1

CHAPTER – 1

INTRODUCTION TO CELEBRITY ENDORSMENT WITH RESPECT TO

FMCG PRODUCTS MARKETED IN INDIA

1.1 Introduction to the concept of celebrity

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.

Among the classic forms of celebrities are actors, models, television-serial

stars, sports person etc. Further “celebrity” refers to “an individual who is known to

the public, such as actors, sport figures, entertainers etc. For his or her achievement in

areas other than that of the product class endorsed” (Friedman and Freidman, 1979).

All media have become stuffed with celebrity. The newsreader on TV, the magazine

editors and the lead journalists have become celebrities too. TV commercials or print

advertisements that feature stars and appear in this media environment fit in naturally

with it, so it's hardly surprising that up to 20% of all advertising employs celebrities.

All the evidences suggest that these campaigns are very effective in promoting the

corporate, product and service brands with which they are aligned. (Hamish Page.10)

They are usually known to the public for their accomplishments in areas other than

the product endorsed by them. (Friedman & Friedman 1979).

According to Marshall (1997), celebrities are celebrated individuals that are

unique, in some way, from the average citizen. Boorstin (1961) defines a celebrity as

someone “who is well-known for their well-known-ness”. According to Fredman,

Termini and Washington (1976), a celebrity is sometimes a sports figure, actor,

comedian or other type of entertainer. According to Miciak and Shanklin (1994), a

celebrity can be an animated character like Fred Flinstone, or an animal. In the Indian

context, this stands true for classic forms of celebrities such as actors like

Salmankhan, Shah Rukh Khan, Cricketer like Sachin Tendulkar and entertainers like

Maliaka Arora Khan, but also for less obvious groups such as businessmen like the

Tatas, Malayas & Ambanis or politicians like Rahul Gandhi (Schlecht 2003).

However, unlike heroic figures, the modern celebrity may not have achieved anything

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exceptional except, merely, public attention and a product of media representation

(Tuner, 2004). This is evident in contestants from reality shows, such as Big Brother

and Survivor. According to Tuner (2004) fame is developed, not by the achievement

of great things, but, by differentiating one‟s personality from those of their

competitors. Consequently entertainers lead the ranks of celebrity “because they are

skilled in the marginal differentiation of their personalities” (Boorstin, 1961). One of

the “know all” resources that keep our society up-to-date about the latest celebrity

news is the tabloid press. As noted by Marshall (1997), the tabloid press gives us an

outrageous twist on the connotation of the celebrity because it presents the general

public a possibility that these “unique talents,” that makes one a celebrity, are

vulnerable. As a result, these public individuals are subject to the ups and downs in

their career, and ultimately their life. As a result, these ups and downs can influence

the brand or product that has been endorsed by a particular celebrity.

According to McCracken (1989), the success of a celebrity endorsement has to

do with the cultural meaning of the celebrity endorser. These meanings vary across

status, class, gender and age. In addition, unique celebrity personalities and lifestyles

can influence the success of an endorser depending on cultural norms. (McCracken,

1989). These and other source characteristics are significant to advertising research

and, more specifically, research that focuses on the effect of celebrity endorsements.

In the view of (Phalang ing, Fumitaka Furuoka, 2007) the word “celebrities”

promises excitement, amusement and fun. They are constantly the focus of attention

of thousands of people. People are curious about their lifestyles, secrets, and

personalities. They even want to know what products the celebrities usually consume.

For marketers, it offers a potential to make profit.

1.2 Introduction to the concept of Non-Celebrity

Every advertisement does not require a celebrity to endorse it. There are many

advertisements which have never felt the need of doing so. For example, Fevicol,

Vim, Lifeboy, Amul, Iodex, Vicks-veporub etc. Rather,there are a few noted ads

where the owner is seen endorsing their own commodity. Such as Mahashay

Dharampal of MDH Masala and Rajeev Reddy of Country Club. Although

companies may spend ample time and energy finding a celebrity whose image

corresponds well with their brands, endorser concerns often do not end there.

