nidhi suyal,88

8/6/2019 nidhi suyal,88

1/80

1

PROJECT REPORT ON

IMPACT OF CELEBRITY

ENDORSEMENT ON

CONSUMER PERCEPTION

WITH RESPECT TO LUX &

DOVE; PARLE-G &

SUNFEAST BISCUIT,

SUBMITTED BY:

NIDHI SUYAL

ROLL NO: 88

MARKETING-M1


2/80

2

TO WHOMSOEVER IT MAY

CONCEREN

This is to certify that the project report titled IMPACT OF CELEBRATY

ENDORSEMENT ON CONSUMER PERCEPTION WITH RESPECT TO

LUX & DOVE; PARLE-G & SUNFEAST BISCUIT carried out byMs.Nidhi Suyal, D/o Sh. G.C.Suyal has been accomplished under my

guidance & supervision as a duly registered PGDM student of the NEW

DELHI INSTITUTE OF MANAGEMENT, NEW DELHI. This project is being

submitted by her in the partial fulfilment of the requirements for the award of

the PGDM from NEW DELHI INSTITUTE OF MANAGEMENT.

Her dissertation represents her original work and is worthy of

consideration for the award of the degree of PGDM.

___________________________________

(Name & Signature of the Faculty Advisor)

Title:______________________________

Date:


3/80

3

DECLARATION

I, NIDHI SUYAL declare that this project report titled

IMPACT OF CELEBRATY ENDORSEMENT ON CONSUMERPERCEPTION, WITH RESPECT TO LUX & DOVE; & PARLE-G

& SUNFEAST has been carried out by me under the able

guidance of Dr. GAJENDRA SHARMA and it is my original

work as part of my academic course.

NIDHI SUYAL

ROLL NO: 88

SECTION-M1


4/80

4

ACKNOLEDGMENT

The completion of this project would not have been possible without the

help of all the faculty members of the NEW DELHI INSTITUTE OF

MANAGEMENT. I take this opportunity to convey my hearty thanks to all of

them.

At the onset I would like to thanks Dr.A.T.K.RAMAN (DIRECTOR,NDIM.)

and Ms. BHUMIKA BANSAL (DIRECTOR GENERAL,NDIM), for giving me

an opportunity to work on this project under the able guidance of

Dr.GAJENDRA SHARMA.

I thank my project guide Dr. GAJENDRA SHARMA, for the level of interest

that he took in my project. He was the person who actually has given my

project the present shape, his advice, comments, and criticisms on my work

has helped me in rectifying many of the flaws and defects in my work. He

gave me enough time even in his busy schedule and my discussions with

him on several aspects of marketing have helped me in broadening my

knowledge.

I also thank Ms. MEGHA CHAWLA, Ms. ANITA SAXENA, Ms. VEENA

KUMAR and Mr. VINEET VISHNU for their initial directions.

I once again thank all members of NDIM team & students of NDIM for their

cooperation.


5/80

5

TABLE OF CONTENT

CONTENT PAGE NO

1.Executive summary 06

2.CHAPTER 1 09

y INTRODUCTION 10

y SYNOPSIS 13

y DEFINITION OF CELEBRITY 14

y ATTRIBUTES OF CELEBRITY 16

y NEED FOR CELEBRITY ENDORSEMENT 18y CELEBRITY EDGE 19

y SCOPE OF CELEBRITY ENDORSEMENT 20

y CELEBRITY ENDORSEMENT IN INDIA 23

3.CHAPTER 2 25

y LITERATURE REVIEW 26

4.CHAPTER 3 33

y OBLECTIVE OF THE STUDY 34y RESEARCH METHODOLOGY 34

5.CHPTER 4 38

y TIOLET SOAP INDUSTRY 39

y LUX TOILET SOAP 41

y DOVE TOILET SOAP 43

y BISCUIT INDUSTRY 46

yPARLE-G BISCUIT 47

y SUNFEAST BISCUIT 49

6.CHAPTER 5 52

y FINDING AND ANALYSIS 53

y TOILET SOAP ANALYSIS 53

y BISCUIT ANALYSIS 59


6/80

6

7.CHAPTER 6 66

y SUMMARY 67

y CONCLUSION 68

y LIMITATION 70

y RECOMMENDATION 718.CHAPTER 7 72

y ANNEXURE 73

y BIBLIOGRAPHY 73

y QUESTIONNAIRE 74


7/80

7

EXECUTIVE SUMMARY

India is a country where people love to live in dreams. They worship

celebrities. Celebrities may be Cricket stars like Sachin Tendulkar, Mahinder

Singh Dhoni or Film Stars like Salman Khan, John Ebrahim. They treat them

as God. Marketers use this very preposition so as to influence their target

customers, may be existing 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. But does this celebrity endorsement acts as

a source of brand-building and have impact over the purchasing behaviour of

customers in case of FMCG? For this I decided to conduct these vary

research and objectives of my research are:

To identify the influence of celebrity endorsement on consumer perception.

To study celebrity endorsement as a source of brand-building.

To find which type of celebrity persona is more effective.

Lot of researchers has done extensive research work regarding celebrity

endorsement, its influence over customers purchasing decisions. After

studying the whole literature related to celebrity endorsement I found a gap in

the study. This gap was whether celebrity endorsement acts as a source of

brand-building. So I decided to undertake research on this particular aspect.

This research is limited to Delhi Region only due to various constraints like

time available, scarcity of resources etc. From this we can make an attempt

to generalize the result to the whole universe. After conducting research it

was found that brand name and celebrity endorserare the two key factors

that play an important role in affecting purchase intention. Majority of the


8/80

8

people want to see their favourite celebrity endorsing their brands but they

also tend to buy intelligently considering the brand and its quality .

To carry out my research I used Chi square test and came to a conclusion

that though celebrity endorsement plays an important role but yet brand

name and some other factors are also equally important .

People love to see bollywood and TV stars endorsing FMCG than that of

sports stars. This particular aspect is mainly supported by the fact that in

India where bollywood stars is the ideal of so many Indian consumers, and

also TV stars are becoming equally popular amongst Indian consumer after

popular shows like kyuki saas bhi kabhi bahu thi.

Another important fact which came into existence was majority of people

follow their favourite celebrity while making a new purchase every time.

Beside this, one major factor come into existence that mostly respondents

were able to recognize the celebrity used in various advertisement. So in this

brand recall test, mostly positive results were found. One open-ended

question was also included about suggestion. Instead of wasting a huge

amount of money on celebrity endorsement, Companies should come out

with some schemes so as to lure their customers. So it can be concluded that

for a small extent Celebrity endorsement acts as a source o f brand-

building but company should follow integrative approach so as to build

strong brands. Beside celebrity endorsement they should run certain

schemes so as to provide value to the customer and to build strong brand.


9/80

9

Chapter-1


10/80

10

1.1 INTRODUCTION

The modern world of marketing communication has become colorful and inundated

with advertisements, and it is hard to get noticed. It is an uphill task for the designer of

an advertising campaign to differentiate itself from others and attract viewers

attention.

Everyday consumers are exposed to thousands of voices and images in magazines,

newspapers, and on billboards, websites, radio and television. Every brand attempts to

steal at least a fraction of an unsuspecting persons time to inform him or 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 subjects attention.

In this jet 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 plethora 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.

Companies invest large sums of money to align their brands and themselves with

endorsers. Such endorsers are seen as dynamic with both attractive and likeable


11/80


12/80

12

Upfront, this seems like a very effective weapon in mature and saturated

markets, which differentiates products from those of the competitors by

clearing the clutter and reaching the consumer. But is the impact of

the celebrity endorsement so significant, or are the

celebrities themselves adding to the clutter?

Through this paper we primarily try to evaluate the impact of any celebrity

endorsement campaign on the consumer perception by analyzing it through a

research work done on consumer behavior through on open interview of

consumer, consisting of - brand, consumer and the celebrity.

If the world were full of all wise men and all wise women; we would

have never heard of a term called advertisement. And then good

products would have found the right customers and grown to

prosperity. Firms would have worked out a mathematical formula to sell

and succeed. But the buying process isnt rational; and so is this world.

