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Why Celebrity Endorsements Get Your Cash Register Ringing

celebrity-endorsements-improve-sales | Photo courtesy of	Be the Change, Inc.	http://www.flickr.com/photos/bethechangeinc/2850121350/sizes/q/in/photostream/Word-of-mouth marketing can go a long way, especially when it comes from a celebrity.

A couple of grocery chains cited in a recent article on SupermarketNews.com have realized this effect and are taking advantage of it.

A Texas-based grocery retailer has product displays featuring items endorsed by Dr. Mehmet Oz, a health expert who started on the Oprah Winfrey Show. The grocer works with suppliers to make sure the store has enough product in stock before the mad rush following the endorsement.

A Minnesota-based grocer also heard from a distributor about another product that would be featured in an upcoming Dr. Oz show. So the store manager stocked up on the product, ensuring that the store would have enough to handle the “Dr. Oz effect.”

Oprah made so many millionaires. All she had to do was mention a product and sales went through the roof. The influence these celebrities have is incredible. It doesn’t matter what the product is; they talk about it and promote it, and the effect is extreme.

People want to be associated with success and celebrities are successful people. Dr. Oz has a cult following and his recommendation means a significant increase in sales for that product. How does the retailer figure out what the next big thing is? Once they figure it out, they need to put enough on the shelf to satisfy the exploding demand.

Source: Supermarket News, June 2012

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Editor-at-Large

Randy Misener, Editor-at-Large
Randy Misener is the Industry Executive responsible for Enterprise Retail Management solutions at Avanade. Majority owned by Accenture, Avanade was founded in 2000 by Accenture LLP and Microsoft Corporation and has approximately 15,000 professionals in more than 20 countries.