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Impact of celebrity endorsement on brand equity of Pepsi

Presented by:- Enroll. noVarsha sharma 127460592141

Company information

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Main businesses Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola make hundreds of enjoyable foods and beverages that are loved throughout the world.

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PepsiCos people are united by PepsiCo's unique commitment to sustainable growth by investing in a healthier future for people and their planet, which they believe also means a more successful future for PepsiCo Performance with Purpose: PepsiCos promise to provide a wide range of foods and beverages from treats to healthy eats; to find innovative ways to minimize their impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for their associates; and to respect, support and invest in the local communities where they operate.

INTRODUCTION TO THE ORGANIZATIONType - PublicIndustry Food, BeveragesFounded -Delaware - June 8, 1965 , reincorporated in North Carolina 1986Founder(s)-Donald M. Kendall Herman W. Lay Headquarters -Harrison New YorkArea served- WorldwideKey people -Indra Nooyi (Chairperson and CEO) Products-Pepsi ,Diet Pepsi, Mountain Dew, Aquafina Sierra Mist, Lipton Teas ,7up (outside the U.S.) Mirinda Tropicana Products, Naked Juice, Quaker Oats Company, Lay's Doritos, Cheetos, Walkers snack foods, Tostitos.Employees-294,000 (2010)Divisions-PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa

INDUSTRY PLAYERSThe Coca-Cola CompanyCoca Cola is the number one brand globally and has been for over 40 years It is sold in virtually every country of the world. The successful expansion that began in World War II has continued unabated up to this date. Now, the company has more than 400 brands in its portfolio. Tab, produced in 1963 was one of the companys landmark marketing successes.PepsiCo Inc.Pepsi-Cola was created in 1898 in New Bern, North Carolina, by druggist Caleb D. Brad ham. PepsiCo Inc. holds about one-third of the U.S. market and is the second largest soft drink major in the world. It owns Frito-Lay snacks and other businesses. Pepsi soft drinks include brands such as Pepsi, Diet Pepsi, Slice, Mountain Dew and Mug Root Beer.

Celebrity endorsementA form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service.

Celebrity endorsement of PepsiUnited States-NASCAR driver Jeff Gordon, Chayanne,Charles,Britney Spears, Beyonce,singer Elissa.Latin America-Shakira,Juanes; Jaci VelasquezAustralia-Kylie Minogue, Jennifer Hawkins (Miss Universe 2004), Holly Valance, Harry Kewell, Sonny Bill Williams, Delta Goodrem, Mark Philippoussis.AsiaIn India, Aamir Khan, Mahima Chaudhary and model and Aishwariya Rai Amitabh Bachchan, Shahrukh Khan, Kajol, Rani Mukherjee, Saif Ali Khan, Fardeen Khan, Akshay Kumar, Shahid Kapur (before he entered the movie world), Preity Zinta, John Abraham, Priyanka Chopra, and Kareena Kapoor, Ranbir kapoor as well as the national cricket team. In Pakistan, Pepsi sponsors the Pakistan cricket team Junaid Jamshed, Shoaib Akhtar, Bob Woolmer, Younus Khan, Kamran Akmal.

Literature reviewBRAND EQUITY:Debiprasad Mukherjee 2009: Study on Impact of Celebrity Endorsements on Brand Image by Debiprasad Mukherjee 2009 says that Celebrity endorsement has been established as one of the most popular tools of advertising in recent time. It has become a trend and perceived as a winning formula for product marketing and brand building. It is easy to choose a celebrity but it is tough to establish a strong association between the product and the endorser. While the magnitude of the impact of celebrity endorsement remains under the purview of gray spectacles, this paper is an effort to analyze the impact of celebrity endorsements on brands.

Brand Personality Creation through Advertising:Keller (1998) states that brand personality reflects how people feel about a brand, rather than what they think the brand is or does. The symbolic use of brands is possible because consumers often give brands human personalities (J. Aaker, 1997). Consumers perceive the brand on dimensions that typically capture a persons personality, and extend that to the domain of brands. The dimensions of brand personality are defined by extending the dimensions of human personality to the domain of brands. One way to conceptualize and measure human personality is the trait approach, which states that personality is a set of traits (Anderson & Rubin, 1986). A trait is defined as any distinguishable, relatively enduring way in which one individual differs from others

cont.Kharti Puja (2005) Celebrity endorsement: A strategic promotion perspective by Dr.KhatriPuja,Faculty member Apeejay School of Management, Dwarka, in her research explains that The celebrity endorser is a panacea for all marketing woes. It is today a frequently used approach in marketing for all brand building exercises. The star appeal however needs to be perfectly blended intelligently and strategically to reap the benefits and make brands. It serves as an aid to expedite recall and influence purchase. But can also be a nightmare unless accompanied by a powerful idea, effective and impeccable positioning.Celebrities as SpokespersonsTripp et al. (1994) and Redenbach (2005) both investigated and suggested that when as many as four products are endorsed, celebrity credibility and likeability, as well as attitude towards the ad, may be taken carelessly

