A Study On The Influence Of Celebrities In The Sale Of Coke e6e67

NATIONAL LAW UNIVERSITY, JODHPUR

FOR PROJECT WORK IN PRINCIPLES OF MANAGEMENT TOPIC: A Study of Influence of Celebrity in the Sale Of Coke

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 III: Coca Cola‟s Celebrity Ventures , Strategies CHAPTER IV : Consumer Buying Behavior With Respect To Coca Cola CHAPTER V : - The Success Of Coca Cola due to the Influence of Celebrities.

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 ment”. Based on the notion that celebrities are successful spokespersons for a company‟s brand or product, in that they deliver a company‟s 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 ment from surrounding ment 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 celebrity‟s 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 celebrity‟s image often transmits itself to the endorsed brand, and accordingly the brand‟s 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 ment 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

Chapter I – The Coca Cola Company Profile The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. Starting with just a sale of nine glasses of drinks per day, Coca Cola has written a success story after a triumphant stretch of operations for about 125 years. Company‟s current production counts to be more than 10 billion gallons of drink per day and selling products across 200 countries worldwide. With a portfolio of more than 450 brands, the company is one among the largest beverage companies. Coca Cola - the name came to India in the post independence era i.e. after 1947 in the year 1956. That time, there was not any foreign exchange act to regulate overseas trade and investment in the country. Take advantage of the above flaw of Indian legislation, Coca Cola made enormous money operating under 100% foreign equity. The Indian foreign exchange act came into force in the year 1974 during Indra Gandhi government age. According to this act, for selling consumer goods, a foreign company must devote 40 percent equity stake in India in its Indian associates. Coca-Cola decided for this but laid down a condition, of holding full power in istrative and technical units with no local involvement allowed. This condition was against the Indian Foreign Exchange Regulation Act (FERA), so GoI instructed Coca Cola to either leave the country or write up a new plan. In 1977, when Janta Party came into power, the stress for Coca Cola increased, and finally company decided to quit. Coca Cola came to India with Rs. 600,000 only, which was not a big amount. It was equal to an investment of $20,000 at the prevailing exchange rate of that time. But, at the time of departure from India, the company had already made a profit amounting to be $ 8 million or in rupee term it was Rs. 250 million. In twenty years, nearly 400 times return was reaped by the brand. Coca

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. Company‟s 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

–

A

Background On The Topic Literature On Celebrity Endorsements McCracken (1989) defined 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 ment” (p 310). The current popularity of celebrity endorsements can be attributed to the numerous benefits companies have seen by utilizing this form of ment. In today‟s media cluttered environment where it is difficult to grab consumer‟s attention, marketing managers are looking for celebrities to gather attention and mileage, giving companies a better chance of communicating their message to consumers,. In addition to getting consumers to listen to the ment, the use of celebrities is also believed to help consumers the message of the ment and the brand name the celebrity is endorsing. Also, in another major advantage in employing celebrity endorsement, celebrities bring their own distinctive images to the ment and its associated brand and can create, enhance and change brand image (Erdogan, 1999). According to Agrawal and Kamakura (1995), when a celebrity is paired with a brand, her image helps shape the image of that brand in minds of the consumer.

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 ments.

RISE OF CELEBRITY CULTURE The modern mass media has increased the exposure and power of celebrity. Often, celebrity carries with it immense social capitals that is highly sought after by some individuals. High paying jobs and other social perks unavailable to most people are readily available to celebrities, even for wok not connected to the talents or accomplishment that made them famous. For example A retired athletes might receive high “speaking fees „or compensation for public appearances, despite his talent having been sports. Often, celebrities cannot escape the public eye & risk being followed by fans. As well, child celebrities are notorious for having poor emotional health in adulthood, and often turn to drug and alcohols abuse when their fame fades.

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 ? ittedly the ones that evoke some kind of feel in you, whether it‟s humours, acceptance, appreciation or recognition. These are the faces you‟d turn to look at, the ones that would stop you in your tracks. And that‟s when you have more than just a face. You have personality. “Personality that‟s 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.”

