Download - Celebrity endorsement final group2

MARKETING PROJECT

CELEBRITY ENDORSEMEN SUBMITTED TO: SUBMITTED BY:

VENKETESHIYER

Mitesh raichura

Icfai business school ahmedabad

Acknowledgement

We would like to acknowledge and thank all the respective people who have helped us in

achieving the objective of this project. This project is not just our work! There are many, without

whose 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 us

over 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 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 buying behavior. Our study aimed at to understand that to what extent actually celebrity endorsement influence the brand and ultimately the buying behavior of consumers.

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.

Celebrity sources may enhance attitude change for a variety of reasons. They may attract more attention to the advertisement than would non-celebrities or in many cases, they may be viewed as more credible than non-celebrities. Third, consumers may identify with or desire to emulate the celebrity. Finally, consumer may associate known characteristics of the celebrity with attributes of the product that coincide with their own needs or desire.

The effectiveness of using a celebrity to endorse a firm's product can generally be improved by matching the image of the celebrity with the personality of the product and the actual or desired serf concept of the target market.

What therefore seems relevant by the study is that, yes, definitely to some extent 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 the 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.

INTRODUCTION

Celebrity branding is a type of branding, or advertising, in which a celebrity uses his or her status in society to promote a product, service or charity. Celebrity branding can take several

different forms, from a celebrity simply appearing in advertisements for a product, service or charity, 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 for clothing and perfume. Most singers, models and film stars now have at least one licensed product 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 clients

The scope of a celebrity on the brand:

Simply stating, a brand is a differentiated product and helps in identifying your product and making it stand out due to its name, design, style, symbol, color combination, or usually a mix of all these.

Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have to ferret 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.

Manufacturer’s name & reputation: A prominent brand name (Sony, Kellogg’s, Bajaj, and Tata) transfers positive associations.

Compatibility of the celebrity’s persona with the 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 brand campaign idea and an intrinsic link between the celebrity and the message are musts 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. On the other hand, 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:

Celebrity’s fit with the brand image. Celebrity—Target audience match Celebrity associated values. Costs of acquiring the celebrity. Celebrity—Product 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

Brands have been leveraging celebrity appeal for a long time. Across categories, whether in products or services, more and more brands are banking on the mass appeal of celebrities. As

soon as a new face ascends the popularity charts, advertisers queue up to have it splashed all over. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter of a few months. The accruement of celebrity endorsements can be justified by the following advantages that are bestowed on the overall brand:

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 World’s leading pop groups, the Spice Girls, who have not only appeared in advertisements for Pepsi, but also in product launching and PR events. Indeed, celebrity-company marriages are covered by most media from television to newspapers (e.g. The Spice Girls and Pepsi)

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 celebrity’s 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 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 pesticide issue shook up Coca-Cola and PepsiCo and resulted in much negative press, both soft drink majors put out high-profile damage control ad films featuring their best and most expensive celebrities. While Aamir Khan led the Coke fightback as an ingenious and fastidious Bengali who finally gets convinced of the product's `purity,' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references to the `safety' of the product indirectly.

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.

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

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

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

Multi brand endorsements by the same celebrity would lead to overexposure: The novelty of a celebrity endorsement gets diluted if he does too many advertisements. This may be termed as commoditisation of celebrities, who are willing to endorse anything for

big bucks. Example, MRF was among the early sponsors of Tendulkar with its logo emblazoned on his bat. But now Tendulkar endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has scaled down.

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

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

ANALYSIS

A celebrity is a widely-recognized or notable person who commands a high degree of public and media attention. The word stems from the Latin verb "celebrere" but they may not become a celebrity 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 person2. Film Stars3. T.V. Stars4. Personality who attracts bigger media coverage(for eg Rakhi Sawant, Saif-

kareena relationship)

Bigger Celebrity

Frequency Percent Valid PercentCumulative

PercentValid Sports Person 41 29.9 29.9 29.9

Film Stars 73 53.3 53.3 83.2

TV Stars 5 3.6 3.6 86.9

Personality who attracts bigger media coverage 18 13.1 13.1 100.0

Total 137 100.0 100.0

This is a frequency test which is run with shows how many correspondents take which category of celebrity as their biggest celebrity

http://en.wikipedia.org/wiki/Mass_media

http://en.wikipedia.org/wiki/Latin

The above figures clearly shows that the personalities who are indulge in some relationship and is in news due to some incidence or due to their personal like are the biggest celebrity for majority of our correspondents.

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 year’s 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 service

Question 2: Rank the following factors which influence you to buy the product again.High 1 2 3 4 5 Low

Quality Price

Celebrity Endorsement Fast Service

After Sales Service

Ranks

Mean RankQuality 1.38Celebrity Endorsement 3.98After Sale Service 3.65Price 2.62Fast Service 3.38

This is an independent test to determine the rank values of the entire sample. The value with the lowest mean rank is highly preferred.

