Brand

Branding strategies in FMCG Chandranshu Charan 09ESHYD011 Branding strategies in FMCG Contents 2 Acknowledgement …………………………………………………………………………………………………………………… 3 Objective- ……………………………………………………………………………………………………………………………… 5 Methodology ………………………………………………………………………………………………………………………….. Structural Analysis of FMCG Industry …………………………………………………………………………………………. 5 Distinguishing features of Indian FMCG Business …………………………………………………………………………. 5 1. Design and Manufacturing………………………………………………………………………………………………….. 6 2. Marketing and Distribution…………………………………………………………………………………………………. 6 3.

Competition ……………………………………………………………………………………………………………………. 6 Application of functional knowledge …………………………………………………………………………………………… 7 Santoor: For a Younger Skin ………………………………………………………………………………………………. 7 Taj Mahal Tea………………………………………………………………………………………………………………….. Fair & Lovely: Chand ka Tukda …………………………………………………………………………………………… 9 Center Shock: Hilake Rakh De ………………………………………………………………………………………….. 10 Brand Positioning strategies for competitive advantage ………………………………………………………………….. 11 Interim findings and observation of the report …………………………………………………………………………….. 2 Brand Equity …………………………………………………………………………………………………………………….. 12 Brand loyalty …………………………………………………………………………………………………………………. 13 Awareness of the brand ……………………………………………………………………………………………………. 14 Perceived quality …………………………………………………………………………………………………………….. 4 A set of associations………………………………………………………………………………………………………… 14 Other proprietary brand assets …………………………………………………………………………………………… 14 Appraising brand assets ………………………………………………………………………………………………………….. 14 Ingredients for Strategy …………………………………………………………………………………………………………… 5 Financial ………………………………………………………………………………………………………………………….. 15 Innovation from the inside out – R&D in the FMCG industry …………………………………………………….. 15 Hul Strategy ……………………………………………………………………………………………………………………… 15 Interview with an Industry expert ……………………………………………………………………………………………… 6 Limitation of Branding …………………………………………………………………………………………………………… 17 Reference …………………………………………………………………………………………………………………………….. 18 Branding strategies in FMCG 3 Acknowledgement I owe a great many thanks to a great many people who helped and supported me during the writing of this project. I express my deepest thanks to my Guide Dr.

G Radha Krishna for guiding and correcting documents of mine with attention and care. He was always there to show me the right track when I needed his help. With the help of his valuable suggestions, guidance and encouragement, I am able to perform this project work. I would also like to thank my colleagues, who often helped and gave me support at critical junctures during the making to this project. Branding strategies in FMCG 4 A product is something that is made in a factory; a brand is something that is bought by a customer.

A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless. Stephen King WPP Group, London Developing a brand strategy can be one of the most difficult steps in the marketing plan process. It’s often the element that causes most businesses the biggest challenge, but it’s a vital step in creating the company identity. Company‘s brand identity will be repeatedly communicated, in multiple ways with frequency and consistency throughout the life of a business.

In Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), Consumers generally put less thought into its purchase than any other products. Here top of mind recall playing a vital role while taking purchase decision. Effective branding strategy is indispensable tool in FMCG sector. Though FMCG is the oldest market, it has gone through a complete transformation. The FMCG market becomes the first indicator of a lifestyle of a society or of a nation. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG).

FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. The shorter product life cycles and increasingly competitive environment have become a global trend in FMCG sector.

On an average, FMCG Company introduces 70 to 80 new products per year. Profit in FMCG goods generally scales with the number of goods sold rather than the profit made per item. The classification generally includes a wide range of frequently purchased consumer products category including: toiletries, soaps, cosmetics, tooth paste, oils, Tea, shaving products, detergents, and other non-durables such as glassware, bulbs, batteries, paper products and plastic goods. In order to sustain a fast pace of new product introduction, it is important to have potential new ideas ready for development.

Brand loyalty has become irrelevant where many homogenous products are flooded in the market. Informed customers are making rational purchasing decisions. This makes niche a conditional option for FMCG companies. Moreover all the major players like HLL, P & G, Marico, Colgate-Palmolive and Britannia have tried to create a niche market within the mass market to grow profitably. Many FMCG companies time to time formulating marketing and branding strategy to gain brand equity. An effective Integrated Marketing Communication strategy helps in to achieve the required goal.

Creating a strong brand identity, leveraging new product categories and growing the customer base are core concerns for consumer product companies. Firms are looking to maximize profits and market share in a highly competitive environment that includes such challenges and risks as demanding customers, consolidation and global expansion. Branding strategies in FMCG Objective- 5 ? To study branding strategies for consumer goods used by companies to attract consumers. ? To study different positioning strategies that may influence an individual‘s Behavior choices. ? To know the limitations of branding. Methodology Literature review. ? Evaluating Branding Strategies and Practices of different product category. ? Interaction with Industry Experts. Structural Analysis of FMCG Industry Typically, a consumer buys FMCG goods at least once a month. The sector covers a wide gamut of products such as detergents, toilet soaps, toothpaste, shampoos, creams, powders, food products, confectioneries, beverages, and cigarettes. Typical characteristics of FMCG products are: ? The products often cater to 3 very distinct but usually wanted for aspects – necessity, comfort, luxury. They meet the demands of the entire cross section of population.

Price and income elasticity of demand varies across products and consumers. ? Individual items are of small value (small SKU’s) although all FMCG products put together account for a significant part of the consumer’s budget. ? The consumer spends little time on the purchase decision. He seldom ever looks at the technical specifications. Brand loyalties or recommendations of reliable retailer/ dealer drive purchase decisions. ? Limited inventory of these products (many of which are perishable) are kept by consumer and prefers to purchase them frequently, as and when required. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word of mouth. Distinguishing features of Indian FMCG Business FMCG companies sell their products directly to consumers. Major features that distinguish this sector from the others include the following: – Branding strategies in FMCG 1. Design and Manufacturing 6 1. Low Capital Intensity – Most product categories in FMCG require relatively minor investment in plan and machinery and other fixed assets. Also, the business has low working capital intensity as bulk of sales from manufacturing take place on a cash basis. . Technology – Basic technology for manufacturing is easily available. Also, technology for most products has been fairly stable. Modifications and improvements rarely change the basic process. 3. Third-party Manufacturing – Manufacturing of products by third party vendors is quite common. Benefits associated with third party manufacturing include (1) flexibility in production and inventory planning; (2) flexibility in controlling labor costs; and (3) logistics sometimes it‘s essential to get certain products manufactured near the market. 2. Marketing and Distribution

Marketing function is sacrosanct in case of FMCG companies. Major features of the marketing function include the following: 1. High Initial Launch Cost – New products require a large front-ended investment in product development, market research, test marketing and launch. Creating awareness and develop franchise for a new brand requires enormous initial expenditure on launch advertisements, free samples and product promotions. Launch costs are as high as 50-100% of revenue in the first year. For established brands, advertisement expenditure varies from 5 – 12% depending on the categories. 2.

Limited Mass Media Options – The challenge associated with the launch and/or brandbuilding initiatives is that few no mass media options. TV reaches 67% of urban consumers and 35% of rural consumers. Alternatives like wall paintings, theatres, video vehicles, special packaging and consumer promotions become an expensive but required activity associated with a successful FMCG. 3. Huge Distribution Network – India is home to six million retail outlets, including 2 million in 5,160 towns and four million in 627,000 villages. Super markets virtually do not exist in India. This makes logistics particularly for new players extremely difficult.

