Longish Term Paper

ON

“ENHANCING BRAND CREDIBILITY VIA CELEBRITY ENDORSEMENT:

SKINCARE PRODUCTS IN PUNE”

Subject- Research Methodology

Subject Code- PG 202

Trimester II

3 rd Internal Evaluation

For The Award of

POST GRADUATE DIPLOMA IN MANAGEMENT

(Batch 2024-26)

AWARDED BY

SUBMITTED TO

Dr. Kashmira Lonkar

SUBMITTED BY

PRN Name of Students

026 Aman Saini
039 Anoushka Vashist
057 Ayush Bajpayee
134 Mitali Sharma
154 Onkarsing Gaherwar
191 Rahul Ugale

LEXICON MANAGEMENT INSTITUTE OF LEADERSHIP & EXCELLENCE,

WAGHOLI, PUNE
 DECLARATION

We the undersigned, studying in the first year of POST GRADUATE DIPLOMA IN

MANAGEMENT (PGDM) at Lexicon Management Institute of Leadership and Excellence,
MILE Tower, Wagholi, Pune, hereby declare that we have completed the Longish Term Paper
“ENHANCING BRAND CREDIBILITY VIA CELEBRITY ENDORSEMENT:
SKINCARE PRODUCTS IN PUNE ” as a part of the course requirements- 3rd Internal
evaluation for the subject Research Methodology(Tri- II) for award of POST GRADUATE
DIPLOMA IN MANAGEMENT (PGDM) Program.

We also declare that the work undertaken by me is original and has not been copied from any
other source. We further declare that the information presented in this project is true and
original and has not been submitted to Lexicon or any other Institute for any other examination,
before this. It is based on the original research work and will be used only for the academic
purpose by following all the research ethics guidelines. The research will not be produced in
any condition as a source of information to an industry for any other purpose watsoever.

Date: 07/03/2025

Place: Pune

PRN Name of Students Sign

026 Aman Saini
039 Anoushka Vashist
057 Ayush Bajpayee
134 Mitali Sharma
154 Onkarsing Gaherwar
191 Rahul Ugale
 ACKNOWLEDGEMENT

It is our privilege to express gratitude & sincere thanks to Lexicon Management Institute of
Leadership and Excellence, Pune for giving the opportunity to undertake the LTP report on the
topic “ENHANCING BRAND CREDIBILITY VIA CELEBRITY ENDORSEMENT:
SKINCARE PRODUCTS IN PUNE”.

We express sincere thanks to my research supervisor, Dr. Kashmira Lonkar, for guiding from
the inception till the successful completion of the LTP. We sincerely acknowledge her for
extending her valuable guidance, support for literature, critical reviews of projects researches,
above all the moral support she provided us at all stages of this LTP. We would also like to
thank the supporting stakeholders in their contribution and cooperation throughout this LTP.

PRN Name of Students Sign

026 Aman Saini
039 Anoushka Vashist
057 Ayush Bajpayee
134 Mitali Sharma
154 Onkarsing Gaherwar
191 Rahul Ugale
EXECUTIVE SUMMARY
 TABLE OF CONTENTS

PARTICULARS PAGE NO

Chapter 1 Introduction of the

Topic
Chapter 2 Company/ Sector
Profile
Chapter 3 Review of Literature

Chapter 4 Research Methodology

Chapter 5 Data Analysis &

Interpretation

Chapter 6 Findings & Suggestions

Chapter 7 Conclusion

References/
Bibliography
Annexure-
Questionnaire
 Chapter I - Introduction of the Topic
1.1 Introduction

In a world where consumer choices are expanding every day, establishing brand credibility is
one of the most critical challenges faced by companies. This is particularly true in the skincare
industry, where trust plays a significant role in influencing purchasing decisions. With
numerous brands promising flawless skin, anti-aging benefits, and dermatologically tested
formulas, consumers often struggle to differentiate between genuine claims and marketing
hype. As a result, brands turn to celebrity endorsements to build credibility, capture attention,
and create an emotional connection with their audience.
When a popular celebrity endorses a skincare product, it adds a layer of trust and familiarity.
Consumers tend to associate their favourite celebrities with aspirational lifestyles, good looks,
and success, making them more inclined to believe in the effectiveness of the endorsed product.
However, while celebrity-driven marketing campaigns are widely used, an important question
remains: Does celebrity endorsement genuinely enhance brand credibility, or is it just an
expensive promotional tactic?
The city of Pune, known for its modern, educated, and digitally active consumer base, provides
an interesting landscape for this study. With a growing emphasis on skincare and wellness,
Pune’s consumers are increasingly aware of product ingredients, ethical sourcing, and brand
reputation. While many brands rely on celebrities to boost their image, consumers today are
also influenced by word-of-mouth recommendations, social media reviews, and
dermatological endorsements. This research aims to explore whether celebrity endorsements
in Pune’s skincare market truly influence brand credibility or if consumers have begun to
look beyond star power when choosing skincare products.

