INDEX

TABLE OF CONTENTS:

SR NO TOPIC PAGE NO
01. EXECUTIVE SUMMARY 02-03
02 CHAPTER 1: INTRODUCTION 04-29
04-15
1.1 Research Background
16-25
1.2 About the industry 26
26
1.3 Problem Statement
26-27
1.4 Need for the study 29
1.5 Objectives of the study
1.6 Scope of the study

03 CHAPTER 2: LITERATURE REVIEW 30-33

04 CHAPTER 3: RESEARCH METHODOLOGY 34-35

34
3.1 Type of Research Design
34
3.2 Sources of Data

05 CHAPTER 4: ANALYSIS AND INTERPRETATION OF THE 35-67

DATA COLLECTED WITH RELEVANT GRAPHS
06 CHAPTER 5: SUMMARY OF FINDINGS 68

07 CHAPTER6: CONCLUSION, LIMITATIONS 68-71

72
 BIBLIOGRAPGHY 73
 PLAGIARISM REPORT

EXECUTIVE SUMMARY

India is a country where people love to live in dreams. They worship celebrities which might
be cricket stars like Sachin Tendulkar, Mahinder Singh Dhoni or Film Stars like Shah Rukh
Khan or John Ebrahim. They treat them as God. Marketers use this very preposition so as to
influence their target customers may be existing or potential ones. For this Brands rope in
Challenges experienced by organization while matching celebrity personality with brand personality for FMCG companies

these celebrities and give them whopping amount of money. They believe that by doing this
they can associate their products with their target customers. This is called celebrity
endorsement.

Aristotle said, “Beauty is a greater recommendation than any letter of introduction.” This
could aptly summarize why innumerable products are endorsed by celebrities, with or
without a significant need or benefit from the same.

Similarly every product has an image. The consumer tries to consume a brand which has the
maximum fit with his/her own personality/image. The celebrity endorser fits in between these
two interactions, where he tries to bring the image of the product closer to the expectation of
the consumer, by transferring some of the cultural meanings residing in his image to the
product.

Now, despite the potential benefits derived from celebrity endorsements, they increase a
marketer’s risk manifolds and should be treated with full attention and aptitude. A brand
should be cautious when employing celebrities to ensure promise believability and delivery
of the intended effect. The growing importance of mythical characters as celebrities and their
sway over the target segments are ample proof of public demand for icons to look up to. As
the celebrities traverse from a mere commercial presence to public welfare message
endorsements, a whole new dimension is added to this process and helps us in achieving a
holistic view of the impact which celebrities generate in every sphere and segment through
their well-versed endorsements.

The Indian market has undergone significant changes in the recent past. Consumers have
come into contact with new sales promotion and advertising practices. To attract consumer
attention, sellers are increasingly using celebrity testimonials. The approval of celebrities is a
way to bring out the brand in the midst of the chaos that exists on the market. The objective
of this study is the challenges experienced by organisation while matching celebrity
personalitywith brand personalitywrtcompany’s part of FMCG sector.

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INTRODUCTION

1.1 Research background:

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Everyday consumers are exposed to thousands of voices and images in magazines,

newspapers, and on billboards, websites, radio and television. Every brand attempts to steal
at least a fraction of a person’s time to inform him or her of the amazing and different
attributes of the product at hand. The challenge of the marketer is to find a hook that will
hold the subject’s [Link] helping to achieve this, use of celebrity endorsers is a widely
used marketing strategy.

In this modern age, people tend to ignore all commercials and advertisements while flipping
through the magazines and newspapers or viewing TV. But even then, the glamour of a
celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact
on the overall brand is of great significance. In this process, the companies hire celebrities
from a particular field to feature in its advertisement campaigns. The promotional features
and images of the product are matched with the celebrity image, which tends to persuade a
consumer to fix up his choice from a variety of brands. Although this sounds pretty simple,
but the design of such campaigns and the subsequent success in achieving the desired result
calls for an in-depth understanding of the product, the brand objective, choice of a celebrity,
associating the celebrity with the brand, and a framework for measuring the effectiveness.

Companies invest large sums of money to align their brands and themselves with endorsers.
Such endorsers are seen as dynamic with both attractive and likeable qualities and companies
plan that these qualities are transferred to products via marcom activities. Furthermore,
because of their fame, celebrities serve not only to create and maintain attention but also to
achieve high recall rates for marcom messages in today’s highly cluttered environments.

Similarly every product has an image. The consumer tries to consume a brand which has the
maximum fit with his/her own personality/image. The celebrity endorser fits in between these
two interactions, where he tries to bring the image of the product closer to the expectation of
the consumer, by transferring some of the cultural meanings residing in his image to the
product.

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Indian advertising started with the hawkers who used to call out their wares right from the
days when cities and markets first began. With this evolved a strategy that tried to benefit
from the emotional attachment of the admirers or the fans of the celebrities; in the form of
celebrity endorsement.

In the report,I have focused on the impact of celebrity endorsement on the overall process of
brand building and also tried to define: how to make celebrity endorsement a win-win
situation for both the brand and the brand-endorser. “Brand” is the most valuable asset of any
firm.

The general belief among advertisers is that brand communication messages delivered by
celebrities and famous personalities generate a higher appeal, attention and recall than those
executed by non-celebrities. The quick message-reach and impact are all too essential in
today’s highly competitive environment.

A brand should be cautious when employing celebrities to ensure promise, believability and
delivery of the intended effect. As the celebrities traverse from a mere commercial presence
to public welfare message endorsements, a whole new dimension is added to this process and
helps us in achieving a holistic view of the impact which celebrities generate in every sphere
and segment through their well-versed endorsements.

Celebrities have also been in demand having succeeded in being effective by rising above the
clutter & grabbing the attention and focus of the consumer. They also succeed in creating an
aspiration in the minds of the consumer to acquire what their favorite celebrity endorses.

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Ads endorsed by celebrities are a remedy for all the evils of advertising. Until now, it is a
widely used method in advertising and marketing for all physical brand building games.
However, the attraction of the superstar wants to be perfectly combined in an intelligent and
strategic way to obtain the important "mantras" that guide the fulfillment of the logo in the
modern aggressive advertising environment. The brands guarantee that all possible efforts to
sell their brands and exploit the thoughts of users share. The impulse is to attract the
customer's interest and develop pleasant associations now, not only to avoid forgetting, but
also to establish a judgment in the end, which influences the purchasing decisions. In a
market where advertising plays a fundamental role in the coordination of purchases, it
becomes pertinent that companies induce all possible measures to persuade them to inspire
and instill purchasing preferences within the buyer through a powerful marketing campaign.
advertising and marketing. The idea and practice have shown that the use of superstars in
marketing generates much publicity and attention.

Celebrity endorsements are made up of four predominant pillars that can be credibility,
celebrity appeal, product matching, and finally what change means. All these four elements
combine to form the support of celebrity. The results of this research report show that the
element of credibility (which is made up of experience and trust) of celebrity positively
affects consumers' intention to buy cosmetics. Celebrities also transfer meanings to the
product that positively influence the consumer's purchase intention. This transferred meaning
indicates that consumers begin to accept that celebrity-supported cosmetics make them feel
elegant and glamorous. This research also shows that people are more attracted to celebrity-
promoted ads than those that have no celebrity in them, which ultimately leads them to
remember products much more easily because celebrities appeared in those advertisements.

This research also shows that people are more attracted to celebrity-sponsored advertisements
than celebrities, which ultimately leads them to remember products (cosmetics) much more
easily because celebrities have appeared in those advertisements. Marketers use celebrities to
promote their products in order to give their brand an advantage and an advantage over their
other competitor. But hiring a celebrity to achieve the same goal requires profound
knowledge and many different aspects must be evaluated. The superstar's approval is a
million-dollar company these days. In this modern era, the world of advertising undergoes a
change, with classic forms, has become a modern path. This modern path requires marketing

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professionals to develop strategies that incorporate elements of emotion, humor, etc. The
main reason behind these techniques is to get publicity, attention, interest, choice and
movement of the emblem. And in order to make these techniques successful, marketers take
famous celebrities because celebrities have the power to create a greater effect on the
behavior of the customers they buy. Based on the fact that some of the stars have charismatic
personalities and enjoy a public reputation because they have unique characteristics such as
reliability and beauty.

Many big brands use the idea of celebrity approval as a marketing communication team. As
buyers, we are surrounded by the help of brands; We display thousands and thousands of
personalities on billboards and TV. Each logo tries to take advantage of our time to inform us
approximately what they should provide us and show us approximately the distinctive
attributes of the product. And this is where the project is. Entrepreneurs need to deepen what
will keep our interest. In order to gather this, the support of the movie star is placed in the
event of an impact. But this whole process of hiring celebrities and the superstar of the
product in the form is not as simple as it seems.

The design of such varieties of campaigns, after which making plans to make these
campaigns a success, requires a long technique of in-depth knowledge of the product, the
selection of a celebrity, the goal of the emblem and then associate the celebrity with the
emblem Celebrities are not the simplest and are intended to create some kind of interest and
also to achieve the goal of taking into account and popularity. And for this to happen,
entrepreneurs must take into consideration the image of their product, since the simplest
customers want to consume that product or emblem that has the maximum in tune with their
personality / personal image and the sponsor of the superstar inserts into these connections.
and links the product photo to consumers by transferring that product support. Furthermore,
entrepreneurs believe that, after hiring celebrities, they succeed in creating an aspiration in
consumers' thoughts to buy what their favorite celebrities endorse because in this world of
glamorous celebrities. Celebrities are often perceived as idols by many and people want to
follow their example and try those products that have the touch of celebrities, as celebrities
make these products more attractive and desirable.

In the advertising world to stand out from the mess, celebrity support is considered the most
effective tool that will do the job. This technique of considering celebrities with an emblem is

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a prevalent formula for building the brand and beautifying its costs. however, it is
exceptionally easy to select a celebrity for an emblem, but it is quite difficult to build a strong
link between the brand and the support. Therefore, it is for this reason that it is said that the
approval of celebrities is a double-edged sword. If managed properly, it can do wonders for
the company and can destroy the company's image and brand if it is not properly managed.

Over the years, many discussions have been made about ideas of what makes celebrity
endorsement a success. There have also been many investigations that could be aimed at
discovering all the factors that can be very animated to create an effect on consumers' buying
behavior.

According to a commercial company and an emblematic strategist, in particular Martin Roll,

he points out that there are three essential elements for celebrity support. They are the
following:

• Attractive

• Credibility

• Meaning transferred between the guarantee and the trademark.

