Impact of Celebrity Endorsement Essay

Impact of Celebrity Endorsement Essay.

Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, billboards, websites, radio and television, etc. Every brand attempts to steal at least fraction of a person’s time to inform him/her of the amazing and different attributes of the product at hand. The challenge of the marketer is to find a hook that will hold the subject’s attention. In helping to achieve this, use of celebrity for endorsement of a brand is widely used marketing strategy.

In this modern age, people tend to ignore all commercials and advertisements while flipping through the magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall brand is of great significance. In this process, the companies hire celebrities from a particular field to feature in its advertisement campaigns. The promotional features and images of the product are matched with the celebrity image, which tends to persuade a consumer to fix-up his choice from a variety of brands.

Although this sounds pretty simple, but the design of such campaigns and the subsequent success in achieving the desired result calls for an in-depth understanding of the product, the brand objective, choice of a celebrity, associating the celebrity with the brand, and a framework for measuring the effectiveness. Stars, who are known to shape destinies, cast an enormous influence. 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. People love to live in dreams. They worship celebrities.

Celebrities may be sports stars like Sachin Tendulkar, Mahindra Singh Dhoni,Roger Federer. Ronaldo and tiger woods’ or Film Stars like tom cruise, bredd pitt, Salman Khan, John Abraham. They treat them as God. . 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. 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. Acknowledgment I express my sincere thanks to my project guide Prof. Kruti Patel for guiding me right from the inception till the completion of the project. I sincerely acknowledge them for extending their valuable guidance, support for literature, critical reviews of project and above all the moral support they had provided to me with all stages of this project. Table of Content Topic | Page No | Executive Summery| 7| Industry analysis | 8| Literature Review| 18| Theoretical aspect of the study | 22| Research Methodology | 31| Data analysis | 33| Findings | 46|.

Limitations| 47| Conclusion | 48| Bibliography | 49| EXECUTIVE SUMMARY 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. Industry Analysis Indian Advertisement Industry Indian economy is growing and the market is on an expansion mode.

Businesses are looking up to advertising as a tool to cash on business opportunities. Growth in business has led to a consequent growth in the advertising industry. Indian advertising industry has emerged as one of the major industries and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Advertising industry grew by 9 to 10 per cent in comparison to the double digit growth rate of 20 per cent in 2010. According to ad industry estimates, the growth this year has been similar to 2011.

The Rs 30,000-crore advertising industry has been dealing with tightened purse strings as companies across sectors dealt with issues ranging from rising input costs to demand slowdown on account of lower disposable income and inflation. The big boys of the advertising club — fast moving consumer goods (FMCG) companies — were careful with their money, especially in the first half of the year, complicating matters further. Sample this: Ad spends by FMCG companies have been hovering between 12-13 per cent of sales from 14 -15 per cent earlier. India stands at No.

5 worldwide in the advertisement industry. Television – Valued at Rs 329 billion (US$ 5. 76 billion) in 2011, the television (TV) industry is expected to expand at a compounded annual growth rate (CAGR) of 17 per cent through 2011-16 to touch Rs 735 billion (US$ 13 billion). Radio- The radio industry with around 36 FM radio operators, is estimated at Rs 1,200 crore (US$ 210 million). Print- An estimated growth of 10 per cent is anticipated till 2015. Digitization- Digital advertising is expected to grow at a CAGR of 30 per cent during 2011-16. 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. 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.

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. 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. Market Metrics: Soft drink market size for FY00 was around 270mn cases (6480mn bottles). The market witnessed 5- 6% growth in the early‘90s.

Presently the market growth has growth rate of 7- 8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000mn bottles. 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. U. S. Market The U. S. is closely linked with soft drinks with Coca Cola being an American in much of the world. About 500 soft drinks companies operate in the U. S. Annual sales of refreshments total approximately US $88 billion, of which three quarters are soft drink sales.

There are about 500 soft drink bottlers in the United States. Soft drink companies manufacture and sell beverage syrups which are essentially bases to bottling operators that then add sweeteners and/or carbonated water to produce the final product. Independent bottlers work under license with various soft drink manufacturers and are generally allotted specific territories to serve. Manufacturers not only provide the bottlers with syrups and bases, but also often provide other business services such as product quality control, marketing, advertising, and engineering as well as financial and personnel training.

