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

BY AKSHAY ARORA IMBA

AMITY SCHOOL OF BUSINESS Amity University, Uttar Pradesh

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

AKSHAY ARORA

CONTENTS
Acknowledgement

S.No.

Chapter Name Executive Summary

1 2 3 4 5 References

Introduction Literature Review Objective of Study Research Methodology Suggestion & Conclusion

EXECUTIVE SUMMARY

The project talks about the effectiveness of celebrity endorsement in building brands with special reference to FMCG sector. The first few pages talk about the introduction and objectives of the study. This is followed by details about FMCG Sector. This part consist of FMCG Introduction, Industry characteristics, Key Players, Salient Features and SWOT Analysis of the FMCG industry. Next comes the detail about celebrity endorsements in FMCG sector. This part consists of Introduction to Celebrity endorsements, why customers accept the celebrities, Uses of celebrity endorsements, Reasons why celebrity endorsement may not work, Benefits of celebrity advertisements and Theories of celebrity endorsement. Next comes the survey, the purpose of which is to find out uses of celebrity endorsement those translate into higher brand recall of FMCG Products and to understand the reason behind the attitudes of consumer towards all those FMCG Products which are endorsed by the celebrities. The last part consists of findings, conclusion and bibliography. The questionnaire has been annexed to the report.

CHAPTER 1
INTRODUCTION

The society that we live in can not only be called secular or democratic, it should be more appropriately termed as over-communicated these days. There are around 130 television channels in India broadcasting over 3 million television commercials each year in India. The media-explosion can thus be easily demonstrated. Moreover, people forget 80% of the information in just 24 hours! 'Celebrity Endorsement' for the brand is solution to it. Celebrities are involved in endorsing activities since late nineteenth century. The advent of celebrity endorsements in advertising in India began when Hindi film and TV stars as well as sportspersons began encroaching on a territory that was, until then, the exclusive domain of models. Celebrity endorsement is an important tool which is able to influence Indian consumer buying behavior. In India, celebrities are being increasingly used in marketing communication by marketers to lend personality to their products. With the visual media becoming more popular the use of celebrities in the TV media has increased. Celebrities create headlines. Their activities and movements are being closely watched and imitated. What they endorse sell like hot cakes. It is not surprising therefore that using celebrities in advertisements has become common practice. In India especially, it is not difficult to look for the reasons as to why companies are increasingly using celebrities. Indians always love their heroes and heroines. Consumers like advertisements more if they are admirers of the celebrities in the advertisements. When a consumer likes the celebrity in the advertisement, he or she is more likely to accept what the celebrity says about the advertised product and therefore will develop more positive feelings toward the advertisement and the brand itself. Famous

celebrities are able to attract attention and retain attention by their mere presence in the advertisements. In the midst of the advertisement clutter, the advertisements that celebrities endorse also achieve high recall rates. When people see their favored reference group members or celebrities in the advertisements, they pay more attention to them. Celebrities may also help reposition products. Products with sagging sales needs some boosting and in this, Indian celebrities can help by way of they endorsing the product concerned. Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. In the battle for the mind, you get the customer excited by showing him a known face, and an effective demand is created. In short it helps increase the recall value of the brand. Celebrity endorsements are today seen as a powerful mechanism for brand awareness and sales. A host of celebrities including film stars, cricket and lately tennis icons have been endorsing a range of products from FMCGs, automobiles to jewellery to apparel and watches. Several brands have also appointed celebrities as their brand ambassadors to continuously promote their brands and associate the brands with the excellence and attributes that the celebrities are associated with.

