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A C K N O W L E D G E M E N T

To undertake such a huge project and to achieve the desired goals one needs

quite a lot of guidance and support .

I am very much obliged and indebted to Mr. Alok Ranjan , Area Business Manager Kolkata (Tanishq) , for granting me the permission to work in the organization and providing various sorts of assistance required for preparing the project.

I would like to express my profuse thanks to our respected Co-ordinator, Mrs.

Rupa Bhattacharya for her exuberant encouragement during the course of the project.

I am sure that the knowledge imparted will go a long way in enriching my career.

Tata Group – Introduction

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Tata Group is an Indian multinational conglomerate company headquartered in the Bombay House in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in chemicals, steel, automobiles, information technology, communication, power, beverages, and hospitality. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in eight business sectors,27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Teleservices and the Taj Hotels.

The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the major international business figures in the age of globality. The company is currently in its fifth generation of family stewardship.

The 2009 annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India. The group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of philanthropic activity .

History

The beginnings of the Tata Group can be traced back to 1868, when Jamsetji Nusserwanji Tata established a trading company dealing in cotton in Bombay (now Mumbai), British India.This was followed by the installation of 'Empress Mills' in Nagpur in 1877. Taj Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji Tata became the chairman of the group after his father's death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation(1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals (1939), Tata Motors, Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent chairman of the group succeeded JRD Tata in 1991.

Corporate Social Responsibility

Ratan Naval Tata, the chairman of Tata Group; noted philanthropist.

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One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata Chemicals) was developing a compact, in-home water-purification device. It was called Tata swach which means “clean” in Hindi and would cost less than 1000 rupees ($21). The idea of Tata swach was thought of from the 2004 tsunami in the Indian Ocean, which left thousands of people without clean drinking water. This device has filters that last about a year long for a family of five. It is a low-cost product available for millions of Indians who have no access to safe drinking water in their homes.The advantage of this device is that it does not require the use of electricity.

TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours. “The children of the people who have been through our literacy program are all in school,” says Pankaj Baliga, global head of corporate social responsibility for TCS. Tata adheres to a philosophy of providing some of the poorest people in the world with products that improve their future (and those of their children) at values they can afford, while maintaining enough profit to keep the company competitive.

In 1912, Tata Group expanded their current CEO’s concept of community philanthropy to be included in the workplace. They instituted an eight-hour workday, before any other company in the world. In 1917, they recommend a medical-services policy for Tata employees. The company would be among the first worldwide to organize modern pension systems, workers’ compensation, maternity benefits, and profit-sharing plans.

In general, about 66% of the profits of Tata Group go to charity and executives made it clear that they have no intention of leaving control to Wall Street. The charitable trusts of Tata Group fund a variety of projects, for example the Tata Swach and the TCS project. They founded and still support such cherished institutions as the Indian Institute of Science, Tata Institute of Fundamental Research, the National Centre for the Performing Arts and the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them. This makes the Tata family evidently less wealthy as individuals than other Indian family-owned companies.

Green environment projects, donations, and charity are all examples of ways that companies support their community. Rata Tata’s gesture after the 2008 Mumbai Attacks was humanitarian; he supported many people in India. He made sure that all the employees were treated on duty during the time the Taj hotel was closed; although the hotel was closed, salaries were still sent by money order. About 1600 employees were provided food, water, sanitation and first aid through employee outreach centers. Ratan Tata personally visited families of all the employees that were affected. The employee’s relatives were flown to Mumbai from outside areas and were all accommodated in Hotel President for 3 weeks and taken care of. Going beyond taking care of their employees and dependents, Tata also covered compensation for railway employees, police staff, and pedestrians.

Tata's Ethics

Tata Group has more than just a rule book of ethics; they have a Code of Conduct in which a Code of Ethics is established. Tata Group is a unique company; it’s rigid ethic standards are so well set that most corrupt officials do not bother bribing with the Tata

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executives. The CEO as well as the directors of Tata Group want their company to be set in the right path. Chairman, Ratan Tata has said, ‘’I will certainly not join politics. I would like to be remembered as a clean businessman who has not partaken in any twists and turns beneath the surface, and one who has been reasonably successful.” They believe that their company should follow good ethics and help society in the ways that they can. Distinguishing the good in the world, society and business community and determining the right actions the company should take, Tata Group and its representatives can go very far in society. Although the good points have been pointed out, many companies also go through hardships. They may encounter politics and accusations; Tata Group may not be seen as "perfect" in every eye. Many Tata executives seem to take on all challenges. They know they could appease some skeptics and critics by conquering high levels of growth ambitions during the financial crisis. However, instead they are reducing costs, putting acquisitions on hold, and investing in innovative endeavors such as supercomputers and manufacturing new materials. Furthermore they are figuring out how to develop their new innovations and ideas to other economies such as Africa and Latin America.Tata Group believes that business is not all about profit. If social benefits are one major goal of Tata’s strategies, another is continuing growth in philanthropic industries as well. “We are hard-nosed business guys,” says Gopalakrishnan (an executive director of Tata Sons Ltd.), “who like to earn an extra buck as much as the next guy, because we know that extra buck will go back to wipe away a tear somewhere.” They raise high profits, but give a lot back to the society, whether from their trusts fund or the CEO’s own pocket money. Tata Group has Trust departments that deal with social projects, etc. The projects had a greater purpose to them than just the profit they had made; they were beneficial to the society .

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Tata - Mission and Vision Statement

“At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business”.

The Tata brand is more than 100 years old. It has consistently stood for integrity, values, ethics and quality. For the past few years, making Tata a global brand has been high on the Group's agenda.  R Gopalakrishnan, executive director, Tata Sons, talks to Sujata Agrawal about the brand, the challenges of keeping it relevant in today's business environment, and the Group's strategies for taking it global.

The major challenges in building the brand

It's a significant question, because the building of the Tata brand is different from the brand building of Tata. This is not a mere play of words; it is an important distinction. The building of the Tata Brand has been going on for 100 years. All that we have been humbly seeking to do, since 1999, is to employ tested brand-building techniques. Tata is a gigantic property; we are merely managing the brand, tracking it through organized research, and constantly refreshing and updating it.

One major challenge in managing the Tata brand is to adapt product-oriented marketing techniques to the needs of a corporate brand. You can compare, say, two soaps and claim that one has a better perfume, is longer lasting and better lathering. But in corporate brands, benchmarking with peers becomes almost spiritual; it's like comparing two religions. A lot of philosophical angles come into it and make things difficult.

A grand brandThe nameTata has consistently stood for integrity, values, ethics and quality - R Gopalakrishnan, executive director, Tata Sons, explains the Group's strategies for taking it global.

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Role of brand building in changing the image of the Company

I would say that the companies' activities contribute 70 per cent; it's the actual behaviour of people in the company that gives us the mentor image. Brand building activities can only reinforce it.

Mere projection cannot build a personality. We have to see what our companies are actually doing and how we can build on it. For example, a well-designed auditorium is able to reproduce and amplify the special virtues of different orchestras. But without a good orchestra, the auditorium's acoustics are useless. Similarly, the role of brand building is to add value and highlight the activities of the Group companies to the best advantage. That's how one builds the corporate brand.

It's like resonance. When you tap a tuning fork, the vibration of the tuning fork produces noise. But if you hold it to a large piece of metal and amplify it, then you get a goonjan or resonance. That's exactly what we are doing. We are supporting and aligning the brand to the companies' activities.

Brand equity building & the special challenges for a corporate brandBrands are all about emotion. I like to categorize brands into three groups:

First, there are products, which people can touch and feel — soaps, watches, etc. Here, branding attempts to build a halo around the product.

Second come services — airlines, hotels, mobile telephone operators, movie multiplexes, etc. What is real in all of these is the experience. It is not palpable, you can't touch it; but it is distinctive, something lingers and you remember it. In branding you try to embellish that experience.

Third, and most intangible, is creating and embellishing a symbol, like a corporate brand. It's like a spirit, manifesting itself in distinct forms in different circumstances — like light — you can't touch or feel it. And your 'experience' of light is really the reflection or image of an object. A corporate brand manifesting multiple product categories is a bit like that.

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Objectives of the Project

For Tanishq to become the number one choice, the project caters to the following

objectives ;

1. Increase visibility of brand name.

2. To stand for the credibility and total customer satisfaction.

3. Developing a brand image where their customers are proud to be their clients.

4. Introduction of a relationship management system with their customer base with

both existing and prospective customers.

5. To reach a point of customer delight , they need to provide complimentary services

to their existing customers beyond their contractual scope.

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Branding is often classified into three categories :

Manufacturer   brands Own-label brands, and generic brands. Manufacturer brands are brands which relate the producer with the specific product. Examples of manufacturer brands include Kellogg’s cornflakes, Nescafe coffee and Heinz baked beans. Producers will be heavily involved with the promotion of these products. 

Own - labelled brands Are owned and controlled by retailers. Examples of own-labeled brands include Tesco, Farm foods (ASDA), Sainsbury’s own label, etc. the disadvantages of own-labeled brands are, producers and manufacturers not related with the product, or involved in their promotion. 

Generic brands Have no identifiable name or logo. Examples of generic brands include plain T-shirts or bin-liners. These brands only exist at the lower end of the market, with respect to price and quality. 

What is a Brand ? – Multiple definitions . Multiple

Perspectives.

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What is a brand ?

“…. the promise , the big idea , and the expectations that reside inside the head of each customer’s mind about a product , service , or company …the brand is shorthand . It stands for something .” - Alina Wheeler ( 2006)

“ ….. a set of mental associations , held by the consumer , which add to the perceived value of a product or service .” - Kevin Lane Keller (1998)

“ ….. a brand is a concept , … a brand shapes and reflects our quest for meaning .”- Bobby J. Calder (2005)

“…. A brand is a meaning system .” - Patrick Hanlon (2006)

Definitions will emphasize what a brand is (physical appearance ) or what it does (role).

Myths to be broken ??

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Need for Creating a ‘Brand’

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It is no denying that every successful business is grounded on a recognizable, appealing and unique brand. In most cases, successful branding is able to create a consciousness that many people can easily associate a product or service with. Having a unique and recognizable brand, therefore, is the key to the success of any business endeavor. Not only is branding the company’s symbol, it is also the company’s face to the world; thus, a business without a brand is a business without a face.

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There are actually several reasons why a business, large or small, should create its own brand, but I have listed four of the best reasons below as to why branding is necessary for the success and survival of any business.

Delivers the message clearly .

Not too many business owners are aware that good branding is actually a good method of communication. If the design of the brand is right, it can deliver the message to the customers even without the aid of expensive advertising. That is why it is necessary to do extensive research with respect to the needs of the customers to create a brand that is not only suited to their needs, but can also deliver a message to them. When the connection is developed, the customers are no longer mere customers but clients.

Creates business credibility .

For many business owners, credibility is not developed overnight. It is a product or service of continuous innovation, aggressive marketing campaign and delivering the promised excellence in service or products. As the credibility of the company grows to a deeper level, the clients can easily associate the brand with the company. When the brand is registered in the minds of the people, the credibility of the company begin to be established.

Creates a connection between the product and the clientele .

In almost all cases, people can easily find a connection with their favorite brands. This is simply because in all areas of human life, good products and services have become the silent witnesses of their success and failures in life. This is how important a brand is to a company. In fact, a well-thought of brand can surely develop a strong tie between the company and the countless clients who are continuing to patronize the company’s products and services.

Helps motivate the buyer .

As previously said, branding helps develop connection between the product and the clients. When the connection is strong, the brand can be a good motivator for the clients to continuously purchase the products or services. This is one of the amazing results of the relationship between the company and the clients. This is only possible, however, if the company has a unique and appealing brand that people can easily associate themselves with.

Brand ConsistencyWe like to think of “branding” as the personality of a business. A brand has a

character, a look, a tone of voice and a way of behaving. The question every business

owner should be asking is; “how can I make my brand work – how can I make it say

the right things and how can I get it to speak to the right people”. In this article we

shall briefly consider the number 1 rule of branding: “brand consistency” which has

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numerous benefits which help in making a brand work.

What is Brand consistency ?

Brand consistency is where a business attempts to communicate messages in

a way which doesn’t detract or wander away from the core brand proposition. For

example, a single logo is always used in a similar way on all marketing materials, a

single typeface is used with particular guidelines on typography, consistent colour

ranges are applied and similar design styles, so that everything visual is inter-linked

and has a link back to that core brand proposition. Every piece of marketing

material is like a member of the same family, supporting and even looking similar to

all the other members in the family. The brand has it’s own unique “look” which

enables a consumer to recognize it as belonging to that brand proposition and

distinguish it from competing brands.

This visual “look” often evolves slowly over time but the core message of all

successful brands never really changes. Take for example, Apple computers.

Since their brand’s conception, their brand proposition was to supply advanced,

quality, great looking, high performing computers. This message has never changed

although the way they have communicated this over the years has, as they have kept

up with modern design standards. This has led to consumer recognition and then

trust and loyalty from their customers.

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Why bother with brand consistency ?

Brand consistency has one massive advantage – recognition. With

recognition comes familiarity. With familiarity comes trust and confidence. Also, if

done correctly, consistency brings clarity and purpose which consumers buy into.

They can become loyal. As people we don’t really like “new’ – and it has been widely

reported that before a consumer purchases a product, on average, they need to be

exposed to a brand 17 times. 17 times is an awful lot and so it’s essential that when

a potential customer comes across a “brand message” they know straight away

which brand is communicating to them. This can only be done by consistency. If

consistency is not applied, and the message and design not defined then it is

possible for a consumer to mistake one brand with a competing brand which could

then mean they associate the impression with another company. This means a

business potentially looses customers, and may even help it’s competitors if a

consistent “look” and tone is not achieved.