Indians are die-hard movie and sport buffs; and this aspect of the consumers

has invited the concept of Celebrity Endorsement to the world of

advertisement. The purpose of this paper is to analyze the role of Celebrity

Endorsement in the process of consumer behavior with respect to their

perception towards a particular brand and its celebrity endorser by taking

appropriate examples from the advertising landscape.


13/80

13

1.2 SYNOPSIS

Successful branding programs are based on the concept of singularity. The

objective is to create in the mind of the prospect the perception that there is no

other product on the market quite like your product.

- Al Ries & Laura Ries

Indian advertising started with the hawkers who used to call out their wares

right from the days when cities and markets first began. With this evolved a

strategy that tried to benefit from the emotional att achment of the admirers or

the fans of the celebrities; in the form of celebrity endorsement.

This paper tries to understand the process of consumer psychology and

impact of celebrity endorsement on the overall process of consumer

[perception. Any thoughtless adventure with the investment on celebrity and

the brand association with the celebrity can be like the Sword of Damocles.

If youre trying to persuade people to do something, or buy something, it

seems to me you should use their language, the language in which they

think.

- David Ogilvy


14/80

14

This paper rifles through the concept of celebrity endorsement and provides

insights on what it is and how the increasing number of endorsements, throw

a valid question to the consumers.

The general belief among advertisers is that brand communication mes sages

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 todays highly competitive

environment.

Celebrities have also been in demand having succeeded in being effective by

rising above the clutter & grabbing the attention and focus of the consumer.

They also succeed in creating an aspiration in the minds of the consumer to

acquire what their favorite celebrity endorses.

1.3 DEFINITION OF CELEBRITIES

Celebrities are people who enjoy specific public recognition by a large

number of certain groups of people. They have some characteristic attributes

like attractiveness, extraordinary lifestyle or special skills that are not

commonly observed. Thus, it can be said that within a society, celebrities

generally differ from the common people and enjoy a high degree of public

awareness.

According to Friedman and Friedman, a celebrity endorser is an individual

who is known by the public for his or her achievements in areas other than

that of the product class endorsed. Compared to other endorser types,

famous people always attach a greater degree of attention, recall and loyalty.


15/80

15

According to Melissa St. James, a doctoral fellow and marketing instructor

at The George Washington University, Studies show that using celebrities

can increase consumers awareness of the ad, capture [their] attention and

make ads more memorable.

In this age of intense competition, where capturing a position in the

consumers mind space is extremely tough, celebrity endorsements give an

extra edge to the companies for holding the viewers attention. Celebrities

can catalyze brand acceptance and provide the enormous momentum that

brands require by endorsing the intrinsic value to the brand through changing

consumer perception with respect to the product because of celebrity and

brand personality.

The term Celebrity refers to an individual who is known to the public (actor,

sports figure, entertainer, etc.) for his or her achievements in areas other

than that of the product class endorsed (Friedman and Friedman, 1979).

This is true for classic forms of celebrities. Like,

Actors (e.g., Amitabh Bachchan, Shahrukh Khan, Aishwarya Rai,, Preity

Zinta, Aamir Khan and Pierce Brosnan).

Models (e.g., Mallaika Arora, Milind Soman, Naomi Campbell, etc),

Television Personalities (Husain, Smriti Irani, Sakshi)

Sports figures (e.g., Sachin Tendulkar, Sania Mirza, Anna Kournikova,

Michael Schumacher, Tiger Woods, etc),

Entertainers (e.g., Cyrus Broacha, Oprah Winfrey,),


16/80

16

And pop-stars (e.g., Madonna, Shakira).

But also for less obvious groups like businessmen (e.g., Vijay Mallya, Bill

Gates) orpoliticians celebrities appear in public in different ways. First, they

appear in public when fulfilling their profession, e.g., Vishwanathan Anand,

who plays chess in front of an audience. Furthermore, celebrities appear in

public by attending special celebrity events, e.g., award ceremonies,

inaugurations or world premieres of movies. In addition, they are present in

news, fashion magazines, and tabloids, which provide second source

information on events and the private life of celebrities through mass-media

channels (e.g., Smriti Irani being regularly featured in various publications).

Last but not least, celebrities act as spokes-people in advertising to promote

products and services, which is referred to celebrity endorsement.

1.4 IMPORTANT CELEBRITY ATTRIBUTES

While selecting a celebrity as endorser, the company has to decide the

promotional objective of the brand and how far the celebrity image matches

with it. The selection is in fact a collaboration, from which both the company

and the celebrity gains.

The most important attribute for a celebrity endorser is the trustworthiness.

The target audience must trust that a celebrity carries a particular image and

it must match with the product.

The second attribute in order of importance is likeability. The celebrity also

must be accepted as a popular icon by a large cross section of the audience.


17/80

17

Similarity between the target audience and the celebrity is the third

important attribute. A person well -known in a society can have greater impact

than a celebrity of a different world. If the endorser and receiver have similar

needs, goals, interests and lifestyles, the position advocated by the brand

communication is better understood and received. Similarity is also used to

create a situation where the consumer feels empathy for the person shown in

the commercial. The bond of similarity between the endorser and the receiver

increases the level of persuasiveness.

Apart from that, expertise is also believed to be another important attribute.

Definition ofCelebrity Endorsement

According to Friedman & Friedman, a celebrity endorser is an individual

who is known by the public for his or her achievements in areas other than

that of the product class endorsed. So, in the Coco-Cola advertisement;

actor Amir Khan is the celebrity endorser for the product or brand called

Coke, and this process is referred to as Celebrity Endorsement. Celebrities

might endorse as a brand ambassador or a brand face.

Difference between Brand Ambassador & Brand Face

A Brand Ambassador would be one who is not only a spokesperson for the

brand or is just appearing as a testimonial for the brands benefits. He/she is

an integral part of the brand persona and helps to build an emotion, which

goes beyond just appearing on TV commercials.

He takes up the cause of a Brand Champion and is associated with every

aspect related with the brand. What is more, there is a significant difference


18/80

18

between making just an endorsement for say, a shampoo or an automobile,

and being that brands alter ego. Both parties take the latter far more

seriously to the deal. So a brand ambassador would be involved in press

releases, he/she would be actively participating in any sales promotion,

sporting the Brand all the while. For example, Fardeen Khan is the brand

ambassador for Provogue while he remains a brand face for Lux Body Wash.

On the other hand, a Brand Face would be the current celebrity who is just

used as a tool to increase brand recall and is only appearing in the

advertisement. It is usually seen that a brand face is a temporary contract

and is very short term at times. An example would be Sona Chandi

Chawanpryash using Sourav Ganguly for a while in its commercials. Brand

faces are easily forgotten and fades away with the campaigns end

1.6 THE NEED FOR CELEBRITY ENDORSEMENT

The charisma of the celebrities almost always entices people and their words

are worshipped by a lot of people. Their influence also goes on the political

front, where they are invited for political endorsement. Eg. Hema Malini for

B.J.P. , Govinda for Congress , Amitabh Bachchan for S.P..When actor Shah

Rukh Khan endorses Santro-Zip drive; the consumers are made to think that

he is giving his opinion to go for this car. Similarly, actress Rani Muk herjee

has turned the tables for Batas ladies footwear brand called Sundrop as

sales increased by a whopping 500%.

Celebrity endorsements are impelled by virtue ofthe

following motives: -


19/80

19

Instant Brand Awareness and Recall

Celebrity values define, and refresh the brand image

Celebrity adds new dimensions to the brand image

Instant credibility or aspiration PR coverage

Lack of ideas

Convincing clients

1.7 WHY COMPANIES USE CELEBRITIES - THE CELEBRITY

EDGE

Psychological Factors:Celebrities generally satisfy the 'esteem

needs' of an individual. For example a movie actress is expected to

possess a flawless skin and a blemish free face. Her fans want to

know the secret of her beauty, so she becomes a natural endorser for

beauty related products (cosmetics, soaps, powder).

propping Up Awareness and Trust Levels: Rahul dravid -

bob

To Communicate a Certain Message about the

Company:

Sachin Tendulkar as brand ambassador gave it the desired facelift

and image for the launch of 'Victor'

Valuefor Money:


20/80


21/80

21

Actresses Joan Crawford, Clara Bow and Janet Gaynor were among the first

celebrities to promote products (Fox, 1984). At that time, the rationale given

by advertising agencies for using celebrities was the spirit of emulation

(Fox, 1984, p.90). About a decade ago, one in three television commercials

used celebrities endorsements (Business Week, 1978), and today this

advertising approach appeared to be on the increase across all media types

(Sherman, 1985 and Levin, 1988). Friedman (1977) found that celebrities are

featured in 15 percent of the prime-time television commercials. In the United

States, it was reported that about 20% of all television commercials feature a

famous person, and about 10% of the dollars spent on television advertising

are used in celebrity endorsement advertisements (Advertising Age, 1987;

Sherman, 1985). Thus, celebrity endorsement has become a prevalent form

of advertising in United States and elsewhere.