1.2 Aims and Objectives of the Study

This research seeks to understand the role of celebrity endorsements in enhancing the
credibility of skincare brands in Pune. The primary objectives of this study are:
1. To determine whether celebrity endorsements positively influence consumer trust in
skincare brands, leading to higher sales and brand loyalty. This will involve examining
factors such as credibility perception, emotional appeal, and the influence of celebrity
reputation on brand image.
2. To analyse consumer behaviour and decision-making processes when purchasing skincare
products. The study will investigate whether celebrity endorsements alone are enough to
 convince consumers to try a product, or if additional factors such as product quality,
ingredients, and peer reviews carry more weight.
3. To understand the scope of celebrity endorsements as a long-term branding strategy in
Pune’s skincare industry. This will help determine whether celebrity-driven campaigns
provide sustained credibility or if their impact fades over time as consumer preferences
evolve.

1.3 Significance of The Study

This research is significant for multiple stakeholders, including marketers, brand managers,
and consumers in the skincare industry. By examining the effectiveness of celebrity
endorsements in enhancing brand credibility, the study provides valuable insights into
consumer behaviour and brand perception.
1. Understanding Consumer Trust & Brand Credibility – This study will help skincare
brands understand whether celebrity endorsements genuinely enhance trust or if consumers
rely on other factors, such as product quality, dermatological recommendations, or online
reviews.
2. Providing Strategic Insights for Marketers – The findings will assist marketing
professionals in crafting more effective branding and endorsement strategies by
identifying the key factors that drive consumer confidence and purchase decisions.
3. Evaluating the Long-Term Impact of Celebrity Endorsements – The study will analyse
whether celebrity endorsements provide a sustainable advantage or if their impact is short-
lived, allowing brands to make informed investment decisions regarding endorsements.
4. Comparing Alternative Credibility Strategies – This research will explore other trust-
building mechanisms, such as dermatologist approvals, influencer marketing, and
customer testimonials, to help brands determine the most effective approach for engaging
consumers in Pune’s skincare market.
1.4 Limitations of The Study

While this study aims to provide valuable insights into the role of celebrity endorsements
in brand credibility, certain limitations must be acknowledged:

1. Limited Geographic Scope – The study focuses only on Pune’s skincare market, which
may not fully represent consumer behaviour and brand perception in other cities or regions.

2. Subjectivity in Consumer Responses – Consumer opinions on celebrity endorsements

can be highly subjective and influenced by personal preferences, social influences, and
brand loyalty, which may introduce variability in the results.

3. Time Constraints – Since consumer preferences and marketing trends evolve rapidly, the
study may not capture long-term shifts in attitudes toward celebrity endorsements over
extended periods.

1.5 Scope of the Study

This study will focus on both emerging and well-established skincare brands that use
celebrity endorsements in their marketing strategies. The research will take into account
various consumer demographics, including age groups, gender, and purchasing behaviours,
to provide a comprehensive understanding of how different consumer segments perceive
celebrity-endorsed skincare products.

Additionally, the study will explore alternative credibility-building strategies, such as

dermatologist approvals, influencer marketing, and consumer testimonials, to compare their
effectiveness against celebrity endorsements. The insights from this research will be valuable
for marketers, brand managers, and skincare companies looking to refine their branding
strategies and make informed decisions on how to build long-term trust with consumers.
 Chapter 2 – Sector Profile
2.1 Introduction

The global skincare industry has witnessed significant growth over the past few decades, driven
by increasing consumer awareness, advancements in dermatological research, and the rise of
social media influence. Skincare products, ranging from basic moisturizers to advanced anti-
aging serums, have become an essential part of daily routines for millions of consumers
worldwide.

In Pune, the skincare market is evolving rapidly, with consumers becoming more discerning
about product ingredients, brand reputation, and effectiveness. While international brands
dominate the premium segment, several Indian brands have emerged, offering organic and
Ayurvedic solutions tailored to local preferences.

To analyse the effectiveness of celebrity endorsements in building brand credibility, this

study uses SWOT Analysis as a strategic tool. The SWOT framework helps identify key
strengths, weaknesses, opportunities, and threats in Pune’s skincare market, providing a
structured approach to understanding industry dynamics.