It also makes new product launches difficult since retailers are reluctant to allocate resources and time to slow moving products. Critical factors for success are the ability to build, develop, and maintain a robust distribution network. 3. Competition 1. Significant Presence of Unorganized Sector – Factors that enable small, unorganized players with local presence to flourish include the following: 2. Basic technology for most products is fairly simple and easily available. 3. The small-scale sector in India enjoys exemption/ lower rates of excise duty, sales tax etc.

This makes them more price competitive vis-a-vis the organized sector. 4. A highly scattered market and poor transport infrastructure limits the ability of MNCs and national players to reach out to remote rural areas and small towns. Branding strategies in FMCG 7 5. Low brand awareness enables local players to market their spurious look-alike brands. 6. Lower overheads due to limited geography, family management, focused product lines and minimal expenditure on marketing. A general assessment of this would lead to the conclusion that FMCG is not a Structurally Attractive Industry to Enter.

Entry barriers are high due the nightmare logistics associated with distributing a FMCG and the limited mass media options available to build a brand. Likewise, the intensity of competition from branded and unbranded goods and the power of retailers make the FMCG a structurally unattractive industry in which to enter and difficult industry in which to remain a competitive player. Application of functional knowledge Soap Category Santoor: For a Younger Skin Brand: Santoor Company: Wipro Agency: FCB Ulka Santoor is south India‘s no1 soap brand.

As per sales data it contributed close to Rs 850 crore in 2008-09 to the company‘s coffers and became the leading brand in South India in its category. The brand which focuses on rural India has been growing at 29% for the past three years, on a year-onyear basis. The brand was launched in 1985 as an ordinary soap with sandalwood and turmeric as its main ingredients. The brand was initially test marketed in Bangalore and encouraged by the positive response, the brand became national a year after. The brand was positioned as the beauty + skin care at a reasonable price and the brand derived strength from the efficacy of the ingredients.

At that time the brands which had sandal as the main ingredient was Moti and Mysore Sandal Soap. The brand derived the name from combining Sandal + Turmeric and it is not from the musical instrument that it got the name Santoor. Although the brand became popular, the company was not satisfied with the results. The customers were not buying the ingredient story. The research suggested that customers are not correlating the brand with skin care and beauty. Branding strategies in FMCG 8 Thus started the brainstorming on getting the ? WOW ” factor to build the brand.

The wow factor came in the form of the new positioning ? For Younger Looking Skin”. The positioning comes from the consumer insight that ultimately the customers look for a younger skin which is another smart way of defining beauty. The focus on ? Younger Skin” also acts as a powerful differentiator because other brands were focusing on “beautiful skin” or “looking beautiful”. The next big idea came in the form of communicating the ? Younger Skin? concept using “Mistaken Identity? theme (source: MG Parameswaran’s Book). The brand has consistently developed this theme over these two decades of its existence.

Santoor is a brand has consistently understood the consumers and was not complacent to change. The brand was the first one to use a Mother and her five year old daughter to endorse the brand. Most of the ads showed spinsters in their campaigns while for Santoor, the protagonist were Mothers. But showing Mother as the protagonist had its share of issues also. The customers felt that since this brand is meant for adults, it will not be soft on skin. This made the company to change the size texture and the shape of the product. Indian women’s mindsets were evolving and breaking free from the traditional mindset.

The Mother-daughter equation and the campaigns set in the supermarkets, wedding and bangle shop did not do well with the achievement oriented customers. That was a message to the marketers that the product communication has to change. The achiever protagonist was introduced in 2004. The campaign showed the mother as a successful fashion designer with the same positioning and theme. The brand also extended itself to a range of beauty products and to talc. Now Santoor have face wash, talc, soap and fairness cream. Year 2006 saw a big change in the marketing strategy for Santoor. They move into celebrity endorsement.

The campaigns showed Saif Ali Khan (in North) and Madhavan (south) in the TVCs. The TVC’s shows these celebrities along with the Mother and child in the theme. Using a celebrity without a change in the overall positioning will have a positive impact to the brand. The use of celebrity will make the ad sticky thus making the campaign more effective. The brand is facing tough competition from heavy weights and is now seeking support from outside to stay as a leading FMCG brand. Branding strategies in FMCG Tea Category 9 Taj Mahal Tea Brand:Taj Mahal Tea Company: HLL Taj Mahal tea has changed its Brand Face (brand ambassador).

Recent TVCs show Saif Ali Khan endorsing the brand. Taj Mahal has been using the Tabla Maestro Ustad Zakir Hussain as its brand ambassador from 1990’s. Since Ustad Zakir was endorsing only this brand, the recall was high. Over the period of time, the brand ambassador became synonymous for the brand. Ustad and Taj Mahal were touted as the classic example of a successful celebrity endorsement. The collaboration with the brand and the ambassador went that far that Ustad once challenged in a TVC in 2001 that he will stop playing tabla if he come across a better tea. That TVC created lot of controversy. The new brand ambassador is Saif.

The new face may be an attempt to make the brand more contemporary. Ustad and his fans are getting older. Hence there is a chance that the new generation may miss out on the charm of Ustad (generation gap). So the attempt may be to make the brand relevant to the new generation. In theory we site examples where the users of the brand getting older and the brand not able to connect with new generation. HLL does not want this to happen with a power brand like Taj Mahal. Cosmetic Category Fair & Lovely: Chand ka Tukda Brand: Fair & Lovely Company: HLL Agency: Lowe Fair & Lovely (FAL) is the brand that revolutionized the Indian Skin care industry.

This brand is World’s first and largest Fairness cream brand with a presence in 40 countries and a value of around Rs. 6 billion. Indian skin care market was dominated by conventional beauty care products like Bezan, Multani Mitti etc. FAL changed all that. Launched in 1975, FAL is the product born in the Unilever research center. In 1988 the brand went international. FAL commands a market share of over 70% in the Rs 1000 crore fairness market in India. FAL virtually created and owned this category for long. In the fairness market, FAL enjoyed monopoly till Cavin Kare entered this lucrative segment with Fairever.

The success of Fairever prompted many players like Godrej to tap the market. Branding strategies in FMCG 10 FAL sustained the pressure from the competitor by careful branding and new product launches. The brand never failed to emulate and learn from the competitor . When Fairever launched the ayurvedic variant, FAL launched a much better variant. Competition is coming from Ozone Ayurvedics with their brand ? No Marks‘ tries to carve a niche. HLL countered with FAL Antimarks and launched a controversial comparative ad that took the steam out of ? No Marks‘. When Fairever launched the soap, FAL also responded with soap.

FAL never allowed the competitors to gain an upper hand in the market which it created. FAL achieved such tremendous success because of careful branding and ad campaigns. Initially HLL do some ugly talking about fairness. Some of the ads were controversial because of gender inequality and stuff like that. It was necessary at that period because the category was new and the brand should first talk about the need to be fairer. Now the brand has laddered up to more aspirational values like “Transformation of Women” The insight is that the transformation will be more than skin deep.

