jr 1977) but credible as well (Sternthal, Dholakia et al. 1978). Together
these aspects cast a comprehensive impact upon the customers, as most of the customers
prefer those celebrities who are credible and trustworthy, some like those who are
attractive and possescharming physical features, and some look for and consider both of
these dimensions. (Ahmed et al. 2012)

Gresham and Shimp (1985) said that the primary issue for advertising theory and
research is one of chosen structured processes by which the consumers‟ attitudes and
behavior intentions are affected by approach toward the ads making.(Arora and
Sahu,2014)

On the concept and application of celebrity endorsement, Agarwal and Kamakura (1995)
cite industry sources who guess that approximately 20% of all TV commercials feature
famous people. Assured sets of products feature celebrity endorsements more frequently.
They studied every endorsement contracts more than the period 1980-1992. Different
hypotheses have been place including (i) celebrity endorsement have bring to mind about
product, (ii) celebrities have credibility on skill that makes the product more attractive or
improve perceptions of quality (iii) the celebrity endorsers image is transferred to the

7
product. Experiments proposed that in few situations, celebrity endorsement could
improve recall and consume evaluation of the products (Clark &Horstman, 2003).

According to Ataman and Ulengin (2003), the relationship between the consumer and the
brand will only the strengthened when the consumer‟s own physical and psychological
needs and the brand‟s functional attributes and symbolic values as perceived by the
consumer. (Arora and Sahu,2014)

Arora and Sahu have investigated three specific objectives:

I- To find out the effect of celebrity endorsement on the buying trends or purchasing
behaviors of the consumers.
II- II- Also to finds out what affects more, buying behavior, buying intention and
buying habit by celebrity endorsement.
III- III- To find out what are the factors which affecting customers.

As there are four roles of customers (initiator, influencer, buyer and user). Here there is a
need to find that which of the roles are more affected by celebrity endorsement.. (Arora
and Sahu,2014)

Ahmad, et al (2012) in a study entitled “The impact of celebrity endorsement on

customer buying behavior: a perspective from Pakistan” which was performed at the
University of Pakistan, investigated the impact of celebrity endorsement on customer
purchase intention by taking five models into account including Source Attractiveness
Model, Source Credibility Model (celebrity endorsement), Product Match-Up
Hypothesis, Meaning Transfer Model, Elaboration Likelihood Model, and came to the
conclusion that: Advertisements are always designed to attract greater attention of the
audience. For this marketers come up with different techniques. Celebrity Endorsement is
one of these. And as reported by previous studies, this study also affirms the importance
of celebrity endorsement in advertisement campaigns that it positively influences the
buying intention of the customers. Most of the times customers are attracted by the
attractiveness of the celebrities, and influenced by the credibility of the endorsers.
Additionally, if the personality of the product is congruent with that of the product,
customers infer and assume such congruency more positively. (Ahmed et al. 2012)

Negative impacts of celebrities on consumer behavior

The current body of research shows the direct and positive effect of celebrities on the
mind and the shopping intention of customers, and it has been documented that
consumers consider several factors in buying a product but the most important factor is
quality. According to the author, as popular celebrities are supported by people, they can
have positive effects on confidence and product sales.

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Customer perspective to the brand can be easily changed due to the presence of celebrity.
A popular figure can add a new dimension to a product. A low quality product may
attract the customer for the first time, but the retention of the product under the influence
of the presence of celebrity is not possible (Arora and Sahu, 2014).

Celebrities, however, are expensive because of their celebrity status and risky because of
their potential for gaining negative publicity. Recent research has looked at negative
events surrounding celebrity endorsers and the consequences of those events (Louie et al,
2001, Louie and Obermiller 2002, Mani et al, 2006, Till and Shimp 1998).

It’s noteworthy that not all the celebrities prove to be successful endorsers, thus making
the selection process more difficult (Giffin 1967). That is why advertisers go for a careful
selection of celebrities because if any micro aspect may go wrong in celebrity
endorsement selection process, whole of the celebrity endorsed advertisement campaign
may collapse. This will ultimately show brand the way back to pavilion (Kaikati 1987,
Till and Shimp 1998).

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RESEARCH METHODOLOGY
In order to accomplish the objectives of the study, it is essential to articulate the manner
in which it is to be conducted, i.e., the research process is to be carried-out in a certain
frame work. The Research Methodology, which follows, is the backbone of the study.

Sources of Data:

For the study purpose both primary and secondary data are used. The primary data
collected from customers who are consuming soft drink through structured
Questionnaires the secondary data collected from the various website and research
projects.

Sampling Size:
It is the total number of respondents targeted for collecting the data for the research.
Sample size of 50 persons will be taken for this research.