INTRODUCTION TO FMCG INDUSTRY

India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the economy with a total market size in excess of Rs 60,000 crore. This industry essentially comprises Consumer Non Durable (CND) products and caters to the everyday need of the population. Product Characteristics Products belonging to the FMCG segment generally have the following characteristics:

They are used at least once a month They are used directly by the end-consumer They are non-durable They are sold in packaged form They are branded

India - a large consumer goods spender An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. Change in Indian consumer profile 7

Consumer profile

1999 Population (millions) Population <25 yrs of age Urbanization (%) 846 480 26

2001 1,012 546 28

2006 1,087 565 31

Source: Statistical outline of India

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

Industry Segments The main segments of the FMCG sector are: Personal Care: oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe care. Major companies active in this segment include Hindustan Lever; Godrej Soaps, ColgatePalmolive, Marico, Dabur and Procter & Gamble.

Household Care: fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants, metal polish and furniture polish). Major companies active in this segment include Hindustan Lever, Nirma and Reckitt & Colman.

Branded and Packaged Food and Beverages: health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc. Major companies active in this segment include Hindustan Lever, Nestle, Cadbury and Dabur.

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

FMCG Industry Characteristics

Branding: Creating strong brands is important for FMCG companies and they devote considerable money and effort in developing bands. With differentiation on functional attributes being difficult to achieve in this competitive market, branding results in consumer loyalty and sales growth. Distribution Network: Given the fragmented nature of the Indian retailing industry and the problems of infrastructure, FMCG companies need to develop extensive distribution networks to achieve a high level of penetration in both the urban and rural markets. Once they are able to create a strong distribution network, it gives them significant advantages over their competitors. Contract manufacturing: As FMCG companies concentrate on brand building, product development and creating distribution networks, they are at the same time outsourcing their production requirements to third party manufacturers. Moreover, with several items reserved for the small-scale industry and with these SSI units enjoying tax incentives, the contractmanufacturing route has grown in importance and popularity. Large unorganized sector : The unorganised sector has a presence in most product categories of the FMCG sector. Small companies from this sector have used their locational advantages and regional presence to reach out to remote areas where large consumer products have only limited presence. Their low cost structure also gives them an advantage.

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FMCG Key Players

There is a strong MNC presence in the Indian FMCG market and out of the top 10 FMCG companies; four are multinationals while two others have significant MNC shareholdings. MAJOR PLAYERS Hindustan Lever Ltd. I T C Ltd. Nirma Ltd. Nestle India Ltd. Britannia Industries Ltd. Colgate-Palmolive (India) Ltd Godfrey Phillips India Ltd. Dabur India Ltd. Smithkline Beecham Consumer Healthcare Ltd Godrej Soaps Ltd. Marico Industries Ltd Cadbury India Ltd Procter & Gamble Hygiene & Health Care Ltd. Reckitt & Colman Of India Ltd I S P L Industries Ltd.

Among the major companies, Hindustan Lever has a strong presence in the food, personal care and household care (detergents) sectors; ITC is the market leader in cigarettes; Nirma

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has a strong presence in the detergent market; Nestle and Britannia are active in the food sector and Colgate has a strong presence in the oral care segment.

FMCG Salient Features

The FMCG sector is a key component of Indias GDP and is a significant direct and indirect employer. It is the fourth largest sector in the economy and is responsible for five per cent of total factory employment in the country. The sector also creates employment for three million people in downstream activities, much of which is disbursed in small towns and rural India. Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in reality the sector meets the every day needs of the masses, across the country. Low-priced products contribute the majority of the sales volume and lower income and lower middleincome groups account for over 60 per cent of the sectors sales. Moreover, rural markets account for 56 per cent of total domestic FMCG demand and FMCG outlets reach more villages than any other basic facility such as primary schools or bus facilities. The FMCG sector has several other salient features. It has strong links with agriculture and 71 per cent of sales come from agro-based products; it is a significant value creator with a market capitalisation second only to the IT sector and it is a key contributor to the exchequer.