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Brand Value and Authenticity

Professor David Jobber identifies seven main factors in building successful brands, that ultimately contribute to build a sustainable name in its market. Which may be named as Brand Value. Following is the diagrammatic representation of Jobber’s Model:

Quality

Quality is a vital ingredient of a good brand. Remember the “core benefits” – the things consumers expect. These must be delivered well, consistently. The branded washing machine that leaks, or the training shoe that often falls apart when wet will never develop brand equity. Research confirms that, statistically, higher quality brands achieve a higher market share and higher profitability that their inferior competitors.

Positioning

Positioning is about the position a brand occupies in a market in the minds of consumers. Strong brands have a clear, often unique position in the target market.

Positioning can be achieved through several means, including brand name, image, service standards, product guarantees, packaging and the way in which it is delivered. In fact, successful positioning usually requires a combination of these things.

BRAND BUILDING

QUALITY

POSITIONINGWELL-BLENDED COMMUNICATION

REPOSITIONING

LONG-TERM PERSPECTIVE

INTERNAL MARKETING

CREDIBILTY

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Repositioning

Repositioning occurs when a brand tries to change its market position to reflect a change in consumer’s tastes . This is often required when a brand has become tired, perhaps because its original market has matured or has gone into decline.

Communications

Communications also play a key role in building a successful brand. We suggested that brand positioning is essentially about customer perceptions – with the objective to build a clearly defined position in the minds of the target audience .

All elements of the promotional mix need to be used to develop and sustain customer perceptions. Initially, the challenge is to build awareness , then to develop the brand personality and reinforce the perception .

First-mover advantage

Business strategists often talk about first-mover advantage. In terms of brand development, by “first-mover” they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. There is plenty of evidence to support this.

Think of some leading consumer product brands like Gillette, Coca Cola and Sellotape that, in many ways, defined the markets they operate in and continue to lead. However, being first into a market does not necessarily guarantee long-term success. Competitors – drawn to the high growth and profit potential demonstrated by the “market-mover” – will enter the market and copy the best elements of the leader’s brand (a good example is the way that Body Shop developed the “ethical” personal care market but were soon facing stiff competition from the major high street cosmetics retailers.

Long-term perspective

This leads onto another important factor in brand-building: the need to invest in the brand over the long-term. Building customer awareness, communicating the brand’s message and creating customer loyalty takes time. This means that management must “invest” in a brand, perhaps at the expense of short-term profitability.

Internal marketing

Finally, management should ensure that the brand is marketed “internally” as well as externally. By this we mean that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives.

Think of the brands that you value in the restaurant, hotel and retail sectors. It is likely that your favourite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty.

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Brand Desirability

The Brand Desire study analyzed some of the top world-wide brands are the brands that consumers

1) talk about and

2) are proud to associate with (meaning they like buying the products).

"Our research has shown that desirability doesn't correlate to size”. For example, Continental Airlines ranked at the bottom of the list. However, brand desirability correlates directly to brand growth, and so we believe there are a few major considerations that drive desirability in top brands: Personality, Innovation, Mission and Adaptability. What do brands need to do to become desirable?

First , Have a mission . Yes, brands, you want to create and sell good products, but you want

consumers to return time after time to buy. Brands such as Trader Joes, Burts Bees and Method have great products and are near the top of the desirability list because they also have a mission.

Second , Stand for something different. "Consistently across the top brands these are companies that have

transformed the way we do things, whether it is Google changing the way we search or IKEA the way we buy furniture," said French. "A lot of these brands were or are still considered 'challenger brands', they are not looking to replicate the status quo."

Finally , Make your message consistent . From press releases to website content and internal memos, make

sure your brand message is the same. This constant reinforcement of the message gives consumers - from strangers to employees - the ability to associate your product with a feeling or action they wish to emulate.

Competitive Advantage - a strategic way to lead

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People often think of a brand as the symbol, name or logo associated with a product. In reality, branding involves far more than that. In the Previous topic “The Myths to be broken”- I have illustrated the idea of a Brand becoming only some sort of sign, and being neglected as a mark that wins over the trust of a target mass. To win over the competitors and also attract the Potential consumer, Brand is the key to success. Detailed Following -

Branding is basically the process of creating a strong identity for an organization, and it applies to both product manufacturers and companies that provide a service. An organization’s brand identity drives the company as a whole by providing a framework through which the members of the organization can establish a memorable, active relationship with consumers. When a company brands itself successfully, people remember that organization and what it stands for, and they come to know exactly what to expect from interacting with its members or using its products.

In recent years, as marketing has shifted and become more about establishing a relationship with customers and less about bombarding them with names and logos, the role of branding has increased in scope and significance. Branding appeals to people’s memory of an experience with an organization. Clear and consistent messages about a company’s products or services, the experience of interacting with that company, and its appeal to the values and self-concept of consumers make for a successful branding campaign. A brand is, in effect, a company’s way of doing business, which develops as a result of its identity and its reputation. It is also the association that consumer’s have with its products or services. Customer service, or the way a company operates in relation to those it serves, is the action by which a brand is established and imprinted in the memory of a targeted market. Another way to say this is that a company’s brand is its way of standing out and separating itself from its competitors.

Though successful branding is often paramount to a company’s success, there are pitfalls and challenges that must be faced. A variety of common problems can stand in the way of a company’s efforts to brand itself effectively. One such barrier is not having a clear set of values with which to identify the brand. Without a clearly defined mission and vision that all employees share, a brand identity cannot be effectively established. An organization’s own members must connect to a brand identity before that identity can be communicated to consumers. Staff must be motivated to work together and act as representatives of the brand outside the walls of the organization. Management must be willing to make the changes necessary to accomplish this. Resources, processes and tools must exist to automate presentation of the brand to the marketplace, and the organization must stay connected to its customers and be willing to make adjustments dictated by feedback from them.

A brand name and logo are simply an association or way to identify the experience of the brand in its entirety, much like a person’s name or photograph evokes everything you know about who that person is, what he or she stands for, and how he or she behaves. Since all names and images carry associations, brand names and logos must be chosen with care. A good name is a positive influence on the way members of the organization identify themselves as well as how consumers view the product or service that carries that name. This is particularly relevant in cyberspace, where domain names need to be memorable on a global scale. Names that resonate across cultures and languages are crucial to branding success.

In addition to having a good name, a successful brand must be well positioned. The brand’s position is the place it has in the minds of those it aims to serve. A brand must be

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positioned in such a way that it’s uniqueness and value to the consumer is apparent. Since customers must feel connected to a brand, it not enough for the brand or logo to simply be recognized. Companies and consumers form an interactive relationship that involves an exchange between the organization’s offerings and the consumer’s needs and expectations.

In this sense, brands are a form of communication, and a brand that communicates well in a way that is consistent with its actions gives consumers a deeper and more meaningful experience with the brand.

Companies can use any one of five strategies for branding, each with its own shortcomings and advantages.

First, a company can develop line extensions, which new items are introduced within a product category, such as “all natural” or “organic” versions of a food product. While the brand may be in danger of losing its specific meaning in the minds of consumers, this strategy can also work well to attract new customers.

Second strategy is brand extension. In this case, an existing brand name is used for a completely new kind of product. Using this strategy, a well-known apparel manufacturer may launch a line of perfumes or beauty products. As long as the new product is well received and the brand’s reputation is upheld, this strategy can help a company expand into new markets.

A third strategy is multi-branding, which occurs when a company creates a variety of brands within a product category, each designed to appeal to a different audience. The danger here is that the brands may each compete with each other for small shares of the market with none of them doing particularly well on its own. Some companies create entirely new brands to launch products in new categories when existing brands and brand names do not fit the new product at all.

There is also an emerging practice known as co-branding in which two well-known brands merge to create a new product that boasts both previously accepted brands.

For product manufactures, packaging is another key feature that affects how consumers view the brand. People often identify a brand by its packaging. Several elements are important here, including the “packaging concept,” which defines what the package should accomplish for the product. The package should be carefully designed with attention to size, shape, color, font and logo, as well as the type of material that should be used. Decisions about pricing, marketing and advertising are often dependent upon the type of packaging developed for the product, which may affect how it can be handled, distributed or displayed. The association that consumers make with a particular kind of packaging is as important as other features of the brand. For example, the Planters Lifesavers Company introduced vacuum-packed peanuts in 1992 to capitalize on the association that consumers already made between fresh coffee and vacuum packaging. Growing concerns about the environment make recycled packaging materials attractive to many people, and safety concerns have highlighted the importance of using “tamper-proof” packaging.

Companies that are successful at branding are able to develop a “story” around a product or service that will create an affinity with customers. Since most businesses today are difficult to distinguish from one another, an intermediary is often called upon to help envision a fresh perspective that can be developed into a lucrative branding campaign. An intermediary with experience in branding can leverage a company’s uniqueness and help launch, build, evolve and grow a business. Branding is more than selecting the right language and packaging, and it requires dedicated personnel and budgets, as well as time and expertise. With already overburdened staff members who may lack the experience, skills and resources specific to branding, it often makes sense to hire an intermediary to manage

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the venture. In some cases, intermediaries can be brought in as temporary consultants to give specialized, expert attention to developing or improving a communications strategy.

Hiring an intermediary to develop brands can benefit two distinct types of client companies. In one case, a firm that has been victimized in the past by legal or linguistic issues can alleviate fears of future mistakes by bringing in an intermediary. In other cases, firms for which branding is more than an afterthought can become truly excited by the expanded possibilities inherent in bringing in experts in the branding arena. Though the two groups overlap, the decision to hire an intermediary often comes down to a combination of uncertainty and hope that exists for most companies considering brand development.

Brand Image Versus Brand Identity

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Brand Building – The Secret to Long-Term Success

If we don’t take charge of our brand, it will be done for us. Our organization will

be positioned by our customers, which means that their impressions of us may:

1. Not be what we intended.

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2. Not be relevant to them, and thus cause a barrier to their considering our

products/services.

3. Be so unfavorable that any future business we want to do will be inhibited.

4. Be so undifferentiated that we will not be able to compete effectively.

For example, Target’s brand is aimed at the yuppie market, which wants good value

without sacrificing style. Wal-Mart, on the other hand, goes after middle-class Americans who

want low prices and approachability. But what about K-Mart? If asked, most people would

have a hard time explaining just who it is K-Mart seeks to serve and how that chain is unique.

For this reason, K-Mart wasn’t even on my radar screen when I was seeking to purchase that

Barbie. And I am not alone. Data collected on this subject shows that K-Mart lags significantly

behind Target and Wal-Mart in terms of market share and revenue.

If we do take charge of our brand, it will yield incredible results over the long term. For

example, it is estimated that Coca-Cola’s brand equity is valued at over $67 billion – making

Coke the number-one brand in the world. This is amazing, considering that the company

doesn’t do much more than sell sugar and water in a can. Another example is the Disney

Company, which is fanatical about protecting the value of its brand. And, without even

knowing the numbers, it is easy to see the value of a brand when most people consistently

ask for a “Kleenex” as opposed to a “tissue.” In the short-term, a well-defined brand makes it

easy to deliver a positive customer experience, which means that customers experience

what was promised to them or what they expected. And in the long term, it is these brand

lovers, customers who are loyal to your brand, who provide the base for brand longevity and

exponential results.

Steps involved with branding

There are four basic steps to Branding:

1. Market Research and Environmental Scan

2. Completion of the Strategic Brand Profile

3. Translation of the Strategic Brand Profile into Brand Charter Statements

4. Organizational Alignment to Brand Charter

For market research and environmental scan, we need to be able to answer

the following questions :

How are we perceived by our consumers?

What is their awareness of who we are and what we do?

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What business do they think we’re in?

How would they characterize our corporate personality?

Is their impression of us favorable or unfavorable? Why?

Are they motivated to try our products and services? Why or why not?

If they have tried our products and services, how motivated are they to repeat their usage

and recommend our products and services to others?

If we came up with a new product or service, would they be interested in working with our

organization again? Why or why not?

What do we know our about our consumers and the marketplace?

How would we describe our consumers? (This includes demographics, income level,

education, etc.)

What are the expectations of our consumers? What is important to them?

How do we see our consumers changing and evolving over the next 10 years?

What choices do our consumers have that are in competition with our products and

services?

What do we have that appeals to our consumers? What do others have that appeals to our

consumers?

What are the trends in our industry that we need to be aware of? Which trends do we want

to lead, be the middle of or lag behind?

Organizational Alignment to the Brand Charter

Once the main strategic decisions have been made and articulated in the brand

charter, the rest of the organization should be brought into alignment to support the

strategy. Again, a brand is a promise that is made and consistently delivered. More often

than not, this is where branding efforts fall apart. Promises are made, but they are made

inconsistently. And, worse, promises are made but aren’t delivered on.

In terms of aligning external messages that are delivered to customers, review the

following to ensure alignment:

Website

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Products

Services

Atmosphere

Printed materials

Other customers

Packaging

Consumer messages in advertising

Review the following categories in terms of aligning your internal organization to support

delivery of brand promises:

Organizational structure Is work divided up in such a way that it supports strategic

intents?

Leadership Do our leaders understand and embody the brand?

Processes Do processes support delivery of brand promises?

Recruiting and Hiring Are the right people sought after and hired?

Training Are employees trained on how to deliver brand promises?

Compensation and Rewards Do these systems reinforce behaviors that support brand

delivery?

The Bottom Line

During tough economic times, we shouldn’t cut our organization’s efforts to build an

effective brand. We should never ignore our brand when we are “tightening your belt,” as

tempting as it may be. Rather, that is the time to focus on our resources on improving the

touch-points between our organization and its customers.

We need to do more than make promises; we need to ensure that we deliver on them. We

also need to do what it takes to ensure that our brand and strategic intentions are decision-

making filters for employees at every level in your organization. Brands are defined by

actions, not just words. What our organization does in bull and bear markets must reflect our

brand identity in order to ensure long-term success.