The ads showing a girl achieving the ambition of being a cricket commentator (a male bastion) were very much effective in connecting with the target group. HLL has also extended the brand to more aspirational values by launching Fair& Lovely foundation that works for Women Empowerment achievement and Transformation which are the qualities for which FAL stands for. FAL have also launched a premium sub brand Perfect Radiance to tap the premium segment of the market. Fair & Lovely was able to dominate the fairness market because of careful marketing and is a showcase of the marketing genius of HLL. Confectionary Category

Center Shock: Hilake Rakh De Brand: Center Shock Company: Perfetti Vanmelle Agency: O & M Center Shock is an interesting brands or rather it is a disruptive brand in the sense that the brand just makes all marketing theories look funny. Conventional marketing wisdom says that the product should deliver a promise and satisfy a need. Here is a confectionery brand that tasted sour making itself a market leader in less than 6 months time. Center Shock was launched in 2001 and at that time, the chewing gum market was at cross Branding strategies in FMCG 11 roads. The market lifecycle was at the decline stage.

Although the market was worth Rs 300 crore, it was declining at a faster rate at 25-30%. Perfetti then decided to break the category degrowth and make this category more exciting to the customers. This peculiar gum gave a distinct fruit filled acidic taste to the customer which really gave the customer a shock. The brand was an extension of the highly popular Center Fresh known for its Fruit Gel Center. Center Shock came in two flavors: Peach and Apple. Center Shock broke into picture through two clutter breaking ads crafted by O. The first ad of the barber created a huge impact in the market.

The ads won lot of accolades for O. According to reports, the brand became market leader within no time with a share of over 35% beating Center Fresh from the same company. The first TVC was followed by the second one featuring a dude visiting his girlfriend’s home to meet the parents. According to brand experts the creative brief for Center Shock was simple -break the clutter and make it funny and distinct and really shocking and the ads just did that. The brand adopted one of the funniest and best taglines ? Hilake Rakh De? which translates to ? Will shake you UP”.

The brand was positioned as a fun brand and customers liked the change. The brand had virtually shaken the market. During those days most of the chewing gum brands were sold on sales promotions and seldom marketers invested any thing more on ads. Center Shock brought back the trust on advertising in the category players. To sustain a brand like Center Shock for longer period of time is a difficult proposition. Although this brand had a very short PLC, the brand showed the power of advertising. A good advertising can make people eat a sour candy and be happy about it. Brand Positioning strategies for competitive advantage

In present scenario the consumer mind is cluttered with numerous brand names for various categories. So companies‘ strategy is to create a perception for their brand in the prospect‘s mind so that it stands apart from competing brands and approximates much more closely to what the consumer wants. One of the major contributions of positioning theory t marketing strategy is to bring out the concept of ? distance‘ and dissimilarity between brands in the ? perceptual space‘ of the prospect and to uncover the many opportunities for such perceived differentiation based upon the capabilities of the product and its antecedents.

These differentiation strategies revolve around different aspects of the brand which can be expressed as four questions- Branding strategies in FMCG 12 1. Who am I? This question deals with the origins of the brand, its parentage. The brand can be position with reference to its corporate identity or as an extension of a well established brand. 2. What am I? This question relates to the capabilities of the brand and can be further broken up: (a) Category-Related Positioning (b) Benefit-Related Positioning (c) Positioning by Usage Occasion (d) Price-Quality Positioning 3.

For whom am I? This is the strategy of positioning a brand for a carefully chosen target segment where it is the best fit and has competitive advantage. Any functionally similar products can be differentiated through positioning by different segments. Such positioning can be by demographic, behavioral, benefit seeking and psychographic segments. 4. Why me? All the above strategies should enable to create a distinct and persuasive perception of a brand. Aggressive marketing companies try to add to their brand a clinching advantage through some unique feature.

Positioning by competitor, that is through compassion with the main competitors, is another way to demonstrate a brand‘s superiority and answer the question ? why me? ‘ Interim findings and observation of the report One such intangible asset is the equity represented by a brand name. For many businesses the brand name and what it represents is its most important asset-the basis of competitive advantage and of future earnings streams. The first step in identifying the value of brand equity is to understand what it is-what really contributes to the value of a brand.

Subsequently look at several methods of placing a value upon a brand which will provide additional insight regarding the brand concept. And finally some issues facing those who create or manage brands will be introduced. Brand Equity It is a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm or to that firm customers. If the brand‘s name or symbol should change, some or all of the assets or liabilities could be affected and lost, although some might be shifted to a new name and symbol.

The assets and liabilities on which brand equity is based will differ from context to context. However, they can be usefully grouped into five categories: Branding strategies in FMCG 13 Perceived Quality Name Awareness Brand Association Brand Loyalty BRAND EQUITY Name Symbol Other Proprietary Brand Assets Provide value to customer by enhancing customers: Interpretation/Processing of information Confidence in the purchase decision Use Satisfaction Provide Value to firm by enhancing: Efficiency and effectiveness of marketing programs Brand loyalty Price/margins Brand extensions Trade leverage Competitive advantage Fig-Brand Equity (Source-D.

A. Aaker) Brand loyalty-for any business it is expensive to gain new customer and relatively inexpensive to keep existing ones, especially when the existing customers are satisfied with or even like the brand. The loyalty of the customer base reduces the vulnerability to competitive action. Competitors may be discouraged from spending resources to attract satisfied customer. Further higher loyalty means grater trade leverage, since customer expect the brand to be always available. Branding strategies in FMCG 14 Awareness of the brand- people will always buy a familiar brand because they are comfortable with the familiar.

A recognized brand will thus often be selected over an unknown brand. The awareness factor is particularly important in context in which the brand must first enter the consideration set-it must be one of the brands that are evaluated. Perceived quality-it will directly influence purchase decision and brand loyalty, especially when a buyer is not motivated or able to conduct a detailed analysis. It can also support a premium price which in turn can create gross margin that can be reinvested in brand equity. Further perceived quality cab be the basis for a brand extension.

If a brand is well-regarded in one context, the assumption will be that it will have high quality in a related context. A set of associations- the underlying value of a brand name often is based upon specific associations linked to it. Association such as Ronald McDonald can create a positive attitude or feeling that can become linked to a brand such as McDonald‘s. If a brand is well positioned upon a key attribute in the product class competitors will find it hard to attack. Other proprietary brand assets- brand assets will be most valuable if they inhibit or prevent competitors from eroding a customer base and loyalty.

These assets can be several forms. E. g. a trademark will protect brand equity from competitors who might want to confuse customers by using a similar name, symbol and package. Appraising brand assets Brand loyalty-what are the brand loyalty levels by segment? Are customers satisfied? What do exit interviews suggest? What are customer feedback regarding their problems with buying or using the brand? Awareness- what brand awareness level exists as compared to that of competitors? What could be done to improve brand awareness? Perceived quality- what drives perceived quality? What is important to the customer? What signals quality?

Are prices and margins are eroding? Brand associations- what mental image, if any, does the brand stimulate? Is there a slogan or symbol that is a differentiating asset? How are the brand and its competitors positioned? What does the brand mean? What are its strongest associations? Other brand assets-is there a patent or trademark that is important? Are there channel relationships that provide barriers to competitors? Branding strategies in FMCG Ingredients for Strategy 15 Creating a strong brand identity, leveraging new product categories and growing the customer base are core concerns for consumer product companies.

Firms are looking to maximize profits and market share in a highly competitive environment that includes such challenges and risks as demanding customers, consolidation and global expansion. The components of strategy would be- Financial Adi Godrej, Chairman Godrej Group stated, ? We are aiming to triple our turnover by 2012 by focusing on our fast moving consumer goods (FMCG) business — Godrej Consumer Products (GCPL), Godrej Sara Lee and Godrej Hersheys. At present the consumer goods turnover is Rs 2,300 crore and the group aims to reach revenues of Rs 8,000 crore for this business in the next four years.