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CELEBRITY ENDORSEMENTS IN FMCG SECTOR

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Celebrity Endorsement: Introduction

In the world of advertising and marketing communication, celebrity endorsement has grown in gigantic leaps to reach a level where it has spawned a separate industry in itself. Celebrity Endorsement is a rapidly growing industry that is, by conservative estimates, worth more than Rs. 150 Crore today. Today, there is a regrettable shift in the emphasis of the advertisement moving from highlighting the core promise of the brand to exhibiting the charisma of the brand ambassador. Celebrity endorsement gives a brand an instant value and personality package which otherwise would have taken years and millions of dollars - to establish, with far less guarantee of results. A celebrity does help in increasing brand sales, but only if he/she is selected carefully and used effectively to add value to a brand. There must be a relevant and recognizable match of values of the celebrity and the brand as perceived by consumers. The four primary endorsers types are: Celebrities Experts Typical satisfied customers Announcers.

Celebrity endorsements of brands

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Brand- a brand is a name, a sign, or a symbol such as a trademark or logo that identifies a product or service and differentiate it from similar products or services. It is different from a product, in that the product performs a task for the user while the brand adds value and covers the source of the product protecting the customer, producer from competitors who would attempt to provide products that seem to be identical. Marketers use a whole lot of tactics to draw the consumers attention to their brand - one of these is getting celebrities to endorse the products. Who are celebrities? Popular personalities who enjoy public recognition amongst a huge slice of a particular segment of the population or the entire population are celebrities. Invariably, their very presence conveys the message Im rich, famous, talented, beautiful, intelligent and you aspire to be like me. I actually think this product is great. Why dont you buy it and become like me? The product is made attractive by the association with the person whom customers want to be like and admire and it is this association that caused the compulsive desire to purchase and use it. A celebrity may be the embodiment of the companys image. When celebrities endorse a brand, customers become aware of the product/service such that they totally believe and trust that the purchases will meet their requirements and expectations but all this provided there is a proper fit between the chosen celebrity and the brand. Celebrities give the perception of quality products and services. Once quality branding is in place, brand extensions are possible i.e. customers might easily be persuaded to try their other products and services. Another factor that requires a thought is the media to be used to advertise the product/service. Celebrities have the advantage of publicity and the attention getting power required for any successful advertising campaign. Most celebrities also enjoy enormous goodwill. The associations made with them also help the product they are endorsing. The mind as a defence

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against the volume of todays communications screens and rejects much of the information offered to it. In general the mind accepts only that which matches prior knowledge or experience. In the midst of todays cluttering, it becomes all the more important for the advertiser to capture the attention of the consumer. Instinctive changing of channels is prevented if the first few seconds of the advertisement manage to grip the audiences attention. Celebrity endorsers is that s/he can provide testimony for a product or service, particularly when the product has contributed to their celebrity. The relationship can increase a consumer's belief and trust in the product and its benefits. The more familiar an endorser, the more likely consumers are to buy the endorsed product. Forms of celebrity endorsement: A celebrity can endorse brands in different ways based on the purpose, the advertisement media and the appeal to be generated. The product could be commercial ones or noncommercial ones (social advertising). Following types of endorsement forms have been identified to be heavily in use at present: As spokespersons, e.g., Amitabh Bachchan in KBC. In print and electronic advertisements, e.g., Shah Rukh Khan in Omega and Pepsi. In outdoor media like hoardings, e.g., Aishwarya Rai in Lux in some parts of North India. As brand ambassadors, e.g., Fardeen Khan in Provogue, and finally The use of brands by celebrities in movies, e.g., Hero Cycles, Paas Paas and Coke in Yaadein.

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Why customers accept the celebrities

Messages delivered by well-known celebrities achieve a high degree of attention and recall for consumers. Celebrity Expertise perceived relevant Expertise is the knowledge that the communicator seems to possess to support the claims made in the advertisements. A wellknown face would obviously speak for more expertise than an ordinary one. Celebrities are perceived Trustworthy Trustworthiness refers to the customers confidence in the source for providing information in an objective and honest manner. People are more likely to trust the quality of a trustworthy celeb endorsed brand over a nonendorsed one. Ambitious psyche: People ape the celebrities in their day-to-day activities and many even dream to become like a celebrity some day. Some know they wouldnt become as good as the celebrities but sharing common belongings makes them feel better. Physical Attraction: Consumers tend to perform positive stereotypes about such people. Physically attractive people are more successful in changing beliefs than non-attractive people.