CELEBRITY ENDORSEMENTS AS STRATEGY g up stars for endorsements is a time-tested strategy and has been effectively used by some of the top brands in the world including Coca Cola. Marketers believe that star endorsements have several benefits, key among them being building credibility, fostering trust and drawing attention or any or all of which can translate into higher brand sales. MOTIVES BEHINDS ENDORSEMENTS BY CELEBRITIES Instant Credibility Brand Awareness and Recall. To refresh the brand image. Celebrities add new dimensions to the brand image. To push the demand of the product To bring the reliability and retention of the product. PARAMETERS FOR COMPATIBILITY BETWEEN THE CELEBRITY AND BRAND IMAGE ARE Celebrity‟s image and fan followings Celebrity—Target audience match Celebrity associated values. Costs of acquiring the celebrity. Celebrity—Product matches. Celebrity popularity. Celebrity availability. Celebrity physical attractiveness. Celebrity credibility. Celebrity prior endorsements. Whether celebrity is a brand . Celebrity profession.

CHAPTER III – Choice Of Celebrities In The ment Of Coke How Coca Cola has Selected And Used Influence Of Celebrities? Bollywood stars endorsing the brand include Karisma Kapoor, Aamir Khan, Hrithik Roshan and Aishwarya Rai among others. In total Coca Cola roped in 15 celebrities against 8 of Pepsi. Coca-Cola has launched several TV Commercials extending its „Crazy for happiness‟ campaign. The soft drink major has roped in Alia Bhatt, Varun Dhawan and Siddharth Malhotra for the new commercial. The TVC created by McCann WorldGroup India revolves around the tagline 'Bewajah khushiyan lutao, Coca-Cola pilao' (Spread happiness without reason, share a CocaCola) The TVC opens in an Irani cafe where a hassled waiter is shown working frantically. He is clearing dishes, taking orders from patrons and receiving instructions from the owner of the café. Seated at a table are Bollywood actors Alia Bhatt, Varun Dhawan and Siddharth Malhotra. Dhawan asks for three bottles of Coke. Bhatt changes the order to four bottles. She gives a casual shrug when asked why by Dhawan and Malhotra. When the waiter sets the bottles on the table, Bhatt picks up the extra bottle and offers it back to the waiter. Surprised at her unprecedented gesture, he looks at his boss for approval. The boss nods in the affirmative and the waiter along with the three youngsters enjoy their drink. A voice over signs off saying, 'Bewajah khushiyan lutao, Coca-Cola pilao'. It is evident how they have used youngsters to appeal to their audience which is majorly the younger generation. Using the right person for the right job , to appeal to the larger masses is what Coca Cola has invariably done. On the other new TVC, Anupama Ahluwalia, vice-president, marketing, Coca-Cola India and South West Asia, said, “Brand Coca-Cola has been at the forefront in making a cultural point of view that encourages optimism and positivity in our everyday lives. This summer, the „Bewajah khushiyan lutao, Coca-Cola pilao‟ campaign inspires everyone to spread and

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 world‟s most loved brands and team it with the young and vibrant stars of Bollywood, along with some peppy, foot tapping music. That‟s 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”.

Coca Cola‟s Brand Celebrity Endorsement Strategy In accordance with the spending, does the company really reap that high benefits from such endorsement? Certainly yes, because in today‟s competitive world, brand is the most precious asset of any firm and associating a celebrity name with our most crucial asset is not a joke. It‟s a vital decision taken by the top management, whom to engage for the endorsement and how much to pay? Brand by definition of American Marketing Association Dictionary, is name, term, design, symbol, or any other feature that identifies one seller's goods or services as different from those of the other sellers. Brand is considered as the most valuable asset of any company. Corporates often borrow celebrities name to use for ment of its brand. Corporates relate the celebrity name with their product so that they could encash the endorsement cost. This sort of promotional stunt is endorsement (Erdogan, 2010). Using name or presence of any celebrity for ment is brand endorsement. Through Endorsement, if Celebrity has personally used any product or service and is in a position to confirm its quality, then he or she may give a testimonial noticing its benefits. For instance Bipasha Basu, endorses sugar free delight by certifying the quality of the product, as it is a part of her consumption basket. Endorsements basically lend weights to the product credibility (Kapferer, 2012).

