1

Project on

A STUDY ON THE IMPACT OF CELEBRITY ENDORSEMENTS AS A SOURCE OF BRAND BUILDING AND BUYING BEHAVIOUR OF CONSUMERS
In the Subject Marketing Strategies & Plans Submitted to University of Mumbai For Semester II Of Master Of Commerce y Shruti !ikram "Management #$$% Under the &uidance of Prof' Mistry (ear )*#) + )*#,

INDEX
Chapter Topic Page No

-.ecutive Summary /' Introduction to the subject ' -volution of the subject

3 6

0istory Of /utomobile 1evie2 of 3iterature /' Statistical 1e4resentation and Inter4retations ' Findings

26 37 39

#' Summary )' Conclusion ,' 3imitations 5' 1ecommendations

53

ibliogra4hy

58

Chapter 1
Executive Summary

India is a country 2here 4eo4le love to live in dreams' 6hey 2orshi4 celebrities' Celebrities may be Cricket stars like Sachin 6endulkar7 Mahinder Singh 8honi or film stars like Salman 9han7 :ohn -brahim' 6hey treat them as &od' Marketers; use this very 4re4osition so as to influence their target customers < may be e.isting or 4otential ones' For this they ro4e in these celebrities and give them 2ho44ing amount of money' 6hey believe that by doing this they can associate their 4roducts 2ith their target customers' 6his is called celebrity endorsement' ut do these celebrity endorsements acts as a source of brand<building and have im4act over the 4urchasing behavior of customers in case of automobiles= For this I decided to conduct this very research and objectives of my research are> 6 o identify the influence of celebrity endorsement on consumer buying behavior' 6 o study celebrity endorsement as a source of brand<building' 6o find 2hich ty4e of celebrity 4ersona is more effective'

3ot of researchers has done e.tensive research 2ork regarding celebrity endorsement7 its influence over customers 4urchasing decisions' /fter studying the 2hole literature related to celebrity endorsement I found a ga4 in the study' 6his ga4 2as 2hether celebrity endorsement acts as a source of brand<building' So I decided to undertake research on this 4articular as4ect'

6his research is limited due to various constraints like time available7 scarcity of resources etc' From this 2e can make an attem4t to generali?e the result to the 2hole universe' /fter conducting research it 2as found that brand name and celebrity endorser are the t2o key factors that 4lay an im4ortant role in affecting 4urchase intention' Majority of the 4eo4le 2ant to see their favorite celebrity endorsing their brands' 8uring our research an im4ortant factor revealed that mostly 4eo4le 2ant to see male celebrities endorsing automobile vehicles rather than female' 6his fact is also su44orted by advertisement of glamour motorbike 2hich have baseline @8efinitely male' 6his 4articular advertisement created hot s4aces at Cannas festival' 6here are large no' of mediums of 4ersuasion but celebrity endorsement is an effective mode of 4ersuasion'

Peo4le love to see s4orts stars endorsing automobile vehicles than that of bolly2ood stars' 6his 4articular as4ect is mainly su44orted by the fact that in India 2here Cricket is religion and 2ith the success of IP3<# cricketers like &autam &ambhir7 Ishant Sharma are able to dis4lace big film stars like 0rithik 1oshan for advertisements of Coca<Cola' /nother

im4ortant fact 2hich came into e.istence 2as majority of 4eo4le follo2 their favorite celebrity 2hile making a ne2 4urchase every time'

eside this one major factor come into e.istence that mostly res4ondents 2ere able to recogni?ed the celebrity used in various advertisement' So in this brand recall test7 mostly 4ositive results 2ere found' One o4en<ended Auestion 2as also included about suggestion' From that it 2as concluded that mostly 4eo4le 2ant that instead of s4ending huge amount of money onto celebrities7 com4any should come out 2ith some schemes so as to lure their customers' So it can be concluded that for a small e.tent Celebrity endorsement acts as a source of brand<building but com4any should follo2 integrative a44roach so as to build strong brands' eside celebrity endorsement they should run certain schemes so as to

4rovide value to the customer and to build strong brand'

Chapter 2
2.1.1I tro!uctio to the "u#$ect

6here are large no' of brands available in the market' Some are very familiar and rest are some2hat' Bhat are the things that distinguish those from rest= It may be brand name7 advertisement7 royal heritage and may be celebrity endorser 2ho endorses them' -'g' 1aid and 6aylor has the rich heritage of ro4ing in various cascades of :ames ond **C as their brand endorser and it has hel4ed them strongly to build their brand' usinesses have long

sought to distract and attract the attention of 4otential customers that live in a 2orld of ever<increasing commercial bombardment' -veryday consumers are e.4osed to thousands of voices and images in maga?ines7 ne2s4a4ers7 and on billboards7 2ebsites7 radio and television' -very brand attem4ts to steal at least a fraction of an unsus4ecting 4ersonDs time to inform him or her of the ama?ing and different attributes of the 4roduct at hand' ecause of the constant media saturation that most 4eo4le e.4erience daily7 they eventually become numb to the standard marketing techniAues' 6he challenge of the marketer is to find a hook that 2ill hold the subjectDs attention'

/lso from a marketing communications "marcoms% 4ers4ective7 it is vital that firms design strategies that hel4 to under4in com4etitive differential advantage for the firmDs 4roduct or services' /ccordingly7 marcom activities back<u4 other elements in the marketing mi. such as designing7 branding7 4ackaging7 4ricing7 and 4lace 6he term Celebrity refers to an individual 2ho is kno2n to the 4ublic "actor7 s4orts figure7 entertainer7 etc'% for his or her achievements in areas other than that of the 4roduct class endorsed "Friedman and

Friedman7 #ECE%' 6his is true for classic forms of celebrities7 like actors "e'g'7 /mitabh achchan7 Shahrukh 9han7 1ani Mukherjee /amir 9han and Pierce rosnan%7 models

"e'g'7 Mallaika /rora7 3isa 1ay7 /ish2arya 1ai7 Faomi Cam4bell7 &isele uendchen7 etc%7 s4orts figures "e'g'7 Sachin 6endulkar7 Gaheer 9han7 Sourav &anguly7 /nna 9ournikova7 Michael Schumacher7 Steve Baugh7 etc%7 entertainers "e'g'7 Cyrus roacha7 O4rah

Binfrey7 Conan OD rien%7 and 4o4<stars "e'g'7 Madonna7 8avid o2ie% < but also for less obvious grou4s like businessmen "e'g'7 8onald 6rum47 ill &ates% or 4oliticians'

Celebrities a44ear in 4ublic in different 2ays' First7 they a44ear in 4ublic 2hen fulfilling their 4rofession7 e'g'7 !ish2anathan /nand7 2ho 4lays chess in front of an audience' Furthermore7 celebrities a44ear in 4ublic by attending s4ecial celebrity events7 e'g'7 a2ard ceremonies7 inaugurations or 2orld 4remieres of movies' In addition7 they are 4resent in ne2s7 fashion maga?ines7 and tabloids7 2hich 4rovide second source information on events and the D4rivate lifeD of celebrities through mass<media channels "e'g'7 Smriti Irani being regularly featured in various 4ublications%' 3ast but not least7 celebrities act as s4okes<4eo4le in advertising to 4romote 4roducts and services7 2hich is referred to celebrity endorsement'

%Ce&e#rity E !or"eme t% McCrackenDs "#EHE% definition of a celebrity endorser is7 Iany individual 2ho enjoys 4ublic recognition and 2ho uses this recognition on behalf of a consumer good by a44earing 2ith it in an advertisement "marcoms%7 is useful7 because 2hen celebrities are de4icted in marcoms7 they bring their o2n culturally related meanings7 thereto7 irres4ective of the reAuired 4romotional role'I