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Uses of Celebrity Endorsements

Establishes Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience- this is especially true in case of new products.

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

Associative Benefit: A celebritys preference for a brand gives out a persuasive message - because the celebrity is benefiting from the brand, the consumer will also benefit.

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

Demographic Connect: Different stars appeal differently to various demographic segments (age, gender, class, geography etc.).

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

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Reasons why celebrity endorsements may not work

Improper positioning:

Associating with a star, however big he or she may be, in itself does not guarantee sales. The most it can do is generate interest in the product or create a buzz around it. Brand-celebrity disconnect: If the celebrity used represents values that conflict with the brand values and positioning, the advertising will create a conflict in the minds of the target audience who may reject the proposition. Clutter Flutter:

In recent times, there has been such a deluge of celebrity endorsements that it has led to the very clutter that it aimed to break. This over-exposure can be bad for the brand. We seem to have just 2 celebrities in a country of 1 billion people which is a terrible tragedy. Consequently, each celebrity is called upon to push maybe a dozen brands or so. Which is great for the celebrity but I think it is pretty daft for the brand because the impact of the celebrity reduces as the number of brands he endorses increases. Unfortunately in India, we have too many brands chasing too few celebrities. Dissatisfaction with product quality/performance You cannot sell an ordinary product just by making a celebrity endorse it. In fact, if anything, the product will fail faster because the presence of the celebrity will create a buzz and more

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people

will

know

about

the

ordinariness

of

the

product.

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

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Benefits of celebrity advertising -- the four Qs:

Quick saliency:

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

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

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

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

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Theories of Celebrity Endorsement

Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. In the battle for the mind, you get the customer excited by showing him a known face, and an effective demand is created. In short it helps increase the recall value of the brand.. Source Credibility Theory: According to this theory acceptance of the message depends on 'Expertness' and Trustworthiness' of the source. Expertness is defined as the perceived ability of the source to make valid assertions. Trustworthiness is defined as the perceived willingness of the source to make valid assertions. Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product. Source Attractiveness Theory: According to this theory which is based on social psychological research, the acceptance of the message depends on familiarity, likeability and similarity. Familiarity is the audience's knowledge of the source through exposure; likeability is the affection for the source's physical appearance and behavior while similarity is the resemblance between source and receiver. This theory explains the message acceptance in two ways: Identification and Conditioning. Identification is when the receiver or the target audience of the communication

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begins to identify with the source's attractiveness, and hence tends to accept his opinions, beliefs, habits, attitudes etc.

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

I. Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed by age, gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a set of meanings in their image. For example Preity Zinta can be seen as a lively, charming, bubbly, witty and enthusiastic.

II. Meaning Transfer: This stage transfers those meanings to the product. When skillfully portrayed, celebrities can communicate this image more powerfully than lay endorsers. III. Meaning Capture: This assumes that consumers purchase products not merely for their functional value but also for their cultural and symbolic value. The theory says that consumers buy the endorsed product with the intention of capturing some of the desirable meanings with which celebrities have passed on to the product. This is more eminent in lifestyle products like clothes, perfumes, cell phones etc.

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CHAPTER 2
Literature Review:
1. Article: Selecting Celebrity Endorsers: The Practitioner's Perspective Author: B. Zafer Erdogan, Michael J. Baker, Stephen Tagg Summary: There are several reasons for such extensive use of celebrities. Because of their high profile, celebrities may help advertisements stand out from surrounding clutter, thus improving their communicative ability (Atkin and Block, 1983; Sherman, 1985). Celebrities may also generate extensive PR leverage for brands. For example, when Revlon launched the "Won't kiss off test" for its Colorstay lipsticks in 1994 with Cindy Crawford kissing reporters, the campaign featured on almost every major news channel 1. Article: Selecting Celebrity Endorsers: The Practitioner's Perspective. and equally widely in the press. Although research findings are equivocal about the ability of celebrities to generate actual purchase behavior, positive impact on economic returns of sponsoring companies.

