A SEMINAR PRESENTATION

ON

“CELEBRITY ENDORSEMENT”
In partial fulfillment of 2Years Regular Degree of

MASTER OF BUSINESS ADMINISTRATION

(FINANCE)

Presented by:
Anita Rout
Regd. No. 1906380007
4th Semester

OXFORD COLLEGE OF MANAGEMENT

(OCM)
BHUBANESWAR
External Guide Internal Guide

DEPARTMENT OF MBA
OXFORD COLLEGE OF ENGINEERING &
MANAGEMENT, BBSR

Sushree Priya Rout

Date:

Certificate
This is to certify The Seminar entitled
“CELEBRITY ENDORSEMENT” submitted by Anita
Rout Regd. No. 1906380007) is a partial fulfillment of
the requirements for award of the degree of M.B.A. to
Oxford College of Engineering & Management is a bona
fide record of original research carried out under my
guidance and supervision.
To the best of my knowledge and belief, the
work has not been submitted to any other institution or
university for award of any degree or diploma.
 It is further certified that the assistance and
help received by her from various sources during the
course of investigation has been duly acknowledged.

Shushree Priya Rout

Oxford College of
Engineering & Management

I do hereby declare that the seminar entitled

“CELEBRITY ENDORSEMENT”. being submitted to the

Department of MBA, Oxford College of Engineering &

Management, BBSR, is the outcome of my experience,

ken and diligence as it has been prepared by me after

mustering genuine information and data from various

source during my research period under the auspices of

MBA Department and guidance of Sushree Priya Rout.

I further declare that, the project report is

immaculate and unique in its preparation as it has

neither imitation nor earlier publication.

 Anita Rout
MBA Final Year
Regd. No.
190638007

Signature of the Student

I am heartily thankful and highly grateful to my College

Authority for allowing me to undertake task compelling

the worthy and witty entitled “CELEBRITY

ENDORSEMENT”. I am gracefully indebted to our

Sushree Priya Rout, MBA Department whose pep talk,

supervision and ethics of working have made me

capable of producing the unique project report.

 I am also graceful to my family members and friends

who have been extending their helpful hands co-

operation and devotion their precious time to give a

finishing touch to my long cherished project work.

Anita Rout
MBA Final Year
Regd. No.
190638007

CONTENTS
 Introduction
 Objectives of the Study
 Research Methodology
 Scope of the Study
 Limitations of the Study
 Industry Profile
 Company Profile
 Theoretical Framework
 Data Analysis
 Findings
  Suggestions
 Conclusion
 Bibliography

INTRODUCTION
Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary of
Current English lays down the meaning of research as “a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.”1 Redman and Mory
define research as a “systematized effort to gain new knowledge.”2 Some people consider
research as a movement, a movement from the known to the unknown. It is actually a voyage
of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown
confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller
understanding of the unknown. This inquisitiveness is the mother of all knowledge and the
method, which man employs for obtaining the knowledge of whatever the unknown, can be
termed as research.
The term consumer behavior is defined as the behavior that consumer display in searching
for, purchasing using, evaluating and disposing of products and services that they expect will
satisfy their needs.
 The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how
 The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
 The psychology of how the consumer is influenced by his or her environment (e.g., culture,
family, signs, media);
 The behavior of consumers while shopping or making other marketing decisions;
 Limitations in consumer knowledge or information processing abilities influence decisions
and marketing outcome;
 How consumer motivation and decision strategies differ between products that differ in their
level of importance or interest that they entail for the consumer; and
 How marketers can adapt and improve their marketing campaigns and marketing strategies to
more effectively reach the consumer.

Celebrity Endorsement: 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 a person’s 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 subject’s attention.

Who is a celebrity?
Celebrities are people who enjoy public recognition by a large share of a certain group
of people whereas attributes like attractiveness, extraordinary lifestyle are just examples and
specific common characteristics cannot be observed though it can be said that within a
corresponding social group celebrities generally differ from the social Normand enjoy a high
degree of public awareness (Schlecht, 2003).

Testimonial: If the celebrity has personally used a product or service and is in a

position to attest its quality, then he or she may give a testimonial citing its benefits. For
instance AishwaryaRai endorses Lux by testifying the quality of the product as it forms a part
of her consumption basket.
 Endorsement: celebrities often lend their names to ads for product or services for
which they may or may not be the experts For instance SachinTendulkar has been endorsing
the Palio brand of Fiat.

Actor: A Celebrity may be asked to present a product or service as a part of character

enactment rather than personal testimonial or endorsement. For instance SwetaTiwari of
“Prerna fame” (KasuatiZindagiki) enacts as a housewife for Nirma’s ad campaign.

