The history of celebrity endorsement of products started since late 19th century. Celebrity endorsement has been identified to be one of the most viable methods of advertising in recent times. It started in India when Hindi films and TV stars as well as sportsperson began encorcing the brands. First endorser in India was Farokh Engineer for Bryl Cream. The revenue Rs. 100 crore is earned by the Indian Cricket team for endorsing. Cricketers starting from Kapil Dev to Dhoni all of them endorse for different brands. In the beauty and wellness space per se, it's almost like a winning formula that ensures success. However, the underlying prerequisite is that the brand and celebrity fit should match in order to lend credibility and influence the buying behaviour of a consumer.
The focus of this dissertation is to understand the impact of celebrity endorsement in the purchasing decision of wrinkle lift cream.
My research focuses on the Indian consumer who has shown a very different and interesting way of recogninsing the celebrities and stars. In place like India where stars and cricketers are idolized looked up to, marketers can see this opportunity to create hype about their product and create a wide consumer base. Even beauty creams use these tactics to attract their consumers.
The study uses qualitative research style to collect data, using interviews as a form of data collection method.
This research helps providing how celebrity endorsement impacts on the Indian purchasing decision.
Background Research-Today Celebrity Endorsements is a billion dollar industry today with companies signing deals with celebrities aiming to stand out from the clutter and give them a distinctive and significant position in the mind of consumers. (Temperley and Tangen, 2006).
Across the world, celebrities have been used for a variety of brands. India has opened its markets only recently and its witnessing an era of competition that it never experienced before (Ramesh, 2001).
In today's very volatile economy, an increasing number of markets are signified by overcrowding of markets with products and speedy entry and exit of products into the marketplace (Mustafa, 2005). As a result of such overcrowding, it is a challenge for firms releasing their products, to capture consumer attention where consumers are being flooded with information from firms about their brand popularity and product features (Mustafa, 2005).
Friedman & Friedman (1979) suggest that a celebrity endorser is someone known to the public for their achievements in areas other than of the product class endorsed. Undoubtedly, the celebrity endorser could reinforce a company's marketing communications, positioning and represent its brand (Erdogan, 1999). However, the main purpose of using celebrity endorser is to influence consumer behavior, especially purchase intention that is directly linked to revenue of the company. Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g. athletes, actors) in the hope that celebrities may boost effectiveness of their marketing for at least a century.
One of the early examples is Queen Victoria's endorsement of Cadbury's Cocoa (Sherman 1985). Regardless of these hindrances, celebrity endorsed advertising is an important marketing tool which when used at the correct time, may prove to be far more rewarding.
Do all companies benefit from brand endorsement:-It is not a compulsion that every brand, which has a celebrity to endorse it's product benefits. There are many which earn huge profits, for example, Santro, a product of Hyundai motors whose sales sky-rocketed after Shahrukh Khan was signed for the endorsement. It was a revolution in the mass –market. On the other hand, when Shahrukh was endorsing Kolkata Knight Riders (KKR) in IPL, Nokia was piggy banking on the success of KKR in IPL, which unfortunately was not a winner.
All this years when India is the one of the fast growing economy in the world and having a great potential in the advertising and marketing industry. Most of the major companies are investing a large amount of money in endorsing a celebrity.
The main objective of my project is:-
• To focus on the affects of celebrity endorsement on the buying behaviour of wrinkle lift rejuvenating cream.
• Find out who are maximum exposed to the advertisements also to calculate the accurate amount of effect on these housewives.
• Find out their preference over celebrity and non-celebrity advertisements
• Analyse the consumers believe that there should be a connection between the product and celebrity
• Find out the growth of this industry as well.
Each and every one of us is exposed to a large number of advertisements daily. And to a certain extend these ads do have a prolonged effect on our mind and helps the company to strengthen their brand name in the mind of the audience.
Endorsing a celebrity for a brand is a much more recent trade which we can widely see from around 10 years. The main reason behind this is that, today in the world of exclusive and hard core completion where there are lots and lots of brands available to the customer, it is bit difficult for the company to create and establish their own identity.
According to me endorsing a celebrity for a rejuvenating cream can be a good idea, because most of their target audiences are 30+ her age, and are exposed to ads very frequently.
The main sample frame of my research is housewives, as they are most exposed to ads and luring with is easily accomplished by any companies using ads.
According to me effect of celebrity endorsement is governed by many factors such as education background, media exposure, family income and many more.
This chapter introduces the concept of celebrity endorsement, providing a definition. Sequentially it talks about celebrity as spokesperson of companies and also draws out the positives and negatives of celebrity endorsements. Furthermore it also discusses the different models on effectiveness of celebrity endorsement strategy along with talking about the impact of multiple celebrity endorsement. Lastly it provides an Indian perspective on celebrity endorsement in India.