22/80

22

Today, the use of celebrity advertising for companies has become a trend

and a perceived winning formula of corporate image building and product

marketing (Media, July-August 1997). This phenomenon is reflected by the

recent market research findings that 8 out of 10 TV commercials scoring the

highest recall are those with celebrities appearances .

Factors affecting buying behaviour

Price is the most important factor which effects the buying behavior of

consumer, by which a consumer goes for the various segment of soap like

premium, popular, sub-popular and carbolic which are basically decided by

the cost factor and fat content in the soap.

The buying frequency is either monthly that is done by the families or in case

of bachelors it is more than once in a month. The occasions when premium

soaps are purchased are usually when there are festivals and ceremonies.

Moti Soaps are usually presented during festivals and occasions for pres ents

and gifts.

The promotional techniques are used to boost sales. Various tactics like the

price offs, buy one get two free, free gifts and other schemes help boost

sales in short run and also help in clearing stocks.

One of the important points a soap marketer should note is that the soaps

are usually purchased by women in urban areas as most of the day to day

consumption of personal care products are made by women. A point to note

is that women use more personal care product than men do and hence

premium soaps are mostly targeted at them. Men normally make purchase


23/80

23

decisions in rural areas. Hence the marketer has to adopt different strategy

for such a market.

The market shows a seasonal behavior for some brands, i.e. the brands

change as per the customers' need for that particular season. For e.g. in

summer - running brand popular and sub-popular most of the buyer take bath

twice in a day specially in northern belt, in monsoon - running brand

antiseptic and medicated soap, in winter running brand premiu m (moisturizer

and creamy soap).

Buyer

To a large extent, Premium Soap is a price sensitive market. Off late there

has been an increasing trend towards down trading. And this has forced the

manufacturers to lower the prices or offer temporary discounts to woo the

consumers who are either down trading from the popular segment or

graduating upwards from carbolic soaps.

This sector faces low level of brand loyalty. Switching costs is very low and

these results in price war and people are concentrating on value-for-money.

This forces a lot of players to go for frequent promotional schemes like 3 -on-

1, 2-on-1.

Earlier the decision for purchasing the soaps was equally balanced between

man and woman (50:50).

Now the decision ratio is 60:40 in the favor of woman purchaser. This proves

the fact that today most soap is targeted at the Indian woman.


24/80

24

The buyers, even in the rural area are subjected to the media invasion and

are well informed about the basket of products available in the market and

thus take a rational decision.

1.9 Celebrity Endorsement in India

Phase 1: The Pioneering Phase (1950-1980)

this phase was characterized by: -

1. Limited channels of communication

2. Demand exceeded supply

3. Heavy regulation and governmental regulations

some bigger companies from their global experience introduced the concept

of celebrity endorsement. HLL has used Hindi film stars to endorse their

beauty soap Lux since the fifties.

Phase 2: The Growth Phase (1980-1990)

the introduction of television added a variable effective medium of

communication. Indian stars going global with events like Asiads and World

Cup victory. Vimal, Thums-Up, Gwalior and Dinesh are some of the other

brands that used star-appeal in the early days of mass advertising. There

was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure -

cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive Shaving

Cream) and Sunil Gavaskar (Dinesh Suitings).

Phase 3: Globalisation

In highly competitive markets, the following realit ies about brand

management exist:-


25/80

25

1. Product differentiating factors are duplicable and imitable.

2. All long existing and successful brands imbue their products with a

meaning.

Chapter-2


26/80


27/80

27

2. Subhadip Roy (2007):This study raises three questions and attempts

to provide tentative explanations for them. The first two questions relate to

locating, in the consumer's perceptual space, the relative position of Indian

celebrities and brands on a set of personality attributes. The third question

relates to determining the fit between the celebrity and the brands endorsed

by her/him. The results suggest that consumers differentially rank both

celebrities and brands. Specifically, Amitabh Bachchan ranks high on five

personality attributes, and brands such as Pepsi and Coke rank high on four

personality attributes. The study further shows that although celebrities may

endorse several brands, their personality does not fit well with the personality

of the brand they endorse. Evidence offered here supports the basic

assumptions of the celebrityproduct congruence model.

3.Shimp(2007):A recent estimate indicates that almost 20 percent of all

advertisements worldwide use celebrity spokespersons. The general belief

among advertisers is that messages delivered by celebrities provide a higher

degree of appeal, attention, and possibly message recall than those

delivered by non-celebrities. Marketers also claim that celebrities affect the

credibility of the claims made, increase the memorability of the message, and

may provide a positive effect that could be generalized to the brand.

4.Goldsmith et al.(2002): They assessed the impact of endorser and

corporate credibility on attitude toward-the-ad, toward the-brand and

purchase intention. 152 adult consumers were surveyed who viewed a

fictitious advertisement for Mobil Oil Company. They rated the credibility of

the ads endorser, the credibility of the company and attitude towards the-

ad, attitude towards brand and purchase intention. I t was observed that


28/80

28

endorser credibility had its strongest impact on advertisement while corporate

credibility has its strongest impact on brand .

5.Solomon et al. (2002)also talk about celebrities being most effective

in situations involving high social r isk, where the buyer is aware of the

impression peers will have of him or her. According to him, a celebrity

endorser is relatively more effective for products high in psychological or

social risk, involving elements as good taste, selfimage, and opinion o f

others, compared to a normal spokesperson. Expert opinions were

considered most useful when the product endorsed was perceived to involve

high, financial, performance, or physical risk.

6.Kambitsis et al., 2002): Celebrity endorsement is a billion dollar

industry today with companies signing deals with celebrities hoping that they

can help them stand out from the clutter and give them a unique and relevant

position in the mind of the consumer. The reasons for using celebrity

endorsement involve its potential to create awareness, positive feelings

towards their advertising and brand. Advertisement featuring celebrity

endorsement is often also perceived to be entertaining.

7.Pettitt (2000): Advertising is heavily used in process of personality

creation. This follow logically from the fact that personalities are particularly

important for brand building. They provide unique associations with the brand

and these associations acts as a stimulus for the customer to link their

personality with the brand.

8.McGuire et al.(1999): Expertise is the perceived knowledge that the

source possesses, while trustworthiness is the degree to which the source is

considered to be honest, ethical and believable. Both components are


29/80

29

positively related to credibility, but the influence of one component can offset

the effects of the other. For example, a spokesperson that is viewed as

knowledgeable will be ineffective if he or she is perceived as lacking

trustworthiness.

9.Henry(1999): Henry indicates that good PSAs are ones that are

empathetic, meaning they build trust with their audience or a sense of caring

about the problem. He goes on to say that a good radio PSA is one that

creates a mental picture of the subject with sound effects and a strong,

credible spokesperson. In another article, he mentions that more than

11,000 radio stations in the USA, and around two -thirds of them use PSAs. It

is also in accordance with Bonk et al. (1999).

10.Dwane Hal Dean (1999): He studied the effects of 3 extrinsic cues

viz. Third party endorsement, event sponsorship and brand popularity on

brand/manufacturer evaluation.

It was observed that endorsement significantly affected only product

variables (quality and uniqueness) and one image variable (esteem). The

third party endorsement hence may be preceived as a signal of product

quality.

