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MARKETING PROJECT CELEBRITY ENDORSEMEN SUBMITTED TO: SUBMITTED BY: VENKETESHIYER Mitesh raichura Icfai business school ahmedabad

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  • 1. MARKETING PROJECTCELEBRITY ENDORSEMENSUBMITTED TO: SUBMITTED BY:VENKETESHIYERMitesh raichura Icfai business school ahmedabad

2. AcknowledgementWe would like to acknowledge and thank all the respective people who have helped us inachieving the objective of this project. This project is not just our work! There are many, withoutwhose guidance and support, we would not have been able to complete this Project.Our Guide, VENKETESH IYER, has been a pillar of strength and support , helping usover for the Project work.Last, but not the least we wish to thank our friends for giving us invaluable support,encouragement and love.Abstract:The field of consumer behavior is the study of individuals, groups or organizations and theprocesses they use to select, secure, use and dispose of product, services, experiences, or ideas tosatisfy needs and impacts that these processes have on the consumer and society. And 3. understanding the consumer behavior is the prime and toughest task in front of every marketer.There are a lot of factors, which influence consumer buying behavior. Our study aimed at tounderstand that to what extent actually celebrity endorsement influence the brand and ultimatelythe buying behavior of consumers.Marketers pay millions of dollars to celebrity endorsee hoping that the stars will bring theirmagic to brand they endorse and make them more appealing and successful. But all celebrityglitter is not gold.Celebrity sources may enhance attitude change for a variety of reasons. They may attract moreattention to the advertisement than would non-celebrities or in many cases, they may be viewedas more credible than non-celebrities. Third, consumers may identify with or desire to emulatethe celebrity. Finally, consumer may associate known characteristics of the celebrity withattributes of the product that coincide with their own needs or desire.The effectiveness of using a celebrity to endorse a firms product can generally be improved bymatching the image of the celebrity with the personality of the product and the actual or desiredserf concept of the target market.What therefore seems relevant by the study is that, yes, definitely to some extent celebrityendorsee influence consumer buying behavior and brand building but while using celebrityendorsee, marketer has to take care of all the aspect that whether the brought personalityand image of celebrity matches or not, whether celebrity endorsee has deep penetrationamong the masses or not, whether he is considered as credible source or not etc. INTRODUCTION 4. Celebrity branding is a type of branding, or advertising, in which a celebrity uses his or herstatus in society to promote a product, service or charity. Celebrity branding can take severaldifferent forms, from a celebrity simply appearing in advertisements for a product, service orcharity, to a celebrity attending PR events, creating his or her own line of products or services,and/or using his or her name as a brand. The most popular forms of celebrity brand lines are forclothing and perfume. Most singers, models and film stars now have at least one licensedproduct or service which bears their name.Celebrity endorsements are impelled by virtue of the following motives: Instant Brand Awareness and Recall. Celebrity values define, and refresh the brand image. Celebrities add new dimensions to the brand image. Instant credibility or aspiration PR coverage. Lack of ideas. Convincing clientsThe scope of a celebrity on the brand:Simply stating, a brand is a differentiated product and helps in identifying your product andmaking it stand out due to its name, design, style, symbol, color combination, or usually a mix ofall these.Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have toferret the implicit nuances that act as sources of strong brand images or values: Experience of use: This encapsulates familiarity and proven reliability. User associations: Brands acquire images from the type of people who are seen using them. Images of prestige or success are imbibed when brands are associated with glamorous personalities. Belief in efficiency: Ranking from consumer associations, newspaper editorials etc. Brand appearance: Design of brand offers clues to quality and affects preferences. 