Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
SUBMITTED BY:
KARAN SALVI, B.B.A LL.B (Hons.), 2ND Semester
SUBMITTED TO: DR. ARCHI MATHUR
CHAPTERIZATION
EXECUTIVE SUMMARY
OBJECTIVES
CHAPTER I : THE COCA COLA COMPANY PROFILE
CHAPTER II : Celebrity Endorsement A Background On The Topic
CHAPTER VI : CONCLUSION
LIMITATIONS (IF ANY)
Bibliography
Executive Summary
Celebrity refers to an individual who is known to the public, such as actors, sport figures,
entertainers and others of the like for his or her achievement in areas other than that of the
product class endorsed (Friedman and Friedman1979). Celebrity Endorsement Celebrity
endorsement has developed tremendously in the past decades and has been acclaimed as a
ubiquitous feature of modern marketing. According to McCracken (1989, p. 20), a celebrity
endorser is any individual who uses his or her public recognition on behalf of a consumer good
by appearing with it in an advertisement. Based on the notion that celebrities are successful
spokespersons for a companys brand or product, in that they deliver a companys advertising
message and persuade consumers to purchase the sponsored brand, a substantial amount of
money is annually spent on celebrity endorsement. Accordingly, it has been confirmed by
scholars and marketers that celebrity endorsement is a very effective marketing tool, as
celebrities have considerable influence on consumers attitudes and purchase intentions.
Advantages of celebrity endorsement include its ability to differentiate an advertisement from
surrounding advertisement clutter by providing the product(s) with instant character and appeal.
Furthermore, celebrities who are particular popular and recognized worldwide, have the capacity
to enter international markets, and thus go beyond cultural borders (Erdogen, 1999). However, a
risk with celebrity endorsement is that a celebritys image may have a negative impact on the
brand or product that he/she endorses as a result of negative news or publicicty, or simply not
appealing to everyone, seeing as a celebritys image often transmits itself to the endorsed brand,
and accordingly the brands image transmits itself to the endorser .
Coca-Cola is a leading manufacturer, distributor, and marketer of soft drink concentrates and
syrups. It owns or licenses more than 500 brands across all categories of soft drinks, and the
company is headquartered in Atlanta, Georgia.
Until 2010, Coca-Cola sold its syrups and concentrates to a number of contracted independent
bottlers that would produce, bottle, and distribute the final product. In February 2010, Coca-Cola
bought out the remaining interests in Coca-Cola enterprises, the main contracted bottler, giving
the Coca-Cola Company control over 90% of the North American volume.
OBJECTIVES:
1. To Identify And Analyse The Choice Of Celebrities In The
Advertisement Of Coke
2. To Study The Impact Of Celebrities On The Consumer Buying
Pattern
3. To Analyse The Success Rate Of Celebrities Endorsing Coke.
RESEARCH METHODOLGY :
This research will consist of Secondary Data.
SECONDARY DATA:
Secondary Data refers to the data which is collected from already
existing/available resources.
The sources for Secondary Data include books, websites, articles etc.
The theoretical information will be gathered from secondary sources and the
assimilated information will be analyzed on the basis of which conclusions may be
drawn.
Secondary Data:
1. Books and Newspapers
2. Market reports
3. Online News, Journals & Research Papers
cola found India a very lucrative market, so after industrial liberalization, company made a
return. It was almost 16 years in 1993, when Coca Cola came back.
16 years back, it was a monopoly market for Coca Cola, but now the game was
completely changed. Many local brands, Campa Cola, Thumbs Up, Gold Spot etc., had already
made their positions, besides those international brands like Pepsi and Cadbury were also
fighting for the market share. But still, Coke made it possible for holding 51% market share after
a journey of 19 years, all through its marketing and competitive strategies. Subsequently, Coke
made significant investments in the Indian market with an aim of inclusion of more and more
people, even targeting the remotest and inaccessible areas of the country. It cemented its
presence with a milestone deal of acquiring top most Indian soft drink brands, such as Thums Up
(one of the most trusted brand of soft drink in India), Limca, Maaza, Citra and Gold Spot. This
step of acquisition not only provided a wide portfolio but also availed coke with physical
manufacturing, bottling, and distribution assets along with strong consumer preference. This
portfolio of local and international brands made it possible for Coke to encash the market
opportunities. Companys product portfolio became a combination of global and local brands.
After leadership tenure of 19 years, Coca Cola holds a diversified portfolio of brands,
catering to the tastes of different consumer segments.
CHAPTER
II
Celebrity
Endorsement
Nowadays marketers do not only want to maximize the sales of the product but also to create the
brand equity. For creating the brand equity they are using the celebrities in advertisements.
In India today, the use of celebrity advertising for companies has become a trend and a perceive
winning formula of corporate image building and product marketing. Associating a brand with a
top-notch celebrity can do more than perk up brand recall. It can create linkages with the stars
appeal, thereby adding refreshing and new dimensions to the brand image. In a world filled with
faces, how many do you remember? Admittedly the ones that evoke some kind of feel in you,
whether its humours, acceptance, appreciation or recognition. These are the faces youd turn to
look at, the ones that would stop you in your tracks. And thats when you have more than just a
face. You have personality. Personality thats reflective of your brand and promises to take it
that extra mile.
