PROJECT REPORT

ON
EFFECTIVENESS OF CELEBRITY
ENDORSEMENT IN BUILDING BRANDS WITH
SPECIAL REFERENCE TO FMCG SECTOR

BY
AKSHAY ARORA
IMBA

AMITY SCHOOL OF BUSINESS

Amity University, Uttar Pradesh

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 ACKNOWLEDGEMENT

I acknowledge my utmost gratitude to Ms.geetanjali gulati faculty guide, for her special
interest and generous guidance throughout the project work.
I am indebted to all my respondents who despite their limitations and pressure on time gave
me good response in filling up of questionnaire.
I am thankful to my friends, family members and relatives for providing the support that I
needed during my project.
I sincerely hope that the labor I have put in making this project will be appreciated.

AKSHAY ARORA

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 CONTENTS

Acknowledgement

S.No. Chapter Name

Executive Summary

1 Introduction

2 Literature Review

3 Objective of Study

4 Research Methodology

5 Suggestion & Conclusion

References

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 EXECUTIVE SUMMARY

The project talks about the effectiveness of celebrity endorsement in building brands with
special reference to FMCG sector.

The first few pages talk about the introduction and objectives of the study.

This is followed by details about FMCG Sector. This part consist of FMCG Introduction,
Industry characteristics, Key Players, Salient Features and SWOT Analysis of the FMCG
industry.

Next comes the detail about celebrity endorsements in FMCG sector. This part consists of
Introduction to Celebrity endorsements, why customers accept the celebrities, Uses of
celebrity endorsements, Reasons why celebrity endorsement may not work, Benefits of
celebrity advertisements and Theories of celebrity endorsement.

Next comes the survey, the purpose of which is to find out uses of celebrity endorsement
those translate into higher brand recall of FMCG Products and to understand the reason
behind the attitudes of consumer towards all those FMCG Products which are endorsed by
the celebrities.

The last part consists of findings, conclusion and bibliography. The questionnaire has been
annexed to the report.

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 CHAPTER 1

INTRODUCTION

The society that we live in can not only be called secular or democratic, it should be more
appropriately termed as over-communicated these days. There are around 130 television
channels in India broadcasting over 3 million television commercials each year in India.
The media-explosion can thus be easily demonstrated. Moreover, people forget 80% of the
information in just 24 hours! 'Celebrity Endorsement' for the brand is solution to it.

Celebrities are involved in endorsing activities since late nineteenth century. The advent of
celebrity endorsements in advertising in India began when Hindi film and TV stars as well
as sportspersons began encroaching on a territory that was, until then, the exclusive domain
of models.

Celebrity endorsement is an important tool which is able to influence Indian consumer

buying behavior. In India, celebrities are being increasingly used in marketing
communication by marketers to lend personality to their products. With the visual media
becoming more popular the use of celebrities in the TV media has increased. Celebrities
create headlines. Their activities and movements are being closely watched and imitated.
What they endorse sell like hot cakes. It is not surprising therefore that using celebrities in
advertisements has become common practice.

In India especially, it is not difficult to look for the reasons as to why companies are
increasingly using celebrities. Indians always love their heroes and heroines.

Consumers like advertisements more if they are admirers of the celebrities in the
advertisements. When a consumer likes the celebrity in the advertisement, he or she is more
likely to accept what the celebrity says about the advertised product and therefore will
develop more positive feelings toward the advertisement and the brand itself. Famous

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celebrities are able to attract attention and retain attention by their mere presence in the
advertisements.

In the midst of the advertisement clutter, the advertisements that celebrities endorse also
achieve high recall rates. When people see their favored reference group members or
celebrities in the advertisements, they pay more attention to them.

Celebrities may also help reposition products. Products with sagging sales needs some
boosting and in this, Indian celebrities can help by way of they endorsing the product
concerned.