In return, the bottlers furnish the required capital investment for land, buildings, machinery, equipment, trucks, bottles and cases. As noted previously, the soft drink industry distributes and sells its product in two primary forms: packaged and fountain service. In fountain service, the soft drink product is dispensed and served in cups in restaurant or other retail oriented location with a food service station. Coke, Pepsi and Cadbury Schweppes control over 91% of the U. S. market share. They employ about 63,000 people in the U. S.

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.

Highlights -The soft drinks market consists of retail sale of bottled water, carbonates, concentrates, functional drinks, juices, RTD tea and coffee, and smoothies. However, the total market volume for soft drinks market excludes the concentrates category. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2010 annual average exchange rates. -The Indian soft drinks market generated total revenues of $3.

8 billion in 2010, representing a compound annual growth rate (CAGR) of 11% for the period spanning 2006-2010. -Carbonates sales proved the most lucrative for the Indian soft drinks market in 2010, generating total revenues of $1. 9 billion, equivalent to 50. 5% of the market’s overall value. -The performance of the market is forecast to decelerate, with an anticipated CAGR of 9. 1% for the five-year period 2010-2015, which is expected to lead the market to a value of $5. 9 billion by the end of 2015. 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. Coco 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 40 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. 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. 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. Literature Review.

Title : CELEBRITY ENDORSEMENT : A MARKETING STRATEGY Author : Ms Radhika Madan Lecturer – Marketing IILM College, Gurgaon This paper shows that Celebrity endorsement strategy can be an effective competition weapon in mature markets in order to differentiate products from competitors’ since there is heavy advertising clutter. Celebrities have always been the easiest way to attract the customers because of their mass appeal. Though there are Title : EFFECTS OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING BEHAVIOR AND BRANDING OF A BRAND Author DR. GIRIDHAR K. V Assistant Professor, Department of Com. & Mgt.

Sahyadri Arts & Commerce College Kuvempu University, Shimoga – 577203. The study has focused on “the effect of celebrity endorsement on consumer buyingbehavior on brand” mainly on three prospective, marketer, celebrity and consumer. Celebrity endorsements will be more effective when used consistently over time to increase the strength of the link between the celebrity and the endorsed brand. Title : Impact of Celebrity Advertisement on Customers’ Brand Perception and Purchase Intention Author : Qurat-Ul-Ain Zafar Scholar, Faculty of Management Sciences, International Islamic University Islamabad, Pakistan.

Mahira Rafique Scholar, Faculty of Management Sciences, International Islamic University Islamabad, Pakistan Celebrity endorsement has reasonable impact on customers as per their attitude and purchase intention. Celebrity endorsement has come out as not only an influential factor but rather a causal factor in the results of this paper. Physical attractiveness, credibility and congruence of celebrity with reference to the endorsed advertisement all have impact on the customer’s perception about the advertised product. The tests have by and large bore favorable significant results in the light of variables used.

Tiltle: A Study on Consumer Buying Behaviour on Celebrity Endorsement and Brand Building of Automobile Industry in Tamil Nadu, India Author: Annadurai Pughazhendi Research Scholar , PSG Institute of Management (PSG College of Technology) Coimbatore, India D. Sudharani Ravindran Professor, PSG Institute of Management (PSG College of Technology) Coimbatore, India This paper investigate that the choice of celebrities to fulfill that role has become common practice for brands competing in today’s cluttered media environment. There are several reasons for such extensive use of celebrities.

Because of their high profile, celebrities may help advertisements stand out from the surrounding clutter, thus improving their communicative ability. A brief assessment of the current market situation indicates that celebrity endorsement advertising strategies can, under the right circumstances, indeed justify the high costs associated with this form of advertising. Title : Impact of Celebrity Endorsement on Consumers’ Buying Behavior Author : Pradeep Agrawal Research Scholar, Faculty of Management Studies, Banaras Hindu University, Varanasi. 221005 Dr.

S. K. Dubey Associate Professor, Faculty of Management Studies, Banaras Hindu University, Varanasi. 221005 This paper shows that Celebrity endorsement decisively gives more visibility to the product endorsed. What-so ever the Ground realities may be, but the masses still try to imbibe a style imitating the celebrities. The Brands, taking into consideration all the related factors, can make best use of either the ‘Bollywood stars’ or ‘Sports star’ to endorse their product. Yet not many studies are conducted to test if the celebrity advertisement appeal carries on towards both male and female, or only towards a particular gender.

