impact-onnnnf-celebrity endorsement on brands

8/20/2019 Impact-Onnnnf-celebrity Endorsement on Brands

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IMPACT OF CELEBRITY

ENDORSEMENTS ON

OVERALL BRAND {Searching for the Right Match}

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CONTENTS P.NO .

1. ITRODUCTION 2

2. SYNOPSIS 4

3. DEFINING THE MEANING & SCOPE OF THE TOPIC 7

4. IMPORTANT CELEBRITY ATTRIBUTES 9

5. THE NEED FOR CELEBRITY ENDORSEMENT 10

6. SCOPE OF CELEBRITY ENDORSEMENT 11

7. IMPACT OF CELEBRITY ENDORSEMENT 13

. THE PROCESS OF CELEBRITY ENDORSEMENT 1

9. RIS!S ASSOCIATED "ITH CELEB. ENDORSEMENT 21

10. CELEBRITY SELECTION 22

11. CELEBRITY ENDORSEMENT# THE ISSUES IN$OL$ED 24

12. FRAME"OR! OF ENDORSEMENT PROGRAM 26

13. "HY CELEBRITY ENDORSEMENT FAILS% 32

14. !INDS OF CELEBRITYHOOD 40

15. RESEARCH & ANALYSIS 42

16. CASES ANALYSIS USING THE FRAME"OR! 55

17. CONCLUSION 5

1. REFERENCES 67

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INTRODUCTION

The modern world of marketing communication has becomecolorful and inundated with advertisements, and it is hard to get

noticed. It is an uphill task for the designer of an advertisingcampaign to differentiate itself from others and attract viewers’attention.

Everyday consumers are exposed to thousands of voices andimages in magaines, newspapers, and on billboards, websites,radio and television. Every brand attempts to steal at least afraction of an unsuspecting person’s time to inform him or her of the amaing and different attributes of the product at hand. The

challenge of the marketer is to find a hook that will hold thesub!ect’s attention.In helping to achieve this, use of celebrityendorsers is a widely used marcom strategy.

In this !et age, people tend to ignore all commercials andadvertisements while flipping through the magaines andnewspapers or viewing T". #ut even then, the glamour of acelebrity seldom goes unnoticed. Thus, celebrity endorsement inadvertisement and its impact on the overall brand is of greatsignificance. In this process, the companies hire celebrities from a

particular field to feature in its advertisement campaigns. Thepromotional features and images of the product are matched withthe celebrity image, which tends to persuade a consumer to fix uphis choice from a plethora of brands. $lthough this sounds prettysimple, but the design of such campaigns and the subse%uentsuccess in achieving the desired result calls for an in&depthunderstanding of the product, the brand ob!ective, choice of acelebrity, associating the celebrity with the brand, and a frameworkfor measuring the effectiveness.

'ompanies invest large sums of money to align their brands andthemselves with endorsers. (uch endorsers are seen as dynamicwith both attractive and likeable %ualities and companies plan thatthese %ualities are transferred to products via marcom activities.)urthermore, because of their fame, celebrities serve not only tocreate and maintain attention but also to achieve high recall ratesfor marcom messages in today’s highly cluttered environments.

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Aristote said, *#eauty is a greater recommendation than anyletter of introduction.+ This could aptly summarie why innumerableproducts are endorsed by celebrities, with or without a significantneed or benefit from the same.

(imilarly every product has an image. The consumer tries toconsume a brand which has the maximum fit with hisher ownpersonalityimage. The celebrity endorser fits in between these twointeractions, where he tries to bring the image of the product closer to the expectation of the consumer, by transferring some of thecultural meanings residing in his image to the product.

*The model of 'elebrity Endorsement+, is essentially based on thetheoretical framework of Cassica Con!itioning given by -avlov.

pfront, this seems like a very effective weapon in mature and

saturated markets, which differentiates products from those of thecompetitors by clearing the clutter and reaching the consumer. #utis the impact so significant, or are the celebrities themselvesadding to the clutter/

Through this paper we primarily try to evaluate the impact of anycelebrity endorsement campaign on the brand by analying itthrough our "I#$act%Ana&sis Fra#e'or() consisting of & brand,consumer and the celebrity as well as the interactions between the'onsumer & Endorser and #rand & Endorser.

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$nd finally, is the investment in a celebrity commensurate to thereturns earned by the company/

If the world were full of all wise men and all wise women0 we would

have never heard of a term called “advertisement”. $nd then goodproducts would have found the right customers and grown toprosperity. )irms would have worked out a mathematical formula tosell and succeed. #ut the buying process isn’t rational0 and so isthis world.

Indians are die&hard movie and sport buffs0 and this aspect of theconsumers has invited the concept of *'elebrity Endorsement+ tothe world of advertisement. The purpose of this paper is to analyethe role of 'elebrity Endorsement in the process of brand&building

by taking appropriate examples from the advertising landscape.

SYNOPSIS

“Successful branding programs are based on the concept of singularity. The objective is to create in the mind of the prospect the perception that there is no other product on the market quitelike your product.”

% A Ries * La+ra Ries

Indian advertising started with the hawkers who used to call outtheir wares right from the days when cities and markets firstbegan. 1ith this evolved a strategy that tried to benefit from theemotional attachment of the admirers or the fans of the celebrities0in the form of celebrity endorsement.

-aper tries to understand the process of consumer psychologyand impact of celebrity endorsement on the overall process of brand building. The in&depth study of various models brings to lightthe complexities pertaining to celebrity endorsement. $ symbioticmodel has been proposed to define2 how to make celebrityendorsement a win&win situation for both the brand and the brand&endorser. "Bran!) is the most valuable asset of any firm. $nythoughtless adventure can be like the (word of 3amocles. It’s the“strong idea” of promotion which is a more strategic means of brand&building0 which can be an economical alternative over celebrity endorsement.

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“It doesn’t matter ho ne an idea is! hat matters is ho ne it becomes.”

% Eias Canetti

“If you’re trying to persuade people to do something" or buy something" it seems to me you should use their language" thelanguage in hich they think.”

% Da,i! Ogi,&

This paper rifles through the concept of celebrity endorsement andprovides insights on what it is and how the increasing number of endorsements, throw a valid %uestion to the consumers. Is there a

science behind the choice of these endorsers or is it !ust by thepopularity measurement/ 1hat are the reasons which lead toimpact of celebrity endorsement on brands/

Through research and analysis, this paper emerges with a 45&pointmodel which can be used as blue&print criteria and can be used bybrand managers for selecting celebrities, and capitalies thecelebrity resource through 678 degree brand communication sinceour research proposes it as the foundation brick of the impact of

celebrity endorsement. 9ur study reveals that the impact of celebrity endorsement is proportional to the 45 factors discussed inthe model.

The success of a brand through celebrity endorsement is acumulative of the 45 attributes. :reater the score of the belowgreater are the chances of getting close to the desired impact.

The general belief among advertisers is that brand communicationmessages delivered by celebrities and famous personalities

generate a higher appeal, attention and recall than those executedby non&celebrities. The %uick message&reach and impact are alltoo essential in today’s highly competitive environment.

1e put forward certain ideas like ;positioning by association’,;diminishing celebrity utility’ and the


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=ow, despite the potential benefits derived from celebrityendorsements, they increase a marketer’s risk manifolds andshould be treated with full attention and aptitude. $ brand shouldbe cautious when employing celebrities to ensure promise

believability and delivery of the intended effect. The growingimportance of mythical characters as celebrities and their swayover the target segments are ample proof of public demand for icons to look up to. $s the celebrities traverse from a merecommercial presence to public welfare message endorsements, awhole new dimension is added to this process and helps us inachieving a holistic view of the impact which celebrities generate inevery sphere and segment through their well&versedendorsements.