Research Instrument:
Structured Questionnaires

Sample unit:
Customers who are consuming soft drinks.

Sample size:
50 sample for research work.

Sampling technique:
The sample is selected by using non probability convenience sampling method.

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 LIMITATIONS OF THE STUDY

There are few limitations attached with this study:-

 It seems that almost any amount of time is never enough to complete the report to

one’s satisfaction. Though the time was given, still I feel that the study could have

being carried out better if few more times were allotted.

 The sample size of the survey was restricted to 50 samples only.

 The biased responses of the respondents are also the limitation of this project

report.

 As the survey was conducted in Delhi only, therefore, these findings are limited to

Delhi region only.

 Respondents were not so forthcoming while answering the questions, as well as,

inability of providing information on certain questions.

 Lastly, despite being extremely careful while interacting with respondents,

communication errors are unavoidable.

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 INDUSTRY PROFILE

Introduction to the Soft drink Industry :

The industry began in mid 1900’s with leading companies like Pepsi Co. and Coca
Cola controlling the beverage business sector with sweetened soft drinks and
carbonated soda water. American audiences attached excitement and convenience to
these popular drinks, and a variety of soft drink brands began to originate such as Dr.
Pepper, Sprite, etc. The beverage industry has undergone rapid expansion over the last
decade. The only obstacle for these beverage companies was the high number of
calories and sugar levels their drinks contained; a drawback for health-conscious
consumers.

A soft drink (also called pop, soda, coke, soda pop, fizzy drink, or carbonated
beverage) is a non-alcoholic beverage that typically contains carbonated water, a
sweetening agent, and a flavoring agent. The sweetening agent may be sugar, high-
fructose corn syrup, or a sugar substitute (in the case of diet drinks). A soft drink may
also contain caffeine or juice. Products such as energy drinks, Kool-Aid, and pure
juice are not considered to be soft drinks. Other beverages not considered to be soft
drinks are hot chocolate, hot tea, coffee, milk, milkshakes, and schooled.

Small amounts of alcohol may be present in a soft drink, but the alcohol content must
be less than 0.5% of the total volume. If the drink is to be considered non-alcoholic.
Widely sold soft drink flavors are cola, lemon-lime, root beer, orange, grape, vanilla,
ginger ale, fruit punch, sparkling lemonade, squash, and water. Soft drinks may be
served chilled or at room temperature. They are rarely heated.

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The first marketed soft drinks (non-carbonated) in the Western world appeared in the
17th century. They were made from water and lemon juice sweetened with honey. In
1676, the Companies des Lemonades of Paris was granted a monopoly for the sale of
lemonade soft drinks. Vendors carried tanks of lemonade on their backs and dispensed
cups of the soft drink to thirsty Parisians.

Carbonated drinks made without any alcohol are called Soft Drinks. They are also
known as Coke/Soda/Pop etc. Hot chocolate, teas, coffee etc are usually excluded
from this classification. They are sold in a variety of sizes and manner. In the U.S.,
they are often sold in two-liter bottles, one liter plastic bottles, 24 and 20 US fluid
ounce bottles and in 12 US fluid ounce cans. Packaging is also available in many
different quantities

In Japan, 1.5 liter bottles, 500 mL and 350 mL bottles and cans are sold. At times, the
fizzy soft drinks are served as fountain drinks in which carbonation is added to a
concentrate immediately prior to serving. In Europe, plastic and glass bottles of sizes
2, 1.5, 1, 0.5, 0.35, 0.33 liters, aluminum cans of 0.33, 0.35, and 0.25 liters are
popular. Almost all soft drinks are made of refined sugars. Hence, they are often
criticized for causing obesity and other health related problems. A link to problems of
sleep, bones, and teeth has been proven by many studies.

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Market Structure:

The soft drink industry is a global marketing phenomenon. In essence, it is simply a

blended water drink with sweeteners, flavors and additives. The success in advertising
and marketing this product lies in convincing billions of consumers to drink these
instead of straight water or other less expensing alternatives. The brand recognition of
this industry is extraordinarily high. In 2002, world sales exceeded US $193 billion. In
contrast, fruit sales were just US $69 billion. Global consumption is currently in
excess of 327 billion liters.

Pepsi and Coca-Cola, between them, hold the dominant share of the world market.
Cadbury Schweppes follows a close third. Coca-Cola has approximately half of the
world market share and sells 4 out of the top 5 soft drink brands in the world. Coca
Cola sales for 2006 reached US $24.1 billion. It has profit margins of 20% and a
market capitalization of US $130 billion. Pepsi sales stood at US $36 billion but this
also includes snacks and other foods.

Some analysts view the definition of soft drinks incomplete and wish to add ready to
drinks also, to this industry. If they are added as well, these would add another 1.3
billion servings to 50 billion servings for these drinks.

