NESTLE(BUILDING POWER BRANDS THROUGH EFFECTIVE COMMUNICATIONS

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BUILDING POWER BRANDS THROUGH EFFECTIVE COMMUNICATIONS

A CASE OF NESTLE INDIA

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA, NOIDA

Certificate

This is to certify that the Dissertation work done on ³Building Power Brands Through Effective Communications´ Submitted to International School of Business & Media, Noida by ........................ in partial fulfillment of the requirement for the award of degree of PG Diploma in Business Management, is a bonafide work carried out by her under my supervision and guidance. This work has not been submitted anywhere else for any other diploma.

Date

ACKNOWLEDGEMENT

I wish to extend my thanks to Mr. ............................, my Project guide without whom I would have been unable to make this project possible. His tremendous knowledge and practical suggestions helped me to understand the various aspects and complexities of topic and at the same time enhanced my practical knowledge to accomplish the task that was assigned to me.

ABSTRACT Nestlé has been a leading food manufacturer and major purchaser of agricultural raw materials for over 130 years. Food and agriculture are an integral part of the social cultural, economic and political context of every community. Today, Nestlé is the world¶s largest and most diversified food company, with nearly 500 factories in 77 countries, producing healthy, enjoyable food products for every stage of life. The present study has been carried out with the objective of studying the profile of Nestle, their brand exercises, the use of celebrity endorsement as a tool of brand building by firms and the consumers perception about the brand image of Nestle The research was carried out with the help of primary as well as secondary sources of data Primary Data has been collected through consumer survey in Delhi, among the existing and potential consumers of Nestle Products. However secondary dats has been collected through Books, Periodicals and Journals in the field of marketing, branding and Newspapers and the Internet. The only limitation in this survey was that I could not conduct a survey on a big scale, due to the time constraint. After all the literature and market research, and analysis I wish to conclude that the philosophy behind the branding strategy of Nestle

has been to develop the brand so as to attract and retain the consumers. The branding strategies adopted have resulted in building a sustainable and differential advantage over its competitors.

TABLE OF CONTENTS

1. INTRODUCTION ‡ About the company 2. RESEARCH METHODOLOGY ‡ Data sources ‡ Research objective ‡ Scope of the study 3. COMPANY PROFILE ‡ Market Presence ‡ Brand exercise in Nestle ‡ Range of products and services ‡ Celebrity Endorsements in Branding exercises ‡ SWOT Analysis 4. DATA ANALYSIS AND INTERPRETATION 5. CONCLUSIONS & IMPLICATION 6. RECOMMENDATIONS 7. ANNEXURE 8. BIBLIOGRAPHY / REFERENCES INTRODUCTION The business environment has changed dramatically in the last decade. The Internet has empowered customers. Competition has become global, and Indian companies have arrived as players on the global stage. Companies now have to evolve from a µcommand and control¶ to a µconnect and collaborate¶ mindset that relies on customer engagement, dialogue, and collaboration. The fundamental concepts of, how brands are built and how marketers relate with customers are

Today it's commonly accepted that strong brands accelerate business performance." A brand is a complex entity in the mind of a customer. Brand identity is the fully expressed description of a brand and how it positioned in the marketplace. A good brand communicates a clear message about what it stands for and how it differs from competitors. too often. functionality. ease of use. "A company's brand is the primary source of its competitive advantage and a valuable strategic asset.being turned on their heads." said Aaker. popularity. who is generally regarded as the world's leading academic authority on branding strategy. managers. It also creates an imperative inside the company that connects employees. "Yet. or. and shareholders. the brand message to customers is weak. reputation and customer loyalty over the long-term.A. advertising has the power to shape a company¶s brand image in a way that positively affects the company¶s revenue. . worst of all. with the power to lift companies. Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. clear image that matters to customers and truly differentiates them from the rest. Brand image. irrelevant. Nestlé India : Nestlé India is a subsidiary of Nestlé S. A strong brand presence does more than just resonate with consumers. is a customer¶s internal emotional reaction to the expression of a brand identity. "The challenge for all brands is that they have a distinct. of Switzerland. Each touch point within a company¶s customers¶ experience should seek to reinforce this same message. With six factories and a large number of co-packers. indistinguishable from competitor offerings. The brand image is comprised of the products' attractiveness. It stems from the product positioning and customers understand and internalize the brand through its consistent use. confused. meanwhile. and overall value (perceived or real) When combined with a well-conceived brand positioning strategy. their products and services from obscurity or commodity status to positions of preeminence in their marketplaces.

integrity and fairness in all aspects of its business and expects the same in its relationships. Respect different traditions ‡ Since Nestlé activities in Switzerland. Nestlé¶s regular and substantial investments established that it was here to stay. and to be a highly . economic and political context of every community. Nestlé India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand. the Samalkha factory (Haryana). political and cultural traditions of all countries in which the products are produced and sold. Food and agriculture are an integral part of the social cultural. its country of origin. became operational in 1989.The Company insists on honesty. BUSINESS STRATEGIES WHICH MAKE HUGE BRAND VALUE OF NESTLE ‡ Nestlé has been a leading food manufacturer and major purchaser of agricultural raw materials for over 130 years. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. in 1993 and in 1995 and 1997. *This pictorial representation does not purport to be the political map of India. Nestlé commissioned two factories in Goa at Ponda and Bicholim respectively. The Nanjangud factory (Karnataka). Beginning with its first investment in Moga in 1961. Nestlé learned very early to respect the social. In 1967. account for less than 2% of its global turnover. Nestlé set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea.

always and everywhere ‡ Quality is the cornerstone of the success of the Nestlé Company. The interests of our consumers and customers always come first. Quality . with nearly 500 factories in 77 countries. and are intended to complement applicable legislation and international recommendations. which define standards of behaviour for all companies in the Nestlé Group. both internally and externally with the rest of the world. this applies first and foremost to the quality of the products. The world¶s biggest food company ‡ Today. but it also applies to the way in which we work. enjoyable food products for every stage of life. This trust comes from a quality image that has been built up for over a century. Every day. Business Principles translated into 40 different languages ‡ Secondly.decentralized "people and products" oriented company rather than a systems centered organization. firstly. and quality has a high position of priority in everyone¶s daily work.Everywhere and Always ‡ Quality in everything we do and constant improvements are key elements for all of those who work at Nestlé. Nestlé is the world¶s largest and most diversified food company. That¶s why product . and the world-wide economies in which we operate. by taking a long term approach to strategic decision making which recognises the interests of our consumers. our responsibilities and values are reflected by the commitment of management and employees at all levels. to the following specific Corporate Business Principles. Quality . ‡ We have the confidence of our customers and consumers simply for the reason that we work actively with quality issues at all levels in our business. millions of people all over the world show their trust in the company by choosing Nestlé products. producing healthy. business partners. shareholders. Consumer focus ‡ Nestlé carries out its global social responsibility. Obviously.

