1. AMITABH BACHCHAN AND PEPSICO INDIA:
CHILD QUESTIONS – CHILDISH RESPONSE?
This case study explores the relationship between a brand and its brand endorser and most
importantly enables an interesting debate on the moral (fiduciary) responsibility of the brand
endorser. A usual interaction with students turned out to be an unusual episode in Indian
advertising. In January 2014, the Bollywood legend, Amitabh Bachchan (Bachchan) was
interacting with students at IIM Ahmedabad where in response to one of the questions he
recounted an earlier experience (when he was confronted by a little girl in Jaipur who wondered
why he promoted a soft drink that her teacher had branded as ‘poison’). He shared that, “this
impression is on the mind of the people... so I stopped endorsing Pepsi.”1
After having endorsed
the brand for 8 years, the sudden public revelation created ripples in the Indian advertising
industry damaging Pepsi’s brand equity. Was he right in doing so or could he have done it in a
different way? Should a brand endorser not have a moral (fiduciary) relationship with the brand
even after the formal contract expired? What should be the relationship between a brand and
brand endorser? How do such incidents affect the company’s reputation and the endorser’s
brand endorsement potential?This case study offers the scope to debate the appropriateness of
Bachchan’s actions and is suitable to teach the concepts of Brand Endorsement, Brand Endorsers,
Celebrity Endorser and their Social and Moral Responsibility in the courses of Marketing
Management; Advertising and Promotion.
Pedagogical Objectives
• To discuss and debate on the appropriateness and the desirability of Amitabh Bachchan’s
public revelation of the reasons that have prompted him to disassociate himself from
Pepsi’s brand endorsement
• To analyze the impact of Amitabh Bachchan’s disassociation from Pepsi brand in India
from the standpoint of Pepsi’s business prospects in India and his endorsement potential
• To debate on the moral (fiduciary) responsibility of a brand endorser towards the endorsed
brands
ABSTRACT
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1
Amy Kazmin, “Pepsi Encounters Makes Bollywood Veteran Sever Link”, Financial Times, February 4th
2014