Friedman and Friedman "#ECE% found em4irical evidence that7 in the 4romotion of 4roducts high in 4sychological andJor social risk7 use of celebrity endorser 2ould lead to greater believability7 a more favorable evaluation of the 4roduct and advertisement7 and a significantly more 4ositive 4urchase intention'

6hus7 com4anies use celebrities to endorse their 4roductsK ho2ever7 there are dee4er attributes that are involved in celebrity endorsement' Celebrities might endorse as a brand ambassador or a brand face' Some time 4eo4le have this habit of relating this very term of celebrity endorsement 2ith brand face' ut this is not so'

'i((ere ce #et)ee *ra ! +m#a""a!or , *ra ! -ace / rand /mbassador 2ould be one 2ho is not only a s4okes4erson for the brand or is just a44earing as a testimonial for the brandDs benefits' 0eJshe is an integral 4art of the brand 4ersona and hel4s to build emotion ale7 2hich goes beyond just a44earing on 6! commercials'

0e takes u4 the cause of a

rand Cham4ion and is associated 2ith every as4ect related

2ith the brand' Bhat is more7 there is a significant difference bet2een making just an endorsement for say7 a sham4oo or an automobile7 and being that brandDs alter ego' oth 4arties take the latter far more seriously to the deal' So a brand ambassador 2ould be involved in 4ress releases7 heJshe 2ould be actively 4artici4ating in any sales 4romotion7 s4orting the rand all the 2hile' For e.am4le7 Fardeen 9han is the brand ambassador for Provogue 2hile he remains a brand face for 3u. ody Bash'

On the other hand7 a rand Face 2ould be the current celebrity 2ho is just used as a tool to increase brand recall and is only a44earing in the advertisement' It is usually seen that a brand face is a tem4orary contract and is very short term at times' /n e.am4le 2ould be Sona Chandi Cha2an4ryash using Sourav &anguly for a 2hile in its commercials' rand faces are easily forgotten and fade a2ay 2ith the cam4aignDs end'

6he motive behind total branding may be decocted as an attem4t to amalgamate diverse activities to 2in customer 4reference' /4ro4os to this conte.t7 the to4ic .Impact o( ce&e#rity e !or"eme t o overa&& #ra !/7 is a significant one' 6he crescendo of

celebrities endorsing brands has been steadily increasing over the 4ast years' Marketers overtly ackno2ledge the 4o2er of celebrities in influencing consumer<4urchasing decisions' It is a ubiAuitously acce4ted fact that celebrity endorsement can besto2 s4ecial attributes u4on a 4roduct that it may have lacked other2ise' ut everything is not hunky< doryK celebrities are after all mere mortals made of flesh and blood like us' If a celebrity can aggrandi?e the merits of a brand7 he or she can also e.acerbate the image of a brand' If I may take the liberty of re4hrasing +ri"tot&e0" 1uote on anger7 Any brand can get a celebrity. That is easy. But getting a celebrity consistent with the right brand, to the right degree, at the right time, for the right purpose and in the right way... that is not easy.

10

Celebrity endorsements are im4elled by virtue of the follo2ing motives> Instant rand /2areness and 1ecall'

C e l e b r i t y values define7 and refresh the brand image' C e l e b r i t i e s add ne2 dimensions to the brand image' I n s t a n t credibility or as4iration P1 coverage' 3 a c k of ideas' C o n v i n c i n g clients'

Scope o( Ce&e#rity E !or"eme t2 6he use of testimonials by advertisers dates back to the #Eth century 2hen medicines 2ere 4atented' Firms have been ju.ta4osing their brands and themselves 2ith celebrity endorsers "e'g'7 athletes7 actors% in the ho4e that celebrities may boost effectiveness of their marketing' 6he increasing number of endorsements thro2s a valid Auestion to the consumers' Is there a science behind the choice of these endorsers or is it just by the 4o4ularity measurement= Bhat are the reasons 2hich lead to im4act of celebrity endorsement on brands= 6he success of a brand through celebrity endorsement is a cumulative of the follo2ing #5 attributes' &reater the score of the belo2 4arameters7 greater are the chances of getting close to the desired im4act'

11

Impact 3egio " o( Ce&e#rity E !or"eme t

Bhile brand marketers 2ith 4ositive e.4eriences 2ould tend to believe that celebrity endorsements 2ork and some 2ould disagree7 but one 2ould be sure that the magnitude of its im4act is difficult to measure even if sales figures are at our dis4osal' 0o2ever7 2e can understand 2hy it 2orks and the im4act regions of celebrity endorsement'

12

6he illustrations belo2 e.4lain the same> <

4o) Ce&e#rity E !or"eme t" I (&ue ce the Co "umer 6he basis for the effectiveness of celebrity<endorsed advertising can be linked to 9elmanDs 4rocesses of social influence as discussed by Friedman and Friedman' /ccording to 9elman7 there are three 4rocesses of social influence7 2hich result in an individual ado4ting the attitude advocated by the communicator>

Comp&ia ce5 I!e ti(icatio , I ter a&i6atio 6hese latter t2o 4rocesses are 4articularly a44licable to celebrity<endorsed advertising' Comp&ia ce infers that another individual or grou4 of individuals influences an individual because he or she ho4es to achieve a favorable reaction from this other grou4' 6his 4rocess of social influence is not directly a44licable to celebrity advertising because there is little7 if any7 interaction bet2een the celebrity and the consumer'

13

I!e ti(icatio

a44lies to the situation 2herein the individuals emulate the attitudes or

behavior of another 4erson or grou47 sim4ly because they as4ire to be like that 4erson or grou4' 6his 4rocess is the basis for referent 4o2er' It 2as found that celebrities are more commonly liked than a ty4ical consumer s4okes4erson'

I ter a&i6atio as a 4rocess of social influence is said to occur 2hen individuals ado4t the attitude or behavior of another 4erson because that behavior is vie2ed as honest and sincere and is congruent 2ith their value system' 6he effectiveness of celebrity advertising traditionally has not been strongly linked to this 4rocess7 as a celebrityDs reason for 4romoting a 4roduct can just as easily be attributed by the consumer to an e.ternal motive "i'e'7 4ayment of fee% as to an internal motive "i'e'7 the celebrityDs true belief in the value and benefit of the 4roduct%' /n im4ortant issue of concern relates to the develo4ment of a strategy for use in Celebrity /dvertising7 2hich benefits from the dramatic im4act of dual su44ort of both the identification and internali?ation 4rocesses of social influence' Celebrities are 2ell<liked7 but the techniAues that can be used to enhance their credibility as s4okes4eo4le7 and therefore7 tie<in more closely 2ith the internali?ation 4rocess needs to be looked into'

E((ective e"" o( Ce&e#rity E !or"er" / study conducted by Charles /tkin and Martin lock focused on alcohol advertising and young audience to e.amine the im4act of celebrity advertising in terms of social effects of advertising' 6he s4onsoring Com4any is the underlying source of any advertising message7 but the individual models de4icted in the advertising serve as the more visible communicator in many cases' 6he most thoroughly studied source Auality is credibility'

14

1esearch conducted by social 4sychologists over the 4ast ,* years demonstrates that a source 4erceived as highly credible is more 4ersuasive than a lo2 credibility sender "0ovland and Beiss7 #EL#K Mc&uire7 #E$EK 0ass7 #EH#%'