RESEARCH METHODOLOGY:

Title of the study-Impact of celebrity endorsement on brand equity of PepsiDuration of the project:-The project duration was a semester long project Objectives of study-:To identify the influence of celebrity endorsement on consumer buying behavior.To study celebrity endorsement as a source of brand-building.To find which type of celebrity persona is more effective for pepsiTo identify is celebrity endorsee advertising more attention getting and memorable than other kind of advertising.To identify how is celebrity endorsee advertisement perceived.To identify that who make the best celebrity endorsee.Need of the study: After going through various sources like magazines, newspapers, websites I found that lot of research work has undertaken by researcher regarding impact of celebrityendorsement. But there was a gap in the research regarding whether celebrityendorsement act as a source of brand-building. So there is a need to discover this fact. So I decided to work on this particular aspect.

Cont.Type of research:My research design is an exploratory research .Data Sources:.a) Primary data: These are those data which are collected afresh and for the first Time, and thus happen to be original in character. I used the structured Questioners.b) Secondary data: These are those which have already been collected by someone else and which have already been passed through the statistical process. I will collect it from the sources like internet, published data etc.Sampling Size:Sample size of 200 persons.Sampling Technique:Convenience sampling technique will be used in this research project.

Data analysisWhich category of product you like most?

Which category of products you like most?FrequencyPercentValid PercentCumulatie PercentValidsoft drinks15075.075.075.0juice3919.519.594.5other115.55.5100.0Total200100.0100.0

If soft drink than which product you like most?

If soft drink than which product you prefer most?FrequencyPercentValid PercentCumulative PercentValidPepsi10552.552.552.5coca-cola6532.532.585.0local brand52.52.587.5not specify2512.512.5100.0Total200100.0100.0

Do you collect any information or to take advice to make your purchase decision?Do you collect any information or take advice to make your purchase decision?FrequencyPercentValid PercentCumulative PercentValidyes16783.583.583.5no3316.516.5100.0Total200100.0100.0

If yes than which factor affects you most?

If yes than which factor affects you most?FrequencyPercentValid PercentCumulative PercentValidfriends7939.539.539.5advertisement9145.545.585.0opinion leader189.09.094.0other126.06.0100.0Total200100.0100.0

which factor related to product affects you most?

Which factor related to product affects you most?FrequencyPercentValid PercentCumulative PercentValidprice3216.016.016.0quality12864.064.080.0celebrity endorsement3216.016.096.0other84.04.0100.0Total200100.0100.0

Do you like to see any celebrity endorsing your brand?

Do you like to see any celebrity endorsing your brand?FrequencyPercentValid PercentCumulative PercentValidYes15075.075.075.0No3216.016.091.0can't say189.09.0100.0Total200100.0100.0

What comes in your mind when you go for Pepsi?

What comes in your mind when you go for Pepsi?FrequencyPercentValid PercentCumulative PercentValidcelebrity4824.024.024.0brand9547.547.571.5taste5728.528.5100.0Total200100.0100.0

Do you think celebrity endorsement work as an effective tool of persuasion for Pepsi?

Do you think celebrity endorsement work as an effective tool of persuasion for pepsi?FrequencyPercentValid PercentCumulative PercentValidstrongly agree10854.054.054.0agree6432.032.086.0disagree2814.014.0100.0Total200100.0100.0

In case of Pepsi which celebrity persona you like most?

In case of Pepsi which celebrity persona you like most?FrequencyPercentValid PercentCumulative PercentValidbollywood star13266.066.066.0sports star5427.027.093.0expert147.07.0100.0Total200100.0100.0

Who is brand ambassador of Pepsi?

Who is brand ambassador of Pepsi?FrequencyPercentValid PercentCumulative PercentValidranbir kapoor16582.582.582.5deepika padukone157.57.590.0Sehwag31.51.591.5don't know178.58.5100.0Total200100.0100.0

Is celebrity endorsement make you loyal toward Pepsi?

Is celebrity endorsement make you loyal toward Pepsi?FrequencyPercentValid PercentCumulative PercentValidYes15075.075.075.0No5025.025.0100.0Total200100.0100.0

Do you believe products specifically advertised by the celebrities are of good quality?

Do you believe products specifically advertised by the celebrities are of good quality?FrequencyPercentValid PercentCumulative PercentValidstrongly disagree7537.537.537.5disagree3517.517.555.0neutral4522.522.577.5agree3417.017.094.5strongly agree115.55.5100.0Total200100.0100.0

Would you buy a brand if your favorite celebrity is endorsing it?