Brand Growth Checklist

1. GAPING BIG WHOLE : there are more ways to grow  

The biggest issue with Brand Growth is how Sharp over-simplifies marketing, dumping it down to a one-dimensional mechanical process:

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Be remembered (mental availability) + widen distribution (physical availability) = increased penetration. Well, there's a bit more to marketing than that, right? Here are a few other ways to grow that don't even get a mention in Brand Growth:

- Creating new occasions: McDonald's offering breakfast

- Brand stretching : Special K going from cereals to cereal bars

- Increase volume per usage occasion : Axe's "Spray More, Get More" campaign did this by getting blokes to spray all over, not just under their arms

- Premiumisation : Gillette have increased price and profit per razor over time by adding extra functionality

 2. MISTAKE : mixing up user profiles and brand positioning

Sharp shows that the user profiles of brands are much more similar than we think. Looking at lots of categories, and different ways of segmenting markets (demographics, attitudes, values etc.), he shows brand profiles are very close. (with obvious exceptions, such as luxury brands being bought by people with more money).

However, the dangerous leap Sharp then makes is to say that portraying a specific type of user is wrong, as it fails to talk to the spread of people using the brand. For example, he says Yorkie's "Not for girls" was bad marketing, as it missed out girls, who in fact eat a lot of Yorkie choc bars.

 

The Basic error. - Who we portray and who we want to use the brand are two different things.

Portraying a certain type of user helps create a distinctive brand story and mix, standing out and getting remembered, the very things that Sharp (rightly) urges marketers to do. Most ads by Coke portray young people drinking from a 330ml iconic bottle because this is:

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i) aspirational, ii) distinctive. Special K cereal shows ladies in red dresses, but this doesn't stop

men in blue dresses eating the stuff as well. Again, its about being distinctive.

3. MISSING : how to actually grow penetration  

There's loads of backward-looking data in HBG showing that big brands have more penetration. Not surprising, given that Mr Sharp, as he himself says, is a data cruncher not a marketer, with no practical experience of growing brands. Well here's a start on how to grow with some brand examples:

- Step-change in quality: Muller's creamier yoghurt vs. incumbent Ski

- New benefit: Pantene and shine, supported by Pro-Vitamin B5

- Distinctive properties: O2's blue bubbles and Felix the cat

- Expanding distribution: Tesco

4. WRONG : loyalty thinking stuck in a time-warp

Modern technology and marketing means Sharp's laws on loyalty (all brands have same levels) can be broken or bended. Take TV series watching. Sharp shows that only a minority of people watch consecutive episodes of any TV series. But his data is from 2003. And since then there is a little thing called Tivo/Sky+ which means with a press of a button I can record a whole series.

Then there is Nespresso. Their online membership data base and re-ordering system means that in premium coffee I have 100% loyalty.

5. WRONG : all loyalty programs are rubbish

Another dangerous leap from data to conclusion is the one on loyalty schemes. Because loyalty levels are hard to budge, Sharp says all loyalty programmes should be stopped.

Well, try telling that to Tesco, one Sharp's examples of successful brands. They pioneered loyalty schemes with Tesco Clubcard. And they think its so good they bought the company who created and managed it (Dunn Humby)! Two things Sharp misses on loyalty programs:

- Loyalty programs can drive penetration: O2 found that non-users were attracted to the brand by their O2 Rewards scheme, thinking "Oh, they seem like a nice company as they care for their customers". To quote Hamish Pringle in his book Brand Immortality: "O2 loyalty strategy turned out to be a highly effective recruitment one. Two-thirds of the very considerable growth came from new customers."

6. WRONG : Advertising is only about salience and memory structure

Sharp suggests that advertising should not seek to persuade and focus instead solely on reinforcing memory structure and keeping a brand top of mind. The fatal flaw with this theory is that it is likely to lead to wallpaper advertising that is not distinctive.

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Brands need to be consistent. Walkers, one of Sharp's examples, has been able to do 72 adverts with ex-soccer star Gary Lineker over 16 years because a stream of new news has kept the campaign fresh. We've had countless new flavours and promotions such as Brit Trips and Do us a Flavour.

 

7. MISLEADING : The shape of frequency distribution is always the same

To support his case that frequency of usage is always the same he shows graphs of Coke usage in the US and the UK, and says "Look! Just the same." Well, the shapes are similar. But there is a big difference he fails to point out:

USA: 89% buy Coke, 14% buy once/twice a year = 16% of buyers

UK: 50% buy Coke, 40% buy once/twice a year = 40% of buyers

In other words, there is a huge difference in frequency, reflected in a much higher consumption per capita in the US. So, one way for leading brands to grow is to change the rule of the category and increase frequency. As the brand leader, you will get most of this growth.

"How Brands Grow": The end of marketing as we know it?

In his recent talk at the IPA Byron Sharp accused branding experts like Kotler and Aaker and most of us marketers as being primitive, ignorant users of "medieval" practices that are a waste of money. He sought to sell us on the set of scientific “laws” in his bible, "How Brands Grow" (HBG). He literally kicked the s**t out of core marketing principles such as segmentation, targeting, loyalty, differentiation and emotional engagement.

So, is he right ? Is this the end of marketing as we know it ?

Well, he's got mountains of data as back-up. Leading companies such as Mars and Coke are applying the laws. And a lot of what he says reinforces some of our key principles of brand and business growth. On the other hand, the approach is a bit "mechanical" and over-simplistic. It’s actually very light on practical examples of how brands have grown using these laws, as opposed to just being big. And I’m sceptical about “marketing fundamentalists” like Sharp who claim to have the ultimate truth in business.

So, in this first of two posts I'll suggest what I think he's got right.... In the second post I'll point out the mistakes, flaws, shortcomings and loopholes in his laws.

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WHAT’S RIGHT IN “HOW BRANDS GROW”?

1. Penetration is key

HBG’ biggest bombshell is that all brands have similar levels of loyalty. This is defined by frequency of purchase for consumer goods, or defection rates and number of products bought per user for service brands. The big difference is penetration: bigger brands have bigger user bases. I find this hard to swallow myself, having worked on a good few programs to convert light users to heavy users. But on reflection it does ring true, as changing consumer behaviour is horribly hard to do. It seems that in a given category loyalty has a natural level, and its hard to shift it.

2. Light users are as or even more important as heavy ones

The second Byron-bomb is that most users of a brand are in fact light. For example, Coke UK is bought by 50% of people in a year, but about half buy it only once or twice a year. And these people are in risk of forgetting the brand and not buying. Secondly, he suggests the heavy users of a brand are so into the category and the brand that they don’t need much specific marketing.

The implications of laws 1 and 2 are pretty radical:

Stop trying to turn light users into heavy ones Stop cross-selling and loyalty programs Focus all out on growing penetration

3. Leading brands are distinctive, not different

Here Professor Sharp is preaching to the converted. His data shows that when you take out the effect of size, brands in a given market have pretty similar brand image profile. But big brands are stronger across the board. They have a distinctive way of marketing on the core needs of the market, and so are more strongly associated with these needs. Examples of leading brands who have done this well are O2 and Hollywood chewing gum.

 

4. Create memory structure to build “ mental availability ”

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Strong brands create and nurture brand properties such as logos, music, colours, slogans. As posted on here, neuro-science research shows it takes 2-3 years to establish really establish these properties in our minds in the form of memory structure. These brand properties mean people are more likely to remember you and find you at the supermarket shelf on “auto-pilot”.

 

5. The power of “ physical availability ”

Another point I’ve been banging on about is the importance of distribution and finding new “routes to the consumer”. Key to Tesco’s growth in the UK to take number 1 position from Sainsbury in the UK was simply a faster expansion of its store network. Walkers crisps in the UK grew strongly by expanding distribution UK-wide.

6. People don’t want a love affair with most brands

Sharp shares our view that for most brands people are not looking for a relationship or love affair. Rather, they want to be able to buy quickly and confidently. This means the right balance of emotional “sizzle” and product “sausage”. As I like to say, lifestyle marketing and emotional benefits work better for Prada than they do for pet food. He even shows data suggesting that only a minority of Harley Davidson's users are actually brand lovers. Most have a more mundane view of the brand.

Branding and its Content - Goes hand in hand

Branding experts hit the nail on the head when they say that a winning brand conveys why you are your prospects’ only solution. If you can’t achieve that, you should at

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least convey why you are your prospects’ best solution. Of course, the same logic applies to your clients. So make a compelling claim about your business, product or service, and back it up.

Are you the biggest or most popular provider of your type of product ? Do you provide the widest selection of services ? Do you leverage strategic partnerships ? Create patented technology ? Offer convenient locations ? Or are you young and small, able to churn out customized solutions swiftly, unlike your much larger and slower competitors ?

Define your strengths and leverage them. Purposefully written Web copy that effectively tells your prospects why they should buy from you or your client can make a world of difference on the sales front. In fact, if done right, it can actually disqualify the competition.

Here’s an example. A client in the medical X-ray field had Web copy that contained vague statements such as, “We’re dedicated to providing you with the highest level of professional service possible.” That’s not a hook. Any business can state that on its website, and most do. Some basic research revealed that the client is the only business in the region that owns and operates the most advanced medical equipment in the industry. As a result, it could provide the most accurate X-rays on the same business day. No competitor in its market could make the same claim.

That simple fact differentiated our client and became a large part of its selling proposition. That’s conveying real value.

You Are What You Write

Through words, we form a personality, set a tone and create expectations – for better or for worse. When communicating in person, you have the luxury of giving and receiving

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verbal feedback and expressing yourself with body language and facial gestures, all in real time. Your prospects can peer into your eyes to help them decide whether to trust you and accept what you’re telling them.

However, when potential clients visit your website, they don’t have the same opportunity to size you up. Your online visitors can’t look you in the eye, so they look to your messages to help them decide whether to trust your brand, your business and you.

Hence, the words you use on your website should project the personality of your products, services and business. Your Web copy must form and foster a clear verbal identity, reflecting who you are and who you strive to be. It signifies what you stand for and promise to deliver. Consider the following copy from three auto manufacturers’ websites. Mercedes, in the first excerpt, positions itself as the ultimate luxury vehicle:

“Enjoy bold, spirited styling with an air of sleek confidence. A distinctive radiator grille nose hints at the

power that lies beneath the hood. The highly characteristic tail, with dual tailpipes will put a look of awe on

the faces of all those you leave in the dust. The SLK-Class is the ultimate combination of classic sporty

personality and effortless poise and assurance.”

BMW boasts performance:

“Do bear in mind that 0-100 km/h in 5 seconds limits your chances of actually spotting the BMW M Coupe

on the road. For that you can thank a 330 hp in-line six engineered to peak at an astounding 7,900 rpm.

Raw power is unleashed precisely through a short-throw, 6-speed manual and is kept in-check by massive

compound, cross-drilled brakes.”

Volvo tries to make its name synonymous with safety:

“Preventative safety features like Dynamic Stability and Traction Control (DSTC) help you, the driver,

avoid accidents by evading them. And nothing is safer for you than no accident at all. So every Volvo is

equipped with a variety of innovative preventative safety features, many of which are, of course, uniquely

Volvo, developed by Volvo safety engineers over years of research, design and testing, both in the

laboratory and the real world.”

Each individual message builds on its respective brand to create distinctiveness and value, in a bid to engage the targeted audience. And the words that Mercedes, BMW and Volvo choose have a direct impact on each of their bottom lines.

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What Does Your Brand Stand For ?

Your Web copy needs to define who you are and what you sell and cater to your target market’s specific needs. Moreover, your Web copy requires a distinct and consistent voice that expresses the value of the relationship you’re seeking, accompanied by assurance. Only then can it forge a truly emotional connection with prospective and established customers alike. To build your brand with words, your Web copy needs to take into account:

Existing perceptions of your products, services and company, The actual position you occupy now on these fronts.

Recognize the gap between these two points and how they compare to where you want to be. The difference needs to be made up through your communications, from your policies to your product packaging to your Web copy.

Following are some key elements to help you foster a relationship between your brand and your customers:

Word association

What are your core strengths? What do you promise customers? Invest time to determine what you’re good at, thus focusing on your strengths. Your words in turn establish a relationship with customers by laying out your benefits, whether functional, emotional or self-expressive.

Image Your words can sway consumers into associating certain attributes with your brand. This can shift how they see you in relation to the competitors in your marketplace, potentially even altering who you compete with. Some ingenuity can set you apart from the others to the point that your competition appears bland.

Character Your Web copy should take into account where you come from, who you are and what you stand for. This is your guiding light. Be authentic. One step beyond your character could tarnish your integrity.

Culture Your website content should reflect the values that give life to your business. While you don’t need to list your core values, your Web copy should draw on this framework. Ensure that it resonates with the values in and around your business.

Personality Your Web copy needs to bring to light your business’ human characteristics, including everything from age to class to personality traits. Get creative with delivery. For instance, many businesses post employee photos on their websites. But why not actually

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quote employees in your Web content? It’s a great way to put a human face to your company and promote your staff as industry experts.

Spirit Does your Web copy represent the emotional elements and values of your business? Demonstrate authenticity and commitment to creating a spirit that’s not only engaging but contagious.

So how can you differentiate your offerings? What’s different about your approach? Perhaps you can leverage:

Selection Experience Knowledge Credentials Expediency Style Technology Geography Alliances Resources Tools Customer service Or one of many other factors

There’s no value in everyone knowing you if they don’t know what you stand for and what you can do for them. Plus, the more reasons you give people to choose your brand, the less price becomes a factor in their purchasing decision.

Use words that clearly demonstrate how a prospective customer’s world will be made easier, more lucrative, healthier, happier and so on, with you in the picture. This overall message can then be continually reinforced not just on your website, but also in print materials, advertising, trade show presentations, press releases and so on.

Never forget that words, like design, are the foundation of communication. They help us express, understand and learn. They are invaluable to influencing your visitors’ decision-making process and loyalty.

Choose your words wisely. Failing to do so could result in a brand that’s problematic, rather than a means to a solution.