Celebrity endorsements give a brand a touch of glamour and the hope that a famous face
will provide added appeal and name recognition in a crowded market. In the battle for the
mind, you get the customer excited by showing him a known face, and an effective demand
is created. In short it helps increase the recall value of the brand.
Celebrity endorsements are today seen as a powerful mechanism for brand awareness and
sales. A host of celebrities including film stars, cricket and lately tennis icons have been
endorsing a range of products from FMCG’s, automobiles to jewellery to apparel and
watches. Several brands have also appointed celebrities as their brand ambassadors to
continuously promote their brands and associate the brands with the excellence and
attributes that the celebrities are associated with.

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 INTRODUCTION TO FMCG INDUSTRY

India is one of the largest emerging markets, with a population of over one billion. India is
one of the largest economies in the world in terms of purchasing power and has a strong
middle class base of 300 million.

The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the
economy with a total market size in excess of Rs 60,000 crore. This industry essentially
comprises Consumer Non Durable (CND) products and caters to the everyday need of the
population.

Product Characteristics

Products belonging to the FMCG segment generally have the following characteristics:

• They are used at least once a month

• They are used directly by the end-consumer
• They are non-durable
• They are sold in packaged form
• They are branded

India - a large consumer goods spender

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on
personal care products. The large share of fast moving consumer goods (FMCG) in total
individual spending along with the large population base is another factor that makes
India one of the largest FMCG markets.

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Change in Indian consumer profile

Consumer profile

1999 2001 2006

Population (millions) 846 1,012 1,087

Population <25 yrs of age 480 546 565

Urbanization (%) 26 28 31

Source: Statistical outline of India

Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid
growth and change in demand patterns, leading to an explosion of new opportunities.
Around 45 percent of the population in India is below 20 years of age and the young
population is set to rise further. Aspiration levels in this age group have been fuelled by
greater media exposure, unleashing a latent demand with more money and a new mindset.

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Industry Segments

The main segments of the FMCG sector are:

• Personal Care: oral care; hair care; skin care; personal wash (soaps); cosmetics and
toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe
care.

Major companies active in this segment include Hindustan Lever; Godrej Soaps,
Colgate-Palmolive, Marico, Dabur and Procter & Gamble.

• Household Care: fabric wash (laundry soaps and synthetic detergents); household
cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners,
insecticides and mosquito repellants, metal polish and furniture polish).

Major companies active in this segment include Hindustan Lever, Nirma and
Reckitt & Colman.

• Branded and Packaged Food and Beverages: health beverages; soft drinks;
staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice
cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled
water; branded flour; branded rice; branded sugar; juices etc.

Major companies active in this segment include Hindustan Lever, Nestle, Cadbury
and Dabur.

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 • Spirits and Tobacco: Major companies active in this segment include ITC,
Godfrey Philips, UB and Shaw Wallace

FMCG Industry Characteristics

Branding: Creating strong brands is important for FMCG companies and they devote
considerable money and effort in developing bands. With differentiation on functional
attributes being difficult to achieve in this competitive market, branding results in consumer
loyalty and sales growth.

Distribution Network: Given the fragmented nature of the Indian retailing industry and
the problems of infrastructure, FMCG companies need to develop extensive distribution
networks to achieve a high level of penetration in both the urban and rural markets. Once
they are able to create a strong distribution network, it gives them significant advantages
over their competitors.

Contract manufacturing: As FMCG companies concentrate on brand building, product

development and creating distribution networks, they are at the same time outsourcing their
production requirements to third party manufacturers. Moreover, with several items
reserved for the small-scale industry and with these SSI units enjoying tax incentives, the
contract-manufacturing route has grown in importance and popularity.

Large unorganized sector : The unorganised sector has a presence in most product
categories of the FMCG sector. Small companies from this sector have used their locational
advantages and regional presence to reach out to remote areas where large consumer

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products have only limited presence. Their low cost structure also gives them an
advantage.

FMCG Key Players

There is a strong MNC presence in the Indian FMCG market and out of the top 10 FMCG
companies; four are multinationals while two others have significant MNC shareholdings.

MAJOR PLAYERS

• Hindustan Lever Ltd.