This covers the entire cycle from primary produce. should satisfy the expectations that our customers and consumers have of us. And preferably exceed those expectations too. creation of waste and use of packaging material is planned and monitored meticulously. High standards ‡ Consumers should be able to safely enjoy our products. which covers the entire chain of values µfrom the earth to the table¶. storage. manufacture. In addition to this are our own standards and requirements. Quality agreements ‡ Quality embraces the entire chain from primary produce to the finished product used by the consumer. But we do not rest there. which are often far more stringent than those of the authorities. All this is part of our continuing work to make our company even better. something that can only be achieved when everyone cooperates. Quality is regarded as a common concern. We therefore carry out regular reviews in our own factories and in those of our suppliers. packaging materials. . and our products should always comply with current legislation and regulations. Our products. marketing and distribution to waste disposal. However.safety takes top priority. and the service we provide. The environment : ‡ One of Nestlé¶s guiding principles is to procure and manufacture local products in a manner that ensures sustainable development. and we have established long-term quality agreements with many of our partners. we do not rely on technology and systems alone to guarantee our quality. Quality by co-operation ‡ The Nestlé Quality System (NQS) affords an important ambit for our quality work. use of water. The effect of the business on the environment with respect to effluents.

a follow up and step by . the responses received were be grouped together. and a graphical presentation and analysis has been made for every set of questions. This is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons and analysis. The qualitative approach applies to both. METHOD OF DATA COLLECTION & ANALYSIS The data. While as in case of quantitative approach. I have chosen Nestle as the target company for my research study. NATURE OF DATA: I have made use of both. Once the interview was over. an extensive use has been made of the literature available to carry out a detail research on the nature of the problem. In considering an oral interview of such a nature. the primary sources and the secondary sources of data in eliciting information. descriptive and inductive forms of research. These sources are inadvertently expected to yield more qualitative data and results. has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. PRIMARY DATA: The primary source of data involves oral interviews and questionnaires. SAMPLE SIZE: 30 SURVEY AREA: Aligarh PRIMARY DATA COLLECTION METHODS INTERVIEWS: I have conducted oral interviews with customers of Nestle. I have conducted a graphical analysis based on the responses received from the persons questioned and interviewed.RESEARCH METHODOLOGY RESEARCH METHODOLOGY I have carried out a research which is both qualitative and quantitative in its support. after collection.

step approach was adopted in getting through the interviewees. customer satisfaction. RESEARCH OBJECTIVES To study the profile of Nestle brandings  & strategies To study the brand exercises of Nestle. SECONDARY DATA COLLECTION METHOD The secondary source of data includes relevant literature including periodicals and journal articles in the areas of Marketing. due to the time constraint. with particular emphasis on  Maggi To study how firms use celebrity endorsement as a tool of brand  building To study the consumers perception about the brand image of  Nestle . The oral interview involved a set of well thought out questions that were asked and the responses there on noted as a basis for analysis. Subsequently a graphical analysis has been made based on the responses received from the persons questioned and interviewed. LIMITATIONS The only limitation in this survey was that I could not conduct a survey on a big scale.

They remove the shells and get into the core of the processes to understand the real value of the brand. ‡ The Social Dimension . This is so as the consumers buy the brand not only for the intrinsic values associated with it but also because of the promise that branding makes to the consumer«. They want to know more about the details of the brand.the promise of delivering values beyond expectation. namely: Figure : dimensions of effective branding ‡ The Functional Dimension The functional dimension concerns the perception of benefit of the product or service associated with the brand. Hence such a strategy should be framed that makes the consumers involvement higher. Effective Branding It is found that effective branding involves working on four important dimensions. It is a well known fact that the customers demand experiences instead of products or services.Branding strategies: The formulation of branding strategies starts from the building a sustainable brand for the company.Experiential marketing: the first component of branding strategy is the experiential marketing. This creates a challenge to the organizations to find new ways to involve the customers in the value chain so that they themselves can decide the product features and uniqueness that they expect from the brand. A framework is suggested below for the formulation of a brand strategy: Figure: framework for formulation of a brand strategy 1. 2.

. Branding increasingly nowadays is moving into Internet-based applications. offers a powerful strategic advantage. A brand that reveals authenticity.The Social Dimension concern the ability to create identification with the group. 2. Novel Brand Strategies ‡ Customers Own the Brand It should always be kept in mind that it is the consumers who own the brand. Figure : novel brand strategies Product Service ‡ A sale should never be considered the ending of a transaction but the beginning of a beautiful relationship. ‡ Buzz Marketing: the development in the technology used in the country has lead to the increased importance paid to the concept of buzz marketing. ‡ The Spiritual Dimension The Spiritual Dimension is the perception of global or local responsibility ‡ The Mental Dimension The Mental Dimension is the ability to support the individual mentally. This is so as in a country like India. values and humanity's drive toward conscientiousness. ‡ Religious Branding since it is considered that religion has the power to bind people and unify them under one common ideal an effective brand strategy must take into account this powerful force which plays on the minds of the Indian consumers. Customer service basically creates a positive effect on the minds of the customer and this positive influence on the mind of the consumer makes them more open to new ideas and reduces their skeptism towards the brand.

‡ When the marginal costs of bundling are low. It also believes in maintaining regular contact with our consumers. Today.4. In order to succeed in the long run. ‡ Consumers appreciate the resulting simplification of the purchase decision and benefit from the joint performance of the combined product. Product bundling is most suitable for high volume and high margin products. ‡ There are economies of scope in distribution. PRODUCT BUNDLING: An Important Branding Strategy Product Bundling is a marketing strategy that involves offering several products for sale as one combined product. The Nestlé Seal of Guarantee is a symbol of this commitment. This will lead to creation of a better relationship between the company and its consumer. ‡ When customer acquisition costs are high BRAND EXERCICES IN NESTLE Consumer Services At Nestlé. tasty and affordable. the company is committed to offering consumers highquality food products that are safe. It is most successful under the following situations: ‡ There are economies of scale in production. ‡ When production set-up costs are high. the Consumer Relationship Panel with the words "Talk to Nestlé" expresses the same commitment. When Henri Nestlé prepared his first boxes of infant formula for sale. Nestle has a worldwide Nestlé Consumer Services network devoted to . Feedback and Improvements It is very crucial to have the consumer participation. he put his address on the packages so people would know where to go if they had questions. it is crucial to allow the consumer participation at an intermediary stage of developing the product.

BRANDS Milk Products & Nutrition: From shelf-stable solution to chilled dairy. The people have expertise in a wide range of areas such as nutrition. efficient and high quality service that consumers expect from Nestlé.caring for consumers. Beverages: Drink to an active life with Nestlé Beverages. food science. They provide the prompt. . food safety and culinary expertise. .