'elebrities have also been in demand having succeeded in beingeffective by rising above the clutter > grabbing the attention andfocus of the consumer. They also succeed in creating an aspirationin the minds of the consumer to ac%uire what their favoritecelebrity endorses.

?owever, the above might be too simplistic a solution for multitudes of marketing problems in the real world. ?ence toanalyse how effective any 'elebrity Endorsement campaign is, we

need to look at the various factors which impact its success.Through this paper, we have developed an analytical structurecalled "I#$act%Ana&sis Fra#e'or() comprising three mainfactors & #rand, 'onsumer, Endorser and the interaction between#rand & Endorser and 'onsumer&Endorser.

)urther, we apply our framework to a series of celebrity campaignsto gauge the reasons for the success and failures of each to checkthe validity of our model. In our analysis, we also came across

factors which have impacted campaigns in very specific terms andhence cannot be generalied0 to elucidate the same, we havepresented analysis of some of these uni%ue cases which havebeen marked by diverse outcomes.

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DEFINING THE MEANING & SCOPE OF THE

TOPIC

BRANDING & CELEBRITY ENDORSEMENT

Today, use of celebrities as part of marketing communicationstrategy is fairly common practice for ma!or firms in supportingcorporate or brand imagery.

-hat is a Bran!.

/ac( -ech, the former 'E9 of :eneral Electric, once said, *9ur most valuable assets are our intangible assets.+ The intangible

asset he was referring to is a brand. The 3ictionary of #usiness >


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In this age of intense competition, where capturing a position in theconsumers’ mind space is extremely tough, celebrityendorsements give an extra edge to the companies for holding theviewers’ attention. 'elebrities can catalye brand acceptance and

provide the enormous momentum that brands re%uire by endorsingthe intrinsic value to the brand.

*The term 'elebrity refers to an individual who is known to thepublic Bactor, sports figure, entertainer, etc.C for his or her achievements in areas other than that of the product classendorsed+ B)riedman and )riedman, 4DDC. This is true for classicforms of celebrities.

Fike actors Be.g., $mitabh #achchan, (hahrukh Ghan, $ishwarya

Hai,, -reity inta, $amir Ghan and -ierce #rosnanC.

Mo!es Be.g.,


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IMPORTANT CELEBRITY ATTRIBUTES

1hile selecting a celebrity as endorser, the company has to decidethe promotional ob!ective of the brand and how far the celebrity

image matches with it. The selection is in fact a collaboration, fromwhich both the company and the celebrity gains.

The most important attribute for a celebrity endorser is thetr+st'orthiness. The target audience must trust that a celebritycarries a particular image and it must match with the product.

The second attribute in order of importance is i(ea1iit&. Thecelebrity also must be accepted as a popular icon by a large crosssection of the audience.

Si#iarit& between the target audience and the celebrity is thethird important attribute. $ person well&known in a society can havegreater impact than a celebrity of a different world. If the endorser and receiver have similar needs, goals, interests and lifestyles, theposition advocated by the brand communication is better understood and received. (imilarity is also used to create asituation where the consumer feels empathy for the person shownin the commercial. The bond of similarity between the endorser

and the receiver increases the level of persuasiveness.

$part from that, e2$ertise is also believed to be another importantattribute.

Definition of Cee1rit& En!orse#ent

$ccording to Frie!#an * Frie!#an, a *celebrity endorser is anindividual who is known by the public for his or her achievements

in areas other than that of the product class endorsed.+ (o, in the'oco&'ola advertisement0 actor $mir Ghan is the celebrityendorser for the product or brand called 'oke, and this process isreferred to as 'elebrity Endorsement. 'elebrities might endorse asa brand ambassador or a brand face.

Difference 1et'een Bran! A#1assa!or * Bran! Face

$ #rand $mbassador would be one who is not only aspokesperson for the brand or is !ust appearing as a testimonial for

the brand’s benefits. ?eshe is an integral part of the brand

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persona and helps to build an emotionale, which goes beyond !ustappearing on T" commercials.

?e takes up the cause of a #rand 'hampion and is associated

with every aspect related with the brand. 1hat is more, there is asignificant difference between making !ust an endorsement for say,a shampoo or an automobile, and being that brand’s alter ego.#oth parties take the latter far more seriously to the deal. (o abrand ambassador would be involved in press releases, heshewould be actively participating in any sales promotion, sporting the#rand all the while. )or example, )ardeen Ghan is the brandambassador for -rovogue while he remains a brand face for Fux#ody 1ash.

9n the other hand, a #rand )ace would be the current celebritywho is !ust used as a tool to increase brand recall and is onlyappearing in the advertisement. It is usually seen that a brand faceis a temporary contract and is very short term at times. $nexample would be (ona 'handi 'hawanpryash using (ourav:anguly for a while in its commercials. #rand faces are easilyforgotten and fades away with the campaign’s end

THE NEED FOR CELEBRITY ENDORSEMENT

The charisma of the celebrities almost always entices people andtheir words are worshipped by a lot of people. Their influence alsogoes on the political front, where they are invited for politicalendorsement. Eg. ?ema


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Fack of ideas

'onvincing clients

"HY COMPANIES USE CELEBRITIES THECELEBRITY EDGE

Ps&choogica Factors3 'elebrities generally satisfy theMesteem needsM of an individual. )or example a movie actress isexpected to possess a flawless skin and a blemish free face. ?erfans want to know the secret of her beauty, so she becomes anatural endorser for beauty related products Bcosmetics, soaps,powderC.

propping U' A()*+,+-- ), T*/- L++-# Rahul dravid - bob

To C/,)+ ) C+*), M+--)+ )8/ + C'),:#

Sachin Tendulkar a brand a!baador gave i" "he deired #aceli#" and

i!age #or "he launch o# $%ic"or$

%alue ;* M,+:# To P-, +* B*), D-,+:# &u' (orld(ide ha poi"ioned

i"el# a "he $oap "he #il!"ar ue$) *ro! &eela +hi"ni "o ,ih(ara Rai.

all "op ac"ree have !odeled #or &u') +elebri" S),, ;* ) S,+ B*),#Think /akir uain and ou

are re!inded o# $ah Ta$ Ta ahal "ea) i""o (i"h ,) R) Rah!an #or

,ir"el)

SCOPE OF CELEBRITY ENDORSEMENT

The use of testimonials by advertisers dates back to the 4Dth

century when medicines were patented. )irms have been

!uxtaposing their brands and themselves with celebrity endorsersBe.g., athletes, actorsC in the hope that celebrities may boosteffectiveness of their marketing andor corporate communicationattempts for at least a century. 9ne of the early example is Nueen"ictoria’s endorsement of 'adbury’s 'ocoa B(herman, 4DOKC. Itwas not until the 4DP8s, however, that advertisers used famouspeople for product endorsements.

$ctresses Joan 'rawford, 'lara #ow and Janet :aynor were

among the first celebrities to promote products B)ox, 4DO5C. $t thattime, the rationale given by advertising agencies for using

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celebrities was *the spirit of emulation+ B)ox, 4DO5, p.D8C. $bout adecade ago, one in three television commercials used celebrities’endorsements B#usiness 1eek, 4DOC, and today this advertisingapproach appeared to be on the increase across all media types

B(herman, 4DOK and Fevin, 4DOOC. )riedman B4DC found thatcelebrities are featured in 4K percent of the prime&time televisioncommercials. In the nited (tates, it was reported that about P8Lof all television commercials feature a famous person, and about48L of the dollars spent on television advertising are used incelebrity endorsement advertisements B$dvertising $ge, 4DO0(herman, 4DOKC. Thus, celebrity endorsement has become aprevalent form of advertising in nited (tates and elsewhere.