11.Sheth et al. (1999) argue that perception is shaped by the stimulus

characteristics (objects, brands, stories etc.), the context in which it is

delivered (social, cultural), and the customer characteristic s (knowledge,

experience, expertise). It is within these stages that a consumer will either

recognize a fit between a celebrity and a product/brand, or reject this

connection on different grounds. Memory is structured as an associative

network.


30/80

30

When this happen the brand and the celebrity become parts of each others

association set

12.Till and Shimp(1998): Other research suggests that celebrity

endorsements might vary in effectiveness depending on other factors like the

fit between the celebrity and the advertised product.

13.Tellis (1998) argues that consumers in a high-involvement situation

might actually be offended by the use of celebrity to endorse the brand. He

also suggests that when there seem to be perceived high differences among

competing brands, the consumer will perceive it as a high-involvement

situation and put extra emphasis on information about the product more than

being influenced by celebrity endorsers.

14.Lang and Goodwill (1997): PSAs are broadcasted by media outlets

in the public interest at no cost to nonprofit organizations. According to them,

Public service announcements are a vital tool in generating awareness for

critical issues while dispensing important information for many non -profit

organizations. If produced correctly and distributed to the appropriate media

outlets, PSAs help educate, inform, and motivate various publics on a variety

of topics and issues (PSAs: Do They Really Work?). They, wrote that PSAs

deal with life-and-death issues. They urge us to think about people with

desperate conditions, act to help those in need and support causes that can

change the world.

15.Freiden(1994):He concluded that celebrities are particularly effective

spokespersons because they are viewed as highly trustworthy, believable,


31/80

31

persuasive, and likeable. A credible spokesperson is, other things being

equal, more effective than a less credible spokesperson .

16. King (1991) argues that a good strategy to build strong brand equity is

to create an original metaphor for the brands personality. They talk about

the factors involved in building a brand such as: Presence, Relevance,

Differentiate, Credibility, and Imagery.

The credibility factor especially has been looked at by several researchers in

celebrity endorsement. The same has p resence and also to some extent

imagery and differentiate.

Relevance in this context can be looked at as a result of success in the other

areas, as it concerns being perceived as relevant for the consumer.

17.Obanian(1990): developed a source credibility measure that

operationalizes credibility as consisting of the underlying dimensions of

expertise, trustworthiness and attractiveness. The expertise and

trustworthiness dimensions are essentially identical to those identified in

previous research and discussed above. However, the attractiveness

dimension, unlike previous conceptualizations, is defined as the physical

attractiveness of the source to the listener, and to a lesser extent, the

emotional attractiveness of the source (Bearden and Netemeyer, 1999, p.

301). The advantage of this conceptualization lies in part in the extensive

scale validation procedure undertaken by Ohanian.

18.Friedmen et al.(1976):Using advertisements with celebrities and

non-celebrities for a fictitious brand of sangria wine, found that the celebrity

version of the advertisement had higher scores on probable taste, advertising

believability, and purchase intention the three dependent variables.

However, the wine was a fictitious brand, and the celebrity simply brought


32/80

32

recognition to the name.The paucity of research comparing celebrity with

non-celebrity spokespersons highlights the need for continued investigation

into this area.

It is important for advertisers to clearly understand both the pros and cons of

using such individuals to represent their products, causes, or organizations;

and ultimately the advertisers must assess the effectiveness of such a

message.

19.Triandis (1971): Attractiveness has been conceptualized in terms of

similarity, familiarity, and likeability. Similarity refers to the perceived

resemblance between the spokesperson and the audience. Familiarity

represents the amount of knowledge that the audience has about the

spokesperson. Likeability refers to affection for the spokesperson based on

physical appearance, behavior or other personal traits.

20.Hovland et al. (1953): In encoding the message in the context of

celebrity endorsement, perhaps the most important decision to be made,

besides choosing whether or not to use celebrity endorsers at all, is the

choice of celebrity. Much research has been made in this area and several

models have been made to explain and assist in the celebrity endorsement

selection process.


33/80

33

Chapter-3


34/80

34

3.1 OBJECTIVE OF THE STUDY

The objectives of the study are as follows:

To identify the influence of celebrity endorsement on consumer buying

behavior with respect to his/her perception towards the brand .

To study celebrity endorsement as a source of brand-building.

To find which type of celebrity persona is more effective.

Need of the study:

After going through various sources like magazines, newspapers, websites I

found that lot of research work has undertaken by researcher regarding

impact of celebrity endorsement. But there was a gap in the research

regarding whether celebrity endorsement act as a source of changing

consumer perception towards the brand, so I decided to work on this

particular aspect.

Scope of the study:


35/80

35

As due to time constraint it is very difficult to cover the entire sectors so I

decided to

cover FMCG sector, with toilet soaps and biscuits, as examples. The study is

limited to Delhi NCR region only.

3.2 Research Methodology:

Research Design:

A research design is an arrangement of conditions for collection and analysis

of Data in a manner that aims to combine relevance to the research purpose

with Economy in procedure. It constitutes the blueprint for collection,

measurement and analysis of data. My research design will be exploratory

research design.

Data Sources:

In dealing with any real life problem it is often found that data at hand are

inadequate, and hence, it becomes necessary to collect data that are

appropriate. The researcher can collect data either through primary source or

secondary source.

a) Primary data: These are those data which are collected afresh and for the

first time, and thus happen to be original in character. I will be using the

structured questioners.

b) Secondary data: These are those which have already been collected by

someone else and which have already been passed through the statistical

process. I will collect it from the sources like internet, published data etc.

Population ofthe study

People from Delhi/ NCR region will be included in the population .


36/80

36

Sample Size:

It is the total number of respondents targeted for collecting the data for the

research.

Sample size of 200 persons will be taken for this research.

Sampling Technique:

Random sampling technique will be used in this research project.

DATA PROCESSING

Daily data will be entered into MS-Excel sheets. After the exhaustion of the

specified geographical area this data will be analyzed using simple graphical

and tabulation techniques. The data sheets mentioned here will be attached

in the annexure of the report.

Analytical Tools

After collection of data another work necessary for any data collector is to

correctly analysis that data. So statistical tolls helps us to correctly analysis

the data .As I will using here the software named Ms EXCEL for analysis of

the data. I will use following statistical tools:

Hypothesis Testing

Chi-square test will be used when the set of observed frequencies obtained

after experimentation have to be supported by hypothesis or theory. The test

is known as 2 test of goodness of fit and is used to test if the deviation

between observation (experiment) and hypothesis may be attributed to

chance (fluctuations of sampling).2 also enables us to explain whether or not

two attributes are associated or related to each other.


37/80

37

To test the goodness offit: It helps to test goodness of fit by using null and

alternate hypothesis.

STATISTICAL TOOLS TO BE USED

1. Chi Square Test

Procedure:

(1) Set up the null hypothesis that there is no significant difference between

the observed and expected value.

(2) We compute the value of CHI- square by using the formula

CHI-square = 2= (( Oi- Ei)2/Ei)

O- Observed value

E- Expected value

Degree of freedoms=(R-1)(C-1)

Level of significance=5


38/80

38

Chapter-4


39/80

39

4. I E S P I S Y

The t ilet et i esti ted t , t i l di small

imports. i dustan ever is, of ourse, themarket leader.

The market is littered over ith several, leading national and global

brands and a large number of small brands, hi h have limited

markets. The popular and premium brands include ifebuoy, ux,

inthol, iril, exona, and irma.

Toilet soaps, despite theirdivergent brands, arenot ell differentiated

by theconsumers. It is, therefore, not clear if it is thebrand loyaltyor

experimentation luredbyhighvolumemediacampaign, hichsustain

them. A consequence is that themarket is fragmented. It is obviousthat thismust lead to a highly competitivemarket. Toilet soap, once

onlyanurbanphenomenon, hasnowpenetratedpracticallyall areas

includingremoterural areas..


40/80

40

As the market is constituted now, it can be divided into four price

segments: premium, popular, discount andeconomysoaps. Premium

soapsareestimated tohaveamarket volumeofabout , tonnes.

This translates intoashareofabout to %. owever, byvalue it is

asmuchas %.