Why Endorsements?
Celebrity Endorsements act as a credible means of “money burning”. This is because
this is a world of products for which the value a consumer obtains from purchasing any given
variety. This could be for reasons of social standing-People want to wear the “right” clothes,
drink the “right” beverages and use the “right” fragrances. Specifically a consumer that
observes messages for two different firm’s products, one product’s message containing a
celebrity endorsed and the other not, believes the celebrity endorsed product will have more
purchases and so be of higher value.(Clark &Horstman, 2003)
Celebrity endorsement is more likely to be observed for those product shaving a high
price-production cost margin and on a large customer base. In short, celebrity endorsements
are more typical for nationally marketed products then for local or niche market products and
for products such as running shoes, soft drinks and the like for which the price cost margins
are apparently large.
Promoters of certain products require co-ordination over multiple customer groups -
different age, income, education groups or groups in different location. Example, Credit
Card. With a product of this sort a common set of advertising messages communicated to all
custom is a more effective and coordinates mechanism than messages targeted at separate
customer groups with common messages. A customer in one group receiving a message
knows that customer in other groups are also receiving the message. The challenge with
common message is of significant audience reach in the various customer groups at low cost.
Because the celebrity is recognizable globally, it is a low cost way to achieve cross group
coordination (Clark & Horst man, 2003).
 OBJECTIVES OF THE STUDY
 To examine the influence of congruence between celebrity value and product values on
advertising effectiveness.
 To compare three dimensions i.e, values, expertise and attractiveness of the matchup
hypothesis.
 To understand the influence of celebrity endorsement on purchasing decision of the customer.
 To understand other factors like price and quality.
 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: Primary is the data which is collected afresh and for the first time, and thus
happen to be original in character. I used the structured questionnaire.
b) Secondary data: Secondary data is the data which have already been collected by
someone else and which have already been passed through the statistical process. I collected
it from the sources like internet, published data etc.
Sampling plan :
 Data collected has been analyzed and interpreted by percentage system and presented
in pie and column graphs.
Sampling Size:
It is the total number of respondents targeted for collecting the data for the research. Sample
size of 100 is taken for this research.