• I T C Ltd.
• Nirma Ltd.
• Nestle India Ltd.
• Britannia Industries Ltd.
• Colgate-Palmolive (India) Ltd
• Godfrey Phillips India Ltd.
• Dabur India Ltd.
• Smithkline Beecham Consumer Healthcare Ltd
• Godrej Soaps Ltd.
• Marico Industries Ltd
• Cadbury India Ltd
• Procter & Gamble Hygiene & Health Care Ltd.
• Reckitt & Colman Of India Ltd

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 • I S P L Industries Ltd.

Among the major companies, Hindustan Lever has a strong presence in the food, personal
care and household care (detergents) sectors; ITC is the market leader in cigarettes; Nirma
has a strong presence in the detergent market; Nestle and Britannia are active in the food
sector and Colgate has a strong presence in the oral care segment.

FMCG Salient Features

The FMCG sector is a key component of India’s GDP and is a significant direct and
indirect employer. It is the fourth largest sector in the economy and is responsible for five
per cent of total factory employment in the country. The sector also creates employment for
three million people in downstream activities, much of which is disbursed in small towns
and rural India.

Unlike the perception that the FMCG sector is a producer of luxury items targeted at the
elite, in reality the sector meets the every day needs of the masses, across the country. Low-
priced products contribute the majority of the sales volume and lower income and lower
middle-income groups account for over 60 per cent of the sector’s sales. Moreover, rural
markets account for 56 per cent of total domestic FMCG demand and FMCG outlets reach
more villages than any other basic facility such as primary schools or bus facilities.

The FMCG sector has several other salient features. It has strong links with agriculture and
71 per cent of sales come from agro-based products; it is a significant value creator with a
market capitalisation second only to the IT sector and it is a key contributor to the
exchequer.

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CELEBRITY ENDORSEMENTS IN FMCG SECTOR

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 Celebrity Endorsement: Introduction

In the world of advertising and marketing communication, celebrity endorsement has

grown in gigantic leaps to reach a level where it has spawned a separate industry in itself.

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Celebrity Endorsement is a rapidly growing industry that is, by conservative estimates,
worth more than Rs. 150 Crore today.

Today, there is a regrettable shift in the emphasis of the advertisement moving from
highlighting the core promise of the brand to exhibiting the charisma of the brand
ambassador. Celebrity endorsement gives a brand an instant value and personality package
which otherwise would have taken years and millions of dollars - to establish, with far less
guarantee of results. A celebrity does help in increasing brand sales, but only if he/she is
selected carefully and used effectively to add value to a brand. There must be a relevant and
recognizable match of values of the celebrity and the brand as perceived by consumers.

The four primary endorser’s types are:

• Celebrities
• Experts
• Typical satisfied customers
• Announcers.

Celebrity endorsements of brands

Brand- a brand is a name, a sign, or a symbol such as a trademark or logo that identifies a
product or service and differentiate it from similar products or services. It is different from
a product, in that the product performs a task for the user while the brand adds value and
covers the source of the product protecting the customer, producer from competitors who
would attempt to provide products that seem to be identical.
Marketers use a whole lot of tactics to draw the consumer’s attention to their brand - one of
these is getting celebrities to endorse the products.

Who are celebrities?

Popular personalities who enjoy public recognition amongst a huge slice of a particular
segment of the population or the entire population are celebrities. Invariably, their very

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presence conveys the message “I’m rich, famous, talented, beautiful, intelligent and you
aspire to be like me. I actually think this product is great. Why don’t you buy it and become
like me?” The product is made attractive by the association with the person whom
customers want to be like and admire and it is this association that caused the compulsive
desire to purchase and use it.

A celebrity may be the embodiment of the company’s image. When celebrities endorse a
brand, customers become aware of the product/service such that they totally believe and
trust that the purchases will meet their requirements and expectations but all this provided
there is a proper fit between the chosen celebrity and the brand.

Celebrities give the perception of quality products and services. Once quality branding is in
place, brand extensions are possible i.e. customers might easily be persuaded to try their
other products and services. Another factor that requires a thought is the media to be used
to advertise the product/service.

Celebrities have the advantage of publicity and the attention getting power required for any
successful advertising campaign. Most celebrities also enjoy enormous goodwill. The
associations made with them also help the product they are endorsing. The mind as a
defence against the volume of today’s communications screens and rejects much of the
information offered to it. In general the mind accepts only that which matches prior
knowledge or experience.
In the midst of today’s cluttering, it becomes all the more important for the advertiser to
capture the attention of the consumer. Instinctive changing of channels is prevented if the
first few seconds of the advertisement manage to grip the audience’s attention.