Market Segmentati n

Soaps are also categori ed into men's soaps, ladies' soaps and

common soaps. There are a few specialty soaps as transparent

lycerine soaps, sandal soaps, specially flavored soaps, medicated

soapsandbabysoaps. Specialtysoapsarehighvaluedbut enjoyonlyasmall shareof themarket invalue terms.

Themarket isgrowingat % ayear. Thismeans that the incremental

demandgeneration is % overandabove thepopulationgrowth. ith

increasingawarenessofhygienicstandards, themarket couldgrowat

aratehigher than % annually. Interestingly, % of themarket isnow

sourced from the rural sector. Thismeans that thevariancebetween

the two segments isnot very large. Sinceupper-endmarket focus is

theurbanareas, marginscome from theurbansector.

15%

41%25%

19%

Siz (In L kh Tonnes)

Pre

Popular Economy

scount


41/80

41

4. . X I E S P

Lux soap was first launched in the K inas a flaked version of Sunlight soap.

Subsequently it was launched in the S in , andmarketedas laundry

soap targetedspecificallyat 'delicates'. LeverBrothersencouragedwomen to

home launder their clothes without fear of satins and silks being turned

yellowbyharsh lyes that wereoftenused insoapsat the time. The flake -type

soapallowed themanufacturersome leeway from lyebecause it didnot need

tobeshaped into traditional cake-shaped loavesasothersoapswere. The

result wasagentlersoap that dissolvedmorereadilyandwasadvertisedas

suitable forhome laundryuse. [ ]Lux iscurrentlyaproduct of nilever. The

name "Lux" was chosen as theLatinword for "light" and because it was

suggestiveof "luxury."

Lux toilet soapwas introducedasabathroomsoap in the S in , and in

the K in asabrandextensionofLuxsoap flakes. SubsequentlyLux

soaphasbeenmarketed inseveral forms, includinghandwash, showergel

andcreambathsoap.

FIRST A OFL

IN IN IA WITH

L LA CHITNIS


42/80


43/80

43

Babra sharif and various other leading models and

actresses have been Lux models

from time to time. Lux remains the

leading soap brand in Pakistan,

representing the stylish class of Pakistan. Things started

with a TV show called Lux Style Ki Duniya, now with the country's leading

models and actors taking part in the annual Lux Style Awards every year. AliZafar the famous Pakistani Singer has become the first male model for Lux.

Other countries

Lux soap is very popular in Nepal and the brand appointed Nepali model-

turned-actress Jharana Bajracharya to be the Lux Girl in the Summer of

2003. After that, she appeared on many TV commercials. Nigerian actress

Genevieve Nnaji appeared as the face of Lux soap in 2004. Two decades

earlier, singer Patti Boulaye had been Nigeria's face of Lux. In Norway during

the 1950s and 1960s, Lux advertisements featured fictional Italian actresses.

Lux soap is also a category leader in Pakistan, the brand being synonymouswith glamour. While initially it was also marketed as the beauty soap of the

film stars, recently it is focusing more on bringing out the star in ordinary

people. Current brand ambassador is Iman Ali.

4.1.2 DOVE TOILET SOAP

Remember the Is it love? No its Dove ads? In the 1990s, when everything

had to be low priced, consumer goods major Hindustan Unilever launched a

Brand of soap that was considered expensive, frightfully expensive, for the

times we lived in. For about Rs 30 for a bar, it was nearly twice as expensive

as any toilet soap brand that was then sold in India. This was a time when

hanging out for coffee was at the neighbourhood Udupi restaurant that

charged Rs 6 for a serving and not the Barista where a mug of coffee cost Rs

50. To get consumers living with that mindset to graduate to a brand like

Dove was a big leap.

Certainly the well-travelled Indian consumer who had seen and touched thebrand abroad were the first set that moved towards the brand for its superior

and gentle on skin properties. Others who sampled the brand had mixed

opinions. Occasionally you heard the sob story from a neighbour , on how a

Dove bar got over in just four days, when the Rs 10 soap lasted for a month,

giving rise to rather unkind remarks that Dove was moisturiser and love.

This set of consumers used the bar for washing the face while a less costlier

soap would be used for the rest of the body, a value-for-money approach.


44/80

44

From those use-for-special occasion days, Dove has come a long way. Last

year, HUL executives claim that Dove has grown by 100% in shampoos and

by 42% in soaps. Dove is the largest premium brand in the Hindustan

Unilever portfolio, says Rajaram Narayanan, vice president, hair care and

Lakme, HUL. Now the Dove portfolio delivers Rs 400crore in sales.

Of this, the soap, or cleansing bar, as HUL executives would call it accounts

for only Rs 200 crore. The rest comes from hair care, a category that Dove

entered in India about two years back. The rise of modern trade formats and

an evolving consumer has also ensured that even emerging categories like

body washes and hair conditioners get more buyers.

Dove has capitalised on this trend. Apart from distribution in modern format

stores, where Dove claims to be one of the leading brands with 11.54%

share, the brand has also entered adjacent categories. In body washes,

Dove claims to be nearly 19% of the market, while hair conditioners gets thebrand sales of around Rs 40 crore.

All this has been a result of carefully managing the umbrella brand according

to Rajaram, who says that the company was careful enough to not tamper

with the core values right from the word go.

Dove did what it does best all over the world - not use supermodels to

endorse the brand. Rather it got real women who used the product to give

testimonials of their experience with the brand. In India, Doves brand team in

the 1990s, led by Harish Manwani, now Unilevers president , Asia, Africa,

Central & Eastern Europe, decided to adopt the same line of thought for the

Indian market too. In some ways the brand was the opposite of Lux, the

beauty bar of film stars. Dove showed beauty in ordinary people, says

cinematographer and film director, Rajiv Menon, who was involved in making

the earliest ads for Dove.

Studies showed that 57% of Doves Target audience was averse to regular

advertising. Hence testimonials became even more critical fo r the success

of the brand, say HUL executives. The team identified close to 50 women

from upper middle class Indian households and handed them trial

packs of Dove soap. After trying out the brand, their reactions were

recorded and the most spontaneous responses (8 of them) were

chosen to be the face of the brand.

The testimonials did have the desired effect and soon the gentle effect that

Dove had on skin was being recommended for babies as well in a way,

baby care major Johnson & Johnson was finding an unlikely contender in

Dove. .


45/80

45

Camera crews in Mumbai, Delhi and Bangalore asked women questions on

hair care. In less than two weeks about 1,000 minutes of video footage was

recorded and uploaded on popular portals. In a span of 9 days, over 250

women were interviewed and 1,000 minutes of footage recorded. This

content when uploaded online elicited a huge response and according to

HUL took the online involvement of consumers to a new high. As Rajaram

points out, over the last few years Indian consumers have also been doing alot of treatments to their hair. If consumers were not colouring their hair, they

were straightening it. In the search for ideal elusive hair, one ends up

damaging it, he says.

This gave Dove the perfect platform to launch its shampoos, as the ideal

brand that could repair damage. Then, other shampoo brands in the market

were taking celebrities to endorse their brands or using the time tested

imagery of kaale ghaney lambey baal. Dove decided to stay away from the

stereotypes too and instead decided to focus on showing consumers their

type of hair.

The faces that represent Hindustan Unilevers (HUL) biggest premium

soap brand are not familiar. For, they represent 11 ordinary women who

won Doves Real Women Face Test a campaign that received over 4,500

entries.

Thats Doves way of going off the beaten track in its communication strategy.

Unlike other soap advertisements, the premium brand did not use the usual

models or movie stars. Instead, it got real women who use the product to

give testimonials of their experience with the brand..

The performance is creditable considering that at the time of its launch in

India nearly 15 years back when everything was priced low HUL

launched Dove that was double the price of any other premium brand. Pricing

did put off customers initially and questions were raised about the soapslongevity.

So what makes the brand tick? Typically, HUL uses an internal tracker called

Living Standards Measure or LSM to gauge the performance of a product.

LSM can range anywhere between one and 18 a higher score shows a

higher living standard. On that scale, India is a LSM 3 nation with 70 per cent

of the population in that range.