Prepared Dishes & Cooking Aids: Preparing well balanced meals is a snap with Nestlé. . Chocolates & Confectionery: Delighting the senses with a range of tastes and textures.

. Buitoni. the authentic Italian brand. frozen meals. BRAND MAGGI Maggi merged with Nestlé in 1947. The Society commissioned Julius Maggi. a miller with a reputation as an inventive and capable businessman. Julius Michael Johannes Maggi. to create a vegetable food product that would be quick to prepare and easy to digest.PREPARED FOODS Convenience foods ² packaged soups. but bouillon cubes. sauces and flavorings. became part of the Nestlé Group in 1988 Maggi Known worldwide for innovation and quality. Maggi is a leading culinary brand and part of the Nestlé family of fine foods and beverages. the company¶s founder. With the Industrial Revolution came factory jobs for women and less time to prepare meals. prepared sauces and flavorings ²date back more than a century. The results ² two instant pea soups and an instant bean soup ² helped launch one of the best known brands in the history of the food industry. The problem was so widespread that it became the object of intense study in 1882 by the Swiss Public Welfare Society. By the turn of the century. was born on . including an increase in the consumption of vegetables. which has been producing pasta and sauces in Italy since 1827. frozen meals. Maggi offers a whole range of products. such as packaged soups. which offered a series of recommendations. Maggi & Company was producing not only powdered soups. prepared sauces and flavorings.

preferring to eat traditional Indian dishes rather than canned or packaged food. which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. In fact. However. Maggi & Company was producing not only powdered soups. Switzerland. NIL conducted a research. At that time. Indian consumers were rather conservative in their food habits. sauces and flavorings. this approach failed as was evident from the fact that the sales of Maggi noodles were not picking up despite heavy media advertising. the company targeted working women on the premise that Maggi noodles were fast to cook and hence offered convenience. the Swiss Public Welfare Society commissioned Maggi to create a vegetable food product that would be quick to prepare and easy to digest to help with the problem of women having less time to prepare meals as more women worked outside the home. The results ² two instant pea soups and an instant bean soup ± were a huge success. sauces and ketchups. 1846 in Frauenfeld. these product extensions were not as successful as the instant noodles.instant noodles . NIL shifted its focus from working women and targeted . However. in India.the October 9. NIL was trying to create an entirely new food category. Initially. instant noodles. After this. Maggi 2-Minute With the launch of Maggi noodles. NIL created an entirely new food category .in the Indian packaged food market. which would later become lead to the beginning of Maggi and convenience food products. He was the oldest son of an immigrant Italian and a Swiss national. To get to the root of the problem. In 1882. NIL extended the Maggi brand to a variety of culinary products like soups. NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s. but also bouillon cubes. NIL started offering a range of new 'healthy' products under the Maggi brand. and cooking aids among others. By the turn of the century. In 2005. in a bid to attract healthconscious consumers. Because of its first-mover advantage. In 1863 he developed a formula for bring added taste to meals. Over the years.

'Fast to Cook Good to Eat' was also in keeping with this positioning. etc. 'Bas 2-Minute. carbohydrates. NIL's promotions positioned the noodles as a 'convenience product'. These ads had become so popular that the tagline 'Bas 2-Minute' immediately reminded Indian consumers of Maggi noodles even several years after the ads were taken off the TV. NIL's advertising too played a great role in communicating the benefits of the product to target consumers.' (Only 2 minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers. I'm hungry). Tomato and Curry Maggi vegetable atta noodles Is an innovative product and the first of its kind in India? Nestlé India used the Group's extensive Research and Development expertise to develop MAGGI Vegetable Atta Noodles which contain whole wheat and real vegetables. bhookh lagi hai' (Mom. NIL aggressively promoted Maggi noodles through several schemes like distributing free samples. Taste Bhi. MAGGI offers . A 100 gm pack of MAGGI Vegetable Atta Noodles provides the goodness of 3 rotis* (energy. Maggi's first product extension was Maggi instant soups launched in 1988.children and their mothers through its marketing. The noodles' tagline. Chicken. It is available in 4 flavours: Masala. NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Taglines like 'Mummy. MAGGI 2-MINUTE Noodles is one of the largest snack food brands in the country and defines the Instant Noodles category in the country. Health Bhi! MAGGI SAUCES Sauces and Ketchups are relished for their high quality and taste and are considered µgood value for money' by consumers. dietary fibre. MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the RDA of Calcium and Protein for the core target group. Through its ads. giving gifts on the return of empty packs. protein and calcium). for mothers and as a 'fun' product for children.

Based on such insights.a wide range of products that appeal to various segments including traditional ketchups. we realized that the mess has closed and there is no other chance to decent meal. MAGGI MAGIC CUBES MAGGI MAGIC Cubes are taste enhancers .(in Durgapur the nearest dhaba is 6km away and we had no bikes. a mix of Tomato. Garlic & Coriander and MAGGI Tomato Pudina mix of Tomato."Chutki bhar Jadoo!" MAGGI MAGIC Cubes are available in two flavours . mom had packed 6 packs of wonder stuff and rushed to the kitchen. Indianized sauces and specialty sauces. I payed 20 bugs and make that good Bangali cook these 3 packes of ³wonder stuff´ and put in 6 plates and rush to my room. Durgapur. Aah that day I got such words which itchak rabin. There are 8 variants in the MAGGI Sauces range: Nestlé India has always focused its efforts to understand the changing lifestyles of consumers and their needs. 2007. Mint & Coriander. West Bengal. Recent examples are that of MAGGI Tomato Chatpat. December. MAGGI HEALTHY SOUPS Nestlé pioneered the dehydrated soups market in India and was the first to introduce tasty and convenient packaged soups. Bangalore. Business Brands . where everyone sitting.Vegetarian Masala and Chicken Consumers opinion about Maggi October 2006.) suddenly a bulb glows on my head. Ginger. The week After reaching on Engineer¶s hostel on the first day of our in SAIL at 10pm. SAIL. the Company continuously innovates and renovates.

when the Brazilian government first approached NESTLÉ. Alongwith the price cut. Price and affordability are critical factors to a large segment of coffee consumers in India. BRAND NESCAFE The beginnings of Nescafé can be traced all the way back to 1930. is seen as an effort to increase focus on the domestic market and enlarge the brand¶s consumer base. and to introduce special low-priced packs.When ever I ask wife ³Is there any thing to eat´ after 5 minutes I get a bowl of Maggi soup+ noodles. set out immediately to find a way of producing a quality cup of coffee that could be made simply by adding water. he found the answer. by 15 per cent. but the moves are distinct and noticeable. And then it grew in size! There sure will come a time when the Nescafe mother-brand on the pack will dwarf a Sunrise into a status of sub-brand altogether. After seven long years of research in the Swiss laboratories. this was invented by wife: Maggie soup+ Maggie noodle= wonderful of evening snacks. yet would retain the coffee¶s natural flavour. Nescafe. The move by Nestle India to reduce the price of its flagship coffee brand. Their coffee guru. Sunrise! It happened in slow motion. In the beginning came the Nescafe brand name on the top label of Sunrise. the company has also launched a new ad campaign . Nescafe is taking wee baby steps towards mother-brand status with its not such an old hat decision of bringing the Nescafe label onto the hitherto aggressively and single-mindedly advertised South-India centric brand of coffee-chicory soluble mix. Max Morgenthaler and his team.