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 Industry Definitions :

 Fizzy drinks: drinks injected with carbon dioxide at high pressure are called
Fizzy drinks.
 Floats: soft drink with scoops of ice-cream
 Soda: another term for soft drink
 Pop: another U.S. term for soft drinks
 Coke: a derivative and brand name of Coca-Cola, often used as a label for soft
drinks in general.

Soft Drink Production area

The market preference is highly regional based. While cola drinks have main markets
in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks
are popular in southern states. Sodas too are sold largely in southern states besides sale
through bars. Western markets have preference towards mango flavored drinks. Diet
coke presently constitutes just 0.7% of the total carbonated beverage market.

Growth promotional activities

The government has adopted liberalized policies for the soft drink trade to give the
industry a boast and promote the Indian brands internationally. Although the import
and manufacture of international brands like Pepsi and Coke is enhanced in India the
local brands are being stabilized by advertisements, good quality and low cost.

Indian Market

Soft Drinks in India industry profile provide top-line qualitative and quantitative
summary information including: market size (value, and forecast to 5). The profile
also contains descriptions of the leading players including key financial metrics and
analysis of competitive pressures within the market. Essential resource for top-line
data and analysis covering the India soft drinks market.Includes market size data,
textual and graphical analysis of market growth trends, leading companies and
macroeconomic information.

15
 World Market:

Global sales of soft drinks exceed 327 billion liters and are valued at more than US
$393 billion annually. North America, Europe and Japan are the most mature markets
for global soft drinks. Coca-Cola and PepsiCo Inc have significant control over the
global soft drinks market and both have similar business organizations and processes
worldwide. The industry includes other than the soft drink manufactures themselves,
the bottlers and various raw material suppliers. Suppliers of cans, plastic and glass
bottles are included in this category.

Globally, the soft drinks majors continue to face challenges. One key global trend is a
move away to healthier drinks, which may put some pressure on yearly growth in sales
of soft drinks. The push to diet beverages have been well covered by the major
producers – with sales of diet Coke and diet Pepsi still strong. A recent trend is the rise
in popularity of sports drinks. Bottled water has also experienced very strong growth.
Finally the quality of water used in the manufacture of soft drinks poses serious issues
for the industry. Major players are working on the issue as water scarcity becomes a
global issue.

Industry Players:

The Coca-Cola Company

Coca Cola is the number one brand globally and has been for over 50 years It is sold
in virtually every country of the world. The successful expansion that began in World
War II has continued unabated up to this date. Now, the company has more than 400
brands in its portfolio. Tab, produced in 1963 was one of the company’s landmark
marketing successes.

PepsiCo Inc.

Pepsi-Cola was created in 1898 in New Bern, North Carolina, by druggist Caleb D.
Brad ham. PepsiCo Inc. holds about one-third of the U.S. market and is the second
largest soft drink major in the world. It owns Frito-Lay snacks and other businesses.
Pepsi soft drinks include brands such as Pepsi, Diet Pepsi, Slice, Mountain Dew and
Mug Root Beer.

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Cadbury Schweppes

Cadbury Schweppes PLC is the number three global soft drink producer. The portfolio
includes Squirt, La Casera, TriNa, Spring Valley, and Wave. It has cornered more then
17% of the world market. Total sales exceed US $12.9 billion.

Trends and Recent Developments

Private labels are becoming more prominent. Private Labels are brands owned by
stores and retailed through them. These private label manufacturers are retailing their
brands very aggressively these days. Although, lowering of prices is an open option
for the soft drink majors, it reduces their profits. Private labelers offer heavier
discounts and sales are increasing.

In 2007, a new issue is the lack of recycling of plastic bottled water containers.
Although the trend to bottled water is high, environmentalists point out many of these
are simply filtered tap water and that the discarded bottles are causing environmental
damage. The fallout among consumers is unclear at mid-point 2007.

After nearly a year of deliberation, Cadbury has finally announced a date for the de-
merger of its US soft drinks arm, American Beverages. Although it appears to make
sense to separate this group from the company's confectionery operations, the
separation could leave Cadbury vulnerable to a takeover, which its turnaround plan
may be unable to prevent.

The de-merger, which was first announced as a possibility back in March 2007, will
now take place in May and will see the creation of Dr Pepper Snapple Group as a
separate entity with a listing on the New York Stock Exchange and its own
management team. The confectionery arm is to be renamed Cadbury plc and will be
listed in London.

17
Celebrity branding and its effect on the consumer

It is a known fact that the best endorsements achieve an eclectic balance between the
product (brand) and the celebrity. Giving a brand a 'face' is more than just a marketing
strategy to increase sales or gain market share, it is a decision that can change the future
of the brand forever.