Celebrity endorsers is that s/he can provide testimony for a product or service, particularly
when the product has contributed to their celebrity. The relationship can increase a
consumer's belief and trust in the product and its benefits. The more familiar an endorser,
the more likely consumers are to buy the endorsed product.

Forms of celebrity endorsement:

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A celebrity can endorse brands in different ways based on the purpose, the advertisement
media and the appeal to be generated. The product could be commercial ones or non-
commercial ones (social advertising). Following types of endorsement forms have been
identified to be heavily in use at present:

• As spokespersons, e.g., Amitabh Bachchan in KBC.

• In print and electronic advertisements, e.g., Shah Rukh Khan in Omega and
Pepsi.
• In outdoor media like hoardings, e.g., Aishwarya Rai in Lux in some parts of
North India.
• As brand ambassadors, e.g., Fardeen Khan in Provogue, and finally
• The use of brands by celebrities in movies, e.g., Hero Cycles, Paas Paas and
Coke in Yaadein.

Why customers accept the celebrities…

Messages delivered by well-known celebrities achieve a high degree of attention and

recall for consumers.

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 Celebrity Expertise perceived relevant – Expertise is the knowledge that the
communicator seems to possess to support the claims made in the advertisements. A well-
known face would obviously speak for more expertise than an ordinary one.

Celebrities are perceived Trustworthy – Trustworthiness refers to the customer’s

confidence in the source for providing information in an objective and honest manner.
People are more likely to trust the quality of a trustworthy celeb endorsed brand over a
non-endorsed one.

Ambitious psyche: People ape the celebrities in their day-to-day activities and many
even dream to become like a celebrity some day. Some know they wouldn’t become as
good as the celebrities but sharing common belongings makes them feel better.

Physical Attraction: Consumers tend to perform positive stereotypes about such people.
Physically attractive people are more successful in changing beliefs than non-attractive
people.

Uses of Celebrity Endorsements

• Establishes Credibility: Approval of a brand by a star fosters a sense of trust for

that brand among the target audience- this is especially true in case of new products.

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 • Attracts Attention: Celebrities ensure attention of the target group by breaking the
clutter of advertisements and making the ad and the brand more noticeable.

• Associative Benefit: A celebrity’s preference for a brand gives out a persuasive

message - because the celebrity is benefiting from the brand, the consumer will also
benefit.

• Psychographics Connect: Stars are loved and adored by their fans and advertisers
use stars to capitalise on these feelings to sway the fans towards their brand.

• Demographic Connect: Different stars appeal differently to various demographic

segments (age, gender, class, geography etc.).

• Mass Appeal: Some stars have a universal appeal and therefore prove to be a good
bet to generate interest among the masses.

Reasons why celebrity endorsements may not work

• Improper positioning:

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Associating with a star, however big he or she may be, in itself does not guarantee sales.
The most it can do is generate interest in the product or create a buzz around it.

Brand-celebrity disconnect:
If the celebrity used represents values that conflict with the brand values and positioning,
the advertising will create a conflict in the minds of the target audience who may reject the
proposition.

• Clutter Flutter:
In recent times, there has been such a deluge of celebrity endorsements that it has led to the
very clutter that it aimed to break. This over-exposure can be bad for the brand. “We seem
to have just 2 ½ celebrities in a country of 1 billion people which is a terrible tragedy.
Consequently, each celebrity is called upon to push maybe a dozen brands or so. Which is
great for the celebrity but I think it is pretty daft for the brand because the impact of the
celebrity reduces as the number of brands he endorses increases.” Unfortunately in India,
we have too many brands chasing too few celebrities.

Dissatisfaction with product quality/performance

You cannot sell an ordinary product just by making a celebrity endorse it. In fact, if
anything, the product will fail faster because the presence of the celebrity will create a buzz
and more people will know about the “ordinariness” of the product.
Unfortunately using a celebrity seems to be the easy way out of a parity product situation.