Celebrity endorsement, the key marketing tactic, is being adopted by many companies for years. The same dynamic strategy of positioning and marketing communication was adopted by the company, in order to fascinate the Indian market. More often, the company attempted to rapt consumers in India by establishing an association with their ions for say, cricket, movies, music or food. With a step of sponsoring the World Cup in 1996 and subsequently various national tournaments inclusive of the Sharjah Coca Cola Cup in the late nineties, the brand successfully gained identity among Indian urban population. Coke attempted to play catch-up with a two-pronged gambit: One, introduction of jingles in the ad campaign; and, two, inclusion of celebrity endorsement. From 1993 to till date, Company taped the youth segment with celebrity endorsement and jingle based marketing. Jingles like; 

“Always The Real Thing”,



“Pee Le Coca Cola”,



“Jo Chahe Ho Jaye...Coca Cola Enjoy”,



“Taste the thunder”, “Taza Maaza”,



“Life ho to Aisi”,



“Thanda Matlab Coca Cola” and



“Aaj Kuch Tuffani Karte Hai”

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 ion 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 Khan‟s 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.

Endorsement spending (Rs. Cr.) 25 Sachin Tendulkar, 20

20 15 10

Endorsement spending (Rs. Cr.)

Amir Khan, 10

5

Akshay Kumar, 4.5 Sonam Kapoor, 3

Kareena Kapoor, 2.5

0 0

1

2

3

4

5

6

Figure 7 Spending for Celebrity Endorsement by Coca-Cola India.

CHAPTER IV – CONSUMER BUYING BEHAVIOR WITH RESPECT TO COCA COLA The Theory of Consumer Buying behavior: Consumer buying behavior can be defined as the decision processes and acts of consumers involved in buying and using the product also referred to the buying behavior of the ultimate consumer. Under the umbrella of consumer buying behavior, we have to study following issues 

Reason behind a particular purchase by the consumer



Factors influencing the consumer‟s purchases



Evolving new factors

From a firm‟s perspective study of consumer buying behavior is of profound importance because: 

It is going to decide the buyer‟s reactions to a firms marketing strategy which will leave a great impact on the firm‟s success.



In order to design a consumer oriented marketing strategy, it is imperative for firms to analyze the consumer‟s buying behavior.



It would be easier for the marketers to forecast the reaction of consumers.

.Coca Cola Identifies Reference Groups to target Consumer Buying Reference group principles are useful in analyzing the usage of celebrities in ments. A reference group is one, which influences an individual's attitudes and values. There need not necessarily be face-to-face between the groups and the individual (Though there are number of aspects associated with the concept, the principle is simplified in this context). Coca Cola's association with cricket celebrities, for example, may result in these celebrities becoming role models for a number of youngsters involved or associated with cricket in of their accomplishments, attitudes or even lifestyles. It is this aspect, which results in a lot of mileage for this specific brand that is associated with the celebrity. The youngsters may consume more Coke Pepsi because these celebrities endorse it.

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 Coke‟s security standards. We can clearly see how Coca Cola has been Successful while comparing it to its competitor.

CHAPTER V- The Success Of Coca Cola due to the Influence of Celebrities. Coke uses celebrity endorsements as a weapon in advertising. They hire the most famous and favorite celebrities for their brand endorsement. Every year Coke pays a huge amount of money to many celebrities. Advertising& Celebrity Endorsements Contributing To The Success Of Coca Cola Marketing We cannot negate the fact that their most influential ad campaigns with going with the right Celebrity to match is the reason for their success . Nowadays, consumers are always involved with a wide range of purchasing decisions. The consumers might not realize that advertising directly influences their daily life but when consumers have to make a purchasing decision in buying a product, consumers tend to think about products that they have been exposed to in ments. In general, the definition of a decision is the selection of option from two or more choices for example, a Choice between Brand A and Brand B. (Schiffman & Kannuk 1991) There are many reasons why customer buy product repeatedly; customers might be satisfied with a product form trial or past purchase; they have heard word-of-mouth suggestions from other post-purchasers; sale promotion can attract customers to repeat their purchasing. Those reasons aside, it is ments that can have the biggest impact customer purchasing decision (Tellis 2003). In 2000 , Coca Cola roped in Christina ,a celebrity pop star famous in the west , to have a concert promoting the brand , the entry to the concert was to be won through a token on the lid of a Coca Cola bottle , this lead to a lot of sales boost and showed us how influential a celebrity is! Coca Cola has been using this tactic since a while and has had many celebrities perform under the most celebrate soft drink- Coca Cola

Success Rate Of Coca Cola Comparison With Pepsi.