Today, the use of celebrity advertising for companies has becomea trend and a perceived winning formula of corporate imagebuilding and product marketing B


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4. -roduct differentiating factors are duplicable and imitable.P. $ll long existing and successful brands imbue their products witha meaning.

IMPACT OF CELEBRITY ENDORSEMENT

The increasing number of endorsements throws a valid %uestion tothe consumers. Is there a science behind the choice of theseendorsers or is it !ust by the popularity measurement/ 1hat arethe reasons which lead to impact of celebrity endorsement onbrands/

Through research and analysis, this paper develops a 45 pointmodel, which can be used as a blueprint criterion which can beused by brand managers for selecting celebrities, and capitaliesthe celebrity resource through 678 degree brand communication,since our research proposes it as the foundation brick of theimpact of celebrity endorsement. 9ur study reveals that the impactof celebrity endorsement is proportional to the 45 factorsdiscussed in the model.

The success of a brand through celebrity endorsement is acumulative of the following 45 attributes. :reater the score of thebelow parameters, greater are the chances of getting close to thedesired impact.

Fit 'ith the A!,ertising I!ea

9ne of the most successful celebrity endorsement campaignswhich reflect the fit between the brand and the 678 degreeadvertising fit is )ardeen Ghan and -rovogue. -rovogue’spositioning in the apparel market is of a young, active, party&going,attention&grabbing brand and so is )ardeen Ghan. The con!unctionbetween the two has been immensely impactful and brandmanagers have utilised this endorsement through 678 degreereinforcement.

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Cee1rit&%Target A+!ience Match

(mriti Irani endorsing the 1?9 recommended 9H( 'ampaign inIndia. Indian mothers can associate with (mriti Irani through the

facets she pro!ects on screen or in regular life which helps developa connect with the target audience since mothers medicate their children with 9H(.

Cee1rit& Va+es

Tabu endorsing Tetra -acked (hahrukh Ghancampaigning for -ulse -olio or $ishwarya Hai appearing in the3onate Eyes campaign are few examples, which reflect the

transfer of celebrity values to the brand, creating an impact thatgenerates recall.

Costs of Ac>+iring the Cee1rit&

Hecently, a newspaper report showed how cola firms had gonebeyond their advertising budgets to get the best celebrities. (mallfirms that use celebrities’ services run greater risks if they investlarge amounts. $lthough nobody is willing to say exactly how much

celebrities get paid, industry sources say (achin Tendulkar’s priceis believed to be between Hs. P.8&P.K crores per endorsement, andmusician $. H. Hehman, who had signed up with $irTel, is believedto have picked up Hs. 4.K crores. )ilm&star ?rithik Hoshan wasrumored to have picked up Hs. P crores for the )ly 1ith ?rithikcampaign to push 'lose&p, and (hahrukh Ghan’s rate seems tobe between Hs. P.K&6.8 crores. $ishwarya Hai apparently picks upHs. 4.PK crores for an endorsement and the Indian cricket captain(aurav :anguly is believed to get between Hs. D8 lakh to Hs. 4.Kcrores, while film&star $amir Ghan apparently makes Hs. 4.K croresper endorsement.

Cee1rit& Regiona A$$ea Factors

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Cee1rit&%Pro!+ct Match

'yrus #roacha is the brand ambassador for (imone (ingh, $gni 3iamonds > Hiama (en don’t get much brandrecall, and even if they do, its difficult to attribute it to thecelebrities’ endorsing the brand.9n the other hand, ?-'F has hadincreased popularity and share of voice due to the endorsement of the brand through (ania


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Cee1rit& Cre!i1iit&

The most important aspect and reason for celebrity endorsementis credibility. In a research carried out among 56 ad agencies and

companies, most experts believed that the most importantdimensions of credibility are trustworthiness and prowess or expertise with regard to the recommended product or service. 9neof the most obvious reasons of $mitabh #achchan endorsingplethora of brands is the credibility of the celebrity and hisrecognition across consumers.

To site one of the most successful campaigns in which thecelebrity’s credibility has had an indelible impact on the brand andhas saved the brand is of 'adbury’s. $fter the worm controversy,

$mitabh #achchan’s credibility infused into the brand through thecampaign, helping it to get back on track. The campaign has wonan award for the same.

M+ti$e En!orse#ents

=ot many people can remember all the brands that a celebrityendorses and the chances of losing brand recall increases if thecelebrity endorses multiple brands. )or example, in case of (achin

Tendulkar people recall -epsi, T"( "ictor and


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IMPACT REGIONS OF CELEBRITY

ENDORSEMENT#

The illustrations below explain the same2 &

Source# $dopted from T%& et al" '(().

THE PROCESS OF CELEBRITY ENDORSEMENT

The process of celebrity endorsement is more of meaningtranslation > meaning application. $ deeper insight into thiscomplex process is provided by the following theory.

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The Meaning Transfer Mo!e


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'elebrities actually own their meanings because they have createdthem on the public stage by dint of intense and repeatedperformance. They pass these meanings into advertisementsthrough meaning transfer process. -reity inta, for example, is

perceived as a fun&loving, vivacious and modern Indian woman.

En!orse#ents

The meaning transfer model proposes that the marketing advertising firm at first should determine the symbolic propertiessought for the product. Thereafter, they should consult a host of celebrities and their associated meanings. )inally, after consideringbudget and availability constraints, the celebrity should be chosento represent the appropriate symbolic properties. The chosen

celebrity will have some meanings associated with it which is notsought after for the product. The advertisement program shouldtake care about keeping the unwanted meanings out of the evokedset and capture only the salient meanings. The advertisementmust be designed to highlight the essential similarity between thecelebrity and the product.

Cons+#$tion

'onsumers constantly search for the ob!ect world which givesthem access to workable ideas of demography, personality,lifestyle and culture.


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“If commerce is the engine of our economy" then advertising is thespark. *esponsible advertisers are the drivers ho keep us on theright track" leading to a richer" more benevolent society.”

RIS!S ASSOCIATED "ITH CELEBRITYENDORSEMENT

The concept of "Tota Bran!ing) is slowly emerging and manycompanies are focusing on that. They are emphasiing on their best practices, customer relationship management, and employeetraining and knowledge management. Internal brand management,under which the company ensures that employees and channelpartners are convinced about the brand, is becoming particularly

important, for they are the ones who have to deliver. Thus, thecelebrity endorsement can be considered only as a carrier of what’s inside.

#esides, while designing an ad campaign, one should also keep inmind that the overuse of some extremely popular celebrities oftentends to confuse consumers and reduce the utility of celebrityendorsement. $nother argument against celebrity endorsementinvolves the behavior of the celebrity. The marketing function of acompany should also understand that brands should assume amuch greater space than the celebrities, because their associationmay be temporary but the brands are permanent.

The various risks associated with celebrity endorsements are asfollows2 &

RNegati,e $+1icit& % If the celebrity is strongly associated with thebrand then the occurrence of the negative publicity can spill over the brand.. E.g., (alman Ghan lost his endorsement deal with

Thumbs&p after his infamous incidents like buck&killing and rash&driving.