Choice of the celebrity, hence, is of utmost importance and is usually done based on
many different parameters - appeal, looks, popularity or even just a fantasy figure to
endorse a brand.

In today's highly competitive markets, big brands are at logger-heads when it comes to
products, each having a similar product to that of a rival. Where does one brand gain that
quintessential advantage - advertising, service, promise of trust, or even the all important
price factors? Advertising seems to be the best platform where brands prefer to compete
on - right from hiring the best advertising agencies to getting the biggest celebrities. What
would be the formula to success then? Well, a good creative agency, a large enough
promotional budget and a huge star to endorse your brand would definitely
ensure in the minds of a brand management team a feeling of security, success and a
triumph over the competitors brand.

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.

The different models applied by brands to achieve the full potential of such
endorsements, highlight the need for a convergence between the theoretical and
pragmatic approaches of brand building and effective advertising. The importance of a
celebrity-brand match and the various roles played by them as brand-associates show the
momentum this strategy has gained in the last decade or so. We put forward certain ideas
like 'positioning by association', 'diminishing celebrity utility' and the Multiplier Effect
which show the triangular relationship between the brand, the consumer and the
Celebrity.

18
 Theatrical aspect of the study

What is celebrity endorsement?

The use of celebrities in order to increase the sales and/ or 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 TV stars as well as sportspersons began encroaching on a territory that was,
until then, the exclusive domain of models. There was a spurt of advertising, featuring
stars like Tabassum (Prestige pressure cookers), Jalal Agha (Pan Parag), KapilDev
(Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings). Of course, probably
the first ad to cash in on star power in a strategic, long-term, mission statement kind of
way was for Lux soap, a brand which has, perhaps as a result of this, been among the top
three 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, but they have
several disadvantages too. When it comes to celebrity endorsement, the first brand that
comes to the Indian mind is that of Lux, the Beauty Bar of the Stars. Since its inception,
Lux the brand has grown positioning itself thus. However, recently Lux has tried to
change its positioning from being a woman’s soap to being soap for men as well. Sticking
to its strategy of using celebrities to appeal to its target audience, this time around it has
used Shah Rukh Khan to endorse Lux. But this time the response has been confusing.

One of the first sports endorsements in India was when Farokh Engineer became the first
Indian Crickets to model for Brylcream The Indian cricket teams now earns roughly Rs.
100 crore through endorsements. There was a spurt of advertising, featuring stars like
tabassum (Prestige Pressure cookers). Jalal Agha (Pan Parag).KapilDev (Palmolive
Shaving cream) and Sunil Gavaskar (Dinesh Sutings)

19
RISE OF CELEBRITY CULTURE

The modern mass media has increased the exposure and power of celebrity. Often,
celebrity carries with it immense social capitals that is highly sought after by some
individuals. High paying jobs and other social perks unavailable to most people are
readily available to celebrities, even for wok not connected to the talents or
accomplishment that made them famous. For example A retired athletes might receive
high “speaking fees ‘ or compensation for public appearances, despite his talent having
been sports.Often, celebrities cannot escape the public eye & risk being followed by fans.
As well, child celebrities are notorious for having poor emotional health in adulthood,
and often turn to drug and alcohols abuse when their fame fades.

In India today, the use of celebrity advertising for companies has become a trend and a
perceive winning formula of corporate image building and product marketing.
Associating a brand with a top-notch celebrity can do more than perk up brand recall. It
can create linkages with the stars appeal, thereby adding refreshing and new dimensions
to the brand image. In a world filled with faces, how many do you remember?
Admittedly the ones that evoke some kind of feel in you, whether it’s humors,
acceptance, appreciation or recognition. These are the faces you’d turn to look at, the
ones that would stop you in your tracks. And that’s when you have more than just a face.
You have personality. “Personality that’s reflective of your brand and promises to take it
that extra mile”.

As existing media get increasingly cluttered, the need to stand out has become
paramount- and celebrities have proved to be the ideal way to ensure brand prominence.
Synergizing personality with product and message can create an instant breakthrough.
Result? Brand buzz. People begin to notice, opportunities come about. People want to be
part of the brand.
“Touch it. Feel it. Experience it.”

20
IS IT SMART TO USE CELEBRITY ENDORSEMENT FOR
BRANDING?

Stars, who are known to shape destinies, cast an enormous influence. No, we’re not
talking about astrology here. We’re referring to the powerful effect of celebrities on
destinies of brands. One approving nod from a famous face can translate into millions in
brand sales. Perhaps that’s why the world over, companies have been using stars to
endorse everything, from food to food chains,from soft and hard drinks to health drinks,
from clothes and accessories to cars (and the tyresonwhich they run).