Faced with stagnant sales and in an attempt to gather additional volume growth. has triggered sales significantly. During the year the Company continued to innovate and renovate and in early 2006. Consumer prices of Nescafe. and other locations . Nescafe clocked double digit growth soon after a prolonged period of single-digit growth. coupled with a mass-appeal commercial in place of 3-year-old 'taste that gets you started' campaign. launched New NESCAFE 3 in 1 with the right balance of coffee. During the year the Company re-launched NESCAFE SUNRISE coffee-chicory blend after it was renovated with superior grade of plantation beans to provide better coffee taste and aroma and competitive advantage." NESCAFE continues to be the largest brand of instant coffee in the Indian market. CMD. colleges. Nestle India maintains. Carlos Donati. In fact. Nescafe pilao' positioning. Nescafe's upmarket 'taste that gets you started up' jingle was replaced with the commonplace 'inhe jagao. especially in coffees and beverages the Company continued to increase its µNESCAFE Coffee Corners¶. urban-centric positioning was traded for mass-appeal advertising. "All along.Nestle India underwent a dramatic repositioning for Nescafe. we have been selling Nescafe thinking the brand appeals only to a certain type of consumer. dairy creamer and sugar and especially formulated to suit the taste profile of the youth who wish to move to the more trendier coffee habit. With rapidly increasing opportunities in the Out Of Home segment. µNESTLE Consumption Zones¶ and vending machines in offices. Adding that the class-to-mass communication for Nescafe is here to stay. which have been steadily falling (currently at Re 1 for 1 gm sachets and at Rs 10 for 12-gm sachets). Nescafe's elitist. especially in the tea drinking areas. But the younger generation is evolved now ² maybe we were late in realising this.

that experience high footfalls. The exception being June 10. on the back of a growing perception that the stock trades at the higher end of the FMCG valuation spectrum. The counter has been range-bound over the last month since when it has been trading in the range of Rs 549 to Rs 550. when the stock hit Rs 573 on the BSE. A recent Merrill Lynch report on the company says that the stock is no longer a safe haven. Top 5 Coffee brands advertised on TV during the first three quarters of 2005. The report attributes structural and competitive issues impacting growth prospects. ‡ 'Nestle India Ltd' & 'Brooke Bond Lipton' constitutes 98% share in Coffee advertising ‡ 'Nescafe Classic' coffee gets hotter on TV MARKET SHARE THE stock of Nestle India Ltd has been under pressure for some time now. About 40 per cent of the company's business is said have either fallen or slowed down visa-vis last year. An illiquid counter. The Company has by far the largest number of vending machines installed in the market and sell close to 700 million cups of hot and cold beverages per annum. the stock is also being dogged by talk of it being a potential delisting candidate. The key among them being brand Maggie Noodles and Cerelac. which was trading at around Rs 655 levels on the bourses as on April 4. The stock. has lost ground by 19. . While the former contributes to 12 per cent of the turnover.3 per cent to its current levels of Rs 549.

Though this quarter is likely to be soft. For instance. organization. However. the long-term growth story is still on track. according to analyst Mr Harrish Zaveri of Edelweiss Capital.5 per cent in the current year vis-à-vis an average 23 per cent growth over the last two years. Nirma is seen as a good product. Analysts maintain that milk ² which contributes to 41 per cent of the total raw materials ² prices are expected to be up by 5 per cent to 6 per cent this year. The company has stopped supplying tender parts to Canteen Stores Department (CSD) as of this quarter largely on account of the fact that they are not able to pass on cost to CSD. WHAT IS BRAND IDENTITY Aaker¶s Framework Brand identity as defined by Aaker is the sum of the brand expressed as a product. person.the latter contributes 11 per cent. there is expectation that EPS would grow merely 4. the PE may or may not drop. Cerelac with 80 per cent market share and one of Nestle's most profitable brands is expected to see a decline in sales primarily due to the Government ban on print advertising and doctor sampling. For its price. and symbol. milk and milk products sales would have increased by 11 per cent to 15 per cent. Had CSD sales continued like last year. brand as product deals with the acceptance of the brand as a product itself." he said. This is led by slower sales growth ² 5 per cent versus average 9 per cent in the last two years and higher cost pressures. 3M abroad and . While Maggie has 80 per cent market share in the noodle category and no noteworthy competitor there is a perception that the slowdown is probably due to brand fatigue. On the other hand. with the company policy being growth via low penetration and not share gains. "The key problem is milk prices and not the brand per se. Hence. BMW or Benz are basically seen as good products besides being good brands. Brand as organization emphasizes that a brand is successful among other things because of the organizational values it upholds. While the company may seem to be going down in terms of pricing it is primarily on account of them wanting to play the volume game.

Brand as symbol deals with heritage and what the brands stand for. starch (Revive). Sweekar). Coke symbolizes the American dream. The framework is reproduced on the next page. Aaker contends that brand identity is a function of these four dimensions. edible oil (Saffola.Marico in India have brought in a series of successful products because of their commitment to innovation. Denim talc would be seen as µmasculine. and Pepsi as young and vibrant. Brand identity prism BRAND PERSONALITY . Marico has innovative and often successful offerings in a wide variety of products as hair oil (parachute). Brand as person deals with the question ³ what happens to this brand when it becomes a person?´ by implication. jam (Sil). For instance.¶ Sunsilk shampoo as µfeminine¶.

For instance. It is easier to intuitively understand brand personality rather than define it. A Mercedes-Benz car is owned as much for its status conferring nature as to its utility. conservative personality might be boring but nonetheless reflect characteristic valued in a financial advisor. In one simple sentence this summarizes the components of Dabur¶s personality. dependable. young people prefer to ride Yamaha bike in India because it is a power-bike and because he is considered very masculine when he rides a power-bike. Some people may never aspire to have the personality of a complete leader but would like to have a relationship with one. A trustworthy. one of the participants said. In a flash. or even a . Titan. ³Dabur is like my grandfather´. this brought out what Dabur really means. a lawn service. These can be listed as: ‡ Strong heritage ‡ Herbal or ayurvedic benefit ‡ Healthy ‡ Nurturing ‡ Dependable Definitions of Brand Personality The definitions of brand personality available in literature can be classified into three types: a) Emotion-centered definitions b) Human-centered definitions c) Others Self-expression can be seen as the motive behind the consumption of certain products and services.Importance of Brand Personality Brand personality is what distinguishes one brand from another or a particular brand from a product. The need for self-expression is paramount in the consumption of many lifestyle products like Close-up. In a discussion on brand personality of the brand Dabur. especially if they need a banker or a lawyer. Charms and Classic.

