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TABLE OF CONTENTS
1. Executive summary5
2. Introduction6
3. Objectives..8
4. Literature Review...9
5. FMCG
About FMCG Sector13

FMCG Introduction...14

Industry characteristics..17

Key Players18

Salient Features..19

SWOT Analysis.20

6. About Celebrity endorsements.21

Introduction to Celebrity endorsements.22

Why customers accept the celebrities25

Uses of celebrity endorsements.26

Reasons why celebrity endorsement may not work27

Benefits of celebrity advertisements..29

Theories of celebrity endorsement 30

7. Research methodology 32
8. The Survey...33
9. Findings...55
10. Recommendations57
11. Limitations ..58
12. Conclusions..59
13. Bibliography61
14. Annexure..62

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.

INTRODUCTION

We currently live in a society that can be called as over communicated. The explosion
of various forms of media had made life difficult for marketeers giving them more
opportunities to reach out to the target group. But the real question is How to break
the clutter. The nation currently has more than 400 television channels that broadcast
more than 300 million commercials every year. Catching the attention of the
consumer and then influencing the purchase decision is a huge challenge. This precise
problem has given rise to the Celebrity endorsement phenomena
Celebrities have been endorsing products since the evolution of media. In India they
are predominantly dominated by Bollywood and sports persona (Cricketers getting the
lions share).
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 cricket and bollywood.
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 celebrities are able to attract attention and retain attention by their mere
presence in the advertisements.
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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 FMCGs, 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.
How is FMCG different from other products / services from endorsement point of
view:
-

There is no POS presence of the celebrity advertisement always so the

recall becomes a very important factor to influence purchase

Most of the products are of low involvement and the customer does not
spend considerable amount of the time researching about the product.

The four primary endorsers 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 consumers 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 presence conveys the message Im rich, famous, talented,
beautiful, intelligent and you aspire to be like me. I actually think this product is great.
Why dont 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 companys 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 defense against the volume of todays 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 todays 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 audiences 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:
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.
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 customers
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 wouldnt
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.

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 celebritys 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:

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 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.

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 Confusion/ Skepticism
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 skepticism 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:

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.

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Theories of Celebrity Endorsement

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.

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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 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.

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OBJECTIVE

To find out the effectiveness of celebrity endorsement in building brands with special
reference to FMCG sector and also measure the recall of the endorsements (TV Ads)
in various categories of FMCG within the age group of 25-35 (young adults)
Note : This study primarily focuses on TV watching audience
Sub- Objectives:
To find if the buying behavior is influenced by the celebrity endorsement
Category wise analysis of the

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Literature Review:
The literature review focus on 3 aspects
o Under what circumstances does celebrity endorsement succeed?
o What are the dis advantages of celebrity endorsement
o Relationship between the celebritys personal traits and the purchasing
behavior of the customers

1) The vampire effect: When do celebrity endorsers harm brand

recall?
Authors: Carsten Erfgen a, Sebastian Zenker b, Henrik Sattler c
Summary: The author talks about the negative effects of celebrity endorsements
and suggests ways about choosing celebrities without affecting the brand image of the
product. Although many brand managers favor the use of celebrities in
advertisements, others worry that celebrities overshadow the brand and thus impair
brand recall. Practitioners refer to this overshadowing as the vampire effect, defined
as a decrease in brand recall for an advertising stimulus that features a celebrity
endorser versus the same stimulus with an unknown but equally attractive endorser.
Because there is no agreement about whether this overshadowing really exists, this
research analyzes the existence of the vampire effect and its moderators in a series of
experiments with a total of 4,970 respondents. The results provide important insights
into how to avoid the vampire effect by creating appropriate conditions, such as high
endorserbrand congruence or a strong cognitive link between the celebrity and the
brand. Surprisingly, brand familiarity does not significantly moderate the effect.
Methodology :
An exhaustive research has been conducted with 4970 respondents about the aspects
of the celebrity which may lead to positive or negative (denigrate) brand image using
the following parameters.