Even political parties are awestruck by the charisma of stars. Such is 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 ENDORSEMENTS AS A 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 fifties. Vimal, Thums
Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early
days of mass advertising. And who can forget Kapil ‘Palmolive’ Dev?

Marketers believe that star endorsements have several benefits, key among them being
building credibility, fostering trust and drawing attention or any or all of which can
translate into higher brand sales.

So how does one decide whether to put a celebrity in an ad? Ideally, this should be
dictated by the communication idea. MG Parmeswaran, Executive Director of FCB Ulka
says, “As advertising professionals, we recommend celebrity endorsements when the case
is justified.

21
 ‘Celebrity Endorsement in Indian Soft Drink Companies’

Pepsi (Oh Yes Abhi!)

New Delhi, January 29, 2013: The newand young India is impatient and wants to do
things ‘right now’. This is the pulse of the nation, the new youth hilosophy that Pepsi
aims to bring alive through its mega campaign and new brand positioning, ‘Oh Yes
Abhi’. This marks the beginning of a new journey for Pepsi in India and will be followed
by a series of innovative and exciting initiatives over the course of the year.

The up-coming commercial scheduled to go on-air on February 1 creates a spectacular

viewing experience for consumers, portraying RanbirKapoor, Mahendra Singh
Dhoni and Priyanka Chopra in their moments of impatience. Priyanka is impatient to
go and perform on stage; Ranbir is impatient to go and eat PaniPuri coupled with his
Pepsi; Dhoni, the calm and composed sportsman is impatient to celebrate after winning
the World Cup.

Commenting on the new Pepsi positioning DeepikaWarrier, Vice President,

Marketing-Beverages, PepsiCo India said,“Oh Yes Abhi is all about the impatient
youth, who believe in making the most of the moment and therefore wants action ‘right
now!’. Oh Yes Abhi! translates into - live for the present as tomorrow is too late,‘now’ is
the time to bring about a change; ‘now’ is the time to take action; if you wish to make it
big, work on it ‘now’ and many such sentiments synonymous to the young generation
today. Our latest campaign illustrates all this and much more in a quintessential irreverent
Pepsi package”.

HomiBattiwalla, Senior Director – Marketing (Colas, Juices and Hydration),

PepsiCo India further added,,“By anticipating the pulse of the nation ahead of the curve,
Pepsi yet again establishes itself as a trend-setting brand. Our new brand positioning, Oh
Yes Abhi! reiterates the hunger for impatience seen in the youth today and brings it alive
in a revolutionary format. This campaign is a great combination of impatience of the cola
and impatience of youth presented in a grand manner.”

22
The TVC brings alive Pepsi’s youthful irreverence and demonstrates the Oh Yes
Abhi! moments of these Pepsi brand ambassadors and youth icons. Priyanka Chopra, in
her latest pop star look is shown waiting impatiently, all anxious to go on the stage for
her first live performance; while RanbirKapoor, stuck in a traffic jam on Mumbai’s
busy streets, craving for street foodand a chilled glass of Pepsi, instantly runs towards a
PaniPuri stall to gorge on it one after the other.

On the other hand, MS Dhoni, known to be expressionless about winning or losing in

true sportsman style, is shown breaking into a celebratory dance in the middle of the field
after the much awaited World Cup 2011 win.“This film not only captures the stars in
their impatient avatars, but also shows many moments from our everyday lives that
exemplify the belief of ‘now’. Shot at different locations, whether in the middle of a
cricket stadium or a crowded Mumbai street or in a small town, the ad-film proves to be a
true spectacle for consumers. Moreover, we’ve worked with Nirvana Films who’ve been
successful in showcasing the product in a completely new and larger than life
manner”, added, SurjoDutt, Executive Creative Director – JWT India.

Consumers can experience the Oh Yes Abhi fever through extensive above-the-line
communication. This will be supported by radio activation, on-ground amplification
andan outdoor campaign amongst other initiatives. The excitement continues on digital
platforms like Facebook and Twitter; and aims to build hype on various impatient
moments.

23
Coke (Open Happiness)

Open Happiness is a global marketing campaign for The Coca-Cola Company that was

rolled out worldwide in the first half of 2009, following the company's "Coke Side of
Life" advertising campaign. It was developed by the Wieden + Kennedy creative agency.

The campaign was launched on the reality television series American Idol on January 21,

2009, and rolled out to other national markets over the following weeks. In the United
States, commercials following the Open Happiness theme appeared during NBC's
broadcast of Super Bowl XLIII on February 1, 2009, and during ABC's broadcast of
the 81st Academy Awards on February 22, 2009. Marketing for The Coca-Cola Company
based on the Open Happiness theme also appeared in the United States as print ads in
newspapers, in television commercials, in outdoor advertising, and in in-store advertising.