feeling and liking to the relationship. which is analogous to the relationship between two people. The brand personality provides depth. Some of the types might be as follows: ‡ Down-to-earth. Mercedes.car---consider the Volvo brand personality. just as two people can have a strictly . influential. In the soft drink category. a relationship with a person whom one respects for his accomplishments. The relationship might be similar to one that exists with a well-liked and respected member of the family. To see how the relationship basis model works. young. ‡ Spirited. condescending (sophistication). consider the personality types of people with whom we have relationship and the nature of those relationships. ‡ Pretentious. minister or business leader. the type of person the brand represents. The relationship could be similar to one with a powerful boss or a rich relative. For some. ‡ Athletic and outdoorsy (ruggedness).customer relationship can also be based on a functional benefit. family oriented. Second. Perhaps Hewlett-Packard and the Wall Street Journal might fit this profile. Pepsi fits this mold more than Coke. such as a teacher. When planning an outing. Marlboro are examples. and even Coke. it might be enjoyable to have a friend who has these personality characteristics. Two elements thus affect an individual¶s relationship with a brand. or Lexus as opposed to the Mazda Miata or the VW Golf. ‡ Accomplished. a friend with outdoorsy interest would be welcome. up-to-date. competent (competence). there is the brand personality²that is. Especially on a weekend evening. This might describe brands like Hallmark. Nike. this would be BMW. A brand. genuine. perhaps that is what a relationship between a business computer and its customer should be like. Kodak. The concept of a relationship between a brand and a person (analogous to that between two people) provides a different perspective on how brand personality might work. there is the relationship between the brand-as-person and the customer. wealthy. For example. First. outgoing (Excitement). old fashioned (sincerity).

alienation. Fred Posner of Ayer Worldwide has observed that people live in a world characterized by stress. defines brand equity as a ³liking´ or a ³friendship´ relationship between the customer and the brand. which provide some expertise or knowledge of a subject in which a given person is interested. Some friends are fun and irreverent. A friend relationship can involve very different brand personalities. Posner believes that either relationships can be the basis for real differentiation and competitive advantage. the housewife currently looks at the detergent powder market in India in a very functional manner. A focus on the friend relationship rather than the brand personality can allow more scope and flexibility in the implementation of the brand identity. Escape can take the form of aspirational relationships. Others are serious and command respect. is someone you like. This is why the low price can be a powerful vehicle for signaling . Others are reliable and unpretentious. The Brand as a Friend One important relationship for many brands is a friendship link characterized by trust. would rate high on the friendship dimension. and is an enjoyable person with whom to spend time. understanding. A friend is there for you. Still others are just comfortable to be around. a software company that has always been a leader in customer service. and caring. He further suggests that the chosen relationship should be the centerpiece of brand strategy and execution.business relationship. is comfortable. and clutter. Posner suggested that brands could provide these roles by being either an ³aspirational´ or a ´trusted´ associate. dependability. which provides a social lift or trusting relationships. WordPerfect. The functional benefit representation model is suitable for certain product categories. Noting that people cope by developing escape mechanisms and meaningful friendships. treats you with respect. For instance. in fact. General Foods.

For instance. Ultimately. essence of a brand like close-up is youth. A brand can also give very strong cues on its functional usefulness by the manner in which it is managed.functionality. is the brand¶s character. the mascot Gattu has made Asian Paints a popular and friendly brand. Wheel. Similarly. This essence translates into benefits like joy.g. bright colour and gel reflect the youth. it is these benefits and attributes that form what Arnold calls brand anatomy. When a brand is configured. Ruffles chips from their packaging to brand name send unmistakable signals about the crispness of the chip.functional benefits. We can identify it with a person. Ariel Supersoaker). brand personality can derive mileage from. These benefits should be converted to specific attributes. Essence is the basic idea behind the brand. Kapferer¶s definition of brand personality is also similar. For instance. The bright packaging of Close-up signals modernity. In fact most recent successes in the product category used price very effectively (e. The endorsement of Close-up Antakshari is the celebration. Genius machines from WIPRO also hint to us the quality of the machines computing capabilities. Nirma. Peugeot is conservative. For instance. But. Brand personality according to him. it is important to get its essence first.as well as hint at. The anatomy of close-up as it emerges from this approach is outlined in the figure . energy and modernity. This essence translates itself into benefits. Thus. Citreon idealistic. joy and the energy dimension of the brand. The easy way to bestow personality on a brand is to provide it with a spokesman (Lalitaji-Surf). fun. These benefits get reflected in the attributes of the product. Brands like Mahabar and Mahacola can signal to the consumers that the product gives more value for money than the competing brands. a star (Pataudi-Royale Paint) or an animal (Rhino-Ceat) David Arnold seems to treat essence to be synonymous with brand personality. attributes can be used to cue functionality.

from its . LEMENTS OF BRAND PERSONALITY Products Sensory Emotional Rational An incense stick A washing machine A diesel engine Smell Finish. looks Noise level Brand name Reliability leading to peace of mind Rugged hence reassuring Raw material Number of Kg of clothes it washes Fuel efficiency It is therefore proposed that all those components and elements that are in some sense crucial to and inseparable from the brand.given on the next page.

Bringing new users to the brand is one of the benefits of brand extension but it is important that existing consumers are not disenfranchised by the extension. This comes at a time when the company is experiencing pressure on its margins in the traditional retail business. This has allowed it to refocus its business from . Unilever has extended its my home domestic cleaning service into dry cleaning through a London retail outlet. It would be supported by the following Unilever example. This could be through addressing additional consumer opportunities or finding new uses. not just deodorants and not just toiletry products but also the service area. A successful brand helps a company enter new product categories more easily. it allows Unilever to look for sources of higher profit. However. How the various elements of a brand could contribute to its brand personality is shown in the above table. The development of added-value services is one way in which this can be addressed. Effective brand extension strengthens the brand franchise Brand extensions should be able to take the existing brand and make it stronger. For example: Fairy was extended from a washing up liquid brand to become a washing powder brand too. Boots has been faced with greater competition in its core business of selling health and beauty products by supermarkets. Secondly. The brand has also been used to market a chain of modern barber shops. it enables Unilever to target the whole of the male grooming regime. Unilever¶s decision to reposition its Lynx brand as a male grooming range rather than just a deodorant has several advantages for the company. Firstly. BRAND EXTENSION Brand extension refers to the use of the successful brand name to launch a new or modified product in a same broad market. More recently. Boots has a major advantage over its competitors through a high level of consumer trust.personality.