According to Roll, he states that a celebrity sponsor must possess the quality that a target
audience for that approved brand considers attractive. These qualities can be in terms of
lifestyle or physical appearance can be intellectual abilities.

The scroll explains the term credibility as the perceived trust and experience of the celebrity
sponsor. He mentions “since celebrity endorsement acts as an external signal that allows
customers to see through the enormous confusion of brands in the market, the credibility
factor of celebrities greatly influences customer acceptance. And his opinion on the transfer
of meaning is that there must be sufficient compatibility between the product and the
celebrity.

Business consultant McCracken has created a three-stage model to explain the transferability
of meaning in the field of celebrity approval.

The first phase of his model begins with the association of the public with a series of
meanings with a famous personality. Upon reaching the second stage, these sets of meanings

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pass from that known person to the emblem or product through approval. And finally, in its
final phase, as buyers buy that product, the meaning of the brand is actually gathered through
the customers.

Attractive model source

According to Erdogen (1999), he states that customers who see a sponsor, who is physically
attractive, form a favorable perception. The attraction feature does not primarily include a
pleasant physical appearance, but includes lifestyle and even the size of the sponsor's
personality. Research results have shown that sponsors perceived as attractive can easily
influence customer values. (Debence and Kernan 1984)

The hypothesis of product correspondence.

The previous model explains that there must be an almost ideal correspondence between the
celebrity characteristics of the personality and the characteristics of the brand. (Erdogan
1999) states that a successful match can be determined by the degree of physical fitness
between the celebrity and the brand approved by that celebrity.

This same concept is also said through Michael (1989), who believes the same thing. Another
study conducted by Ohanian in 1991 reveals that simply the celebrity should support who is
compatible and the consumer perceives he also has experience.

The model of meaning transfer.

The model explains that every time customers meet any type of product supported by a
celebrity, they immediately correlate a certain meaning with the sponsor and finally transmit
it to the product.

(McCracken, 1986), states that with a simple terminology we can say that supporters bring
their individual meaning to the product. These models revolve around the meaning and its
transfer. Each star has its own set of media and lifestyle. There are four steps to this.

The first stage is when consumers combine meaning with the famous person and shape their
image; The next stage is when the meaning that is connected to celebrities also extends to the
product. In the final stage, customers finally acquire these brand meanings and make their
purchasing [Link] manufacturing probability model.

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In this model, under the title of Probability Model, there are two key ingredients that make up
this model:

• Motivation

• Skills

Motivation is the need to understand the message while engaged with the brand, while the
ability is put to good use when people are able to process and understand the persuasive
message. According to DebiprasadMukerjee (2009), he states that the attitude and
perceptions of the brand can be influenced and shaped through celebrity support if it meets
the criteria of credibility and correspondence. Their study indicates that marketers should
keep in mind that their main purpose is to establish and build the product and not celebrity,
and it is also extremely important to understand that since a personality becomes famous and
is considered a celebrity, not always means that the celebrity becomes a successful endorser.

The company, which investigates large amounts of capital with the support of celebrities,
needs to see that the connection of celebrity endorsements should also have an opinion on the
market method (Erdogan and Kitchen 1998).

Consistency and long-term commitment.

Marketers should try to maintain a level of consistency as high as possible, since they can get
the support of various celebrities and the product to provide a solid identity to that product
and gain the approval of a movie star as a strategic plan long-term. term that has an impact on
buyer behavior. Prerequisites for selecting celebrities.

Before selecting a celebrity to approve a product or a brand, three conditions must be met: the
approval of celebrities must be attractive, it must have a good image of the environment that
must possess a good knowledge of the product it is approving.

Constant monitoring
Marketers or employers must repeatedly monitor the behavior and photograph of the
superstar who backs up their emblem to preserve any terrible exposure.

Choose a precise endorser

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Producers replicate unique individuality and skill, so one-way marketing should assume it is
to choose a superstar who does not always endorse any of their competitors or similar
products, so that they can change a clear identity between the sponsor and the brand.

Endorser brand (vampire effect)

When celebrities are used to promote a brand, one of the results could be that the celebrity is
eclipsed by celebrities and to avoid this, marketers need to make sure this doesn't happen.

The support of celebrities as a method.

Registering famous celebrities to defend a product has several blessings; Marketing experts
believe that the best praise they get for supportive celebrities is to increase credibility,
establish the level of acceptance as true, attract interest and, above all, have a positive impact
on buyers seeking behavior. The approval of celebrities is a success factor because when a
normal person who sells a product tells you to try that product because it helped them, there
is a chance that consumers believe it or not, but when a celebrity says the same what a
celebrity. The product helped them, so consumers tend to listen to the celebrity and believe in
it, and this has a positive impact on consumers' buying behavior.

The support of celebrities and the results they have on consumers.

A pleasant and powerful support is achieved when stability is maintained between the
product and the celebrity. When marketers assign a product or brand to a celebrity, they are
really putting a face on their brand. Therefore, choosing a celebrity is a very important
decision and several parameters should be considered appearance, attractiveness and
popularity.
A general belief that prevails among advertisers is that brand message which is delivered by a
celebrity brings them better results because such recognized personality generates greater
appeals then those endorsed by non-celebrities. This quick reach of message to the audience
and creating an impact far too quickly is very essential. Celebrity endorsement does not
guarantee any success nor any impact on consumers buying behavior unless this strategy is
well integrated with the target market characteristics and other marketing mix elements like
product design, packing, pricing and branding itself.

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Attractiveness of the source that is celebrity leads consumers to persuasion and the consumer
gets motivated and is willing to bind themselves into a relationship with the celebrity by
adopting the same beliefs, attitude and behavior as is done by the celerity (source) and if the
source changes its position or attitude, the consumers following the celebrity may also follow
their lead.

Celebrity Endorsement

McCracken argues that celebrity endorsement is one of the ever present features of modern
advertising and marketing. Most commercial agencies employ superstar support to support
their products or brands. As noted, the approval of celebrities is a very persuasive
communication technique because it has the power to attract attention, to ensure that the
announcement remains in the memories of customers and the support of celebrities adds a
touch of glamor and glamor to Your approved product

Approvals could be of the following four types:

• Explicit (support this product)

• Implicit (I use this product)

• Imperative (this product must be used)

• Joint presentation method (appears only with the product)

The approval of celebrities as a marketing tool.

When we talk in terms of the perspective of marketing communications, it becomes

immensely vital to create strategies that provide a competitive differential advantage to their
products that produce positive effects in consumer minds (Baker, 1999) states that celebrity
support is the most important thing. widely used marketing strategy.

Companies spend a lot of money to hire celebrities to support their products, such celebrities
are seen by others as dynamic, engaging and attractive. Marketers try to align these celebrity
characteristics with their products. (Cooper, 1984), states that celebrity commercials benefit

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from an excessive degree of enchantment, attention and price than those celebrity-free
advertisements.

(Farrell, 2002) states that superstar support produces approximately excellent financial gains
for the organization. Many investigations have been conducted on celebrity testimonials,
many of which show that this method has provided wonderful consequences to the employer,
but in some cases, the researchers mention that celebrity endorsement does not paint all the
time and you do not already understand marketers have their favorite results. In truth,
sometimes the advertisements, the use of celebrities do not correspond to the expectations of
the advertiser. To begin with, it has been taken into account that the approval of a movie star
is a win-win approach without danger, but this has changed in the event of errors and several
dangers of skill in this strategy have been detected. Celebrity approval is a double-edged
sword that can make or break a brand if it is not handled the way it should have been.

Positive effects of celebrity approval.

(Croft) mentioned that as competition increases between companies to attract more

consumers to their brands, marketers increasingly use celebrities to endorse their products.

(Gaulkar, 2005) states that with a famous personality he helps markers solve the problem of
excessive communication.

Celebrities because of their familiarity can help the ads to be more popular and stand out
from the confusion and improve communication skills. Celebrity support helps to improve
the brand image and also glosses the image of the company.

Celebrity specializations can also be a powerful tool to enter foreign markets, as it helps the
company to overcome numerous problems. As an example, L, Oreal uses AshwariyaRai and
Sonam Kapoor from his perfect white, Kareena Kapoor remotely Lakme conical Kajal Eye
and Kajol on the subject of aging Olay cream are all considered famous in India.

It has also been seen that products guaranteed by prominent personalities of other competing
products due to its high level of recovery and celebrity also create an impact on the minds of
consumers, making the announcement to be memorable so that it can be easily recovered at
time of purchase. .

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Finally, the characters that appear in any advertisement to promote a product, they are
actually able to give life to a brand in decline and that can help to increase the growing brand,
in short, to create new interest and enthusiasm in consumers.

All of these arguments indicate a conclusion that testimonials create a positive impact on
consumers' buying behavior (Goldsmith, 2000)

Negative effects of celebrity endorsement

However, celebrity endorsements have innumerable benefits, but there are also some risk
factors associated with celebrity endorsement as a marketing strategy. Negative publicity
about celebrities is a big risk in supporting a celebrity and there are other factors that can lead
to serious consequences such as:

• Popularity begins to decline

• Moral problems

• Overlapping can lead to loss of credibility.

• Trample of approved products.

The negative publicity of a celebrity that promotes a brand can change the consumer's
perception of that celebrity and can even damage the reputation of the brand, which causes
advertisers to pay a high price for celebrity's misdeeds and seriously make humiliation and
shame.

This blackout is also known as the "vampire effect" because there is no clarity for consumers
because it turns out that they pay more attention and interest to speed than to interest.
Another problem that arises is overexposure when marketing professionals employ famous
celebrities in support of their brands and ultimately confuse consumers and fail to properly
remember the brand that the celebrity defends.

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1.2 INDUSTRY ANALYSIS

Quick moving shopper products (FMCG) are the fourth biggest part in the Indian
economy. There are three primary fragments in the segment – food and beverages
which represents 19 percent of the part, healthcare which represents 31 percent and
household and personal care consideration which represents the staying 50 percent.

The FMCG sector has grown from Rs 2,20,852.4crore (US$ 31.6 billion) in 2011 to Rs
3,68,669.75 crore (US$ 52.75 billion) in 2017-18. The sector is further expected to grow
at a Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach Rs
7,24,759.3crore (US$ 103.7 billion) by 2020. The sector was projected to grow 11-12 %
in 2019. It saw the growth of 16.5 % in value terms for the period of June–September
2019; supported by moderate inflation,theuprise in private consumption and rural
income. FMCG’s urban segment is expected to have a steady revenue growth at 8 %
in FY19 and the rural segment is forecasted to contribute 11-12 % of total income in

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FY19 Post GST and demonetization, modern trade share grew to 10 per cent of the
overall FMCG revenue, as of August 2018.