Coca-Cola has launched a new TVC extending its ‘Crazy for happiness’ campaign. The
soft drink major has roped in Alia Bhatt, Varun Dhawan and Siddharth Malhotra for the
new commercial. The TVC created by McCann World Group India revolves around the
tagline 'Bewajah khushiyan lutao, Coca-Cola pilao' (Spread happiness without reason,
share a Coca-Cola).
The TVC opens in an Irani cafe where a hassled waiter is shown working frantically. He
is clearing dishes, taking orders from patrons and receiving instructions from the owner
of the café. Seated at a table are Bollywood actors Alia Bhatt, Varun Dhawan and
Siddharth Malhotra. Dhawan asks for three bottles of Coke. Bhatt changes the order to
four bottles. She gives a casual shrug when asked why by Dhawan and Malhotra. When
the waiter sets the bottles on the table, Bhatt picks up the extra bottle and offers it back to
the waiter. Surprised at her unprecedented gesture, he looks at his boss for approval. The
boss nods in the affirmative and the waiter along with the three youngsters enjoy their
drink. A voice over signs off saying, 'Bewajah khushiyan lutao, Coca-Cola pilao'. 

On the new TVC, Anupama Ahluwalia, vice-president, marketing, Coca-Cola India and
South West Asia, said, “Brand Coca-Cola has been at the forefront in making a cultural
point of view that encourages optimism and positivity in our everyday lives. This
summer, the ‘Bewajah khushiyan lutao, Coca-Cola pilao’ campaign inspires everyone to
spread and share happiness without any reason, through little gestures like sharing an ice
cold bottle of Coca-Cola. We hope that the new Coca-Cola campaign serves as the
thought starter, the trigger which encourages people to undertake simple acts of kindness
towards others.”

24
Prasoon Joshi, CEO and chief creative officer, McCann World Group India, said, “Take
one of the world’s most loved brands and team it with the young and vibrant stars of
Bollywood, along with some peppy, foot tapping music. That’s how we made the latest
Coca-Cola campaign. The whole idea of the campaign was to take the 'Crazy for
happiness' theme to an individual level, with a call to action. The emotions of
togetherness and celebration, energised by a bottle of Coca-Cola, are very real and
identifiable, and we are sure that everyone will connect to this.”

The company has planned an integrated communication plan including OOH, digital,
point of sale merchandise and other on-ground initiatives across key markets.

Thumbs Up (Aj Kuch Tufani Karte hay )

Thums Up’s 2012 summer campaign employs a new tagline, ‘Aaj kuch toofani karte
hain’. The TVC also showcases a new star cast, headlined by South Indian actor (and the
brand’ ambassador in the South) Mahesh Babu.

The TVC, created by Leo Burnett, shows Babu and his friends cutting short a thirty
minute trip across the city to just three minutes by taking the route less travelled – gliding
down wires, jumping roofs and slipping down pipes, in the daredevil style typical of the
brand.

According to the brand, “This campaign marks the evolution of the Thums Up man from
being the ‘Angry Young Man’ to the ‘Cool Risk Taker’ to the follower of ‘Playful
Mastery’ and now the advocate of ‘Bold Masculine Leadership’.”

Commenting on the film, Sainath Saraban, executive creative director, Leo Burnett, said,
“The new ‘Aaj Kuch Toofani Kartey Hain’ campaign with Mahesh Babu, Sahil Shroff,
Dhaval Thakur and Angela Jonsson has been designed to give the consumers a
differentiated and thrilling experience.” Nomad Films is the production house and Nick
Livesey is the director. 

Mountain Due( Darke age Jit hay)

Following the appointment of Hrithik Roshan as brand ambassador, Mountain Dew has
rolled out a new campaign. The brand continues with its 'Darr se mat daro, darr ke aage
jeet hai' plank.

25
The ad created by Taproot India shows how Roshan putting his fears aside after drinking
Mountain Dew and jumping into the water from a high cliff. The ad goes on air on 22
March.

On the campaign, Ruchira Jaitly, category director - flavours, PepsiCo India, said, “We
are excited about the new summer campaign by Mountain Dew, with our brand
ambassador Hrithik Roshan. This campaign is true to the brand philosophy ‘Darr Ke
Aage Jeet Hai’ and brings alive how one can face the worst fears and vanquish them. It
was a challenge to shoot this ad, given the location and the need to look authentic, and we
had the perfect partner in Hrithik, who went all out to make the dive come alive. We look
forward to a strong surround campaign to bring alive this new creative.”
 
Agnello Dias, creative director, Taproot India, added, “Everybody feels fear. To be
courageous is defined by one’s fear rather than the fact that they feel no fear at all.
Hrithik’s personality in real life and on-screen is well rounded and multi-dimensional.
That’s a great thing about him because he can be vulnerable and fearful like a normal
person and transform into a heroic and fearless performer the next moment. He has the
ability to carry off both with equal ease.”

