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A kCILC1 kLCk1 CN
lmpact of Celebrity
Lnoorsement on Branos
1LAM
111c
S1ands Apa1.
h S
1
ShS1R
LSJS {YR-!011)
AhCAL0R
2
cettlflcote of tbe locolty ColJe
ueclaraLlon
We hereby declare LhaL Lhls pro[ecL enLlLled A sLudy on lmpacL of celebrlLy endorsemenL on
brands" submlLLed ln parLlal fulflllmenL for Lhe lnLernshlp as a parL of Lhe 8achelor of 8uslness
ManagemenL of uayananda Sagar !unlor 8uslness School ls a record of lndependenL research
work carrled ouL by us under Lhe guldance of rof nlklLha S Swamy uayananda Sagar !unlor
8uslness School kumaraswamy LayouL
We also declare LhaL Lhls pro[ecL ls a resulL of our own efforL and shall noL be submlLLed for Lhe
reward of any degree/dlploma/assoclaLe shlp/prlze Lo any unlverslLy
lace 8angalore
uaLe 12092011
ckoowleJqemeot
l would llke Lo express my slncere graLlLude Lo all my Leam members who have been
lnsLrumenLal ln presenLaLlon of Lhls reporL
no work can be accompllshed alone lL needs varlous people Lo glve a flnal record Pere are Lhe
llsLs of members assoclaLed wlLh Lhe pro[ecL reporL
Arunlma uas (1eam Leader)
Mlnakshl 8ehera (CoordlnaLor)
Seeshma kannan (uaLa 1abulaLlon)
vldya SC (8eporL resenLaLlon)
Arunlma uas (CollecLlon of uaLa)
8harLl 1lwarl (8eporL resenLaLlon)
neha 8hagaL (uaLa 1abulaLlon)
nlshanL 8 (lleld Work)
ulbyendu Sen (CollecLlon of uaLa)
8ohlL Chandak (lleld Work)
Sandeep v8 (8eporL resenLaLlon)
Ar[un S (lleld Work)
varun Slngh (lleld work)
We as a Leam would llke Lo Lhank rof Shlvakumar ulrecLor uS!8S for hls klnd supporL We
would also llke Lo Lhank rof 8ekha M rocess Pead 88M/8CCM uS!8S for her conLlnuous
supporL
LasL buL noL Lhe leasL we would Lhank oLher dlsLlngulshed faculLles and frlends and Lhe
managemenL for Lhelr supporL LhaL has largely conLrlbuLed Lo Lhe successful compleLlon of Lhe
pro[ecL We exLend our speclal Lhanks Lo rof nlklLha S Swamy rof uS!8S for her
dlsLlngulshed supporL
lace 8angalore Arunlma uas (LllLe1eam Leader)
cooteots
ChapLers arLlculars age no
1 LxecuLlve Summary 7
2
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22
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2
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Ceneral lnLroducLlon
SL of problem
Cb[ecLlve
Scope
8esearch MeLhodology
LlmlLaLlons
8
12
12
1
1
1
uaLa analysls and
lnLerpreLaLlon
1
1
2
Summary of llndlngs
SuggesLlon
8ecommendaLlon
Concluslon
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3
7
7
3 8lbllography 9
6 Annexure 0
3
lst Of 1obles
Serlal number 1able name age
number
1 1he varlous moLlvaLlng facLors whlch lnfluence consumer
buylng behavlor
13
2 1he maln purpose behlnd buylng a parLlcular producL 17
Companles lnvesL huge money for uslng celebrlLles help Lhem
ln lncreaslng Lhelr LoLal revenue
18
CelebrlLy endorsemenL helps companles lncrease Lhelr markeL
share
19
3 1he presence of a celebrlLy ln an adverLlsemenL encourages a
consumer ln buylng LhaL parLlcular producL
20
6 lf Lhe celebrlLy Lhemselves uses Lhe producL Lhey Lhemselves
endorse
21
7 1he Lype of celebrlLy Lhe consumers llke Lhe mosL 21
8 1he raLlng of Lhe celebrlLy for Lhe brand Lhey endorse 24
9 1he mosL lmporLanL facLor whlch consumers conslder for