5. Manufacturers name & reputation: A prominent brand name (Sony, Kelloggs, Bajaj, and Tata) transfers positive associations.Compatibility of the celebritys persona with the overall brand imageA celebrity is used to impart credibility and aspiration values to a brand, but the celebrity needsto match the product. A good brand campaign idea and an intrinsic link between the celebrityand the message are musts for a successful campaign. Celebrities are no doubt good atgenerating attention, recall and positive attitudes towards advertising provided that they aresupporting a good idea and there is an explicit fit between them and the brand. On the otherhand, they are rendered useless when it comes to the actual efficiency of the core product,creating positive attitudes to brands, purchase intentions and actual sales.Certain parameters that postulate compatibility between the celebrity and brand image are: Celebritys fit with the brand image. CelebrityTarget audience match Celebrity associated values. Costs of acquiring the celebrity. CelebrityProduct match. Celebrity controversy risk. Celebrity popularity. Celebrity availability. Celebrity physical attractiveness. Celebrity credibility. Celebrity prior endorsements. Whether celebrity is a brand user. Celebrity profession.Advantages of a celebrity endorsing a Brand 6. Brands have been leveraging celebrity appeal for a long time. Across categories, whether inproducts or services, more and more brands are banking on the mass appeal of celebrities. Assoon as a new face ascends the popularity charts, advertisers queue up to have it splashed allover. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter ofa few months. The accruement of celebrity endorsements can be justified by the followingadvantages that are bestowed on the overall brand: 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 Shah Rukh-Santro campaign. At launch, Shah Rukh Khan endorsed Santro and this ensured that brand awareness was created in a market, which did not even know the brand. 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 : 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 Worlds leading pop groups, the Spice Girls, who have not only appeared in advertisements for Pepsi, but also in product launching and PR events. Indeed, celebrity-company marriages are covered by most media from television to newspapers (e.g. The Spice Girls and Pepsi) Higher degree of recall: People tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value. Golf champion Tiger Woods has endorsed American Express, Rolex, and Nike. Actress Catherine Zeta-Jones is used by T- Mobile and Elizabeth Arden. 007 Pierce Brosnan promotes Omega, BMW, and Noreico. Associative Benefit: A celebritys preference for a brand gives out a persuasive message - because the celebrity is benefiting from the brand, the consumer will also benefit. Mitigating a tarnished image: Cadbury India wanted to restore the consumers 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 pesticide issue shook up Coca-Cola and PepsiCo and resulted in much negative press, both soft drink majors put out high-profile damage control ad films featuring their best and most expensive celebrities. While Aamir Khan led the Coke fightback as an ingenious and fastidious Bengali who finally gets convinced of the products `purity, PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references to the `safety of the product indirectly. Psychographic Connect: Celebrities are loved and adored by their fans and advertisers use stars to capitalise on these feelings to sway the fans towards their brand. 7. 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 a good bet to generate interest among the masses. Rejuvenating a stagnant brand: With the objective of infusing fresh life into the stagnant chyawanprash category and staving off competition from various brands, Dabur India roped in Bachchan for an estimated Rs 8 crore. Celebrity endorsement can sometimes compensate for lack of innovative ideas.Disadvantages of a celebrity endorsing a brand:The celebrity approach has a few serious risks: The reputation of the celebrity may derogate after he/she has endorsed the product: Pepsi Colas suffered with three tarnished celebrities - Mike Tyson, Madonna, and Michael Jackson. Since the behaviour of the celebrities reflects on the brand, celebrity endorsers may at times become liabilities to the brands they endorse. Overshadowing the brand: This terminology pertains to the issue of a celebrity overshadowing the brand. If there is no congruency between the celebrity and the brand, then the audience will remember the celebrity and not the brand. Examples are the campaigns of Dawn FrenchCable Association and Leonard RossiterCinzano. Both of these campaigns were aborted due to celebrities getting in the way of effective communication. Another example could be the Castrol commercial featuring Rahul Dravid. Inconsistency in the professional popularity of the celebrity: The celebrity may lose his or her popularity due to some lapse in professional performances. For example, when Tendulkar went through a prolonged lean patch recently, the inevitable question that cropped up in corporate circles - is he actually worth it? The 2003 Cricket World Cup also threw up the Shane Warne incident, which caught Pepsi off guard. With the Australian cricketer testing positive for consuming banned substances and his subsequent withdrawal from the event, bang in the middle of the event, PepsiCo - the presenting sponsor of the World Cup 2003 - found itself on an uneasy wicket 8. Multi brand endorsements by the same celebrity would lead to overexposure: Thenovelty of a celebrity endorsement gets diluted if he does too many advertisements. Thismay