This strengthens the brand through building on the element of trust and authority within the healthcare sector and enables it to address additional market segments more effectively. its marketing has sought to build and secure these credentials within its target market. If there is a misunderstanding of consumers¶ perception of the brand. One of the principal dangers of brand extension is that the parent brand equity may be diluted. The brand extension can be one way in which the brand is kept modern and alive. consumer types and price sectors. It will have strong credentials. The extension should be into a sector or create a sector that is a natural fit with the parent brand. Nestle is an example of a strong parent brand that has used brand extension to develop a series of variants that are able to target different choco-food occasions. then it may be undermined. up-to-date brand. Nestle can thus be equally an established and modern. if the brand were to be moved outside the health and well-being sector.retailing cosmetics. An irrelevant positioning has the ability to undermine the parent¶s credentials. In turn these are able to strengthen the Nestle parent brand.´ Quite often the parent brand will have been available for some time. The addition of a service or experiential element such as Café Nestle can also strengthen the brand by moving it beyond mere imagery to the provision of genuine consumer engagement. The exception to this is where the . toiletries and pharmaceuticals to a provider of healthcare and well-being services. An example here could be moving a brand into a different sector that requires substantial marketing investment to become established. However. If this means that the parent brand receives less support. A different scenario is that the extension takes necessary marketing funds from the parent. enabling it to build a level of equity and trust with consumers. Over time. it could be moved into a sector that consumers view as ³inappropriate. it may be seen to have lost focus and relevancy.

there is a real danger that the parent brand equity will be undermined. It has considerable potential to undermine the brand¶s equity if mismanaged. Brand extension has the ability to strengthen and update a brand through addressing new consumer opportunities. British Airways product offers such as Club World and Club Europe feed off the core brand and add to it.Com and FT Mobile brands allows the extensions to feed off its media strength.parent brand is able to span multiple categories as it is a brand based on consumer values and imagery rather than being tied to a product or service category. it is not an easy option that will add incremental sales to a brand. Marketing promotion for the brand extension should not be too removed from that of their parent brand. A brand that is moved into an existing product or service category may end up as a me-too unless it is able to achieve significant differentiation from the competitors. Brand extension does represent a way in which a brand can be kept up-to-date. An example here is Virgin. The extension needs to feed off the parent and take in its equity rather than having a significantly different positioning. However. By the same token. A new line has to justify its place on the retailer¶s shelf and in the brand portfolio with a clear role. Nestle is a strong brand as it is retained within the overall dairy product & choco market but develops addedvalue sectors. . It may also help to increase sales through attracting new groups of consumers or addressing additional usage occasions. The Financial Times¶ development of the FT. If this is unclear. Similarly Nokia¶s development of a fashion element within the mobile phone sector moves the brand into a potentially lucrative area. The new variant must be able to promise something different such as simplicity or sustained added value compared with existing brands in the sector. which can be transferred to new and seemingly unrelated sectors as it is not related directly to one sector but has values that can transcend a number of different categories. Creating a category may be one of the ways in which brand extension can be successful.

They trust a known brand name. Benefits of Line Extension Brand extensions let a marketer take a brand with well-known quality perceptions and associations and put it on a brand in a new category.One of the ways in which brand extension may be successful is through viewing it from a consumer perspective. brand extensions make new product introduction less expensive. consumers who favorably evaluate a parent brand are more willing to try and adopt the brand extension than an unfamiliar brand in the same category. Second. its values could be applied to a new sector? It is through developing this consumer understanding that the true meaning of the brand can be understood and appropriate line extensions identified. If consumers know that Arm and Hammer Baking Soda is deodorizing. shoe inserts. brand extensions truly help to build equity in the brand name itself. kitty litter. i. Arm and Hammer means deodorizing²no matter what it is on. It is an uphill task for the designer of an advertising . Brand extensions can also help a firm¶s stock prices. When Arm and Hammer extends its name from baking soda to deodorant. So. Do consumers view the brand as being a specific product or service or is it a brand that can travel. Brand extensions can also help consumers understand the core meaning of the brand name. its core "deodorizing" brand concept is enhanced. in this sense. CELEBRITY ENDORSEMENT AS A TOOL OF BRAND BUILDING The modern world of brand building and marketing communication has become colorful and inundated with advertisements. Not only can marketers capitalize on brand awareness.e. they will immediately infer that Arm and Hammer kitty litter will be deodorizing too. and it is hard to get noticed. they can also leverage off of the associations consumers know about the parent brand. For these reasons. Some academic research has found that Wall Street attend to brand extension announcements and that whether they like them or not depends on how much they like the parent band.

people tend to ignore all commercials and advertisements while flipping through the magazines and newspapers or viewing TV. Sherman. For example. celebrities may help advertisements stand out from surrounding clutter. which tends to persuade a consumer to fix up his choice from a plethora of brands. In this jet age. 1985). In India. In this process. thus improving their communicative ability (Atkin and Block. the glamour of a celebrity seldom goes unnoticed. positive impact on economic returns of sponsoring companies. Although research findings are equivocal about the ability of celebrities to generate actual purchase behavior. and a framework for measuring the effectiveness. the companies hire celebrities from a particular field to feature in its advertisement campaigns.campaign to differentiate itself from others and attract viewers' attention. but the design of such campaigns and the subsequent success in achieving the desired result calls for an in-depth understanding of the product. ³Selecting Celebrity Endorsers: The Practitioner's Perspective.´ and equally widely in the press. The promotional features and images of the product are matched with the celebrity image.´ There are several reasons for such extensive use of celebrities. Because of their high profile. celebrity endorsement in advertisement and its impact on the overall brand is of great significance. the campaign featured on almost every major news channel 1. Thus. Sunfeast. the brand objective. associating the celebrity with the brand. star power can be gauged by the successful endorsements done by Shahrukh Khan (Pepsi. Celebrities may also generate extensive PR leverage for brands. when Revlon launched the "Won't kiss off test" for its Colorstay lipsticks in 1994 with Cindy Crawford kissing reporters. choice of a celebrity. Hyundai Santro. Article: ³Selecting Celebrity Endorsers: The Practitioner's Perspective. 1983. Although this sounds pretty simple. and . But even then.

the use of celebrity spokesperson in advertising to endorse brand a brief assessment of the current market situation indicates. meaning transfer model. Rahul Dravid. This fact can be brought out by using certain examples i.Navratan etc. Mr. Sachin Tendulkar. The fit between the product and celebrity is evident as Mr. 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. the celebrity endorsement advertising strategies can under the right circumstances indeed justify the high cost associated with this form of advertising. ³Celebrities Impact on Branding Christina Schlecht There is a popular method of marketing communication. Amitabh Bachchan. it has to be global of further research efforts to develop an extensive. Soon the company found a perfect fit and a reliable celebrity to transmit the correct message and help regenerating the lost trust. if and how the lively interest of the public in the rich and famous can be efficiently and effectively used by companies to promote their brands and consequently to increase their sales revenues.e. This is a live example of how a celebrity brought certain attributes to a product like chocolate. Bachchan and Cadbury chocolates both have tested troubled times and still they stand tall and the love and trust they both share with the people all across India. consistent & user friendly tool to avoid arbitrary decision & enhance the strategic character of . Hrithik Roshan and the others.). match up hypothesis. However as several failure show. Amitabh Bachchan promoting Cadbury chocolates after the fiasco of infestation when the image of Cadbury India went very low in the eyes of people. The inevitable question is. multiple products & celebrity endorsement while these concepts can help to answer the questions if & when celebrity advertisement investment pay-off.