SCOPE OF THE STUDY

 Due to time constraint it is very difficult to cover the entire sectors. So I decided to cover
beverage industry.
 The scope of consumer behavior has been briefly touched upon in the previous section
wherein it was explained that how consumer behavior includes not only the actual buyer and
his act of buying but also the impact of celebrity endorsement while purchasing the products.
 LIMITATIONS OF THE STUDY
There are following constraints of the study which can be explained as:-
 The time of researchwas short, due to which many factshave been left untouched.
 Sample size for the study is taken only 100 consumers. This can also act as a constraint to the
study.
 While collecting data some of the respondents are not willing to fill the questionnaire, so they
might not reflect their true behavior. This can also be a constraint to the study.
 INDUSTRY PROFILE
The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and
Pepsi have a combined market share of around 95% directly or through franchisees. Campa
Cola has a 1% share, and the rest is divided among local players. Industry watchers say, fake
products also account for a good share of the balance. There are about 110 soft drink
producing units (60% being owned by Indian bottlers) in the country, employing about
125,000 people. There are two distinct segments of the market, cola and non-cola drinks.
The cola segment claims a share of 62%, while the non-cola segment includes soda, clear
lime, cloudy lime and drinks with orange and mango flavors.
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepal's)
compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and
Mexico 605. The industry contributes over Rs 12 bn to the exchequer and exports goods
worth Rs 2 bn. It also supports growth of industries like glass, refrigeration, transportation,
paper and sugar. The Department of Food Processing Industries had stipulated that 'contains-
no-fruit-juice' labels be pasted on returnable glass bottles. About 85% of the soft drinks are
currently sold in returnable bottles. There was a floating stock of about 1000 mn bottles
valued at Rs 6 bn. If the industry were to abide by the new guidelines, it would have to invest
in new bottles, resulting in a cost outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to
invest such a large amount.
Around 400,000 tonnes of raw material would be required to replace the existing stock of
bottles. Instead, the soft drink industry suggested that a seven-year moratorium be extended
to the industry so that it can incorporate the change in a phased manner. There is no such
mandatory requirement anywhere in the world to specifically label the glass surface of
returnable bottles. The government has decided to extend the date for replacing the bottles to
end-march 2006. In the meantime, the producers have shifted substantially to the use of PET
bottles.
Soft and aerated drinks were considered products for the middle class and the affluent. That
segregation is no more valid. Soft and aerated drinks are consumed by all except those who
cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to
the lower, middle and upper middle classes. The soft drink industry has been urging the
government to categories aerated waters (soft drinks) equitably with other consumer products
of mass consumption and remove special excise duty.
The industry estimates that the beverage market should grow at twice the rate of GDP
growth. The Indian market should have, therefore, grown by at least 12%. However, it has
been growing at a rate of about 6%. In contrast, the Chinese market grew by 16% a year,
while the Russian market expanded at almost four times the rate of growth of the Indian
market.
It may be recalled that Coca-Cola, the world's number one player, was present in India for a
long time in collaboration with an Indian producer but was thrown out in the late 1970s. It
reappeared in India following the economic liberalization era - but after its rival, world's
number two, had already entered in a big way following a long and tough fight against the
opposition from the domestic producers. When Coca-Cola re-entered, it installed a new
milestone. It acquired the well flourishing India's top player, Parle. Since then it is basically a
fight between the two American giants. Others are playing a peripheral role, as adjuncts to
the two MNCs. World's third biggest player, Cadbury Schweppes, had also made an entry
but was gobbled up by Coca-Cola. When Coca-Cola acquired Parle brands, it was, in fact,
buying the bottling facilities, the marketing network, and the established consumer preference
during the market build-up. The brands were a drag on the global brand. Since Coca-Cola
was not interested in brands (like Thumps Up), it did not promote them. The result, at least,
in the short run was a loss of the market to the competitor. Coca-Cola decided to market more
effectively the Parle brands. It had in its armoury Coke, Thumps Up, Limca and Fanta. The
latest to enter market was Parle’s erstwhile Rimzim, alongside Portello, a black currant
flavoured drink, very popular in Srilanka.
Coca-Cola operates through 35 plants and 16 franchisees throughout the country, while
PepsiCo has 20 plants, but it has 7 more franchisees at 23 to 16 of its rival. Coca-Cola claims
a market share of 51%, while Pepsi has a share of 46%. The claims, however, remain
disputed. The other smaller players like Pure Drinks Ltd claim the rest of the market. The
shares of the two lead players are consolidated figures, which include the respective bottlers.
Coca-Cola had approached the government for a five year extension for divesting 49% equity
in its bottling subsidiary, Hindustan Coca-Cola Holdings. It had set up the marketing
subsidiary as part of its strategy to integrate all its bottling operations, both company-owned
and franchisee bottlers, apparently keeping in line with its global policy. All together, it had
bought initially over 38 franchisee bottlers.
Kandhari Beverages, coke bottlers for north have been eyeing to lift a stake in Coca-Cola
India. Coca-Cola had filed an application to offload 49% stake of its bottling operations in
favour of their Indian operators. Besides Kandhari, three other bottlers, one each from Uttar
Pradesh, Gujarat and Jammu, were lined up to invest in Hindustan Coca-Cola Holding.
Kandhari has already invested Rs 300 mn in 1999 and 2000 to upgrade its capacity. The total
investment by all the four was expected to be Rs 1000 mn. Both Coca-Cola and PepsiCo
planned for the launch of lemon-flavored versions of their products. Both have been
expanding their non-carbonated drink line-ups, as consumers seem to be shifting away from
carbonated soft drinks. PepsiCo is deliberating whether to come out with Pepsi Twist, a cola
mixed with lemon. But while both companies have juice sports drinks, bottled water and
other such drinks in their line-ups, neither coke nor Pepsi has launched a new national variety
of a cola-flavoured carbonated soft drink in years.
PepsiCo had achieved Rs 3 bn worth of exports, which include processed foods, basmati
rice, guar gum and soft drinks concentrate. PepsiCo completed the second phase of its
expansion and with this expansion, PepsiCo was to explore the possibility of expanding the
export of concentrates to more countries in addition to the exports to Russia and other South
Asian countries.
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote sales of soft
drinks through Pepsi-HLL network of vending machines and fountains. The major soft drink
brands in the Pepsi stable are Pepsi, 7UP, Mirinda, Tropicana and Acquafina.
As a major strategic departure, both MNCs were expanding their brand range. Consequent to
some diversifying moves, at present, the sales ratio of Coca-Cola between soft drinks and
other beverages is 95.5. The company intended to change this to 80:20 in the next three years.
Its juice brand, Maaza - acquired from Parle a few years ago - is being given a major thrust.
It has plans to go in for canned coffee, iced tea and purified categories under expansion
schemes. It has already launched its bottled water brand, Kinley, in the Indian market.
Besides, it is intending to acquire domestic brands in the non-carbonated beverages segment.
The global deal between Coca-Cola and P&G to form a snacks and beverages joint venture
company was reported to have slipped into rough weather. The P&G brand of potato wafer,
Pringles, seemed to be faced with distribution problems in India. P&G had globally tied up
with Coca-Cola to form a stand-alone juice and snacks company. The new firm is focused on
developing and marketing new juices, juice based beverages and snacks on a global basis.
The Sharjah-based Allied Beverages was pushing its Ahlan brand in India, having entered the
market in mid-2000. Its target was carbonated drinks market in PET bottles. Its plans were
to launch a PET bottle in the popular 300 ml category. Ahlan expected to gain a 12% share of
the total PET bottle market in northern India. Of the total market, PET bottle segment is
approximately 12%. Presently, Allied Beverages has a manufacturing unit at Dharuhera in
Haryana. The product range includes carbonated drinks - cola, orange, lemon and soda in
three pack sizes - 500 ml, 1500 ml and 2000 ml. Allied Beverages sells non-carbonated
drinks in 200 ml foodgrade cups priced at Rs 7 in its portfolio, available in four different
flavours. The company's future plans include pulp-based fruit drinks in flavours, which will
be available in 200 ml non-returnable glass bottles.
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes in favour
of Coco-Cola India, following the global takeover of Schweppes beverages by Coke. The
company still retains the bottling rights for the beverages.
It was noticed for the first time during the summer of 2004 that soft drink companies were
registering a slower growth in the sale of bottled water at 20% compared to 35% in case of
drinks.