be termed as commoditisation of celebrities, who are willing to endorse anything forbig bucks. Example, MRF was among the early sponsors of Tendulkar with its logoemblazoned on his bat. But now Tendulkar endorses a myriad brands and the novelty ofthe Tendulkar-MRF campaign has scaled down. Celebrities endorsing one brand and using another (competitor): Sainsburysencountered a problem with Catherina Zeta Jones, whom the company used for its recipeadvertisements, when she was caught shopping in Tesco. A similar case happened withBritney Spears who endorsed one cola brand and was repeatedly caught drinking anotherbrand of cola on tape. Mismatch between the celebrity and the image of the brand: Celebrities manifest acertain persona for the audience. It is of paramount importance that there is an egalitariancongruency between the persona of the celebrity and the image of the brand. Eachcelebrity portrays a broad range of meanings, involving a specific personality andlifestyle. Madonna, for example, is perceived as a tough, intense and modern womenassociated with the lower middle class. The personality of Pierce Brosnan is bestcharacterized as the perfect gentlemen, whereas Jennifer Aniston has the image of thegood girl from next door. 9. ANALYSISA celebrity is a widely-recognized or notable person who commands a high degree of publicand media attention. The word stems from the Latin verb "celebrere" but they may not become acelebrity unless public and mass media interest is piqued.As our first question was:Question 1: Who do you feel is a bigger Celebrity? 1. Sports person 2. Film Stars 3. T.V. Stars 4. Personality who attracts bigger media coverage(for eg Rakhi Sawant, Saif-kareena relationship) Bigger CelebrityCumulative Frequency PercentValid PercentPercentValid Sports Person 41 29.929.9 29.9Film Stars73 53.353.3 83.2TV Stars5 3.6 3.686.9Personality who attractsbigger media coverage18 13.113.1100.0Total 137100.0 100.0 10. This is a frequency test which is run with shows how many correspondents take whichcategory of celebrity as their biggest celebrity The above figures clearly shows that the personalities who are indulge in somerelationship and is in news due to some incidence or due to their personal like are thebiggest celebrity for majority of our correspondents. 11. Factors influencing to buy products: 1) Quality: In the vernacular, quality can mean a high degree of excellence (a quality product), a degree of excellence or the lack of it (work of average quality), or a property of something (the addictive quality of alcohol) 2) Celebrity endorsement: The crescendo of celebrities endorsing brands has been steadily increasing over the past years. Marketers overtly acknowledge the power of celebrities in influencing consumer- purchasing decisions. It is a ubiquitously accepted fact that celebrity endorsement can bestow special attributes upon a product that it may have lacked otherwise. 3) After sales services: Customer support following the purchase of a product or service. In some cases, after- sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. 4) Price: Price is the amount of money charged for a product or service or the value exchanged for the benefits of the product or service. 5) Fast services: In times like these, where every customer can make a difference in your bottom line, there are many reasons your customers deserve fast, quality serviceQuestion 2: Rank the following factors which influence you to buy the product again. High 1 23 45LowQuality PriceCelebrity Endorsement Fast ServiceAfter Sales Service 12. RanksMean RankQuality 1.38Celebrity Endorsement 3.98After Sale Service3.65Price 2.62Fast Service3.38Rank 1Rank 2 Rank 3 Rank 4Rank 5 This is an independent test to determine the rank values of the entire sample. The valuewith the lowest mean rank is highly preferred.The result shows that the quality is the most preferred factor while purchasing and celebrityendorsement happens to be the least preferred factor .celebrity endorsements do effect thebuying behavior of the consumer but they prefer quality and price above everything. 13. Question 3: For how long do you associate a particular celebrity to a particular brand?1. Temporary2. Permanent3. Cant sayCumulative Frequency PercentValid PercentPercentValid Temporary 70 51.151.1 51.1Permanent 25 18.218.2 69.3Cant Say 41 29.9 29.9 99.351 .7.7 100.0Total137100.0100.0The analysis says that the consumer attaches a particular celebrity with a brand temporarily formore than 50% of the time. Where as almost 30% do not have views on that. Thus this questionalso suggests us that association with a particular celebrity is only for a shorter period. Whatlasts long is the Brand!Product endorsement: 14. A product endorsement is a form of testimonial from someone which indicates that they like orapprove of a product. Commonly, product endorsements are solicited from people who aresocially prominent, allowing companies to advertise their products with statements like as usedby such-and-such an actress, or the official product of company/event X. Its hard to miss aproduct endorsement