6he sources that com4anies use to 4resent their advertising message ty4ically attem4t to 4roject a credible image in terms of com4etence7 trust2orthiness or dynamism' Celebrity endorsers are considered to be highly dynamic7 2ith attractive and engaging 4ersonal Aualities' /udience may also trust the advice given by some famous 4erson7 and in certain cases7 celebrities may even be 4erceived as com4etent to discuss the 4roduct' Friedman7 6ermini and Bashington cite a #ECL study sho2ing that celebrities are featured in #LL of 4rime<time 6! commercials' / later survey re4orted that this 4ro4ortion 2as u4 to )*M "/dvertising /ge7 #ECH%' 6he most 2idely used celebrities are s4orts figures7 actors or other ty4es of entertainers' 6here are several reasons 2hy a famous endorser may be influential> <

6hey attract attention to the advertisement in the cluttered stream of messages 6hey are 4erceived as being more entertaining 6hey are seen as trust2orthy because of a44arent lack of self<interest'

6he final element is due to the 2ide<s4read attribution that major stars do not really 2ork for the endorsement fee7 but are motivated by genuine affection for the 4roduct "9amen et al7 #ECL%'

15

8es4ite the use of famous endorsers7 there is little 4ublished evidence regarding the effectiveness' In one e.4eriment7 an advertisement for a fictitious brand of Sangria 2ine featured an endorsement attributed to either a celebrity "actor < /l Pacino%7 a 4rofessional e.4ert7 the Com4any President7 a ty4ical consumer and no source "Friedman7 6ermini and Bashington7 #ECC%' College students read the ad and gave the ad *<#* scales of believability7 4robable taste7 and intent to 4urchase' /cross these three measures7 the celebrity condition 4roduced the highest scores' Bhile the Dno<sourceD control grou4 had a 4urchase intention rating of )'C7 the subjects e.4osed to the actor scored ,'E' elievability 2as rated )'H by control subjects versus 5'# by those seeing the celebrity endorsement' For taste7 the baselines of 5'* com4ares to the celebrity grou4 score of L'$' Fone of the other three endorsers 2ere as influential as the celebrated 4erson

*ra ! Image -ormatio , *ra ! Pre(ere ce 0aving a congruent image bet2een the brand and celebrity does not guarantee any 4ositive effect on consumersD brand 4references' 6he fundamental Auestion is < 2hat a brand image really does to consumers= aran and lasko e.4lained7 ISince most 4roducts arenDt s4ecial7 most advertising does that entire so<called image stuff''' 6hereDs no information about the 4roduct7 thereDs only information about the kind of 4eo4le 2ho might be inclined to use the 4roduct'I "4'#,%' 6his vie2 is echoed by Feld2ick "#EE#% 2ho has suggested that the subjective e.4erience of using a brand can be different from the subjective e.4erience of using an identical 4roduct 2ithout the brand reassurance' In the case of using celebrity advertising to build brand image7 the effects are e.amined 2ith a social 4sychological frame2ork'

16

efore 2e can scrutini?e the effects of celebrity endorsement on the overall brand7 2e have to look at the im4licit nuances that act as sources of strong brand images or values> <

Experie ce o( 7"e2 6his enca4sulates familiarity and 4roven reliability'

N 7"er +""ociatio "2 rands acAuire images from the ty4e of 4eo4le 2ho are seen using them' Images of 4restige or success are imbibed 2hen brands are associated 2ith glamorous 4ersonalities' N *e&ie( i E((icie cy2 1anking from consumer associations7 ne2s4a4er editorials7 etc' N *ra ! +ppeara ce2 8esign of brand offers clues to Auality and affects 4references' N 8a u(acturer0" Name , 3eputatio 2 / 4rominent brand name "Sony7 9ellogg;s7 ajaj7 and 6ata% transfers 4ositive associations'

6he celebrity;s role is the most e.4licit and 4rofound in incarnating user associations among the above mentioned 4oints' 6o com4rehend this7 let us analy?e the multi4lier effect formula for a successful brand> <

17 S=P* D*AV -- the multiplier effect

Bhere

S is a Successful rand P is an -ffective Product ' is 8istinctive Identity +9 is /dded !alues

6he realm of the celebrity;s im4act is confined to besto2 a distinctive identity and 4rovide /! to the brandK the celebrity does not have the 4o2er to im4rove or debilitate the efficiency and features of the core 4roduct' 6hus7 2e are gradually a44roaching an evident 4ro4osition claiming7 I6he health of a brand can definitely be im4roved u4 to some e.tent by celebrity endorsement' ut one has to remember that endorsing a celebrity is a means to an end and not an end in itself'I

/n a44ro4riately used celebrity can 4rove to be a massively 4o2erful tool that magnifies the effects of a cam4aign' ut the aura of cautiousness should al2ays be there' 6he fact to be em4hasi?ed is that celebrities alone do not guarantee success7 as consumers no2adays understand advertising7 kno2 2hat advertising is7 and ho2 it 2orks' Peo4le reali?e that celebrities are being 4aid a lot of money for endorsements and this kno2ledge leads them to cynicism about celebrity endorsements'

18

+utomo#i&e mar:eti g i I !ia2 6he com4etitive nature of the automobile industry has 4rom4ted the com4anies to take u4 ne2 and innovative marketing strategies to th2art the com4etition' 6he segment of cars

is the segment 2hich sees ma.imum com4etition as the consumer has a number of models to choose from and itDs the volumes 2hich drive the margins'

/ll the com4anies as a 4art of their marketing strategy offers a range of vehicles in all the segment to make sure that the customer is driving one of their vehicles only' /dvertisements on the /udio visual medium are a rage as it gives the car makers an o44ortunity to flaunt their cars' Flashy cars can be demonstrated on television but 2hen it comes to the finer 4rints of the cars7 4rint and online media comes to the rescue' 6he online medium offers a greater fle.ibility to the car com4anies since they come 2ith a lot of interactive features like demonstrating the interiors of the car 2ith its salient features' 6he 4rint medium on the other hand 4rovides an o44ortunity to the car makers to e.4lain the function of a car in detail' Celebrity endorsements and testimonial advertisements have come a long 2ay and they are also doing their bit to sell the cars' Su4er star Shahrukh 9han has been associated 2ith 0yundai Motor Com4any for a long time and he comes regularly on television to 4romote the Santro car' Similarly Ford has ro4ed in :unior achan for the 4romotion of the latest offering from the com4any Ford Fiesta' On a similar note Saif /li 9han and 1ani Mukherjee is sho2n chasing each other 2ith a Chevrolet aveo'

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/amir 9han 2ho is considered to be one of the most talented actors in the industry is freAuently seen changing roles on screen to 4romote the 6oyota Innova7 a car 2hich is generations ahead of its 4redecessor 6oyota Oualis'

Cricketers havenDt been left behind in the race of 4romoting carsK Fiat Palio had received a great thrust 2hen the 4romotion of the car 2as taken u4 by the batting maestro Sachin 6endulkar' In addition to the 4ublicity and advertisement 2hich is done by the com4anies there are certain innovative strategies 2hich are taken u4 by the com4anies to beat the com4etition from time to time'

2.2Evo&utio o( "u#$ect2 6he celebrities get huge amount of money to endorse the 4roduct 2hich actually creates recall<value for the 4roduct like Coca Cola 6ag+0euer Cadbury chocolate /amir 9han Shahrukh 9han /mitabh achan

6he adding u4 of any celebrity 2ith any brand may not al2ays increase the sales volume but if someho2 the image of the 4roduct damaged7 celebrity endorsing hel4s in recovering the image' 3ike 2hen Cadbury India;s re4utation as a safe chocolate 2as almost gone due to the 2orm controversy7 they used /mitabh achan in a commercial assuring the

audience about the Auality of the Cadbury' Similarly 2hen Pe4si & Coke 2as infected by the Pesticides controversy7 Pe4si used both S19 & Sachin 6endulkar for damage control & coke used /amir 9han for image recovery'