RO,ersha!o'ing % 1hen celebrity endorser is used, the risk of consumers focusing on the celebrity and not on the brand exists.

RO,ere2$os+re % This risk arises when the celebrity chooses toendorse several different products simultaneously which mightleave the consumers confused. E.g., (achin Tendulkar endorsesseveral brands such as


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RO,er+se % (ometimes the company can use many differentcelebrities to appeal to different market segment. #ut multiplicity of endorser might blur the image.

RE2tinction % The favorable response obtained by a particular brand may weaken over time if the brand gets significant exposurewithout the association of the celebrity. If the celebrity contract isfor a considerable period of time, then it can lead to draining outcapital without proper return.

RFinancia Ris( % The decision for hiring an expensive endorser may not be always feasible if there is a poor brand fit.

Therefore, for celebrity endorsements to work effectively there are

some fundamental ground rules2 &

'lear brand promise and brand personality.

The communication ob!ectives for the campaign should be

froen.

)ocus must be on the synergy between the brand and the

celebrity image

Establish explicitly what the celebrity is going tocommunicate

CELEBRITY SELECTION

There are various scientific ways in which the right celebrity isselected for the product endorsement, which are discussed here

after

Stereot&$ing

Tellis defines stereotypes as perceptions and depictions of individuals based on simplistic, biased image of the group to whichthey belong, rather than on their own individual characteristics. )or example2 its better to select celebrities who say are teens for chocolate advertisements and females for detergent ads, etc.

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R $ likelihood&of&getting&into&trouble factor

(electing the right celebrity does more than increasing sales0 it cancreate linkages with the celebrities’ appeal, thereby adding new

dimension to the brand image. Hesearch conducted by GatherineEckel has revealed that *celebrities can get people to make abetter choice but cannot influence people to make a foolishchoice+.

The success of celebrity endorsement in India can be sought froma market research conducted earlier which found that O out of 48T" commercials scored the highest recall were those with celebrityappearances. $ few examples2 (achin Tendulkar & $didas, (ourav:anguly & #ritannia, Feander -aes >


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In the advertising landscape, we find either a celebrity endorsingmultiple brands or multiple celebrities being used to endorse asingle brand.

(achin Tendulkar, for example, in P88P endorsed 4P brandsBincluding -epsi, #oost, 'olgate Total, :illette, #ritannia Tiger, )iat-alio, T"( "ictor, )iat (ienna,


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Fig+re 3 M+ti$e Cee1rit& En!orse#ent 5A!i!as * &+n!aiSantro:

FRAME"OR! TO MA!E EFFECTI$E

CELEBRITY ENDORSEMENT PROGRAM

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Fig+re ;3 E,o+tion of Cee1rit& En!orse#ents

The action plan should be able to answer the following key%uestions2 &

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$re the celebrity endorsements programs result driven/

?ow to %uantify the value generated by the celebrity

endorsements/

$re customers able to connect the brand with the celebrity/

9ne can gauge the performance of celebrity endorsementmarketing program across the various stages of developmentBHefer to )igure PC. 1e have attempted to prepare a framework tobuild a more effective celebrity endorsement program

40 Aign Cee1rit& En!orse#ent -ith B+siness O1ecti,es0

The attributes of the celebrity should be intrinsically valuable and

aligned with the product, brand and company. )igure 6 suggestsstrategies to be adopted by a company depending on its brandpositioning and the brand fit with the celebrity.

R If the brand&celebrity attribute fit is slow, then the company shouldadopt “ Eliminate or avoid ” strategy. The consumers are unlikelyto connect between the brand and the celebrity, and the recallvalue is likely to be very low0 defeating the entire purpose of signing the celebrity. This is what happened when :oodlass

=erolac -aints roped in $mitabh #achchan as their brandambassador.

R 1hen the positioning of the brand is high but the fit with thecelebrity is low, the company should adopt a “ Monitor and evaluate” strategy. The company should continuously track theeffectiveness of the celebrity endorsement through surveys,monitoring the sales, etc. Though -arker pens had a positioning of premier pens, the early advertisements BHefer $nnexure 4C with

$mitabh #achchan showed low brand&celebrity fit.

R 1hen the positioning has not been effective, but the fit with thecelebrity is high, the company should adopt the strategy of “ Keepand enhance” . The company has to spot the opportunities toleverage the celebrity investment and to find more better andeffective ways to communicate with the target audience. Thecelebrity attributes align with the company’s brand, strategicbusiness ob!ectives and primary customer segment. The =arainGarthikeyan & J G Tyres relationship works well in this category.

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Fig+re =3 Bran!%Cee1rit& Attri1+te Fit Matri2

R In the ideal %uadrant when the positioning effectiveness is highand celebrity fit with the brand is also high, the company shouldfollow the strategy of “ Grow and partner ” . In case of 'oke, thebrand has firmly established the “Thanda” position in the minds of

the consumer, with $amir Ghan playing the perfect role.

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#y situating potential celebrity on the matrix, companies canmanage the celebrities as portfolios & re&distributing the resourcesand marketing efforts to those celebrities with the greatest potentialto increase value, while eliminating those that prove too costly.

;0 Meas+re an! +antif& Perfor#ance

The company should have proper metrics in place such asincrease in sales, brand awareness and customer preference, tomeasure the effectiveness and the impact of celebrityendorsement in the short and long term.

The relationship between the endorsement costs and the benefitsis explained further in )igure 5. The endorsement costs are

primarily driven by the endorsement fees and promotion outlays.The benefits that accrue from such a relationship can becategoried into two components2 &

R Va+e of ar! Assets2 The benefits derived from the hard assetsare those that have a clear market value such as increased salesand increase in brand e%uity. These are the tangible benefits that acompany derives from its endorsement strategy.

R Va+e of Association3 $ssociation value is derived from thetarget customers who associate the company brand with thecelebrity. These are the intangible benefits that the company willaccrue in the long&term.

There are ways to %uantify the potential value of hard assets andassociation value against their impact on company’s celebrityendorsement by looking at the following categories2 &

R Incre#enta Saes2 'ompanies can %uantify the effect of the

celebrity programs on sales by performing year&to&year or %uarter&to&%uarter sales comparisons for targeted consumers, geographicregions, or specific product lines. -rimary research can also bedone to reveal the impact of the celebrity on target customer’spropensity to purchase.

• Bran! Recognition 2 9ne of the ob!ectives of celebrity

endorsement is to increase brand awareness. ?owever, thecompanies use popular, though incorrect, survey approach by

asking the respondent which celebrity endorsed their brand.Instead, they should ask the respondent the brands associated

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with the celebrity. #y gauging the top&of&mind recall can enable thecompany to find out if a connection is made between the brandand celebrity.

• C+sto#er Lo&at&2 'ustomer churn can be measured in

fixed intervals before and after the celebrity campaign period todetermine the impact of celebrity on customer retention. $dditionally, primary research can be conducted to evaluatechanges in the customer loyalty, customer preferences, etc.

=0 Seection an! Rene'a of Contract -ith Cee1rities

The ability to align goals and measure the value of brand&celebrityfit is the first step in obtaining optimal value from a celebrityendorsement. "alue is also derived by revisiting the celebrityportfolio to determine ways to reduce costs and increase benefits.