Market Segmentation
Segment Share (%)
North 24
East 18
West 32
South 26
Rural 30
Urban 70

Market Structure
Product Variation Company Cola Drinks Share (%)
Thums Up 29
Coca Cola 25
Pepsi 18
Non Cola Drinks:
Gold Spot 2
Fanta 9
Mirinda 8
Limca 9
 Overall Colas 62
Lemon:
Cloudy 7
Clear 3
Orange 17
Mango 3

COMPANY PROFILE
PEPSICO
Pepsi was first introduced as "Brad's Drink", in New Bern, North Carolina, United States, In
1893 the pharmacy of Caleb Bradham, who made it at his drugstore where the drink was sold.
It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used
in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in
digestion and boost energy.

Organization structure:
About PepsiCo:
PepsiCo products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more than $66 billion in net
revenue in 2014, driven by a complementary food and beverage portfolio that includes Frito-
Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a
wide range of enjoyable foods and beverages, including 22 brands that generate more than $1
billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose—our goal to deliver top-tier financial
performance while creating sustainable growth and shareholder value. In practice,
Performance with Purpose means providing a wide range of foods and beverages from treats
to healthy eats; finding innovative ways to minimize our impact on the environment and
reduce our operating costs; providing a safe and inclusive workplace for our employees
globally; and respecting, supporting and investing in the local communities where we
operate.
PepsiCo India Region: Leadership through Performance with Purpose.
Our Mission and Vision
At PepsiCo we believe that business and society can thrive together. We are guided by
Performance with Purpose: delivering top-tier results in a way that sustains and respects
business, society and the planet.

Our Mission
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages
to evening treats. We are committed to investing in our people, our company and the
communities where we operate to help position the company for long-term, sustainable
growth.

Our Vision
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society – delivering what we call Performance with purpose.
In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize our impact on the
environment and reduce our operating costs; providing a safe and inclusive workplace for our
employees globally; and respecting, supporting and investing in the local communities where
we operate.
Wherever we do business, Performance with Purpose is our guide. We believe that delivering
for our consumers and customers, protecting the environment, sourcing with integrity and
investing in our employees are not simply good things to do, but that these actions fuel our
returns and position PepsiCo for long-term, sustainable growth.
Our goal is to nourish consumers with a range of products that deliver great taste,
convenience and affordability, from simple treats to healthy offerings in the communities
where we operate.

Large investor in India with strong brands:

PepsiCo has been consistently investing in India, in the areas of product innovation,
increasing manufacturing capacity, ramping up market infrastructure, strengthening supply
chain and expanding company’s agriculture programmes. The company has built an
expansive beverage and snack food business supported by 37 beverage plants and 3 food
plants. In two decades, the company has been able to organically grow eight brands each of
which generate Rs. 1000 crores or more in estimated annual retail sales and are household
names, trusted across the country.

A growing portfolio of enjoyable and wholesome snacks and beverages:

PepsiCo India’s diverse portfolio reflects its commitment to nourish consumers with a
diverse range of fun and healthier products and includes iconic brands like Pepsi, Lay’s,
Kurkure, Tropicana, Gatorade and Quaker. In addition to the recently launched Lay’s Maxx,
7UP Revive and Tropicana Slice Alphonso, the portfolio includes several healthier treats like
Quaker Oats, Tropicana juices, rehydrator Gatorade, Tata Water plus, Quaker flavoured oats
and Quaker NutriUpma and Quaker NutriPoha breakfast range with the power of wholegrain.