Accounting for a revenue share of around 45 per cent, rural segment may be a large
contributor to the overall revenue generated by the FMCG sector in India. Demand
for quality products and services are Increasing the bar in rural areas of India, on the
rear of improving distribution channels of producing and FMCG companies day by
day Urban segment accounted for a revenue share of 55 per cent within the overall
revenues recorded by FMCG sector in India.

Fast Moving Consumer Goods Companies are finding opportunities to invest in

energy efficient plants and industries to benefit the society and lower costs in the
long term Patanjali will spend Rs 5,197.85 crore (US$ 743.72 million) in various food
parks in Maharashtra, Madhya Pradesh, Assam, Andhra Pradesh and Uttar Pradesh.
Dabur is foreseeing to invest Rs 250-300 crore (US$ 38.79-46.55 million) in FY19 for
capacity expansion and is also looking for mergers and acquisitions in the Indian
market. Tata’s are also seeingopportunities to expand its home and personal care
products in Fast Moving Consumer Goods sector. In FY19, ITC produced more than
60 launches in the fast-moving consumer goods (FMCG) segment in India.
Investment intentions related to FMCG sector, arising from paper pulp, sugar,
fermentation, food processing, vegetable oils and vanaspati, soaps, cosmetics and
toiletries industries, worth Rs 15,961 crore (US$ 2.28 billion) were implemented
between January 2017 to July 2019. In 2019, RP-SanjivGoenka Group to invest capital
fund of Rs 103.01 crore (US$ 14.74 million) in FMCG start-ups. Nestle plans to invest
Rs 700 crore (US$ 100.16 million) to open a new plant in Sanand for Maggi.

Increasing awareness, easy access, and ever changing lifestyles are the most
important and key drivers for the consumer market. The focus on agriculture,
MSMEs, education, healthcare, infrastructure and tax rebate under the Union Budget
2019-20 is expected to directly impact the FMCG sector. These activities might

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increase the disposable income in the hands of the common people, especially in the
rural area, which will be beneficial for the sector.

Industry Growth Drivers

   

Outlook for FMCG Sector

Market research firm Nielsen India has brought down its growth target for the

FMCG sector. The firm has approximated growth in 2019 to be in the 9-10 % range

for 2019 as against 11-12 % estimated back then.

Within this, food sector is expected to grow at a higher rate 10-11 percent %, whereas

personal care and home care are expected to grow in the 7-8 % range.

Q2 2019 snapshot
In 2nd Quarter (April-June) 2019, value growth in the FMCG space declined to 10
percent, heading towards a slowdown. This follows the softening from the highs of
Q3 2018 (16.2 percent).

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According to the Nielsen report, the Fast Moving Consumer Goods (FMCG) growth
trend was largely dampened by volume-led growth, which has moved 3.6
percentage points lower to 6.2 percent in 2 nd Quarter 2019 from 9.9 percent in 1st
Quarter.
“There is a looming concern on increasing inflationary pressure, which stood at 1.9
percent at the beginning of the year and has already moved up to 3.18 percent in
June,” the report said.

Going by the Nielsen report, Fast Moving Consumer Growth (FMCG) sector's
growth for the 1st half (January-June) of 2019 stands at 12 percent as against a
prediction of 13-14 percent

Rural growth losing steam

Rural India contributes 37 % of overall Fast Moving Consumer Goods (FMCG)

spends and has historically been increasing around 3-5 % faster than urban on

account of increasing affordability, availability and demand.

However, rural growth has been declining and is double that of urban in recent

quarters. This has brought rural growth closer to urban in 2nd Quarter, 2019.

“At the beginning of the year we saw a softening, driven by essential and impulse

food categories. However, Q2 witnessed a slowdown across all food as well as non-

food categories with salty snacks, biscuits, spices, toilet soaps and packaged tea

leading the slowdown,” said Sunil Khiani, Head of Retail Measurement Services,

Nielsen South Asia..

“Taking a regional lens - the slowdown is driven by north and west zones,

where growth has come down to single-digit in Q2. Haryana, Madhya

Pradesh, Uttar Pradesh, Maharashtra and Assam are leading the slowdown,”

he added.

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Khiani said rural slowdown in these markets is reiterated in key macro

economic indicators such as slowdown in rural output, decreased

government spendings and sudden and off season rain impacting crops in

most north Indian markets.

Outlook

Nielsen approximated FMCG growth in July-September at 7- 8 % and in the 2nd

half of 2019 (July-December) around 8% . It refers to monsoons, government policies

and budget provisions and low base effect as drivers that will impact the FMCG

growth story.

Top Players of Indian FMCG Sector

1. Emami Ltd. - Emami Limited is one of the leading and fastest growing
personal and healthcare businesses in India, with an enviable portfolio of
household brand names such as BoroPlus, Navratna, Fair and Handsome,
Zandu Balm, MenthoPlus Balm, Fast Relief and Kesh King. Established in
1974, they have a portfolio of over 300 products based on ayurvedic
formulations. Its current operations comprise more than 60 countries
including GCC, Europe, Africa, CIS countries and the SAARC. Over 121
Emami products are sold every second somewhere around the world. Emami
Limited, the flagship company of the Group, recorded a turnover of Rs
2541.01 crore (US$ 363.58 million), FY18. It employs nearly 3,300 people, reach
out to 4.0 million plus retails outlets through a network of 3,150 distributors
and have invested in eight plants, four regional offices, one overseas unit,
nine overseas subsidiaries and 31 distribution centres and one associate across
India.

Emami: Making people healthy and beautiful naturally

201 Acquires German personal care brand Crème 21 for Rs 100 crore (US$14.30

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9 million).

201 Acquired 7.54 per cent stake in US-based beauty care products firm Loli
8 Beauty Inc for Rs 33.8 million (US$ 565,000) in a cash deal.

201 Acquired “ Kesh King “ Business at Rs 16.84 billion (US$ 262.51 million),
5 acquired controlling stake in Fravin Pty Ltd, launched Zandu Gel Balm
Junior and launched 100 per cent pure honey with Zero-added sugar

201 Entered the male deodorants space with HE , with brand ambassador,
4 HrithikRoshan, launched Fair & Handsome- Instant Fairness Face wash,
launched Zandu Balm Ultra Power and acquired “ She Comfort “ brand

201 Launched BoroPlus Face wash and signed in Sonakshi Sinha for the
3 endorsement

200 Introduced Health Care Division and merged JB Marketing

6

200 Launch of Fair and Handsome, the first fairness cream for men and public
5 issue of 5 million shares, listed with NSE

199 Launch of SonaChandiChyawanprash

9

197 Two childhood friends Mr RS Agarwal and Mr RS Goenka quit their jobs to
4 start their own business, Emami

2. ITC - ITC is one of India's foremost multi-business enterprise with a market

capitalisation of Rs 3,64,388Crores (US$ 52.69 billion) and Gross Sales Value
(includes all taxes) of Rs 75309.36 crore (US$ 10 billion). ITC is rated among
the World's Best Big Companies, Asia's 'Fab 50' and the World's Most

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Reputable Companies by Forbes magazine and as 'India's Most Admired

Company' in a survey conducted by Fortune India magazine and Hay Group.
ITC also features as one of world's largest sustainable value creator in the
consumer goods industry in a study by the Boston Consulting Group. ITC has
been listed among India's Most Valuable Companies by Business Today
magazine. The Company is among India's '10 Most Valuable (Company)
Brands', according to a study conducted by Brand Finance and published by
the Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.

ITC: Enduring Value

2019 Launched the world’s most expensive chocolate priced at Rs 4,30,000
(US$ 6,152) per kilogram under Fabelle brand.
ITC to enter dairy beverages market in India and expects to get a 5-10
per cent market share in first year of operations.
By collaborating with SWaCH, ITC Launches first of its kind Multi-
Layer plastic (MLP) collection programme in Pune.

2018 ITC is the most valued FMCG company in India

2010 Expanding the Tobacco Portfolio

2005 Entered Personal Care Products - Expert Solutions for Discerning

Consumers

2002 Education & Stationery Products - Offering the Greenest products

and Agarbattis& Safety Matches - Supporting the Small and Cottage
Sector 

2001 Branded Packaged Foods - Delighting Millions of Households

1910 Incorporated under the name Imperial Tobacco Company of India

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Limited

3. Dabur India Ltd. – Dabur India Ltd. is one of India’s leading FMCG
Companies with revenues of over Rs 8,533 crore (US$ 1.22 billion) in FY19.
Building on a legacy of quality and experience of over 132 years, Dabur is
today India’s most trusted name and the world’s largest Ayurvedic and
Natural Health Care Company. Dabur India is also a world leader in
Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's
FMCG portfolio today includes five flagship brands with distinct brand
identities -- Dabur as the master brand for natural healthcare products, Vatika
for premium personal care, Hajmola for digestives, Real for fruit juices and
beverages and Fem for fairness bleaches and skin care products. Dabur today
operates in key consumer product categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The ayurvedic company has a wide
distribution network, covering 6 million retail outlets with a high penetration
in both urban and rural markets.

Dabur: Celebrate life

2019 Dabur expands ayurvedic medicines portfolio with launch of 2 new

products.
For excellence in Corporate Governance, Dabur wins the ICSI
National Award.

2018 Dabur acquired D&A Cosmetics Proprietary Ltd and Atlanta Body &
Health Products Proprietary Ltd through its subsidiary 

2016 DaburGulabari and DaburLalDantManjan clock a turnover of Rs 1.00

billion (US$ 14.88 million) each

2011 Dabur enters professional skin care market and acquires Ajanta
Pharma's over-the-counter brand '30-Plus'

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2007 Foray into organised retail, celebrated 10 years of Real and Dabur
Foods Merged With Dabur India 

2000 Dabur India Ltd’s turnover crosses the Rs 10.00 billion (US$ 222.47
million) mark

1972 Dabur's operations shift to Delhi and a new manufacturing plant is

set up in temporary premises in Faridabad on the outskirts of Delhi

Early Dabur enters the specialised area of nature-based Ayurvedic

1900s medicines , for which standardised drugs are not available in the
market

1896 Setting up a manufacturing plant

1884 Birth of Dabur

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1.3 PROBLEM STATEMENT

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This study is done to understand the challenges faced by FMCG companies while matching
celebrity personality with brand personality. The idea behind the research is to understand the
process of celebrity and brand endorsement and to identify challenges faced
bycompanieswhile matching celebrity and brands in the FMCG sector. Idea is to also
understand, if the products promoted by the stars are purchased more than the products that
are not recommended by celebrities.

