1

Effectiveness of Celebrity
Endorsements in context to FMCG
sector

Prepared by-
Aakash Goswami
 2

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.
 3

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.
 4

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.
 5

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
 6

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.
7
 8

Credibility
• It is the ability to inspire belief
or trust.
• Thus the consumers accept
something as true, if their
favorite celebrity endorses any
product.
 9

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.
 10

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.
 11

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.
 12

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.
 13

Associative Benefit
• Just by getting associated to a
product, a celebrity may push
the sales of any product.
 14

Rejuvenating a stagnant brand

• A stagnant brand can also be
extra promoted with the help
of celebrities who are popular.
 15

Disadvantages
 16

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.
 17

Celebrity becomes bigger than the

brand
 18

Inconsistency in the professional

popularity of the celebrity
 19

Multi brand endorsements by the same

celebrity would lead to confusion
 20

Mismatch between the celebrity and

the image of the brand
 21

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
 22

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
23