Branding and Celebrity Endorsements.docx111

7/29/2019 Branding and Celebrity Endorsements.docx111

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Effectiveness of Celebrity

Endorsements in context to FMCG

sector

Prepared by-Aakash Goswami

Pratik Negi

Palak Sheth

Rinku gurecha

Alpesh Borisa

Chetan Rawal

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What is FMCG?

Fast Moving Consumer Goods (FMCG), arethe products that are sold quickly at relatively

low cost. They generally sell in large quantities, so the

cumulative profit on such products can be large. Examples: toiletries, soap, cosmetics, teeth

cleaning products, shaving products anddetergents, as well as other non-durables such asglassware, light bulbs, batteries, paper productsand plastic goods.

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Introduction to FMCG sector

4th largest sector in the economy

A total market size in excess of US $13.1 billion

Some of the best known examples of FastMoving Consumer Goods companies includeProcter & Gamble, HERO Group, Colgate-

Palmolive, H. J. Heinz, Cadbury's, ReckittBenckiser, Sara Lee, Nestl, Unilever, Coca-Cola,Pepsi,Wilkinson.

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http://en.wikipedia.org/wiki/Procter_&_Gamblehttp://en.wikipedia.org/wiki/HERO_Grouphttp://en.wikipedia.org/wiki/Colgate-Palmolivehttp://en.wikipedia.org/wiki/Colgate-Palmolivehttp://en.wikipedia.org/wiki/H._J._Heinzhttp://en.wikipedia.org/wiki/Cadbury'shttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Sara_Lee_(corporation)http://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Wilkinsonhttp://en.wikipedia.org/wiki/Wilkinsonhttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Sara_Lee_(corporation)http://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Reckitt_Benckiserhttp://en.wikipedia.org/wiki/Cadbury'shttp://en.wikipedia.org/wiki/H._J._Heinzhttp://en.wikipedia.org/wiki/Colgate-Palmolivehttp://en.wikipedia.org/wiki/Colgate-Palmolivehttp://en.wikipedia.org/wiki/Colgate-Palmolivehttp://en.wikipedia.org/wiki/HERO_Grouphttp://en.wikipedia.org/wiki/Procter_&_Gamble


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Introduction to FMCG sector

It was found out that food and beveragescontributed about 36%, which was the maximumin overall TV ad pie of FMCG sector, followed by26% of personal care products and 13% by haircare.

Top advertisers in Indian market are HUL(Hindustan Unilever), Procter-Gamble.

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Objectives

To know the impact of celebrity endorsementson brands w.r.t. FMCG sector

To know whether celebrity endorsementsincrease the sales of the company

To know and understand whether celebrity

endorsements work in India

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Hypothesis

Celebrity endorsements does not always have apositive effect on the brand

It do has an effect on the sales of the company

Celebrity endorsements attracts the customertowards the brand.

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Credibility It is the ability to inspire belief

or trust.

Thus the consumers acceptsomething as true, if theirfavorite celebrity endorses anyproduct.

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Ensured Attention The celebrity might bring a

polite, considerate oraffectionate act.

Hence the interest of generalconsumers increases in aparticular product if acelebrity endorses it.

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Higher Degree of Recall Celebrity endorsement forces

the buyers to remembersomething or bring somethingback to mind.

Eg. When you go for buyingkurkure, you recall juhichawla, may it beBalajichataka pataka or original

kurkure.

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Mitigating a tarnished Image A celebrity may help in

rebuilding the image of abrand.

Eg. When coca-colawasimage was tarnished by callingit the cold-drink containingpesticides, Aamir Khan helpedit to reshape it.

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Psychographic Connect A celebrity may also help a

product in affecting thepsychological profiles ofpotential buyers.

Hence it directly affects themarketing strategy.

Eg.LUXas a beauty soap.

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Associative Benefit Just by getting associated to a

product, a celebrity may pushthe sales of any product.

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Rejuvenating a stagnant brand A stagnant brand can also be

extra promoted with the helpof celebrities who are popular.

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Disadvantages

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The reputation of the celebrity may derogateafter he/she has endorsed the product

A celebritys image mayalso get tarnished after

he/she endorses anyproduct.

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Celebrity becomes bigger than thebrand

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Inconsistency in the professionalpopularity of the celebrity

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Multi brand endorsements by the samecelebrity would lead to confusion

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Mismatch between the celebrity andthe image of the brand

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When should the celebrities be used?

1. Instant brand awareness and recall

2. Celebrity values define and refresh the image ofa brand

3. Lack of ideas to promote a brand

4. Convincing powers of celebrities help a lot

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Conclusion

Celebrity endorsements does not always have apositive effect on the brand

Multi endorsements do clutter in the minds ofconsumer

Celebrity endorsements if used effectively

facilitates instant recall

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Documents

Branding and Celebrity Endorsements.docx111