46/80

46

Heres a pointer to why HUL thinks Dove

has a great future. On the LSM scale of six

and above, Indias market is about 100

million strong and that number is far bigger

than the population of some European countries. The skin cleansing category

was more than Rs 7,700 crore in 2008, recording a growth of 11.8 per cent.

Within this category, the premium price segment is leading the pack with a15.3 per cent growth rate.

And unlike HULs other soap brands like Liril, Lux and Lifebuoy, which have

undergone a series of relaunches, Dove has remained constant. Though it

has gone in for brand extensions such as shampoos and deodorants , the

brands core advertising proposition and premium positioning has

remained the same. Consistency can indeed pay.

4.2 BISCUIT INDUSTRY

India Biscuits Industry is the largest among all the food industries and has a

turn over of around Rs.3000 crores. India is known to be the second largest

manufacturer of biscuits, the first being USA. It is classified under two

sectors: organized and unorganized. Bread and biscuits are the major part of

the bakery industry and covers around 80 percent of the total bakery

products in India. Biscuits stands at a higher value and production level than

bread. This belongs to the unorganized sector of the bakery Industry and

covers over 70% of the total production.

India Biscuits Industry came into limelight and started gaining a sound status

in the bakery industry in the later part of 20th century when the urbanizedsociety called for ready made food products at a tenable cost. Biscuits were

assumed as sick-man's diet in earlier days. Now, it has become one of the

most loved fast food product for every age group. Biscuits are easy to carry,

tasty to eat, cholesterol free and reasonable at cost. States that have the

larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh,

Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most

industrially developed states, hold the maximum amount of consumption of


47/80


48/80


49/80

49

The brand is estimated to be worth

over s ,000crore s 0billion), and

contributes more than 0 per cent of

the company's turnover Parle Products isanunlisted

companyand itsexecutivesarenot comfortabledisclosingexact numbers).

Last fiscal, Parlehadsalesof s , 00crore s billion).

ompetitionhas, ofcourse, been trying toweanawaycustomers from Parle.

Britannia [ Get uote ] relaunched itsGlucose-Dbiscuit asTigerin and

boastsof -18percent share, while ITC's Sunfeast glucosehascaptured8 -

9percent, according to industrysources.

EvenLevershad forayed into thissegment in 003and launchedaglucose

biscuit brandedas odern, after it acquired thebakerybusinessof odern.

There are strong regional brands, including Priya Gold west), Cremica

north)and Anmol east).

But theystill have theirworkcut out.

irmalaya Kumar feels the Parle-Gstory isso fascinating that it deserves to

beacasestudy. hat wouldbe interesting tosee iswhetherit will beable to

retain its leadership in thecomingyearsas incomegrows in thehinterlands

andconsumersupgradeanddevelopnew tastes.

4. . I S E SBiscuitsand tea in themorningwerearoutine. Sowere thekeymarket

playersand theirfavouriteproducts.

The twomajorplayers Britanniaand Parlewerebusybitingofchunksof the

national market among themselves, withahost ofsmallerbrands invarious

regions.


50/80

50

While the business was still very competitive, there wasn't anything

groundbreaking. In 2003, with ITC foraying into the segment, a lot of that

changed.

At that time, Britannia and Parle held, between them over 82 per cent of the

market in value terms. The rest too was firmly held by smaller players like

Priya Gold which had a strong presence in the north. So, in essence, the

market already had strong well entrenched players. So how could a late

entrant like ITC make its mark?

Three years down the line, however, things have changed a lot. It is a classic

story of the hare and the tortoise. While it is far from winning the race, slowly

and steadily, the tortoise is gaining ground.

The late entrant is already on the podium in the third place with as much as 7

per cent of the market in terms of value. ITC made hay when the sun wasn't

shining, says a consultant who's been tracking the industry for a long time.

But first, why did ITC train its eye on biscuits? Ravi Naware, chief executive,

ITC Foods, makes it sound simple.

We decided to enter the foods segment because it's a Rs 550,000 crore (Rs

billion) market in INDIA]. But only 6 per cent of this is branded and packaged.

In developed markets, nearly 95 per cent of the food market is branded and

packaged. So there was lot of scope for a branded player.

In foods, biscuits was tempting. The Rs 4,000-crore (Rs billion) Indian

biscuits market has grown at 12-14 per cent year-on-year. Then, there was a

business synergy. ITC was already value-adding to wheat with its branded

atta presence. By entering the biscuits segment, it could also improve its

bottomline further.

But despite the fast growth rates, the biscuits industry was not all rosy. Over

the years, even giants like Hindustan Lever] had failed.

For instance, HLL which had flirted with biscuits under the Max brand exited

in 2005. But ITC's Sunfeast has a different story to tell so far. the strategist

looks at the gameplan of a late entrant and how the biscuits industry has

responded.

New recipe

Before entering the segment, ITC dug into market research. Research

revealed that the category had gaps which ITC could settle into. Findings

revealed that consumers wished to taste new and innovative products. That

was precisely what the competition had not done in a big way.

Says Naware, The biscuits industry had witnessed little innovation; Glucose

was Glucose and Marie was still Marie. The company decided that this could

be its biggest point of attack. In 2003, ITC launched Sunfeast with six ranges.


51/80


52/80

52

In terms of value, Britannia leads the market with 37 per cent market share,

followed by Parle's 31.3 per cent and ITC's 6.3 per cent. Neverthel ess, the

gap is still wide. Sunfeast still has a long way to go.

But what can the bigger players do? Alagh has an interesting observation.

Says he, Biscuits have always been a low margin, high volume game. Both

Britannia and Parle have very high volumes and can easily afford to lower

their margins.

A potential after-effect? Sunfeast too may have to drop its prices to be in the

reckoning and this will squeeze its margin even lower. While the full game is

yet to be played out, for the moment the sun seems to be shining on

Sunfeast.

Creaming the market. . .

y Innovation in the product line -- biscuits with butterscotch cream with

actual granules in the cream, strawberry cream with flavour -enhancers

and orange-flavoured marie.

y Gained an edge from the well established distribution network of its

tobacco business.

y Signed up big film stars like Shah Rukh Khan and southern star Surya

as brand ambassadors for Sunfeast.

y Branded the WTA tennis tournament with promos starring tennis s tars,

Mahesh Bhupati and Sania Mirza.

. . . needs further embellishments

y Big brand ambassadors, but not strong enough advertising campaigns

for big brand recall.

y The gap between the number three and the top two slots is too wide.

y Competitors can play the low price game as they have volumes to

support.


53/80

53

apter-6

6. I I YSIS

6. . I E S P

E E E ESP E

Most of the respondents were

femaleswith65% of responsewhile

malesbeing35% respondents.


54/80


55/80

55

5) S E I YI E VI

Though celebrity endorsement

is the major factor but it doesnot make any great difference

to people as brand name is

almost equally important, as

28% consumer prefer buying

those product that are being

endorsed by celebrities, while 27% consumers said it is the brand name

whichmakes thedifference.

6) ESI E SEE E E IES E SI E

P S

amajor chunkof respondents

with 45%, replied that yes

they would like to see a

celebrity endorsing their

product as it gives them a

satisfaction of using a wellknown brand but 39%

respondents made sure that they do not want sowhile 16% respondents

were indifferent towards this.

7) PE P E S P S E EI

P MOTE Y SOME E E TY

47% respondents agreed with

the fact thoughgoodnumberof

respondentswith30% said that

theydonot agreewith the fact.

YPOTHESIS TESTI


56/80

56

Step1: StateHypothesis:

Ho: elebrity endorsement doesnt a ect purchase decision o toilet

soapbrand.

Ha:Celebrityendorsement affectspurchasedecisionof toilet soapbrand.

Step : Setthe ejectioncriteria:

DF = 5-1 = 4

At alpha .05and4degreesof freedom, thecritical value from thechi square

distribution table is9.49

Step : omputetheTest Statistics: O -E)^2/E

Pre erence Observed E pected O-E) O-E)^2 O-E)^2/EStrongly

agree

16 20 -4 16 0.8

Agree 47 20 27 729 36.45

Strongly

disagree

2 20 -18 324 16.2

Disagree 30 20 10 100 5

Indifferent 5 20 -15 225 11.25

G2=69.7

Interpretation:

As theChi-square test statistics69.7exceeds thecritical valueof9.49hence

null hypothesis is rejected and hence we reached at the result that our

alternativehypothesis isaccepted. ence it canbeconcluded that celebrity

endorsement affectspurchasedecisionof toilet soapbrand.