Foods
PepsiCo’s foods division Frito-Lay is the leader in the branded salty snack market. All its
products are free of trans-fat and MSG. It manufactures Lay’s potato chips, Cheetos extruded
snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The
company’s high-fibre breakfast cereal, Quaker Oats and low-fat and roasted snack options
like Aliva increase the number of healthy choices available to consumers.

Beverages
PepsiCo India’s expansive portfolio includes iconic refreshment
beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew, in addition to low-
calorie options such as Diet Pepsi, hydrating and nutritional beverages such
as Aquafina drinking water, isotonic sports drink Gatorade and fruit juices such
as Tropicana and Tropicana 100%.
 7UP
 Aquafina
 Duke's
 Gatorade
 Mirinda
 Mountain Dew
 Nimbooz
 Pepsi
 Slice
 Tropicana

2016 financial highlights:

Fiscal year is Jan - Dec. 2017-Q1 2016-Q4 2016-Q3 2016-Q2 2016-Q1

Pepsico Net Sales or Revenues 12.22B 19.95B 17.22B 16.89B 12.62B

Cost Of Goods Sold (COGS) 5.44B 9.36B 8B 7.78B 5.75B

Pepsico Gross Profit 6.78B 10.58B 9.22B 9.12B 6.88B

COCA-COLA
The Coca-Cola Company is a beverage company. “It owns or licenses more than 500
nonalcoholic beverage brands” (MintGlobal, 2014). It primarily serves sparkling beverages
but also wide range of still beverages such as water, juices, ready-to-drink teas and coffees,
and sports drinks. The Coca-Cola Company was founded in 1886, by John S. Pemberton and
served Coca-Cola at a local Pharmacy in downtown Atlanta, Georgia (The Coca-Cola
Company, 2014). In 1892, Asa Candler purchased and incorporated the Coca-Cola Company
as a Georgia Corporation (The Coca-Cola Company, 2014). Fourteen years later, under
Candler’s leadership, bottling operations began in Canada, Cuba, and Panama. In 1919, the
Coca-Cola Company was purchased by a group of investors led by Ernest Woodruff for $25
million. From its early years, Coca-Cola Company made significant innovations in the
beverage industry, such as six-bottle carton and steel 12-ounce cans. Additionally, it
continued to expand internationally (The CocaCola Company, 2014). In 1923, Robert W.
Woodruff was elected as president of the Coca-Cola Company, who also served as a
Chairman of the Board in 1939. The very first new product distributed by the Company was
Fanta Orange in Naples, Italy. After the success of this product, it established a diverse
portfolio through acquiring Minute Maid Corporation and adding a line of juice products. In
2008, “Sprite became the third Company product to sell more than 2 billion cases annually,
joining Coca-Cola and Diet Coke” (The Coca-Cola Company, 2014).

Current Situation:
Today, the Coca-Cola Company has been serving for more than 127 years and is one of the
largest beverage companies headquartered in Atlanta, United States. The company is engaged
in the production, distribution, and marketing of nonalcoholic beverages and syrups. It is
listed on the New York Stock Exchange (NYSE) and the Dow Jones Industrial Average
(DJIA) 2 (MintGlobal, 2014). On March 16, 2014, the share price of the Coca-Cola Company
is recorded at $38.17 under NYSE (The Coca-Cola Company). The Coca-Cola Company has
over 3500 products and serves over 200 countries. Some of its brands include Coca-Cola,
Sprite, Fanta, Diet Coke, Dasani, Minute Maid, Power Ride, Simply Orange, Fresca, and
Vitamin Water. Moreover, it has partnered with approximately 250 bottling companies
worldwide. “The company’s segments include Eurasia and Africa, Europe, Latin America,
North America, Pacific, Bottling Investments and Corporate” (MintGlobal, 2014). “Some of
the company’s customers include bottling and canning operators, distributors, fountain
wholesalers, and fountain retailers” (MintGlobal, 2014). Lastly, in the beverage industry, the
Coca-Cola Company competes with PepsiCo, Inc., Nestle, and the Dr. Pepper Snapple Group
Inc.
The company is growing its business via both organic growth and acquisitions. Recent years
saw the company increasing its investments in major emerging markets while making small-
 scale acquisitions in developed markets to enrich its health and wellness portfolio. Re-
franchising and re-organizing its bottling operations is also an important highlight of its
corporate activities.

Our Mission Our roadmap starts with our mission, which is enduring. It declares our purpose
as a Company and serves as the standard against which we weigh our actions and decisions.
• To refresh the world
• To inspire moments of optimism and happiness
• To create value and make a difference Our Values Our values serve as a compass for our
actions and describe how we behave in the world.