$dditionally, a company can increase its benefits by re&examiningBand altering, if neededC its promotion strategy to create deeper brand association, identify new celebrities that are capable of achieving company goals and negotiate for additional rights fromthe existing contracts. $ large extent of this can be successful if thecompany can develop and execute coordinated, preplannednegotiation strategy which will enable it to improve the contractual

fees and media commitments stipulated in the contract, as well asthe amount and benefits conferred on the company. $ fewguidelines for formulating a well&defined negotiation strategy wouldinclude2

R ?n!erstan! the Co#$etition of Cee1rit&2 Except for fewvenerable celebrities0 most of the celebrities %uote their price inexpectation of negotiation. The company should benchmark thecontractual fees and benefits against that of comparable celebrities

to ensure the package is e%uivalent.

R ?n!erstan! Cee1rit& C+tter3 There could be a degree of clutter with the celebrity endorsing many more brands andcompanies. This clutter can impede the ability of the company tocapture the image and awareness re%uired to generate value fromthe endorsement. The company needs to understand the riskassociated with the signing of such celebrity and need to devisestrategic opportunities to stay clear of the clutter.

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Fig+re 3 En!orse#ent Cost%Va+e Reationshi$

R Inc+!e Va+e%in%@in! Paents2 'ompanies can reduce their risk and endorsement costs by substituting out&of&pocket cash

payments with value&in&kind, which can be traded at market price.

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G Protection Against A#1+sh Mar(eting2 $mbush marketing Bor ad!acent marketingC is the reality of the day and the marketingmanagers need to be creative to stay one step ahead of thecompetition. )or instance, $mitabh #achchan was shown drinking

Thumbs+,p in the hindi movie -aante, when he is actually brandambassador for -epsi.

"HY CELEBRITY ENDORSEMENT FAILS%

There maybe cases where brands are not able to take&off evenafter the backing of celebrities. $nd this leads to speculations inthe $d 1orld on the soundness of celebrity endorsement as aneffective communication strategy.

Negati,e i#$acts of Cee1rit& En!orse#ent on the 1ran!

$ popular drawback of celebrity endorsement is the M"ampireEffectM or the celebrity overshadowing the brand47. (ome viewersforget the brand that a celebrity is approving. 9thers are sospellbound by the personality of the celebrity that they completelyfail to notice the brand being advertised. Two new drawbacks can

be seen these days what marketers call 'elebrity Trap and'elebrity 'redibility4. 'elebrity trap is when the celebrity becomesan addiction for the marketing team and the task to find substitutesbecomes more and more difficult, leading to surfeit of celebrities.'elebrity credibility refers to skepticism by the consumersregarding the celebrities, especially when there is anythingnegative regarding the celebrity associated with the brand in thenews, then brand is bound to be affected.

T+ R+)-,-

$ccording to leading management thinker, 3r. (eamus -han,*


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The success of celebrity endorsement also depends upon thecapacity, knowledge, experience, and %ualification to talk about theproduct. )ailure may be attributed to improper positioningBExample2 $mitabh #achchan, $bhishek #achchan >


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'elebrity endorsement is a complex process of balancing your riskwith your gains.

“The pure and simple truth is rarely pure and never simple.”

% Oscar -i!e

Fig+re ;3 The Siotic Mo!e

R M+t+ais# 5M:3 #oth help each other BExample2 Tata and

=arayan Garitiken ,$mir Ghan and TitanC

R Co##ensais# 5C4:3 9nly one among them is benefitedBExample2 $ failed endorsementC

R Parasitis# 5P:3 9ne is benefited0 other is harmed BExample2 $haruddin and -epsi. $lso, ?ome Trade > (hah Hukh Ghan,(achin TendulkarC

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R Ne+trais# 5N:3 =one of them benefited or harmedBExample2 $mitabh #achchan, $bhishek #achchan and


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9verall


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=ot every brand can and should be endorsed by celebrities. Thebrand’s image, personality > the buying involvement of thecustomer would determine whether or not a celebrity endorsementwould be effective and also identify its endorser.

Hesearch has proved that consumers would react more favourablyto celebrity endorsers as against experts or typical & consumer endorser in products which are high on psychological and or social risk. The celebrity creates a positive image and significantlyimpacts consumer’s intention&to&buy. $lso, for products havingaspiration value e.g. premium watches, cars, the celebrity createsthe aura of elitism. )urthermore, products with high financial,performance or physical risk such as mutual funds, medicale%uipments, are evaluated more favorably when endorsed by aprofessional expert rather than by a celebrity. )or products whichare low in all five types of risk, typical consumer & endorsers aremost effective since the consumers can relate to the character B?ershey ?. )riedman and Finda )riedmanC.

II0 En!orser

$n Endorser can be defined as, *$ny individual who en!oys publicrecognition and who uses this recognition on behalf of a consumer

good by appearing with it in an advertisement+. The followinginherent %ualities in the endorser usually impacts the brand &

'redibility of image Trustworthiness B?onesty, Integrity,

#elievabilityC 'ompetence Expertise Bin relation to the productC

3ynamism

Fikeability

$ttractiveness

I#$act of Cee1rit& on the Bran!

-lethora of research has tried to explore the effects that a celebrityexhibits. 'elebrity endorsements2 &

'reates and helps in retaining attention of the targeted

audience.

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$chieves high brand recall in an environment with multitude

of products.

Transfers of %ualities associated with the celebrity to the

product.

-erceived as entertaining.

-ortrays trustworthiness due to lack of apparent interest

III0 Cons+#er

'onsumer is the factor being wooed by the companyproduct usingthe endorser. ?ence, both the product > the endorser need tomeet the expectations of the consumer, thus making it critical tounderstand consumer reactions to a given stimulus and productcategory in differing circumstances.

B. I,+*),-

I0 Cons+#er % En!orser 5C%E Interaction:

(udden change of the celebrity image

3rop in popularity of the celebrity

Foss of credibility due to over&endorsing

3isappearance of celebrity out of media flashlight

II0 Bran! % En!orser 5B%E Interaction:

Every brand has a personality and the traits found in the brandsshould be reflected in the celebrity too. $ mismatch leads toconfused audience and lack of brand recall.

1orse, in some cases it might even lead to association of thecelebrity with the competitors brand Be.g., =erolac -aints where $mitabh #achchan being a brand endorser of =erolac paint wasperceived to be associated with $sian -aintsC.

Is Cee1rit& En!orse#ent A'a&s the Best Metho! for Pro#oting a Bran!.

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'ompanies in many cases, prefer not to use a celebrity, butinstead go ahead with a spokesperson which has been tailor madefor the product by the company. The following are the advantage of such a strategy2 &

R Contro2 'ompanies control the created spokesperson as it hasbeen built in conformity with the brand and target audience, andhence can be ensured with a consistent image. nlike in case of celebrities where the celebrity’s persona both present and pasthave been created over the years.

R Singe +tiiHation of create! en!orsers2 (uch spokespersonsare exclusive for a brand and hence avoiding any brand conflict.

G Association o,er a ong ti#e $erio!2 The spokespersoncreates a permanent image by a long and steady association.

R Foc+s #ore on 1ran! an! its feat+res2 In =on&'elebrityadvertisements the main focus is on the brand and itscharacteristics while in celebrity the focus sometimes shifts entirelyto the celebrity’s features and their aura > hence the medium failsin carrying the main message across.

Examples of such endorsement are :attu & $sian -aints, )ido&3ido & p, ?utch & #oy.

C. I,;/+,+*-

I0 Mar(et En,iron#ent

It indirectly impacts the effectiveness of a campaign. 'elebritycampaigns create stronger impact in saturated markets asproducts lack differentiation and clutter is huge. E.g., Indian soft

drink industry heavily depends on celebrity endorsement for promotion.