Confusion/ Scepticism
The use of celebrities can be confusing. Some viewers forget brand that a celebrity is
approving. Others are so spellbound by the personality of the celebrity that they completely
fail to notice the product/brand being advertised. The brand is overshadowed in the
overwhelming presence of the star. In some cases, a celebrity can give rise to scepticism
because it might be a bit too much for the masses to believe that the celebrities who are rich
and can afford the best in the world are actually using a mass product being advertised on
television

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Benefits of celebrity advertising -- the four Qs:

• Quick saliency:

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It gets cut through because of the star and his attention getting value. Dabur has ensured
high saliency for its brand with the inclusion of Amitabh Bachchan in its advertising.

• Quick connect:

There needs to be no insight but the communication connects because the star connects.
Sachin, Shah Rukh and their ilk's ensure an easy connect for Pepsi with the youth.

• Quick shorthand for brand values:

The right star can actually telegraph a brand message fast without elaborate story
telling. Kapil Dev and Sachin Tendulkar seem to have done that successfully for Boost
in the early '90s. And helped to differentiate it in the malted beverages market.

• Quick means of brand differentiation:

In a category where no brand is using a celebrity, the first that picks one up could use it
to differentiate itself in the market. Boost did it in the malted beverage category.

Theories of Celebrity Endorsement

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Celebrity endorsements give a brand a touch of glamour and the hope that a famous face
will provide added appeal and name recognition in a crowded market. In the battle for the
mind, you get the customer excited by showing him a known face, and an effective demand
is created. In short it helps increase the recall value of the brand..

Source Credibility Theory:

According to this theory acceptance of the message depends on 'Expertness' and

Trustworthiness' of the source. Expertness is defined as the perceived ability of the source
to make valid assertions. Trustworthiness is defined as the perceived willingness of the
source to make valid assertions. Audience acceptance increases with the expertness of the
source and the ability of the audience to evaluate the product.

Source Attractiveness Theory:

According to this theory which is based on social psychological research, the acceptance of
the message depends on familiarity, likeability and similarity. Familiarity is the audience's
knowledge of the source through exposure; likeability is the affection for the source's
physical appearance and behavior while similarity is the resemblance between source and
receiver. This theory explains the message acceptance in two ways: Identification and
Conditioning. Identification is when the receiver or the target audience of the
communication begins to identify with the source's attractiveness, and hence tends to accept
his opinions, beliefs, habits, attitudes etc.

Meaning Transfer Theory:

The theory explains that a celebrity encodes a unique set of meanings which if well used
can be transferred to the endorsed product. Such a transfer takes place in three stages –
encoding meanings, meaning transfer, meaning capture.

I. Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed by
age, gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a set of

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meanings in their image. For example Preity Zinta can be seen as a lively, charming,
bubbly, witty and enthusiastic.

II. Meaning Transfer: This stage transfers those meanings to the product. When skillfully
portrayed, celebrities can communicate this image more powerfully than lay endorsers.

III. Meaning Capture: This assumes that consumers purchase products not merely for their
functional value but also for their cultural and symbolic value. The theory says that
consumers buy the endorsed product with the intention of capturing some of the desirable
meanings with which celebrities have passed on to the product. This is more eminent in
lifestyle products like clothes, perfumes, cell phones etc.

CHAPTER 2

Literature Review:

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1. Article: “Selecting Celebrity Endorsers: The Practitioner's Perspective”

Author: B. Zafer Erdogan, Michael J. Baker, Stephen Tagg

Summary: There are several reasons for such extensive use of celebrities. Because of their
high profile, celebrities may help advertisements stand out from surrounding clutter, thus
improving their communicative ability (Atkin and Block, 1983; Sherman, 1985).
Celebrities may also generate extensive PR leverage for brands. For example, when Revlon
launched the "Won't kiss off test" for its Colorstay lipsticks in 1994 with Cindy Crawford
kissing reporters, the campaign featured on almost every major news channel 1. Article:
“Selecting Celebrity Endorsers: The Practitioner's Perspective.”
and equally widely in the press.
Although research findings are equivocal about the ability of celebrities to generate actual
purchase behavior, positive impact on economic returns of sponsoring companies.