Our Vision: Our vision guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable, quality growth.
Goals and Objectives The Coca-Cola Company is a leader in the beverage industry with a
reputable brand and strong global presence. According to the Coca-Cola Company’s mission
statement and 2020 Vision, some of its goals include: • Increase profit by cutting down costs
through productive and efficient production facilities; • Focus on environment friendly
bottling production and enforce sustainability; 3 • Continue to diversify its portfolio through
innovations and partnerships, keeping consumer demands in mind; • Increase annual
operating income by 6-8% in order to double their revenue by 2020.

Coca cola Products

 Coca-Cola
 Diet Coke
 Coca-Cola Zero
 Thums Up
 Sprite
 Fanta
 Limca
 Maaza
 Maaza Milky Delite
 Minute Maid Pulpy Orange
 Minute Maid Guava
 Minute Maid Mango
 Minute Maid Mixed Fruit
 Kinley Water
 Kinley Soda
 Georgia Gold
 Schweppes Ginger Ale
 Schweppes Soda Water
 Schweppes Tonic Water

THEROTEICAL FRAMEWORK
Miles and Huberman (1994) defined a conceptual framework as a visual or written
product, one that “explains, either graphically or in narrative form, the main things to be
studied—the key factors, concepts, or variables—and the presumed relationships among
them” (p. 18).1 Here, I use the term in a broader sense, to refer to the actual ideas and beliefs
that you hold about the phenomena studied, whether these are written down or not; this may
also be called the “theoretical framework” or “idea context” for the study.
The most important thing to understand about your conceptual framework is that it is
primarily a conception or model of what is out there that you plan to study, and of what is
going on with these things and why—a tentative theory of the phenomena that you are
investigating. The function of this theory is to inform the rest of your design— to help you to
assess and refine your goals, develop realistic and relevant research questions, select
appropriate methods, and identify potential validity threats to your conclusions.
What is often called the “research problem” is a part of your conceptual framework, and
formulating the research problem is often seen as a key task in designing your study. It is part
of your conceptual framework (although it is often treated as a separate component of a
research design or proposal) because it identifies something that is going on in the world,
something that is itself problematic or that has consequences that are problematic. Your
research problem functions (in combination with your goals) to justify your study, to show
people why your research is important. In addition, this problem is presumably something
that is not fully understood, or that we don’t adequately know how to deal with; therefore, we
want more information about it. Not every study will have an explicit statement of a research
problem, but every good research design contains an implicit or explicit identification of
some issue or problem, intellectual or practical, about which more information is needed.
(The justification of
“needed” is where your goals come into play.)
The field of consumer behavior studies how individuals,
groups and organization select, buy, use and despise of goods, services, ideas, or experience
to satisfy their needs and desires understanding consumer behavior and knowing customer are
never simple.
The wealth of products and service produced in a country make our economy strong .The
behavior of human being during the purchase is being termed as Buyer Behavior. Customer
says one thing but do another. They may not be in touch with their deeper motivations.
The pie and column chart creates a visual model, which people can use when comparing
different data sets. Using different colours, pie and column charts divide information into
sections resembling pie slices which is accompanied by a number of percentages, and its size
changes accordingly. Graphs and charts condense large amounts of information into easy-to-
understand formats that clearly and effectively communicate important points.
 In the near future consumers desires more and more bikes to be introduced in the market and
at the same time they should maintain quality because most of the consumers prefer pulsar
bike by quality and price.

DATA ANALYSIS&INTERRETATION

1. Which category of products do you like most?

TABLE:
Response Number of respondents Percentage of respondents
Soft drinks 20 35
 Juice 19 33
Others 16 21
Total 55 100
GRAPH:

40

35

30

25

20
Percentage of respondents

15

10

0
Soft drinks Juice Others

Interpretation / Analysis:
According to my survey out of 100 respondents 35% of the respondents prefer soft drinks.
The remaining 32% respondents prefer juice and 31% respondents prefer other products.

2. In soft drinks which brand do you prefer mostly?

TABLE:

Response Number of respondents Percentage of respondents

 Pepsi 20 35
Coco cola 19 33
Local brands 12 21
Not specified 4 11
Total 55 100

GRAPH:

40
35
30
25
20
15 Percentage of respondents

10
5
0
Pepsi Coco cola Local brands Not specified

Interpretation / Analysis:
According to my survey, out of 100 respondents,35 % of the people prefer Pepsi most then
coco cola with around 33% followed with local brands & not specified with 21% & 11%
respectively.

3. Which factor related to product attracts you most?

TABLE:
Response Number of respondents Percentage of respondents
Price 16 30
 Quality 22 40
Taste 6 10
Celebrity endorsement 10 18
other 1 2
Total responses 55 100%

GRAPH:

sales
45
40
35
30
25 Percentage of respondents

20
15
10
5
0
Price Quality Taste Celebrity Endorsement

Interpretation / Analysis:
According to my survey out of 100% respondents, 40% of the respondents choose the
product on the basis of quality, 30% respondents choose according to the price, 10%by taste,
18% by celebrity endorsement and the remaining 2% on other basis.