20

Fot all 4roducts go 2ith the image of all celebrity' It de4ends on the matching of attributes bet2een the 4roduct & the celebrity' In the age of Sunil &avaskar & 9a4il 8ev7 &avaskar;s attributes matched 2ith the 4roducts 2hich 2ere being used by the higher society 4eo4le & 9a4il dev;s attributes matched 2ith 4roducts that 2ere for common man' 6his means &avaskar 2as much trust2orthy for the advertisement of 4en & cans and 9a4il 8ev had gone for shaving cream & bicycles' 9a4il;s advertisement of Palmolive 9a :a2ab nahi in a slightly hariyanvi style is still a legend among the Indian advertisements' Sachin 6endulkar is the first celebrity in India 2hose mass a44eal is so high that he can endorse 4roduct for any section of the society' 6he filmstars before year )*** has limited endorsement and didn;t e.4lore the advertising market of India but 4ost )*** the scenario has changed' /mitabh achan after 9 C got huge 4o4ularity among the masses & his 4o4ularity is

being used by various 4roducts from 1eid & 6aylor to Parker' ut during his hay day as a su4erstar in the PH*s7 he never endorsed anything' /nother success story is S19 2ho is currently endorsing more than ,L 4roducts & earned more money from endorsement than his last ) su4er hit films C0/9 8- IF8I/ & OSO' 6he cricketers are also not in the backyard' /fter 2inning the 6<)* Borld Cu4 Indian cricket 4layers also got fe2 numbers of endorsements 8honi7 (uvraj & Gaheer 9han grabbed fe2 endorsements but in terms of numbers they are much less than the actors' Bith the change in strategy of Pe4siCo India to 4romote their P(oungistaan; cam4aign they didn;t rene2 their contract 2ith 4layers like Sachin and Sourav' Instead they have taken rising actors like 1anbir 9a4oor and 8ee4ika Padukone to 4romote their 4roduct' 6his incident also indicates that the cricketers are losing their endorsed 4roducts to the filmstars' One e.ce4tion is Sania mir?a7 in s4ite of all controversies7 off<form and injuries she is able to survive in the advertisement 2orld'

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/4art from ig 7 S19 and /amir 9han some other stars also make their o2n mark in the endorsement market like 0rithik 1oshan7 Saif /li 9han7 9areena 9a4oor7 Priyanka Cho4ra and 9atrina 9aif' 6he 4roblem in the endorsement market is that here glamour 4lays a big role' 6hat is 2hy /bhinav indra7 the only Indian to 2in a &old Medal in the Olym4ics gets only Samsung as the only 4roduct to endorse 2hereas filmstars gets offers from various com4anies to endorse their 4roducts'

*ra ! 9;" Ce&e#rity Sometimes the celebrity is more highlighted than the 4roducts7 making no recall value of the 4roduct' Bhen 1ahul 8ravid advertised for Castrol7 the brand gets overshado2ed by the celebrity & that is also a 2rong choice of celebrity' 8ravid is never famous for racing & 2hen he 4romotes the 4roduct7 if gives a 2rong signal to the customers' 6he 4roduct can use Farain 9arthikeyan to endorse it 2hich 2ill give some reliability to the 4roduct'

Some "ucce"" "tory Cadbury India used /mitabh achan not only to recover their image from 2orm

controversy but also to establish itself as the leading com4any in the Indian chocolate market' /amir 9han;s ad cam4aign P6handa Matlab Cocacola; 2as also a huge hit' Fot only that the com4any uses the su4erstars to come out from the 4esticides controversy' 8abur brings in /mitabh achan in the stagnant cha2an4rash market 2hich brings in

boost in market and hel4s 8abur to remain the market leader'

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The <ux Story 6he 3u. Soa4 in its CL yrs journey as a 4roduct al2ays used a Film Celebrity to 4romote the 4roduct 2ith the most catchy lines P3u. meri 9hubsurti 9a raaj;' 6hey used a huge number of celebrities from the beginning to 4romote their 4roduct & in their CL years celebration advertisement cam4aignK they used S19 as the main endorser 2ho has said the famous P3u. mera 9hubsurti ka raaj; along 2ith 0ema Malini7 Sridevi & 9areena 9a4oor' 6hat is the first time a male celebrity endorsed a female 4roduct in India'

Some Co trover"ie" Bhen S19 4romoted -mami;s Fair & 0andsome cream' It 2as highly critici?ed as saying that if a star 2ith S19;s stature 4romote 2hiteness cream then actually 2e are advocating for racism saying black is bad & 2hite is gold' /nd ho2 S19 could can endorse such 4roducts as there 2ill be a huge im4act among the masses regarding the skin colors' / 4erson must be judged by hisJher Aualities & not by hisJher skin color' ut 2hat 2e basically forgot that stars get money to endorse 4roducts & 2e shouldn;t eye 2ashed by the advertisement & there is no 4oint in critici?ing a celebrity for endorsing 4roduct like Fair & 0andsome' Shi&pa Shetty , 3oma ov 9o!:a. Shil4a Shetty also hardly critici?ed for 4romoting alcohol' /s being a celebrity she must be a res4onsible citi?en & a res4onsible citi?en should never 4romote alcohol' Celebrity branding is all right as long as the celebrity conducts himself in a good manner but if something 2rong ha44ens it 2ill affect the image of the 4roduct also' Bhen Salman 9han got 2arrant for killing endangered dear P6humbs U4; has no o4tion but to re4lace him'

23

So the 4roduct and the celebrity remain good as long as both of them remain individually good' 6he main 4roblem of celebrity branding is that 2hen a 4articular 4roduct is kno2n to the common 4eo4le 2ith the effect of the celebrity7 it is very difficult to se4arate the 4roduct from the star' 3ike Coca<Cola < /amir 9han7 Cadbury< /mitabh achan7 Santro< S19' Fo27 if any one of the com4any 2ant to change their endorser they have to redesign the 4roduct to let out their 4roduct from the shado2 of the old cam4aign' In case of celebrity marketing another 4roblem also arise7 that no se4arate brand value gro2s u4 for the 4roduct unless and until the 4roduct is e.traordinary' 6he 4roduct is kno2n in the name of the celebrity' Sometimes if the attributes of the celebrity doesn;t matches 2ith the 4roduct7 it also gives a negative attribute to the 4roduct endorsed' 3ike in a Survey study it is found that 4eo4le locates /mitabh achan 2ith /sian Paints the most but in reality

/mitabh endorsed Ferolac 4aints and Ferolac;s biggest com4etitor is /sian 4aints' So there are certain 4ositive as 2ell as negative 4oints in celebrity branding in India' /s a 4roducer of the 4roduct the com4any al2ays 2ants to minimi?e the negative sides of the celebrity endorsement and ma.imi?e the 4ositive im4act of the celebrity endorsement' 6his clearly raises a Auestion 2hat im4act celebrity endorsements have on 4eo4le in case of automobiles and 2hether it acts as a source of brand<building= 2.2.1 =#$ective" o( "tu!y2 6he objectives of the study are as follo2s> N 6o identify the influence of celebrity endorsement on consumer buying behavior' N 6o study celebrity endorsement as a source of brand<building' N 6o find 2hich ty4e of celebrity 4ersona is more effective'

