Many of us watched the Oscars Sunday night. Besides the
typical best and worst dressed gossip, the Oscar goody bags also took the spotlight.
These goody bags are given to the “losers” and are called “Everybody Wins at
the Oscars Nominee Gift Bag”. This year the gifts were worth approximately
$160,000 including gifts of herbal tea lollipops, personal fitness sessions,
head-support pillows, liposuction, car rentals, a visit from a psychic
($20,000), and much more. The immense worth of the goody bags has shocked many
this year. The gifts seem a bit excessive in my opinion, especially because
many of the stars want to send images as philanthropists or were calling for
equal pay. It seems hypocritical. I am sure that many would rather see the
money spent on the gift bags sent to philanthropic organizations or to people
in need. However, there is also the business point of view. Many businesses
want their products to be promoted by celebrities to encourage growth in their
businesses. Several of these businesses are new and this publicity will help
them get awareness through this marketing tool.
Questions:
Do you approve of the goody bags?
Do you think the money should go to a “good cause” or to the
stars?
What do you think of the business/marketing aspect?
3 comments:
I think that the goody bags seem like a waste of money, but then again, the Oscars have been used as a way of promoting brand names and businesses for a long time. I doubt anyone spent actual money on those bags; nominees were given these gifts as a way of promoting products in the same way that powerhouse fashion labels dress celebrities for free to get their name out. It's a smart marketing strategy, and Hollywood, as an institution, completely relies on it. I don't think it'll go away soon. However, I like the growing trend where celebrities are using their star power to promote good causes (even if it's a kind of self-centered altruism).
I don't think the goody bags are necessary for the Oscars award show, and it seems like the Academy of Motion Picture of Arts and Sciences behind it agrees. In 2006, it voted to end the gift-giving practice, but separate companies continued to supply the gift bags, courtesy of Distinctive Assets this year. One reason for the discontinuation could be that the Academy and IRS had reached an agreement to consider the value of the gifts as income. Thus, any celebrities who accept the "free" bags will be taxed for them. Even with the added taxes, it doesn't seem like the popularity of the free gift bags will be falling any time soon, as the value of the 2015 Oscars goody bag is double that of 2014, and will likely rise each year.
I think it's pretty good marketing, for the stars who actually want the products decide to accept the gift bags, and those who don't can reject them. The goods won't be wasted, and can even be donated to charities, so celebrities can still show their philanthropic side, if they so wish. Either way. the recipients will still have to pay the tax, which could act as motivation to use the products, helping the companies advertising in the end.
http://variety.com/2006/film/news/the-big-freebie-freeze-1200341894/
http://www.forbes.com/sites/robertwood/2015/01/22/10-surprising-items-irs-says-to-report-on-your-taxes/
The goodie bags are a great way for companies to get extreme publicity while simultaneously facilitating the growth of their product's "taste" (The T in TRIBE).
Plus, how else will Leonardo Dicaprio receive some form of reward for his hard work?
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