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HERITAGE : A MASTER BRAND BUILDER – JASON BENSON

If there is one characteristic and attribute of a brand that provides

sustainable competitive advantage, it is heritage.

We all know, buy and experience brands that have a great heritage. For some of

us, it is Mercedes, Philips or Disney. For others, it is McDonalds, Heineken or

Gucci.

What makes these brands great, what they all have in common, is that they

have had the time to build a meaningful and relevant past – a heritage. Customers

need time to buy and use the brand, time to make the brand a part of their lives,

and time to endow the brand from one generation to the next.

Heritage speaks of status, character, and social class. It speaks of a traditional

way of life that is of value to present and future generations. It speaks of

inheritance, of shared experiences and of a common history.

Brands express and share their heritage in the form of a narrative; a crisp,

meaningful, relevant, and memorable story – a brand story. Disney’s brand story

is about family and community. Visit a Disney theme park and you will experience

the safety, security and enjoyment of the quintessential American town.

Marlboro’s brand story embraces nostalgia to exploit the myth of the stoic

American cowboy, wide- open spaces, simple choices, good and evil, and heroism.

Chanel’s brand story is that of the sensual, strong and independent woman

seeking romance, spiritual love and ecstasy.

Nike’s brand story is one of maximum performance, of challenging oneself to

strive for one’s best, calling that achievement ‘perfection’.

Universities, Movies, Brands and Heritage

It is not only consumer brands like Disney, Marlboro, Chanel, and Nike that

have the gift of heritage.

Universities enjoy brands that differentiate themselves based on their

heritage, traditions, country of origin and their culture. Oxford University’s brand

story is that of the oldest English-speaking University in the world. It lays claim to

nine centuries of existence, the preservation of the English language, and the

education of generations of England’s royalty.

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Movies become brands when they tell the stories of our collective

consciousness and heritage. These films are anointed Classics.

The Lawrence of Arabia brand story is that of the hero; the man who rises

above his station in life, proving his self-worth through courageous acts.

Lawrence’s story involves many of the world’s great religions, individuals

who overcome overwhelming odds and people who believe passionately in their

convictions. While battling the searing heat of the desert, in command of merely

fifty exhausted Bedouin warriors, Lawrence says, “I will get to Accaba. That is

written here,” as he points to his mind.

The Godfather brand story is that of a ruler whose goal is to create a

prosperous, successful family in a new land. This is clear when the Godfather,

speaking with his youngest son in their expansive garden says, “I always believed

you would be Governor Corleone or Senator Corleone.”

The Forrest Gump brand story is about the regular guy. It expresses the

sentiment that everyone matters, regardless of their abilities or circumstances.

This is illustrated when Forrest says to the love of his life, “I may not be smart,

but I know what love is.”

People, Brands and Heritage

How do individuals become brands in their own lifetimes? They do this by

associating themselves with the great stories of our common heritage.

Muhammad Ali’s brand story revolves around becoming ‘the greatest’. He

seeks to become the source of the ultimate strength, grace and conviction. He

wins the world boxing championship an unprecedented four times and refuses to

fight in the Vietnam War because “the Black Man has no fight with the Yellow

Man.”

Nelson Mandela’s brand story is that of the wise old man. He uses his

intellect to defeat overwhelming oppression and delivers freedom, democracy,

and hope to his people.

Mother Teresa’s brand story is that of the universal mother; the source of

goodness in all of us. She provided warmth, care and purity. She catered to the

poor, the underprivileged and the disenfranchised.

Heritage as the Master Builder

When a consumer product, a university, a classic film or an individual

successfully attaches itself to one of these stories, it gains entrance into our

minds and hearts.

When they are in our minds and hearts, they take on the status of a brand.

Brands create differentiation and distinction. They create choice. And you cannot

be chosen unless you are a choice.

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Building Powerful Brands

Brands are as large as the people who make them With products flooding the markets consumers are getting a variety of choices

when it comes to purchasing products. But it is not the most recent of product or one with

low prices that sells the most. This brings us to think, what is it that determines a product’s

voluminous sales and drives up its profit margins? And the answer to this question to a great

extent would be THE BRAND behind the product that drives its sales.

Looking at a product, the consumer gauges it by the amount of benefit it

offers. This in a big way goes to contributing what a product is at the end of a time span. In

other words, the benefits offered by a product over a period of time determine the creation

of brand value.

There are several aspects that could be considered when it comes to making or

creating an effective brand. The tools that among the several that could be tapped

are mnemonics. One of the advantages of creating a brand which goes against the normal

conventions of marketing principles is that it could negate or prolong a product life

cycle (PLC). One of the chief purpose behind creating a brand is to create shareholder

value. The growth of a company or a brand depends on its shareholder’s wealth.

 

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A misleading trend nowadays which is often misinterpreted as a brand building activity

is endorsement advertisement. Not all endorsements fall into this category but some do for

sure! This is most glaring visible in certain brands such as a glamorous Bollywood endorsing

a leading public service telecom provider like BSNL or a superstar endorsing a bank. The

problem with the above endorsements lies in the absence of the “CONNECT” element. It

also defies rationale as to how a superstar actor or actress identifies with a bank or a PSU

telecom provider which is contradictory to the actor’s image!

Instead the approach should be to create relevance through the endorsement and add brand value. A classic example of this would be Palmolive shaving creams which brought cricket legend Kapil Dev in the early 1980′s to endorse its shaving cream, a effort that turned out to be a mega success, with the tag line- ‘Palmolive da jawab nahin’.

 

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Some other initiatives which go a long way in changing the way a product is received

is  its packaging. A classic example in this regard is the Halo shampoo sachet which created

a revolution when it was launched in the later half of the nineties. The concept though was

not received with open arms when it was introduced it went on to create a revolution and

open the RURAL markets for major FMCG firms, an arena where entry was considered to be

virtually impossible! The impact of this packaging initiative was to fierce that it dislodged the

then market leader Sunsilk !

Apart from packaging, even the visuals go a long way as far as identification and

recall of the brands are concerned. Taking the same example, many Indians would recollect

that it was the swirl of the lady’s hair in the advertisement that symbolised healthy hair

and in turn ended up creating a everlasting brand recall for that brand!

This brings to the fore the aspect of understanding the aspirations of the consumer.

Manufacturing without knowing the pulse of the consumer won’t help in the creation of

the brand. And this requires constant interaction with the needs and the aspirations of the

consumer.

Building brands is a serious business and goes way beyond the confines of plain

advertisements as perceived by many. It is different from advertising as it transfers brand

ownership. Several latent but highly important aspects need to be considered while

creating a brand such as a competitive pricing policy, smart measures to make the

production process more lean and sleek apart from others!

It becomes imperative for a brand in the making to get things like pricing, above

the line and below the line strategies right. In this light an effort such as promotion

offers for a product reflects that its calculations such as Profit before income tax (PBIT),

EPBIT and others that also go in determining the creation of the brand.

 

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Innovation and novelty too go a long way in the creation of a brand and none

conveys it better than Halls which switched to pillow packs from wrappers to turn around the

market share from Vicks the then leader and speed away with the tag of the market leader.

One of the most important aspects pertaining to brand is the strategy

formulation which is more important than brand building itself! A successful brand requires

dedicated teams that work cohesively towards the making of the brand. These teams are in

to be touch with ground reality around the brand such as cultural & ethnicity of the populace.

A tab on these trends implies better understanding of the expectations of the consumer

which in turn would mean a holistic requirement for the product attributes and the creation

of an effective strategy.

Creating value in products goes a long way in building a brand which could be seen in the

cough syrup category where the honey flavour came as a watershed and changed the

entire image of a cough syrup- that of a bitter tasting concoction!

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Branding and Marketing Mix

The impact of branding on the marketing mix is seen in every aspect of our society. The ability for consumers to identify with your brand and associate it with a product is a powerful tool in marketing. The more you are recognized, the more you will be thought of when the needs for your products arise.

1) Brand Names   -

Coke, Pepsi, Nike... When you see the words, you imagine the products, the logos, maybe even the times you used the products. This is a wonderful thing if you are one of these companies. These are what we call brand names. Branding that is so powerful that the products take on an air of being the best or the most popular automatically.

2) Lifestyles   -

Some brands even illicit behavior traits and lifestyles. Raiders, No Fear, Bob Marley... these are symbols that have taken on an almost iconic brand. Many have associated the brand with the feeling of the brand and have modeled their lifestyle to fit that feeling. They decorate their vehicles and homes, choose clothing, and buy other products that they now identify with.

3) Presence   -

You need to set a brand for yourself and get it out there. It is very important to consider the style and tone you will be setting for your company and company presence. In time, the brand you make for yourself will stick and you will have issues to confront if you try to change it. Just think of the new coke issue and you will understand. People like what they are used to. Choose wisely and you will be pleased with the persona your company takes on with your branding efforts.

The ultimate impact of branding on the marketing mix is in your sales. If your customers are comfortable with the company that they have come to know, they will continue to purchase from your company. Setting up your branding is one small aspect of marketing, but an important one. A good mentoring and education system in marketing can help you understand branding and other aspects of marketing much better.

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BRAND POSITIONING AND DIFFERENTIATION

Understanding our brand’s positioning requires among many things, a grasp of what differentiates our brand from others. Positioning and differentiation are intertwined, and a study of both require deep insight into our customer’s values and motivations.In positioning:

1. You fully understand the categories your brand is operating.

2. The different marketing segments.

3.. The competitive set.

4. Which benefits are “cost of entry” vs. “differentiating”.

5. You fully understand the decision making process the consumer uses to purchase your brand .

6.. You defined the role, target customer, unique promise, archetypes and personalities for your brand and have made sure there is synergy between key stake-holders .

7.. You have clarity around your brand purpose; what it stands for, and how it is unique and compelling to consumers.

8.. You have criteria to help you decide when to use an existing brand, and when a new brand or sub-brand is the proper choice.

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Competitive advantage can be sourced from many elements including customer service, design, personality and performance. It can be product focused, or/and user-focused from participation in a subculture where a shared sense of purpose or community is fostered.

An understanding of this , adds to the strength of the differentiation exercise required by strong, sound brand positioning.

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Brand Image Vs Social Consciousness

As the general elections for 15th Lok Sabha (2009) were drawing close, the battle for

votes stirred up in India. While, political parties were busy launching election campaigns, few

brands took up the responsibility of sensitizing the citizens about their responsibility of

exercising their voting rights. Tata Tea’s Jaago Re! campaign was one such campaign that

went down very well with the citizens and redefined the nature of brand association and

social cause marketing in India. With message, “Election ke din, agar aap vote nahin kar

rahe ho, to aap so rahe ho” (If you are not casting the vote on election day, you are

sleeping), Tata Teapulled 618,157 people towards www.jaagore.com site for voter

registrations. People instantly connected with the tag line.

Jaago Re!  ad campaign, was started by Tata Tea as a Cause Related Marketing

(CRM) initiative in September 2007. In June 2007, Tata Tea Ltd. (Tata Tea), one of the world’s

leading companies in branded tea sector, became the largest tea vendor (in terms of volume

share) in the world. Soon after attaining this position,Tata Tea elevated its communication

efforts to the self-actualization level through Jaago Re! campaign. As part of Jaago Re! Tata

Tea is spearheading many social issues and in the process was able to build a social aura

around the brand which should augur well for the brand in the long run.

Tata Tea’s Jaago Re! campaign so far received good response from critics and also

brought success for the brand (both tangible and intangible success). Nevertheless, the

question rises, when does a CRM initiative become successful or when is the scope for CRM

programme high. Companies, usually take up CRM initiatives after they had built strong

brand heritage and value. Similarly, Tata Tea also initiated Jaago Re! campaign after it had

built a strong brand image and market leadership. Could it have been as successful as it is

now if the same campaign was launched, let’s say, several years ago when the brand had

not yet become a global brand? Therefore, is there any relationship between brand life

cycle and the timing of a social cause marketing initiative? There is also another important

element that has an equal impact on the success of CRM intiatives – company’s target

customers. If a company’s customers are highly ethical and socially sensitive, CRM initiatives

will receive huge response.

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The scope for CRM programmes, at various levels of consumer’s social awareness/

social consciousness, can be assessed with the help of the following matrix.

In the above matrix, X-axis indicates social sensitivity/social empathy/social

consciousness of customers and Y-axis indicates brand image/reputation of the companies.

The following possibilities can be derived from the given matrix – 

When social awareness (SA) among customers is low, and brand image of a company

is also low, there will be no scope for CRM initiatives. For instance, if a not-so-well known

company propagates social awareness to less social-conscious consumers, the response from

consumers is negligible and hence the success of CRM initiatives would definitely be null.

This is because, primarily, consumers would not pay heed to company’s good messages

since they are highly individualistic. Secondly, the company is not carrying any brand image.

When SA is low and the brand image is high, CRM can still work for companies. For

instance, when a renowned brand promotes a cause using its image, the response from

consumers would be minimum. This is because, the number of consumers who have the

ability to appreciate the company’s efforts of promoting social causes are low.

When SA is high, brand reputation is low, success of CRM is moderate. This is because;

the number of socially sensitive consumers is high. As such, once the company wins the trust

of the customer, its CRM initiatives clicks very well.

When SA is high and brand image is high, the success of CRM is very high. This is the

ideal state for initiating CRM initiatives. Company is sure to witness the success of its CRM

initiatives. Thus, the success of CRM depends on, at which stage of the brand life cycle a

company is taking up CRM program and who are the target consumers.

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CRM Effect on Brand Image

CRM, or customer relationship management, covers a broad array of services that brands provide for their customers. These services include everything from providing technical support to monitoring social media. The basic philosophy is to facilitate the purchase process for the customer and make it as convenient as possible for him. For many businesses, repeat customers account for the most revenue. This benefits both the customer and the business, which can look forward to future revenue.