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2. Article: Breaking through the Clutter in Media Environment: How

Do Celebrities Help?
Author: Mazzini Muda, Rosidah Musa & Lennora Putit
Summary: The author primarily talks about the celebrity power leads to three
outcomes:
(1) attention :which breaks through the advertising clutters and makes the endorsed
brand more noticeable to target audience;
(2) credibility :which conveys a sense of trust for endorsed brands
(3) persuasion :which sends a persuasive message to target audience to adopt the
endorsed brand

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The paper talks about the Celebrity Product match up hypothesis which is the
congruence between the personality of the brand and the personality of the celebrity.
It talks about the correlation in the purchase behavior to the personality match of the
celebrity. He also talks about the brand managers psychology in selecting a brand
manager. This is because the first question that a brand manager must pose when
selecting an endorser is
Will the target market relate positively to this endorser?
Having a clear concept of what to communicate to target audience alone is not
sufficient to be successful in advertising. Advertisers must also do well in the next
step, which is to choose the right media and vehicle to place their ads so that the
message will be smoothly channeled and reached the intended audience. However,
this is easily said than done as nowadays the media environment is highly saturated
with many messages, commercial and non-commercial that want to grab a piece of
consumers attention pie.
3. Article: Effects of multiple endorsements and consumercelebrity

attachment on attitude and purchase intention

Author: Jasmina Ilicic , Cynthia M. Webster
Summary: This study examines consumercelebrity attachment within multiple
endorsement situations. A 2 x 2 factorial design manipulates attachment strength to
the celebrity and endorsement situation while controlling for celebrity attractiveness,
familiarity and match-up. Results show strong attachment to a celebrity encourages
positive attitude towards the advertisement and brand regardless of the number of
endorsements. A significant interaction effect is found for purchase intention,
suggesting that both attachment and the number of endorsements influence likelihood

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of purchase. When consumers are more attached to a celebrity and view that celebrity
endorsing multiple brands, this negatively impacts their purchase intention. Yet, when
consumers have a weak attachment, their purchase intention is increased with multiple
endorsements.
Methodology :

The researchers have created two new celebrities out of TV stars who have enough
popularity and visibility among the consumers to remove the biases that people have
towards regular celebrities who endorse multiple products.
Consumer attachment to a celebrity does impact consumer attitude towards the
ad, brand and purchase intentions. Attachment to a celebrity has a significant role in
explaining consumer attitude. Consumer attachment to a celebrity results in higher
attitude towards the ad and attitude towards the brand the celebrity endorses,
regardless of whether the celebrity is seen endorsing a single brand or multiple
brands.

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4. Article: Celebrity Advertisement on Select FMCG An Empirical

Study
Author: Dr. J. Sridevi A
Summary: The practice of celebrity endorsements has proliferated over time. In the
past decade celebrity advertisement has been the most prevalent and successful form
of advertising. Reason for this is that celebrities are considered to demonstrate a
number of dynamic personality. Now days it has become a pervasive element of
advertising industry especially in India. The present research begins with the review
of existing literature available on effectiveness of celebrity endorsements which
provides an insight into the research topic. The data is collected through a
questionnaire a quantitative method is used for this research to investigate the opinion
of the consumer towards celebrity advertisements on selected fast moving consumer
products. The data is collected through a questionnaire method with a sample size of
500 consumers and analyzed with statistical tools such as percentage analysis and
parametric T test. Finally, the results of the study prove that celebrity advertisements
have a positive effect on the consumers of FMCG. The aim throughout this study is to
present the relevant academic theory determining the effectiveness of celebrity
advertisement on selected FMCG.

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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.

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FAST MOVING CONSUMER GOODS SECTOR

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FMCG >> Introduction >>

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

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They are non-durable

They are sold in packaged form

They are branded

1999

2001

2006

Population (millions)

846

1,012

1,087

Population <25 yrs of age

480

546

565

Urbanization (%)
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India - a large consumer goods spender

28

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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.

Change in Indian consumer profile

Consumer profile
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;

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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.

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.

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

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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

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.

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FMCG >> Salient Features >>

The FMCG sector is a key component of Indias 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 sectors
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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Research Methodology
The primary objective of the

Research Design: Descriptive

Sampling Technique: Convenience Sampling
Sample Size: 100 (Only taking into account people who spend more than 2 hrs on
television every day)
Sample Units: Individuals within the age group of 25-35 who are residing in metros
Data Collection Methods:
Primary Data: Structured Non Disguised Questionnaire
Secondary Data: Newspapers, Magazines, Internet

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FINDINGS

Celebrity endorsements add to remembering the ads and have higher brand
recall or top of the mind recall.