Would you buy a brand if your favorite celebrity is endorsing it?FrequencyPercentValid PercentCumulative PercentValidstrongly disagree5025.025.025.0disagree3919.519.544.5neutral3718.518.563.0agree4522.522.585.5strongly agree2914.514.5100.0Total200100.0100.0

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

Will you stop buying a brand if your favorite celebrity endorsing it got invovled in a scandal?FrequencyPercentValid PercentCumulative PercentValidstrongly disagree4623.023.023.0disagree3718.518.541.5neutral6231.031.072.5agree4221.021.093.5strongly agree136.56.5100.0Total200100.0100.0

Does your favorite celebrity give a positive image to the endorsed brand?

Does your favorite celebrity give a positive image to the endorsed brand?FrequencyPercentValid PercentCumulative PercentValidstrongly disagree5125.525.525.5disagree2613.013.038.5neutral5025.025.063.5agree5326.526.590.0srongly agree2010.010.0100.0Total200100.0100.0

Does the presence of celebrities like Ranbir Kapoor, M.S. Dhoni or Priyanka Chopra in a Pepsis advertisement encourage you to purchase the product?

Does the presence of celebrities like ranbir kapoor, m.s. dhoni or priyanka chopra in a Pepsi's advertisement encourage you to purchase the product?FrequencyPercentValid PercentCumulative PercentValidyes15678.078.078.0no4422.022.0100.0Total200100.0100.0

Do you believe the celebrities also use those products which they endorse?

Do you believe the celebrities also use those products which they endorse?FrequencyPercentValid PercentCumulative PercentValidyes13567.567.567.5no6532.532.5100.0Total200100.0100.0

Does celebrity endorsement help in brand promotion?

Does celebrity endorsement help in brand promotion?FrequencyPercentValid PercentCumulative PercentValidyes17286.086.086.0no2814.014.0100.0Total200100.0100.0

How you rank endorsement of Pepsi?

how you rank endorsement of Pepsi?FrequencyPercentValid PercentCumulative PercentValidgood13165.565.565.5average6331.531.597.0should improve63.03.0100.0Total200100.0100.0

Hypothesis TestingHo:- There is no significant association between brand ambassador of Pepsi and their positive image to endorsed brand.H1:- There is significant association between brand ambassador of Pepsi and their positive image to endorsed brand.

ANOVAWho is brand ambassador of pepsi?Sum of SquaresDfMean SquareFSig.Between Groups5.29041.3221.733.144Within Groups148.790195.763Total154.080199

Interpretation:-Here ho is accepted because there is no significance association between brand ambassador of Pepsi and their positive image to endorsed brand.

ContHo:- There is no significant association between purchasing decision of customer and purchasing factor.H1:- There is significant association between purchasing decision of customer and purchasing factor.

Paired Samples StatisticsMeanNStd. DeviationStd. Error MeanPair 1Do you collect any information or take advice to make your purchase decision?1.1650200.37211.02631If yes than which factor affects you most?1.8150200.83321.05892

Interpretation:-Here ho is rejected because there is significant association between purchasing decision of customer and purchasing factor.

ConclusionsMore number of customers prefer cold drinks rather than juice as a beverages.Most of the people likes to see Boolywood star as a brand ambassador of Pepsi.This research study shows that most of the people collect information to make purchase decision.53% people prefer Pepsi as a beverage compare than the coca-cola.46% peoples purchasing decision is affected by the advertising.80% of people prefer product according to their quality.75% person believes that celebrity endorsement of pepsi is loyal toward pepsi.

Cont.The presense of Celebrities like Ranbir Kapoor, M.S. Dhoni,or Priyanka Chopra in a Pepsi's advertisement encourage people to purchase the product. Most of the people think that celebrity endorsement work as an effective tool of persuasion for Pepsi.Most of the people likes endorsement of Pepsi.

LimitationsThe Area undertaken in research in Ahmedabad only. But to do a completer research a wide area is required, so the area is also a constraint of the study.Sample for the study taken is of only 200 consumers, which can also act as a Constraint in the study.While collecting data some of the respondents are not willing to fill the Questionnaire, so they might not fill their true behavior. This can also be Constraint of the study.There are following constraints of the study which can be explained as The time of research was short due to which many fact has been left untouched

References

www.pepsico.comwww.pepsicioind ltd.com www.marketingmania.in/india.htmhttp://en.wiki.wikipedia.com/indian_industrywww.managementparadise.com/consumerbehaviour_celebrityEndorsement_automobiles.htmMagazines and articles:-Marketing mastermind july, 2008Advertising express may 2009Stargazing editorial. CMO magazine P-1, June 2005Massey News ArticleStrategic Marketing Times of India group article.

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