1.4 NEED FOR THE STUDY

This study will help to get information the challenges faced by companies while matching
brand personality with celebrity endorsement. It will help to have a better idea of which
attributes are critical and the most important issues for companies. Celeb's support products
have a very effective strategy to market a product and also offer competitive antiquity
compared to competing brands in an incredibly competitive environment. For a long time,
celebrities are regularly used as paper fashions, mainly in private-looking regions. Therefore,
the study will help to understand how company’s device marketing strategies using celebrity
for brand endorsement.

1.5 OBJECTIVES OF THE STUDY

Primary Objective:

 To understand concept of celebrity endorsement with brand personality and to study the
challenges experienced by the companies.

Secondary Objectives:

The study intend to

1. To study the Indian FMCG sector and its growth drivers

2. T understand the promotion strategies used by the FMCG sector
3. To understand the use of celebrity personality as promotional strategy
4. To study the challenges faced by organizations while matching celebrity
personality with brand personality

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1.6 SCOPE OF THE STUDY

Simply stating, a brand is a differentiated product and helps in identifying your product and
making it stand out due to its name, design, style, symbol, color combination, or usually a
mix of all these:

Perceived Quality
Name Brand Associations
Name Symbol
Awarenesssess Name Symbol
Name Symbol

Brand Loyalty Proprietary Assets

Symbol Name Symbol
Brand Equity Name
Symbol

Provides value to firm by enhancing

Provides value to customers by
enhancing Customers  Efficiency and effectiveness
of marketing programs
 Interpretation/processin
 Brand Loyalty
g of information
 Prices/margin
 Confidence in the
decision  Brand Extension
 Use satisfaction  Trade Leverage
 Competitive Advantage

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Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have
to ferret the implicit factors that act as sources of strong brand images or values: -

· Experience of Use: This encapsulates familiarity and proven reliability.

· User Associations: Brands acquire images from the type of people who are seen
usingthem. Images of prestige or success are imbibed when brands are associated
with glamorous personalities.
· Belief in Efficiency: Ranking from consumer associations, newspaper editorials, etc.
· Brand Appearance: Design of brand offers clues to quality and affects preferences.
· Manufacturer’s Name & Reputation: A prominent brand name (Sony,
Kellogg’s,Bajaj, Tata) transfers positive associations.

The celebrity’s role is the most explicit and profound in incarnating user associations among
the above mentioned points. To comprehend this, let us analyze the multiplier effect formula
for a successful brand: -

S=E* D*AV -- the multiplier effect

Where

S is a Successful Brand
E is an Effective Product
D is Distinctive Identity
AV is Added Values

The realm of the celebrity’s impact is confined to bestow a distinctive identity and provide
AV to the brand; the celebrity does not have the power to improve or debilitate the efficiency
and features of the core product. Thus, we are gradually approaching an evident proposition
claiming, "The health of a brand can definitely be improved up to some extent by celebrity

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endorsement. But one has to remember that endorsing a celebrity is a means to an end and
not an end in itself."

An appropriately used celebrity can prove to be a massively powerful tool that magnifies the
effects of a campaign. But the aura of cautiousness should always be there. The fact to be
emphasised is that celebrities alone do not guarantee success, as consumers nowadays
understand advertising, know what advertising is, and how it works. People realize that
celebrities are being paid a lot of money for endorsements and this knowledge leads them to
think twice about celebrity endorsements.

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CHAPTER 2:LITERATURE REVIEW

 According to [CITATION Sus13 \l 1033 ]“He mentions that celebrities are those people who
are commonly linked to a different way in their standards and also get a lot of recognition
from others. The reason why the organization regularly engages in hiring celebrities to
recommend their logo is that a well-known character can benefit effortlessly from public
attention and an additional level of attention and consideration. Therefore, it is said that
celebrity support positively influences the consumer's attitude towards the brand and its
purchase decision".

 [CITATION Cla03 \l 1033 ]“Considers that consumers are more motivated to buy celebrity
products than those who do not have celebrity endorsements, as celebrity-sponsored
products will have more value for them. The method of using celebrities for advertising
and the marketing conversation method is very large for a large company to maintain its
product image.
Since celebrity testimonials started a long time ago, the reason why celebrity testimonials
are still very present and this concept prevails is because of the advantages it brings."

 Celebrity endorsement brings about a positive advertisement result, increase in the rating
of the products and also increase in the purchasing of those products.

There are many theories done in this aspect, which are:

According to Kokil, celebrity is that person who has excelled in his field of action and thus
enjoys fame on being recognized far and wide. Marketers believe that celebrity endorsement
generates several advantages which include building credibility, fostering trust and drawing
attention of the consumers which will result into sales for that brand. Celebrity endorsement is
that successful strategy that helps to raise the sales and capture market share, this technique
provide a product with a glamorous touch and sparkle the expectation that a popular look will
give that product an added appeal and a recognition.”[CITATION kok \l 1033 ]

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Challenges experienced by organization while matching celebrity personality with brand personality for FMCG companies

 "By supporting a movie star, entrepreneurs will surely excite their buyers with the help of
showing them an absolutely admirable and famous face and they have managed to
increase demand due to the fact that through this tactic, entrepreneurs are also increasing
the withdrawal rate of your brand that creates a positive impact on consumers purchasing
by conduct ".[ CITATION Kai87 \l 1033 ], It translates into celebrity use in advertisements;

 Facilitate brand identification.

 Impressing or altering the negative attitude towards the brand.
 Repositioning of an existing brand
 Positioning of a new brand or product.
 Positive impact on consumer purchasing decisions.

Famous sponsors can become very effective brand couriers, but they are also associated with the
risk that it is:
 Celebrities accused of being guilty because of the events of some negative events can
have negative effects on that product and on the brand in general.
 Kamile states that customers often contain a very encouraging technique for attractive
people.[CITATION McG00 \l 1033 ]state that usefulness of any kind of communication
depends on:
• Similarity
• Familiarity
• Likeability

Celebrity endorsement has continually increased because it is considered essential for brand
communication, as it is a key to marketing success. The main factor that celebrity endorsement
positively impacts consumers' buying behavior is actually the public recognition of that celebrity
as an admirable and desired cultural force.

 Researchers have proved that physical attractiveness can very easily change beliefs of the
people [ CITATION Cha79 \l 1033 ] Similarity is the name of semblance involving the
receiver of message and source of the message.
 [ CITATION Cha791 \l 1033 ]“He says that superstar approval offers excellent economic
benefits for the organization. Many investigations have been conducted on celebrity

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testimonials, many of which show that this method has provided wonderful consequences
to the employer, but in some cases, the researchers mention that celebrity endorsement
does not paint all the time and you do not already understand marketers have their
favorite results. In truth, sometimes the advertisements used by celebrities do not match
the advertiser's expectations. To begin with, it has been taken into account that the
approval of a movie star is a win-win approach without danger, but this has changed in
the event of errors and several dangers of skill in this strategy have been detected.
Celebrity approval is a double-edged sword that can make or break a brand if it is not
handled the way it should have been.”[ CITATION cha79 \l 1033 ]

 [ CITATION kum10 \l 1033 ]“mentions that there are instances whilst purchasers surely best
notices the celeb performing alternatively then the product, consequently this idea to
promote that logo fails miserably. [CITATION Coo841 \l 1033 ]says that “the product not
the celebrity must be the star.”

 India is one of the countries in which there are great social disparities (ethnicity, tradition,
language, norms and values, etc.) as well as monetary terms, which translate into
discrepancies within purchasing power and influence selection, which advertisers must
consider to influence customer behavior, entrepreneurs use various strategies, including a
very popular device is the approval of celebrities”[ CITATION Als08 \l 1033 ]

 In step with the marketers all over the international Indian entrepreneurs have additionally
started using celeb endorsements. In Nineteen Eighties brands like Vimal, Thums Up and
Gwalior used stars for brand merchandising. afterward in 90s Coca Cola started the use of
Indian celebrities for its commercials in India. Even manufacturers of high recognition
like Parker extensively utilized Indian film superstar Amitabh Bachchan to suggest the
emblem in India”[ CITATION Abh13 \l 1033 ] Over a time frame diverse researcher
studied the effect of superstar endorsements on brands. Their studies revealed that the
impact of celebrity endorsements on brands varies with the celebrity and the product
category and that most of the endorsements have a favorable impact [ CITATION Bal11 \l
1033 ][ CITATION Gan12 \l 1033 ]. [ CITATION Erd99 \l 1033 ] and

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[ CITATION Agr95 \l 1033 ] They reported in their studies that celebrities bring their
unique image to the product, brand or service they supported and, therefore, they can
generate, improve and modify the brand image. It turned out that when the celebrity
public figure coincides with the assets and target audience, celebrity sponsors are
more powerful than sponsors who are not movie stars in a growing attitude towards
advertising and the supported logo, intentions of purchase and real income [ CITATION
Erd99 \l 1033 ]. Celebrities can influence consumers' attitude and purchasing decisions
due to the reputation, credibility, trust and followers they enjoy. Celebrity
endorsement helps companies increase brand recognition and gain acceptance.

CHAPTER 3: RESEARCH METHODOLOGY

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3.1 Type of Research Design

The study is explorativestudy as it would be used to find factors using available

literature and understanding of FMCG Sector and their promotional strategies, with
focus on celebrity endorsement with use of case study method or focused study of
brand promotion with brand managers of FMCG organizations. This study would
focus on generating information from company brand managers in the FMCG sector
and use of available literature to would like to find out the challenges faced by
organizations while matching celebrity personality with brand personality.

The study would focus on –

Managers’ reasons for utilizing celebrity endorsers –
1. Standing out or shorthand
2. Awareness or attention getting
3. Celebrity values define, and refresh the brand image
4. Celebrity add new dimensions to the brand image
5. Instant credibility or aspiration
6. PR coverage
7. Desperate for ideas
8. Convincing clients

3.2 Sources of Data

The data would be collected through secondary data collection method.

Secondary data:

The secondary information would be collected from available literature from

research papers available on EBSCO, J Gate, online portals, blogs, websites,
magazine, journals, books and some other relevant sources. The study would also
like to use the available case study and review literature to understand the
marketing strategies and challenges faced by brand managers.

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CHAPTER 4: ANALYSIS AND INTERPRETATION OF THE DATA

COLLECTED

Branding & Celebrity Endorsement

Today, use of celebrities as part of marketing communication strategy is fairly common

practice for major firms in supporting corporate or brand imagery.

Definition Of A Brand

Jack Welch, the former CEO of General Electric, once said, “Our most valuable assets are
ourintangible assets.” The intangible asset he was referring to is a brand. The Dictionary of
Business

& Management defines a brand as: “a name, term, sign, symbol, or design, or a combination
ofthem, intended to identify goods or services of one seller or a group of sellers and to
differentiate them from those of competitor”.

