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CHAPTER-1

Introduction

One of the most widely held beliefs in advertising professes that celebrity ad endorsementsenhance persuasion and improve advertising effectiveness. The rationale behind this

perspective argues that celebrities are better able to connect with viewers by increasing

attention levels, being likeable, by utilizing perceived credibility to lobby for the product,

and, ultimately, by merging positive associations of the celebrity with the product. In brief,

celebrities are supposed to make viewers feel more connected with the product and more

likely to choose the product over the competition. This positive view of celebrity

endorsement is so widespread that it is not surprising that celebrities currently appear in

about 15 percent of advertisements in the United States while an estimated $50 billion is

invested globally on corporate sponsorships and endorsements (Crutchfield, 2010).

Objective: Effectiveness of celebrity endorsement in advertisement and sales of

product. By taking two products of the PepsiCo company-kurkure and slice

How much the sales of the kurkure and slice have been affected by the celebrity

endorsement.

Identify the nature of the consumer buying behaviour

Which brand of chips and coldrinks are mostly preferred by the consumers.

Which source of advertisement is more effective?

Do the presence of celebrities effects the sales

The persuading factor to purchase the product

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WHAT IS PRODUCT ENDORSEMENT?

A product endorsement is a form of testimonial from someone which indicatesthat they like orapprove of a product.

Commonly, product endorsements are solicited from people who aresociallyprominent, allowing companies to advertise their products with statements likeas usedby such-and-such an actress, or the official product of company/eventX.

It's hard to miss a product endorsement on product packaging and inadvertisements; most companies keep theirendorsements front and center sothat they are always in the public eye.

WHAT IS CELEBRITY ENDORSEMENT?

The use of celebrities in order to increase the sales and/ or the recall value of a brand iscalled celebrity endorsement

"Studies show that using celebrities can increase consumers' awareness of thead, capture[their] attention and make ads more memorable"

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Kurkure and slice is the product of pepsico company

PEPSICO:

PepsiCo Inc.(NYSE:PEP) is an Americanmultinationalcorporation

headquartered inPurchase,New York, United States, with interests in the

manufacturing, marketing and distribution of grain-based snack foods, beverages,

and other products. PepsiCo was formed in 1965 with the merger of thePepsi-Cola

Company andFrito-Lay, Inc. PepsiCo has since expanded from its namesake

productPepsito a broader range of food and beverage brands, the largest of which

include an acquisition ofTropicanain 1998 and a merger withQuaker Oatsin

2001which added theGatoradebrand to its portfolio as well.

As of 2009, 19 of PepsiCo's product lines generated retail sales of

more than $1billion each, and the companys products were distributed acrossmore than 200 countries, resulting in annualnet revenuesof $43.3 billion. Based

on net revenue, PepsiCo is the second largest food & beverage business in the

world. Within North America, PepsiCo is ranked (by net revenue) as the largest

food and beverage business.

http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=pephttp://www.nyse.com/about/listed/quickquote.html?ticker=pephttp://www.nyse.com/about/listed/quickquote.html?ticker=pephttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/Frito-Layhttp://en.wikipedia.org/wiki/Frito-Layhttp://en.wikipedia.org/wiki/Frito-Layhttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Net_revenuehttp://en.wikipedia.org/wiki/Net_revenuehttp://en.wikipedia.org/wiki/Net_revenuehttp://en.wikipedia.org/wiki/Net_revenuehttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Quaker_Oats_Companyhttp://en.wikipedia.org/wiki/Tropicana_Productshttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Frito-Layhttp://en.wikipedia.org/wiki/Pepsi-Colahttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Purchase,_New_Yorkhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://www.nyse.com/about/listed/quickquote.html?ticker=pephttp://en.wikipedia.org/wiki/New_York_Stock_Exchange

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Indra Krishnamurthy Nooyihas been the chief executive of

PepsiCo since 2006, and the company employed approximately 285,000 people

worldwide as of 2010. The companys beverage distribution and bottling is

conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is

aSIC 2080(beverage) company.

PepsiCo, Inc. is one of the world's top consumer product

companies with many of the world's most important and valuable trademarks.

PepsiCo was found in 1965 through the merger of Pepsi cola and Frito Lays.

Tropicana was acquired in 1998 and PepsiCo merged with the Quaker oats

company. The company consists of Frito lay North America, PepsiCo, beverages

north America, PepsiCo international and Quaker food north America. .