Problems can arise when the famous person is involved in incidents that change, or

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even damage, his or her reputation. These circumstances, referred to here as "negative

events" can range widely from accidents that hinder a celebrity‟s ability to perform to

exposure for substance abuse.

When an organization cannot find a celebrity that is in agreement with the

organization‟s brand image, they can create their own “celebrity” endorser, i.e. a

created spokesperson, either real people acting out a role or animated/imaginary roles.

A created spokesperson has some of the following advantages (Erdogan, 1999and

Tom et al, 1992). Created spokespersons have a higher degree of control and are less

costly than celebrities and marketers have the possibility to create a better fit between

the product and the endorser. The endorser‟s longevity will be for as long as the

method is successful for the organisation, whereas “real” celebrities have limited

longevity. The same created spokesperson can be used indefinitely and adapted to

changing circumstances. According to Tom, Clark, Elmer, Grech, Masetti and

Sandhar (1992) the created spokesperson‟s effectiveness is in establishing a lifelong

link with the product.Tom et al (1992) suggest that marketing professionals should

make use of created endorsers when the advertising objective is to create a long-term

link between the endorser and the organisation. It should also be noted that celebrities

would be the better choice when the organisation is interested only in establishing a

short-term memorable link.

In the Indian context, very few of the participants have actually bought

products endorsed by celebrities. Influence on purchase was observable only in the

18-25 age group. Even when products were bought, it was only after imperceptible

differences between the brands existed or the products were low-involvement and

inexpensive such as sodas (Somdutta Biswas, Mahmood Hussain, Kathleen ODonnell,

2009). Participants across all age groups conceded that they bought products endorsed

by celebrities when they were younger in their teens. All believe that celebrity

endorsement help bring the product to the consideration set of brands (Somdutta

Biswas, Mahmood Hussain, Kathleen ODonnell, 2009). In a set of laboratory studies,

Till and Shimp (1998) find that negative information about a celebrity can damage

product evaluations through the associative link between brand and celebrity. Because

negative events occur, companies must decide how to deal with affected celebrities.

Over the years, non-celebrity based advertising had built a sharply fixed personality

for brand Perk-fun, mischievous, bubbly and simply “perky”. With one of the original

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Perk models, Preity Zinta, who embodied very similar values, has only further

strengthened the brand‟s imagery.

1.3 Celebrities from India

The late '80s saw the beginning of celebrity endorsements and presence in advertising

in India. Hindi film and TV stars as well as sportspersons began encroaching on a

territory that was, until then, the exclusive domain of models. There was a burst of

advertising, featuring stars like Kavita Chaudhary (Lalitaji-Surf), Deepika Chikhalia

(Nirma Detergent Soap), Kapil Dev (Palmolive shaving Cream) and Sunil Gavaskar

(Dinesh Suitings).

In 2012, Salman Khan had a year like no other. He set the box office on fire

with „Ek The Tiger‟, raking in 198 crore in gross collections across the country. It

was the largest box office hit that year by a wide margin. Salman also ratcheted up his

popularity with the Being Human Foundation that won him the goodwill of millions

of fans. Shah Rukh Khan earned nearly ₹150 crore from his endorsement of 23

brands.1 The list of Forbes, which includes movie actors, television stars, authors, film

directors, musicians, singers, sportspersons, comedians and models are compiled on

the basis of both money and fame. Fame is defined as visibility in print, television,

and online, plus social media power, which was by looking at each celebrity‟s

presence on Facebook and Twitter. Most celebrities are between 30 and 50 years old.

However, that hasn‟t prevented a clutch of 12 celebrities under 30, like Saina Nehwal,

Virat Kohli, Anushka Sharma, Mary Kom and Shreya Ghoshal, from breaking into

the top 50. There‟s only one musician who has managed to break into the top 20: AR

Rahman‟s soaring popularity isn‟t just an affirmation of his skills as a world-class

musician, but also a function of his growing presence on social media. Rahman has

more than 10 million Facebook fans. This means that every post of his holds the

potential to go viral almost instantly.

http://forbesindia.com/article/2013-celebrity-100/shah-rukh-khan-tops-forbes-india-celebrity-100-list-second-time-

in-a-row/36741/1

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1.4 Major categories of celebrity