Definition of a Celebrity

Per say, a dictionary meaning of this word is “a famous person". A person who has excelled
in his / her field of action or activity. In our day to day activity, we perform many acts, may
at home, at work place, on field in sports, in social life. But these acts may be daily routine or
just "acts" per say giving no extra-ordinary results, not noticed by anybody surrounding, and
not taken into notice by Media.

But if a person acts or performs something which gives spectacular results is noticed by
masses. That person has "done something" special that we and masses can not do. He is
regarded as a special person with some "extra" given by that "Almighty" above. We start

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feeling that he/she is great. We start celebrating his/her all acts which produce success. If the
success rate for that person is very high to "deliver" same results, he becomes a
"CELEBRITY". It may be in field of sports, cinema, theatre, social life, politics, and science
anything but something with some special results.

But by all means these acts should be with good cause, positive results, morally good and
acceptable results. Eg. A bandit queen of Chambal valley was very famous, but was terror
before her surrender to police. But she never becomes celebrity. But an actress Ms Seema
Biswas who acted in film on "Bandit Queen" on life of that bandit, became very famous and a
Celebrity.

A celebrity is perceived as god by masses. They touch their feet, create idols and worship,
garland their photographs, perform "Yagnyas" for their idols performance, wait for their
"Darshan" in hot sun or heavy rains for hours together, follow fashions of them - wear similar
clothes or have similar hair style as that of celebrity, and on wrongside even commit suicide
if celebrity FAILS to deliver results.

They have tremendous mass followings. They pull crowds with their presence only. If it is
understood that Amitabh Bachchan is coming for shooting a film, to a particular location on a
particular day , then there is big commotion in that area.

Celebrities are people who enjoy specific public recognition by a large number of certain
groups of people. They have some characteristic attributes like attractiveness, extraordinary
lifestyle or special skills that are not commonly observed. Thus, it can be said that within a
society, celebrities generally differ from the common people and enjoy a high degree of
public awareness.

According to Friedman and Friedman, a “celebrity endorser is an individual who is known

bythe public for his or her achievements in areas other than that of the product class

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endorsed”. Compared to other endorser types, famous people always attach a greater degree
of attention, recall and loyalty.

In this age of intense competition, where capturing a position in the consumers’ mind space is
extremely tough, celebrity endorsements give an extra edge to the companies for holding the
viewers’ attention. Celebrities can catalyze brand acceptance and provide the enormous
momentum that brands require by endorsing the intrinsic value to the brand.

Like

a.)Actors(e.g., Amitabh Bachchan, Shahrukh Khan, Akshay Kumar, HrithikRoshan, Kareena

Kapoor, Katrina Kaif, Saif Ali Khan, Madhuri Dixit, etc,).

b.)Models(e.g., Mallaika Arora, MilindSoman, etc),

c.)TelevisionPersonalities (UrvashiRautele, DivyankarTripathi, Dyanand Shetty, etc),

d.)Sports figures(e.g., Sachin Tendulkar, ViratKohli, M S Dhoni,Hima Das,etc),

e.)Entertainers(e.g., Kapil Sharma, Bharti Singh,RajuSrivastav, etc.),

f.)Pop-stars(e.g., Justin Bieber, Jennifer Lopez, etc.).

But also for less obvious groups like businessmen (e.g. Bill Gates, Neeta Ambani) or
politicians. Clebrities appear in public in different [Link], they appear in public
whenfulfilling their profession, e.g., VishwanathanAnand, who plays chess in front of an
audience.

Furthermore, celebrities appear in public by attending special celebrity events, e.g., award
ceremonies, inaugurations or world premieres of movies. In addition, they are present in
news, fashion magazines, and tabloids, which provide second source information on events
and the ‘private life’ of celebrities through mass-media channels (e.g., SmritiIrani being

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regularly featured in various publications). Last but not least, celebrities act as spokes-people
in advertising to promote products and services, which is referred to celebrity endorsement.

WHAT IS PRODUCT ENDORSEMENT?

A product endorsement is a form of testimonial from someone which indicates that they like
or approve of a product. Commonly, product endorsements are solicited from people who are
socially prominent, allowing companies to advertise their products with statements like “as
used by such-and-such an actress,” or “the official product of company/event X.” It's hard to
miss a product endorsement on product packaging and in advertisements; most companies
keep their endorsements front and center so that they are always in the public eye.

The concept of the product endorsement is quite ancient. In England, for example, several
companies have been advertising themselves as “by appointment to the Queen” for hundreds
of years, indicating that they enjoy the patronage of the British royal family. Consumers are
often seduced by the idea of purchasing a product which is endorsed by someone wealthy or
famous, as though by buying the product, the consumer also becomes affiliated with the
person who endorses it.

Modern product endorsements can come with contracts worth substantial amounts of money.
For example, many sports stars agree to participate in product endorsement campaigns with
the understanding that the company will compensate them for the trouble; some stars donate
the proceeds to charities they support, using the product endorsement as a public relations
campaign. In exchange for an endorsement contract, someone may agree to use the product
publicly whenever possible, and they may be restricted from using products made by a
competitor.

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A product endorsement doesn't necessarily mean that a product is good. It just means that the
company has managed to work its public relations connections to get a big name associated
with it.

Some endorsements take the form of written testimonials, where people write about how the
product changed their lives. Historically, such testimonials were often printed on the product
packaging directly; modern testimonials are more commonly included in advertising
campaigns, with excerpts only on the packaging. Many companies also use photographs of
famous people on their products to create a visual connection between the endorser and the
product, which is why sports stars appear on various sports merchandise.

WHAT IS CELEBRITY ENDORSEMENT?

The use of celebrities in order to increase the sales and/ or the recall value of a brand is called
celebrity endorsement

The late '80s saw the beginning of celebrity endorsements in advertising in India. Hindi film
and TV stars as well as sportspersons began encroaching on a territory that was, until then,
the exclusive domain of models. There was a spurt of advertising, featuring stars like
Tabassum (Prestige pressure cookers), Jalal Agha (Pan Parag), KapilDev (Palmolive Shaving
Cream) and Sunil Gavaskar (Dinesh Suitings). Of course, probably the first ad to cash in on
star power in a strategic, long-term, mission statement kind of way was for Lux soap, a brand
which has, perhaps as a result of this, been among the top three in the country for much of its
lifetime.

Endorsements by celebrities have started since a long time. The very fact that their use has
continued for so long is proof enough of its immense advantages, but they have several
disadvantages too. When it comes to celebrity endorsement, the first brand that comes to the
Indian mind is that of Lux, the Beauty Bar of the Stars. Since its inception, Lux the brand has

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grown positioning itself thus. However, recently Lux has tried to change its positioning from
being a woman’s soap to being soap for men as well. Sticking to its strategy of using
celebrities to appeal to its target audience, this time around it has used Shah Rukh Khan to
endorse Lux. But this time the response has been confusing.

One of the first sports endorsements in India was when Farokh Engineer became the first
Indian Crickets to model for Brylcream The Indian cricket teams now earns roughly Rs. 100
crore through endorsements. There was a spurt of advertising, featuring stars like Tabassum
(Prestige Pressure cookers). Jalal Agha (Pan Parag).KapilDev (Palmolive Shaving cream) and
Sunil Gavaskar (Dinesh Sutings)

CELEBRITY BRANDING AND ITS EFFECT ON CONSUMERS

It is a known fact that the best endorsements achieve an effective balance between the
product (brand) and the celebrity. Giving a brand a 'face' is more than just a marketing
strategy to increase sales or gain market share, it is a decision that can change the future of
the brand forever.

Choice of the celebrity, hence, is of utmost importance and is usually done based on many
different parameters - appeal, looks, popularity or even just a fantasy figure to endorse a
brand.

In today's highly competitive markets, big brands are at logger-heads when it comes to
products, each having a similar product to that of a rival. Where does one brand gain that
competitive advantage - advertising, service, or promise of trust. Advertising seems to be the
best platform where brands prefer to compete on - right from hiring the best advertising
agencies to getting the biggest celebrities. What would be the formula to success then? Well,
a good creative agency, a large enough promotional budget and a huge star to endorse your

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brand would definitely ensure in the minds of a brand management team a feeling of security,
success and a triumph over the competitors brand.

The general belief among advertisers is that brand communication messages delivered by
celebrities and famous personalities generate a higher appeal, attention and recall than those
executed by non-celebrities. The quick message-reach and impact are all too essential in
today's

The importance of a celebrity-brand match and the various roles played by them as brand-
associates show the momentum this strategy has gained in the last decade or [Link] is a
country where people are star-struck by film stars, cricketers, politicians, and even criminals.
Why? Populations of 1 billion and ticking, everyday people need something or someone to
look up to. A sense of security, admiration, comfort, familiarity, and above all, someone they
aspire to be at some hidden level in their lives. A clever marketer leverages this very celebrity
appeal and successfully carries out his job by giving the brands what they want - profit,
market share and even recall. But how much star power is too much? "Does Amitabh really
eat Dairy Milk," asked a 6 year old to her mother. Her mother laughs and says, "No way, just
a gimmick." What does that do to the brand?

Now, despite the potential benefits derived from celebrity endorsements, they increase a
marketer's risk and should be treated with full attention and aptitude. A brand should be
cautious when employing celebrities to ensure promise believability and delivery of the
intended effect. As the celebrities traverse from a mere commercial presence to public
welfare message endorsements, a whole new dimension is added to this process and helps us
in achieving a holistic view of the impact which celebrities generate in every sphere and
segment through their well-versed endorsements.

The most important thing to remember is that putting a celebrity in an ad is not an idea in
itself. Unfortunately, this is how most celebrities are being used in Indian advertising, where

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they just become a prop. Ideally, there should be an idea that makes the celebrity relevant to
the product and the consumer. A celebrity's presence in the ad should be contextual.

Celebrity endorsement cannot guarantee fool-proof success. The celebrity endorsement

strategy must be integrated with target market characteristics, and the other elements of the
marketing mix such as product design, branding, packaging, and pricing. The message
execution that will be mouthed by the celebrity must likewise be made clear and single-
minded. This can be done by aligning the spirit of the brand to the product, or by using a
celebrity because it ensures that people will notice you, and hopefully remember what the
brand is saying.