buylng a parLlcular producL
26
10 CelebrlLy endorsemenL ls lmporLanL Lhlng ln brand promoLlon 28
11 CelebrlLy endorsemenL ls really effecLlve ln reachlng a flrm's
goal
29
12 8easons for Lhe companles Lo choose celebrlLles for
promoLlng Lhelr producL
J0
6
lst Of Ctopbs
Serlal number Craph name age number
1
1he varlous moLlvaLlng facLors whlch lnfluence
consumer buylng behavlor
16
2
1he maln purpose behlnd buylng a parLlcular producL 18
Companles lnvesL huge money for uslng celebrlLles help
Lhem ln lncreaslng Lhelr LoLal revenue
19
CelebrlLy endorsemenL helps companles lncrease Lhelr
markeL share
20
3
1he presence of a celebrlLy ln an adverLlsemenL
encourages a consumer ln buylng LhaL parLlcular
producL
21
6
lf Lhe celebrlLy Lhemselves uses Lhe producL Lhey
Lhemselves endorse
22
7
1he Lype of celebrlLy Lhe consumers llke Lhe mosL 2
8
1he raLlng of Lhe celebrlLy for Lhe brand Lhey endorse 23
9
1he mosL lmporLanL facLor whlch consumers conslder
for buylng a parLlcular producL
27
10
CelebrlLy endorsemenL ls lmporLanL Lhlng ln brand
promoLlon
28
11
CelebrlLy endorsemenL ls really effecLlve ln reachlng a
flrm's goal
29
12
8easons for Lhe companles Lo choose celebrlLles for
promoLlng Lhelr producL
1
7
1xecotlve 5ommoty
Cur Loplc 1he lmpacL of CelebrlLy LndorsemenL on 8rands" ls a small sLudy of Lhe varlous
facLors LhaL lnfluence any consumer ln buylng a parLlcular producL LhaL ls belng endorsed by a
celebrlLy
The crescendo of celebrities endorsing brands has been steadily increasing over the past 20
years or so. Marketers overtly acknowledge the power of celebrity in influencing buyers
purchase decision. They have firm believe that likeability or a favorable attitude towards a
brand is created by the use of a celebrity. The crore of rupees spent per year on celebrity
endorsement contracts show that celebrities like Amitabh Bachchan, Sharukh khan and
Sachin Tendulkar play an important role for the advertising industry. It is an established
fact that celebrity endorsement can bestow unique features or special attributes upon a
product that it may have lacked otherwise.
Though marketers should remember that celebrities are mere living beings like us and if
they can highlight the benefits or advantages of a brand they can also have some uncanny
negative impact. Theory and practice suggests that the use of stars and their unleashing
power in advertising generate a lot of publicity and attention from the public but the
underline questions are, do these stars really help a brand by increasing its sales? On the
other hand, can they really have an Impact on the persons consumption pattern, thereby
changing his brand preference? How an advertisement featuring a celebrity can influence
consumers buying decision and can create an association between a brand and a common
man.
To answer these questions, the research will examine the relationship between celebrity
endorsements and brands, and the impact of celebrity endorsement on consumers buying
behavior as well as how consumer makes brand preferences.
We have tried to know how consumers brand attitudes and preferences can be influenced,
how buyersbehavior can be influenced, how buyers behavior can be molded.