4. How frequently do you come across advertisements that feature celebrities?

TABLE
 Response Number of respondents Percentage of respondents

Often 8 15

Sometimes 19 35

Rarely 8 50

Never 0 00

TOTAL 55 100

GRAPH:
60

50

40

30
Percentage of respondents

20

10

0
Often Sometimes Rarely Never

Interpretation / Analysis:According to my survey 50% of the respondents rarely come across

advertisements that feature celebrities, 35% sometimes, 15% often. There are nil who never
come across advertisements that feature celebrities
5. Do you like to see any celebrity endorsing your brand?
Response Number of respondents Percentage of respondents
Yes 47 85
 No 8 15
TOTAL 55 100
TABLE:

GRAPH:
90

80

70

60

50
Yes
40
no
30

20

10

0
Number of customers Percentage of
respondants

Interpretation / Analysis:
From the above table it is clear that 85% of the respondents are like to see any celebrity
endorsing their brand where 15% of the respondents are unwilling.

6. In case of soft drinks which celebrity person you like most?

TABLE:
 Response Number of respondents Percentage of respondents
Film stars 20 37
Sports stars 21 38
politicians 5 9
Famous personalities 9 16
TOTAL 55 100

GRAPH:
40

35

30

25
Film stars
20 Sports stars
15 Politicians
famous personalities
10

0
Number of Percentage of
customers respondants

Interpretation / Analysis:
Majority of the respondents choose film stars with 37% and sports stars with 38%.The
remaining 9% choose polititians,16% choose famous personalities.

7. Do you associate the celebrity directly with the quality and the performance of the
product?
TABLE:
Response Number of respondents Percentage of respondents
Yes 1 2
Every time 2 4
Not really 14 26
No 19 34
Never 19 34
TOTAL 55 100

GRAPH:

40

35

30

25
Yes
20 Every time
Not really
15 No
Never
10

0
Number of cus- percentage of
tomers customers

Interpretation / Analysis:
Above table clearly shows us that most of the respondents i.e, 34% of the respondents never
associate the celebrity directly with the quality and the performance of the product.
8. Is celebrity endorsement making you loyal towards soft drinks?

TABLE:8
 Response Number of respondents Percentage of respondents
Yes 35 63
No 20 37
TOTAL 55 100

GRAPH:
70

60

50

40
Percentage of respondents
30

20

10

0
Yes No

Interpretation / Analysis:
By the above table we can clearly say that celebrity endorsement sometimes make
you loyal towards soft drinksi.e, 63% of the respondents agreed with the statement and 37%
did not agree.

9. For how long do you associate a particular celebrity to a particular brand?

TABLE:
Response Number of respondents Percentage of respondents
Temporary 36 66
Permanent 8 14
Can’t say 11 20
TOTAL 55 100
GRAPH:

70

60

50

40

30

20 TemporaryPermanent
Permanent
10 Can’t say

0
s s
er er
m m
sto sto
f cu f cu
ero geo
m
b nt
Nu r ce
Pe

Interpretation / Analysis:According to my survey66% of the customers like to associate a

particular celebrity to a particular brand temporarily, 14% of the customers like to associate a
particular celebrity to a particular brand permanently and the remaining 20% can’t say
anything regarding this.
10. Will you stop buying a brand if your favorite celebrity endorsing it got involved in a
scam?
TABLE:
Features Number of respondents Percentage of respondents

Strongly disagree 34 62
Disagree 16 29
Neutral 3 5
Agree 1 2
Strongly agree 1 2
TOTAL 55 100
GRAPH:
70

60

50

40

30 Percentage of respondents

20

10

0
Strongly Disagree Neutral Agree Strongly
disagree agree

Interpretation / Analysis:
62% of the respondents never purchase the product because ofcelebrities loyalty, 5% are neutral, 2% of
the respondents always purchasethe product because of their loyalty towards celebrities.
11. If celebrity stop endorsing for product, will you continue the usage of product?

TABLE:
Response Number of respondents Percentage of respondents
Yes 52 94
No 3 6
TOTAL 55 100
GRAPH:
100

90

80

70

60

50
Percentage of respondents
40

30

20

10

0
Yes No

Interpretation / Analysis:
According to my surveyif celebrity stop endorsing for product, 94% of the respondents
continue the usage of product, the remaining 6% of the respondents stop the usage of the
product.

12. Overall would you consider the presence of celebrity endorsement as positive or negative
when making a purchase decision of soft drinks?