Relationship between a Celebrity & a Brand

It is also important to view the consumer in their social and cultural setting to further see how
celebrity endorsements increase sales and impact brands over time. Celebrities usually form a
very good example of a reference group appeal. This is particularly beneficial to a marketer
and a brand who can cash in on the success of the star and, hence, push his brand. People who
idolize their celebrities, hence, have a biased affinity to the brand their favorites endorse. As
time passes on, they believe that they by adopting the brand that their celebrity endorses are
becoming more like them. Celebrities can be used in four ways namely: testimonial,
endorsement, actor and spokesperson.

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Right now the current hot favorite in India is roping in celebrities for social causes like AIDS,
polio etc. This has shown to be having a positive effect on the people. In India, Bollywood
and sport personalities rule the mind-space and airwaves.

IS CELEBRITY ADVERTISING EFFECTIVE?

What are the benefits of representing India in the national cricket team? It is an opportunity to
compete with the best in the world and pitch one's talent against the best.

It is an opportunity to travel around the world. It is an opportunity to uphold national pride.

And make good money from every match played.

But there is more, a ticket to modelling in the advertising world (and a future perhaps in
Bollywood). Not surprisingly it's a very attractive profession. As advertisers pour crores of
rupees every year into celebrity advertising.

Think of ViratKohli. He means Puma for Sports products, Boost energy drink in Beverages,
Too Yumm in nutritious snacks, Clear Anti Dandruff Shampoo in toiletries and personal
hygiene, Audi in cars, MRF in tyres, Hero Motor Cops in two-wheelers, Manyavar in
Clothing, Colgate in toothpaste, Myntra in online shopping, American Tourister in
luggage,etc.

Clearly, an overload of brands and categories associated with one star.

In the advertising world, celebrity advertising is seen as a substitute for 'absence of ideas' --
and actually frowned upon. Yet it appears again and again.

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The reasons are quite insightful.

A client hits upon celebrity as a solution when his agency is unable to present to him a viable,
exciting solution for his communication/marketing problem. He then feels that the presence
of a well-known face is an easy way out. It is rare that there is an idea on the table and client
and agency mutually agree that the presence of a celebrity will actually lift the script. This is
very similar to Bollywood blockbuster films where the cast is decided upon and the script is
either written accordingly or re-engineered around the cast.

There is no doubt that celebrity advertising has its benefits –

The four Qs:

Quick saliency: It gets cut through because of the star and his attention getting value.
Nerolac 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 Tendulkar & Shah Rukh Khan 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. KapilDev and Sachin Tendulkar seem to have done that

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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,

thefirst that picks one up could use it to differentiate itself in the market. Boost did it in the
malted beverage category.

In general celebrity endorsements are impelled by virtue of the following motives:

• Instant Brand Awareness and Recall.

• Celebrity values define, and refresh the brand image.

• Celebrities add new dimensions to the brand image.

• Instant credibility or aspiration PR coverage.

• Lack of ideas.

An appropriately used celebrity can prove to be a massively powerful tool that magnifies the
effects of a campaign. But the aura of cautiousness should always be there. The fact to be
emphasized is that celebrities alone do not guarantee success, as consumers nowadays
understand advertising. They know what advertising is and how it works. People realize that
celebrities are being paid a lot of money for endorsements and this knowledge makes them to
think twice about celebrity endorsements.

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CHALLENGES FACED BY BRAND MANAGERS

Compatibility Of - The Celebrity’s Persona With The Overall Brand Image

A celebrity is used to impart credibility and aspirational values to a brand, but the celebrity
needs to match the product. A good brand campaign idea and an intrinsic link between the
celebrity and the message are musts for a successful campaign. Celebrities are no doubt good
at generating attention, recall and positive attitudes towards advertising provided that they are
supporting a good idea and there is an explicit fit between them and the brand.

Certain parameters that ensure proper compatibility between the celebrity and brand image
are

· Celebrity’s fit with the brand image.

· Celebrity—Target audience match

· Celebrity associated values.

· Costs of acquiring the celebrity.

· Celebrity—Product match.

· Celebrity controversy risk.

· Celebrity popularity.

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· Celebrity availability.

· Celebrity physical attractiveness.

· Celebrity credibility.

· Celebrity prior endorsements.

· Whether celebrity is a brand user.

· Celebrity profession.
Fit with the Advertising Idea

Marketers now seek to adopt 360 degree brand awareness in which the brand sees no limits
on the number of contact points possible with a target consumer. Advertising ideas, thus,
revolve around this approach, and the celebrity endorsement decisions are made through
these startegic motives.

One of the most successful celebrity endorsement campaign which reflects the fit between the
brand and the 360 degree advertising fit was FardeenKhan and Provogue.

Celebrity endorsements & brand building

Positioning in the apparel market was of a young, active, party-going, attention-grabbing

brand and so was FardeenKhan. The conjuction between the two had been immensely
impactful and brand managers had utilised this endorsement through 360 degree
reinforcement. Provogue lounge and extensive phased insertions in print in selective
publications reaching out to their target audience had made it as one of the highest recalled
celebrity endorsement.

Similarly, RichardGere’s the then endorsement for visa in India had gained acclamation due
to its innovativeness and consumer connect. Brand marketers said that research reveals that
RichardGere was the most popular face across the asia pacific region, and would also fit into
the persona of the brand meeting their communication objective to enhance visa's brand
leadership and consumer preference, and the motive to continue the "all it takes"
empowerment platform featuring international celebrities.

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Celebrity-target audience match

SmritiIrani endorsed the who recommended ORS campaign in India. Indian mothers could
associate with SmritiIrani through the facets she projected on screen or in regular life which
helps develop a connect with the target audience since mothers medicate their children with
ORS. The inserial placement of the campaign in "kyunkisaasbhikabhibahuthi" had won it an
award from PR week.

Similarly, IrfanPathan endorsing Hero Cycles had gained the brand immense recall and
embarked through the positve association between the consumer and the brand.

Celebrity values

Celebrity branding is all about the transfer of the value from the person to the product he
endorses or stands for. There are two concerns here. The first is how long this could last. Can
the person maintain his popularity (i.e., his performance or status ranking)?

The lifecycle of celebrity popularity varies a lot. The second concern is his private life -
personal integrity. If he is implicated in any kind of scandal, that would ruin the brand. "who
would want to use Michael Jackson to brand their product?" ([Link]) Tabu
endorsing tetra packed milk,ShabaAzmi campaigning for aids awareness,

Celebrity endorsements & brand building

Amitabh Bachchan&Shahrukh khan campaigning for pulse polio or AishwaryaRai appearing

in the donate eyes campaign are few examples, which reflect the transfer of celebrity values
to the brand, creating an impact that generates recall.

Costs of acquiring the celebrity

Consequently, companies must have deep pockets to be able to afford the best available
celebrities. Back then, a newspaper report showed how cola firms had gone beyond their
advertising budgets to get the best celebrities. Small firms that use celebrities' services run

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greater risks if they invest large amounts. Although nobody is willing to say exactly how
much celebrities get paid, industry sources say Sachin Tendulkar's price is believed to be
between Rs 2.0-2.5 crore per endorsement, and musician A. R. Rehman, who had signed up
with Airtel, is believed to have picked up Rs.1.75 crore. Film-star HrithikRoshan was
rumored to have picked up Rs.2 crore for the #flywithhrithik campaign to push close-up, and
Shahrukh Khan's rate seems to be between Rs.2.5-3.0 crore. AishwaryaRai apparently picks
up Rs.1.25 crore for an endorsement and the then Indian cricket captain SauravGanguly is
believed to have got between rs. 90 lakh to Rs.1.5 crore, while film-star Aamir Khan
apparently makes Rs.1.5 crore per endorsement.

Celebrity regional appeal factors

R. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India are
few examples of how celebrities are chosen to reach out to target audiences for brands in
regional markets.

Another interesting example would be of Steve Waugh campaigning for tourism Australia in
India since he was one of the popular celebrities from Australia and could carry the message
of Australia as a tourist destination. Other celebrities like Kylie Minogue, Nicole Kidman
from Australia could have been prospective endorsers for brand Australia but not in the
region of India.

Celebrity endorsements & brand building

Celebrity-product match

Nikhil Chinnapa was the brand ambassador for mtv since both the celebrity and the brand are
considered as friendly, young, mood-boosting, humourous and outspoken. Mtv's brand
personality overlaps Nikhil Chinnapa's image as a brand.

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Some more examples of compatible celebrity product match in which celebrity brand
attributes get transferred to the brand and increases the brand equity was of Malaika Arora
&Freshizza from pizza hut, Govinda&Navratna Oil, Sanjay Dutt& Elf Oil, Sunny Deol& lux
undergarments, Aishwaryarai&Nakshatra, etc.

Nikhil Chinnapa was one the style icons ruling the hearts of youth

Celebrity controversy risk

The perfect example was of Salman Khan and the controversy in which he crushed a man to
death with his Pajero when he was driving under the influence of alcohol. Also, any act on
the part of the endorser that gives him a negative image among the audience and goes on to
affect the brands endorsed. The brand, in most instances, takes a bashing,

Celebrity popularity

Celebrity brand association like Garnier endorsed by Tara Sharma & Simone Singh, Agni
diamonds with RaimaSen didn't get much brand recall, and even if they do, its difficult to
attribute it to the celebrities' endorsing the brand.

On the other hand, hpcl has had increased popularity and share of voice due to the
endorsement of the brand through SanaiMirza.

Celebrity availability

In case of various brands, there are situations in which they prefer to go without a brand face,
since there is no brand-fit between the celebrities available and the brand. Also, due to
multiple endorsements by certain celebrities, brands refuse to adopt celebrity endorsement
since they fear dilution of the brand image.

Celebrity physical attractiveness

BipashaBasu’s physical attractiveness and her connect with the brand made Levis Strauss's
campaign through celebrity in india, John Abraham endorsing Wrangler and Yamaha are

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some examples which portray the celebrities' physical attractiveness that helps creating an
impact.

Celebrity credibility

The most important aspect and reason for celebrity endorsement is credibility. In a research
Carried out among 43 ad agencies and companies, most experts believed that the
mostimportant dimensions of credibility are trustworthiness and prowess or expertise with
regard
To the recommended product or service (miciak and shanklin, 2002). One of the most
obvious reasons of Amitabh Bachchan endorsing huge number of brands is the credibility of
thecelebrity and his recognition across consumers.

To site one of the most successful campaigns in which the celebrity's credibility has had an
indelible impact on the brand and has saved the brand is of cadbury's. After the worm
controversy, amitabhbachchan's credibility infused into the brand through the campaign,
helping it to get back on track. The campaign has won an award for the same.