2. Article: Celebrities Impact on Branding Author: Centre on Global Brand Leadership Columbia Business School (Christina Schlecht)

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Summary: Article addresses a popular method of marketing communication, the use of celebrity spokesperson in advertising to endorse brand a brief assessment of the current market situation indicates, the celebrity endorsement advertising strategies can under the right circumstances indeed justify the high cost associated with this form of advertising. However as several failure show, it is essential for the advertiser to be aware of the complex process underlying celebrity endorsement by gaining an understanding of the described concept of source credibility & attractiveness, match up hypothesis, meaning transfer model, multiple products & celebrity endorsement while these concepts can help to answer the questions if & when celebrity advertisement investment pay-off, it has to be global of further research efforts to develop an extensive, consistent & user friendly tool to avoid arbitrary decision & enhance the strategic character of celebrity sponsorship decision 3. Article: Celebrity Branding: not as glamorous as it looks Author: Chris Grannell and Ruwan Jayawardena. Summary: Celebrities are brands. They are defined by what people think about them, they have a competitive positioning relative to other celebrities. Unlike the people behind them, celebrities exist in the minds of their audience in precisely the same way that corporate or FMCG brands do. Fans of celebrities get excited when they see them; they want their endorsement; they often feel some kind of affinity to what a particular celebrity stands for. When a celebrity becomes the face of a charity, or lends his name to another product or service, customers of that celebrity show rising levels of interest in the associated organization, product or offer. Some of the image of the celebrity is transferred to the third party. Conversely, a rising celebrity can align himself with other celebrities by use of PR, association or photographic imagery; and of course he can directly communicate values through use of language or behavior. We know that just like corporate brand-owners, celebrity brand-owners employ image consultants and PR agencies. Sometimes they indulge in brand extension and they can even have brand architectures. In almost all respects, celebrities function just like the brands of businesses and products that usually grace the pages of this website.

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4. Article: The naked truth of celebrity endorsement Author: Angela Byrne, Maureen Whitehead, Steven Breen. Summary: This case study examines the use of celebrity endorsement in the formation of the retail image of leading European grocery distribution group J. Sainsbury, in particular, the process of transference of celebrity images to the products image. The incorporation of Jamie Oliver (well known as television celebrity The Naked Chef) into the promotions of one of Britains leading grocery chains involves a high profile campaign that has been adopted in order to imbue the companys products with an image of quality. The success of the campaign has been replicated in New Zealand by another grocery retail giant, Foodstuffs, who have also adopted The Naked Chef to endorse their products. The case draws on field research with consumers and key informant interviews with advertising agency personnel who identified the criterion for the choice of Jamie Oliver. The extent to which the market place recognises and consumers associate themselves with the image Jamie projects as a celebrity endorser for J. Sainsbury is explored

5. Article: The wealth effects associated with a celebrity endorser: The Michael Jordan phenomenon Author: Lynette Knowles Mathur, Ike Mathur, Nanda Rangan. Summary: On March 9, 1995, rumors began to circulate on Wall Street that a minor league baseball player was going to try his luck at shooting hoops for the Chicago Bulls of the National Basketball Association (NBA). Normally, rumors of this nature are of dubious significance for the sports teams involved. They are even of less significance for firms that seek to establish and maintain their presence in the marketplace through the use of celebrity endorsements for their products. In this particular instance, however, the enthusiasm expressed by the Bulls' players at the prospects of having this minor league baseball player on the court with them was outdone by the investors in a select group of firms. This minor

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league baseball player was none other than Michael Jordan, whom many would consider to be among the most talented basketball players of all time.