Table: 1.1 categories of celebrity

Category Famous Indian celebrities (Examples)

Sport stars /Athletes Sachin tendulkar (Cricketer), Milkha Singh (Athlete),

Marykom (Boxer), Sania Mirza (Tennis), Geet shethi

(Billiard) Abhinav Bindra (Shooter), Sania Nehval

Film stars Amitabh bachchhan, Shahrukh khan, Salman Khan, ketrina

kaif, Rekha, Rajnikant

Film Producers Ekta Kapoor, Subhash Ghai, Mahesh Bhatt, Prakash Jha

Television stars Kapil sharma ,Ronit Roy, Sanya Irani, Ankita Lokhande,

Hiten Tejwani, Vivin Dsena, Dipika Samson, Ram kapoor,

Writer/Poet/ Literary Javed Akthar, Chetan Bhagat, Shiv Khera, Gulzar, Prasoon

Joshi

Artists/Cartoonists R.K.Laxman, Mario Miranda, M.F. Hussain, Satish

Acharya

Chefs Sanjeev Kapoor, Tarla Dalal, Harpalshing Sokhi

Singers/Rappers Lata Mangeshkar, Kishorkumar, Mukesh, Jagjit singh, YO

YO Honey singh, Arijit, Sonu Nigam

Musicians A.R. Rehman, Vishal Bhardwaj, Shankar-Ehsaan-Loy

Entrepreneurs/ Business

tycoons

Azim Premji, Narayan Murti, Ratan Tata, Ambani

brothers, Kumar manglam Birla, Vijay Malya,

Fashion Models Yami Gautam, Rithvik Dhanjani, Malaika Arora Khan

Fashion Designers Manish Malhotra, Ritu Beri, Rohit Bal, Tarun Tahiliani

Politicians Narendra Modi, Laloo Yadav, Arvind Kejrival, Sonia

Gandhi, Jailalitha

Religious leaders Baba Ramdev, Shri Ravishankar, Satya sai baba

Media persons Tarun Tejpal, Karan Thapar, Rajddep Sardesai, Ravish

Kumar, Rajat Sharma

Social activists Anna Hazare, Megha Patker, Madhu Kishwar

Source: compiled by researcher.

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1.5 Top Indian Celebrities

As per the Forbes India Celebrity 100 Special Issue which was published in the year

of 2013, The Celebrity 100 measures money and fame, which includes estimated

entertainment related earnings from October 1, 2012 to September 30, 2013, and how

visible they are on print, television and internet (including social media).

Table1.2: Top 10 celebrities of India by Forbes Celebrity – 20132

Name of Celebrity Rank (2013) Earnings ( Crore)

Shah Rukh Khan 1 220.5

Mahendra singh Dhoni 2 155.32

Salman Khan 3 157.5

Sachin Tendulkar 4 94.32

Amitabh Bachchan 5 147.5

Akshay Kumar 6 118.13

Virat Kohli 7 57.31

Ranbir Kapoor 8 68.6

Katrina Kaif 9 63.75

Hritik Roshan 10 62.5

(Source:forbesindia.com)

Shah Rukh Khan retained his number one spot in the 2nd

edition of Forbes India‟s

Celebrity 100 List, a ranking of India‟s most powerful celebrities. Shah Rukh,

continues to be on the top on the back of his earnings, even though star cricketers

scored above him on the fame rankings.

Mahendra Singh Dhoni (2), with his immense popularity and endorsement

deals, moved up from the third spot last year, switching ranks with actor Salman Khan

(3), who slipped to third place. They are followed by Sachin Tendulkar (4), who

moved up from No (6) and Amitabh Bachchan (5) who retained his position,

completing the top five on the list. Film actors - all male, with the exception of

Katrina Kaif (9) dominate the Top Ten in 2013. Cricketer Virat Kohli (7) has already

achieved more on the cricket field than most do in their entire careers. He has also

2 http://forbesindia.com/article/2013-celebrity-100/shah-rukh-khan-tops-forbes-india-celebrity-100-list-

second-time-in-a-row/36741/1

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brought to the sport an aggression that promises to transform the team, and for the

better. That attitude coupled with remarkable skill has made this man an

unconventional role model and a marketer‟s delight.