The result shows that the quality is the most preferred factor while purchasing and celebrity endorsement happens to be the least preferred factor .celebrity endorsements do effect the buying behavior of the consumer but they prefer quality and price above everything.

Question 3: For how long do you associate a particular celebrity to a particular brand?

1. Temporary2. Permanent3. Can’t say

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5


PercentValid Temporary 70 51.1 51.1 51.1

Permanent 25 18.2 18.2 69.3

Can't Say 41 29.9 29.9 99.3

5 1 .7 .7 100.0

Total 137 100.0 100.0

The analysis says that the consumer attaches a particular celebrity with a brand temporarily for more than 50% of the time. Where as almost 30% do not have views on that. Thus this question also suggests us that association with a particular celebrity is only for a shorter period. What lasts long is the Brand!

Product endorsement:

A product endorsement is a form of testimonial from someone which indicates that they like or approve of a 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 product of company/event X.” It's hard to miss a product endorsement on product packaging and in advertisements; most companies keep their endorsements front and center so that they are always in the public eye.

Question 4: Products endorsed by celebrities are always of high quality and I always prefer them.

i. Strongly agree ii. Somewhat agree

iii. Neutraliv. Somewhat disagree v. Strongly disagree

Do Celebrity Endorse High Quality Product?


PercentValid Strongly Disagree 4 2.6 2.6 2.6

Disagree 10 6.4 6.4 9.0

Neutral 14 9.0 9.0 17.9

Agree 84 53.8 53.8 71.8

Strongly Agree 44 28.2 28.2 100.0

Total 156 100.0 100.0

0.64%

37.18%

62.18%

MissingNoYes

Celebrity endorsements are credible

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 much

1 2 3 4 5

Is Celebrity Endorsement is Beneficial


PercentValid To Great Extent 6 4.4 4.4 4.4

To Some Extent 24 17.5 17.5 21.9

Can't Say 48 35.0 35.0 56.9

To lesser Extent 37 27.0 27.0 83.9

Not much Affected 22 16.1 16.1 100.0

Total 137 100.0 100.0

The above study shows that the most of the respondents are bit confused about the benefits they gain or how much do celebrity endorsement really helps then while purchasing the products!

But we can also see that there is a major chunk of population which also says that celebrity endorsement helps them select the product for themselves to a very less extend that mean they make 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 while purchasing the products which is very less!

Question 6: Do you associate the celebrity directly with the quality and the performance of the product?

a. Yes, every timeb. Not reallyc. No, Never

Celebquality6


PercentValid Yes, Everytime 16 11.7 11.7 11.7

Not Really 97 70.8 70.8 82.5

No, Never 23 16.8 16.8 99.3

4 1 .7 .7 100.0

Total 137 100.0 100.0

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.

Question 7: celebrity endorsements help you to select a product:

1) It helps in building trust

Helps enhance brand image * Gender Crosstabulation

Count

Gender Total

Male FemaleHelps enhance brand image

Strongly Disagree 3 0 3

Disagree 15 4 19

Neutral 13 1 14

Agree 74 22 96

Strongly Agree 16 8 24Total 121 35 156

We can clearly see from above results that celebrity endorsement helps in enhancing barnd image as majority of our respondents replied. It is symmetrical in both the cases female as well 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 product

Create brand awareness * Gender Crosstabulation

Count

Gender Total

Male Female MaleCreate brand awareness


Disagree 9 2 11

Neutral 28 3 31

Agree 65 20 85


Majority of our respondent agree on the point that celebrity endorsement increases the brand awareness.Becoze they think celebrity endorsement helps the celebrity and the brand to increase their awareness 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 the females think that celebrity endorsement really helps in product awareness.

4) Helps to recall the product easily

Recall brand * Gender Crosstabulation

Count

Gender Total

Male Female MaleRecall brand


Disagree 12 3 15

Neutral 32 9 41

Agree 60 15 75


Majority of people agree that they are able to recall the product easily when that product or brand is associated with some celebrity. This was the same scenario with both the genders male and female.

Question 8: kind of ads people prefer:

1) New innovative ads

Innovative Ads


PercentValid Very High 98 71.5 71.5 71.5

High 29 21.2 21.2 92.7

Neutral 6 4.4 4.4 97.1

Low 3 2.2 2.2 99.3

Very Low 1 .7 .7 100.0

Total 137 100.0 100.0

Our study clearly shows that people like more of innovative ad as they always look for some thing new and that highly attract them.Even the kind of add the brand shows also becomes the hot topic for discussion amongst the peer group.So company should take their ads very seriously and this also shows that they must keep changing them and bring new innovative ideas.