2. Article: “Celebrities Impact on Branding”

Author: Centre on Global Brand Leadership Columbia Business School
(Christina Schlecht)
Summary: Article addresses a popular method of marketing communication, the use of
celebrity spokesperson in advertising to endorse brand a brief assessment of the current
market situation indicates, the celebrity endorsement advertising strategies can under the
right circumstances indeed justify the high cost associated with this form of advertising.
However as several failure show, it is essential for the advertiser to be aware of the
complex process underlying celebrity endorsement by gaining an understanding of the
described concept of source credibility & attractiveness, match up hypothesis, meaning
transfer model, multiple products & celebrity endorsement while these concepts can help to
answer the questions if & when celebrity advertisement investment pay-off, it has to be
global of further research efforts to develop an extensive, consistent & user friendly tool to
avoid arbitrary decision & enhance the strategic character of celebrity sponsorship decision

3. Article: “Celebrity Branding: not as glamorous as it looks”

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Author: Chris Grannell and Ruwan Jayawardena.
Summary: Celebrities are brands. They are defined by what people think about them, they
have a competitive positioning relative to other celebrities. Unlike the people behind them,
celebrities exist in the minds of their audience in precisely the same way that corporate or
FMCG brands do. Fans of celebrities get excited when they see them; they want their
endorsement; they often feel some kind of affinity to what a particular celebrity “stands
for.” When a celebrity becomes the face of a charity, or lends his name to another product
or service, customers of that celebrity show rising levels of interest in the associated
organization, product or offer. Some of the image of the celebrity is “transferred” to the
third party. Conversely, a rising celebrity can align himself with other celebrities by use of
PR, association or photographic imagery; and of course he can directly communicate values
through use of language or behavior. We know that – just like corporate brand-owners,
celebrity brand-owners employ image consultants and PR agencies. Sometimes they
indulge in brand extension and they can even have brand architectures. In almost all
respects, celebrities function just like the brands of businesses and products that usually
grace the pages of this website.

4. Article: “The naked truth of celebrity endorsement”

Author: Angela Byrne, Maureen Whitehead, Steven Breen.

Summary: This case study examines the use of celebrity endorsement in the formation of
the retail image of leading European grocery distribution group J. Sainsbury, in particular,
the process of transference of celebrity images to the product’s image. The incorporation of
Jamie Oliver (well known as television celebrity The Naked Chef) into the promotions of
one of Britain’s leading grocery chains involves a high profile campaign that has been
adopted in order to imbue the company’s products with an image of quality. The success of
the campaign has been replicated in New Zealand by another grocery retail “giant”,
Foodstuffs, who have also adopted The Naked Chef to endorse their products. The case
draws on field research with consumers and key informant interviews with advertising
agency personnel who identified the criterion for the choice of Jamie Oliver. The extent to

26
which the market place recognises and consumers associate themselves with the image
Jamie projects as a celebrity endorser for J. Sainsbury is explored

5. Article: “The wealth effects associated with a celebrity endorser: The Michael
Jordan phenomenon”

Author: Lynette Knowles Mathur, Ike Mathur, Nanda Rangan.

Summary: On March 9, 1995, rumors began to circulate on Wall Street that a minor
league baseball player was going to try his luck at shooting hoops for the
Chicago Bulls of the National Basketball Association (NBA). Normally,
rumors of this nature are of dubious significance for the sports teams
involved. They are even of less significance for firms that seek to establish
and maintain their presence in the marketplace through the use of celebrity
endorsements for their products. In this particular instance, however, the
enthusiasm expressed by the Bulls' players at the prospects of having this
minor league baseball player on the court with them was outdone by the
investors in a select group of firms. This minor league baseball player was
none other than Michael Jordan, whom many would consider to be among the
most talented basketball players of all time.