1 . Retail Retail stores offer coupons, discounts and sales to repeat customers. Most

supermarkets in the U.S. provide customers with a plastic card that unlocks discounts. This has the double benefit of letting the store track its sales more effectively.

2 . BankingThe world of finance has very good CRM because the services provided by a

bank are its core draw in the marketplace.

3 . Online Websites often provide services such as live chat with a customer service

representative, support forums or free shipping. These are very helpful because, for example, a product might have the same price in multiple stores, but free shipping makes it cheaper in one store.

4 . Social Media Monitoring social media helps brands maintain their image as well. For

example, Jet Blue quickly responds to tweets from passengers, allowing them to address complaints immediately.

5 . Community Service Community service, or corporate social responsibility, is another form of CRM. Companies give back to communities in the form of scholarships, health services and other donations of money and time. This does not directly lead to increased sales, but strengthens a brand's relationship with a community.

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Branding in 2011

There is a lot of rubbish talked about Branding. It starts with the often misconceived belief that the brand is owned by the company. Whilst this is technically true, brands are in reality owned by the customers and the value of the brand is defined by how well the company holds onto its existing customers and adds new ones. In the digital age this is even more the case than ever before. It is now very easy for customers to comment openly on a brand. Whether the brand is a product or a service, the explosion in the use of social media sites, blogs, Twitter etc allow customers an increasingly powerful opportunity to support or devalue a brand very effectively and very quickly.

The first thing every business must recognize is that building a brand has to take into account all the ways in which customers interact with it. So it is no longer good enough to think that branding is a one way street: the company telling the customer what the brand stands for. In the new digital age it is about working with customers throughout their purchase and use of the brand, to respond rapidly to issues and new opportunities as they arise. Customers have always valued brands as a way of speeding up their buying process: "I trust Nike, so I'll buy their shoes", "I trust the BBC so I'll listen to their news", so I'll buy their components". These "trust" comments reflect not only how the brand was originally promoted and sold, they reflect even more powerfully the ongoing experience the customers have had with the brands. But for 2011 digital media increases the need for ultra fast response by all companies to their customers' comments on issues and further business opportunities. Just as we can't wait for slow web pages to load and switch to other sites, customers will increasingly not wait for slow responses to their comments and suggestions: they will simply shift brands.

The second key point for Branding in 2011 is to shift focus from thinking of Branding as an upfront activity focused on names, logos, packaging and advertising, to an all embracing activity that manages both the total buying experience and the customer experience in using the brand. Positive comments are remembered far less often than negative ones. So whatever your business, 2011 will see a major shift for all companies in ensuring that the complete customer buying and ownership experience is managed tightly and in line with the brand’s promise.

The third key point to remember for Branding in 2011 is that customers considering a brand evaluate everything associated with it. So they evaluate the support they'll get if things go wrong, they evaluate how your company works in the local community, how your employees speak and represent the company (in and out of work), and in how other customers experience and talk about the brand. The digital age makes this even easier to do. And what's more just as people tend to believe what they read in the press, customers also place a disproportionate trust in what they read on blogs or websites. So all business owners and directors need to know exactly what is being said about "their" brands and company by their customers every day.

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TANISHQ – AN INTRODUCTION

Tanishq [The name Tanishq has been formed by combining "Ta" (the first two letters of Tata) and "Nishk or Nishkh" (meaning gold coin or necklace in Sanskrit)] is India's largest, most desirable and fastest growing jewelry brand in India. Started in 1995, Tanishq is the jewelry business group of Titan Industries Ltd - promoted by the TATA group, India's most respected and widely diversified business conglomerate.

Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. It exploded the market with facts about rampant impurity across India. It introduced technology-backed challenge in a category completely governed by individual trust.

Tanishq introduced innovations like Karatmeter, the only non destructive means to check the purity of gold.

Jewellery is one of the last great commodity frontiers in India; it has remained so because this market is very fragmented, very unorganized. Tanishq has successfully taken on the challenge of transforming this frontier into a reliable consumer space by bringing to it all the virtues and benefits that branding offers".

- Harish Bhat, CEO, Tanishq.

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Tanishq - Premier Jewellery Brand of India

Jewellery in India is reflective of a tradition and culture rich in artistic and skilled craftsmanship. As far back as 1500 B.C the Indus Valley Civilization was known to have manufactured gold jewellery in the form of necklaces and earrings and beaded necklaces with metallic bangles.

Historically this love for jewellery remains strong and the Indian market exports worldwide, as well as continues to fulfil its consumer demand for gold, diamond and gemstones. With increasing consumerism, economic growth and an estimated luxury market of a hundred million, the passion for jewellery has endured with an emerging public demand for quality brands.

One such brand which came to India’s jewellery horizon in 1995 is Tanishq, distinguished as being the most prominent, largest and fastest growing premier brand of jewellery in modern India.

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The concept at Tanishq ( tanishq.co.in) as “Revitaliser of Tradition” has been the signature of its newer concept stores across India. The theme has been to sustain the immortal art of jewellery making from traditional india to mesh into the present purity and simplicity of modern designs.

The artistic and special architectural work characterizing magnificent wonders such as the Taj Mahal has inspired the detailing in the construction of the Tanishq stores in the North. For the tourist this gives an incredible ambiance of not just jewellery shopping but combines with it a feel for India.

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TARGET MARKET

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BRAND POSITIONING

PROMISE OF PURITY AND A UNIQUE EXPERIENCE :

Design and retail innovation have been the hallmark of Tanishq all these years.

First and only jeweler who guarantees the purity of its gold jewellery and certifies the quality of its diamonds and colored gems in writing.

Trust :

It has established itself as a highly ethical player in a market that was rated as having the highest incidence of under karatage (Bureau of Indian Standards).

They even have gold meters where one can check the purity of gold.

Luxury :

Tanishq also has been positioned as a branded jewellery of luxury rather than commodity. It moves jewellery beyond investment to the fashion and adornment sector.

Superior Product :

In order to compete with the regional players, Tanishq introduced the concept of “consistency in delivering promise”.

Tanishq is known for its ability to develop specialized design collections.

It is the only jeweler that houses a full-fledged design studio with a team of several international award winning Indian designers.

Offer a totally new perspective to Jewellery buying especially when it comes to exquisite oriental jewellery.

PRODUCT LINE & COLLECTIONSTanishq Gold

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From the traditional harams, mangalsutras and thalis to the more fashionable earrings, chains, bracelets and rings, there is a lot to choose from at Tanishq.

In India Gold has always been associated with security and is the most valuable form of investment. However, it has been observed that consumer is an easy target to several malpractices like under karatage, under valuation of the gold sold and unfair buy back policies due to the lack of awareness about these issues.

Tanishq propagates ethical practices not only by assuring the customer purity and selling policies, but also fair policies to the karigars who craft the jewelry

Tanishq's designs in Pure 22k gold are not only unique, expressing the wearer's individuality but each piece is subject to the intricate process of design, crafting and stone setting with stringent quality standards at every point. At Tanishq, we cater to every occasion. Our collections in gold abound from the grandiose wedding collection to exotic kundan and polki, from the stunning Aarka collections to the exclusive Nakashi work. We ensure that we have something for everyone with our baby range, 9 to 5 for the working woman and high fashion, men's wear, teen's collection and regional specific designs.

Tanishq Platinum

Pure

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Platinum's purity endows it with a brilliant white luster. This helps to reflect the true radiance of diamonds. Because it is generally 95% pure (18 karat gold is 75% pure), platinum jewelry does not fade or tarnish and keeps its looks for a lifetime.

Rare

Platinum is rare, the coveted treasure of discerning individuals. There is very little platinum on this earth and it is found in very few places around the world. This exquisite metal is 30 times rarer than gold. Platinum's rarity makes it exclusive and distinctive - a

celebration of your individuality.

Eternal

Platinum jewelry is the perfect choice for a lifetime of everyday wear. Platinum does not wear away and holds precious stones firmly and securely. All precious metals can scratch, and platinum is no exception. However, the scratch on a platinum piece is merely a displacement of the metal and none of its volume is lost.

Some of the world's most famous gems are set in platinum, such as the Kohinoor diamond, part of the British crown jewels.

Platinum and White Gold are distinctly different materials and must not be confused. Platinum is a metallic element while White Gold is a Gold alloy, which gets its white colour due to palladium or nickel.

Tanishq's Platinum represents excellent value for money. The price may be higher than a similar item in gold but platinum is pure, rare, enduring, beautiful, luxurious, classic, and the perfect host for diamonds; precious qualities that make it worth paying that little bit extra for.

The Diamond Collection

No gemstone expresses human emotions more powerfully than a diamond After all, a diamond is timeless and finding your perfect piece of diamond jewelry is an exhilarating and

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unique experience. Cut and crafted with utmost care the diamond collection renders each piece eternal.

The Solo Collection

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'Solo' is a statement of ‘feminity’, ‘luxury’ and ‘lifestyle’ as well as a status symbol. 

For ages, Solitaires have mesmerized women with their inherent mystical appeal. Cashing in on this fascination for the stone is Tanishq, the leading branded jeweler in India, which has lined up a range of everyday- wear solitaire diamonds-‘Solo’.

The Lightweight collection

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Contemporary, yet elaborate and light, this collection draws inspiration from the casual elegance and confidence of the modern day woman. Crafted using a special process called electro-forming, this intricate diamond jewellery collection is designed to appeal to the discerning customers who are looking for international designs, wearability and value for money.

The Wedding Collection

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The bride blushes; Everyone around smiles; The shenai announces festivity; The priests chant auspicious promises; She walks demurely; A vision of beauty; Her jewels are exquisite; Crafted by the best in the land; As pure as the blessings bestowed on her.

The Kundan and Polki Collection

Influenced by the mughal era Kundan work requires special craftsmanship and a myriad of stages, each crafted by a different set of highly skilled karigars.

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Tanishq as a revitaliser of tradition brings to life techniques and motifs of the period through our exquisite collections of Kundan and Polki (uncut diamonds).

It is difficult for jewelers to ensure the purity and correct grammage of the product since it involves so many stages. However, Tanishq ensures the karatage and net wt of the product.

The Aria Collection

Aria is a collection of variety of everyday jewellery which depict

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various moods and feelings:

Exquisite crowns and jewellery

Tanishq, India's most innovative jewelry brand, unveiled the awe-inspiring set of crowns and its 'Colors of Royalty' range of jewelry, specially crafted for India's leading beauty pageant, Femina Miss India 2007.

Mysteries of love

Mysteries of passion

Mysteries of envy

Bewitching Fascinating

Enchanting

Hypnotizing

Sensuous

Captivating

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Tanishq has built itself a reputation of bringing innovative designs that suit the needs of "the ever-changing never-changing" Indian woman.The crowns have been designed to convey the essence of India through the use of distinctive motifs such as the traditional and auspicious 'teeka' - the Indian touch to the contemporary styling. Crafted with painstaking detail, each of these crowns convey a story; a story of their "ORIGIN". Inspired by interplanetary movements and colors of flora and fauna, these tiaras are a stunning combination of trillions, baguettes, round brilliant cuts, princess, pears and specially cut colored crystals. Each crown weighs about 450 gms and has a special spring mechanism designed to fit perfectly on any size or shape of head.

The inspiration behind each crown is distinct and personifies the spirit of the title.

Miss Universe: This crown has the perfect cosmic blend of elements, very like the universe itself. The large red stone, set slightly on the side, is the symbolic and stylised

'teeka'.

Miss World: The natural essence of this piece is enhanced by the wave-like undulating shape on the base of the crown, sitting snugly on the forehead of the wearer. And of course the vivid rectangular blue stone that expresses the teeka of victory, and sets off the varying hues of the sea on the rest of the crown.

Miss Earth: This crown derives its inspiration from the essence of nature- her flora and fauna. Based on the fabulous colours and movement of the peacock and its feathers, this stunning piece is an intriguing study in harmony and contrast.

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TANISHQ

SWOT ANALYSIS

PURITY GLOBAL MARKETS

DISTRIBUTION NETWORK CUSTOMIZED JEWELRY DESIGNS & RETAILING STORE

WORLD CLASS DESIGNS CAPTURING GENX MARKET BY LAUNCHINGTRENDY

JEWELLERY

DIVERSITY IN JEWELLERY EXPAND RETAIL STORES(GOLD,DIAMONDPLATINUM)

COMPETITIVE PRICES

BRAND NAME OF “TATA”

ESCALALTED GOLD COSTS , COMPETITON FROM CHAIN STORES LOWER MARGINS

GOLD NOT SEEN AS A SOURCE OF INVESTMENT(LUXURY NEEDED)

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Questionnaire

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Exerpts from the Feedback Forms

Thing ‘They’ admire about Tanishq Thing ‘They’ want Tanishq to improve upon‘Their’ expectation from Tanishq

Transparency More variety Better designs

Monthly Saving plans Introduce more casual wear Latest designs & best service

Quality Number of Stocks More designs in reasonable range

Loyalty Value for money

Service More discount

Reduce making charges

Continuation of Purity

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Indian perspective of Celebrity Endorsement

A celebrity, also referred to as a celeb in popular culture, is a person who has a prominent profile in the media and is easily recognized. Celebrity status might be associated with certain professions and frequent appearances in the media. It can arise as a result of career planning but it can also arise by accident or as a result of infamy.

Most cultures and regions have their own independent celebrity systems, [with distinct hierarchies of popular film, television and sports stars . A person who garners a degree of fame in one culture may be considered less famous or obscure in another. Some nationwide celebrities might command some attention outside their own nation.

India is very much divided in different regions, or cultural communities (linguistic, ethnic, religious) which also have their own celebrity systems, especially in linguistically or culturally distinct regions such as Punjab-Kerala, Bengal-Rajasthan, Kashmir-Mumbai etc. Regional radio personalities, newscasters, politicians or community leaders may be local or regional celebrities.

A local celebrity is a person well known in one locality but are little known elsewhere.