Amongst FMCG advertisements featuring celebrities, Hindustan Lever's 'Lux'

soap tops the heap with the highest recall of 42% because 'Lux' soap in India
has been using popular film actresses to endorse the soap since its launch four
decades ago implying that they owe their stunning looks to the brand. This
consistent message hence reinforces the brand values and has been
successfully able to position the soap rightly as the 'beauty soap'9

Coke has really exploited the use of celebrities in their advertisements and has
worked as it has 32% recall rate.

The target audience age group of 25-35 like celebrity endorsed FMCG Ads
over other ads.

Bollywood still has the strongest presence in any list of celebrity

endorsements.

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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.

Consumers perceive that celebrities add value to the product but its not that
theyll buy a product just because they like an Ad.

Target audience perceive that celebrity advertisements carry some authenticity

and their purchase decision is influenced by them to a major extent.

The target audience age group of 25-35 gets influenced first by Bollywood
stars and then by kids in the ads of FMCG products

The qualities associated with the endorser are associated with the brand and
the brand therefore remains at the top of the consumer's mind.

Consumers find celebrities very appealing, very exciting,

somewhat

persuasive, neither informative nor un- informative and neither credible nor
non-credible in the ads of FMCG Product.

FMCG advertisements featuring celebrities had left an impact on 75% the

target group at some point of time because of attractiveness of the celebrities.

Consumers are more likely to purchase a celebrity endorsed product because

celebrities draw attention to the brand.

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RECOMMENDATIONS

Celebrities should be used for FMCGS 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.

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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.

LIMITATIONS

1. The responses of the respondents may be biased.

2. The sample size was small and may not represent the whole universe.
3. At time the questions had to explained to the respondents due to their
ignorance that could have influenced their views.

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CONCLUSION

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 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

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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 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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BIBLIOGRAPHY

38

ANNEXURE

Questionnaire on customer perception towards Celebrity

Endorsement
Personal profile
Name:
Gender:
Age:

1.Which advertisement in FMCG Sector can you recall?

2.What makes you remember the above-mentioned advertisement?

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a) Good Product
b) Famous celebrity
c) Information
d) Humor
e) Any Other (Please specify)
3. Which advertisements for FMCG products you like the most?
a) Celebrity endorsed ads
b) Common person endorsed ads
c) Kids Endorsed ads
d) Animated ads
f) Any Other (Please specify)
4. According to you, who makes best celebrity endorser for FMCG products?
a) Sports Person
b) Film star
c) Politicians
d) TV Stars
e) Kids
f) Animated stars
g) Any Other (Please specify)

5. Rate the following statements on the scale of 5 1 (in reference to FMCG

products)
5 Strongly Agree, 4 Agree, 3 Disagree, 2 Strongly Disagree, 1 - Dont Know
a) Celebrities add value to the product.
b) You are more likely to purchase a product if you like an ad.
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c) Products endorsed by celebrities carry some authenticity.

d) Purchase decision is influenced by celebrity endorsement.
e) Celebrity endorsements have higher brand recall.
f) Celebrities get people to make a better choice.
g) Celebrities get people to make a foolish choice.
h) Celebrities in advertisements add to remembering the ads.

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6. Rate the statement CELEBRITIES IN THE ADVERTISEMENTS OF FMCG

PRODUCTS
Very

Somewhat Neither

Somewhat Very

Informative
Appealing
Persuasive

Uninformative
Unappealing
Non-

Credible
Exciting

Persuasive
Non-Credible
Non-Exciting

7.(i) Did any FMCG advertisement by famous celebrity left an impact on you at any
point of time?
a) Yes

b) No

(ii) If yes, Please specify the reason.

a) Attractiveness of celebrity
b) Trustworthiness of celebrity
c) Expertise of celebrity
d) Any Other (Please specify)
8.(i) Would you like to purchase a FMCG product that is endorsed by a famous
celebrity?
a) Yes

b) No

(ii) If yes, what is the most likely reason from the following?

a) Celebrities spread awareness of the product

b) Celebrities draw attention to the brand
c) Celebrities gives the perception of quality products
d) Celebrities persuade the customers

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e) Celebrities have mass appeal

f) Any Other (Please specify)

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