As existing media get increasingly cluttered, the need to stand out has become paramount- and
celebrities have proved to be the ideal way to ensure brand prominence. Synergizing personality
with product and message can create an instant breakthrough. Result? Brand buzz. People begin
to notice, opportunities come about. People want to be part of the brand.
Touch it. Feel it. Experience it.
share happiness without any reason, through little gestures like sharing an ice cold bottle of
Coca-Cola. We hope that the new Coca-Cola campaign serves as the thought starter, the
trigger which encourages people to undertake simple acts of kindness towards others.
Prasoon Joshi, CEO and chief creative officer, McCann World Group India, said, Take one of
the worlds most loved brands and team it with the young and vibrant stars of Bollywood,
along with some peppy, foot tapping music. Thats how we made the latest Coca-Cola
campaign. The whole idea of the campaign was to take the 'Crazy for happiness' theme to an
individual level, with a call to action. The emotions of togetherness and celebration, energised
by a bottle of Coca-Cola, are very real and identifiable, and we are sure that everyone will
connect to this.
The right connection made can be seen from the above paragraphs , and we see how Coca
Cola using an individual campaign and identity tries to differentiate from Rivals using Star
Influence to Appeal the masses.
As much as the coca cola drinks enjoy popularity with the masses, the brand has been under
serious criticism owing to the health issues associated with the consumption of Cola drinks .
Health experts allegedly blame the cola manufacturers for promoting child obesity and other
lifestyle diseases. Environmentalist has shunned the manufacturing practices of Cola giants as
they claim that cola manufacturing plants cause water depletion and contamination.
Thus to counter all negative complaints coke Post 2009, Coca Cola adopted the Global
happiness campaign. It experimented with different kinds of images of the year.
It was projected as a beverage enjoyed by the entire family together through ad campaigns like
Saath Khao Khushiyaan Badao.
Life ho to Aisi,
These identity slogans made the brand much popular among the youngsters.
Celebrities endorsement multiplied the effect of those jingles. Company spent crores of
rupees on such endorsements. This stimulate demand in the market by associating with life
style and behavior and mainly targeting value based advertising. It has many brand
ambassadors like Shahrukh khan, Hrithik Roshan, Ghambir, South Indian Actor Vijay
and Trisha, Aamir khan, Kareena Kapoor, Imran khan, Mahesh Babu, Sachin Tendulkar,
etc.
These endorsements by Coca Cola changed from time to time. When Hritik Roshan
Debute movie released and received a grand success, Coke signed a deal with him. When World
cup seasons or IPL seasons come, endorsement strategy completely changes. At such times of
national or international tournaments, company uses cricketers, athletes for endorsing the
product. Similarly on festivals endorsement style and ad both change.
Coke commercial was endorsed by Hrithik Roshan for Rs. 3 crores. It was the highest
amount paid by the company of that time. Coca-Cola had signed Bollywood actress Genelia
D'Souza as brand ambassador of its launched product, Fanta Apple in 2008. In 2009, the Coca
cola had signed Gautam Gambhir for coke has a brand ambassador to leverage the passion of
cricket among youngsters. In 2010, the company signed Imran khan for the coca cola
endorsement. Coca-Cola had signed two years deal with bollywood actress Kareena Kapoor to
endorse its drink Limca for about Rs 2.5 crore a year.
Coca-Cola has dropped Akshay Kumar for Thumps Up in 2012 for Telugu superstar
Mahesh Babu. Thumps up for several years was endorsed by Akshay kumar by defying stunts as
its USP of its full of action commercials, but in 2012 he was dropped for Telugu superstar
Mahesh Babu, and, apparently to give its action-oriented commercials some liveliness and
glamour. The cola brand had replaced the actor with Kingfisher model Angela Jonsson, to
bring in the campaign with a touch of youth and beauty.
The Coca-Cola has signed the three-year endorsement deal in 2011 with Sachin
Tendulkar, where he is being paid almost twenty crores. In 2010 Now the top endorsers of cola
brand are: Sachin Tendulkar for brand coke, Kareena for Limca and recently Telugu actress
Tamanna Bhatia is chosen as face of Fanta for Tamil Nadu and Karnataka.
These endorsements cost quite high. Spending counts in crores. According to a news
agency, on an average a beverage company spends 20 to 40 million USD for such promotional
campaign. Coca Cola has a year long history of celebrity endorsement. It has spent bucks for
promotions. Spending trends on different brands for having a celebrity association are as follows:
1. Company spent Rs. 20 (cr). To sign Sachin Tendulkar as its brand ambassador. As per
industry average, Sachin charges Rs. 5 (cr). Per an endorsement.