2.2 Brief History

The concept of skincare dates back thousands of years, with ancient civilizations such as Egypt,
Greece, and India using natural ingredients like honey, turmeric, and essential oils for skin
nourishment. Over time, skincare evolved from homemade remedies to mass-produced
cosmetics, with scientific advancements leading to the development of clinically tested
skincare solutions.

In India, skincare has been deeply influenced by Ayurveda and herbal formulations, which
continue to be widely used alongside modern dermatological products. Over the past two
decades, globalization and digital marketing have transformed the Indian skincare industry,
making international brands easily accessible and increasing consumer awareness about
skincare routines, ingredients, and efficacy.

With Pune emerging as a cosmopolitan hub with a large population of young professionals and
students, the demand for skincare products has surged. The presence of premium skincare
brands, dermatology clinics, and growing e-commerce platforms has further fuelled this
industry’s growth in the city.
2.3 Theoretical Foundations

The impact of celebrity endorsements on brand credibility is deeply rooted in marketing

theories, particularly:

1. Source Credibility Theory – This theory suggests that a message is more persuasive when
delivered by a credible source. In the context of celebrity endorsements, consumers are
more likely to trust a skincare brand if they perceive the celebrity as knowledgeable,
attractive, and reliable.

2. Brand Equity Theory – This theory explains how a strong brand identity leads to higher
consumer trust and loyalty. Celebrity endorsements can enhance a brand’s equity by
associating it with the positive image and popularity of the celebrity.

3. Social Influence Theory – Consumers tend to follow influential figures in society,

including celebrities, when making purchasing decisions. This theory supports the idea that
a well-known celebrity can shape consumer perceptions and preferences in the skincare
sector.

These theories provide a framework for understanding how endorsements impact

consumer behaviour and why they are widely used as a marketing strategy in the skincare
industry.

2.4 Issues and Challenges

Despite the growing popularity of celebrity endorsements in skincare branding, several

challenges and concerns need to be addressed:

1. Authenticity vs. Marketing Gimmick – Many consumers are sceptical about whether
celebrities genuinely use the products they endorse or if they are simply promoting them
for financial gain. This scepticism can reduce the effectiveness of endorsements.

2. Mismatched Celebrity-Brand Association – Not all celebrity endorsements yield positive

results. If a celebrity’s personal image or lifestyle does not align with the brand’s identity,
it can lead to a lack of credibility and consumer distrust.

3. Market Saturation – With multiple brands using celebrity endorsements, consumers may
become immune to such marketing tactics, making it harder for brands to stand out.
4. Regulatory and Ethical Concerns – The Advertising Standards Council of India
(ASCI) has issued guidelines on misleading advertisements, requiring brands and
celebrities to ensure their claims are backed by scientific evidence. This has created a legal
challenge for skincare brands making bold promises.

2.5 SWOT Analysis of the Skincare Industry in Pune

STRENGTHS:
1. High Consumer Demand – Rising awareness about skincare, self-care routines, and
beauty trends has fuelled product demand.
2. Expanding Market – Pune has a growing middle-class and premium consumer
segment, creating opportunities for both affordable and luxury skincare brands.
3. Influence of social media & E-Commerce – The rise of Instagram, YouTube influencers,
and online shopping platforms has made skincare products more accessible.
4. Advancements in Dermatology – Continuous innovation in dermatological research has
led to the creation of effective and scientifically-backed skincare solutions.

WEAKNESSES:
1. Price Sensitivity – Many consumers in Pune are price-conscious and prefer affordable
alternatives over premium brands.
2. Lack of Consumer Awareness – While awareness is growing, some consumers still lack
knowledge about skincare ingredients and their effects.
3. Dependence on Celebrity Marketing – Over-reliance on celebrity endorsements can be
risky if the celebrity’s reputation declines or if consumers become desensitized to
endorsement strategies.

OPPORTUNITIES:
1. Rise of Natural & Organic Skincare – Consumers are increasingly shifting toward
chemical-free, herbal, and Ayurvedic skincare solutions, creating opportunities for
homegrown brands.
2. Customization & Personalization – Brands offering customized skincare solutions
based on skin type, weather conditions, and lifestyle are gaining popularity.
3. Technology Integration – AI-driven skincare analysis and virtual consultations are
helping brands offer personalized recommendations, enhancing consumer trust.
THREATS:

1. Competition from International Brands – Global skincare giants like L’Oréal, Estée
Lauder, and The Ordinary dominate the high-end market, making it difficult for local
brands to compete.
2. Regulatory Restrictions – Government regulations on cosmetic advertising and
ingredient transparency could impact how brands market their products.
3. Consumer Scepticism – Misinformation, misleading claims, and fake reviews have led
to increased scepticism, affecting brand credibility.