Cricket is the closest competitor to Bollywood and fame index is testimony to

that. Kohli, incidentally, is the youngest celebrity to make it to the top 10 this year.

There have been two exits from the top 10 this time. Kareena Kapoor and Virendra

Sehwag make way for Ranbir Kapoor and Hrithik Roshan. Sehwag has not just lost

out on the frame count (a drop from 4 to 7), his earnings also fell; Kareena‟s earnings

eroded by ₹17 crore, while her fame rank came down to 23 from 13 last year. While

the Forbes India Rich List focuses on net worth, the Celebrity 100 list is arrived at by

measuring money (earnings estimates) and fame. The list includes movie actors,

television stars, sportspersons, authors, film directors, music directors, singers and

stand-up comedians. Their gross pre-tax earnings are combined with their fame scores

to arrive at the Forbes India Celebrity 100 List given in annexure-2.

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1.6 Popular Celebrities from Bollywood

There is one rating company works for giving ratings of celebrities in India. TIMES

Celebex is the most robust and factual ratings index for the Bollywood celebrities as it

is based on comprehensive data and hard facts rather than the subjective perception of

a jury alone. Data is sourced from credible external agencies that service the media

industry and collated from 60+ publications, more than 250TV channels, more

than10000 cinema halls and millions of users across the Internet.3

Table1.3: Rank of Top 20 Bollywood celebrity for month of April-2014

Rank Male Actor Score Female Actor Score

1 Amitabh Bachchan 42.0 Alia Bhatt 45.5

2 Arjun Kapoor 39.5 Deepika Padukone 39.0

3 Salman Khan 39.0 Katrina Kaif 31.0

4 Shah Rukh Khan 34.0 Nargis Fakhri 29.0

5 Ranbir Kapoor 30.0 Kareena Kapoor 28.5

6 Varun Dhawan 28.5 Ileana Dcruz 27.0

7 Akshay Kumar 22.0 Kangana Ranaut 26.0

8 Saif Ali Khan 17.5 Sonakshi Sinha 25.0

9 Aamir Khan 17.0 Priyanka Chopra 24.0

10 Farhan Akhtar 15.5 Aishwarya Rai 22.0

11 Hrithik Roshan 15.0 Sunny Leone 21.0

12 Abhishek Bachchan 14.5 Madhuri Dixit 19.0

13 John Abraham 13.0 Sonam Kapoor 18.5

14 Vir Das 12.5 Anushka Sharma 16.5

15 Yo Yo Honey Singh 12.0 Hema Malini 14.8

16 Ranveer Singh 11.5 Kajol 14.5

17 Ajay Devgn 11.3 Yami Gautam 14.0

18 Ronit Roy 11.1 Vidya Balan 13.5

19 Rajeev Khandelwal 11.0 Shilpa Shetty 12.5

20 Boman Irani 10.5 Karishma Kapoor 12.0

(Source: www.timescelebex.com)

The ranking is based on celebrity‟s popularity, performance and visibility. The „T

Score‟ is calculated by measuring various parameters ranging from Box Office

performance to PR buzz to online following and more.

Key determinants of the T Score-

Box Office Returns and Recognition

Ability to stay in the news across print and TV

Visibility through Brand Endorsements on Print and TV

3 http://timescelebex.com/ (May-2014)

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Promotions of their upcoming movie release on Print and TV