Multiple endorsements

The case of multiple endorsements, both in terms of a single brand hiring multiple celebrities
and that of a single celebrity endorsing multiple brands, is often debated. At times, consumers
do get confused about the brand endorsed when a single celebrity endorses numerous brands.
The recall then gets reduced and reduces the popularity of the brand. Not many people can
remember all the brands that a celebrity endorses and the chances of losing brand recall
increases if the celebrity endorses multiple brands. For example, in case of SachinTendulkar
people recall Pepsi, TVSVictor and MRF, but might not remember brands like Britannia and
fiat. Similarly, for AmitabhBachchan, consumers remember Cadbury, Pepsi, Parker pens,

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Pulse Polio and BPL. They might get confused in the endorsement of Nerolac or Asian
paints. Thus, for multiple endorsements where the same celebrity endorses several brands, it
boils down to the strength of the brand and the advertising content.

Whether celebrity is a brand user

One of the strongest platforms to discuss this is through NGOs. Various celebrities endorse
NGOs and social causes since they believe in the social message that they need to convey to
the audience. One of the most successful campaigns has been executed by PETA in which
celebrities like Shilpa Shetty, Amisha Patel, Yana Gupta, SheetalMalhar, MahimaChoudhary
claimed to believe in PETA's philosophy, and thereby endorse the brand.

On the other hand, while some would understand that AmitabhBachchan would have never
used NavratanTel, the target audience that the brands wants to reach out to will be ready to
believe that he used the oil and his endorsement thereby creates an impact.

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BRAND IDENTITY PRISM BY KAPFERER

Several market research questionnaires over the years ask some basic question about a brand /
product. These questions may be like “if xyz brand was a person, who would you compare
him with”, “if xyz brand was a person, what would its age be”, “is XYZ brand aggressive,
warm, humble” etc

Thus these questions compare a brand to a person. The brand identity prism therefore applies
human traits to a brand to recognize what consumers actually think of the brand. The brand
identity prism, as the name suggests comes in the form a prism with 6 different traits at each
end of the prism.

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These 6 traits are

1) Physique – Physique is the basis of the brand. It may include product features, symbols
and attributes.A brand, first and foremost, should have ‘physique’ with physical
specifications and qualities. It is made of a combination of either salient objective features
(which immediately come to mind when the brand is quoted in a survey) or emerging ones.
Physical appearance is important but it is not all. Nevertheless, the first step in developing a
brand is to define its physical aspect: What is it concretely? What does it do? What does it
look like? The physical facet also comprises the brand’s prototype: the flagship product that
is representative of the brand’s qualities.

Example: Coca Cola in all its communications lays special emphasis on the ‘Coke Bottle’ and
how it looks. For markets where Coke entered for the first time, it always starts with the
traditional Coke bottle. In fact to no surprise, Coke cans also have a outline of the iconic coke
bottle. Therefore, the physical appearance of the brand remains intact.

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Also, colour of the product (say Black in the case of Coke), should be a part of the physique.
And if so, you can never imagine a colourless Coke. There could be variants of different
colours but the brand colour will never change.

2) Personality – Personality defines what personality will the brand assume if it were a
person. Personality includes character and attitude.A brand has a personality. By
communicating, it gradually builds up character. The way in which it speaks of its products
or services shows what kind of person it would be if it were human. This is a tough task to
implant a product as a human in the mind of consumers. Therefore, brands rope in famous
personalities to endorse the product. The brand and the celebrity being roped should sync in
personality therefore forming an important facet of Kapferer Brand Identity Prism.

Example: Mountain Dew, a drink from Pepsico, promises thrill and adventure and therefore
always loops in celebrities who are seen close to sports.

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3) Culture – Culture takes a holistic view of the organization, its origins and the values it
stands for.A Brand should have its own culture and brands with strong culture end up being
‘cult’. Both product and communication should reflect this culture. Brands targeting masses
focus on culture which is common to a wider chunk of population or vice versa. Late entrants
to the market prefer choosing a niche targeting a particular culture and evlove big in due
course of time.

Brand culture plays an essential role in Kapferer Brand Identity Prism and helps
differentiating brands. It indicates the ethos whose values are embodied in the products and
services of the brand.

Example: Royal Enfield motorcycles in India have a cult following as the brand has a very
strong culture. Though started slow but the brand is the fastest growing in the motorcycle
industry in India both in terms of following as well as market share.

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4) Relationship – The strength of the relationship between the brand and the customer. It
may represent beliefs and associations in the human [Link], brands are often at the
crux of transactions and exchanges between people. This is particularly true of brands in the
service sector and also of retailers. Once the consumers build a relationship with the brand,
the brand can demand consumers to do things which it believes in.

Example: Nike bears a Greek name that relates it to specific cultural values, to the Olympic
Games and to the glorification of the human body. Nike suggests also a peculiar relationship,
based on provocation: it encourages us to let loose (‘just do it’). Nike in India created
amazing TVC celebrating women athletes featuring DeepikaPadukone. Here the brand is in a
position to ask its consumers to ‘Just Do It’ because it has nurtured a relationship. The ad
campaign was named Da Da Ding.

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5) Reflection – What does the brand represent in the customers mind or rather the customer
mindset as reflected on the brand. A brand is a customer reflection. When asked for their
views on certain car brands, people immediately answer in terms of the brand’s perceived
client type: that’s a brand for young people! for fathers! for show-offs! for old folks! Because
its communication and its most striking products build up over time, a brand will always tend
to build a reflection or an image of the buyer or user which it seems to be addressing.

Example: A majority of apparel brands portray a model in the age group of not who they are
targeting, but the age group which the consumer thinks he/she belongs on buying that brand.
In reference to the below ad, only a minuscule percentage of people in the age group (as
shown in the image) will buy a Louis Vuitton suit. The consumer group will be much older
for the product, however all those consumers will perceive to look younger with an ad
featuring a young model (Jacey Elthalion in the below ad).

6) Self image– How does the customer see himself when compared to the brand. Example –
A customer might see himself capable or incapable of buying a BMW [Link], a brand

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speaks to our self-image. If reflection is the target’s outward mirror (they are …), self-image
is the target’s own internal mirror (I feel, I am …). Through our attitude towards certain
brands, we indeed develop a certain type of inner relationship with ourselves. And therefore,
these brands always communicate to push the limits.

Example: BMW India launched a campaign for people who see themselves driving a BMW,
no matter now or future. The campaign went on TV as Don’t Postpone Joy. Below is the
TVC asking to drive a BMW sooner.

KAPFERERPRISM OF PEPSI

Pepsi’s brand identity has transformed over the years, but primarily it has remained as a
youthful brand which empowers people to enjoy their youth. The external and internal
indicators of Brand Identity have been modified many times. Its logo, trademark, etc have
undergone many changes over time but the distinct identity of Pepsi has been maintained. We
also see a consistency in brand positioning for Pepsi as a Youth oriented brand. Its tagline in
India “YEH HAI YOUNGISTAN MERI JAAN” exemplifies that essence. Pepsi’s brand
identity using Kapferer’s Identity prism is as follows.

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Pepsi’s primary sources of brand equity are derived from its unique name with an American
connotation to it. It’s logo, a sphere with 3 different colors aids brand recall. The brand
endorsers over the years, starting from Shahrukh khan, Sachin Tendulkar to Ranbir Kapoor,
M.S Dhoni have been a major source of equity for the brand. The brand has always looked
for young faces in order to relate with its youth target audience . Pepsi also drives it equity
from its rival coke (which is the market leader with nearly 70% market share) as its only
global competitor primarily through creative advertising and communication strategy.

Another source of Pepsi’s Brand Equity is the huge consumer base of more than 200 million
across the world. Pepsico’s Indian Subsidiary is trying to follow on its footsteps and
is planning to tap the next 1 billion consumers at the bottom of the pyramid with its exclusive
offerings like Iron chusti and Gluco+ . Its innovative Campaigns are also a predominant
source of Pepsi’s Brand Equity in India.

Several campaigns like “Youngistaanka Wow” targeted at Youth and celebrating their
audacious self belief, thus bringing the brand closer to its Customers, ‘The Game’, a series of

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five gaming-based television films developed specially for the ongoing IPL season, “Change
the Game” and “First Ball kaKaptan” considering the cricket world cup and T-20 world cup
have been successful in leveraging the love for the game and reinforce the association of the
game with Pepsi. The CSR activities of the company also generate a lot of Brand equity, It’s
the only soft drink manufacturer with a positive water balance in India. Pepsi’s wide
Product Portfolio helps in increasing the depth and Breadth of Brand Awareness.

BRAND IDENTITY –A CASE STUDY ON PATANJALI PRODUCTS IN

INDIA

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To succeed, the first step is to position or ‘situate’ the brand in the target consumer’s mind in
such a way, that in his or her perception of the brand, it is distinctive and offers a persuasive
customer value better than its competitors. That’s how we develop a competitive edge. Brand
personality is the way a brand speaks and behaves. It means assigning human personality
traits/ characteristics to a brand so as to achieve the differentiation. These characteristics
signify brand behavior through both individuals representing the brand as well as through
advertising, packaging [Link]. When brand image or brand identity is expressed in terms of
human traits it is called brand identity or a personality identity.

It all started in early 2000 when yoga guru Baba Ram Dev openly criticized the MNC brands
since then , Yoga guru has turned out to be the worst disruptive force in two decades for the
fast moving consumer goods (FMCG) and his brand “Patanjali” is giving the large FMCG
companies a run for their money . Ram Dev not only became a television celebrity teaching
yoga but, is sitting on the fastest growing FMCG Company clocking a turnover close to Rs.
5000 Crore, more thanColgate,GlaxoSmithKline and Emami by this fiscal year. All
throughout this Ram Dev never hid his contempt for multinationals and vows to kill their
market. He even has been discouraged of starting anti Coke and Maggie drive.

MNC FMCG companies have always overcome such competitive threats from entrants, for
example Nirma and Chick shampoo to name a few. But this time the threat is stronger than
ever with Ramdev’s tying up with Big Bazaar and brand Patanjali pushed by growing the
fleet of 10,000 dedicated distributors along with the brand fitment in to health consciousness
taking place in Indian culture. It is clearly the fastest growing FMCG firm in country, with
the widest product portfolio.

Patanjali as a brand established with the combination of both brand as well as personality
Identity. In the beginning Baba Ram Dev has established himself as a Yoga Guru and posted
Yoga as a solution to many health challenges which are prevalent because of western
influence and food which made our lifestyle sedentary and unhealthy. He started out by
teaching yoga to Indian audience. First, Sanskar and then Ashta channel broadcasting his
Yoga Shivir’s

in various cities. He got a wide acceptance .He made the people realize the audience that
Indians have forgotten our old traditions and art forms –Yoga being one of them. Elders of

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the family related to this combination of spirituality and tradition started this practice in their
family too.

