An investigation into celebrity endorsements strategy, how PepsiCo uses this strategy in the United Kingdom and Pakistan

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study we try to explore the concept of “Celebrity Endorsement Strategy” in a holistic context. The main focus of the research is on “Celebrity Endorsement Strategy” and its relation with “Impact on advertising techniques”. The research also analyzes many aspects of “Celebrity Endorsement Strategy” and tries to gauge its effect on “customer retention and capture”. Finally the research describes various factors which are responsible for “Celebrity Endorsement Strategy” and tries to describe the overall effect of “Celebrity Endorsement Strategy” on “the overall advertising strategies and tactics used to gain a competitive advantages over other portals available”.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the study1

Aim of the research2

Significance of the study2

Research Questions2

CHAPTER 2: LITERATURE REVIEW3

Introduction3

Advertising4

The Psychological Study of Advertising5

Historical Perspectives5

Contemporary Perspectives6

Strong and Weak Models of Advertising Effects7

Perception8

Exposure8

Attention10

Interpretation11

Memory and Learning12

Encoding, Storage, and Retrieval13

Short- and Long-Term Memory14

Processing Pictures versus Text15

Repetition and Learning16

Low- and High-Involvement Learning17

Persuasion18

Message Learning Approach18

Dual-Process Theories21

Celebrity Endorsement23

Impact of Celebrity Endorsements on Brands25

Brand Image28

Brand Strategy29

Celebrity Credibility29

Celebrity Likeability30

Theories on Effectiveness of Endorsers30

Pepsi Co. - Introduction of the company35

Origins35

Rise36

CHAPTER 3: METHODOLOGY38

Search Technique39

Literature Search39

Inclusion and exclusion criteria41

Search terms - key terms41

Additional Online searches41

Management42

Search rationale42

Critical Appraisal tool42

Appraisal limitations42

CHAPTER 4: DISCUSSION44

Pepsi and Celebrity Endorsement in UK and Pakistan44

CHAPTER 5: CONCLUSION49

Advantages of Celebrity Endorsement49

Credibility Establishment50

It Ensures Attention50

The Advertised Brands are easily recalled50

It has an Associative Benefit50

It Lessens a Broken Image51

REFERENCES52

CHAPTER 1: INTRODUCTION

Background of the study

In recent years celebrity endorsement has dominated marketing strategy in emerging European nations like France. This can be attested to three reasons. Firstly, there is an increased purchase power of a stronger middle class with more disposable income. Second, there is a higher demand from Kenyan consumers who are exposed to international advertisements and products. Lastly, there is a greater appreciation and following of local celebrities creating opportunity for firms to sell their products. Because of these three factors, the French marketers are increasingly using celebrities to sell their products (Swoboda, Hanna Schramm-Klein & Dirk Morschett, 2009, pp. 952).

A celebrity's ability to connect with consumers attracts the attention of businesses, which in turn capitalize on this recognition as a means of reaching target groups of products, goods, services and/or ideas. In France, the celebrity endorsement is becoming widespread. France's leading weekly entertainment magazine, Pulse, highlights the activities of entertainment and sports personalities. The magazine keeps readers up to date with what their favorite celebrities are up to and also highlights notorious behaviors by the stars. Just as in the United States, celebrities seemed to benefit from the publicity; negative or otherwise ...