As 2001 began, PepsiCo was on the verge of adding to its food

and drink empire the brands of the Quaker Oats Company, which include Gatorade

sports drink, Quaker oatmeal, and Cap' n Crunch, Life, and other ready-to-eatcereals. PepsiCo brands are available in nearly 200 countries and generating sales

at the retail level of about 92 billion.I ts Peps-cola Company division is the second

largest soft drink business in the world, with a 21 percent share of the carbonated

soft drink market worldwide and 29 percent in the United States. Three of its

brands; Pepsi-Cola, Mountain Dew, and Diet Pepsi are among the top ten soft

drinks in the U.S. market.

The Frito-Lay Company division is by far the world leader in

salty snacks, holding a 40 percent market share and an even more staggering 56

percent share of the U.S. market. In the United States, Frito-Lay is nine times the

size of its nearest competitor and sells nine of the top ten snack chip brands in the

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supermarket channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos, and

Cheetos. Frito-Lay generates more than 60 percent of PepsiCo's net sales and more

than two-thirds of the parent company's operating profits. The company's third

division, Tropicana Products, Inc., is the world leader in juice sales and holds a

dominant 41 percent of the U.S. chilled orange juice market.

Our Mission and Vision

Our Mission

Our mission is to be the world's premier consumer products company focused on

convenient foods and beverages. We seek to produce financial rewards to investors

even as we provide opportunities for growth and enrichment to our employees, our

business partners and the communities in which we operate. And in everything we

do, we strive for honesty, fairness and integrity.

Our Vision

PepsiCo's responsibility is to continually improve all aspects of the world in which

we operateenvironmental, social, economiccreating a better tomorrow than

today.

Our vision is put into action through programmes and a focus on environmental

stewardship, activities to benefit society and a commitment to build shareholder

value by making PepsiCo a truly sustainable company.

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PepsiCo Values & Philosophy

Our values and philosophy are a reflection of the socially and environmentally

responsible company we aspire to be. They are the foundation for every business

decision we make.

Our Commitment

We are committed to delivering sustained growth through empowered people

acting responsibly and building trust.

What it Means

1. Sustained Growth is fundamental to motivating and measuring our success.

Our quest for sustained growth stimulates innovation, places a value on

results and helps us understand whether today's actions will contribute to our

future. It is about the growth of people and company performance. It

prioritizes both making a difference and getting things done.

2. Empowered People means we have the freedom to act and think in ways

that we feel will get the job done, while adhering to processes that ensure

proper governance and being mindful of company needs beyond our own.

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3. Responsibility and Trust form the foundation for healthy growth. We hold

ourselves both personally and corporately accountable for everything we do.

We earn the confidence others place in us as individuals and as a company.

By acting as good stewards of the resources entrusted to us, we strengthen

that trust by delivering on our promises and remaining committed to

succeeding together.

Guiding Principles

We uphold our commitment with six guiding principles. We must always strive to:

1. Care for our customers, our consumers and the world we live in.

We are driven by the competitive spirit of the marketplace, but we direct this spirit

toward solutions that benefit both our company and our constituents. Our success

depends on a thorough understanding of our customers, consumers and

communities. To foster this spirit of generosity, we go the extra mile to show we

care.

2. Sell only products we can be proud of.

The true test of our standards is that we are able, without reservation, to consumeand personally endorse the products we sell. Our absolute endorsement extends to

every part of the business, from the purchase of ingredients to the point where our

products reach consumers.

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3. Speak with truth and candour.

We tell the whole story, not just what is convenient to our individual goals. In

addition to being clear, honest and accurate, we take responsibility for ensuring

that our communications are understood.

4. Balance the short term and long term.

In every decision, we weigh both short-term and long-term risks and benefits.

Maintaining this balance helps sustain our growth and ensures that our ideas and

solutions are relevant both now and in the future.

5. Win with diversity and inclusion.

We embrace people with diverse backgrounds, traits and ways of thinking. Our

diversity brings new perspectives into the workplace and encourages innovation,

helps us identify new market opportunities, develop new products and sustain our

commitment to growth through empowered people.

6. Respect others and succeed together.

We depend on people who can work together, whether in structured teams or

through informal collaboration. Mutual success depends on mutual respect, for

both those within and outside the company. While our company is built on

individual excellence, the value we attach to teamwork and mutual respect turns

our goals into accomplishments.

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Kurkure

Brand History

Launched in 1999, this perfect namkeen snack, developed entirely in India, has

come to be identified with fun and lovable human quirks. It developed an even

stronger identity through associations with celebrities like Juhi Chawla (2003) and

Kareena Kapoor (2008), well-known Indian actors.

About the Brand

Brand PromiseKurkure is a crunchy new-age namkeen snack brand which symbolizes light-

hearted fun.

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Embodying the spirit of India, Kurkure has found a home in millions of hearts and

minds and enjoys the position of a strong Lovemark brand in India.