however. 1995. In almost all respects. Nanda Rangan. Fans of celebrities get excited when they see them. they want their endorsement. they have a competitive positioning relative to other celebrities. In this particular instance. Some of the image of the celebrity is ³transferred´ to the third party. customers of that celebrity show rising levels of interest in the associated organization.´ When a celebrity becomes the face of a charity. rumors of this nature are of dubious significance for the sports teams involved. a rising celebrity can align himself with other celebrities by use of PR. association or photographic imagery. We know that ± just like corporate brandowners. Sometimes they indulge in brand extension and they can even have brand architectures. celebrities function just like the brands of businesses and products that usually grace the pages of this website. product or offer. celebrity brand-owners employ image consultants and PR agencies. They are defined by what people think about them. they often feel some kind of affinity to what a particular celebrity ³stands for. 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. celebrities exist in the minds of their audience in precisely the same way that corporate or FMCG brands do. On March 9. and of course he can directly communicate values through use of language or behavior. 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). Ike Mathur.celebrity sponsorship decision ³Celebrity Branding: not as glamorous as it looks´ Chris Grannell and Ruwan Jayawardena Celebrities are brands. Conversely. ³The wealth effects associated with a celebrity endorser: The Michael Jordan Phenomenon´ Lynette Knowles Mathur. Normally. Unlike the people behind them. 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 . or lends his name to another product or service.

to establish. in that the product performs a task for the user while the brand adds value and . worth more than Rs. but only if he/she is selected carefully and used effectively to add value to a brand. Celebrity endorsement gives a brand an instant value and personality package which otherwise would have taken years and millions of dollars . The four primary endorser¶s types are: ‡ Celebrities ‡ Experts ‡ Typical satisfied customers ‡ Announcers. 150 Crore today.investors in a select group of firms.a brand is a name. Celebrity endorsements of brands Brand. It is different from a product. a sign. by conservative estimates. or a symbol such as a trademark or logo that identifies a product or service and differentiate it from similar products or services. There must be a relevant and recognizable match of values of the celebrity and the brand as perceived by consumers. celebrity endorsement has grown in gigantic leaps to reach a level where it has spawned a separate industry in itself. A celebrity does help in increasing brand sales. whom many would consider to be among the most talented basketball players of all time. 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 In the world of advertising and marketing communication. This minor league baseball player was none other than Michael Jordan. with far less guarantee of results. Celebrity Endorsement is a rapidly growing industry that is. Today.

one of these is getting celebrities to endorse the products. They have some characteristic attributes like attractiveness. Marketers use a whole lot of tactics to draw the consumer¶s attention to their brand . Popular personalities who enjoy public recognition amongst a huge slice of a particular segment of the population or the entire population are celebrities. it can be said that within a society. celebrities generally differ from the common people and enjoy a high degree of public awareness. Why don¶t you buy it and become like me?´ The product is made attractive by the association with the person whom customers want to be like and admire and it is this association that caused the compulsive desire to purchase and use it. A celebrity may be the embodiment of the company¶s image.e. beautiful. talented. brand extensions are possible i. Once quality branding is in place. I actually think this product is great. When celebrities endorse a brand. famous people always attach a greater degree of attention. Celebrities give the perception of quality products and services. producer from competitors who would attempt to provide products that seem to be identical. their very presence conveys the message ³I¶m rich..covers the source of the product protecting the customer. intelligent and you aspire to be like me. a "celebrity endorser is an individual who is known by the public (..) for his or her achievements in areas other than that of the product class endorsed". 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. famous. recall and loyalty. Thus. Celebrities are people who enjoy specific public recognition by a large number of certain groups of people. . extraordinary lifestyle or special skills that are not commonly observed. Compared to other endorser types. According to Friedman and Friedman. Invariably.

e. Shah Rukh Khan in Omega and Pepsi ‡ In outdoor media like hoardings. ‡ In print and electronic advertisements. In the midst of today¶s cluttering. the advertisement media and the appeal to be generated. the more likely consumers are to buy the endorsed product.g. ‡ As brand ambassadors.g. it becomes all the more important for the advertiser to capture the attention of the consumer. e.. Hero Cycles. The mind as a defence against the volume of today¶s communications screens and rejects much of the information offered to it. Aishwarya Rai in Lux in some parts of North India. The associations made with them also help the product they are endorsing. Another factor that requires a thought is the media to be used to advertise the product/service. Paas .. Celebrities have the advantage of publicity and the attention getting power required for any successful advertising campaign. The relationship can increase a consumer's belief and trust in the product and its benefits. The product could be commercial ones or non-commercial ones (social advertising).. FORMS OF CELEBRITY ENDORSEMENT: A celebrity can endorse brands in different ways based on the purpose. e. The more familiar an endorser..g.customers might easily be persuaded to try their other products and services. Fardeen Khan in Provogue. Celebrity endorsers is that s/he can provide testimony for a product or service.g. Following types of endorsement forms have been identified to be heavily in use at present: ‡ As spokespersons.. particularly when the product has contributed to their celebrity. Amitabh Bachchan in KBC. e. Instinctive changing of channels is prevented if the first few seconds of the advertisement manage to grip the audience¶s attention. e. Most celebrities also enjoy enormous goodwill. In general the mind accepts only that which matches prior knowledge or experience. and finally ‡ The use of brands by celebrities in movies.g.