24

2.2.2 Nee! o( the "tu!y2 /fter going through various sources like maga?ines7 ne2s4a4ers7 2ebsites I found that lot of research 2ork has undertaken by researcher regarding im4act of celebrity endorsement' ut there 2as a ga4 in the research regarding 2hether celebrity endorsement act as a source of brand<building' So there is a need to discover this fact' So I decided to 2ork on this 4articular as4ect'

2.2.3 Scope o( the "tu!y2 /s due to time constraint it is very difficult to cover the entire sectors so I decided to cover automobile sector' I am covering automobile sector as 2hole and not concentrating on any 4articular category'

2.2.4 3e"earch 8etho!o&ogy2 3e"earch 'e"ig 2 / research design is an arrangement of conditions for collection and analysis of 8ata in a manner that aims to combine relevance to the research 4ur4ose 2ith -conomy in 4rocedure' It constitutes the blue4rint for collection7 measurement and analysis of data' My research design 2ill be e.4loratory research design'

25

'ata Source"2 In dealing 2ith any real life 4roblem it is often found that data at hand are inadeAuate7 and hence7 it becomes necessary to collect data that are a44ro4riate' 6he researcher can collect data either through 4rimary source or secondary source'

a% Primary !ata> 6hese are those data 2hich are collected afresh and for the first time7 and thus ha44en to be original in character' I 2ill be using the structured Auestioners' b% Seco !ary !ata2 6hese are those 2hich have already been collected by someone else and 2hich have already been 4assed through the statistical 4rocess' I 2ill collect it from the sources like internet7 4ublished data etc'

Popu&atio o( the "tu!y (outh "Male% 2ill be included in 4o4ulation'

Samp&i g Si6e2 It is the total number of res4ondents targeted for collecting the data for the research' Sam4le si?e of #** 4ersons 2ill be taken for this research'

Samp&i g Tech i1ue2 1andom sam4ling techniAue 2ill be used in this research 4roject'

26

Chapter 3

3.1 4i"tory o( +utomo#i&e I !u"try> 6he automobile as 2e kno2 it 2as not invented in a single day by a single inventor' 6he history of the automobile reflects an evolution that took 4lace 2orld2ide' It is estimated that over #**7*** 4atents created the modern automobile' 0o2ever7 2e can 4oint to the many firsts that occurred along the 2ay' Starting 2ith the first theoretical 4lans for a motor vehicle that had been dra2n u4 by both 3eonardo da !inci and Isaac Fe2ton'

In #C$E7 the very first self<4ro4elled road vehicle 2as a military tractor invented by French engineer and mechanic7 Ficolas :ose4h Cugnot "#C)L < #H*5%' Cugnot used a steam engine to 4o2er his vehicle7 built under his instructions at the Paris /rsenal by mechanic re?in' It 2as used by the French /rmy to haul artillery at a 2ho44ing s4eed

of ) #J) m4h on only three 2heels' 6he vehicle had to sto4 every ten to fifteen minutes to build u4 steam 4o2er' 6he steam engine and boiler 2ere se4arate from the rest of the vehicle and 4laced in the front "see engraving above%' 6he follo2ing year "#CC*%7 Cugnot built a steam<4o2ered tricycle that carried four 4assengers'

In #CC#7 Cugnot drove one of his road vehicles into a stone 2all7 making Cugnot the first 4erson to get into a motor vehicle accident' 6his 2as the beginning of bad luck for the inventor' /fter one of CugnotDs 4atrons died and the other 2as e.iled7 the money for CugnotDs road vehicle e.4eriments ended'

27

Steam engines 4o2ered cars by burning fuel that heated 2ater in a boiler7 creating steam that e.4anded and 4ushed 4istons that turned the crankshaft7 2hich then turned the 2heels' 8uring the early history of self<4ro4elled vehicles < both road and rail vehicles 2ere being develo4ed 2ith steam engines' "Cugnot also designed t2o steam locomotives 2ith engines that never 2orked 2ell'% Steam engines added so much 2eight to a vehicle that they 4roved a 4oor design for road vehiclesK ho2ever7 steam engines 2ere very successfully used in locomotives' 0istorians7 2ho acce4t that early steam< 4o2ered road vehicles 2ere automobiles7 feel that Nico&a" Cug ot )a" the i ve tor o( the (ir"t automo#i&e' 6he automotive industry has certain trends it has to follo27 just like fashion designers and musical com4osers' In times of recession and decreasing sales there is less room to take chances and manufacturer are 4rone to follo2 the common 4attern as a safer bet rather than releasing a controversial 4roduct or idea that might or might not be successful' 0o2ever throughout the automotive industryDs history7 great innovators have Iboldly gone 2here no man has gone beforeI to set ne2 trends 2hich have dynamically altered the industry as a 2hole'

28

3.1.1 >ro)th a ! <a !mar:" o( automo#i&e i !u"try i I !ia 2 6he automobile industry7 one of the core sectors7 has undergone metamor4hosis 2ith the advent of ne2 business and manufacturing 4ractices in the light of liberali?ation and globali?ation' 6he sector seems to be o4timistic of 4osting strong sales in the ne.t cou4le of years in vie2 of a reasonable surge in demand' 6he Indian automobile market is gearing to2ards having international standards to meet the needs of the global automobile giants and become a global hub' Players are

strategi?ing to consolidate their 4osition and gradually increase market 4enetration 2ith the launch of ne2 models7 targeting different segments' Since the sector is 4rice driven7 huge investment is envisaged to remain com4etitive through cost advantage7 for 2hich indigeni?ation is highly im4ortant' 6he 4roduct becomes dearer if it is manufactured using im4orted 4arts' I6 in the automobile sector 4lays a crucial role'' Some 4layers are 2orking to2ards develo4ment of efficient 4roduction systems that control the entire 4roduction 4rocess 2ith high 4recision and accuracy' Such systems 2orking on real time o4erating systems allo2 efficient control of different 4arts of manufacturing and 4roduction' It is essential to leverage skills of different engineering disci4lines to build these kinds of integrated systems' /nalysts foresee high sco4e in the electronics for auto sector and e.4ect the retailing of such electronics 4roducts to contribute a major chunk of future revenues' 6he government is increasing the research and develo4ment "1&8% fund for the automobile industry over and above the 1s #5** crores earmarked for eight years' /ll laboratories in the country researching on automobile technology7 such as 0-3 2hich is develo4ing cell technology as alternative fuel7 have also been brought together through the setting u4 of a national 1 & 8 2orking grou4' 6he grou4 is 2orking out a 4lan to link all major laboratories across the country to give a thrust to automotive research'

29

Indian automobile sector being a driver of 4roduct and 4rocess technologies7 and has become a e.cellent manufacturing base for global 4layers7 because of its high machine tool ca4abilities7 e.tremely ca4able com4onent industry7 most of the ra2 material locally 4roduced7 lo2 cost manufacturing base and highly skilled man4o2er Fot only a large number of 2orld manufacturers have set u4 4roduction bases in India but also a large number of foreign com4anies are collaborating 2ith the auto com4onent su44liers and vendors' Indian /utomobile Com4onents Industry has been making ra4id strides to2ards achievement of 2orld<class Ouality Systems by imbibing ISO E***JOS E*** Ouality Systems 2hereby the Indian /utomotive industry has become more com4etitive in the e.4ort market due to its technological and Auality advances7 so much so that in Auality conscious markets such as -uro4e and /merica7 it is emerging as a major 4layer7 based on its 4erformance' India today e.4orts> -ngine and engine 4arts7 electrical 4arts7 drive transmission & steering 4ats7 sus4ension & braking 4arts among others' 6he sector is striding inroads into the rural middle class after its inroads into the urban markets and rural rich' It is trying to bring in varying 4roducts to suit reAuirements of different class segments of customers' States like 1ajasthan7 Uttar Pradesh7 Maharashtra7 /ndhra Pradesh and Best engal are

vying to 2oo global 4layers 2ith 4ro4osals including heavy ta. e.em4tions and to create a more investor friendly regime7 each state is 4ro4osing to 4rovide all regulatory clearances at e.4ress s4eed' 6he &overnment should 4romote 1esearch & 8evelo4ment in automotive industry by strengthening the efforts of industry in this direction by 4roviding suitable fiscal and financial incentives'