8) OES E E TY E ORSEME T E TMY

P RCHASE

A great number of

respondents with 52%

responses agreed to the fact


57/80

57

while 23% respondents said that they do not agree to the fact.

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: Celebrity endorsement doesnt affect my purchase decision oftoilet

soap brand.

Ha: Celebrity endorsement affects my purchase decision of toilet soap brand.

Step 2: Set the Rejection criteria:

DF 5-1 4

At alpha .05 and 4 degrees of freedom, the critical value from the chi square

distribution table is 9.49

Step 3: Compute the Test Statistics: = (O -E)^2/E

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

Strongly

agree

16 20 -4 16 0.8

Agree 47 20 27 729 36.45

Strongly

disagree

2 20 -18 324 16.2

Disagree 30 20 10 100 5

Indifferent 5 20 -15 225 11.25

G2=69.7

Interpretation:

As the Chi-square test statistics 85.3 exceeds the critical value of 9.49 hence


alternative hypothesis is accepted. Hence it can be concluded that celebrity

endorsement affects purchase decision of toilet soap.

9) WHICH CELEBRATY PERSONA DOES CONSUMER LIKE TO

ENDORSE THIER PRODUCT?


58/80

58

A Bollywood star are

consumers first preference

with 58%, as the endorser of

theirsoapbrandwhileagood

number of respondents with

20% want televisionstars then

comes sports stars with 19%

ofresponses.

HYPOTHESIS TESTI


Ho: People liketoseesportsstarsastheendorsero theirproducts.

Ha:people like toseebollywoodstarsas theendorserof theirproducts.

Step2:statetherejectioncriterion

DF=5-1=4


distribution table is9.49.

Pre erence Observed E pected O-E) O-E)^2 O-E)^2/E

Bollywood

stars

58 20 38 1444 72.2

Tvstars 20 20 0 ----- ----

Sportsstars 19 20 -1 1 0.05

Social

workers

2 20 -18 324 16.2

thers 1 20 -19 361 18.05

10)CORRECTRECALLOF

THE TAGLI ES

The first ad was correctly

recogni ed by more than

80% consumer, the brand

whichwasendorsedbymost


59/80

59

of thebollywoodstars, while thesecondmost correctlyrecogni edadwas

the thirdoptionwhich isagainbeingendorsedbyabollywoodstar, Katrina

Kaif. hile theratioofcorrect towrongrecognitionwasvery low incaseof

otherbrandswhicharenot beingendorsedbyanycelebrity.

6.1.2 ISCUITS

1)GE EROFTHE RESPONDENT

Most of therespondent with

62% was femaleswhileonly

38% weremale.


60/80

60

2) AGE OFTHE RESPONDENT

The survey was done with a

mixed age group with 26%,

23%, 21%, 20%, 10%, of 18-

25, 34-41, above 40, 26-33

and below 18 years of age

respectively.

) OCCUPATIONOFTHE RESPONDENT

Majority of the respondents

were home makers while a

good no of

businessmen/women and

students were also being

surveyed.

4) RANDOFTHE ISCUIT INUSAGE

Maximum number of

respondents with 38%

consumes sunfeast biscuits

which are being promoted by

Shahrukh Khan, while 31%

replied that theyconsume Parle-

g, 24% respondents consume

tiger and 6% and 1% of

respondents replied that they consume milk shakti and other brands

respectively.


61/80

61

5) FACTORS AFFECTINGTHE UYING EHAVIOUR

39% of therespondentsreplied

i.e. the maximum number of

respondents said that its the

Brand amewhichmakes the

difference and 33% of the

respondents said that taste is

also the factorwhich let them

make thepurchase, whileprice

andcelebrityendorsement make16% and12% respondentsrespectively to

buy thebiscuits.

6) DESIRE TO SEE ANY CELE RATY ENDORSING THE

RANDS

Most of the consumer with

38% would like to see some

celebrity endorsing their

product, while29% donot and

33% are indifferent towards it.

7) DO PEOPLE PREFER UYING THOSE PRODUCTS THAT

ARE EING PROMOTED Y SOME CELE RATY

43% respondentsagree to the

fact with 13%, who strongly

agree while 40% of the

respondents disagree to the

fact while 3% strongly

disagree, while1% consumers

were indifferent towards it.

HYPOTHESIS TESTING


62/80

62


Ho:Celebrityendorsementdoesnta ectpurchasedecisiono biscuit

brand.

Ha:Celebrityendorsement affectspurchasedecisionofbiscuit brand .

Step2: SettheRejectioncriteria:

DF = 5-1 = 4


distribution table is9.49

Step :ComputetheTest Statistics: = O-E)^2/E

PREFERENCE OBSERVED EXPECTED O-E O-E)^2 O-E)^2/E

Stronglyagree 13 20 -7 49 2.45

Agree 43 20 23 529 26.45

Strongly

disagree

1 20 -19 361 18.05

Disagree 40 20 20 400 20

indifferent 3 20 -17 289 14.45

G2=81.4

Interpretation:

As the Chi-square test statistics 81.4 exceeds the critical value of 9.49

hencenull hypothesis is rejectedandhencewe reachedat the result that

our alternative hypothesis is accepted. ence it can be concluded that

celebrityendorsement affectspurchasedecisionofbiscuit brand.

8) DO I PREFER BUYING THOSE PRODUCTS THAT ARE

BEING PROMOTEDBY SOME CELEBRATY

Maximum number of the

respondentswith48% agreed

that they prefer to buy those

products that are being


63/80

63

promoted by some celebrities with 12% who strongly agreed, while 35%

disagreed with the fact, while 2% strongly disagreed.

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: Celebrity endorsement doesnt affect my purchase decision of

biscuit brand.

Ha: Celebrity endorsement affects my purchase decision of biscuit brand.

Step 2: Set the Rejection criteria:

DF 5-1 4

At alpha .05 and 4 degrees of freedom, the critical value from the chi square

distribution table is 9.49

Step 3: Compute the Test Statistics: = (O-E)^2/E

Preference Observed Expected O-E (O-E)^2 (O-E)^2/E

Strongly

agree

12 20 -8 64 3.2

agree 48 20 28 784 39.2

Strongly

disagree

2 20 -18 324 16.2

Disagree 35 20 15 225 12.25

indifferent 3 20 -17 289 14.45

G2=85.3

Interpretation:

As the Chi-square test statistics 85.3 exceeds the critical value of 9.49

hence null hypothesis is rejected and hence we reached at the result that


64/80

64

our alternative hypothesis is accepted. ence it can be concluded that

celebrityendorsement affectspurchasedecisionofbiscuit brand.

9) hich celebrity persona does consumer pre er to endorsetheirproduct?

Maximum number of

respondents likes to see

bollywood stars while just a

few lesser then them likes to

seeTV starsas theirendorser.

HYPOTHESIS TESTING


Ho: People liketoseesportsstarsastheendorsero theirproducts.

Ha:people like toseebollywoodstarsas theendorserof theirproducts.

Step2:statetherejectioncriterion

DF=5-1=4


distribution table is9.49.

Pre erence Observed E pected O-E O-E)^2 O-E)^2/E

Bollywoodstars

39 20 19 361 18.05

Televisionstars

29 20 9 81 4.05

Sportsstars

21 20 -9 81 4.05

Socialworkers

10 20 -10 100 5

thers 1 20 -19 361 18.05

G2=49.2


65/80

65

Interpretation:

As theChi-square test statistics49.2exceeds thecritical valueof9.49hence


alternativehypothesis isaccepted. ence it canbe concluded that people

like toseebollywoodstarsendorsing theirproductsratherthansportsstars.

10)CORRECTRECALLOFTHE TAGLINES

The first ad was correctly

recogni ed by maximum

number of respondents, with

91% consumer, while the

second most correctly

recogni ed ad was the third

option which is being

endorsedbyabollywoodstar,

Shahrukh Khan. hile the

ratioof correct towrong recognitionwas very low in caseof otherbrands

whicharenot beingendorsedbyanycelebrity.