• McCracken (1989) provides a clear definition describing celebrity endorser as “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (p.310).” He further explained celebrity endorsement as a “ubiquitous feature of modern marketing.”
• • Friedman and Friedman (1979) describe celebrity endorser as an individual who is known to public for his or her achievements in areas other than that of product class endorsed.
Celebrity endorsements are an omnipresent feature of present day marketing (Meenaghan and O‟Mahony, 1998). The billions of dollars spent on celebrity endorsement contracts illustrates the importance celebrities play in the advertising industry (Kambitsis et al., 2002). According to research conducted by Stephens and
Rice (1998) in USA showed that celebrity endorsed advertising increased from 15% to 25% between 1979 and1997 for all advertising. The use of celebrities in advertisements is not a recent phenomenon (Kaikati, 1987). Celebrities have been endorsing products since the mid nineteenth century. For instance one of the early examples involves Queen Victoria associating with Cadbury Cocoa (Sherman, 1985). With the emergence of cinema and later television more and more celebrities from different background were used commercially in television commercials and print advertisements. Agrawal and Kamakura (1995) cited that approximately 20% of all television commercials in USA feature famous people. Shimp (1997) further justifies Agrawal and Kamakura point, through his research findings that around 25% of all US-based commercials used celebrities. On the contrary from a UK perspective, a report in Marketing indicated that advertising which used celebrities was a key to gaining national headlines (Erdogan, 1999).
Friedman and Friedman (1979) describe celebrity endorser as an individual who is known to public for his or her achievements in areas other than that of product class endorsed. These celebrities act as roles models for a large group of people in terms of their qualities such as trustworthiness, attractiveness and likeability. Marketers exploit these qualities in a celebrity to influence the consumers purchase decision, thus making the advertisement believable to the consumers. Erdogan (1999) cites that celebrities can be used to communicate and reinforce companies marketing communications and positioning effectively. Today, use of celebrities as part of marketing communications strategy is fairly common practice for major firms in supporting corporate and brand imagery (Erdogan, 1999).
Population:- The entire set of relevant units of analysis, or data, is called the population. It is the aggregate of all cases conform to some designated set of specification. And for my research my population was the entire lady above the age of 30 years to under the age of 55.
Parameter:- A particular value of population such as the median income or level of formal education knows s parameter. In my research I kept educational background, media exposure, and influential factors as the parameter.
Sampling Unit:- A single member of sampling population is referred as sampling unit.
Sampling Technique:- I am using probability sampling for my research.
Probability sampling: - probability sampling is that for each sampling unit of a population, one can specify the probability that the same probability of being included in the sample.
• Simple Random Sampling: - It is the basic probability sampling design, and it is incorporated into all the more elaborate probability sampling design. Simple random sampling is a procedure that gives each of the total sampling units of the population an equal and unknown nonzero probability of being selected.
Questionnaire:- The foundation of all questionnaire. The questionnaire must translate the research objective into specific questions; answers to such question will provide the data for hypothesis testing. The questing must motivate the respondent to provide the information being sought. The major considerations involved in formulating questions are their content, structure, format and sequence. Find my questionnaire attached at the end of the project.
Sample Size:- It is the size of the subset of population whom I am going to include in my research. My sample size was 50.
Analysis of Survey
According to the survey, 16 out of 50 women use Ponds, and 20 out of 50 women use Olay, while 10 out 50 women use Garnier while 4 women use other creams or don't even use any cream. This results to the usage of 32%of Ponds, 40%of Olay, 20%of Garnier and 8% of other cream.
Garnier:- There is about 20% of women using Garnier as their daily cream to fight against the signs of ageing..If we go through the customer profile and satisfaction of Garnier.
Educational Qualification:- Most of the user holds a bachelor degree.
Customer satisfaction :- There is about 64% of the customer who are completely satisfied as they prefer to suggest the product to their friend and relatives while 21.42% may suggest the product while other 14.2% wont suggest the product to their friends or relatives.
Most influential Factor to buy Garnier :- Influential factor is the most important aspect of my project brand name, price and word by mouth constitute as the main influential factor for buying garnier wrinkle lift or rejuvenating cream while some of them are even influenced by celebrity endorsing it.
Olay :- Olay is much ahead of any other rejuvenating cream, from their competitors. Its total sale is about 40%.
Educational background:- Most of the user of Olay holds bachelor degree while some of them also have a master degree. That is 75% of Olay customer possesses bachelor degree, while 25% have masters degree.
Customer Satisfaction:- In case of customer satisfaction only 50% of customer is satisfied with the product as they will surely suggest their friends and relatives about the product, while 40% may suggest the product. On the other side 10% of them are not at all encourage their friends and relatives to buy them.
