celebrity endorsement
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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), are the 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 and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and 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 Fast Moving Consumer Goods companies include Procter & Gamble, HERO Group, Colgate-Palmolive, H. J. Heinz, Cadbury's, Reckitt Benckiser, Sara Lee, Nestlé, Unilever, Coca-Cola, Pepsi, Wilkinson.
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Introduction to FMCG sector
• It was found out that ‘food and beverages’ contributed about 36%, which was the maximum in overall TV ad pie of FMCG sector, followed by 26% of personal care products and 13% by hair care.
• Top advertisers in Indian market are HUL (Hindustan Unilever), Procter-Gamble.
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Objectives
• To know the impact of celebrity endorsements on brands w.r.t. FMCG sector
• To know whether celebrity endorsements increase 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 a positive effect on the brand
• It do has an effect on the sales of the company
• Celebrity endorsements attracts the customer towards the brand.
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Credibility
• It is the ability to inspire belief or trust.
• Thus the consumers accept something as true, if their favorite celebrity endorses any product.
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Ensured Attention
• The celebrity might bring a polite, considerate or affectionate act.
• Hence the interest of general consumers increases in a particular product if a celebrity endorses it.
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Higher Degree of Recall
• Celebrity endorsement forces the buyers to remember something or bring something back to mind.
• Eg. When you go for buying kurkure, you recall juhi chawla, may it be Balaji chataka pataka or original kurkure.
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Mitigating a tarnished Image
• A celebrity may help in rebuilding the image of a brand.
• Eg. When coca-cola was image was tarnished by calling it the cold-drink containing pesticides, Aamir Khan helped it to reshape it.
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Psychographic Connect
• A celebrity may also help a product in affecting the psychological profiles of potential buyers.
• Hence it directly affects the marketing strategy.
• Eg. LUX as a beauty soap.
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Associative Benefit
• Just by getting associated to a product, a celebrity may push the sales of any product.
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Rejuvenating a stagnant brand
• A stagnant brand can also be extra promoted with the help of celebrities who are popular.
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Disadvantages
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The reputation of the celebrity may derogate
after he/she has endorsed the product
• A celebrity’s image may also get tarnished after he/she endorses any product.
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Celebrity becomes bigger than the
brand
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Inconsistency in the professional
popularity of the celebrity
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Multi brand endorsements by the same
celebrity would lead to confusion
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Mismatch between the celebrity and
the 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 of a 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 a positive effect on the brand
• Multi endorsements do clutter in the minds of consumer
• Celebrity endorsements if used effectively facilitates instant recall
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