26
 Data Analysis

1). What is your occupation?

Occupation
20

40

Students
Business class
service class
Others

20

20

Interpretation:

From this pie-chart it is clear that majority of the respondents are students and rest of the
share is occupied by service and business class.

Age:
27
 Age
10

40
25 18-25
26-32
32-39
More than 40

25

Interpretation:

This pie-chart depicts that 40% respondents are young and are 18-25 yrs in age and while
26-32 are 25% 32-39 are 25 and 10% are more or 40 years n age.

Gender :

28
 Gender
10

Male
Female

90

Interpretation:

This pie-chart depicts that 90% of the respondents are male and 10% are females.

2). What is your occupation ?

29
 (a) student (b) business class (c) service class (d) others

Occupation
8
35

30 student
business class
service class
ohers

27

Interpretation:

Most of the customers are students that is 35% then service class consumes 30%. Business class
consumes 27% and other consumers are 8%.

3). Which category of products you like most?

30
 (a) Soft drink (b) juice (c) others

Which category of products you like most?

20

Soft drinks
Juice
others

20 60

Interpretation:

This pie-chart depicts that 60% of the people like soft drink and 20% people like juice
and rest 20% people like other drink such as tea, coffee, mojito.

4). If soft drink then which brand of soft drinks do you prefer mostly?

31
 a) Pepsi
b) Coca Cola
c) Local brands
d) Not Specify

If soft drink than which product you prefer mostly?

24
30

Pepsi
Coca Cola
Local brands
Not specify

30

36

Interpretation:

This pie-chart depicts that 30% of the people like Pepsi and 36% people like coca cola
and 30% people like local brand and rest 24% specifically does not consider any.

32
5). Do you collect any information or take advice before your purchase
decision?
a) Yes
b) No

Do you collect any information or take advice before

your purchase decision?

Yes
40 No

60

Interpretation :

This chart shows that 60% people take advice before purchase decision rest 40% does not
take any advice.

33
6). If yes than which factor affects you most?
a) Friends
b) Advertisement
c) Opinion Leader
d) Others

which factor affects you most

18
23

Friends
Advertisements
Opinion Leder
Others

35 24

Interpretation:

The chart depicts that 24% of the people consider advertisement while going for the
purchase, followed by advice from friends that is 23%,opinion leader is 35% and 24%
people Consider other factor.

34
7). Which factor related to product affects you most?

a) Price
b) Quality
c) Celebrity endorsement
d) Others

Which factor related to product affect you most?

21
7

price
Quality
Celebrity Endorsement
Others

47
25

Interpretation:

The chart depicts that 47% of the people consider celebrity endorser while going for the
purchase, followed by price-with 25% ,quality with 21% and 7% people Consider other
factor. As people usually are more interested towards well known brands and if these
brands are advertised by famous celebrity it creates a huge impact.

35
8). Do you like to see any celebrity endorsing your brand?

a) Yes
b) No

Do you like to see any celebrity endorsing your brand

40

Yes
No

60

Interpretation :

This chart 60% people like to see celebrity endorsing in their brandsaan 40% people says
celebrity does not matter . This clearly shows how much important these celebrities are.

36
9). What comes in your mind when you go for Soft drinks?

a) Celebrity endorsement
b) Brand
c) Quality
d) Test

what comes in your mind when you go for Soft drinks ?

18
33

Celebrity Endorsement
Brand
Qulity
Test
22

27

Interpretation:

This pie-chart depicts that 33% of the people consider celebrity endorser while going for
The purchase, 27% followed by brand name-with ., quality with 22% and 18% people
Consider test performed.

37
10). Do you think celebrity endorsement work as an effective tool of
persuasion for Soft drinks industries?
a) Strongly Agree
b) Agree
c) Disagree

celebrity endorsement work as an effective tool of

persuasion for Soft drinks?
27 26

Strongly agree
Agree
Disagree

47

Interpretation:

This pie chart depicts that mostly people agree that Celebrity endorsement is an effective
tool of persuasion. 26% of people strongly agree that celebrity endorsement is an
effective tool of persuasion and 47% people slightly agree that it work as tool of
persuasion and 27% of people disagree that it is one of the tool.

38
11). In case of Soft drinks which celebrity persona you like most?
a) Bollywood Stars
b) Sports Stars
c) Others

In case of Soft drinks celebrity persona you like most

31 32

Bollywood Stars
Sports Stars
Others

37

Interpretation:

This pie-chart depicts that 32% people like to see bollywood stars to endorse their Brands
and 37% of them sports star. While remaining 31% want others.