II0 Mar(eting Strateg&

#oth single celebrity endorsing multiple products and multiplecelebrities endorsing single product at the same time reducesassociation of product and celebrity and reduces impact Be.g.,-epsi & where multiple celebrities are endorsing the product at the

same time which takes the brand away from getting associated

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dependent on any celebrity. ?ence, impact is also influenced bythe marketing strategy followed by the company.

III0 Reg+ati,e Iss+es

-romotion of products like #everages and 'igarettes is tightlyregulated by authorities who impact the effectiveness of celebrityendorsement Be.g., #everages in India are being promoted usingsurrogate advertisements and hence a celebrity endorses asecondary product of the brand and not the primary product& $!ay3evan for #agpiper (odaC. This reduces the effectiveness of thecampaign.

!INDS OF CELEBRITYHOOD THEIR IMPACT

ON BRANDS

54: Pro!+ct Pace#ents

1hile the movie MTaalM brandished 'oke bottles unabashedly,

5;: Cee1rities Co%O'ning the Bran!


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5J: S$oofing

andhi lending "heir #ace

54=: ?sing a Socia Pro$osition B+it -ithin the Bran!

The (urf campaign done by Hevathy and (habana $mi Bin thesouth and north respectivelyC which stressed on the prudent usageof valuable water was a social proposition cleverly inter&woven inthe brand.

54: D+ration of ?sage % Pro#otiona or Long Ter# Strateg&

(hort&term example is the Hani


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(ince a cynical public no longer believes that celebrities actuallyuse the products they endorse in commercials. Hevlon launchedan online marketing campaign targeting female customers via chatrooms talking about who HevlonMs new face would be.

'onse%uently the announcement of ?alle #erry as HevlonMs newface was met with great anticipation.

54: Foreign Cee1rities


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RESEARCH & ANALYSIS

The purpose is to provide the marketers with a quantitative

method for selection of the right celebrities to optimize theoutcome for their advertising campaigns. We have developed

three matrices, which are: -

Celebrit !ositioning "atri#, which gives the popularit

and image details of a personalit in the market

!roduct !ositioning "atri#, which is the direct

consequence of the brands competitive strateg

$rea Correlation "atri#, which is the overall measure of

match of brand and celebrit

These two matrices are used to develop two variables: -

Celebrit %ffectiveness &nde#

Total $rea Correlation 'core

The two variables can be used to decide on the appropriate

celebrit for the brand. The model also helps in minimizing the

cost with optimization of effect.

The stud is done in two stages, e#plorator research involving

personal interviews and focused group discussion followed b

primar data collection and analsis.

Model Development

(or the purpose of our stud, we divided all companies and

brands into twelve categories mentioned below: -

1. Creator ) &nnovator: !roducts or personalities famous for

disruptive, architectural, modular or incremental innovations,

e.g., White *oods2. Caregiver: !ersonalities or products which give the

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perceived benefit of securit and care, e.g., &nsurance

Companies

3. +ester: !ersonalities or products positioned for fun and

frivolous activities, e.g., Wafers4. "agician: !ersonalities or products which claim to produce

results which are une#pected, e.g., air oils for enhancing

growth

5. ero: !ersonalities or products that prompt courageousl

action, e.g., ed White /raver $wards.

6. 0rdinar *u: !ersonalities or products that have slice of

life e#ecution format, e.g., !eter %ngland

7. 1over: !ersonalities or products that claim tender care, e.g.,/eaut 'oaps

. &nnocent: !ersonalities or products that retain and renew

faith, e.g., +ohnson +ohnson

!. 'age: !ersonalities or products for guidance and opinion,

e.g., 2ewspaper

1". 0utlaw: !ersonalities or products that encourage to break

the rules, e.g., +eans

11. %#plorer: !ersonalities or products that claim self

enhancement through e#ploration, e.g., +eeps

12. uler: !ersonalities or products that show how to e#ert

control, eg., Tires

$rchetpe matri# for brands and celebrities:

Creator)&nnovator Caregiver +ester

"agician ero 0rdinar *u

1over &nnocent 'age

0utlaw %#plorer uler

#$%$'le( Developed

Cele'%t) E**e+tvene(( Inde, -CEI/ This is a parameter

defined to evaluate the effectiveness of a personalit to

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interact with customer and create desired impact. &t is the

sum of average score of each archetpe for a personalit.

A%e$ Co%%el$ton Inde, o* 0%$nd $nd CEI/ This we have

defined as the weighted product of corresponding archetpes

of brands and celebrities.

H)pote((

H1/ A '%$nd+ele'%t) $%e$ +oe**+ent ( po(tvel) %el$ted

to $den+e '%$nd+ele'%t) +onne+ton.

The concepts developed can be used b celebrit clients for

effective decision making. The ob3ective of a client can be

described as follows: -

To ma#imize area correlation of the brand-celebrit rectangle

sub3ected to: -

1. "inimum Costs

2. "inimum isks

The details of the variable in the above-mentioned ob3ectives

are described below: -

Costs $ssociated:

1. %ndorsement fees

2. (eature establishing costs

3. (eature enhancement costs4. (eature sustaining costs

isks $ssociated:

1. "ismatch risk

2. Celebrit feature transition risk

3. Celebrit feature mortalit risk

The steps involved in testing of hpothesis are as follows: -Step 1/ Calculate C%& for celebrities and companies

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Step 2/ Calculate area correlation matri# for the same

Step 3/ Compare the success of the campaign with the area

correlation matri#

Metodolo)

C$l+l$ton o* Cele'%t) E**e+tve Inde,

espondents were given a name of a celebrit and asked to

rate the personalit as against the archetpes defined earlier.

The sampling was convenience sampling and sample size of

hundred for each celebrit.

Ten celebrities were selected for the purpose. The selectionwas based on three distinct focused group discussions done

with '%C $, /, C Categor of members with 45 members each.

The top ten most frequent celebrities recalled or recollected

as brand ambassadors were chosen for the further studies.

Metodolo)

!rimar surve was conducted to list down the brand against

the above-mentioned ten celebrities. The most frequent repl

was recorded. The brands were then sub3ected to archetpe

scoring, and area correlation was calculated. (rom secondar

data, other endorsees, if e#isting, were recorded and the

process was repeated. (or this other endorsee, the least

frequent or non-e#isting celebrit was selected from the list

of C%& calculation celebrities.

Cele'%t) 0%$ndAlte%n$te

Cele'%t)

$mitabh

/achchan!olio 'hah ukh 6han

'hah ukh 6han 'antro !reeti 7inta

'achin Tendulkar T8' 8ictor /rett 1ee

'aurav *angul 'ona Chandi "ohammed 6aif

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Chavanprash

ahul 9ravid utch 2one

rithik oshan Tamarind '. 6umars; 2one

$ishwara ai 2akshatra 6atrina 6aif6areena 6apoor $irtel $. . ehman

'aif $li 6han uffle 1as 2awab !ataudi

!reeti 7inta !epsi ??

Creator)&nnovator @ Caregiver A +ester B

"agician ero A 0rdinar *u 4

1over ? &nnocent B 'age A

0utlaw 4 %#plorer @ uler A

2. 'hah ukh 6han : C%& > ?D

Creator)&nnovator B Caregiver D +ester

"agician B ero A 0rdinar *u 4

1over E &nnocent B 'age B

0utlaw 4 %#plorer uler F

3. 'achin Tendulkar: C%& > ?B

Creator)&nnovator A Caregiver @ +ester @"agician E ero A 0rdinar *u 4

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1over 4 &nnocent 4 'age B

0utlaw 4 %#plorer A uler E

4. 'aurav *angul: C%& > D@

Creator)&nnovator Caregiver ? +ester @

"agician B ero F 0rdinar *u 4

1over @ &nnocent @ 'age @

0utlaw 4 %#plorer uler ?