on product packaging and in advertisements; most companies keep theirendorsements front and center so that they are always in the public eye. 15. Question 4: Products endorsed by celebrities are always of high quality and I always preferthem. i. Strongly agreeii. Somewhat agree iii. Neutral iv.Somewhat disagreev.Strongly disagreeDo Celebrity Endorse High Quality Product?Cumulative Frequency PercentValid PercentPercent Valid Strongly Disagree 42.6 2.62.6 Disagree 106.4 6.49.0 Neutral149.0 9.017.9 Agree84 53.8 53.8 71.8 Strongly Agree 44 28.2 28.2100.0 Total 156100.0100.0 16. Celebrity endorsements are credible 0.64%YesNoMissing37.18% 62.18% 17. Celebrity helps shopping!! Companies use celebrities to advertise their product or service because of the familiarity aspect. The average person often recognizes most celebrities, and this recognition draws the customer to the commercial. Question 5: How much do you think that the celebrity endorsement helps in making your shopping beneficial?To great Extent__ ____ __ __ Not much12 345 Is Celebrity Endorsement is Beneficial Cumulative Frequency Percent Valid PercentPercentValid To Great Extent64.44.44.4To Some Extent24 17.5 17.5 21.9Cant Say4835.0 35.056.9To lesser Extent 3727.0 27.083.9Not much Affected2216.1 16.1 100.0Total 137100.0 100.0The above study shows that the most of the respondents are bit confused about the benefits theygain or how much do celebrity endorsement really helps then while purchasing the products! 18. But we can also see that there is a major chunk of population which also says that celebrityendorsement helps them select the product for themselves to a very less extend that mean theymake their purchase decision while influencing through lot other factors like price quality etc.Only 4% of the total respondents were actually influenced by celebrity endorsement whilepurchasing the products which is very less! 19. Question 6: Do you associate the celebrity directly with the quality and the performance of theproduct?a. Yes, every timeb. Not reallyc. No, Never Celebquality6 Cumulative FrequencyPercentValid PercentPercentValid Yes, Everytime1611.711.7 11.7Not Really9770.870.8 82.5No, Never23 16.8 16.8 99.341.7.7 100.0Total 137100.0100.0 From the above diagram we can easily make out that people cannot really relate the quality of their product with the celebrity endorsing it. But somewhere in the back of their mind if a celebrity endorsing that particular product it has to be good. 20. Question 7: celebrity endorsements help you to select a product: 1) It helps in building trustHelps enhance brand image * Gender CrosstabulationCountGender MaleFemaleHelps Strongly Disagree303enhance Disagree154 19brandNeutral 131 14imageAgree 74 22 96Strongly Agree168 24Total 12135 156 21. We can clearly see from above results that celebrity endorsement helps in enhancing barndimage as majority of our respondents replied. It is symmetrical in both the cases female aswell as.There is no change in the opinion of both the genders.2) Celebrity endorsement on advertisement motivate you to purchase3) Helps to tag an emotional appeal towards the productCreate brand awareness * Gender CrosstabulationCount GenderMaleFemale Male Create Strongly Disagree 10 1 brandDisagree9211 awarenessNeutral28331Agree6520 85Strongly Agree 1810 28 Total 121 35 156 22. Majority of our respondent agree on the point that celebrity endorsement increases the brandawareness.Becoze they think celebrity endorsement helps the celebrity and the brand to increase theirawareness amongst the public.But a few were neutral at this point as they thought this is true but not too much extend.And we can also see that females are very positive about the as compare to males. As most of thefemales think that celebrity endorsement really helps in product awareness. 23. 4) Helps to recall the product easilyRecall brand * Gender CrosstabulationCountGender MaleFemale MaleRecall Strongly Disagree 40 4brandDisagree 12315 Neutral32941 Agree6015 75 Strongly Agree 13821Total12135 156 24. Majority of people agree that they are able to recall the product easily when that product orbrand is associated with some celebrity. This was the same scenario with both the genders male and female. 25. Question 8: kind of ads people prefer: 1) New innovative ads Innovative AdsCumulativeFrequency PercentValid Percent PercentValid Very High98 71.571.571.5High 29 21.221.292.7Neutral6 4.44.497.1Low3 2.22.299.3Very Low 1.7 .7 100.0Total137 100.0100.0Our study clearly shows that people like more of innovative ad as they always look for something new and that highly attract them.Even the kind of add the brand shows also becomes the hot topic for discussion amongst the peergroup.So company should take their ads very seriously and this also shows that they must keepchanging them and bring new innovative ideas. 26. 