39
12). Is celebrity endorsement making you loyal toward soft drinks?
a) Yes
b) No

Is celebrity endorsement making you loyal toward soft

drinks?
30

Yes
No

70

Interpretation:

This pie-chart depict that 70% respondents agree that endorsement of Pepsi by their
favorite celebrity make them loyal toward Pepsi and 30% don’t agree with this.

Findings

40
After completing survey I found that:

 The research shows that the celebrity endorsement playing a key role on Indian
consumers.

 Most of respondent said that when they were going to purchase soft drinks first
celebrity of the particular brand comes in the mind of the consumer when they
see different brands of the soft drinks.

 Film stars and sports stars both are equally effective as a celebrity endorsement.

 Out of 50 respondent 35 respondent said that celebrity endorsement make them

loyal toward the soft drinks.

 Most of the respondent agree upon that the celebrity endorsement is the effective
persuasion.

Conclusion

41
In India celebrities’ position in the mind of people is very high. People looks as their Idol
and millions of people follow them. In all region of the country different celebrities
follow by their fans like a god. In cricket Sachin Tendulkar ,Ms Dhoni, Virat Kholi . In
bollywood male endorser and female endorser both effective in ads like Amitabh
Bachchan ,Shahrukh Khan , Salman Khan , Ketrina Kaif ,Bipash Basu ,Ashwrya Rai
Bachchan .These celebrities also using their name for endorsement very effectively.

 Celebrity endorsement in soft drinks playing a key role for the soft drinks
companies. Soft drink is product which purchase for enjoyment. It is not
necessary product for the consumer. So all soft drink companies are highly
concentrate on advertisement campaign especially for TV advertisement. For all
soft drink companies like coca cola, Pepsi use celebrity as a market strategy and
got positive result. Consumer is highly affected by celebrity when he/she going to
buy a soft drink. That show how celebrity endorsement is effective with respect to
soft drinks.

ANNEXURE
42
1. Name: _________________________________(optional )
Occupation:___________________________________
Email address : _________________________ ( optional )

Gender:
• Male 
• Female

Age:
• 18-25
• 26-32
• 32-39
• More than 40

2. What is your occupation?

• Student
• Business class
• Service class
• Other

3. Which category of products you like most?

• Soft drinks
• Juice
• Others
4. If soft drink then which brand of soft drinks do you prefer mostly?

• Pepsi

43
• Coca Cola
• Local Brands
• Not specify

5.Youcollect any information or take advice before your purchase decision?

• Yes
• No

6. If yes than which factor affects you most?

• Friends
• Advertisements
• Opinion leader
• Others

7. Which factor related to product affects you most?

• Price
• Quality
• Celebrity endorsement
• Others

8.Do you like to see any celebrity endorsing your brand?

• Yes
• No

9. What comes in your mind when you go for Soft drinks?

44
• Celebrity endorsement
• Brand
• Quality
• Test

10. Do you think celebrityendorsement work as an effective tool of persuasion for

Soft drinks industries?

• Strongly agree
• Agree
• Disagree

11. In case of Soft drinks which celebrity persona you like most?

• Bollywood Stars
• Sport Stars
• Others

12. Is celebrity endorsement making you loyal toward soft drinks?

• Yes
• No

45
 Recommendations

 The marketing managers must constantly study the marketing environment and
find new opportunities to increase the marketing activities.

 Efficient Promotional activities pertaining to consumers are to be

taken up.

 Company should improve the quality of packaging.

 Introduction of a new flavor is suggested to make the

product promotion more efficient.

 It is suggested that the company should increase the usage

ofInternet for further Promotional activities.

46
 Bibliography

REFERENCES:

 Philip A.Stroke(2009), "impact of celebrity endorsement on stock prices", Journal

of Consumer Research, Vol. 14 No.March .
 http://www.coolavenues.com/know/mktg/surabhi6.php
 http://www.thehindubusinessline.com/2008/04/08/stories/2008040851250500.htm
 http://timesofindia.indiatimes.com/articleshow/1507842.cms
 http://in.movies.yahoo.com/news-detail/15671/Celebrity-endorsements-ensure-
highersale.
 http://www.icmrindia.org/free%20resources/Articles/Celebrity
%20Endorsement1.htm
 http://catalogue.ausport.gov.au/fulltext/1998/cjsm/v2n1/dyson.htm
 http://www.campaignindia.in/Video/338791,coca-cola-urges-people-to-spread-
happiness-sans-reason-in-summer-campaign.aspx
 http://www.pepsiohyesabhi.com/?
utm_source=Google&utm_medium=Text&utm_term=keyword&utm_campaign=
PepsiIPL&gclid=CL-0_NO40rYCFVEO6wod7jsAuw

47