The Success of Coca Cola – Using Celebrities on Social Media –Keeping up with the trends Myself being an ardent of social websites , Coca Cola has made its presence felt to me also. Here is how they took the micro blogging website by storm. In an effort to reach out to the teenage demographic,The Coca-Cola Company has partnered with digital agency 360i to create celebrity-designed Tumblr blog templates. Coca-Cola chose Tumblr specifically because the blog platform “provides a creative, teen-centric demographic and allows Coca-Cola to use more emotionally targeted content through visuals,” said Kronauge. American Idol singer Jason Derulo is the first of five celebrities deg free templates that will be available on Tumblr's theme garden. Besides Tumblr, Coca-Cola is also targeting the teenage market via social channels such asFacebook, Twitter and YouTube, using the sites to host behind-the-scenes celebrity content. Coca-Cola also hosted a Google+ Hangout event where Derulo answered questions from five fans. To further drive social sharing and engagement, Coca-Cola partnered with entertainmentcentered social check-in site GetGlue This marketing campaign arrives months after a Feb. 7 announcement in which Coca-Cola stated it would invest as much as $650 million into future marketing efforts. Coca-Cola CEO Muhtar Kent said during a fourth quarter earnings call that the company sought to double its business by 2020. Coca-Cola spokesperson Kerry Tressler stated the beverage manufacturer would engage with customers over multiple channels while simultaneously connecting the messages sent over disparate channels into a single brand strategy.

CHAPTER VI -RECOMMENDATIONS One of the important recommendations that I want to give is that during this slowdown period companies are cutting their ment expenditure but they shouldn‟t do this. This is because this slowdown provides them an opportunity to differentiate themselves from their competitors. This is also ed by the researches. One of the research explained that during 1960‟s recessions 290 global companies increased their ment expenditure and their sales increased by whopping 300%. Some of the companies are well established brand name today‟s 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 d 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.

CHAPTER VII- CONCLUSIONS Contrary to popular belief, advertising is as much a science as it is an art. As the primary mode of communication between a company and its prospective customer, a CELEBRITY ENDORSER must connect to the consumer, and create in his mind an attractive image of the brand. The average consumer gets lost in the vast sea of information, and is unable to differentiate one product from another. Notwithstanding the scientific inputs that go into deg an advertising campaign, some campaigns make history while others fail miserably. Marketers spend millions of dollars on advertising and especially on celebrities. Hoping that the stars will bring their magic to the products and services they endorse and make them more appealing and successful. But, all that celebrity glitter is not gold, but it can be. If appropriately used, celebrity advertising has paid off and definitely influenced the purchase decision. Celebrity endorsement does a in term of impact and memorability. There is also a position influence on persuasion, though less strong.

It is not enough that the celebrity is the advertising is ed, more important, the brand must be. In using celebrities as endorsed, rs 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.

PROPOSED QUESTIONS FOR QUESTIONNAIRE 1) What is your occupation? (Occupation distribution pattern of the respondents) 2) Which category of products you like most? (Different kinds of drinks customers considers buying) 3) If soft drinks then which brand of soft drinks do you prefer mostly? 4) Are you influenced by other opinions and suggestions before making your purchase decision? 5) If yes then which factor affects you most? 6) Which factor related to product affects you most? (Reason behind the purchase of a product) 7) What attributes about Coco cola attracts you the most? 8) Do you think celebrity endorsement work as an effective tool of persuasion for soft drinks industries? 9) In case of Coca cola, which celebrity endorsement do you prefer? 10) Is celebrity endorsement making you loyal towards brand Coca cola 11) What makes you choose a brand? 12) Do you believe products specifically d by the celebrities are of good quality? 14) Do you believe the celebrities also use those products which they themselves endorse? 15) What means of ments persuades you the most to purchase a product?

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 th

9. Consumer Behavior, 6 Edition, by Lean G. Sehiffman