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Term Paper of Marketing
Term Paper of Marketing
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There are large no. of cars available in the market. What are
the things that distinguish those from rest. It may be good cars,
advertisement, royal heritage and may be celebrity endorser
who endorse them. Businesses have long sought to distract
and attract the attention of potential customers that live in a
world of ever-increasing commercial bombardment. Everyday
consumers are exposed to thousands of voices and images in
magazines, newspapers, and on billboards, websites, radio and
television. Every branded company of cars attempts to steal at
least a fraction of an unsuspecting person's time to inform him
or her of the amazing and different attributes of the product
(cars). The challenge of the marketer is to find a hook that will
hold the subject's attention. The termcelebrity refers to an
individual who is known to the public (actor, sports figure,
entertainer, etc.) for his or her achievements in areas other
than that of the product class endorsed (Friedman and
Friedman, 1979). Celebrities, like actors (e.g., Amitabh
Bachchan, ShahrukhKhan,Aamir Khan and Katrina
kaif).sports figures (e.g., Sachin Tendulkar,
Mahendersinghdhoni ,Irfanpathan,Abhinavbindaraetc).But
also for less obvious groups like businessmen (e.g., Donald
Trump, Bill Gates) . In addition, they are present in news,
fashion magazines, and tabloids, which provide second source
information on events and the 'private life' of celebrities
through mass-media channels use
ofcelebrityendorserbelievability. If a celebrity can aggrandize
the merits of a brand, he or she can also exacerbate the image
of a brand.
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The objectives of the study are as To identify the influence
ofåfollows: celebrity endorsement on consumer buying
behavior. To studycelebrity endorsement as a source of To
find which type ofåbrand-building.
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After going through various sources like magazines,
newspapers, websites I found that lot of research work has
undertaken by researcher regarding effect of celebrity
endorsement. So there is a need to discover this fact. So I
decided to work on this particular aspect.
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Indian Car market industry is booming. With the increase in
per capita earning Indians are buying cars like never before.
According to the Society of Indian Automobile
Manufacturers, (SIAM) sales of passenger cars in India have
exceeded the magical one million mark putting India among a
select group of prosperous countries where passenger cars sell
in such high numbers. Significantly while domestic car sales
increased by 27.4 per cent to 696,207 units from 541,491 units
the previous year, exports rose 56 per cent to 1, 25, 327 units
during this period. Also for the first time in history of the
industry, vehicles worth more USD 1 billion were exported.
Most significantly, passenger car exports have nearly trebled
in four years, from 28,122 units in 1998-99 to 71,653 vehicles
in 2002-3. According to JagdishKhattar president of Siam and
managing director of MarutiUdyog Ltd, India's largest
carmaker, exports are further expected to rise by 15 to per cent
in the current fiscal. Analysts say the news on the exports
front is the most encouraging and by far the best thing to have
happened to the Indian automobile industry. This is because as
more and more Indian-made cars flood foreign shores the low
quality image associated with Indian products will ultimately
fade, encouraging more.Companies offering Product or
Services will need to understand this new face of the
customers. The changing Demographic profile of the
population in terms of education, income, size of family and
so on, are important.
This means to know about the existence of the product in the
market. It is the first stage of the adoption process. The
consumers are exposed to the product innovation. The
consumers at this stage are not interested in more information
about the product.
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The diffusion of innovation refers to the tendency of new
products, practices, or ideas to spread among people. Usually,
when new products or ideas come about, they are only adopted
by a small group of people initially; later, many innovations
spread to other people. The saturation point is the maximum
proportion of consumers likely to adopt. .
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The automobile as we know it was not invented in a single day
by a single inventor. The history of the automobile reflects an
evolution that took place worldwide. It is estimated that over
100,000 patents created the modern automobile. However, we
can point to the many firsts that occurred along the way.
Starting with the first theoretical plans for a motor vehicle that
had been drawn up by both Leonardo da Vinci and Isaac
Newton. In 1769, the very first self-propelled road vehicle was
a military tractor invented by French engineer and mechanic,
Nicolas Joseph Cugnot (1725 - 1804). Cugnot used a steam
engine to power his vehicle, built under his instructions at the
Paris Arsenal by mechanic Brezin. It was used by the French
Army to haul artillery at a whopping speed of 2 1/2 mph on
only three wheels. The vehicle had to stop every ten to fifteen
minutes to build up steam power. The steam engine and boiler
were separate from the rest of the vehicle and placed in the
front (see engraving above). This was the beginning of bad
luck for the inventor. During the early history of self-propelled
vehicles - both road and railroad vehicles were being
developed with steam engines. Historians, who accept that
early steampowered road vehicles were automobiles, feel that
Nicolas Cugnot was the inventor of the first automobile.