Juhis vibrant and fun-loving personality complements and embodies the essenceof Kurkure. Over the years, Kurkure has journeyed effortlessly from being a snack

with a twist to becoming an integral part of Indias teatime menu and an

embodiment of endearing human imperfections or tedhapan.

Brand Advantage

Made with trusted kitchen ingredients: 100% vegetarian

All the raw materials used in Kurkure comply with the Prevention of Food

Adulteration Act and rules that govern the manufacture, distribution and sale of

Kurkure.

All Kurkure ingredients are used daily in households for the preparation of various

edible items.

Innovations

Kurkure has constantly re-invented itself to sustain its relevance to Indian culture

and the Indian ethos. Not only does Kurkure provide an inimitable taste and

superior quality, it has also brought fame and happiness to many through its Chai-

time-achievers face on pack initiative.

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Slice

SLICEPURE MANGO PLEASURE

Brand History

Slice was launched in India in 1993 as a refreshing mango drink and quickly went

on to become a leading player in the category.

In 2008, Slice was relaunched with a winning product formulation that made

consumers fall in love with its taste. With new pack graphics and clutter-breaking

advertising, Slice has built a powerful appeal.

Brand Advantage

With the launch of the Aamsutra campaign in 2008, its winning taste and

appealing pack graphics, Slice created a great deal of excitement in its category

and celebrated the indulgence in mangoes like no other brand had done before.

While other players have portrayed the mango as a simple and innocent fruit, Slice

celebrates the sheer indulgence and sensuality involved in consuming a mango.

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The creative Aamsutra idea communicates the experience of extreme sensuous

pleasure through the act of drinking Slice.

Slice was the first brand ever in the Juice and Juice Drinks category to sign onBollywood diva Katrina Kaif as the brand ambassador for Slice.

In 2009, Slice took the notion of indulgence to a whole new level with the launch

of the Slice Pure Pleasure Holidays, giving its consumers a chance to win

luxurious all-expenses-paid holidays to dream European destinations like Paris,

Vienna, Greece and Venice.

QUICK BRAND FACTS

Slice was launched in India in 1993

Slice Mangola was introduced in 1994

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Chapter-3

RESEARCH METHODOLOGY

The task of actually selecting a method of research is the core of any survey. In this

survey we have used the QUESTIONNAIRE METHOD.

Our sample size was of 100 people.

We ask customers to fill the questionnaire on the basis of their buying

behavior.

questionnaire includes only 12 questions,

The questions were interesting easy to answer.

We mainly covered the family who are having kids and the youths.

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CHAPTER-4

RESEARCH ANALYSIS

Q-1 Do you consume snacks and soft drinks?

Regularly

Occasionally

Once in a month

Not at all

Analysis: we have found that about 50% people consume snacks regular 36 occasionally 10 % in

month and 4% not at all. We can say that people consume on regular or occasional basis more

50%

36%

10%

4%

Chart Title

Regularly Occasionally Once in a month Not at all

Yes 35

No 15

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Q-2 Which brand of snacks does you use (can tick more than 1)

Kurkure

Uncle Chips

Any other

Anslysis: there is tough competition between kurkure and uncle chips and 29% people prefer

other brand.

39%

32%

29%

Chart Title

Kurkure Uncle Chips Any other

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Q-3Which brands of Soft drinks do you use (can tick more than 1)

Slice

Mazaa

Any other

Analysis: about 41% people prefer other brands but mazaa have good market share.

24%

35%

41%

Chart Title

Slice Mazaa Any other

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Q4. Which source of advertisement do you think is more effective?

Television

Hoarding Newspaper

Radio

ANALYSIS: TELEVISION IS MORE EFECTIVE

ANALYSIS: TELEVISION IS MORE EFECTIVE WITH 55%

In just 20 seconds with whole lots of frames and with catchy jingle that can arrest the

presence of elders and the children

television ads have also become a matter of enjoyment

The power of video to tell stories and evoke emotions is unparalleled by any other push-

media channel.

TV-advertising market was less affected by the recession and recovered faster than many

other channels, notably print.

TELEVISIO

N

55%

HOARDIN

G 30%

NEWSPAP

ER

14%

RADIO

4% Sales

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. However, targ.ad TVallows state-of-the art targeting on demographics, interests and

limits the exposure.

That leads to high acceptance rates and rather low skip-rates by the consumer.

HORDING: They are less effective then television advertisement

As they are not movable

Moving

Hoardings are not forced to watch like in television

In hurry people miss to watch those hoardings sometimes

There are so many hoardings seen outside that its hard to remember them specifically.