We will also look at inorganic growth as a medium to grow.? In the process, the group would be investing Rs 100 crore per year on brand communications. So for any successful branding strategy Finance played a vital role. The brand salience requires advertisement in different media vehicle. Innovation from the inside out – R&D in the FMCG industry R&D plays a key role in helping FMCG manufacturers meet constantly changing consumer needs whilst driving down costs. The Fast Moving Consumer Goods (FMCG) industry is highly competitive and driven by consumer preference.

Research and development (R&D) and innovation, therefore, play a key role in helping manufacturers meet constantly changing consumer needs, whilst driving down costs. Hul Strategy We shall now take up one company, HUL (Hindustan Unilever Ltd) formerly HLL and see how the complex task of brand management is actually handled. This company is taken for this article as HUL is considered as one of the most successful in Brand Management . HLL has a large brand portfolio consisting of nearly 110 bands. In every product line, it has built a number of brands over a period of time.

Quite a few brands have come to its fold from the parent company. It has also acquired several ongoing brands from the market. HLL also vigorously pursues brand extension strategy. And concurrently, HLL undertakes line pruning and brand restructuring and consolidation, based on marketing compulsions. HLL is also playing the rejuvenation and relaunch game. With great benefit the corporate-level endeavors at business expansion and diversification are also throwing new challenges on the brand strategy front. HLL lends itself for a proper understanding of the complexity of the brand management task.

We shall examine how HLL handles the complex demands in brand management. Such an array of brands is the outcome of a conscious corporate strategy by HLL. As a corporate, HLL wants to be a leader in every one of its businesses and the strategy is to fight on the strength of the competitive advantage arising from the possession of strong brands. It is this strategy that is Branding strategies in FMCG 16 getting reflected in the development of a multitude of strong brands. If we take the business of bathing soaps, as an example, HLL has the objective of being a national player (not a niche or a regional marketer) and the leader therein.

HLL also wants about 30 per cent of the corporate income to come from this line. So, HLL opted for the strategy of developing quite a few strong brands in this line, and among them they cover different market segments and price points. Dove, Lux, Liril, Rexona, Pears and Lifebuoy are the outcome of such a well planned brand strategy implemented over time. Interview with an Industry expert In order to gain industry insight regarding the FMCG best practices in branding strategy I got an opportunity to have a telephonic interview with Perfetti Van Melle (India) Ltd.

Brand manager based in Delhi. (Due to some reason he does want to disclose his name. ) Q. What is your branding Strategy? A. We are currently managing 15 brands and for each brand we adopt differential branding strategy. But everything depends upon the distribution channel. So our strategies always focus to strengthen the distribution network. Q. What strategies you adopt to launch a new communication plan? A. It starts with Idea generation then financial investment. Under financial

Introduction

The decision to arrive at a specific brand name is one of the most crucial aspects in the branding strategy of any product before it is introduced in the market. The rapid industrialisation in the early part of the 19th century led to a shift in business emphasis from the cottage industries to well organised and automated industries and heralded the advent of the packaged goods. These factories which produced goods by volume and quality, catered for a larger demographic population scattered over a wider areas compared to the cottage industries, but they encountered stiff resistance from the customer base who refused to change loyalties and preferred to retain the use of products made locally. The packaged goods manufacturers needed to convince the market that the public could place just as much trust in the non-local product.This dire need of the manufactures to enhance customer awareness and familiarity with their products led to employment of brand names by the companies.

The modern concept and practice of branding is much more holistic and refined as compared to its earlier counterpart, and today branding implies a wide range of issues like trust, range of products, origin, quality, youthfulness, fun luxury etc. In the European context, though brand Pepsi is not synonymous with either the source or origin or product range; in recent times, it has emerged as the most significant factor contributing substantially to the company’s merchandising efforts. The brand value and significance will gain more prominence in a market teeming with competition and marked by increasing consumer awareness.

Brand is a word, mark, symbol, device or a combination thereof, used to identify a particular product or service(Kotler 1984, Kotler and Armstrong 1994,). A brand is a symbolic means of conveying all aspects of information pertaining to the product and helps to create associations and expectations around it. The definition clearly emphasises on the function of a brand, that is, to identify, irrespective of the specific means employed for the identification.

Brand name is a term, symbol, design, or a company-specific name for a particular product or service or combination thereof that identifies and distinguishes a seller’s products or service from competitor’s offerings. When both the definitions are compared, it emerges that essentially, both terms serve the same purpose, which is to effectively project and establish the identity of the product concerned. Brand name is a word or a combination of words/letters that is pronounceable, e.g., Pepsi Co. Europe Plc.  Since a brand name serves to establish a distinct identity of a product and distinguishes it from the offerings of the other players in a competitive marketplace, it follows that the unique identity of each brand name has to be jealously guarded and protected by law.

Problem Discussion

Advertising prevails in all walks of human life and it has acquired the distinction of being the most visible and glamorous method of marketing communication in Europe. Advertising is defined as any paid form of non-personal communication and promotion of ideas, goods or services by an identified sponsor through any media(Dunn ; Barban 1978). In the present context, the major marketing and communication functions performed by advertising include: to inform, entertain, persuade, influence, remind, reassure and add value to the product or service advertised (Arens 1996). Advertising is used to establish a basic awareness of the product or service in the mind of the potential customer and to build up knowledge about it(Morden1991). Before commencing a comprehensive discussion/analysis about the role of advertising and the management aspects pertaining to advertising, it would be essential to deliberate on the various types of advertising and their impact on Pepsi, study Pepsi’s standing in comparison to its peers and examine its long term strategies.

The aggressive and often modified content of advertisements by the concerned companies has been severely criticised for the negative social and economic consequences and have become the subjects of continuing debate. A study of the arguments put forward with regard to advertisement leads to the emergence of   two contrasting view points: one which considers advertising as effective information disseminating tool and the other which views advertising as a source of market power.

On balance, advertising has carved an indispensable place for itself in the marketing mix of a firm. The impact of advertising on the company’s revenues and performance is likely to be more pronounced and substantial in the following situations:

• When buyer awareness is minimal.
• When industry sales are rising rather than remaining stable or declining.
• When the product has features normally not observable to the buyer.
• When the opportunities for product differentiation are strong.
• When primary instead of secondary motives can be tapped.

If the above mentioned conditions exist in the market place and the advertisement conveys the uniqueness and the distinct values of the product, thereby impressing the potential customer, then a brand name is created, which in turn is the first step in the quest for achieving a sizable market share.

Purpose and Research Questions

In modern times advertising prevails in all walks of human life. It has acquired the distinction of being the most visible and glamorous method of marketing communication and has helped sustain consumer brand preferences in Europe.

We may approach the goal by discussing the important aspects which merit detailed analysis:

What is Pepsi branding? The brand name ‘Pepsi’ has emerged as one of the most important elements of merchandising and its influence will enhance commensurate to the increasing severity of the competition in the market place. Brand is a word, mark, symbol, device or a combination thereof, used to identify a particular product or service. The definition focuses on the function of a brand rather than the specific purpose employed for the identification.