30

6he current 4olicy allo2s Beighted 6a. 8eduction under I'6' /ct7 #E$# for s4onsored research and in<house 1&8 e.4enditure' 6his 2ill be im4roved further for research and develo4ment activities of vehicle and com4onent manufacturers from the current level of #)LM' In addition7 !ehicle manufacturers 2ill also be considered for a rebate on the a44licable e.cise duty for every #M of the gross turnover of the com4any e.4ended during the year on 1esearch and 8evelo4ment carried either in<house under a distinct dedicated entity7 faculty or division 2ithin the com4any assessed as com4etent and Aualified for the 4ur4ose or in any other 1&8 institution in the country' 6his 2ould include 1 & 8 leading to ado4tion of lo2 emission technologies and energy saving devices' &overnment 2ill encourage setting u4 of inde4endent auto design firms by 4roviding them ta. breaks7 concessional duty on 4lantJeAui4ment im4orts and granting automatic a44roval /llocations to automotive cess fund created for 1&8 of automotive industry shall be increased and the sco4e of activities covered under it enlarged'

31

3.1.2 Structure o( I !ia automo#i&e "ector a ! "ome (act"2

Structure2

N 6he Indian automobile industry can be broadly classified into> N ) J, Bheelers N Passenger Cars N Commercial !ehicles "3C!J0C!JMC!% N U! "Utility vehicles% N 6ractors

N 6he models in the car market can be fitted to different segments as given belo2>

Category N -conomy segment N Mid<si?e segment N 3u.ury car segment N Su4er lu.ury segment

8o!e&" N Maruti Omni7 Maruti H** etc' N Fiat Uno7 0yundai Santro7 6ata N 6ata Indigo7 0onda City7 /stra7 0yundai /ccent & others N Mercedes en? & other im4orted

32

N 6he economy segment has a very large foothold over the Indian automobile market as com4ared to the mid<si?e and lu.ury segment' N N N Segme t -conomy Mid<si?e and lu.ury N 8ar:et Share ?@A N E*') N E'H

N Source> SI/MJ /uto Car India

Increased urbani?ation7 lo2 4ricing 4olicies7 im4rovement in 4roducts and technology have fuelled demand for 5<2heelers' 6he markets are clearly segmented bet2een economy models and 4remium models' 6he easy availability of finance and increased levels of dis4osable incomes has led to higher demand for 4remium models' 1ural areas have also become an e.citing market to cater to' 6he gro2th of the economy has also resulted in a shift in consumer 4references in each of the segment' &radual shift can be seen in buyers from mo4eds to economy scooters7 from economy scooters to 4remium and from 4remium to motorcycles'

6he 4assenger car segment has seen ra4id gro2th on the back of rise in dis4osable

income7 increased availability of consumer finance7 and reduction in e.cise and customs duties' Post<#EE#7 this segment has seen ma.imum foreign investment' 6here is a clear segmentation of 4assenger cars based on 4rice and si?e' Bhile the lo2er and medium range cars "Maruti7 Ford7 Cielo% have been moderately successful7 lu.ury cars such as Mercedes have found the going tough'

33

N 6he C! segment is directly linked to industrial 4roduction and foreign trade and is therefore subject to cyclical fluctuations of the economy' 6he demand for C!s is related to gro2th in movement of goods trans4orted and freight rate levels7 both of 2hich are linked to level of 4roduction' N 8emand for utility vehicles and tractors come from rural India' 6hese vehicles have 2itnessed steady demand gro2th over the 4ast fe2 years due to successive monsoons7 better 4rocurement 4rices7 im4roved irrigation facilities7 and availability of finance' N / strong in<house 1&8 ca4ability allo2s a manufacturer to develo4 and introduce 4roducts at lo2er 4rices7 thus saving costs of im4orting technology' 0o2ever7 Indian com4anies s4end very little on 1&8' N /vailability of Auality com4onents is another factor that determines smooth 4roduction 2ithout bottlenecks' 0igh rejection rate of auto com4onents has 4rom4ted several global majors like Ford7 to get their international su44liers

34

3.1.3 The <a !mar: o( I !ia automo#i&e "ector2

1B2CD 6he first im4orted car 2as seen on Indian roads 1B42D 0industan Motors incor4orated 1B44D Premier automobiles started 1B4CD First car manufactured in India 1B53D 6he &overnment of India decreed that only those firms 2hich have a manufacturing 4rogram should be allo2ed to o4erate 1B55D Only seven firms7 namely7 0industan Motors 3imited7 /utomobile Products of India 3imited7 /shok 3eyland 3imited7 Standard Motors Products of India 3imited' Premier /utomobiles 3imited 7 Mahindra & Mahindra and

6-3CO received a44roval' 1B6E D 1B7E D 6he t2o7 three 2heeler industries established a foothold in the Indian scenario' 1B7E D 1BCE D Fot much change 2as 2itnessed during this 4eriod' 6he major factors affecting the industry 2ere the im4lementation of the M16P /ct "Mono4olies and 1estrictive 6rade Practices /ct%7 F-1/ "Foreign -.change 1egulation /ct% and the Oil Shock of #EC, and #ECE' 1BCE D 1BBE D 6he first 4hase of liberali?ation 2as announced by the &ovt' <Bith the liberali?ation of the &overnmentDs 4rotectionist 4olicies7 the advantages hitherto enjoyed by the Indian car manufacturers like mono4oly7 oligo4oly7 slo2ly began to disa44ear'

35

1BB1 D Under the &ovt'Ds ne2 Fational Industrial Policy7 the license raj 2as dis4ensed 2ith7 and the automobile industries 2ere allo2ed to e.4and freely' 1BB3 D Bith the 2inds of liberali?ation s2ee4ing the Indian car market7 many

multinationals like 8ae2oo7 Peugeot7 general Motors7 Mercedes< en? and Fiat came into the Indian car market' 1BB7 D 6he Fational 0igh2ay Policy 2as announced 2hich 2ill ho4efully have a 4ositive im4act on the automobile industry' 6he &overnment also laid do2n the emission standards to be met by car manufacturers in India in the coming millennium' 6here 2ere t2o successively stringent emission levels to be met by /4ril )*** and /4ril )**L7 res4ectively' 6hese norms 2ere benchmarked on the basis of those already ado4ted in -uro4e7 hence the names -uro I "eAuivalent to India )***% and the Indian eAuivalent of -uro II' 1BBB D 6he 0on;ble Su4reme Court 4assed an order directing all car manufacturers to com4ly 2ith -uro I emission norms "India )*** norms% by the #st of May7 #EEE in Fational Ca4ital 1egion"FC1% of 8elhi' 6he deadline 2as later e.tended to #st :une7 #EEE 2EE4 D 6ata Motors becomes the first Indian auto com4any to be listed on the Fe2 (ork Stock -.change 2EECD 6ata Motor becomes the first auto com4any to 4roduce 2orld;s smallest car @ FanoQ'