Companies must understand that the fees for celebrity talent can be substantial, cost of national advertising, especially on television, is extremely high, and the type of spokesperson affects the levels of awareness and recall Studies with regards to celebrity endorsers, researchers have included the issue of demographics. 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), Kapil Dev (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). Kapil Dev (Palmolive Shaving cream) and Sunil Gavaskar (Dinesh Sutings) 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. ” 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 tyres onwhich 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. 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, portrayingRanbir Kapoor, 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 Deepika Warrier, 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! ’.

Impact of Celebrity Endorsement Essay

Effectiveness of Celebrity in Brand Endorsement Essay

Effectiveness of Celebrity in Brand Endorsement Essay.

I receive enormous delight in thanking MKT 619 Instructor for permitting me to carry on work later than accepting my proposal for this project. I would like also like to situation my heartiest thanks to every one staff member of Virtual University for their kind support, guidance and useful suggestions, during my two years MBA with this University. I would like to thanks the Mobilink Indigo Telenor Persona Pakistan to support me during project. I would like to put into words my warm thanks to my parents for their blessings, my collaborator and my friends for their help for doing well completion of this project.

Executive Summary This project is all about the primary research about the topic of Effectiveness of celebrity in brand endorsement. This project describes that relationship by making the comparison between the two leading telecommunication companies of Pakistan i. e. Mobilink and Telenor. The package which I selected for my research of these telecommunication companies are Post paid package.

For Mobilink I selected Mobilink-Indigo and for Telenor, I selected Telenor-Persona. Moreover these packages are running very effectively and gathered more customers in the country.

Both companies are very mature in the telecommunication market sector of Pakistan. The major difference is the customization of the package which is launched by both companies. Mobilink Indigo acquire large market share as compared to Telenor-Persona. Now as far as the Research topic is concerned, the marketing of the both packages is done well by the respective companies. In the advertisement of Mobilink Indigo, Mobilink hired Shan (a leading Pakistani film actor) and in advertisement of Telenor Persona, Telenor hired Sohail Ahmed (a leading actor of TV, film and stage) and Babar Ali (a good film actor).

Basically, the post-paid packages are designed for the corporate customers so both the companies portray a business atmosphere in their respective advertisements. A most important factor that the telecommunication companies will decide before launching the advertisement is the choice of the celebrity and the relationship of the personality with the atmosphere of the condition in which the advertisement will be performed.

In this research, I first of all describe various factors that affect the relationship of Effectiveness of celebrity with brand endorsement and after that I researched on those factors by filling the questionnaires from the respondents from Lahore, Gujranwala, Sialkot, Gujrat and nearby areas. After gathering the primary data from the respondents and secondary data from other resources like newspapers, catalogues etc a statistical analysis including descriptive statistics and Regression analysis is applied and give the results.

As we identify all, that there is a immense competition in their advertisement and this has previously taken the main part of income away. As per market experts nearer or later on there will be a great competition between the two companies as the values wars have go into extremely severe era plus it has become the query of support. Our secondary research includes the quality, branding, corporate social responsibility, atmosphere and the seasonal conditions. While primary research is focused on the Effectiveness of celebrity in brand endorsement in near future 1. 2 Background of the project:

Effectiveness of celebrity in brand endorsement is essentially related to my present job and this will lead to do my project. The corporations that are allocating for comparison of usefulness of celebrity in brand endorsement for my final project are Mobilink Pakistan and Telenor Pakistan. These are main cellular corporations authorize the Pakistani citizens with the nearly all relevant message approach and services. This study has appeared on the exploration of Effectiveness of celebrity in brand endorsement which has gained most important market share in Pakistan. 1. 3 Company’s introduction:

Mobilink Indigo: [pic] Mobilink, a subordinate of the Orascom Telecom property, is Pakistan’s show the way cellular and Blackberry tune-up provider. In the company of more than 31. 6 million subscribers, Mobilink uphold market management throughout cutting-edge, included expertise, the strongest trademark and the biggest collection of price added services in the business, a broadband delivery service separation providing subsequently creation internet technology as well as the nation’s largest tone of voice and data system with further than eight thousand cell position.

Accommodation Pakistan’s largest sharing and contact centre set of connections and an incomparable sixty five thousand kilometers fiber optic spine, Mobilink has previously spend more than US $3. 3 billion in the state to date and provide continuous nationwide connectivity, unmatched client services and worldwide wandering in over one fourth four countries. The company is also the executive cellular associate of the Pakistan Cricket panel. As an accountable corporate civilian, Mobilink also present a range of publicly inclusive products along with services enthusiastic to improve access to in order.