What role does advertising play in influencing the consumer’s brand preferences in Europe? Advertising affects consumer preferences and tastes; changes product attributes and differentiates the product from competitive offerings. Consumers become brand loyal and less price sensitive, and perceive fewer substitutes for advertised brands. The purpose of advertising is to enhance potential buyers’ responses to the organization and its offering, and it seeks to do this by providing information, by channelling desire, and by supplying reasons for preferring a particular organization’s offer(Kotler 1988).

How are advertisements in Europe customized to appeal to Europeans? Advertisement provides potential consumers with an easy means to compare competitive offerings in a highly competitive marketplace. In Europe, advertising serves to  inform consumers about product attributes and do not change the way consumers value those attributes.

Demarcations

To facilitate the realization of advertising objectives, it is necessary that these are laid down in specific operational terms and are linked to the time p during which these are to be accomplished. The research on the practices of corporate has revealed that corporates in Europe pursue a wide spectrum of advertising goals at different time periods and in relation to different products. Even similar companies placed in more or less similar market situations pursue different advertising goals depending upon a host of factors like advertising philosophy, past experience and the level of expertise existing in the company.

An analysis of the advertising goals pursued revealed that these basically focused on moving the customer from one stage of the purchasing process to the next, expansion of the market share and creation of favourable image, and the overall objective of improving sales. The objectives set, in general, lacked specific mention of the per cent of target market to be reached and influenced.

Outline of the Thesis

Brand management is one of the most important areas of marketing especially with reference to consumer products. For Pepsi in Europe, advertising is an impersonal mass selling and communication method. It makes use of various types of media to reach the target public in a proportionately short-time. Being persuasive in nature, advertising broadly aims at gaining exposure, creating awareness, changing attitudes of target customers in favour of sponsor’s products and services, and also at effecting sales and improving corporate image. Besides, it can also act as a good offensive/defensive tool in managing competition.

Management of effective advertising requires that the process be initiated by setting up measurable and realistic goals. The advertising objective of a firm involves determining the advertising budget required the message to be formulated, development of the project, and selection and scheduling of media. Concurrently, the process of identifying and calculating the economic, demographic, cultural and psychological profile of the target customers should initiate the process of detailed planning for the advertisement. This should be followed by selection of appropriate appeals, proper illustrations and unique themes in the language the audience understands, and the process of communicating to the intended customers through appropriate media having a meaningful reach and desired credibility.

Pepsi Co. – Consumer Brand Preference

The present study aims to understand the Pepsi brand amongst consumers and to study the effects of advertising amongst the European consumers. The organo-gram above outlines the study strategy and covers the fields for the respective study analysis. It also outlines an interview diagnosis amongst prospective customers and strategic analysis of competitor branding and advertising strategies.

Reference

1. Arens, F. Contemporary Advertising. USA: Richard D. Irwin, A. Times Mirror Higher   Education Group Inc. Company(1996)
2. Dunn, and Barban. Advertising, it’s Role in Modern Marketing Advertising, it’s Role in    Modern Marketing. (1987).Hindsdale, Illinois, U.S.A.: Dryden Press.
3. Kotler, P. Marketing Management: Analysis, Planning, and Control(1984) p. 482. Prentice-       Hall,             Englewood Cliffs, New Jersey
4. Kotler, Philip and Armstrong, Gary Principles of Marketing, (1994) Prentice Hall,Englewood    Cliffs, New Jersey p. 285.
5. Morden A.R  Elements of Marketing. London: D.P.Publication Ltd(1991)

Changing ideas, beliefs and values impacts an individual’s self-schemas and ay lead to a changing of consumer behavior or the removal of behavioral constraints (Blakeley, 1996). Self-concept can be described as multi-faceted (Arnold, et al, 2004), and includes a collection of images, activities, goals, feelings, roles, traits and values. These play a part in different aspects of an individual’s perception Of self. The Me-self (Mead, 191 3) can be considered the socialized aspect of the individual and represents a constructed self- image from learned behaviors, attitudes, and expectations of others and society.

The Me-self has been developed by the knowledge of society and social interactions and is considered a phase of self that is in the past (Mead, 1913). The I-self however, plays the role of the active observer, the knower, or the information processor (Arnold, et al, 2004). The ‘l’ therefore, can be considered the present and future phase of self and represents an individual’s identity based on the response to the “iv aspect (Mead, 1913). For example, the ‘I’ understands how society says an individual should behave and socially interact and they align with the perceived set standards, and that notion becomes self.

The ‘Me’ and ‘l’ have a didactic relationship, almost like system of checks and balances. In essence, the Me-self prevents an individual for example, from breaking the rules or boundaries of societal expectations, while the I-self allows the individual to still express creativity and individualism (Mead, 1913). The I-self and me-self further interlink and enables an individual to understand when to possibly push boundaries that govern social interactions (Mead, 1913).

Charles Cooley’s (1988) concept of the looking glass self, states that an individual’s self grows out of social interactions. The view that an individual has of themselves comes from the interpolation of personal qualities and impressions of the perceptions of others (Isakson, 2013). Cooley’s (1988) concept on the looking glass self describes that how we see ourselves does not come from who we really are, but rather from how we perceive how others see us.

This can influence the monitoring self of consumer where a high self-monitor individual may be more highly concerned about how they are perceived by others and may change their behavior to be viewed in a more positive manner rather than a low self-monitor individual, who may have stronger self beliefs and may tend o behavior more consistently (Arnold, et al, 2004). The extended self, as theorized by Russell Bell (1 988), comprises of external objects, in which the emotional attachment to those objects become perceived as being a part of ourselves.

Our possessions are a major contributor and reflection of our identities and this construct of the extended self involves consumer behavior rather than buyer behavior (Bell, 1988). Marketers are interested in the concept of the extended self as consumers regard possessions as a part of themselves and this would enable understanding of consumer behavior and consumption patterns. The most direct form of evidence by Bell (1988) supporting his theory on the extended self is found in the nature of self-perceptions.

Firstly, Bell (1988) found that the extended self was not limited to external objects and personal possessions, but also included persons, places as well as body parts and vital organs. This thinking is used especially when marketing goods with connotations of patriotism in most of the world. For example, the slogan used by the famous soft drink company L&P ‘ rural famous in New Zealand”, appeals to and makes potential nonusers highly involved if they consider New Zealand part of their extended selves (Watson, 2001).

Bell (1988) further argues that perceived characteristics of an object may not always correspond with the perceived characteristics Of self. To demonstrate, he proposed that an individual can consider an object like the Statue of Liberty to be a part of themselves, but not actually holding a self-concept composed of characteristics attributed to the statue. Marketers are interested in the concept of self because it is much more than just brand or brand image. Non-brand images, such as example a cigarette smoker or a person with a Ferreira can contribute strongly to self.

Post-acquisition object bonding, which may happen after buying a dog can be identified by marketers as a possible strong influence to the sense of self (Bell, 1988). Marketers are interested in the role possessions play in influencing and shaping an individual. For example, after buying a dog, advertisements about dog food, which have never appealed to the individual before, now do. Marketers can play a persuasive role in stimulating need recognition to the individual brought about by their purchases.

Besides intro over objects, control by objects, as Bell (1988) theorized may also contribute to an item being viewed as a part of self. We may impose our identities on objects but possessions may also impose their identities on us (Furry, 1978). The longer we possess or get possessed by the object, the more a part of self it becomes (Furry, 1978). Marketers use this knowledge of the extended self in the form of samples, test drive with cars, 10 day free trials with products.