Popularity among fans across mediums including the Internet and Social

Media

1.6.1 What creates a buzz about celebrities - Leading Male actors

Arjun Kapoor: 2 States, buzz around Tevar, 1 brand endorsement

Salman Khan: Guest appearance in O Teri, buzz around his upcoming films

Kick and Prem Ratan Dhan Payo, 7 brand endorsements

Shah Rukh Khan: Buzz around his upcoming films Happy New Year, Fan

and Raees, performing at the opening ceremony of IPL in UAE, 11 brand

endorsements

Ranbir Kapoor: Buzz around his upcoming films Bombay Velvet, Jagga

Jasoos and Roy, reports of him playing Sanjay Dutt in a biopic on the actor, 6

brand endorsements

Varun Dhawan: Main Tera Hero, buzz around Humpty Sharma Ki Dulhania,

reports of his next with Sriram Raghavan and one with brother Rohit, 2 brand

endorsements

Akshay Kumar: Promotions of Holiday, buzz around his upcoming films

Singh Is Bling, Gabbar, It's Entertainment as well as Neeraj Pandey's next, 5

brand endorsements

Saif Ali Khan: Buzz around Humshakals, stories about Phantom, Happy

Ending and Dolly Ki Doli, 7 brand endorsements

Aamir Khan: Buzz around P.K

Farhan Akhtar: Buzz around Raees and Bombay Samurai, 2 brand

endorsements

1.6.2 What creates a buzz about celebrities - Leading Female actresses

Deepika Padukone: Promotions of Kochadaiiyaan, buzz around her upcoming

films Happy NewYear, Finding Fanny, Bajirao Mastani and Tamasha, 11

brand endorsements

Katrina Kaif: Buzz around her upcoming films Phantom, Bang Bang, Jagga

Jasoos and Fitoor, 10 brand endorsements

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Nargis Fakhri: Main Tera Hero, buzz around her international film Spy, 3

brand endorsements

Kareena Kapoor Khan: Buzz around her upcoming films Singham Returns,

Gabbar and Bombay Samurai, 11 brand endorsements

Ileana d'Cruz: Main Tera Hero, buzz around Happy Ending, 1 brand

endorsement

Kangana Ranaut: Revolver Rani, reports of her opting out of Durga Rani

Singh for her script writing course in New York, 1 brand endorsement

Sonakshi Sinha: Lending her voice to the Hindi version of Rio 2, buzz around

her upcoming films Holiday and Tevar, 6 brand endorsements

Priyanka Chopra: Buzz around her upcoming Mary Kom biopic and Dil

Dhadakne Do, release of her third single I Can't Make You Love Me, 6 brand

endorsements

Aishwarya Rai Bachchan: Buzz about her Cannes trip, 6 brand endorsements

1.7 Spending on advertisements by FMCG

According to groupM4, the estimated Indian advertising expenditure in 2014 is about

₹43,065 Crore that is from ₹38,598 crore in the year 2013. The annual revenues of

FMCG companies have increased 15-20 per cent, their advertisement and sales

promotions spendhas risen 25-30 a year. ITC, one of the biggest Indian companies

spent ₹806.65 crore on advertising in the year 2012-13, against ₹682.69 crore in

2011-12. Dabur India‟s ad spends of ₹502.37 crore, jumped 27 percent in 2012-13.

In 2012-13, Hindustan Unilever spent ₹3,231.88 crore on advertising and

promotional activities, compared with ₹2,634.79 crore the previous financial year, a

rise of 22.66 per cent. During the same period, the city-based FMCG company

Emami‟s spends rose 21.18 per cent to ₹253.11 crore. A major reason for the high

growth in advertising spends is these companies are keen to record volume growth.

4GroupM is WPP's consolidated media investment management operation, serving as the parent

company to agencies including Maxus, MEC, MediaCom, Mindshare, Catalyst and Xaxis.

(http://www.groupm.com/)

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Figure 1: Celebrity & their rate for endorsement per deal

(Source: businesstoday)

In the past, high advertisement spends have taken a toll on the margins of

many companies, though analysts say this is peculiar to the way FMCG companies

operate in India.Major fast moving consumer goods (FMCG) companies have raised

their advertising and promotion spends in the first six months of the current fiscal

(H1FY14). Further, this trend is likely to continue in the second half of Financial Year

2014 as well. While Hindustan Unilever (HUL), the FMCG giant has reported a 16

per cent increase in advertising and promotion spends (ad spends) to ₹1843.8 crore

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during H1FY14 over the corresponding period last fiscal, Similarly, Colgate, Jyothy

Laboratories, and Emami have seen an increase of 28 per cent, 50 per cent and 9.42

per cent respectively.