36

3.1.4 8a$or p&ayer i I !ia automo#i&e "ector2

6hese are the major 4layers in Indian automobile sector> N Maruti Udyog 3td' N 0yundai N Mitsubishi Motors N Mahindra & Mahindra N 6ata Motors

37

Chapter 4
3evie) o( <iterature

1. Fam#it"i" et a&.5 ?2EE2A Celebrity endorsement is a billion dollar industry today 2ith com4anies signing deals 2ith celebrities ho4ing that they can hel4 them stand out from the clutter and give them a uniAue and relevant 4osition in the mind of the consumer' 6he reasons for using celebrity endorsement involve its 4otential to create a2areness7 4ositive feelings to2ards their advertising and brand' /dvertisement featuring celebrity endorsement is often also 4erceived to be entertaining'

2. Pettitt ?2EEEA2 /dvertising is heavily used in 4rocess of 4ersonality creation' 6his follo2 logically from the fact that 4ersonalities are 4articularly im4ortant for brand building' 6hey 4rovide uniAue associations 2ith the brand and these associations; acts as a stimulus for the customer to link their 4ersonality 2ith the brand'

3. Te&&i" ?1BBCA argues that consumers in a high<involvement situation might actually be offended by the use of celebrity to endorse the brand' 0e also suggests that 2hen there seem to be 4erceived high differences among com4eting brands7 the consumer 2ill 4erceive it as a high<involvement situation and 4ut e.tra em4hasis on information about the 4roduct more than being influenced by celebrity endorsers'

38

4' -rei!e ?1BB4A2 0e concluded that celebrities are 4articularly effective s4okes4ersons because they are vie2ed as highly trust2orthy7 believable7 4ersuasive7 and likeable' / credible s4okes4erson is7 other things being eAual7 more effective than a less credible s4okes4erson'

5. Shimp ?2EE7A2 / recent estimate indicates that almost )* 4ercent of all advertisements 2orld2ide use celebrity s4okes4ersons' 6he general belief among advertisers is that messages delivered by celebrities 4rovide a higher degree of a44eal7 attention7 and 4ossibly message recall than those delivered by non<celebrities' Marketers also claim that celebrities affect the credibility of the claims made7 increase the memorability of the message7 and may 4rovide a 4ositive effect that could be generali?ed to the brand'

Chapter 5

39

Stati"tica& 3epre"e tatio a ! I terpretatio " 1. =ccupatio o( re"po !e t2 Occu4ation usiness Class Service Class Student Others Percentage 25 25 3E 2E

I terpretatio 2 From this 4ie<chart it is clear that majority of the res4ondents are students and rest of the share is occu4ied by service and business class'

2. +ge o( the re"po !e t2

40

/ge #H<)L )$<,) ,,<,E /bove 5*

Percentage M ,* )* ,* )*

I terpretatio 2

6his 4ie<chart de4icts that mostly res4ondents are young and 2hile rest are above )L years'

41

3.>e !er o( the re"po !e t2

&ender Female Male

Percentage M $L ,L

I terpretatio 2

6his 4ie<chart de4icts that $LM of the res4ondents are female and ,LM are males'

42

4. Type o( 9ehic&e2

!ehicle 62o<2heeler Four<2heeler oth

Percentage M 5L ,L )*

I terpretatio 2

6his 4ie<chart de4icts that 5LM of the 4eo4le have t2o<2heeler and ,LM of the 4eo4le have four< 2heeler and rest )*M have both t2o<2heeler and four<2heeler'

43

5. -actor" a((ecti g purcha"e i te tio 2

Factor

Percentage M
20 15 35 30

Price =pi io D&ea!er Ce&e#rity e !or"er *ra ! ame

I terpretatio 2

6his 4ie<chart de4icts that ,LM of the 4eo4le consider celebrity endorser 2hile going for the 4urchase7 follo2ed by brand name<2ith ,*M'7o4inion leader #LM and )*M 4eo4le consider 4rice' rand name usually covers all as4ects like functional as4ects vi?' mileage7 s4eed etc' /s 4eo4le usually are more interested to2ards 2ell kno2n brands and if these brands are advertised by famous celebrity it creates an huge im4act'

44

6. <i:e to "ee a y ce&e#rity e !or"i g your #ra !2

Preference (es Fo CanDt say

Percentage M LL )L )*

I terpretatio 2

6his 4ie<chart clearly indicates that LLM of the res4ondents 2ant their 4roducts to be advertised by celebrities7 )LM don;t 2ant and )*M of the res4ondents 2eren;t sure' So7 this clearly sho2s ho2 much im4ortant these celebrities are in the daily life of common man'

45

7.8a&e v;" -ema&e ce&e#rity e !or"er2

Preference Male Female

Strongly /gree )L L

/gree *L #L

Indifferent #* #*

8isagree L #*

Strongly 8isagree #* L

I terpretatio >

It is confirmed after the analysis that male celebrity endorser are more effective than that of female celebrity'

C. Ce&e#rity e !or"er a" a e((ective metho! o( per"ua"io 2

46

Pre(ere ce Strongly /gree /gree Indifferent 8isagree Strongly 8isagree

Percentage M 5L #L #* )* #*

I terpretatio 2

6his chart de4icts that mostly 4eo4le agree that Celebrity endorsement is an effective tool of 4ersuasion' 5LM of 4eo4le strongly agree that celebrity endorsement is an effective tool of 4ersuasion and )*M of 4eo4le disagree that it is one of the tool' 0ence it can be concluded that celebrity endorsement is an effective tool of 4ersuasion to facilitate customer to go for 4urchase'

47

B.Ce&e#rity e !or"eme t a((ect" my purcha"e !eci"io )hi&e goi g (or the purcha"e o( automo#i&e pro!uct".

Pre(ere ce Strongly /gree /gree Indifferent 8isagree Strongly 8isagree

Percentage M ,* #L #* ,L #*

I terpretatio 2 6his chart de4icts that 5LM of the 4eo4le agree strongly or sim4ly on the fact that their automobile 4urchase is being affected by celebrity endorsement7#* M of the 4eo4le remain indifferent and 5LM of the 4eo4le disagree 2ith this fact'

48

1E. Ce&e#rity per"o a you &i:e mo"t2

Ce&e#rity per"o a *o&&y)oo! "tar" Sport" "tar No e o( the a#ove

Percentage M 55 25 2E

I terpretatio 2 6his 4ie<chart de4icts that majority of 4eo4le like to see bolly2ood stars to endorse their brands and )LM of them s4orts star' Bhile remaining )* M don;t 2ant to any celebrity endorsing their brand' 0ence it can be concluded that 4eo4le like to see s4orts stars endorsing their 4roducts rather than bolly2ood stars'

11. Gou (o&&o) your (avorite ce&e#rity )hi&e purcha"i g e) automo#i&e every time2

1es4onse -very time 1arely Fever

Percentage M 5* )L ,L

I terpretatio 2

6his 4ie<chart de4icts that 5*M of 4eo4le follo2 their favorite celebrity every times 2hile going for the 4urchase of ne2 automobiles' 6hat means freAuency is 4retty large' On the other hand )LM of the 4eo4le rarely follo2 their favorite celebrity' Bhile ,LM of the 4eo4le doesn;t follo2 any celebrity for 4urchasing any of the automobile vehicle every time'

12. I!e ti(y the (o&&o)i g a!" regar!i g variou" automo#i&e pro!uct"2

#' @More Car 4er carRRRRRRRQ )' @6he sun<shine car RRRRRR'Q ,' @Bhy should boy have all the fun=RRRRRRR''Q 5' Fone