2. Kareena Kapoor, in new Limca ad, cost Rs. 2.5 (cr).
3. Amir Khans two years back endorsement campaign was of Rs. 10 (cr).
4. Akshay kumar charged Rs. 4.5 (cr). For Thumbs Up ad in 2010.
5. Sonam Kapoor singed coca cola endorsement deal amounting Rs. 3 (cr).
Coke till now has signed deals with 15 Indian celebrities for endorsement. These deals
have offered them more than their doing a single movie for an actor or tournament for sports
persons.
20
15
10
Amir Khan, 10
0
0
It is going to decide the buyers reactions to a firms marketing strategy which will leave a
great impact on the firms success.
There are certain basic considerations, which matter when brands select celebrities. Target
segments the type of celebrity chosen and the nature of the brand personality are some of the
important considerations which need to be given a lot of importance.
Coke's brand personality (the kind of human characteristics that could be associated with the
brand) is vibrant, fun-loving, young lively and adventurous. The target segment is of course, the
younger generation. Cricket is a sport, which is widely followed by the target segment, and there
is always a charisma associated with the celebrities who are reigning and topical.
Coca Cola entered in the 90s and roped in Sachin Tendulkar who was not only a good performer,
but also a celebrity who typified the aspirations of youngsters involved with cricket. The young
age of the celebrity also synergies with the personality of the brand. This was the starting point
of the celebrity plane for Coca Cola (Adventure and fun was reinforced with the film-celebrity
TV commercial). The brand brought in a string of cricket celebrities during the last two years
during which one sport experienced a very active phase. The brand (in a specific category)
should use the celebrity in such a way that it would be difficult for a competitive brand to follow
the strategy (however popular it may be worldwide). Coke latched on to cricket after Pepsi had
created a very strong association with cricket and the celebrities on the field. Currently, Coke is
attempting the film celebrity route (which has also been pre-empted by Pepsi). It may be recalled
that Thums Up was therapist brand to use cricket celebrities (in cinema halls about two decades
ago). If the brand had strengthened its association with the sport, it is possible that Pepsi may not
have chosen the cricket association.
When a celebrity endorses a brand which is facing negative news, the attitude toward a
brand will turn more positive in a society having long term orientation in comparison to
society having short term orientation.
When a neutral research group (Center for Science and Environment, an independent public
interest group) in India alleged that soft drinks manufactured by Coca Cola contained harmful
pesticide residue, the company responded by bringing in celebrity endorsement. Aamir Khan, a
leading actor - who enjoys a tremendous fan-base in India, appeared in a television commercial
defending Coke and gulping a bottle of the beverage while endorsing Cokes security standards.
We can clearly see how Coca Cola has been Successful while comparing it to its competitor.
CHAPTER VI -RECOMMENDATIONS
One of the important recommendations that I want to give is that during this
slowdown period companies are cutting their advertisement expenditure but they
shouldnt do this. This is because this slowdown provides them an opportunity to
differentiate themselves from their competitors. This is also supported by the
researches. One of the research explained that during 1960s recessions 290 global
companies increased their advertisement expenditure and their sales increased by
whopping 300%. Some of the companies are well established brand name todays
like IBM, Microsoft, 3M etc.
There are many other pitfalls that marketers must be conscious of, firstly, the
celebrity must actually drink the product they are endorsing. To be photographed
with a rival brand provides a head in hands moment for marketers and leaves the
brand open to ridicule. The celebrity may have a shorter shelf life than expected as
people who come into fashion often go out of fashion just as rapidly. The chosen
one may be so much in vogue that they sign up to too many products, thereby
diluting their impact.
Companies should also be vary of vampire effect, which is the effect of a
celebrity overshadowing the brand .This can cause a breakdown in the effective
communication of a product being advertised towards the consumer simply
because consumers are more attracted with celebrities, in order to come out of this
companies should ensure a match between the brand being endorsed and the
endorser so that the endorsements are able to strongly influence the thought
processes of consumers and create a positive perception of the brand.
It is not enough that the celebrity is the advertising is remembered, more important, the brand
must be. In using celebrities as endorsed, advertisers need to understand not only how to choose
celebrities but also how to use them in advertising. The strategy and creative execution should
reinforce strongly and consistently the celebrity brand association. And the celebrity should not
only evoke positive retains, but helps focus attention on the brand in the advertising. Thus the
product will be made more desirable because of its association with the star.
BIBLIOGRAPHY
1. http://timesofindia.indiatimes.com/city/ahmedabad/Celebs-return-lost-gloryto-brands-IIM-A-study/articleshow/21663944.cms
2. http://indianresearchjournals.com/pdf/apjmmr/2012/october/2.pdf
3. http://www.dmnews.com/coca-cola-targets-teens-with-celebrity-brandedtumblr-templates/article/242543/
4. http://cocacoladvertising.blogspot.in/2011/03/endorsers-of-coke.html
5. www.youtube.com
6. http://www.coca-colaindia.com/
7. http://en.wikipedia.org/wiki/Coca-Cola
8. Consumer behavior by Robert East
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