Influential Factor to buy Olay:- Brand name, ingredient and celebrity endorsement is the most influencing factor in the product purchase behavior of Olay.
Celebrity Endorsement:- while filing the questionnaire, on coming to question related to celebrity endorsement there was 40% of consumer who think celebrity endorsement bring in profit to the company, while 20% said that they don't have any idea regarding this issue, while on other hand 20% was totally against it. This indirectly conforms that this 40% consumer, according to whom company gains profit, is to a some extend effected by the celebrity but don't agree that they are, but unconsciously, somewhere down the line they are to a great extent motivated by the celebrity endorsement
Ponds:- Around 32%of women use ponds wrinkle lift. If we go through the educational background of the user and the influential factor.
Educational background and influential factor:-All the user of ponds holds a bachelor degree. And influential factor of about 90% of them is brand name, while according to 10% price of the product influences those most. Interesting most of the ponds user are least exposed to internet media as most of them don't even have their email id.
Customer Satisfaction:- 74% of women using ponds are completely satisfied and are ready to suggest the product to friends and relatives. While 24% of women say they may suggest the product to their friends or relatives.
The main of my project is to discuss about the influential factor of buying behavior of rejuvenating cream. There are various factors which determine the sale of a particular product.
So if we discussion about the top three wrinkle lift rejuvenating cream of the market in India for middle class i.e. Garnier wrinkle lift, Olay total 7 and Ponds age miracle. Major influencing factor of the entire above brand is price, brand name or celebrity endorsement.
If we go through the price of these products cost of 18gnms of Garnier is 130 bucks and of 40gms of Garnier is 250 bucks. And of Ponds age miracle is 450 bucks for 50gms and if we look at Olay it charges about 349 bucks for 20gms. Which means 1gm of Garnier are for 7.22 rupees and Ponds for rupees 9 and Olay costs around 17.45rupess.
This means Olay is the most expensive wrinkle lift cream in the market.
And Olay has maximum share of the market. So price cannot be the only factor when it comes to buy any beauty product.
Effect of celebrity on the buying behaviour of the consumer is also governed by many factors such as
1. Educational Qualification.
2. Monthly Income of family
3. Media Exposure.
These factors affect the extent to which the audience will trust ad and celebrity endorsements.
Educational Qualification:- Educational qualification is inversely proportional to the trust factor of ads. It is a common scenario that more educated people will not easily trust any product because a celebrity is endorsing. They usually tend to look at the ingredient or other aspects of the product.
Monthly Income of Family:- When it comes to the buying behavior of a housewives, monthly income plays a major role in it. Monthly income indirectly denotes the media exposure and financial capabilities of buying a certain product.
Media Exposure:- It is in fact the most important factor. During my research I came across around 30% of women who says they don't believe in using rejuvenating cream. And they consider them as a myth or wastage of money. While many of them still use fair and lovely of ponds cold cream. So media exposure is quite important factor to change the mental setup of the audience.
Children:- when it comes to buying any product suggestion of children is always counted no matter what you are buying. Children nowadays have suggest while buying mobile phones and cameras. So when it comes to buying a beauty product of housewives educational background and media exposure of daughter is the most important aspect and effect the buying behavior to a great extends.
Every research has certain drawbacks and therefore it is necessary to incorporate them in the thesis to achieve a true perspective of the research topic. The following are a few constrains which I faced during my research study.
The research subject size used in this research is small in number and does not in any way represent the larger population of India. Hence the results of this study cannot be judged to say justify the larger population. The results may demonstrate difference.
The research subject all come from similar age ground and economy class, therefore they do not represent the Indian nation, who has a people from diverse socio-economic strata. The results obtained from this research therefore could not be used to sample India as a whole nation.
Another limitation of this research is the age group of the respondents is restricted to between the ages of 30 to 55 years. Therefore the views of these participants cannot sample against the voices of Larger Indian population. Also because of restricted age group in the research, there may be a certain type of point of view, which may not be the same when compared with other age groups point of views.
If the people in the late 60's were to be interviewed then, then it would result in a different opinion and final result. Also the occupation of these participants is similar. Therefore it may not seem an adequate representation of the various different walks of life people come. It may also be the limitation of this research. Another important limitation of this research is the time constrain while doing this study.
Due to the restriction of time more participants could not be interviewed, providing for a better research sample and having more data to analysis and then to some up with better findings. Since the study uses qualitative approach for ascertaining and analyzing the data, which proves satisfactory, but it is also important to come with quantitative data to come up with accurate figures and statists.
This helps in ascertaining a wider and comprehensive data sample. Another flaw in the research is that it uses interview style of data collection, which is appropriate. But at times it's said that the respondents do not say what they want to say, rather they say what the interviewer wants to hear (Denzin and Linclon, 2002). Hence the respondent's views may be influenced by others, resulting in inaccurate data findings.
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