5. ahul 9ravid: C%& > D?

Creator)&nnovator Caregiver @ +ester 4

"agician ? ero E 0rdinar *u 4

1over @ &nnocent D 'age B

0utlaw 4 %#plorer @ uler E

6. rithik oshan: C%& > ?5

Creator)&nnovator B Caregiver @ +ester

"agician B ero A 0rdinar *u 41over &nnocent A 'age B

0utlaw 4 %#plorer D uler ?

7. $ishwara ai: C%& > DE

Creator)&nnovator B Caregiver A +ester @

"agician B ero F 0rdinar *u 4

1over F &nnocent E 'age B

0utlaw 4 %#plorer B uler @

. 6areena 6apoor: C%& > D

Creator)&nnovator 4 Caregiver B +ester A

"agician B ero A 0rdinar *u 4

1over F &nnocent B 'age @

0utlaw 4 %#plorer uler B

!. 'aif $li 6han: C%& > DD

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Creator)&nnovator B Caregiver B +ester E

"agician B ero 0rdinar *u D

1over F &nnocent @ 'age @

0utlaw 4 %#plorer @ uler @

1". !reeti 7inta: C%& > DE

Creator)&nnovator @ Caregiver A +ester A

"agician @ ero 0rdinar *u 4

1over F &nnocent E 'age 4


Thus, C%& calculation was made for the ten celebrities. The

C%& is quantitative measure of: -

1. !opularit

2. &mage and positioning

0%$nd o(tonn Inde, *o% 0%$nd(

olo E%$d+$ton C$mp$n/

Creator)&nnovator 4 Caregiver 45 +ester 4

"agician 4 ero 4 0rdinar *u 4

1over &nnocent 4 'age 45

0utlaw 4 %#plorer 4 uler 4

S$nt%o/

Creator)&nnovator Caregiver ? +ester

"agician 4 ero 0rdinar *u 4

1over &nnocent 4 'age @

0utlaw 4 %#plorer D uler F

#S #+to%/

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Creator)&nnovator Caregiver D +ester B

"agician D ero 0rdinar *u 4

1over @ &nnocent 4 'age @

0utlaw 4 %#plorer uler

Son$ C$nd C$v$np%$(/

Creator)&nnovator D Caregiver A +ester @


1over @ &nnocent 4 'age ?

0utlaw 4 %#plorer @ uler B

Ht+/

Creator)&nnovator F Caregiver B +ester ?

"agician @ ero D 0rdinar *u 4

1over &nnocent 4 'age @

0utlaw @ %#plorer 4 uler B

$m$%nd -S. 8m$%9(/

Creator)&nnovator F Caregiver @ +ester

"agician 4 ero A 0rdinar *u 4



N$:($t%$/

Creator)&nnovator B Caregiver @ +ester 4

"agician @ ero A 0rdinar *u 41over A &nnocent A 'age @

0utlaw 4 %#plorer 4 uler @

A%tel/

Creator)&nnovator B Caregiver B +ester A

"agician @ ero A 0rdinar *u 4

1over F &nnocent 4 'age 4

0utlaw 4 %#plorer F uler 4

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R**le L$)(/

Creator)&nnovator @ Caregiver @ +ester A"agician 4 ero B 0rdinar *u ?

1over A &nnocent 4 'age 4


ep(/

Creator)&nnovator F Caregiver @ +ester

"agician 4 ero A 0rdinar *u 4



Thus, the calculation is analogous to C%& but is for companies

or products. The outcome is the direct reflection of companGs

positioning strateg.

Alte%n$te Cele'%t) CEI C$l+l$ton

1. /rett 1ee : C%& > D?

Creator)&nnovator Caregiver @ +ester F

"agician ero D 0rdinar *u ?

1over 4 &nnocent 4 'age @

0utlaw 4 %#plorer uler D

2. "ohammed 6aif : C%& > B?

Creator)&nnovator @ Caregiver @ +ester ?

"agician @ ero B 0rdinar *u A

1over 4 &nnocent 'age 4


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3. 6atreena 6aif : C%& > B?

Creator)&nnovator 4 Caregiver 4 +ester E


1over 4 &nnocent 4 'age 4

0utlaw 4 %#plorer A uler 4

4. $. . ehman : C%& > BA

Creator)&nnovator A Caregiver @ +ester 4

"agician E ero @ 0rdinar *u 4

1over @ &nnocent @ 'age 40utlaw 4 %#plorer A uler 4

5. 2awab !ataudi : C%& > B4

Creator)&nnovator F Caregiver 4 +ester 4

"agician A ero ? 0rdinar *u 4

1over @ &nnocent 4 'age @


6.


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Cele'%t) Cele'%t)

!olio @@D 4@

'antro @B @4?

T8' 8ictor @FF 4A'ona Chandi

Chawanprash4FF E@

utch @55 -

Tamarind 4A -

2akshatra @BD 455

$irtel @DF 4DA

1as 4E5 F5!epsi 4A 4??

We term the celebrit with ma#imum recall as successful

celebrit and with minimum recall as failure celebrit.

Con+l(on( & Re+ommend$ton( o* (%ve)

The test of pothesis 4 shows that it is 455H accepted forthe ten cases presented. Thus, we can sa that area

correlation matri# is a good predictor of success of a

campaign. "oreover, the C%& is also a good predictor of

popularit of the celebrit. /rands generall will have lower

C%& than

!ersonalities due to deliberate attempts to have strong

positioning to fight competition and develop competitiveadvantages.

The following recommendations are made to brand managers

and account managers: -

1. The cost of an endorsement will be a positive correlatedfunction of C%&

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2. The popularit of the campaign is a function of area

correlation matri#

3. &f the right match is found between the brand and

celebrit, popularit of the campaign can be optimized4. The cost of the campaign can be reduced b involving

celebrities with high polarized archetpe value which matches

with the brand

Lmt$ton(

The C%& and area correlation are highl time dependent. The

image and archetpe of a personalit is often volatile andma change with time. The use of the method involves:-

1. epeated surves for C%& calculations.

2. 6eeping track of celebrit activities.

3. Continuous search for new and emerging celebrities.

A$$en!i2

0%$nd Cele'%t)


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$ttractiveness

%legance enuka

'hahane Whisper

/eaut "adhuri 9i#it %mami

Class 'aif Tiger

!ataudi

$sian!aints-

oale

'tlish

(ardeen 6han !rovogue

$mitabh

/achhan

eid

Talor

Trustworthiness

onest Tarun Te3pal Tehelka

eliable 'achinTendulkar

T8'8ictor

%#pertise 6nowledge

'achin

'ehwag eebok

Iualified 2aina /alsavar 'hampoo

CASES ANALYSIS USING THE FRAME"OR!

To test the contribution of an endorser in the light of variousfactors, interactions and influencers we apply the following criteriaand see if the results agree with the proposed model &

Increased #rand $wareness BIn terms of recall of copy

points, ad ratingsC $ttitude towards the brand

-urchase intent of the consumer

#elievability in the message being conveyed

CASE# CELEBRITIES TO USE OR NOT TO USE

Sit+ation 43 'adbury has always come up with sweet, emotional,clutter breaking commercials. 1ho can forget the lady dancing on

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the cricket pitch to celebrate her boyfriendMs century. #ut when thecompany was hit with the worm controversy it had to rope in thenational icon $mitabh #achchan.?e embodied the values of'adbury as a brand and connected with all of India & mothers,

teenagers, children, media persons and trader partners. TheMinfomercialM that followed had #achchan first voicing his ownconcerns, and then assuring consumers that his doubts had beensatisfactorily laid to rest Bafter the factory visitC.This reinstatedcustomer faith in 'adbury and sales have now touched pre&wormcrisis days.