Table 1.4: Advertising budget of top FMCG Company in India for year 2013

Company FY13 ( in Crore) FY12 ( in crore) Change (%)

ITC 806.65 682.69 18.16

HUL 3,231.88 2,634.79 22.66

Dabur 502.37 397.66 27 .00

Emami 253.11 208.87 21.18

Britannia 534.28 419.6 27.33

(Source: business-standard)

1.8 Celebrity endorsement of FMCG products in Advertisement

Table 1.5: Celebrity endorsement of FMCG products in Advertisement

Product/Service

Category

Brand Celebrity

Endorser

Non-Celebrity / Brand

Detergent

powder / Soap

Wheel - HUL Salman Khan Female- Ghari detergent

Santoor Saif Ali Khan Kids / Surf Excel

Lifebouy Yuvaraj Singh Male / Tide detergent

Home cleaning

Xpert Utensil cleaner Priyanka Chopra Female-Nurse / Lyzol

Vim - Liquid Ram Kapoor

Vim - Bar Shakshi Tanvar

Harpic Husain

Saini fresh Karishma Kapoor

Oral care

Pepsodent Shahrukh Khan Male/Colgate -No cavity

Anchor toothpaste Kajol Couple / Close-up

Colgate – Salt Priyanka Chopra

Bakery

products

Corneto Yami Gautam Male / ITC-Dark fantasy

Parle Goldstar Amitabh Bachhan

Britannia Tiger Salman Khan

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Chocolate

Choco-on Ketrina Kaif Male/ 5 Star Chocolate

Nestle Munch Virat Kohli

Snickers Rekha

Skin care

Lux-Deospray Karina Kapoor Female / Dove

Whitening deo

Ponds skin cream Miss India-2013 Female / Dove Body

lotion

Fair & Lovely Yami Gautam Female / Itchgard-Paras

Ponds Ranbeer Kapoor Kids /

Lifebouyhandwash

Suthol-Boroline Shakshi Tanvar Female / Veseline

Fem-Bleach Sonakshi Sinha Mom & Daughter /

Pears soap

Fair & Handsome Shahrukh Khan

Lux Katrina Kaif

Olay Kajol

Garnier men John Abraham

Nivea White Anushka Sharma

Hair care

Dabur - Vatika Priyanka Chopra Female / Almond drop

hair oil

Nihar- Shanti Amla Vidya Balan Male / Beylcreme

L‟oreal Aishwaria Rai Child / Jhon. &

Jhonsons

Parachute Deepika

Padukone Female / Sunsilk

Head & Shoulders Kareena Kapoor/

Saif Ali Khan

Snack food

Kellogs Shaskhi Tanvar Kids / Bournvita

Lays chips Saif Ali Khan Male / Bingo

Kurkure Pariniti

Chopra/Juhi Male / Bingo mad angle

Maggie-Nestle Amitabh

Bachchan

Nutrogena Prachi Desai

Beverages

Rasna fruit plus Virendra Sehvag Family / Red Lable

Tajmahal tea Saif Ali Khan Male / Mountain Dew

Coca-cola Aamir Khan Male / 7-up

Mazza Parineeti Chopra

Thums-Up Salman Khan

Slice Katrina

Limca Kareena Kapoor

Life Insurance

AVIVA Sachin Family / LIC

Biral Sunlife Yuvraj Singh Female / LIC-Jivan

Bharti plan (Source: Primary data, observation of various media from Jan. 2012 - May.2014 )

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1.9 Problem Discussion and Problem Statement

There are extensive studies covering whether or not, celebrity endorsement is

beneficial (Agrawal & Kamakura, 1995) and cases where celebrity endorsement can

have negative effects on the brand (Shimp & Till, 1998; Farrell, Karels, Montfort, &

McClatchey, 2000). Another study focused on what determines the communication

effectiveness of the endorsement (Kahle & Homer, 1985; McGuire, 1985;

McCracken, 1989). However, no study so far focuses on the theme of this thesis.