Through Mobilink groundwork, the companies support instruction, health and environmental program and encourage sustainable industry practice. Mobilink offers completely designed duty plans that cater to the announcement needs of a varied group of people, from persons to businessmen to business and international. To achieve this goal, we recommend equally postpaid (Indigo) as well as prepaid (JAZZ) way out to our clientele. Compared to our competitors, both the postpaid (Indigo) and prepaid (JAZZ) trademark are the largest trademark of their type in the Pakistan cellular manufacturing.

In addition to as long as superior voice message services that create the lives of millions with the purpose of much simple, we also suggest a congregation of value-added-services to our high-quality clientele. All together, Mobilink places far above the ground significance to its coverage, which is why we face you in 10,000 plus towns and city countrywide as well as over 140 nations on international roaming tune-up. In other words, we talk your words, all over. Telenor persona: [pic]

Telenor Pakistan is hundred percent hold by Telenor ASA along with ads on to its process in Asia in somebody’s company with Thailand, Malaysia and Bangladesh. Telenor Pakistan start on its procedure in March two thousand five as the on its own largest through European asset in Pakistan, location superiority for more overseas investments in the telecom segment The company has fractious many high point and full-fledged in a number of information, create Telenor Pakistan a leading telecom worker of the state.

Telenor is the greatest rising mobile system in the country, with coverage accomplishment deep into many of the furthest areas of Pakistan. In the most not easy terrains of the state, from the northern region to the wilderness in the south Telenor, spend heavily in communications growth With USD2 billion by now spend, with extended contract with their wholesaler for network growth and services. Telenor have a set of connections of twenty three company owned deal and service midpoint, more than two hundred franchisees as well as some one lack retail channel.

The Telenor cluster is a worldwide provider of far above the ground superiority telecom, data and media message services with mobile procedure in thirteen markets crosswise the Nordic area, Central along with Eastern Europe as well as in Asia. The Telenor Group is in the middle of the biggest mobile operators in the globe with over one forty-three million mobile contributions and a labor force of more or less fourth thousand. Telenor Pakistan is hundred percent be the owner of by Telenor ASA as well as adds on to its action in Asia. 1. 4List of competitors:

The main competitors for Mobilink-Indigo and Telenor- Persona are given below: • Ufone-Postpay • Zong-Postpaid • Warid-Zahi 1. 5 Objectives of the project: The Objectives of this project is to make available the Comparison of Effectiveness of celebrity in brand endorsement for the 2 main Telecom companies of Pakistan i. e. Mobilink indigo and Telenor persona. The project will center of attention the following objectives: • To determine customer’s perception about celebrity (Shan) for endorsement of Mobilink Indigo. • To determine customer’s perception about celebrity (Jamal Shah or other) for endorsement of Telenor Persona. To compare customer’s perception about aforementioned celebrities for endorsement of selected brands. 1. 6 Significance of the project: • During my project, I will also cover customer Information survey about their preference of celebrity with brand endorsement between Mobilink Indigo and Telenor Persona.

 While this study will provide comparison within two telecommunication companies with an overall picture that will help the marketing managers of these companies to made their ads better and interesting. • The study will help the two companies for the future market placement of their services. Cellular telecommunication companies are now highly competitive industries in Pakistan. Chapter 2: Advertising Strategy 2. 1Marketing Mix The project covers Mobilink indigo and Telenor persona an appropriate marketing mix 4Ps i. e. Product, Coast/Price, Place as well as Promotion. (Product There are various services recommend by both companies. A number of general services are the following: • Internet Services, Common Packet means of communication Services • Small communication Services

Caller Line recognition • Tone of voice post • Receiver Book investor Price: Price is the majority necessary feature of the marketing mix. It is the only that generate sales income for an exacting company while recounting their expenses. Both companies bring in a fine cost to its client and persuade the others for control on their set of connections and perform make inquiries consumer’s view on the subject of pricing as well as what they would like to reimburse. The Brand differs time to time and Mobilink and Telenor also suggest on incident base service in the vein of Ramadan tie together, Eid tie together etc. to their end user. (Place:

Place anxiety with various systems and forms of accessibility of the Effectiveness of celebrity in brand endorsement throughout diverse franchise and place of work. It composes their services provide for the purchaser’s at any time and where ever they need. Mobilink indigo has a broad system of sharing service in Pakistan. But Telenor persona has not to broad system of sharing as compare to Mobilink indigo and both companies services are available throughout their examine centers situated in all country. Franchises obtain well-situated for vendor to formulate the services obtainable to end users. (Promotion:

Promotion means the method of communicate with your customers. Promotion formulates strong client’s buying authority and makes consumers buy choice easier. Mobilink indigo be appropriate heavy price associated with endorsement or publicity merchandise ; services. Doing well promotion add to deal so that services and other outlay are extend over a superior output. 2. 2Market segmentation strategies Market segmentation strategies are as followed under • Sales dimensions/ No of customers: Mainly the project base on comparison of Effectiveness of celebrity in brand endorsement it also primarily focal point the services of its clientele.

The choice of purchaser and the means depends on the volume of clientele in that area. Mobilink indigo subscriber 31. 6 million (Approx) Telenor persona Telecom24. 7 million (Approx) • Geographic Place This is the nearly everyone other most significant feature, equally the companies offered their item for consumption to the entire region of Pakistan. Generally they focus on big Cities i. e. Gujranwala, Karachi, Lahore as well as Islamabad. Punjab Sindh Balochistan Khyber Pakhtonkhan Azad Jammu ; Kashmir • Physical Limitations

Within Pakistan there are no boundary describe to make available the services by both companies. No such condition is stand in services about Effectiveness of celebrity in brand endorsement of this corporation as yet it can go from corner to corner the state edge. • Revenue This feature does not persuade the company marketplace segmentation policy 2. 3Target marketing strategies Mobilink Indigo Every region take account of AJK of Pakistan residents is the goal marketplace, each person in Pakistan desire to make use of mobile that make a wide goal market for the services area.

At this time Mobilink indigo has in the order of Fifty million cellular subscribers. Mobilink indigo objective about Effectiveness of celebrity in brand endorsement is to imprison all section of its marketplace , early age kids , youthful, aged, undergraduate , expert, industry peoples, Mobilink indigo has modify selection of all these group of students of consumer. Within Pakistan the majority of the residents are based on middle class so Mobilink indigo is mostly focus aim their services are middle class popular. Following are the target marketing strategies of Mobilink indigo. Decreased value sales

There are various diverse packages has been launch to thrust the purchaser to use the invention greatest. These packages also facilitate the client to control from one system to any more. Inducement on usage There are many inducement bring in to use the maximum services for example by calling initial two minutes the after that five minutes are without charge of price. Inducement on control to set of connections To give confidence the client Mobilink indigo as well as Telenor persona obtainable inducement to customers like free of charge minutes and without charge sms for a precise era.

Telenor Persona Telenor persona market strategy is to focal point on to increase in number of subscriber through out the world and also focus to develop our leading position in certain regions with a broad range of communication services Following are the target marketing strategies of Telenor persona. To strengthen our location in certain province Telenor Persona try to strength our location in certain province for provide different service to our customer for target market. Focusing on the Customer’s section

Focusing on the Customer’s segments means to build packages through extensive and aggressive study skill like because of its large incident as it is one of the establish in services, so they use their effective services and come up with so many packages in that state that is useful for kind of citizens. 2. 4Advertising objectives of the Company The advertising objectives are the following There are less ads being run for Telenor Persona in comparison to the Mobilink indigo. The reason for this is that the main objective is to keep a favorable brand image in the eyes of the corporate clients and there is not too much bombardment of ads.

Also the ads are meant to enhance the postpaid users by offering them innovative services like internet, emailing, etc. The objective of Mobilink indigo and Telenor persona to make the services separate from others and to convince on the customers Mobilink indigo increase market share and to push brand favorite and to be a focus for maximum customers as well as to attain the association objective through services 2. 5Message strategy: For each brand and for a number of adverts for these brands there are different message strategies are used.

Telenor-Persona The equivalent case is with Telenor, they modify their message executive method regularly to keep away from their customers other public get uninterested. For example Telenor used “technological proficiency” and “picture” which helps citizens smile on their visage. 2. 7 Reach, frequency and impact Mobilink indigo and Telenor persona to his most excellent to present their services to their customer and contributor it has a sensible budget for encouragement.

Effectiveness of Celebrity in Brand Endorsement Essay