NEWSPAPER:

Print media is less effective the TV and hoarding As there are so many new channel available now a days.

People dont find time to read newspaper.

So they watch news channel rather than reading news paper

RADIO

Advertisement on radio is very less effective among all.

As u cant see anything.

Listening is less effective then visual.

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Q5. Are you aware of the celebrity endorsing the product you use?

Yes No

ANALYSIS: MOST OF THE PEOPLE ARE AWARE OF THE CELE BRITY WHO IS

ENDORSING THE PROUCT ETC

BECAUSE:

MOSTLY THE CELEBRITIES ARE FILM STARS OR SPORTS PERSON

SAME LIKE: CRICKET, BADMINTON, TENNIS, SHOOTING,

BOXING,ATHELETS , RESTLING

FILM STAR OR T.V SERIAL STAR

INDIANS ARE GREAT FAN OF BOTH FILM OR T.V STAR AND SPORTS

SO ITS EASY FOR THEM TO RECOGANISE.

AS PEOPLE WATCH THEM REGULARY.

Sales

YES

NO

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Q6. Do you watch the advertisements because of the presence of celebrity?

Yes No

ANALYSIS:

Celebrity endorsements works best if the celebrity is not too famous else they tend to

overshadow the brands in the advertising.

Celebrity endorsing can be used as a complimentary with a good idea to catch the attention of

the eyeballs.

Another advantage is the celebrities are helpful in attending the events & campaigns of the

company. At times the employees feel proud of having a celebrity endorsing their company.

The competitions and the events which involve a celebrity are bound to attract more attention

than plan vanilla ones.

Celebrity endorsements work best when the celebrity is believable

YES

40%

NO

60%

Sales

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and has the exclusivity factor attached with him

. Consider the Indian scenario; Amitabh Bachan the reining star in Bollywood promotes

so manybrands that its hard for the consumer to believe most of the times.

Similarly with M.S. Dhoni (Captain Indian Cricket Team), Shahrukh Khan (movie star)

& Sachin Tendulkar (cricket star) have lost total credibility due to multiple appearancesand dominating the ad space most of the time.

Sometimes consumers are fatigued of seeing the celebritys face all over the place

Now if Rakhi Sawant starts promoting some products, its sure to increase the irritation

level among the consumers.

Athletes arecompounded by having multiple contracts that are short-term and change

frequently.

Q7. Do you think existence of celebrity in Slice and Kurkure has affected the sales?

Yes

No

Interpretation:

We can see from the table that/ It was found that 70% of the people think that

existence of celebrity in Slice and Kurkure has affected the sales whereas 30% do

not think that celebrity affects the sales of the products.

Yes

70%

No

30%

%

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Q8. What is the persuading factor to purchase the product?

Interpretation: It was found that 16% of the people purchase the products due to

brand name, whereas 50% due to taste and 34% due to the presence of celebrity.

Brand Name

16%

Taste

50%

Celebrity

34%

%

Brand Name 8

Taste 25

Celebrity 17

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Q9. Do you think celebrities endorsing the product themselves use it?

It was found that 70% of the people are of the opinion that celebrities endorsing the

product themselves use it whereas 15% are of the opinion that celebrities endorsing

the product themselves donot use it.

%

Yes

No

Yes 35

No 15

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Q.10. Are you aware of the celebrity endorsing.

Kurkure: Juhi Chawla

Slice: Katrina Kaif

Brands No. Of Respondents

Kurkure 75

Slice 60

Interpretation:

About 56% of the respondents were aware of the celebrity JUHI CHAWLA

endorsing Kurkure and 44% were aware of KATRINA KAIF endorsing SLICE

out of 100 respondents.

Lays

56%

Slice

44%

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Q.11 Suggesting celebrity for brands?

Brands Celebrity

Kurkure Karishma kapoor, Kajol, Madhuri dixit.

Interpretation:

About 34% were willing KARISHMA KAPOOR to endorse the brand where as

26% were willing to see MADHURI DIXIT and with a surprise about 40% want

KAJOL to be the brand ambassador of lays.

0

5

10

15

20

25

30

35

40

Karishma Kapoor Madhuri Dixit Kajol

Lays

Lays

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Brands Celebrity

Slice Kareena kapoor, Priyanka Chopra, Asin.

Interpretation:

About 45% of respondents are willing to have Kareens Kapoor to endorse slice

where as 26% want Priyanka Chopra and 29% will be happy to see Asin endorsing

it.

0

5

10

15

20

25

30

35

40

45

Kareena kapoor Priyanka Chopra Asin

Slice

Slice

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Q12. Will you switch over if your favourite celebrity endorses other products?