A person might have celebrity status within a particular culture (such as Baba Ramdev) or might be unique to a particular diasporas.

It's hard to measure someone's fame. Even worldwide celebrities might still be unknown to people in isolated countries like North Korea, to villagers without access to international news media or to people who are simply uninterested in celebrities. Certain phenomena have however been called[who?] definitive proof of fame, such as appearing on the cover of Time, being spoofed in Mad, having a wax statue in Madame Tussauds, or receiving a star on the Hollywood Walk of Fame.

Certain people are known even to people unfamiliar with the area in which they excelled. M.F. Hussian's style and name are known even to people who are not interested in art; likewise many know that P.C. Sorcar was an illusionist, Mukesh Ambani a businessman, Dr. Abdul Kalam a scientist; Hariprasad Chaurasiya and Shiv Kumar Sharma (Popularly known as Shiv-Hari) classical composers; Sonu Nigam a famous singer.

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Essentials of Celebrity Endorsements

Even though to an observer it may seem that Nike’s success is totally based on Tiger Wood’s association with the brand, nothing can be far from the truth. As a brand, Nike has established a very strong brand identity and a brand personality over the years. What Nike did was to use celebrity endorsement as one of the main channels of communicating its brand to a highly focused set of customers. So, Nike’s association with Tiger Woods was one of the parts of an entire branding process that Nike has been practicing consistently. Contrary to this, most brands that have used celebrity endorsements have used it as the main brand building tool. Before any brand signs on a celebrity, they should consider three main aspects.

Attractiveness of the celebrity:  This principle states that an attractive endorser will have a positive impact on the endorsement. The endorser should be attractive to the target audience in certain aspects like physical appearance, intellectual capabilities, athletic competence, and lifestyle. It has been proven that an endorser that appears attractive as defined above has a greater chance of enhancing the memory of the brand that he/she endorses.

Credibility of the celebrity:  This principle states that for any brand-celebrity collaboration to be successful, the personal credibility of the celebrity is crucial. Credibility is defined here as the celebrities’ perceived expertise and trustworthiness. As celebrity endorsements act as an external cue that enable consumers to sift through the tremendous brand clutter in the market, the credibility factor of the celebrity greatly influences the acceptance with consumers.

Meaning transfer between the celebrity and the brand : This principle states that the success of the brand-celebrity collaboration heavily depends on the compatibility between the brand and the celebrity in terms of identity, personality, positioning in the market vis-à-vis competitors, and lifestyle. When a brand signs on a celebrity, these are some of the compatibility factors that have to exist for the brand to leverage the maximum from that collaboration.

Celebrity Endorsements - Do's and Don'ts

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All brands must be aware of the following aspects of celebrity branding:

Consistency and long-term commitment:  As with branding, companies should try to maintain consistency between the endorser and the brand to establish a strong personality and identity. More importantly, companies should view celebrity endorsements as long-term strategic decisions affecting the brand.

Three prerequisites to selecting celebrities:  Before signing on celebrities to endorse their brands, companies need to ensure that they meet three basic prerequisites, namely the endorser should be attractive, have a positive image in the society, and be perceived as having the necessary knowledge (although it might be difficult for a celebrity to meet all three prerequisites)

Celebrity–brand match:  Consistent with the principles discussed earlier, companies should ensure a match between the brand being endorsed and the endorser so that the endorsements are able to strongly influence the thought processes of consumers and create a positive perception of the brand.

Constant monitoring:  Companies should monitor the behavior, conduct and public image of the endorser continuously to minimize any potential negative publicity. One of the most effective ways to do this is to ensure that celebrity endorsement contracts are effectively drafted, keeping in mind any such negative events.

Selecting unique endorsers:  Companies should try to bring on board those celebrities who do not endorse competitors’ products or other quite different products, so that there is a clear transfer of personality and identity between the endorser and the brand.

Timing:  As celebrities command a high price tag, companies should be on the constant lookout for emerging celebrities who show some promise and potential and sign them on in their formative years if possible to ensure a win–win situation.

Brand over endorser:  When celebrities are used to endorse brands, one obvious result could be the potential overshadowing of the brand by the celebrity. Companies should ensure that this does not happen by formulating advertising collaterals and other communications.

Celebrity endorsement is just a channel:  Companies must realize that having a celebrity endorsing a brand is not a goal in itself; rather it is one part of the communication mix that falls under the broader category of sponsorship marketing.

Celebrity ROI:  Even though it is challenging to measure the effects of celebrity endorsements on companies’ brands, companies should have a system combining quantitative and qualitative measures to measure the overall effect of celebrity endorsements on their brands.

Trademark and legal contracts:  Companies should ensure that the celebrities they hire are on proper legal terms so that they don’t endorse competitors’ products in the same product category, thereby creating confusion in the minds of the consumers.

An important aspect that companies must note is that celebrity endorsements cannot replace the comprehensive brand building processes. As branding evolves as a discipline companies must be extra cautious to utilize every possible channel of communication rather than just a celebrity endorsement.

Introduction

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The celebrity endorsements scenario has seen several transformations over the past few decades. Progressively, more and more thrust is being laid on encashing the mass appeal of celebrities across different elements of marketing communication. No longer it is restricted to just advertising. It is quite common to come across involvement of celebrity faces in sales promotion, events and even in sub-branding exercises.

The collection of articles in this section cover many dimensions of celebrity endorsements, such as its benefits, issues involved, types and forms, celebrity selection criteria, perspectives of marketers and advertising agencies, experiences in different countries, critical analysis and various brand experiences.

Major findings of a research conducted among advertising agencies are –

(i) celebrities refresh and add new dimensions to a brand image;

(ii) target audience match, prior endorsements by the person, and whether he/she is an actual brand user are some of the major criteria applied in selecting a celebrity;

(iii) TV is the most preferred media, as it brings the celebrity to life;

(iv) preference to involve celebrity in all aspects of integrated marketing communication;

(v) supermodels, sportstars and filmstars as celebrities can be leveraged internationally;

(vi) to target different segments, multiple celebrities are preferred .

Do Celebrity Endorsements Work?Advertisers are pouring millions into celebrity endorsements. How much bang are

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they getting for their bucks?

India has only two religions - sorry politicians, you don't count! - cricket and Bollywood. Come what may, both guarantee excitement and eyeballs. Not surprisingly, advertisers, forever searching for the magic to engage audiences, have been crazily (even blindly) using celebrities to hawk their products.

Master Blaster and cricket's hottest icon Sachin Tendulkar has always led the pack. Most recently, he was signed on by Kishore Biyani's Future Group as Brand Ambassador for its upcoming range of products, including energy drinks, shakes, diet supplement powders, sports goods, Cricket gear, bats, balls, vitamin-enriched natural juices, treadmills, exercise mats, cycles and eyewear bindis. Pepsi signed him up to endorse the sports drink Gatorade. He also pitches Aviva's Child Plan. The Comeback Guy Saurav Ganguly is the face of the consumer electronic firm TCL, the German sports lifestyle brand Puma and the broadcast channel INX News. Tennis star Bhupati hawks ApolloTyres, while Golfing ace Mikka Singh punts for Barclays. 

But there is nothing like an endorsement from a Bollywood star. Deepika Padukone leads the youth brigade as brand ambassador for Kingfisher and watch-maker Tissot, along with Leci Strauss, India. Bipasha Basu peddles Kinetic's Sym Flyte and Real Estate Developer, Emgee. Sushmita Sen is more likely to be seen in ads than in movies, pitching everything from Olay, Taug Huer and Kiah Diamonds to Pantene. Kajol is popping Perfetti's Alpenleibe, while cousin Rani Mukherjee, Bollywood's popular queen of hearts, is plugging the mosquito repellent Good Kinght, when she isn't batting for Titan Raga, Fanta, Dabur Vaitka, Nestle Munch and Aveo. Bubbly Preity Zinta is refreshing Rexona Roll-On Deo, Godrej, Eon Airconditioners, BSNL telecom and the new airline Go Air. The fabulous Lara Dutta and cool Bobby Deol are the face of trendy fashion name Pantaloon. 

Hrithik Roshan remains hot as ever with Acer, John Players, Parle, Tata Sky, Sony Ericson, and Radico Khaitan. Saif Ali Khan is the chotte nawab of Taj Mahal Tea, Royal Stag, Yamaha, Newport, Colgate, Lenovo and Aveo. Then there is Akshay Kumar pitching everything from Grassim Suitings and Thums Up to Microsoft's X-Box 360. Finally, there are, of course Amitabh Bachchan and Shah Rukh Khan, the reigning kings of endorsements.

Recent entrants include at least five hotties from Gen Next. Heading the pack are the newcomer Genelia D'Souza and Imraan Khan, stars of the recent hit Jaane Tu. If industry sources are to be believed, each command endorsement fees upwards of $200,000, higher than even senior stars like Preity Zinta & Rani Mukherjee. Jia Khan, the nubile, sexy Lolita who unsettled Big B in Nishabd has signed on for Wrangler Jeans for a reported $190,000. Even Harman Baweja whose debut film Love Story 2050 tanked at the box office, and

Kangana Ranaut of Gangster fame, command endorsement fees that hover around $200,000. Image consultants and advertisers believe that since the demand is huge and the supply of stars limited, any new kid on the block who has captured popular imagination is on! 

Kareena Kapoor recently struck a mega deal to promote Pepsico's Kurkure brand for a whopping $1.4 million, overtaking her $1 million contract for Vivel soap, making her the most endorser among female stars. Following her are Mallika Sherawat ($700,000) Katrina Kaif ($600,000), Aishwarya Rai Bachchan ($500,000 to $600,000), Priyanka Chopra (300,000 to $400,000) and Preity Zinta and Rani Mukherjee ($170,000 to $200,000). 

Adding spice, excitement and hi-drama to this crazy world of mega-deals is

 

 

 

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the war of the Khans. Shah Rukh Khan's Rab Ne Bana Di Jodi  and Aamir Khan's  Ghajini  released the same month, setting up a deadly clash of the titans at a time when big films, such as Love Story 2050, Drona and Kidnap continue to ominously bite the dust . But the drama is even more intense in the endorsement wars. If SRK sipts Pepsi, Aamir is partial to Coke. If SRK zooms around in a Santro, Aamir zips about in an Innova. If SRK hawks , Nokia and Dish TV, Aamir champrions Titan, Samsung and Tatasky. 

These insane, big bucks, glamorous endorsements are, no doubt, wonderfully rewarding for the stars and the insatiable star-hungry TV viewers. Industry experts estimate that celebrity endorsements jumped almost 50 percent in India in 2007. But do they work? Remember the aging dream girl Hema Malini hawking the mineral water Ken and the Bank of Rajasthan? And what do you make of high profile lyricist Javed Akhtar endorsing Jaypee Cement? Or Bipasha Basu hawking Real Estate? Or Big B waxing about Navratna hair oil? A recent survey conducted jointly by IMRB and i-Pan of over 2000 respondents, across 12 cities ( small and big metros) found that 86 percent of those interviewed admitted that the ad they most remembered had a celebrity, but only 3 percent said it influenced their buying decision. The IMRB study found that "more than the celeb pull, factors like quality, price and experience ultimately drove consumers purchasing pattern" Furthermore, "only 22% of this sample believes that the celebs actually use the products endorsed."

So, should celebs be dumped? "Not really" says IMRB's Sanjay Pal. "At a primary level celeb endorsements help to break the clutter but beyond that... it is doubtful whether they add any real value." In fact, the survey found that Amitabh Bachchan and Shah Rukh Khan have so many endorsements across product categories that 15 percent associated the "wrong" brand with the former and 9 percent with the latter. 

Celebrity Endorsement can alter Consumer Brain Activity

Celebrity endorsement has long been a sure-fire way to boost the sales of a product. From work gloves and overalls to designer dresses and accessories, it only takes one well-placed commercial to make consumers sit up and take notice. One recent example of a successful celebrity endorsement is Kim Kardashian’s partnership with Skechers Shape Ups; the curvaceous starlet makes the ideal spokesperson for fitness footwear, and fans who admire her physique are already rushing out to buy the toning trainers.

Now, it appears that celebrity endorsement deals may be even more powerful than we realise. A study by a group of Dutch scientists, writing in the Journal of Economic Psychology, shows that celebrity endorsements of products actually alter consumer brain activity, triggering the process that leads up to the purchase decision.

 

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In order to establish the psychological effect of celebrity endorsements used in advertising, the scientists studied a group of 2 dozen female consumers. Their brain activity was monitored while they were shown a series of photographs featuring celebrities and non-celebrities wearing various stylish shoes from stilettos to trendy work boots. Seeing the pictures of celebrities led to heightened activity in the medial oribitofrontal cortex of the consumers’ brains – an area associated with feelings of affection. The scientists’ theory is that celebrity endorsement ads prompt consumers to link the endorsed products with these positive feelings, making the appeal of the products that much greater.

The desire for endorsed products and clothing is not significantly affected by the attractiveness or reputation of the celebrities – meaning that the appeal is based on the “persuasiveness of fame itself”, according to the team. It’s quite an alarming thought that a simple advertising ploy like celebrity endorsement can have such a profound effect on our thinking!

Celebrity Endorsements : Is this a big deal ?

I am sure you know by now that Sachin rejected a huge ad-deal (supposedly the biggest yet!) with an alcohol manufacturer. While it’s a great gesture to me it sparks the debate of whether it’s ethical for celebrities to endorse such products.

Before coming on that, let’s try and understand why celebrities endorse ads at the first place. The answer is a no brainer MONEY!!! Well ok, at times you do see them for social causes like Polio campaigns but more or less its money. Brands benefit from celebrities in their ads and sell more, that’s the argument at least. These brand managers think that celebrities have great influence on the society and hence this impact. Hence, the argument that celebrities endorsing alcohol and tobacco, negatively impact society.

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I do not buy this argument. Why?