2) Ads based on product feature

Product Feature Ads



High 59 43.1 43.1 75.9

Neutral 28 20.4 20.4 96.4

Low 5 3.6 3.6 100.0

Total 137 100.0 100.0

People like to see the product features but not that much as compare to those of innovative ideas.But product features are the main aspect because in absence of those the ad becomes senseless and the total loss of money for the firm.

3) Ads promoted through your favorite celebrity:Ads Promoted by Favorite Celebrity



High 34 24.8 25.0 51.5

Neutral 36 26.3 26.5 77.9

Low 24 17.5 17.6 95.6

Very Low 6 4.4 4.4 100.0

Total 136 99.3 100.0Missing System 1 .7Total 137 100.0

This shows the mixed response so nothing as such can be concluded here as here people highly prefer the ads with their favorite celebrity and those who prefer and those who neither prefer too much nor just dislike is almost same. But no negative response came which mean that more or less everyone likes such advertisements.

4) Featuring Common people:

Ads Featuring Common People



High 39 28.5 28.5 41.6

Neutral 50 36.5 36.5 78.1

Low 24 17.5 17.5 95.6

Very Low 6 4.4 4.4 100.0

Total 137 100.0 100.0

People don’t have any kind of disliking towards the ads showing common people but don’t prefer them 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



High 19 13.9 13.9 21.2

Neutral 39 28.5 28.5 49.6

Low 41 29.9 29.9 79.6

Very Low 28 20.4 20.4 100.0

Total 137 100.0 100.0

This 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 this no. was better then others.

6) Through animated characters

Ads with Animated Characters



High 37 27.0 27.0 36.5

Neutral 38 27.7 27.7 64.2

Low 22 16.1 16.1 80.3

Very Low 27 19.7 19.7 100.0

Total 137 100.0 100.0

People like animated characters in the ad films but this was found that this was the least popular amongst the viewers as compare to other factors

Question 9: If a big celebrity is endorsing a product, can you trust on the product without looking for further information about it?

Yes No

Can’t Say

Trstcelebendrsmnt9


PercentValid Yes 18 13.1 13.1 13.1

No 100 73.0 73.0 86.1

Can't Say 17 12.4 12.4 98.5

4 1 .7 .7 99.3

9 1 .7 .7 100.0

Total 137 100.0 100.0

Here the data clearly show that even if the brand is being endorsed by a celebrity it don’t increase the trust ability factor about the product. It just increase the awareness but don’t affect much on its trust ability.

Question 10: Do you think the celebrities use the product that they endorse?AlwaysNeverSometimesCan’t Say

Celebrity Using the product they Endorse


PercentValid Always 9 6.6 6.6 6.6

Never 46 33.6 33.6 40.1

Sometimes 43 31.4 31.4 71.5

Can't Say 39 28.5 28.5 100.0

Total 137 100.0 100.0

Most of the people think that the celebrity never uses the product that they endorse. Though there is large chunk of people who don’t know or think sometimes they use them.

Question 11:

1) If my favorite celebrity starts endorsing a competitive brand which I do not use; I will shift my loyalties.

Shifting of loyalties


PercentValid Strongly Agree 7 5.1 5.1 5.1

Somewhat Agree 21 15.3 15.4 20.6

Neutral 23 16.8 16.9 37.5

Somewhat Disagree 66 48.2 48.5 86.0

Strongly Disagree 19 13.9 14.0 100.0


Majority of respondents are ready to switch their loyalty towards their current brand if their favorite celebrity starts endorsing a competitor’s brand

2) Celebrity endorsement creates more hype than its value

Creates More Hype than its Value


Percent

Valid Strongly Agree 42 30.7 30.9 30.9


Neutral 15 10.9 11.0 97.1



Most of the respondents were quite agree to the point that celebrity endorsement create more of the hype for the product which is not required and product may not be even worth

3) The price of the product does not matter to me if it’s endorsed by someone whom I like

Price doesnt Matter with favorite Celebrity


PercentValid Strongly Agree 10 7.3 7.4 7.4


Neutral 12 8.8 8.8 33.1


Strongly Disagree 35 25.5 25.7 100.0

Total 136 99.3 100.0Missing System 1 .7

Total 137 100.0

Most of the people were somewhat disagree on the point that the prices of the product won’t matter to them if their favorite celebrity is endorsing the product.

CONCLUSION

From our study, we came to the following conclusion.

Though celebrity endorsements do not directly influence the buying behavior of the consumers 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 really is the experience of the product.

Download - Celebrity endorsement final group2

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