8
2Ceoetol lottoJoctloo
Ce|ebr|ty
As per Lhe dlcLlonary meanlng of Lhls word lL ls a famous person" A person who has excelled
ln hls / her fleld of acLlon or acLlvlLy ln our day Lo day acLlvlLy we perform many acLs may aL
home aL work place on fleld ln sporLs ln soclal llfe 8uL Lhese acLs may be dally rouLlne or [usL
acLs" per say glvlng no exLraordlnary resulLs noL noLlced by anybody surroundlng and noL
Laken lnLo noLlce by Medla 8uL lf a person acLs or performs someLhlng whlch glves specLacular
resulLs ls noLlced by masses 1haL person has done someLhlng" speclal LhaL we and masses
cannoL do Pe ls regarded as a speclal person wlLh some exLra" glven by LhaL AlmlghLy"
above We sLarL feellng LhaL he/she ls greaL We sLarL celebraLlng hls/her all acLs whlch produce
success lf Lhe success raLe for LhaL person ls very hlgh Lo dellver" same resulLs he becomes a
CLLL88l1?" lL may be ln fleld of sporLs clnema LheaLre soclal llfe pollLlcs and sclence
anyLhlng buL someLhlng wlLh some speclal resulLs
Ce|ebr|ty and a rand
SLar power ln lndla can be gauged by Lhe successful endorsemenLs done by Sharukh khan
(epsl Pyundal SanLro SunfeasL and navraLan eLc) AmlLabh 8achchan Sachln 1endulkar
8ahul uravld PrlLhlk 8oshan and Lhe oLhers 1he lnevlLable quesLlon ls lf and how Lhe llvely
lnLeresL of Lhe publlc ln Lhe rlch and famous can be efflclenLly and effecLlvely used by
companles Lo promoLe Lhelr brands and consequenLly Lo lncrease Lhelr sales revenues
1hls facL can be broughL ouL by uslng cerLaln examples le Mr AmlLabh 8achchan promoLlng
Cadbury chocolaLes afLer Lhe flasco of lnfesLaLlon when Lhe lmage of Cadbury lndla wenL very
low ln Lhe eyes of people Soon Lhe company found a perfecL flL and a rellable celebrlLy Lo
LransmlL Lhe correcL message and help regeneraLlng Lhe losL LrusL 1he flL beLween Lhe producL
and celebrlLy ls evldenL as Mr 8achchan and Cadbury chocolaLes boLh have LesLed Lroubled
Llmes and sLlll Lhey sLand Lall and Lhe love and LrusL Lhey boLh share wlLh Lhe people all across
lndla 1hls ls a llve example of how a celebrlLy broughL cerLaln aLLrlbuLes Lo a producL llke
chocolaLe
AcLor Sharukh khan has also endorsed dlverslfled producLs Pls endorsemenL baskeL ls ranglng
from Pyundal SanLro Lo SunfeasL blsculLs on one hand and from Compaq compuLers Lo
vldeocon elecLronlcs on Lhe oLher
Accordlng Lo AdverLlslng research companles boLh Lhe acLors are dolng well and Lhe ad spenL
on boLh by Lhe companles ls lncreaslng aL a phenomenal raLe so does Lhelr baskeL of
endorsemenLs 1hese acLors brlng rellablllLy and LrusL ln Lhe brand and above all Lhey help ln
lncreaslng Lhe sales revenues
9
CelebrlLy endorsemenLs are powerful has become evldenL from Lhe above Lwo examples buL
why ls lL so? 1hls power ls offered by Lhe followlng elemenLs whlch also creaLes a '1op of Lhe
Mlnd oslLlon'
* lnsLanL Awareness knowledge abouL Lhe brand and easy recall
* values and lmage of Lhe brand ls deflned hlghllghLed and refreshed by Lhe celebrlLy
* 1he celebrlLy adds new edge and dlmenslon Lo Lhe brand
* CredlblllLy LrusL assoclaLlon asplraLlon and connecLlvlLy Lo brand
* 8ellef ln efflclency and new appearance LhaL wlll resulL ln aL leasL Lrlal usage
Jat |s product endorsement?
A producL endorsemenL ls a form of LesLlmonlal from someone whlch lndlcaLes LhaL Lhey llke or
approve of a producL Commonly producL endorsemenLs are sollclLed from people who are
soclally promlnenL allowlng companles Lo adverLlse Lhelr producLs wlLh sLaLemenLs llke as
used by suchandsuch an acLress" or Lhe offlclal producL of company/evenL x" lL's hard Lo
mlss a producL endorsemenL on producL packaglng and ln adverLlsemenLs mosL companles
keep Lhelr endorsemenLs fronL and cenLer so LhaL Lhey are always ln Lhe publlc eye
Modern producL endorsemenLs can come wlLh conLracLs worLh subsLanLlal amounLs of money
lor example many sporLs sLars agree Lo parLlclpaLe ln producL endorsemenL campalgns wlLh
Lhe undersLandlng LhaL Lhe company wlll compensaLe Lhem for Lhe Lrouble some sLars donaLe
Lhe proceeds Lo charlLles Lhey supporL uslng Lhe producL endorsemenL as a publlc relaLlons
campalgn ln exchange for an endorsemenL conLracL someone may agree Lo use Lhe producL
publlcly whenever posslble and Lhey may be resLrlcLed from uslng producLs made by a
compeLlLor
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