Sit+ation ;3 $sian -aints will always be remembered for its M


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=0 A#ita1h Bachchan B'luttered IdentityC

9ur framework argues that exclusivity makes the product&celebrityassociation stronger thereby making the product resonates with

the %ualities of the celebrity. In cases where the celebrity endorsesmultiple products, he dilutes his e%uity.

There’s no better example in the Indian industry than $mitabh#achchan who endorses I'I'I #ank, 'adbury, "ersa, 3abur, Hin,-arker -ens, -epsi, =erolac -aints and many more. In each of thecases the ads use some or the other attribute of $mitabh toendorse the product, but makes no strong link in the minds of theconsumer. ?ence in the end the consumer is lost and has difficultyidentifying, what does $mitabh really stand for/

0 Rani M+(heree % ero C&ces B=egative ImpactC

Hani


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1ooing the key existing and potential target customers is the traitof a successful promotion strategy. ?owever, the marketingmanager should be able to offer significant value propositions inthe services products offered to the customers. Thus, one needs

to integrate celebrity endorsement with other marketing programsand ensure that the celebrity attributes align with the overall brandor company. 'ompanies that succeed in developing such anintegrated I


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?e repeats his action and adds, *#hai shai.+ The girl is dumbstruck

and nods wordlessly. 9ne more and he adds, *-adosi to honge.+Qet another page succumbs, ;'hachi wachi. 1hat a great pen+The girl !ust nods her assent.

?e repeats his action and adds, *#hai shai.+ The girl is dumbstruckand nods wordlessly. 9ne more and he adds, *-adosi to honge.+Qet another page succumbs, ;'hachi wachi. 1hat a great pen+

The girl !ust nods her assent.

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The celebrities’ accessibility, regional appeal factors,

popularity, attractiveness, belief system are some other important platforms, which are raised when we study theimpact of celebrity endorsement on brands.

(tudies indicate that celebrity endorsement has worked well insome consumer segments while failing in others. )ew celebritieshave been more successful than those with almost parallel fame.(o the role of celebrity endorsement in the advertising space ise%uivocal and cannot be seen as a assured strategic tool to winprofits, market share, revenues, etc.

'onsumers can identify the clear difference between a good scriptand a good brand idea. )or example, while -epsi’s (achin and#achchan Bkite flyingC ad was seen as one with a good script,'oca&'ola’s Thanda &atlab... was seen as an insightful and strongbrand idea. )or all the flak it drew in its vainglorious attempts torun down competition, Thumbs&p was seen as the only exampleof seamless linkage between brand positioning and brandcelebrity.

'elebrities do not make brands but ideas do. 'elebrityendorsement is also one of the ideas. If not then brands would

have vanished when the hype and hoopla around the celebritiesfaded. Thus, the need of the hour is to focus less on your Ret+rn%on%In,est#ent, and think more in terms of your Ret+rn%on%I!eas.

“There is one thing hich is stronger than all the armies of thisorld" and that is an idea hose time has come.”

% Victor +go

$s has been identified in the analysis framework, the impact of any'elebrity endorsement campaign depends on three factors &#rand, 'ustomer and Endorser as well as the interrelationshipbetween &

#rand and Endorser B#&E InteractionC

'onsumer and Endorser B'&E InteractionC

?ence, a celebrity is re%uired to have not !ust a certain minimumlevel of %ualities, but there should also be a tactical fit between the

constituting elements of the model. $s has been seen in the cases,celebrity endorsement can impact brands in both positive and

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negative manner. It has acted as a panacea for companies suchas 'adbury’s during the phase when the brand was on the vergeof losing its hard owned e%uity in the same time also has beenused effectively in making the $nti&-olio 'ampaign a grand

success.

Therefore, before designing any promotion, one must study howeach of the factors involved complement and fit in with the other’sre%uirement. ?owever, a number of brands have been built withoutcelebrity endorsement. )or some of their brands, ?industan Fever and -rocter > :amble do not believe in celebrity endorsementbecause they think that consumers, especially housewives, aremore likely to identify with a lay person on screen than a celebrity.-rocter > :amble launched its MHe!oiceM brand in India withtestimonials from ordinary women in their T" advertising. )ewmore examples of this will be Fifebuoy, 1heel, 3ettol, 'lose p,)evicol etc.

FACTS AND FIGURES #

$pproximately 78&8L of all television commercials featurefamous people.

$ishwarya Hai had once endorsed M)u!i&)ilmM camera rolls. Thecompany made an agreement with her to endorse their camerarolls. #ut, $ishwaryaMs magic did not work there and they had toterminate the contract.

$mitabh #achhan B$#C was seen endorsing


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circuit & $nna Gournikova. $n average player who is yet to wineven a single tennis tournament, $nna is known to have earned far more from endorsements than her tennis career could ever havegiven her

• 5D per cent growth in 'elebrity endorsement advertisingvolumes on T" during P88 compared to P887.

• 'elebrities from )ilm Industry lead with O4 per cent share ofoverall 'elebrity endorsement advertising pie on T" duringP88.

• M$erated (oft 3rinkM was the top category with maximumadvertising volumes of 'elebrity endorsement during P88.

• 'elebrity endorsement on T" saw a whopping growth of sixtimes during P88 over P886

• M(hahrukh GhanM had maximum number of advertisers in hiskitty during P88.

• )ilm 'elebrities had the largest chunk i.e. O4 per cent shareof overall 'elebrity endorsement on T" during P88.

• (ports and T" personalities took the second and third rankwith 45 per cent and K per cent share respectively duringP88.

• )ilm $ctors accounted for K8L share followed by )ilm $ctress and (portsmen with 64 per cent and 45 per cent

share of 'elebrity endorsement on T" during P88.

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/olume :rowth in 'elebrity endorsement on T.".

(hare of 'elebrity -rofession on T" during P88.

(hare of Top 48 'ategories with 'elebrity endorsementadvertising volumes.

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• Top 48 categories share aggregates to 58 per cent of totaladvertising volumes of 'elebrity endorsement on T" duringP88.

M$erated (oft 3rinkM, M'ellular -hone (erviceM and MToilet (oapsMwere at the top three positions of top 48 categories with maximumadvertising volumes of 'elebrity endorsement on T" during P88.

Top three 'elebrities "isibility per day on Televisionthrough commercials in P88.

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• 3uring P88 top three position of maximum visible celebrityon T" was occupied by )ilm $ctors vi. (aif $li khan,(hahrukh Ghan, $mitabh #achchan.

(1 April, 2008)

(Analysis from AdEx India - A Division of TAM Media

Resear!)

REFERENCES

B8*)': #

4. -ositioning2 $ battle for mind & Jack Trout and $l HiesP. Erdogan B4DDDC, U'elebrity Endorsement2 $ Fiterature

HeviewU, 0ournal of &arketing *esearch, 4K, PD4&645

6. ?indu #usiness Fine, P886,Tellis, Effective $dvertising2nderstanding 1hen, ?ow, and 1hy $dvertising works

5.


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impact-onnnnf-celebrity endorsement on brands

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