Understanding self-concept helps marketers realism that time spent with the product or object is time that an individual may feel more notionally attached to it and have a harder time parting from it. The concept of extended self is of high interest to marketers as the digital age is a relatively new phenomenon. In the digital world, there are a number of differences with concept of the extended self, mainly due to the destruction by the advancement of technology (Bell, 2013). This means that the numerous objects that were marketed to individuals can now be accessed and complied into one platform.

Furthermore, it creates different ways that individual interact with and project themselves onto others (Bell, 2013). However, Bell (2013) proposes that an individual may have a different online persona as compared to offline. A marketer’s interest lies in the understanding of an individual’s online sense of self, for example, a consumer purchasing from an online website to accurately interpret the individual’s online attitudes and beliefs. Self-concept consists of two dynamic processes, interpersonal and interpersonal.

Within the facets of self, these two processes play an influential role. The interpersonal process is an individual’s cognitive processing, affect and motivation (Archer, Gurney and Moan, 2013). The interpersonal process makes up the I-self and has socially-developed self- knowledge involving goals, strengths, limitations and moods. This process interacts with the external interpersonal self, which includes social perception, choice of situation, interaction strategy and reaction to feedback (Arnold, et al, 2004) and vice-versa.

Marketers are interested in understanding interpersonal and interpersonal processes as individuals’ perceptions are generally different from One other. This is due to an interpersonal self shaped around each individuals own personal experiences. Individuals act based on what dynamic self process they are feeling at that time (Arnold, et alarm 2004). Therefore, marketers would better understand their target market by having apt knowledge of these two processes. Possessions are not only considered a part of self, but also are important in the development of self (Bell, 1988).

This contributes to the self-narrative of an individual which comprise of coherent stories and personal experiences that provide a sense of continuity in time and space (Arnold, et al, 2004). Marketers are Interested in the self-narrative of individuals as they can arrest goods to support this, for example, photos albums. Photo albums provide an individual with the means to document highlights of their lives which can be viewed at any time they so desire. These possessions seem to contribute to the maintenance of the self-concept and narrative as such objects act as reminders or conformers of our identities (McCracken, 1987).

With age, an individual’s boundary of self develops as it goes through multiple role transitions (Rosenberg-Walton 1984, p. 352). Transitions are of interest to marketers as an individual’s self-concept is changeable and is especially yeoman during certain transitions (Arnold, et al, 2004). A consumer’s role transitions are marked by changes in consumption patterns (Arnold, et al, 2004). For example, buying a home, graduating from University, or having a baby can be key role transitions in an individual’s life. Role transitions can also be linked with a consumer’s levels of self-esteem.

The positivist of a person’s attitude towards him/herself plays an influential role in their behavior and consumption choice (Arnold, et al, 2004). Low self-esteem can be related to concerns over the looking glass self which in turn influence impulsive purchasing (Arnold, et al, 2004). Marketers can play a key role in increasing the level of involvement and marketing goods which reflect the individual’s’ self traits to support the transitions. Marketers can use the concept of the changeable self to add or strengthen beliefs in an individual.

This can influence an interpersonal process that consumers go through, self- gifting. Self-gifting frequently carries messages about an individual’s self- distinctiveness, for example, brand slogans which have the phrase ‘Like no other’ (Arnold, et al, 2004). Individuals increasingly seek pleasure in objects hat they buy for themselves as gifts (Kara, 2008). This may be attributed to a positive feeling of accomplishment (Kara, 2008) and consumers may appeal to brand slogans with the phrases ‘reward yourself or ‘you deserve it’.

In conjunction with this, self-gifting can also occur as a response to a negative attitude brought about by, for example, feelings of stress. Grub and Growth (1967) state that goods are symbols which communicate a message between an individual and society or their significant others. Consumption communicates socially shared meanings about identity (Arnold, et al, 2004). If a product is to serve as a symbol as a communication device, it must be first gain societal recognition (Grub & Growth, 1967). This process is essentially a classification system which places these products to others in society.

These classification systems are society’s way of piecing and organizing their activities in a sensible manner (Grub & Growth, 1967). Fashion as an example, illustrates the link of symbolic classification and consumer behavior. When a particular style of fashion becomes popular, a segment of society may direct their behavior towards the archiving and consuming of items manifesting this style (Grub & Growth, 1967). Therefore, an act of classification not only directs self action, but also a set of expectations may be aroused towards the object classified (Grub & Growth, 1967).

Marketers need to understand the essence of the object resides not in the object itself but in the direct relation between the object and the individuals classifying the object (Grub & Growth, 1967). Self-enhancement can be brought about by the purchase and consumption of goods in two ways. Firstly, an individuals’ self-concept ill be maintained if they believe the good is societal accepted and classified in a manner that matches their self-concept. A product as a symbol contributes to one’s looking glass self as the products’ conveyed meaning creates symmetry matching the image an individual has of themselves.

Secondly, an individual may receive either positive or negative reinforcement from significant others and this strengthens their self-concept with growth and change based on desired reactions from society (Sequester, Pettier, Spanish, Raw Hill, 2014). Marketers are interested in this area of self as it splays image congruence where self-concept is enhanced through the transfer Of socially accepted meanings Of the product or brand (Arnold, et al, 2004). An individual’s self schemas can be used by marketers to market goods which align with an individual’s beliefs (Peter & Olson, 2010).

This concept of self-enhancement directs consumer behavior to use goods to close the gap between actual and possible selves. These possible selves can be past, present or future. Consumer nostalgia as a past possible self is a powerful and rich tool that marketers can use to tap into an individuals’ self. Nostalgia stems from a consumer’s yearning for the past, often dissatisfied with the present state and coming future and to compensate, an individual may purchase vintage or retro looking goods to ‘bring them back to their perception of the golden ages (Shah, Lie, Teen & Lu, 2014).

The similar concept may be applied to a future desired self in the form of anti-gambling advertisements. An individual may begin to increase their involvement towards their desired gambling-free self and may start to pay for counseling services to achieve this. In conclusion, the concept of self is multi-faceted and interrelates with one another, influencing behavior. The sense of self, socially created, is dynamic with consumers’ motives playing a part in their consumption choices to develop or maintain their concept of self. Our possessions are a reflection of our identities and an expression of our beliefs.

This shoe placed Nikkei on the map, and after it came out, all other brands had to offer similarly shock-absorbent soles. In 1972, Phil Knight (Nines founder and current CEO), was able to convince several marathoners to wear Nikkei shoes during the Olympic trials in Eugene, Oregon, where the company started. Later, Nikkei ran a campaign saying that “Nines were worn by four of the top seven finishers”. Sponsorship had begun. In October 1 982, Nikkei aired its first three national television ads, during the broadcast of the New York City Marathon.

They ran TV commercials cause back then it was so easy to target their audience: most of them would be watching the marathon. There were fewer channels and fewer media outputs. About Nikkei & Product Positioning Nikkei was named after the Greek goddess for ‘Victory’. Today, it dominates the global sports footwear market. The company started focusing on making running shoes, but over time they became associated with the athlete subculture, which allowed them to expand into other areas. They learned they had to stay within the athletic category though -they tried selling everyday shoes and it didn’t work out.

Currently, it’s the largest seller of athletic footwear and athletic apparel in the world, with over 700 stores worldwide, over 40,000 employees and generating more than $21 billion a year in sales. It’s recognized everywhere by their trademark “swoosh” logo. History Brand Overview Nikkei advertising has become one of the most effective emotional branding examples in the marketing world today. They use the old technique of Heroism to inspire customer loyalty all over the world: the battle is between our lazy side and our healthy side. Our laziness is the villain, and we become the heroes.