First, I don’t think our society is that stupid that they will blindly follow the celebrity (there is some impact but no blind following) and second smoking / drinking usually are least likely to be started because of a celebrity. Also, usually performance of sportsmen is also associated with the impact so if Sachin doesn’t do too well in South Africa people would not stop drinking / smoking (assuming he did the campaign). So if Sachin rejects the ad-campaign, it’s a big deal because of Sachin and not because of the cause.

Moreover, the same celebrities also campaign for other products which are false claims. For example, Boost is a secret of nobody’s energy and drinking Cola isn’t cool! I am sure more people drink Boost and Colas because of celebrity endorsements than they do smoking or drinking. The point is the impact on society cannot be measured easily and even if it could there are 1000 different brands which impact negatively but there is no publicity around it.

Should celebrities do ad-endorsements or not ? I don’t know but we should neither be too excited about their selection nor should we judge them because of their endorsements. Smoking and Alcohol are issues in the society which should be dealt with responsibility and not by celebrities.

Pros & Cons of Celebrity Endorsements

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Celebrity Endorsement : Ris k vs . Returns

The basic assumption underlying celebrity endorsement is that the value associated with the celebrity is transferred to the brand and therefore help

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create an image that can be easily referred by consumers. Consequently by association the brand can very quickly establish the creditability get immediate recognition and improve sales. However, there are many risks associated with such endorsers. The brand could slide down just as quickly as it moved up the consumers mind. There are many cases of brands failing in the market place despite famous celebrities endorsing them.

Risks

a) Celebrity overshadows the brand: In certain cases where the celebrity values category benefit and brand values are not closely linked. There are chances that the celebrity is remembered more than a brand. Cyber media research study reveals that 80% of the respondents approached for research remembered the celebrity but could not recall the brand being endorsed.

b) Necessary Evil: Marketing have felt that once the brand rides the back of celebrity it becomes difficult to promote it without the star as it becomes difficult to separate the role of message and the role of the celebrity in selling the brand. The celebrity activity becomes an addiction and the task to find substitute becomes more and more difficult.

c) Celebrity creditability : a question mark for the competent customer: Today’s marketing endorsement has to deal with a competitive and knowledgeable customer who has begun to voice his opinion about their perception about endorsing a brand. Celebrity is said to befool the public as he is paid to sell and communicate good things about the brand. Hence the question of creditability of the celebrity being chosen to protect the brand is becoming pertinent.

d) Conflicting Image: A mix match between the image of the credibility and the product can damage both. Unless there is a synergy between celebrities own image and that of product category the strategy of endorsement is rendered futile.

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e) Multiple Endorsement: The poly endorsement have lead to a celebrity clutter. Celebrity endorsing multiple products and multi brands in a category have left the customer confused and have lead to dilution in the celebrities value.

f) Influence of Celebrity scandals and moral violation on brands : a number of entertainers and athletes have been involved in activities that

could embarrass the companies whose products the endorsed. When the endorser’s image is finished. It actually leads to a greater fall in image for the brand. For instance Azharuddin was charge with betting and match fixing, which created negative feeling and repulsive thoughts among people for the products he was endorsing.

Returns

a) Build Awareness: A new brand can benefit greatly if a celebrity endorses it. It can attract the customers attention and inquisitiveness to see what product is being endorsed. Research has shown consumers have a higher level of message recall for products that are endorsed by celebrities.

b) Connects Emotionally: some celebrities like Shahrukh Khan, Amitabh Bachan command great adoration among people. Such celebrities can positively influence their fans etc. a great extents and hence tend to even connect with the brand emotionally because of their star enduring it.

c) Quick Connect: The communication process tends to hasten up due to the more presence of a celebrity. This is because the star carrying the message tends to click with the customer more. Because of likeability, recall attractiveness and creditability thereby helping the company to clearly and quickly pass on the message to the target customers.

d) Means of Brand differentiaon: using a celebrity is a source of brand differentiation. In a category where a brands is suing a celebrity the first that picks one up could use it differently itself in the market the same was done by Boost in the malted beverage category.

e) Source of Imitation and hence inducing increased product usage: celebrities actually tend to become models or idols for the target audience who tend to start using the product just because the celebrity name is attached with it. For instance, Lux has been used by many as it is a beauty soap recommended by the beauty queen, Aishwarya Rai.

f) Better Brand Image: the use of celebrities could also bring in positive image among the masses for brand. The credibility and authenticity attached with Amitabh Bachan has inculcated trust for ICICI, Nerolac Paints and many others.

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Celebrity endorsement: the latest novelty at Indian weddings

R.K. Chudawala, a diamond merchant in New Delhi, added sparkle to his wedding last year by hiring top Bollywood stars to attend the celebrations - but he comes over all coy when asked for details.

"The idea was to stun the guests, make the mood glamorous and bring Bollywood into our lives," said Chudawala, 34, as he recalled his eight-day wedding party held in Singapore.

The lengthy extravaganza was sprinkled with an array of Indian film and television stars, who flew in to mingle with family and friends at evening parties, as well as to dance with the bride and groom.

For Chudawala, it was an impressive display of his family's wealth and influence, and his house in Delhi is full of photographs showing smiling wedding guests posing with Bollywood pin-ups.

But, reflecting India's complex attitudes to privacy, Chudawala only shows the photographs to visitors on the strict condition that they do not reveal the identity of the star guests.

"It is a necessary rule both for them and for us," he said simply.

Sanjay Dharewa, who owns a celebrity management company in the eastern city of Kolkata, explains that the rented "star guest" phenomenon is due to newly-rich Indian families seeking prestige to underline their wealth.

"Hiring Bollywood actors to make a guest appearance at a wedding is the best way to entertain guests," he said. "It displays your spending power."

Dharewa, who has a reputation for cutting deals with A-list names like Shah Rukh Khan and Hrithik Roshan, says Bollywood actors are often willing to spare time to attend weddings when they are not shooting films.

"Sometimes if the families are willing to give a hefty fee then actors even change their work schedule," he said, adding that families also plan their pre-wedding parties around the stars' diaries.

"Even though everyone knows it is a financial deal, the actors make the family members feel as if they are genuine friends. They hug the groom and bride, crack a joke: all this is just to lift the couple's status," Dharewa told AFP.

And it can be quick bucks too. "Come for ten minutes, smile, talk to the guests, make the hosts feel special and get out. That's it," he said.

A 2010 report by Capgemini and Merrill Lynch Wealth Management said India's dollar millionaire population grew by 51 percent last year to 126,700 individuals.

With weddings traditionally the central focus of Indian life, the new wave of money has created ever-higher demands for lavish, unique marriage celebrations.

Gimmicks include tulips flown from Holland and gold sovereigns given as gifts to every guest.

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"A wedding is the best way to shout, scream, and use every method you can to announce: I am rich. And you are my guest," said Raghav Chopra, a Delhi-based wedding consultant.

Renting a star guest requires delicate negotiations as many Bollywood stars often deny they attend private events for cash.

But wedding planners coordinate with showbusiness agents to maintain a long list of those who may be able to "drop by" for a special dance or group photograph.

"Everything is on a minute-to-minute basis. Some choose to arrive in a helicopter while actresses prefer to make an entry to the venue along with the bride," said Ritu Dhanuka, a wedding planner in Mumbai.

"Everyone wants a bit of Bollywood experience. We secretly crave to see the stars, touch them and get pictures with them."

In 2004, the marriage of industrialist L. N. Mittal's daughter, Vanisha, epitomised how modern weddings can match the extravagance of India's lost era of maharajahs.

It was held in a French chateau with performances by Kylie Minogue and Shah Rukh Khan - and cost a reported 60 million dollars.

The latest trend is for an actor to play in a pre-wedding cricket match with the groom and his friends, or for an actress to go on a girls' shopping trip with the bride.

"All this is tiring to organise but everything is worth it for a bit of star power," said Dhanuka.

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Celebrity Endorsement clicks

Celebrity has become a medium to gather attention and mileage...

Wherever you focus your eyes these days you find celebrity endorsement, whether in advertisements or inauguration ceremonies or special product launches. Celebrity has become a medium to gather attention and mileage. In the Indian jewellery scenario where every upcoming jewellery company wants to emerge as a brand, celebrity endorsement or advertising is the easiest way. Arisia is endorsed by the inimitable Rajmata Gayatri Devi. Nakshtra is endorsed by world renowned beauty Aishwarya Rai, Asmi is endorsed by actresses Kajol and Mandira Bedi, D'damas launched its latest collection through multiple personalities- Celina Jaitley, Lara Dutta,Mahima Chaudhary, Akshay Kumar, Suniel Shetty (The five signature line was designed keeping in mind the stars' personal tastes and is a reflection of glamour and stardom. Each piece of jewellery is inscribed with the filmstars' signature) and Amitabh (D'damas Solitaire). Kiah is endorsed by Sushmita Sen, P.P Jewellers is endorsed by Shilpa Shetty.

Not just product endorsement and advertisement, companies these days have found out new ways to promote their jewellery by celebrities.

In- film Advertising:

In-film product placements, or soft brand advertising is catching up in India. In today's media cluttered environment where it is difficult to grab consumer's attention, marketing managers are looking for innovative strategies to get noticed. One of them gaining popularity in India is "product placement." The practice of placing products and product ads in feature films have been the latest trend these days. The intension behind this type of advertising is to create a sort of subliminal impact on the audience, leaving them with a "good feeling" for the brand.

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The latest example is Tanishq's jewellery in the film "Paheli".Tanishq has been running a promotional campaign for both the film and a jewellery collection inspired by the film. Actual footage from the film is being used in the campaign. And, this isn't the end of the deal. Tanishq has also created the ambience of the movie with posters across its retail outlets. Also, an autographed letter by Shahrukh Khan and Rani Mukherjee will be given out to each customer of this collection. Tanishq has recently unveiled its Paheli Collection while showcasing selected jewellery from this film. The vibrancy of Rajasthani Kundan and Meenakari work has been captured in the jewellery created by Tanishq exclusively for the film.

D'damas, the effervescent brand from the well-known Gitanjali Group, has announced a tie-up with Bollywood big wig Rakesh Roshan for his forthcoming much-talked about offering, Krrish - a sequel to Koi Mil Gaya. D'damas, would launch a signature line of jewellery inspired by this film.

For 'Boom', DTC sponsored 400 carats of diamonds for the glitz, glitter and glamour in the opening scene where a fashion show, against the backdrop of the Gateway of India gets unruly as a fight breaks out among the models over stolen diamonds. The entire story was built on these stolen diamonds. Not alone 'Boom', the protagonist of 'Joggers Park', Perizaad Zorabian, who was also the 'Asmi' brand ambassador, plays an 'Asmi' model in the film. She also performs in a song for an 'Asmi' fashion show in the film, which showcased their new designs.

With new projects coming up, Product placements can be seen as a new marketing strategy with enormous potential for jewellery companies to get into limelight. A right strategy can really differentiate your brand in the market space.

Celebrity Advertising Disadvantages :

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1. Risk of Overexposure:

A celebrity may become the spokesperson of many products, thereby running the risk of getting overexposed. With each celebrity endorsing multiple products and multi brands in a category, resorting to different celebrities, the consumer gets confused. Possible examples are Amitabh Bachchan and Aishwarya Rai, who are spokespersons for multiple products and services.

When a celebrity is a spokesperson for one product he may have high credibility. When he endorses a variety of products, his or her perceived credibility gets reduced due to overexposure. The economic motivation underlying the celebrities' endorsement effort may also become too apparent to consumers and they may take them for granted.

Similarities are often drawn between the elegant Rajmata and the most precious of gemstones: the diamond. Diamond has always been an object of wonder and awe; a symbol of strength, courage and invincibility - just what the revered Rajmata stands for. The select few women who will purchase pieces from this exclusive collection are sure to radiate the aura of royalty that each piece of diamond exudes impeccably.

2 . The Celebrity Vampires the Product:

A big risk is the chance of the celebrity overshadowing the brand itself. In such a situation, consumers may recall the celebrity's endorsement campaign of the product category, and provide vivid descriptions of the ad itself, but they may not be able to recall the brand! And in a celebrity clutter, the chances that the brand and category can be remembered become even more difficult for the average consumer. D'damas tend to use multiple celebrities in an attempt to overcome this.

3. The Celebrity Trap :

Once into a celebrity trap, it is hard to get out of it. If the brand has done even moderately well after the break of a celebrity campaign, it becomes difficult to separate the role of message and the role of the celebrity in selling the brand. And hence, the celebrity becomes an addiction for the marketing team.

And the task to find substitutes becomes more and more difficult. Interestingly, celebrity is a disease that is seen to spread across a marketing department. Once one brand manager gets into it, others tend to follow, not wanting to be left behind!

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4 . Image Conflict :

A celebrity stands for some of his/her traits in the minds of most consumers. This 'brand image' will be rubbed onto the product only if there is a synergy between the celebrity's own image and that of the product category.

Amitabh Bachchan endorsing 'Reid & Taylor' however is more acceptable because his image matches that of the brand.

5 . Image Failure:

When due to some reason endorser's image is hampered, it usually becomes a big problem for the brand- guilt associated in the consumer's mind. Then it takes time for that old image to fade out, new efforts and a lot of money to build that right image again through new campaigns. Celebrity endorsements will continue to exist despite their pitfalls. Consumers are definitely influenced by celebrities to purchase products endorsed by them.

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Celebrity endorsements could be a two-edged sword

Michael Phelps

23-year-old swimming star Michael Phelps apologized for his "regrettable" behavior and "bad judgment" after he was photographed inhaling from a marijuana pipe, but Kelloggs decided to drop its lucrative endorsement deal with the Olympic gold medalist anyway.

Martina Hingis

If you're receiving loads of cash for endorsing a company, it's probably not a great idea to sue that company. Case in point: Martina Hingis. Tennis player Hingis was a celebrity spokesperson for an Italian sneaker and tennis-gear company, Tacchini. Until she sued them, that is, claiming their gear was responsible for several injuries. Needless to say, Hingis did not represent the company much longer.