FAST MOVING CONSUMER GOODS SECTOR

27
CHAPTER 3

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 OBJECTIVE OF STUDY

To find out the effectiveness of celebrity endorsement in building brands with special
reference to FMCG sector in the South/west Delhi within the age group of 25-35 (young
adults)

Sub- Objectives:

 To find out uses of celebrity endorsement those translate into higher brand recall of
FMCG Products.
 To understand the reason behind the attitudes of consumer towards all those FMCG
Products which are endorsed by the celebrities

CHAPTER 4

SUGGESTION & CONCLUSION

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 • Celebrities should be used for FMCG’S because they ensure attention of the target
group by breaking the clutter of advertisements and making the advertisement and
the brand more noticeable.
• Celebrity endorsement will be more effective when used consistently over time to
increase the strength of the link between the celebrity and endorsed brand.
• When selecting a celebrity endorser for FMCG, choose a celebrity who is not
already strongly associated with another product.
• Celebrity endorser can be used to effectively reinforce and/or create an image for a
FMCG product.
• Celebrity endorsement can be more effective for less familiar brands and when
consumers have limited knowledge about the product.
• The issue of matching the values of the celebrity with the brand values is also very
important, i.e. getting the right celebrity to endorse the right brand. Consumers
perceive the brand as having superior quality because it has been endorsed by a
credible source. This makes endorsement as one of the indictors of quality for any
brand
• The over popularity of the celebrity sometimes overshadows the brand. If the
celebrity is involved in multiple endorsements, it tends to create confusion among
consumers and hence negatively affects the perception of the advertisement and the
brand so this should be avoided.

Celebrity endorsement really work because the qualities associated with the endorser are

associated with the brand and the brand therefore remains at the top of the consumer's

mind. However one needs to realize that the impact of an endorser cannot be sustainable in

all product categories and in all the stages of brand life cycles. It really depends upon the

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type of product. If it is a 'functional brand', then the product itself is the hero. Here any

celebrity association with the brand without corresponding performance of the product will

not be sustainable. While incase of 'image brands', like the categories of soaps, soft drinks,

cigarettes etc., where it is difficult to distinguish between the products, celebrity

endorsements help to distinguish between the brands at an emotional level.

People would be more likely to buy a brand that was endorsed by their favorite celebrity.

Celebrities ensure attention of the target group by breaking the clutter of advertisements

and making the advertisement and the brand more noticeable. A celebrity's preference for a

brand gives out a persuasive message and hence, because the celebrity is benefiting from

the brand, the consumer will also benefit. There is a demographic and psychographic

connection between the stars and their fans. Demographic connection establishes that

different stars appeal differently to various demographic segments i.e. age, gender, class,

geography etc., while psychographic connection establishes that stars are loved and adored

by their fans.

Some stars have a universal appeal and therefore prove to be a good bet to generate interest

among the masses. Another invaluable benefit from celebrity endorsements is the public

relation opportunities.

Whether Celebrity endorsement has a positive or a negative impact on the brand is a debate

that is open to interpretation. But till the time the corporate world continues to foot fancy

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bills of celebrity endorsers and till consumers continue to be in awe of the stars, the party is

not likely to break up.

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 REFERENCES

Books:

• Beri G.C: “Marketing Research” Tata Mc Graw-Hill Publishing company Ltd.

Third Edition, 2003.

• Schiffman & Kanuk (1997) “Consumer Behaviour”, 6th Eddition, PHI, pp.215-223.

• Marketing Management Philip Kotler 12e

Web Sites:

• www.thedayaftertomorrow.com

• www.synovate.com

• www.magindia.com

• www.blonnet.com

• www.rediff.com – article by Country head, O&M India

• indiainfoline.com – article 'Celebrity Endorsements in brands

• Consumers' Attitude and Intentions", Journal of Advertisement Research, Vol 20,

535-547

• Article: “The naked truth of celebrity endorsement”

Author: Angela Byrne, Maureen Whitehead, Steven Breen.

• Article: “Celebrity Branding: not as glamorous as it looks”

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 Author: Chris Grannell and Ruwan Jayawardena.

• Article: “Celebrities Impact on Branding”

Author: Centre on Global Brand Leadership Columbia Business School

(Christina Schlecht)

• Article: “Selecting Celebrity Endorsers: The Practitioner's Perspective”

Author: B. Zafer Erdogan, Michael J. Baker, Stephen Tagg

34