We all see the hero in ourselves, and therefore this message appeals to everyone on the planet. The brand strategy isn’t to make you think you need Nikkei gear in order to succeed, but that you actually want it because you succeed. The product is downplayed, and the ego of the customer is lifted up. The Product Dream We are all athletes. We are all heroes. We achieve great things. We win, every single battle. Garage Newell talks about a 5-step formula, that he claims is present in every Nikkei commercial, and it shows the hero overcoming great struggles. That’s the promise: you are a winner, that’s why you choose Nikkei.

Brand equity is one of the greatest widespread concepts in marketing currently. It is the additional esteem that a brand conveys to a product or service past the useful advantages provided. Advertising is an effective and powerful marketing tool adopted by marketers to create and promote awareness for their products or brands. Among the many forms of advertising celebrity advertisement is more popular and attractive. Celebrities are famous figures who enjoy public reputation on behalf of consumer goods.

All over the world celebrities as spokespersons have been used for promoting wide varieties of brands. The aim of the paper is to analyse how far the presence of a celebrity in an advertisement enhances brand equity. Five key attributes of the celebrity are analysed against the various components of brand equity and the result reveals that the celebrity endorsement acts as an effective source of promoting brand equity. The study aims to know the positive effect of celebrity underwriting on mark image and discover the most visible variables part in the achievement of a support and to investigate the connection amongst brands and the customer mind and decide a basic key territory to think while going for any big-name support.

The objectives of the study is to examine the influence of celebrity endorsement on components of brand equity and to analyse influence of brand over celebrity endorsement. The problem states that the consumer perception of celebrity personality has an effect on brand personality and buying behaviour. Celebrity support is one of the publicizing systems organizations use to make mindfulness and increase positive reactions about their products and services.

The Effects

Endorsements by superstars have started since a long time. Regular shoppers are presented to a great many voices and pictures in magazines, daily papers, and on announcements, sites, radio and TV. Every brand attempts to steal at least a fraction of a person’s time to inform him or her about the different attributes of the product that is available in the market. The challenge of the marketer is to find a hook that will hold the prospective customers and their attention to create demand and to increase the sale for the products of a particular company or brand that is available in the market. In favour to attain this, use of celebrity endorsers is a broadly used as a marketing strategy.

In this procedure, the organizations employ famous people from a specific field to highlight in its notice encounters. The special highlights and pictures of the item are coordinated with the celebrity picture, which has a tendency to convince a shopper to pick a brand from an assortment of alternatives accessible in the market. Despite the fact that this sounds truly basic, yet the plan of such movements and the later achievement in accomplishing the desired outcome simply after a top to bottom knowledge of the product, the brand objective, decision of a celebrity, connecting the big name with the brand, and a structure for estimating the capability.

Businesses capitalize huge sums of currency to support their products with endorsers. Such endorsers are seen as first-class with both attractive and magnificent features and associations organize that these highlights are replaced to products by means of advertising communication activities. Besides, every product has an image. The purchaser endeavours to consume a brand which is more agreeable and reasonable with his or her own particular identity or picture. The celebrity endorser attempts to bring the picture of the item closer to the desire for the purchaser, by exchanging a portion of the social implications living in his picture to the item.

The general conviction among marketing experts is that brand communication messages passed on by celebrities and well-known identity characters creates a higher interest, assumed and review than those executed by non-superstars. The fast message-reach and effect are very basic in the present exceptionally aggressive competitive environment.

Celebrities have additionally been sought after having prevailing with regards to being powerful by surpassing the messiness and catching the eye and focal point of the shopper. They additionally prevail with regards to making a desire in the minds of the purchaser to get what their most loved celebrity endorses.

Each Advertisement intends to make mindfulness and stimulate enthusiasm for the brains of clients. To do as such sponsors utilize a few of showcasing procedures. Celebrity Endorsement is one of these power tackles by which sponsors attempt to use the picture and recognizable proof of the Celebrity to advance an item or organization. This makes the promotion cheerful, attractive, fascinating, as well as eye-catching also.
Currently, many organizations spend through billions of dollars for every year on celebrity support to make the great or positive mindfulness their items. Critical objective of celebrity endorsement is to achieve a favourable impression on brand image. Firms trusting that the intensity of a brand lies in the minds of existing or potential clients and what they have encountered directly or indirectly about the brand, adopt key brand administration approach, utilizing celebrity endorsement and brands. It so happens because audience takes the celebrity as a role model and in turn attractiveness, expertise, trustworthiness, brand trust, celebrity endorsement, consumer based, brand equity, brand loyalty, perceived quality, brand association, etc impact their lives. This coordinate likewise turns out to be fruitful in light of the fact that the consistency of highlights from the celebrity and the item focuses on the abilities of the customer definitely and prompts the improvement of great judgements about the brand.

Objectives of the study and research questions

• Does celebrity endorsement do influence the brand company positively?

Ans. Null Hypothesis= Celebrity endorsement does not influence brand equity of the company.
Alternative Hypothesis = Celebrity endorsement positively influences brand equity of the company.

• Does the brand influence celebrity endorsement?

Ans. Null Hypothesis= The brand does not have any influence of celebrity endorsement.
Alternative Hypothesis= The brand significantly influences Celebrity Endorsement.

• Does the celebrity personality have any impact on brand personality and buying behavior?

Ans. Null Hypothesis= Celebrity endorsement does not have any impact on brand personality and buying behaviour.
Alternative Hypothesis= Celebrity endorsement have impact on brand personality and buying behaviour.

Based on research question hypothesis is formed.

Research Methodology

In order to answer the research question and achieve the research objective recognized for this research, an empirical research method is adopted. In this research a quantitative research approach was applied to suit the content of the research. A questionnaire survey was conducted to give a quantitative view of this research.

30 items (questions) and sampling is snow ball theory, google survey was conducted, 100 consumers in the city Bangalore.
Based on the primary data statistical analysis is done.

As stated in “Brand Durability Challenged” (201 1) people usually feel connected with and loyalty to the brands that have been in the market for many years. “Credibility, quality and consistency’ (Moisakos, 201 1) of the old brand can build consumer loyalty. The connection between people and brands might be the reason why most people usually buy the same thing over and over. This idea can be related to Civilian(2007)g’s idea that people usually buy things that they know about because they feel safe and comfortable with, and they think those products are good.

According to Westbound (201 0), it has been discovered that more than half of the consumers who participated in the latest consumer survey decided what brands to buy at the store. If there are two products with same prices, they often choose the one with a brand because many people use it. To illustrate, Caviar (2007) reports that a study by Stanford University found that when the exact same food was given to children-the only difference being the container in which it was served-, most of the children said that the food that was in McDonald’s packaging tasted better.

In other words, people have a mind-set that products with brands have better quality than those without brands. On the other hand, according to the article “Are you wasting money on brand names” Consumer Reports has done a survey and seventeen percent Of participants thought that name brand food contained more nutritious than other products. However, it is discovered that there are no big differences between nutrition of the tested products which are both brand name products and store brand products. Many consumers are proud of themselves when they use brand names products.