A well-known face would obviously speak for more expertise than an ordinary one. An example to cite could be the pesticide controversy concerning Pepsi and Coca-Cola. Physical Attraction: Consumers tend to perform positive stereotypes about such people. WHY CUSTOMERS ACCEPT THE CELEBRITIES Messages delivered by well-known celebrities achieve a high degree of attention and recall for consumers. Celebrities are perceived Trustworthy ± Trustworthiness refers to the customer¶s confidence in the source for providing information in an objective and honest manner. 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. Some know they wouldn¶t become as good as the celebrities but sharing common belongings makes them feel better.this is especially true in case of new products. wherein Coca-Cola was succeessful in rebuilding its brand image through its celebrity endorser Aamir Khan. ‡ Attracts Attention: Celebrities ensure attention of the target group by .Paas and Coke in Yaadein. Physically attractive people are more successful in changing beliefs than non-attractive people. People are more likely to trust the quality of a trustworthy celeb endorsed brand over a non-endorsed one. Ambitious psyche: People ape the celebrities in their day-to-day activities and many even dream to become like a celebrity some day. Celebrity Expertise perceived relevant ± Expertise is the knowledge that the communicator seems to possess to support the claims made in the advertisements.

geography etc. ‡ Demographic Connect: Different stars appeal differently to various demographic segments (age. however big he or she may be. The most it can do is generate interest in the product or create a buzz around it. class.). REASONS WHY CELEBRITY ENDORSEMENTS MAY NOT WORK Improper positioning: Associating with a star. ‡ Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. . the advertising will create a conflict in the minds of the target audience who may reject the proposition. Brand-celebrity disconnect: If the celebrity used represents values that conflict with the brand values and positioning. there has been such a deluge of celebrity endorsements that it has led to the very clutter that it aimed to break. Clutter Flutter: In recent times. gender. in itself does not guarantee sales. ‡ 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. the consumer will also benefit. ‡ Associative Benefit: A celebrity¶s preference for a brand gives out a persuasive message .breaking the clutter of advertisements and making the ad and the brand more noticeable.because the celebrity is benefiting from the brand.

Others are so spellbound by the personality of the celebrity that they completely fail to notice the product/brand being advertised. if anything. Consequently. 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. each celebrity is called upon to push maybe a dozen brands or so. Dabur has ensured high saliency for its brand with the inclusion of Amitabh Bachchan in its advertising. Unfortunately using a celebrity seems to be the easy way out of a parity product situation. Shah Rukh and their likes ensure an easy connect for Pepsi with the youth.This over-exposure can be bad for the brand. the product will fail faster because the presence of the celebrity will create a buzz and more people will know about the ³ordinariness´ of the product. Dissatisfaction with product quality/performance You cannot sell an ordinary product just by making a celebrity endorse it.THE FOUR QS: Quick saliency: It gets cut through because of the star and his attention getting value. Some viewers forget brand that a celebrity is approving. Sachin. ³We seem to have just 2 ½ celebrities in a country of 1 billion people which is a terrible tragedy. Confusion/ Scepticism The us e of celebrities can be confusing. In fact.´ Unfortunately in India. 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 BENEFITS OF CELEBRITY ADVERTISING -. The brand is overshadowed in the overwhelming presence of the star. Quick shorthand for brand values: . we have too many brands chasing too few celebrities. Quick connect: There needs to be no insight but the communication connects because the star connects.

does not really seem to go the celebrity endorsement way when it comes to advertising and marketing communications. What factors do you consider most important while purchasing FMCG goods? Kindly rank your preferences. Nestle. which was priced at Rs 5 per SKU. Kapil Dev and Sachin Tendulkar seem to have done that successfully for Boost in the early '90s. however. the firm¶s marketing straregy and popularity do not call for celebrity endorsers. the first that picks one up could use it to differentiate itself in the market. Boost did it in the malted beverage category. And helped to differentiate it in the malted beverages market. Price  Availability    Packaging Natural Ingredients  Brand name  After analysing the above data it can be clearly seen that Price is the most important factor which can be considerd while purchasing FMCG goods. Quick means of brand differentiation: In a category where no brand is using a celebrity.The right star can actually telegraph a brand message fast without elaborate story telling. SWOT ANALYSIS DATA COLLECTION & ANALYSIS 1. . It had roped in Rani Mukherjee to endorse its brand Munch. In fact. Other celebrity endorser roped in was Sourav Ganguly for Nestle Milo the young and sporty appeal.

Are you aware of the complete range of Nestle products? Yes    No After analysing the above data it is clearly shown that 80% of the pepole are aware of the complete range of Nestle Products.2. I T C Ltd. . Do you know of any celebrity endorsing any of the Nestle brands ? Yes    No 4. Are you aware of the taglines of Nestle products? Yes  No  Not  sure 5. 3. How would you rate the players in the FMCG sectors in terms of their most effective brand strategies in your view? ‡ Hindustan Lever Ltd.

6. Are you satisfied with the overall product quality of Nestle Strongly agree  Moderately agree  Moderately disagree    Strongly disagree After analysing the above figure it can be seen that most of the people are moderately agree with the quality of their product. Dabur India Ltd. Colgate-Palmolive (India) Ltd ‡ Godfrey Phillips India Ltd. Nestle India Ltd.‡ Nirma Ltd. Which product comes to your mind when the name Nestle is mentioned? Maggi  Nescafe  Munch    Milo . ‡ Smithkline Beecham Healthcare Ltd Godrej Soaps Ltd. 7. Reckitt & Colman Of India Ltd After analysing the above figure it can be seen that Nestle is the major player in the FMCG sectors in terms of their most effective brand strategies. ‡ Britannia Industries Ltd. ‡ Marico Industries Ltd Cadbury India Ltd ‡ Procter & Gamble Ltd.

It is shifting from generic products to packaged brands. It is seen that the philosophy behind the branding strategy of Nestle has been to develop the brand so as to attract and retain the consumers.Nescafe seems to be the most recalled brand of Nestle. . The branding strategies act as a tool to develop and sustain the appeal of brands in the eyes of the consumers. The branding strategies adopted have resulted in building a sustainable and differential advantage over its competitors for the brand. and its association with Nestle as a parent brand goes unnoticed.e. CONCLUSION & IMPLICATIONS The importance of the brand value and the strategies adopted to enhance the brand value has been well understood. This is done in the light of the fact that the marketing trends are showing a change. One important feature observed is that the FMCG sector has adopted different branding strategies for each of the two i. is also seen as an independent brand. Throughout the process of analysis of the thesis. having become a generalized name for noodles. An interesting point to note would be that Maggi. organized and unorganized market of the Indian FMCG sector. it is observed that the branding strategy of dairy sector has been focusing mainly on two aspects: ‡ Focusing on the strong brands ‡ Product mix expansion Nestle is supporting its aggressive brand expansion and strengthening plan with various innovative marketing strategies.

Lefkowith. ³The role of brand valuation in marketing strategy´. ³Retail and the World Economy´ images Retail. T.62-7.37. p. No.. pp 203. November. (1988). ³The promised Land for Retailers´ images Retail.  (1989). (1990).. 4. London.6. Berry. p.   Bivani. Blackett. Thomas Grad (2001). J. L. 66. (1993a). 44. ³A perspective on brand´. it's sales and . Kim.28. T. 17 Kim. P.Book Pearson  Education.30. Berry. April 2007. ³4D Branding´.BIBLIOGRAPHY Books & Journals Leahy. 4. Kishore.L. Terry. Faulkner. E. pp. Vol. Marketing and Research Today. ³In services. ³Brand value  isn't about stocks. Clark. 2006. Journal of  Consumer Marketing. 6. vol..  April 2007. Harvard Business review.204. Brands and Branding. ³Branding in South East  Asia´. pp.  what¶s in a name´. The Economist. No.

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