TABLE:
Response Number of respondents Percentage of respondents
Positive 45 81
Negative 10 19
TOTAL 55 100
GRAPH:
90
80
70
60
50
40 Percentage of respondents

30
20
10
0
Positive Negative

Interpretation / Analysis:
91% of respondents said that they arepositive when making a purchase decision of soft drinks, the
remaining 19% of the respondents have negative opinion on celebrity endorsementswhile making a
purchase decision.
 FINDINGS
After completing survey I found that:
 The research shows that the soft drinks are almost equally preferred with juices.
 From the research Pepsi and coca cola brands are preferred more compared to other brands.
 From the research maximum consumers see the quality of the product.
 Advertisements that feature celebrities playan important role in increasing the sales of the
product.
 The research shows that the celebrity endorsement is playing a key role on Indian consumers.
 Film stars and sports stars both are equally effective in celebrity endorsement.
 There is no comparison of quality and performance of product with the celebrity.
 Out of 100 respondents 63 respondents said that celebrity endorsement makes them loyal
towards the soft drinks.
 Most of respondents associate a particular celebrity to a particular brand for short period of
time.
 Suggestions

On the basis of survey there are some recommendations for the company which can easily
solve the problem what the company is facing.
 Looking towards the future, the most important recommendation to soft drink industry is to
continue product innovation and expansion of their product line.
 To sustain or increase the global market share.
 To maintain and try to increase their brand loyalty.
 Increase the number of dealers.
 Provide the dealership on the basis of their past experience.
 Focus on publicity instead of such aggressive advertisements.
 Provide special outlets to the customers.
 Provide outlets in the remote areas.
 Avoid large number of middle men or channels and develop more effective own channel of
distribution.
 Conclusion
In India celebrities’ position in the mind of people is very high. People looks as their
Idol and millions of people follow them. In all region of the country different celebrities
follow by their fans like a god. In cricket Sachin Tendulkar ,MsDhoni, ViratKholi . In
bollywood male endorser and female endorser both effective in ads like Amitabh
Bachchan ,Shahrukh Khan , Salman Khan ,
KetrinaKaif ,BipashBasu ,AshwryaRaiBachchan .These celebrities also using their name for
endorsement very effectively.
Celebrity endorsement in soft drinks is playing a key role for the soft drinks companies. Soft
drink is product which purchase for enjoyment. It is not necessary product for the consumer.
So all soft drink companies are highly concentrate on advertisement campaign especially for
TV advertisement. For all soft drink companies like Pepsi, coca cola use celebrity as a market
strategy and got positive result. Consumer is highly affected by celebrity when he/she going
to buy a soft drink. That show how celebrity endorsement is effective with respect to soft
drinks.
 BIBILIOGRAPHY

References:
Philip A.Stroke(2009), “impact of celebrity endorsement on stock prices”, journal of
consumer research, Vol 14 No.March.
Philip kotler: “marketing management”,pearson publishers, New Delhi,2013.
http://www.coolavenues.com/know/mktg/surabhi6.php
http://www.thehindubusinessline.com/2008/04/08/stories/2008040851250500.htm
http://timesofindia,indiatimes.com/articleshow/1507842.cms
 QUESTIONNAIRE

“CONSUMER BEHAVIOUR TOWARDS CELEBRITY

ENDORSEMENT”

Personal Information:
NAME:
EMAIL ID:

GENDER: □ MALE □ FEMALE

AGE □18-25 □26-32 □ 32-39 □Above 40

What is your occupation?

□ Student □employee □business □other

1. Category of products do you like most?

□ Soft drinks □ juice □ other

2. In soft drinks which brand of soft drinks do you prefer most?

□Pepsi □coco cola □ local brands □not specified

3. Which factor related to product attracts you most?

□Price □ quality □ taste □celebrity endorsement □other

4. How frequently do you come across advertisements that feature celebrities?

□ Often □ sometimes □ rarely □ never

5. Do you like to see any celebrity endorsing your brand?

□Yes □ no
6. In case of soft drinks which celebrity person you like most?

□Film stars □sport stars □politician’s □famous personalities

7. Do you associate the celebrity directly with the quality and the performance of
theproduct?

□Yes □every time □ not really □no □never

8. Is celebrity endorsement making you loyal towards soft drinks?

□Yes □no
9. For how long do you associate a particular celebrity to a particular brand?

□Temporary □ permanent □can‘t say

10. Will you stop buying a brand if your favorite celebrity endorsing it got involved in a
scam?

□Strongly disagree □ disagree □ neutral □ agree □ strongly agree

11. If celebrity stop endorsing for product, will you continue the usage of product?

□Yes □ no
12. Overall would you consider the presence of celebrity endorsement as positive or
negative when making a purchase decision regarding soft drinks?

□Positive □negative