Yes 35

No 65

Interpretation:

About 35% of respondents were willing to switch over if their favourite celebrity

endorses other products. But about 65% were using the brands not because ofcelebrity endorsing the brand.

YES

35%

NO

65%

Respondents

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Q13. If celebrities would not have endorsed Kurkure and Slice, then would you

have used the products?

YES 88

NO 12

Interpretation:

About 88% of respondents dont care about celebrity but only 12% accepts the factthat they would not have used the product.

Yes

88%

No

12%

Respondents

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CHAPTER-5

CONCLUSION AND FINDINGS

Celebrities have always been the easiest way for a new product launch(consumer goods)

They will remain to do so in the near future on account of their mass appeal anda world full of star stuck loyal fans.

But the impact on the brand is much greater than just an advertisement showinga celebrity.

Celebrity endorsement cannot guarantee fool-proof success.

The celebrity endorsement strategymust be integrated with target marketcharacteristics,

and the other elements of the marketingmix such as product design, branding,packaging, and pricing.

In general celebrity endorsements are impelled by virtue of the followingmotives:

Instant Brand Awareness and Recall. Celebrity values define, and refresh the brand image.

Celebrities add new dimensions to the brand image.

Instant credibility or aspiration PR coverage.

Celebrities are no doubt good at generating attention, recall and positive attitudestowards advertising provided that they are supporting agood idea,

there is an explicit fit between them and the brand.

Kurkure

1. Kurkure, The product prides itself on being home-grown, and claims to cater to Indian needs

at the concept, product and consumer levels.

2. In 2000-01, it was popularised with the tagline, 'Khub karare khub chatpate'.

3. After that came the 'Kya Family Hai' it has evolved into a full-fledged family brand.

4. For the last few years, consumers have been exposed to the much-appreciated tagline,

'Tedha hai par mera hai' that continues in this new campaign.

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5. He Kurkure, Vidur Vyas, head, marketing, Pepsi Foods, tells goes on to say that the

campaign is centred on the modern-day fact that people do not spend adequate time with

their families, owing to hectic professional schedules and time-consuming gadgets.

Positive effects of brand ambassador in the sale n promotion ofkurkure:

1. Kurkure is now known as famous family snacks.2. Juhi chawala is well known among all type of customer3. Because of jhuhi the sale of krkure has increased by 40%.4. Its is also used in the form of gifts rather than just snacks only.:

slice

Slice, the mango flavoured drink from the PepsiCo stable, launched its campaign, 'Katrina Ka Number, Crown ke

Under' to mark the start of summer.

Sale of slice is not so increased by Katrina as brand ambassador:

Positive effects of brand ambassador endorsing slice:

1. Katrina, the brand ambassador of slice is a well known actress.

2. People are crazy about her.

3. Become well known among other brands.

4. Slice is known because of Katrina.

5. People who dont like hard cold drinks have this as a option.

Negative effects of brand ambassador endorsing slice:

1. Katrina is focused more than the product slice.

2. People want her rather than slice.

3. Slice is a sweet mango drink, but coldrinks are rather is consider to be strong

drinks, which is missed in slice.

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4. Its cost is also more than other coldrinks

5. Rarely available in retail stores.

6. Sale of slice is not so increased by Katrina as brand ambassador

Effectiveness of celebrity endorsement in

advertisement and sales of product

Name: Age:

Place: Gender:

Q1.Do you consume chips and soft drinks?

Regularly

Occasionally

Once in a month

Not at all

Q2. Which brand of chips does you use (can tick more than 1)

Lays

Uncle Chips

Any other

Q3.Which brand of Soft drinks do you use (can tick more than 1)

Mazaa

Slice

Any other

Q4. Which source of advertisement do you think is more effective?

Television Hoarding

Newspaper

Radio

Q5. Are you aware of the celebrity endorsing the product you use?

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Yes No

Q6. Do you watch the advertisements because of the presence of celebrity?

Yes No

Q7.Do you think existence of celebrity in Slice and lays has affected the sales?

Yes No

Q8. What is the persuading factor to purchase the product?

Brand name

Taste

Celebrity

Q9. Do you think celebrities endorsing the product themselves use it?

Yes No

Q.10. Are you aware of the celebrity endorsing.

Lays:

Slice:

Q.11. Would you like to suggest any celebrity for the product you use?

Q.12. Will it is effective if Mazaa and Uncle Chips endorse themselves through celebrity?

Yes No

Q13. Will you switch over if your favourite celebrity endorses other products?

Yes No

Q14. If celebrities would not have endorsed Lays and Slice, then would you have used

the products?

Yes No

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