O4tion # ) , 5

Percentage #L )* 5* #L

I terpretatio 2 Out of #** res4ondents7 5* 2ere able to identify the celebrity in ad , 7 )* 2ere able to

identify ad )7 #L 2ere able to identify # and #L 4eo4le 2ere there 2ho 2eren;t able to identify even a single celebrity' Majority of the res4ondent 2ere Auite familiar 2ith Priyanka Cho4ra;s @Bhy should boy have all the fun=Q So majority of the res4ondents 2ere able to recogni?e the celebrity used in the advertisement so it clearly tells that celebrity endorsement act as source of brand<building'

-i !i g"2

/fter com4leting survey I found that> rand name and celebrity endorser are t2o factors that 4eo4le consider before making a 4urchase intention of automobile vehicle' Ma.imum number of 4eo4le 2ants to see celebrity endorsing their automobile vehicles that means they have high involvement 2ith the celebrities' One of the abstract finding of the survey 2as regarding 4eo4le;s orientation to2ards gender biasness' 6his finding clearly indicated that 4eo4le like to see male celebrities endorsing automobiles than that of female celebrities' Most no' of 4eo4le believe that celebrity endorsement is an effective mean of 4ersuasion i'e' it convey the message clearly to the target audience regarding 4roduct offerings and 4ersuade them to go for the 4urchase' It 2as found that celebrity endorsement have an im4act over the 4urchase of automobile 4roducts' /s large no' of 4eo4le surveyed confirmed this fact' In country like India 2ere Cricket is a religion and cricketers are 2orshi4ed as &od' One of the finding revealed that 4eo4le admire s4orts 4layer as better celebrity 4ersona than that of bolly2ood actorJactress' It 2as found that 2hile making every ne2 4urchase of an automobile most no' of 4eo4le follo2 celebrity endorser 2hile rest of them denied this fact' 6he results of brand recall 2ere astonishing most no' of 4eo4le 2ere able to recogni?e the celebrities endorsing the given advertisement' So it sho2ed that celebrity endorsement is a source of celebrity endorsement'

Chapter 6
6.1 Summary2 Celebrity endorsement is a method em4loyed by marketers as a 4romotional tool so that 4eo4le can associate themselves 2ith the 4roduct as they associate themselves 2ith the celebrity endorser' Com4anies s4end huge amount of money to ro4e in such celebrities so as to endorse their brands' 6hey generally determine their effectiveness by measuring 1OI' 3ot of studies conducted on celebrity endorsement but no one clearly indicated 2hether it can act as a source of brand<building' So a research 2as conducted on this 4articular as4ect' It 2asn;t 4ossible to concentrate this study on the entire sectors so automobile sector 2as selected' Primary data 2as collected through structured Auestionnaire' Secondary sources 2ere also used in the beginning so as to gain an insight of the 4roblem' /fter carrying it 2as found that male celebrities are better than that of female celebrities' Peo4le love to see s4orts4erson endorsing automobile than that of bolly2ood stars' It 2as found that celebrity endorser affects 4eo4le intention regarding 4urchase of the automobile and celebrity endorsement acts as a source of brand<building'

6.2 Co c&u"io 2 8es4ite the obvious economic advantage of using relatively kno2n 4ersonalities as endorsers in advertising cam4aigns7 the choice of celebrities to fulfill that role has become common 4ractice for brands com4eting in todayDs cluttered media environment' 6here are several reasons for such e.tensive use of celebrities' ecause of their high 4rofile7

celebrities may hel4 advertisements stand out from the surrounding clutter7 thus im4roving their communicative ability' / brief assessment of the current market situation indicates that celebrity endorsement advertising strategies can7 under the right circumstances7 indeed justify the high costs associated 2ith this form of advertising' ut it 2ould be 4resum4tuous to consider celebrity endorsement as a 4anacea for all barricades' Celebrity endorsement if used effectively7 makes the brand stand out7 galvani?es brand recall and facilitates instant a2areness' 6o achieve this7 the marketer needs to be really disci4lined in choice of a celebrity' 0ence the right use of celebrity can escalate the UniAue Selling Pro4osition i'e' it can act as a source of brand<building of a brand to ne2 heightsK but a cursory orientation of a celebrity 2ith a brand may 4rove to be claustro4hobic for the brand' It 2as found that 4eo4le love to see celebrities endorsing their brands so the involvement of common man is 4retty high 2ith these celebrities' So marketers should use the right celebrity matching 2ith the 4roduct' 8uring survey it 2as found that male celebrities are considered to be better celebrity endorser than that of their female counter4arts' 6his is because lots of research regarding consumer;s behavior to2ards automobile indicates that 4eo4le vie2 automobile as female so in order to attract the attention of target customers they 4referably use male celebrity endorser' /lso it 2as found that 4eo4le love to see s4orts stars endorsing their automobile than bolly2ood stars'

6his is because of the fact in India Cricket is very famous and 4eo4le 2orshi4 4layers like Sachin 6endulkar7 9a4il 8ev7 Sourav &anguly etc' So they love to see these 4layers endorsing their automobiles' /t last I just 2ant to say / celebrity is a means to an end7 and not an end in himJher'

6.3 <imitatio 2 6here are follo2ing constraints of the study 2hich can be e.4lained as>< 6he time of research 2as short due to 2hich many fact has been left untouched 6he /rea undertaken in research in limited only' ut to do a com4lete research a

2ide area is reAuired7 so the area is also a constraint of the study' Sam4le for the study taken is of only #** consumers' Bhich can also act as a constraint in the study' Bhile collecting data some of the res4ondents are not 2illing to fill the Auestionnaire7 so they might not fill their true behavior' 6his can also be a constraint of the study'

6.4 3ecomme !atio ">

/fter studying im4act of celebrity endorsement on buying behavior of customers in automobile sector and as a source of brand<building I 2ant to suggest follo2ing recommendations> From study it 2as found that res4ondents 2ere able to recogni?e the Priyanka Cho4ra;s advertisement @Bhy should boys have all the funQ 6his advertisement 2as designed on such an idea that everyone can recogni?e the brand of Scotty Pe44 easily' So instead of hiring any celebrity com4anies should try to create such nice innovative idea and then match the suitability of celebrity 2ith the idea' 6his is also su44orted by the fact that 6oday;s era is of &en S their taste changes very fast and 2ants fresh material'

6his study reveals that celebrity endorsement act as a source of brand<building but it isn;t the com4lete solution' Com4any can;t rely only on celebrity endorsement to sell their 4roducts but they should follo2 an integrative a44roach so as to generate good sales volumes' 6hey should 4rovide more schemes to their customers in order to sell their 4roducts'

 One of the im4ortant recommendations that I 2ant to give is that during this slo2do2n 4eriod com4anies are cutting their advertisement e.4enditure but they shouldn;t do this' 6his is because this slo2do2n 4rovide them an o44ortunity to differentiate themselves from their com4etitors' 6his is also su44orted by the researches' One of the research e.4lained that during #E$*;s recessions )E* global com4anies increased their advertisement e.4enditure and their sales increased by 2ho44ing ,**M' Some of the com4anies are 2ell established brand name todays like I M7 Microsoft7 ,M etc'

Chapter 7

*i#&iography2 HE*SITES2
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http //www.hindu#tantime#.c!m/'t!r$(age/'t!r$(age.a#p)*#ecti!n+ame,-id,acf176cd-6f53-42%6-a47%72e34341cfe1--.eadline http //www.%u#ine##week.c!m/inn!&ate/c!ntent/fe%2008/id20080227"377233"pa ge"2.htm http //www.telegraphindia.c!m/1081007//#p/!pini!n/#t!r$"9933949./#p