FAST MOVING CONSUMER GOODS SECTOR

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CHAPTER 3

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OBJECTIVE OF STUDY

To find out the effectiveness of celebrity endorsement in building brands with special reference to FMCG sector in the South/west Delhi within the age group of 25-35 (young adults) Sub- Objectives: To find out uses of celebrity endorsement those translate into higher brand recall of FMCG Products. To understand the reason behind the attitudes of consumer towards all those FMCG Products which are endorsed by the celebrities

CHAPTER 4
SUGGESTION & CONCLUSION

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Celebrities should be used for FMCGS because they ensure attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand more noticeable.

Celebrity endorsement will be more effective when used consistently over time to increase the strength of the link between the celebrity and endorsed brand. When selecting a celebrity endorser for FMCG, choose a celebrity who is not already strongly associated with another product. Celebrity endorser can be used to effectively reinforce and/or create an image for a FMCG product. Celebrity endorsement can be more effective for less familiar brands and when consumers have limited knowledge about the product. The issue of matching the values of the celebrity with the brand values is also very important, i.e. getting the right celebrity to endorse the right brand. Consumers perceive the brand as having superior quality because it has been endorsed by a credible source. This makes endorsement as one of the indictors of quality for any brand

The over popularity of the celebrity sometimes overshadows the brand. If the celebrity is involved in multiple endorsements, it tends to create confusion among consumers and hence negatively affects the perception of the advertisement and the brand so this should be avoided.

Celebrity endorsement really work because the qualities associated with the endorser are associated with the brand and the brand therefore remains at the top of the consumer's mind. However one needs to realize that the impact of an endorser cannot be sustainable in all product categories and in all the stages of brand life cycles. It really depends upon the type of 30

product. If it is a 'functional brand', then the product itself is the hero. Here any celebrity association with the brand without corresponding performance of the product will not be sustainable. While incase of 'image brands', like the categories of soaps, soft drinks, cigarettes etc., where it is difficult to distinguish between the products, celebrity endorsements help to distinguish between the brands at an emotional level.

People would be more likely to buy a brand that was endorsed by their favorite celebrity. Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand more noticeable. A celebrity's preference for a brand gives out a persuasive message and hence, because the celebrity is benefiting from the brand, the consumer will also benefit. There is a demographic and psychographic connection between the stars and their fans. Demographic connection establishes that different stars appeal differently to various demographic segments i.e. age, gender, class, geography etc., while psychographic connection establishes that stars are loved and adored by their fans.

Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. Another invaluable benefit from celebrity endorsements is the public relation opportunities.

Whether Celebrity endorsement has a positive or a negative impact on the brand is a debate that is open to interpretation. But till the time the corporate world continues to foot fancy bills

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of celebrity endorsers and till consumers continue to be in awe of the stars, the party is not likely to break up.

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REFERENCES
Books: Beri G.C: Marketing Research Tata Mc Graw-Hill Publishing company Ltd. Third Edition, 2003. Schiffman & Kanuk (1997) Consumer Behaviour, 6th Eddition, PHI, pp.215-223. Marketing Management Philip Kotler 12e

Web Sites:

www.thedayaftertomorrow.com www.synovate.com www.magindia.com www.blonnet.com www.rediff.com article by Country head, O&M India indiainfoline.com article 'Celebrity Endorsements in brands Consumers' Attitude and Intentions", Journal of Advertisement Research, Vol 20, 535-547

Article: The naked truth of celebrity endorsement Author: Angela Byrne, Maureen Whitehead, Steven Breen.

Article: Celebrity Branding: not as glamorous as it looks

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Author: Chris Grannell and Ruwan Jayawardena.

Article: Celebrities Impact on Branding Author: Centre on Global Brand Leadership Columbia Business School (Christina Schlecht)

Article: Selecting Celebrity Endorsers: The Practitioner's Perspective

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

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