The automotive industry has certain trends it has to follow,
just like fashion designers and musical composers. In times of
recession and decreasing sales there is less room to take
chances and manufacturers are prone to follow the common
pattern as a safer bet rather than releasing a controversial
product or idea that might or might not be successful.
However throughout the automotive industry's history.They
were the first to build a steam car and a steam bus, to attempt
motor car manufacture, to build and operate petrol driven
passenger service and to import American Chassis in India.
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In 1944 Premier Automobiles Ltd incorporated and in 1947
their first vehicle was produced. In 1947 the Government of
Bombay accepted a scheme of Bajaj Auto to replace the cycle
rickshaw by the auto and assembly started in a couple of years
under a license from Piaggio. Manufacturing Programme for
the auto and scooter was submitted in 1953 to the Tariff
Commission and approved by the Government in 1959.
Premier Automobiles Limited, Mahindra & Mahindra and
TELCO received approval. M&M was manufacturing jeeps.
Few more companies came up later.
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Other three Car manufacturers namely, Hindustan Motors
Ltd., Premier Automobiles Ltd., Standard Motor Production of
India Ltd. MarutiUdyog Ltd., Hindustan Motors Ltd., Premier
Automobiles Ltd., Standard Motor Production of India Ltd.
and Sipani Automobiles.
Ashok Leyland Ltd. and TELCO were strong players in the
Commercial Vehicles sector. In 1983-84 Bajaj Tempo Ltd.
Growth and Landmarks of automobile industry in India :-
The automobile industry, one of the core sectors, has
undergone metamorphosis with the advent of new business
and manufacturing practices in the light of liberalization and
globalization. The sector seems to be optimistic of posting
strong sales in the next couple of years in view of a reasonable
surge in demand. The Indian automobile market is gearing
towards having international standards to meet the needs of
the global automobile giants and become a global hub.
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The conclusion after this study we can explaine thatdespite the
obvious economic advantage of using relatively known
personalities as endorsers in advertising campaigns, the choice
of celebrities to fulfill that role has become common practice
for brands competing in today's cluttered media environment.
There are several reasons for such extensive use of celebrities.
Because of their high profile, celebrities may help
advertisements stand out from the surrounding clutter, thus
improving their communicative ability.Celebrity endorsement
if used effectively, makes the brand stand out, galvanizes
brand recall and facilitates instant awareness. To achieve this,
the marketer needs to be really disciplined in choice of a
celebrity. Hence the right use of celebrity can escalate the
Unique Selling Proposition i.e. it can act as a source of brand-
building of a brand to new heights; but a cursory orientation of
a celebrity with a brand may prove to be claustrophobic for the
brand. It was found that people love to see celebrities
endorsing their brands so the involvement of common man is
pretty high with these celebrities. So marketers should use the
right celebrity matching with the product. Also it was found
that people love to see sports stars endorsing their automobile
than bollywood stars. This is because of the fact in India
Cricket is very famous and people worship players like
SachinTendhulkar,mahendar Singh DhoniSouravGanguly etc.
So they love to see these players endorsing their automobiles.
Endorsement on stock prices", Journal of Consumer Research,
Vol. 14 No.March, Roy, Shubhadip (2007)
", Journal of Business Research, Vol.Shimp (2007),
"Celebrities as spokesperson"Journal 37 No.1, pp.7184.
Goldsmith et al.(2002): ³Celebrity Retailing, Vol. 76 No.2,
pp.175-91.
http://en.wiki.wikipedia.com/indian_industry 6
www.managementparadise.com/consumerbehaviour_celebrity
6endorsement_automobiles.htm
http://www.businessweek.com/innovate/content/feb2008/id20
080227_377233_pa 6ge_2.htm
http://www.telegraphindia.com/1081007/jsp/opinion/story_99
33949.jsp
Economic Review 43, No. 5, pt.1, pp.826-845
Agrawal, Jagdish and Kamakura, Wagner A., (1995), "The
economic worth of celebrity
endorsers: An event study analysis," Journal of Marketing,
Chicago,Vol. 59, Iss. 3; pg.
56-63.