66/80

66


67/80

67

Chapter-7

7.1 Summary:Celebrity endorsement is a method employed by marketers as a promotional

tool so that people can associate themselves with the product as they

associate themselves with the celebrity endorser. Companies spend huge

amount of money to rope in such celebrities so as to endorse their brands.

They generally determine their effectiveness by measuring ROI. Lot of

studies conducted on celebrity endorsement but no one clearly indicated

whether it can act as a source of brand-building. So a research was

conducted on this particular aspect. It wasnt possible to concentrate this

study on the entire sectors so FMCG sector was selected.

Primary data was collected through structured questionnaire and sampling

unit was Delhi. Secondary sources were also used in the beginning so as to

gain an insight of the problem.


68/80

68

After carrying it was found that female celebrities are better than that of male

celebrities.

People love to see film stars or TV actors/actresses endorsing FMCGs than

that of sports stars. It was found that celebrity endorser affects people

intention regarding purchase of the FMCGs and celebrity endorsement actsas a source of brand-building.

7.2 Conclusion:

Despite the obvious economic advantage of using relatively known

personalities as endorsers in advertising campaigns, the choice of celebrities

to fulfil 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.

But it would be presumptuous to consider celebrity endorsement as a

panacea for all barricades. Celebrity endorsement if used effectively, makes

the brand stand out, galvanizes brand recall and facilitates instant


69/80

69

awareness. To achieve this, the marketer needs to be really disciplined in

choice of a celebrity. Hence the right use of celebrity can escalate the Unique

Selling Proposition i.e. it can act as a source of brand-building of a brand to

new heights; but a cursory orientation of a celebrity with a brand may prove

to be claustrophobic for the brand.

It was found that people love to see celebrities endorsing their brands so the

involvement of common man is pretty high with these celebrities. So

marketers should use the right celebrity matching with the product. During

survey it was found that female celebrities are considered to be better

celebrity endorser than that of their male counterparts in case of FMCG, this

is because in case of FMCGs, the involvement during purchase of mothers is

very high, hence a female endorser suggesting a product leaves an

impression on the mothers mind. Also it was found that people love to seebollywood and TV stars endorsing their product or brand than sports stars.

This is because in India, bollywood stars are worshiped as gods .

But celebrity endorsement is not the end of the story, todays consumer has

become very clever and clear regarding what he/she wants? and he/she

does not blindly follow his/her ideal, but ha also looks for the brand and the

features of the products. Infact brand, its quality and features are the

foremost important things that he/she looks for in a product. At last I just want

to say A celebrity is a means to an end, and not an end in him/her.


70/80

70

7.3 Limitation:

There are following constraints of the study which can be explained as: -

the time of research was short due to which , many fact has been left

untouched.

The Area undertaken in research is Delhi region. But to do a complete

research a wide area is required, so the area is also a constraint of the study.

Sample for the study taken is of only 100 consumers, which was also a

constraint for the study.


71/80

71

While collecting data some of the respondents were not willing to fill the

questionnaire, so they might not fill their true behaviour. This can also be a

constraint of the study.

7.4 Recommendations:

After studying impact of celebrity endorsement on consumer perception on

FMCG sector and as a source of brand-building I want to suggest following

recommendations:

Through the study it was revealed that the consumers were able to

recognize the LUX ad with sone se bhi sona lage and VIVEL ad with

khoobsurti bas me, duniya kadmo me taglines and similar was the

case with biscuit brands, but consumers were also able to recall those

ads which do not had any celebrities like G mane Genius ad of parle-

g, hence marketers should focus on creating ads which communicate

some message and leaves some impression on the consumers rather

than concentrating on signing the celebrities as endorsers.


72/80

72

This study reveals that celebrity endorsement act as a source of

brand-building but it isnt the complete solution. Company cant rely

only on celebrity endorsement to sell their products but they should

follow an integrative approach so as to generate good sales volumes.

They should provide more schemes to their customers in order to sell

their products.

One of the important recommendations that I want to give is that

during this slowdown period companies are cutting their advertisement

expenditure but they shouldnt do this. This is because this slowdown

provide them an opportunity to differentiate themselves from their

competitors. This is also supported by the researches. One of the

research explained that during 1960s recessions 290 global

companies increased their advertisement expenditure and their sales

increased by whopping 300%. Some of the companies are well

established brand name todays like IBM, Microsoft, 3M etc.


73/80

73

Chapter-8


74/80

74

8 ANNEXURE

8.1 BIBLIOGRAPHY

1. http://www.itcportal.com/the_itc_profile/ads/ad.htm,

22.11.20092. http://www.hul.co.in/brands/personalcarebrands/Dove.aspx , 10.12.2009

3. http://www.hul.co.in/aboutus/ourhistory/, 10.12.2009

4. http://www.itcportal.com/the_itc_profile/history_evolution.ht

ml, 12.12.2009

5. Advertising and Sales Promotion by S.H.H.KAZMI and SATISH K

BATRA.

6. http://economictimes.indiatimes.com/features/brand-

equity/The-secret-of-Doves-success/articleshow/5095968.cms,

30.12.2009


75/80

75

8.2 QUESTIONNAIRES

8.2.1 Questionnaire regarding toilet soap

consumption

Dear Respondents,

This questionnaire will be strictly used for the purpose of business research

conducted for academic purpose only. No information provided by the volunteers

would be used otherwise.

1) Name of the respondent__________________

2) You are:

Male Female

3) Yourage is:

18-22 23-27

28-32 33-37

38 orabov

4)Your occupation is

Student Service class

Businessman/Businesswomen Home Maker

Others

5) Which toilet soap you are using currently?

Lux Dove

Cinthol Santoor

Other, Pleasemention_____________________

6) What factoraffects yourbuyingbehavior toward yourpurchase?

Price Fragnance

Celebrity endorser Brand name


76/80

76

7) Do you like to seeany celebrity endorsing yourbrand on television?

Yes No

Doesnt matter

8) Peoplego forsuchproductswhich arebeingpromoted by some celebrity endorser.

Rate thisstatement:

Strongly agree Agree

Indifferent Disagree

Strongly disagree

9) Celebrity endorsement affectsmy purchase decision whilepurchasing toilet soaps.

Rate thisstatement:


Indifference Disagree

Strongly disagree

10) Out of the following celebrity personawhom do you likemost?

Bollywood Stars Sportsstar

Television Stars Social Workers

Others, pleasemention_________________________

11) Do you follow your favorite celebrity whilepurchasing new toilet soapevery time?

Every time Often

Seldom Never

12)You are required to identify the followingads regarding various toilet soaps:

Sonesebhi sonalage, salonamera yaar: __________________________

Mummy, phirse classme first:___________________________________

Khoobsurti bsme duniyakadmo me_______________________________ .

_________________________________________ ______its not just soap.


77/80

77

13) Any suggestions regardingadvertising campaign of toilet soap, kindly mention:

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

______________________________

Thank you for spending your precious time, HAVE A NICE

TIME AHEAD.


78/80


79/80

79

8) Peoplego forsuchproductswhich arebeingpromoted by some Celebrity endorser.

Rate thisstatement:



Strongly disagree

9) Celebrity endorsement affectsmy purchase decision whilepurchasingbiscuits for

my family.

Rate thisstatement:



Strongly disagree

10)Out of the following celebritypersonawhom do you likemost?

Bollywood Stars Sportsstar

Television Stars Social Workers

Others, pleasemention_________________________

11) Do you follow your favorite celebrity whilepurchasing newbiscuit packet every

time?

Every time Often

Seldom Never

12)You are required to identify the followingads regarding variousbiscuits:

G maanegenius:_______________________________________________

Jamkekhao, kuch ban ke dikhao:___________________________________

Power ofmilkand goodness of honey_______________________________

Kho jao ________________ki duniyame


80/80

13) Any suggestions regardingadvertising campaign of toilet soap, kindly mention:

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

______________________________

Thank you for spending your precious time, HAVE A NICE

TIME AHEAD.

__________________________________________

nidhi suyal,88

Documents