Kate Moss

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Companies Distance Themselves from Michael Vick

Chanel is the epitome of class, and has been for nearly 100 years. So in 2005, when model Kate Moss was filmed allegedly snorting cocaine, she was dropped as the face of the label. Burberry and H&M also quickly dropped campaigns starring the supermodel. Maybe it wasn't the best idea to hire a model famous for inspiring the phrase "heroin chic" in the first place.

Madonna

Throughout her career Madonna has been famous for stirring things up. Her "Like a Prayer" music video was no exception. The video, which aired in 1989, showed the singer getting physical with a saint and developing stigmata. Pepsi, who had just signed a $5 million deal with Madonna, was not pleased. The company quickly dropped commercials starring the singer, and canceled all of her future appearances

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Just one day after Atlanta Falcons quarterback Michael Vick pleaded not guilty to federal dogfighting charges, companies began distancing themselves from the controversy. Nike suspended its contract with him, Reebok stopped selling Vick jerseys and trading card companies Donruss and Upper Deck removed Vick's card from the rest of their 2007 card pack releases. The NFL also pulled all Vick jerseys, autographed items and other memorabilia from its NFL Shop site. 

Reebok is not one of Vick's endorsement deals but is the NFL's supplier of apparel. This is the first time Reebok has stopped the sale of a particular player's merchandise since becoming the league's official supplier in 2001. 

Nike, on the other hand, is one of Vick's most prominent endorsement deals. The company's original response postponed the release date of the Vick-endorsed Air Zoom Vick V shoe from August 23 to a date unknown. Eight days later, Nike announced it had decided to suspend its endorsement deal with the quarterback and stop selling Vick merchandise at all of its Nike owned retail stores. The decision came just days before the People for the Ethical Treatment of Animals (PETA) planned to protest outside NikeTown stores across the country. 

Vick's past endorsement deals have included Coca-Cola's Powerade, EA Sports, Hasbro, Kraft Foods and Rawlings. Those deals expired before the dogfighting allegations became public. 

AirTran also held a contract with Vick but the company ended that deal in May 2007. The company has not made a public announcement over why the deal was nixed but sports marketers say the contract was axed because of Vick's bad press from flipping off Falcons fans, the police search on his home in Fairfield, Virginia, and Vick's publicist blaming AirTran for Vick's missed appearance in Washington to speak before Congress. 

Celebrity Endorsement Contracts Gone Bad

Here are several examples of where bad decisions or poor judgement cost celebrities their endorsement contracts.

Tiger Woods and Gatorade, AT&T, and Accenture

There are few people who don't remember Tiger Woods' recent problems. The golf super   star's  affairs were made public earlier this year by media everywhere, and hard-core fans and even people who didn't know a thing about golf, were shocked to find out Woods' wholesome, role-model image wasn't all it was thought to be. Although Woods apologized, he lost endorsement deals (or was not given the opportunity to resign them) with Gatorade and AT&T, and Accenture had to scrap an entire campaign based around Woods. 

Procter & Gamble's Gillette, Tag Heuer, and LVMH Moet Hennessy Louis Vuitton didn't

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completely drop Tiger, but they did shift the focus of their campaigns away from him. Nike and Electronic Arts Inc. continued to include Woods in their campaigns. It is estimated that Woods lost about $12 billion after his affairs hit the news.

Kobe Bryant and Nutella and McDonalds

When Kobe Bryant got in trouble with the law, he damaged not just his image, but two major endorsement deals. In 2003, Nutella, made by Ferrero, let the basketball hero's contract expire when a hotel maid in Colorado accused Bryant of sexual assault. Then, in 2004, Bryant's contract with McDonald's was not renewed. Although Bryant made a public apology and settled the assault case out of court, he lost endorsement agreements with two major businesses.

Madonna and Pepsi

In 1989 Madonna came out with her infamous music video for "Like a Prayer" that offended many with its controversial religious imagery, including burning crosses, and lost her chance to advertise for Pepsi. The popular soda company cancelled its television commercials featuring Madonna after viewers were confusing the spot with the music video and were upset with Pepsi's apparent approval of its contents. In fact, The American Family Association started a boycott of Pepsi products, but later ended it .

Michael Phelps and Kelloggs

U.S. Olympian and hero to many in the swimming world, Michael Phelps had an excellent reputation. Fans were glued to their television sets as they watched him swim laps up and down pools and win 14 Olympic gold medals, more than any other Olympian. However, America's love affair with Phelps cooled down when pictures of the athlete smoking a marijuana pipe hit the press. Kellogg's had an endorsement deal with the star, but decided not to extend it, most likely due to Phelp's drug issues. 

After the incident, Phelps was not given financial support from USA Swimming, or allowed to compete, for three months due, not to a violation of rules, but because the organization didn't believe Phelps was fit to be a role model. However, Speedo, Omega, and Visa all continued their relationship with Phelps.

O.J. Simpson and Hertz

Most people remember the O.J. Simpson trial, full of car chases and gloves. The well-known football player and broadcaster was almost equally as well known for the Hertz commercials he stared in, beginning in the 70's. When Simpson was accused of domestic abuse,

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Hertz ended their contract with him in 1992. 

Two years later, Simpson was tried for murdering his wife Nicole Brown Simpson and Ronald Goldman. The trial was drawn out and the country was fascinated by the details of the case and the often controversial developments. Hertz was probably grateful it no longer had a contract with Simpson when he was tried for double murder.

Kate Moss and Chanel, Burberry, and H&M

Kate Moss, the extremely well-known English beauty, is a successful model who has been featured on more than 300 magazine covers. Making millions every year, Moss has been in lots of advertising campaigns and is known for her relationships with other famous people. However, even money and connections can't save a celebrity caught snorting cocaine. 

In 2005, the Daily Mirror printed pictures of Moss using the drug with her former boyfriend. When the story came out, Chanel decided not to renew its endorsement contract with the model after it was scheduled to end a month later and Burberry cancelled a planned ad campaign that featured Moss. H&M originally stood by Moss when she apologized to its marketing chief, but later ended the relationship over fears the fall out would harm their image as a company that supports drug prevention and who works with the Mentor Foundation.

Martina Hingis and Tacchini

When tennis player Martina Hingis sued Tacchini in 2001 (an Italian shoe and tennis gear business) she came out on the bottom both when the case was dismissed and she lost her endorsement deal with the company. The extremely accomplished Swiss athlete wore Tacchini shoes for four years as the company's main celebrity endorser, then filed a lawsuit against the same company, claiming the shoes caused chronic foot problems. 

What's a company to do when it is sued by one of it's endorsers? Drop the celebrity of course. Tacchini filed for bankruptcy in 2007 and then a year later, the remaining parts of the business where bought by a businessman in Hong Kong.

Michael Vick and Nike, AirTran Airways, Coca-Cola, and Kraft Foods

Animal rights activists and football enthusiasts alike were disappointed in Michael Vick when he was accused of conspiring to run an interstate dog-fighting operation in 2007. The day after the iconic player pleaded not guilty to the charges, Nike stopped selling Vick-centric merchandise (as did Reebok) and suspended his contract without pay. When Vick eventually pleaded guilty Nike ended the endorsement deal. Interestingly enough, after Vick served a 20-month sentence, Nike picked him up as a celebrity endorser again in 2009.

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But wasn't all the football star had to deal with. Also in 2007, Airtran Airways didn't renew Vick's endorsement contract when it expired. It's unclear whether the relationship came to an end over the dog-fighting incident or one of Vick's other questionable situations like when he made obscene gestures to fans or when airport security found suspicious material in a water bottle.

After Vick's scrape with the law, Coca-Cola also chose not to renew their contract with the athlete but stated the decision to end the PowerAde campaign featuring Vick was made a few years before the incident occurred. Kraft Foods also didn't renew their endorsement contract with Vick, for unknown reasons.

Chris Brown and Doublemint

If you were to ask Brown "Got Endorsements?" The answer would be no.  In 2009, the singing sensation Chris Brown was arrested for assaulting his girlfriend and fellow singer Rihanna. This prompted the Milk Processor Education Program to discontinue their Chris Brown "Got Milk?" ads and a radio station in Cleveland stopped playing his tunes. While Wrigley did say Brown deserved due process in the proceedings, they stopped running their Doubleming ads featuring the R&B artist.

SUCCESSFUL CELEBRITY ENDORSEMENT

Quotes of some Cricket legends about Sachin Tendulkar (master blaster/little master):

“ Now I never saw myself play, but I feel that this player is playing much the same as I used to . I saw him playing on television and said yes, there is a similarity between the two ( of us ) , I was struck by his compactness, technique, stroke production... it all seemed to gel ” Sir Donald Bradman.

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“ I have watched a lot of Tendulkar and we have spoken to each other a lot. He has it in him to be among the very best.” Sir Garfield Sobers.

“ He is 99.5 per cent perfect. I'd pay to see him.” Viv Richards.

Sachin Tendulkar is not only known about the art ( Cricket ) he mastered upon but also for his humanity . Recently he refused a Rs. 20 crore liquor ad of the UB group for the sake of young budding talents of Indian sports.

It has been more over a decade now MRF endorsed Sachin to play with their bat (with MRF logo on it.) which he has been doing it since. Many of his contemporaries started to play with MRF logo bat whom the company didn’t endorse at all. A couple of years ago he has put down the endorser but it has not stopped young budding talents of Indian cricket from playing with MRF logo bat . In fact many in the under 18 / state level cricket still continue to do the same.

UN - SUCCESSFUL CELEBRITY ENDORSEMNT

Shahrukh Khan – Lux Endorsement

LUX - one of the most trusted brands in the country - is celebrating its 75 years of stardom in India. LUX soap was launched in India in 1929. Down the ages, every leading Bollywood star has been a 'LUX' star. Right from its first Indian star Leela Chitnis, LUX has gone on to feature Madhubala, Madhuri Dixit, Karishma, Aishwarya Rai , Kareena and now Katrina Kaif, who have all endorsed the goodness of LUX. It is probably the only brand that has had the endorsement of nearly 50 Indian film stars.

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Across India, the four new variants of LUX that were in a special 75th vear commemorative celebration pack was endorsed by Dream Girl Hema Malini, Beautiful Juhi Chawla, Stylish Kareena and Sensuous Sridevi. They all came together in the new LUX ad with the first Indian male star... Shah Rukh Khan !

From its very inception the “target market” of LUX soap has been the “feminine sector “.

Before endorsing Shahrukh Khan in 2004 , the soap giant didn’t go for any special promotion or advertising campaign to penetrate the men’s’ sector.

As a result Lux soap successfully failed to make space in men’s choice of bathing bar .

Most Bizarre Celebrity Endorsements

We've all got to make money somehow, and no one's proud of every job they've had, even celebrities. When

the cash runs out, we tend to get a little creative with finding ways to earn a living, even endorsing products

or ideas we'd never normally use, or admit to using. Below is a list of 10 of the most bizarre celebrity

endorsements and promotions, from a spa-loving reality star touting toilet paper to a model's so-called

healthy candy line. They might want us to forget, but there's no way we can let these go.

Mr. T : Flavor Wave Oven Turbo:

After a career as a professional wrestler and actor, Mr. T tried to get kids

to stay in school, played Santa Claus to Nancy Reagan at the White

House one year, and has appeared in a number of commercials,

endorsing all kinds of goods. The weirdest? When Mr. T hosted his own

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infomercial plugging the Flavor Wave Oven Turbo, "an amazing invention"

that prepares low-fat meals without a lot of mess in the kitchen.

James Dean : Safe Driving PSA: Even after just a few films, actor

James Dean became an American icon, known for his moody but charming

swagger, youthful carelessness, and remarkable talent. He died in a car crash

after speeding down U.S. Route 66 in California on his way to a car race. But in this

PSA, he counsels the public on safe driving, saying that he's finished

speeding. "I find myself being very cautious on the highway," he says. "I don't have the

urge to speed on the highway." When asked to give advice to any young

people watching, Dean looks directly at the camera and jokes, "Take it easy

driving. The life you might save might be mine," before

chuckling and walking off set. He was dead within months.

Recommendation

Despite the rapid modernization & cross-cultural influence on Indian society , many Indians continue to live in joint families in harmony & share a strong sense of family bonding.

Indian Celebrity Endorsements market is worth Billions.

Companies whether MNC’s or not endorse celebrities to capture consumer attention & guide their buying behavior.

Tanishq , Indias largest retail jewellery chain , endorsed quit a few celebrities over the past few years :-

Arundhati Nag Vipasha Agarwal

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Vaishali Desai

with Nafisa Ali as mother in the ad ( successfully failing to portray mother / daughter relation on screen )

& here comes the need of what we call “ THE REAL FAMILY BONDING ”

Top on the list of father / mother & son / daughter relationship are :-

Jaya Bachchan – Abhishek Bachchan*

Neetu Kapoor -- Ranvir Kapoor*

Anil Kapoor – Sonam Kapoor

Hema Malini Deol - Esha Deol*

*(special promotion for Mother’s day )

Moving on , popular among youngsters ( Male ) :

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Ranvir Kapoor

Shahid Kapoor

Popular among youngsters ( Female ):

Anushka Sharma

As far as celebrity couples are concerned they add to the credibility factor. They look more convincing being together in the ad.

Thanks to the level of comfort they share .

Tanishq has recently signed Amitabh & Jaya Bachchan in their ad

BUT

This ads’ appeal is somewhat restricted to the 60s’ club .

Can endorse celebrity couples in 30s’—

Abhishek – Ashwarya

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AJAY - KAJOL

Could also endorse celebrity couple Ajay Devgan & Kajol ( brand ambassador of “OLAY” at present )

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Coming to Southern region, to put a strong foothold, Tanishq can endorse popular South Indian couple:

Surya – Jyothika [currently brand ambassador of Nescafe India along with a bunch of other brands]