2) Ads based on product feature Product Feature AdsCumulativeFrequency Percent Valid PercentPercentValid Very High45 32.8 32.8 32.8High 59 43.1 43.1 75.9Neutral28 20.420.4 96.4Low 53.63.6 100.0Total 137100.0 100.0People like to see the product features but not that much as compare to those ofinnovative ideas.But product features are the main aspect because in absence of those the ad becomessenseless and the total loss of money for the firm. 3) Ads promoted through your favorite celebrity: Ads Promoted by Favorite CelebrityCumulativeFrequency Percent Valid PercentPercent 27. Valid Very High 36 26.3 26.526.5High34 24.8 25.051.5Neutral 36 26.3 26.577.9Low 24 17.5 17.695.6Very Low64.4 4.4 100.0Total 13699.3100.0Missing System1 .7Total 137 100.0This shows the mixed response so nothing as such can be concluded here as here peoplehighly prefer the ads with their favorite celebrity and those who prefer and those whoneither prefer too much nor just dislike is almost same. But no negative response camewhich mean that more or less everyone likes such advertisements. 4) Featuring Common people:Ads Featuring Common People CumulativeFrequencyPercent Valid PercentPercent 28. ValidVery High1813.113.113.1 High 3928.528.541.6 Neutral5036.536.578.1 Low2417.517.595.6 Very Low6 4.4 4.4 100.0 Total 137 100.0 100.0People dont have any kind of disliking towards the ads showing common people but dont preferthem too much also. Most of them are neutral towards such ads.Some even like those ads but not too much. 5) Featuring Animals: Ads Featuring Animals Cumulative FrequencyPercentValid PercentPercent 29. Valid Very High107.3 7.3 7.3High 19 13.913.921.2Neutral39 28.528.549.6Low41 29.929.979.6Very Low 28 20.420.4 100.0Total 137100.0 100.0This was seen that people like watching their favorite animals in the ads like digs,monkeys and all. Though less than 50% i.e. 30% of people highly prefer those but thisno. was better then others. 6) Through animated charactersAds with Animated Characters CumulativeFrequency PercentValid PercentPercent 30. Valid Very High13 9.5 9.5 9.5High 3727.027.036.5Neutral3827.727.764.2Low2216.116.180.3Very Low 2719.719.7 100.0Total 137 100.0 100.0People like animated characters in the ad films but this was found that this was the least popularamongst the viewers as compare to other factors 31. Question 9: If a big celebrity is endorsing a product, can you trust on the product withoutlooking for further information about it?YesNoCant Say Trstcelebendrsmnt9 CumulativeFrequency PercentValid PercentPercentValid Yes18 13.113.1 13.1No100 73.073.0 86.1Cant Say 1712.4 12.4 98.541.7.799.391.7.7 100.0Total 137100.0100.0 32. Here the data clearly show that even if the brand is being endorsed by a celebrity it dontincrease the trust ability factor about the product. It just increase the awareness but dont affectmuch on its trust ability.Question 10: Do you think the celebrities use the product that they endorse? Always Never Sometimes Cant SayCelebrity Using the product they EndorseCumulative Frequency PercentValid PercentPercentValid Always 96.6 6.66.6Never 46 33.633.6 40.1Sometimes4331.4 31.4 71.5Cant Say3928.5 28.5100.0Total 137 100.0100.0 33. Most of the people think that the celebrity never uses the product that they endorse. Thoughthere is large chunk of people who dont know or think sometimes they use them. Question 11: 1) If my favorite celebrity starts endorsing a competitive brand which I do not use; Iwill shift my loyalties. Shifting of loyaltiesCumulativeFrequency Percent Valid PercentPercentValid Strongly Agree75.15.15.1Somewhat Agree 21 15.3 15.4 20.6Neutral2316.8 16.9 37.5Somewhat Disagree6648.2 48.5 86.0Strongly Disagree1913.9 14.0100.0Total 13699.3100.0Missing System1.7Total 137 100.0 34. Majority of respondents are ready to switch their loyalty towards their current brand iftheir favorite celebrity starts endorsing a competitors brand 2) Celebrity endorsement creates more hype than its valueCreates More Hype than its ValueCumulativeFrequency Percent Valid PercentPercentValidStrongly Agree42 30.7 30.9 30.9 Somewhat Agree75 54.7 55.1 86.0 Neutral1510.911.0 97.1 Somewhat Disagree 42.9 2.9 100.0 Total 13699.3 100.0MissingSystem1 .7Total137 100.0 35. Most of the respondents were quite agree to the point that celebrity endorsement createmore of the hype for the product which is not required and product may not be evenworth 3) The price of the product does not matter to me if its endorsed by someone whom IlikePrice doesnt Matter with favorite CelebrityCumulative FrequencyPercent Valid PercentPercentValid Strongly Agree10 7.37.47.4Somewhat Agree2316.8 16.9 24.3Neutral12 8.8 8.833.1Somewhat Disagree56 40.9 41.274.3Strongly Disagree35 25.5 25.7 100.0Total 136 99.3100.0Missing System 1 .7Total 137100.0 36. Most of the people were somewhat disagree on the point that the prices of the product wont matter to them if their favorite celebrity is endorsing the product.CONCLUSIONFrom our study, we came to the following conclusion. 37. Though celebrity endorsements do not directly influence the buying behavior of theconsumers but it does help in adding value to the brand image. Consumes take into account various factors like price, quality, after sales service etc.while making any purchase decisions. Celebrity endorsements do affect in recognizing the product, but what affects them reallyis the experience of the product.