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 Colas 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 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

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. Companys 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

administrative 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. 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 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

advertisement (p 310). The current popularity of celebrity endorsements can be attributed to the

numerous benefits companies have seen by utilizing this form of advertisement. In todays media

cluttered environment where it is difficult to grab consumers 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

advertisement, the use of celebrities is also believed to help consumers remember the message of

the advertisement 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 advertisement 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 advertisements.

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 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.

CELEBRITY ENDORSEMENTS AS STRATEGY

Signing 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

Celebritys image and fan followings

CelebrityTarget audience match

Celebrity associated values.

Costs of acquiring the celebrity.

CelebrityProduct matches.

Celebrity popularity.

Celebrity availability.

Celebrity physical attractiveness.

Celebrity credibility.

Celebrity prior endorsements.

Whether celebrity is a brand user.

Celebrity profession.

CHAPTER III Choice Of Celebrities In The

Advertisement 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 Coca-

Cola)

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 caf.

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 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.

Coca Colas Brand Celebrity Endorsement Strategy

In accordance with the spending, does the company really reap that high benefits from

such endorsement? Certainly yes, because in todays 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. Its 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 advertisement 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

advertisement 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 passions 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 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.

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

Akshay Kumar, 4.5 Sonam Kapoor, 3

Amir Khan, 10

Kareena Kapoor, 2.5

Sachin Tendulkar, 20

0

5

10

15

20

25

0 1 2 3 4 5 6

Endorsement spending (Rs. Cr.)

Endorsement spending (Rs. Cr.)

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 consumers purchases

Evolving new factors

From a firms perspective study of consumer buying behavior is of profound importance

because:

It is going to decide the buyers reactions to a firms marketing strategy which will leave a

great impact on the firms success.

In order to design a consumer oriented marketing strategy, it is imperative for firms to

analyze the consumers 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

advertisements. A reference group is one, which influences an individual's attitudes and values.

There need not necessarily be face-to-face contact 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 terms 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 Cokes 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 advertisements.

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

advertisements 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 user 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 designing 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 entertainment-

centered 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 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.

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

designing 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 premium 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 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.

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 advertised 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 advertisements persuades you the most to purchase a product?

BIBLIOGRAPHY

1. http://timesofindia.indiatimes.com/city/ahmedabad/Celebs-return-lost-glory-

to-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-branded-

tumblr-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

9. Consumer Behavior, 6th

Edition, by Lean G. Sehiffman