These products usually include cars, clothes, and electronic devices. People have good feelings when buying those products. They feel confident to go out of their house with Nikkei shoes, Levies t-shirt, and Gucci bag. Those are popular brands for clothing and they are very expensive. People go shopping for these brands because they want to show off and feel rich. A great example is about the t-shirts. Nikkei t-shirts are more expensive than other t-shirt without brand, but people still want to pay more for it. Martin (2003) reports that even though Nikkei is accused of labor abuse, Nikkei still succeeds in building image of its brand.

A lot of people still feel good with it, and they still buy its products. This makes it obvious how much consumers treasure their identification with the image of Nikkei. On the other hand, it is obvious that if a product or a brand has a bad image, not many people will want to buy that product or that brand because they think that it might lower their look. The image Of the brand is an important factor Of consumer’s purchasing decision. In the civilization, most people like to follow the majority because they like to be part of the group.

In Caviar’s article, Dan Goldstein, an assistant professor of marketing at London Business School, says that “People tend to believe, If I’ve heard of [a product] before, it’s probably because it’s popular, and popular things are good. ” This quote shows that people in today’s world like popular things. Brand names are usually popular and people purchase them because of their popularity. Advertising is one way to introduce a product to consumers. According to Marksman(2011), people were requested to see a line of BBS (BOBBY), but there was also a “b” in some lines(Bobby).

They were asked to count the line with “b”. Before each line was shown, fifty’ percent of the respondents saw the brand name of the ice tea. After the test was done, people, again, were asked to choose the drinks. The choices are the ice tea and water. People who were thirsty chose to drink the ice tea more than water. The example can demonstrate that advertising can also be a part of reasons why people choose a particular product. Reputation is not only the reason why people choose to buy a brand name product, but design of sound and logo of the brand name is also another important factor.

Using celebrities in an ad campaign is a poor way to stimulate brand appeal Using celebrities as brand ambassadors has become very popular and is one of the more common communication strategies employed by companies today in order to market their products. Marketers pay millions of dollars to celebrities in the hope that their star magic would make the product more appealing and successful. But all celebrities glitter is not gold. There are many reasons as to why using celebrities in an ad campaign can turn into an ugly affair, sometimes enhancing attitude change towards the product altogether.

In this report, I will list the disadvantages of using celebrities in ads and the reasons behind why they are a poor way to stimulate brand appeal. 1) Price It is very expensive for companies to hire a celebrity as its brand ambassador. It is important for companies to note that when they do decide to take the brand ambassador route, they should be willing to shell out millions of dollars, and sometimes even lose it. Nike signed Tiger Woods on a 5 year $ 125 million contract, Reebok signed Venus Williams for $40 million and more recently, Pepsi teamed up with Shaquille O’Neal for a reported $25 million.

For big companies such as Nike, Reebok and Pepsi, the financial implications of the deals involved would probably not affect them as much as smaller ones. With this in mind, it is also important to note that consumers today are becoming more advertising savvy. They read about the multi-million dollar deals as well. This leads to more consumers asking, “Are we buying the product, or the celebrity? ” 2) ‘Vampire Effect’ A common marketing term, this refers to the point where the celebrity in question overshadows the brand itself.

Marketers face this problem when they pick an extremely popular star, and the audience’s attention is drawn to the celebrity rather than the product. A very popular example of this scenario occurred when Cable Association used Dawn French. They soon had to abort their entire campaign when she got in the way of effect communication. 3) Credibility & Inconsistency One of the main reasons as to why using celebrities in an ad campaign is poor for brand appeal occurs when the personal credibility of the celebrity involved drops.

This has occurred several times over the past couple of years. When Kate Moss, a well known model, was pictured snorting cocaine, three of her sponsors immediately pulled out. After all, imagine how a mother who has lost her daughter to drugs would relate to the brand. Another example was when Kobe Bryant, a leading basketball star, was accused of rape in 2003. His celebrity brand partners, Nutella and McDonald’s, chose not to renew contracts with Bryant, even though he was subsequently acquitted of all charges. Many companies also resort to sports starts when choosing a celebrity.

While the personal credibility of the sportsman remains intact, his performances in the arena may sometimes suffer lapses. A famous example of this occurred when Sachin Tendulkar, one of the best cricketers in the world, went through a prolonged lean patch. This lead to Pepsi dropping him as its celebrity face and they instead opted for a younger generation of cricketers instead. The credibility of the celebrity involved is vital because when the company decides to use one, they are not only buying a channel via which they intend to sell their product, but also an image. 4) Multi-Brand Endorsement

At the end of the day, when a celebrity decides to endorse a product, it does not guarantee that they are actually using the product itself. More likely than not, they are endorsing the product purely for the monetary benefits, and this might sometimes lead to complications, especially when one celebrity appears in many ads in a short p of time. Take for example, MRF (tyre company), one of the early sponsors of Sachin Tendulkar. With its logo embezzled on his bat, the partnership between celebrity and brand was strong. Consumers could relate to the star, and in turn, the product.

Today, however, Tendulkar endorses a mirage of products, and the novelty of the original partnership has died down significantly. Consumes are often left disillusioned and are sometimes forced to ask the question, “If the endorser can’t stick to one product, why should I? ” . Celebrity overexposure can often undermine the authenticity of the message. Another form of multi-brand endorsement might occur when the celebrity endorses one brand but is publically seen using a competitor’s. For example, when Britney Spears was pictured drinking Coca-Cola (pictured left), while employed as the face of Pepsi.

Or when David Beckham shaved his head soon after becoming the face of Brylcreem. Consumers notice this and often realize that celebrities need not have any relation to the product itself, and hence the entire essence of using celebrities in ads is questioned. 5) Marketing Mismatch When celebrities are used in ad campaigns, they display a certain special persona for the audience. The entire point is that they are able to influence the thought process of the consumer and create a positive perception of the brand. An approving nod from a famous actor or sportsman can directly lead to a 1000 more sales.

With this in mind, it is paramount that companies use celebrities who they know can relate to and sell their product. Take a bad example, pictured right, of Ronaldhino (football legend), selling Konica Minolta printers. Not only did the picture lead to consumers questioning the connection between celebrity and brand, but also put the brand in bad light. In conclusion, while the use of celebrities can sometimes prove beneficial, especially to the profitability of a relatively unknown product, there are several points that need to be taken into consideration.

Marketers, especially in today’s cluttered media environment, resort to celebrities if they lack an original idea, or want to take the ‘easy way out’. Consumers too are becoming aware of this and are starting to notice the fact that celebrities need not necessarily support their brands. Furthermore, celebrity endorsements cannot change the entire thinking process of the consumers, and as such, does not justify the high cost involved either. References Pictures: 1) http://hollywoodsnark. com/wp-content/uploads/2007/03/pepsi_girl_britney_spears_drinking_coke_2. jpg 2) http://rawstylus. wordpress. om/2008/02/12/596/ Text: 1) http://www. hollywoodreporter. com/hr/search/article_display. jsp? vnu_content_id=2030984 – Article on ‘Celebrity Branding- Making the brand’ 2) http://www. rediff. com/money/2003/dec/05guest. htm Article on ‘Is celebrity advertising effective’. 3) http://en. wikipedia. org/wiki/Celebrity_branding 4) http://www. brandrepublic. com/Industry/Entertainment/News/235197/When-celebrity-brand-partners-go-bad/ Article on – ‘When celebrity brand partners go bad’ lifestyle. in. msn. com/fashion/article. aspx? cp-documentid=1671484 ‘Celebrity endorsements enhances brand appeal’