It’s been a decade now since, a phenomenon called Baba Ram Dev, arrived on the Indian
political and social scene, when all other Baba’s were minting good money by using
spiritualism in a self owned [Link] Ram Dev did not fall in the traditional category and
took the Yoga as a brand new level which probably his predecessors were unable to take.

During his own rise Baba ram dev has not limited his presence to Yoga and spiritualism only,
but he has extended it to politics and rise of PatanjaliAyurved Ltd. And is now challenging
India’s consumer space which is traditionally dominated by MNC’s such as Colgate, HUL,
P&G and certain large Indian Corporate like Dabur, Emami Etc.

Soon became “Story of every house”. It was easy to do and was not exhausting like those
running and gym exercises. It was a matter of few years when his influence could be seen in
all the directions of India. With the word of mouth publicity boosting the reach, many people
started claiming that they had been cured using Baba ji’s yoga techniques. Thus who
understands it better to build a BRAND PERSONALITY than Baba ram dev who is known
for popularizing Yoga among Indians through his mass yoga camps and in return became a
brand himself. That’s how he became a brand himself and then utilizes his own image to
launch his various products in the market to give tough competition to all FMCG Companies.

“An Indian FMCG started PatanjaliAyurved Ltd. in 2008 by Ram Dev and Acharya
Balkrishna located in Haridwar. This company has claimed revenue of Rs. 5000 Crore,
making the top names in game sweat.” People started waking up in the morning with voice of
Baba Ram Dev addressing thousands of people telecasted on TV. He would tell them how to
do yogic exercises and complementary tips to stay fit. Almost 10 years later, I found Baba
Ram Dev‘s presence in another form, Patanjali Ayurveda. And this is happening in a house
which had Pantene,Dove, Maggi and products of all the top FMCG brands in the World.

When Baba Ram Dev established his own identity in customers mind he then used the
following interconnected Strategies to establish his brand identity in the Indian market:

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Product Strategy : Beyond Patanjali’s flagship ayurvedic range of products , their strategy
is to simply create products that people are already used to using and not to try to innovate
with the core positioning of the product (think cereals , biscuits [Link]). Even the product names
are very much similar. This is very clever and significantly reduces the friction for the end
consumer, as this requires no change in their behavior if they opt for Patanjali products.

Brand Strategy : Alright , so you have got 2 or more products that offer the same benefits ,
now how do we get the people to pick our product (which is new to them)over something
they have already been using. Simple – Promise them something that they want but other
product doesn’t offer. So Patanjali says pick our product – it is the same product with no
harmful chemicals and with the herbal and organic essence. Plus by buying our products, you
are ensuring the money you spend stays in India. And the additional value propositions are
true for all their products and that is the reason they have branded every product as a Patanjali
product. While the existing FMCG brands , for the sake of the growth, are forced to find new
product categories and force change in consumer behavior through huge investments in mass
marketing, Patanjali can simply offer a “no chemicals and Swadeshi Alternative” to the
people who have got used to this new product.

Timing : The consumer awareness about the impact of the harmful chemicals, in what they
eat and use, has been growing rapidly and is an at all time high. So there couldn’t have been a
better time to launch a brand that offers “No harmful chemicals".

Loyal community: While one might be tempted to believe that Patanjali has grown
exponentially with in such a short span of time, the fact is that it is the result of around 20
years of rigorous hard work around Yoga and Ayurveda by Ram Dev. In those 20 years
Ramdev has built an extremely loyal community.

Own Distribution channel and low advertisement spend: The success story of hitting Rs.
5000 Crore turnover is pretty much driven by Baba ram dev’s image of Yoga Guru,
acceptance of Organic lifestyle by customers and the distribution network . It is worth noting
that most

FMCG companies have a large distribution network with warehouse,distributor, wholesalers

and retailer, while Patanjali products are dependent on 10,000 stores and now started building

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a traditional network mode. PatanjaliAyurved Ltd. Is unique in a sense that it is the only
FMCG Company built mainly on its own retail network. The company has 10,000 consumer
touch points as “Chikitsalaya” (Their own Dispensaries) and “Aarogya Kendra’s “(Health
Centers). These are operated by third parties as Patanjali exclusive [Link] sales of
Patanjali products were done by these stores until the company has built a more robust
distribution network to make its product available in general and modern trade. Patanjali is
now in process of starting mega marts – modern retail formats which would stock only
Patanjali products.

Pricing : Affordability factor of Patanjali products is one of the reasons for popularity. As
Baba Ram dev said, the purpose of Patanjali is Upkar and not Vyapar, Hence his products are
reasonably priced. Further such pricing strategy surely helped Patanjali products in
penetrating their roots in middle and lower middle class population, given that their products
are close substitute to the consumer goods produced by major FMCG Companies.

Swadeshi Advantage: The Government of India promoting in for greater economic activity
and ever expanding market, the ambitious plans of Patanjali are in consonance with both
Make Indian and Make in India, giving it a stronger moral pedestal to stand on as compared
to other FMCG MNC’s. Moreover, while big wigs like ITC and HUL primarily produce
western household products, Patanjali’s product line in mostly Ayurveda and with organic
essence, even its shampoos and tooth paste are made of natural ingredients hinting at a
healthier lifestyle. In short its product appeal to Indian nationalism and a sense of Swadeshi.
Even among the small number of Ayurveda products, Patanjali has a definite advantage given
the popular face of Baba Ram Dev.

Manufacturing facility and Food Park: On 5th January 2010, the world’s largest Food
Park opened 20 km from the holy city of Haridwar,Uttrakhand India. Patanjali Food and
Herbal Park is spread across -95 acres in first phase, and has generated direct employment for
7,000 people. The construction started in February 2009 and was completed in a record time
of less than one year. Construction of building of warehouse, R&D centers, variable humidity
stores, multi commodity coldstorages, pre cooling chambers and a ripening chamber.

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Brand Image: Last but not the least, over years he has built a brand and trust even among
his non followers. When it comes to choosing between the likes of Uniliver , P&G, Nestle
etc. and Baba Ram dev , most would trust the later more than the former.

CHAPTER 5 :SUMMARY OF FINDINGS

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In the above Case of Patanjali, it looks like other brands simply failed to read people’s
increasing awareness & concern for presence of harmful chemicals in products they use, or
simply choose to disregard it. Ram Dev has political leaning, but that does not by itself take
away the fact that he is serving the Nation by promoting products which are made in India,
and seek to revive the culture, the way of living of India and that the fact remains that
Patanjali seems to be involved more in making available Indian products at a low price than
becoming a business giant. That’s how “Patanjali and Baba ram dev has become a brand in
Indian market with the most specific strategy of first establishing himself as a brand
personality and then positioning the Patanjali product line on right time to right consumers
with Swadeshi Alternative.

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CHAPTER6: CONCLUSION

Conclusion:

Celebrities have always been the easiest way for a new product launch (consumer goods) and
will remain to do so in the near future on account of their mass appeal and a world full of star
stuck loyal fans. But the impact on the brand is much greater than just an advertisement
showing a celebrity.

We have seen that the correct choice of a celebrity can surely increase sales but when it
comes to long term loyalty and impact on the brand,the effect is yet somewhat debatable. In
the end, the product must deliver for the customer, no matter who endorses the product, if the
customer does not see himself getting value from his purchase, he will not buy it. But yes,
celebrities over time can influence the loyalty and make a person friendlier to a brand. Brand
and celebrities are here to stay for a long time and in this age of slick advertising and mass
media and unthinkable budgets, celebrities are having a field day charging huge amounts and
making more money than their mainstream professions. But then do they really care about the
brand? Or is it just the money? But the bottom line, celebrity endorsements are here to stay.

With the use of the celebrity, the effect is magnified so as to allow the consumer to equate the
personality and the brand together. Hence, whenever the consumer is watching the several
images of her favorite actress alone, it conjures up multiple impressions of her sipping the
XY brand of coffee, each time.

While speaking of celebrities, we should be very clear as to who this term connotes to and
the powers they carry. Fido Dido for 7-UP, the Amul Girl or Tony the Tiger for Kellogg's
Frosted Flakes are as much a celebrity as any breathing face. They reach their target
consumer, they move the product, and they carry the brand. That's what counts. Of course,
the gestation period is higher in the case of such creatives, but in the event of a hit, the
comparative risks are minimized. After all, they cannot get drunk, attract a controversy or

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commit a crime, as long as the management wants. In short, they are 'safe floaters' vis-à-vis
their unpredictable human counterparts.

Using a celebrity in advertising is not a simple thing and the success of this process depends
on several factors as discussed in the report. The careful selection of celebrity, matching the
target segment and brand values, should be inherently stressed upon. The advertisers can use
the Q Score,as discussed developed by a U.S. based marketing research agency, which
considers two factors - awareness and likeability, while evaluating the celebrity. Another
important factor is the flexibility with which the companies can go in for hedging the risks
associated in hiring a celebrity. They choose personalities from various fields or even
appealing to various consumer perceptions, so that they can minimize the damage in cases of
negative publicity due to any celebrity mistake. The cola brands spread their endorsements
across a wide 'variety' of celebrities such that even if one falls, the others are still holding the
fort.

In terms of the future, celebrity endorsements are here to stay. Their ability to cut across the
classes, caste barriers and apprehensions are simply too important to be sidelined. They have
been time-tested and delivered results repeatedly, given good hands. One could continue to
wonder if these celebrity-hawkers are worth the money and the tantrums, but in a world of
brand clutter and product muddle, celebrities seem to hit the nail on the head, more often than
not.

This study also brings forth the following insights:

• Celebrity endorsements do work in the Indian scenario. The level and the magnitude
of the effect vary with the celebrity and the product category but most endorsements have a
favourable impact.

• When one endorser endorses many brands, then the recall of the endorsement depends
entirely on the power of the brand. There are definitely some brands that go unnoticed and

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the recall for those stands is at a bare minimum. The company in that case can heighten the
advertising content because that catches a special place in the mind space of the consumer.

· It is not just the financial gains from the endorsements that matter to the celebrity.
They also look for the fit with the brand and what the endorsement might do to their
image.

· Professional performance of the endorser is important in deciding the success

of the endorsement.

· More than the bad performance in the professional field, it is the association of the
celebrity with a controversy or ill-behaviour that causes negative impact to the
endorsements.

· During the match fixing scandal in India, the commercials featuring Ajay Jadeja and
Mohammed Azharuddin were all taken off air so that they did not have a negative
effect on the brand.

· The celebrities' accessibility, regional appeal factors, popularity, attractiveness, belief

system are some other important platforms, which are raised when we study the
impact of celebrity endorsement on brands.

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