Therefore, the study is conducted by combining celebrity endorsement with compared

to non-celebrity endorsement. For those products which are having little inherent risk,

the advertiser should choose a typical-consumer endorser (Hershey H. Friedman and

Linda Friedman,1979).

Some of the research in Indian context was done as a differential effect of

National vs Regional celebrities on consumer attitudes. They found that national

celebrities are better than regional celebrities in creating positive consumer attitudes.

Consumers are open to new product in high and low involvement product categories

with the presence of national and regional celebrity. However, when compared within

the product categories, it had a higher impact on low involvement product (soft drink)

as compared to the high involvement product (car) (Jain Versha Et.al. 2010). Hence, it

may be of great value for new ventures that find themselves in the described situation.

Further, it is found that non-celebrity endorsement is more appreciated than celebrity

endorsement and induced more positive attitudes. The persuasive power of non

famous endorser‟s credibility as a major asset to reinforce advertising effectiveness.

The advertisers should exploit it in their messages, to guarantee a favorable attitude

toward advertising and the promoted brand to the target public. (Aicha Meksi Gaied

& Kaouther Saied Ben Rached. 2010). Celebrity endorsement can present a high risk

and “no win situation” (celebrities‟ surrounding scandals, as those of Tiger Woods‟

Kate Moss and Britney Spears, in India famous cricketer involved in match fixing

etc.). Some advertisers favor non-famous endorsers. Tom at al. (1992) noticed that

created endorsers were more effective in creating a link to the product than celebrity

endorsers.

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1.9.1 Problem Statement “There are significant studies reiterating

effectiveness of celebrities and their ability to influence attentation of masses.

At the same time, all the advertisements are not necessorily endorsed by

celebrities. As derived from trends of celebrity as well as non-celebrity

endorsements in the same product catagories, there are two strategies used by

marketers i.e. use of celebrity in the ads by Wheel detergent powder and use of

non-celebrity in the ads by Tide detergent powder. Hence, it is interesting to

work on comparision between effectiveness of both celebrity and non-

celebrity endorsement on selected product catagories.”

1.10 Research Questions

In the above discussion with previous paragraph regarding to pros and cons of

celebrity endorsement, this research investigates whether or not non-celebrity

endorsement can be as effective as celebrity endorsement in selected FMCG product

categories. According to a report by McKinsey Global Institute (MGI), the India's

consumer market will be the fifth largest (from twelfth) in the world by 2025.

Additionally, consumers in India are exposed to several new products every other day

followed by marketers‟ differentiation and positioning techniques. Therefore, it will

be interesting to investigate the impact of celebrity endorsements on consumers

buying behavior in India. From a business perspective, this research study would be

useful in understanding perceptions of Indian consumers towards celebrity and non-

celebrity endorsements. In order to fulfil this, the following research questions are

developed:

Is there any difference in customer‟s perceptions with respect to celebrity

versus non-celebrity endorsers in advertisements?

How do demographic factors have an impact on customers‟ perception for

celebrity & non celebrity endorsers in advertisements?

What is the impact of celebrity and non celebrity endorsement on purchase

intentions?

How does the effectiveness of non-celebrity endorsement differ with various

product catagories?

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References:

Agrawal, J. and. Kamakura, W.A. (1995), “The economic worth of celebrity endorsers:

an event study analysis”, Journal of Marketing, Vol. 59, July, pp. 56-62.

Aicha Meksi Gaied and Kaouther Saied Ben Rached (2010), “The Persuasive

Effectiveness of Famous and Non Famous Endorsers in Advertising” IBIMA

Business Review, Vol. 2010 (2010), Article ID 474771, 14 pages DOI :

10.5171/2010.474771

Friedman, H.H. and Friedman, L. (1979), “Endorser effectiveness by product type”,

Journal of Advertising Research, Vol. 19 No. 5, pp. 63-71.

Jain Varsha, Roy subhadip, Kumar Abhishek, Kabra Anusha. (2010), “Differential

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Marshall, P. David. “Celebrity and power : fame in contemporary culture”

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McCracken, G. (1989), “Who is the celebrity endorser? Cultural foundations of the

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