celebrity endorsement

5/28/2018 CELEBRITY Endorsement

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SEMINAR ON CONTEMPORARY MANAGEMENT ISSUES{REPORT PRESENTATION}

IMPACT OF CELEBRITY

ENDORSEMENTS ON

OVERALL BRAND

{Searching for the Right Match}


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" Any brand can get a celebr i ty. That is

easy . But gett ing a celebr i ty cons istent

w i th the r igh t brand , to the r igh t degree,

at the r igh t t ime, for the r igh t pu rpose

and in the righ t way... that is no t easy ."

Aristotle said, Beauty is a greater

recommendation than any letter ofintroduction.


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THE AIRTEL & IDEA WAY


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THE HUTCH (Vodafone) WAY


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Celebrity Endorsement in India{History}

Phase 1: The Pioneering Phase (1950-1980)

This phase was characterized by: -

1. Limited channels of communication

2. Demand exceeded supply3. Heavy regulation and governmental

regulations

Some bigger companies from their global

experience introduced the concept of celebrityendorsement. HLL has used Hindi film stars to

endorse their beauty soap Lux since fifties.


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Phase 2: The Growth Phase (1980-1990)The introduction of television added a

variable effective medium of communication.Indian stars going global with events like

Asiads and World Cup victory. Vimal,

Thums-Up, Gwalior and Dinesh are some ofthe other brands that used star-appeal in the

early days of mass advertising. There was a

spurt of advertising, featuring stars like

Tabassum (Prestige Pressure-cooker), Kapil

Dev (Palmolive Shaving Cream) and Sunil

Gavaskar (Dinesh Suitings).


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Phase 3: GlobalisationIn highly competitive markets, the

following realities about brandmanagement exist: -

1. Product differentiating factors areduplicable and imitable.

2. All long existing and successfulbrands imbue their products with ameaning.


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AIDA MODEL

Action

Interest

Desire

Attention


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S=P* D*AV-- the multiplier effect

Sis a Successful Brand

Pis an Effective Product

Dis Distinctive Identity

AVis Added Values


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The FRED Principle

F is for Familiarity

R is for Relevance

E is for Esteem

D is for Differentiation


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Positive feelingsand perceptions

Positive feelings

and perceptions


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What is a Brand?

a name, term, sign, symbol, or design, or a

combination of them, intended to identify goods orservices of one seller or a group of sellers and todifferentiate them from those of competitor.

DEFINITION OF CELEBRITIESCelebrities are people who enjoy specific publicrecognition by a large number of certain groups ofpeople. They have some characteristic attributes like

attractiveness, extraordinary lifestyle or special skillsthat are not commonly observed. Thus, it can be saidthat within a society, celebrities generally differ fromthe common people and enjoy a high degree of public

awareness.


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Actors(e.g., Amitabh Bachchan, ShahrukhKhan, Aishwarya Rai, Preity Zinta, Aamir Khanand Pierce Brosnan).

Models(e.g., Malaika Arora, Milind Soman,Naomi Campbell, , etc),

TelevisionPersonalities (Hussain, Smriti Irani) Sports figures(e.g., Sachin Tendulkar, Sania

Mirza, Anna Kournikova, Michael Schumacher,Tiger Woods, etc)

Entertainers(e.g., Cyrus Broacha, OprahWinfrey,)

Pop-stars(e.g., Madonna, Shakira) Businessmen(e.g., Vijay Mallya, Bill Gates) Politicians. (e.g., Atal Bihari Vajpayee , Sonia

Gandhi)


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Brand Ambassador & Brand Face

A Brand Ambassador would be one who is an integralpart of the brand which goes beyond just appearingon TV commercials.

For example, Fardeen Khan is the brand ambassador

for Provogue

Face would be the current celebrity appearing in theadvertisement

An example would be Sona Chandi Chawanpryash

using Sourav Ganguly


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Celebrity endorsements are impelled byvirtue of the following motives: -

Instant Brand Awareness and Recall

Celebrity values define, and refresh thebrand image

Celebrity adds new dimensions to thebrand image

Instant credibility or aspiration PR

coverage Lack of ideas

Convincing clients


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IMPACT OF CELEBRITY ENDORSEMENT


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THE PROCESS OF CELEBRITY ENDORSEMENT

Figure 1: The Meaning Transfer Model


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BEAUTY,ELEGENCE

CREDIBILITY,TRUSTWORTHINESS


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RISKS ASSOCIATED WITHCELEBRITY ENDORSEMENT

Negative publicity -Overshadowing -Overexposure -Overuse -Extinction -

Financial Risk -


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CELEBRITY SELECTION

The TEARS Model Trustworthiness:For example - Legendary actor

Amitabh Bachchan who is an icon of trust;promoting ICICI Bank.

Expertise:For example - Golfer Tiger Woods for asports brand. Attractiveness:For example - Tennis player Anna

Kournikova who earns 10 Million dollars per year injust endorsement.

Respect:For example - Former Miss WorldAishawarya Rai and the Eye donation campaign. Similarity:For example - a child artist promoting a

chocolate brand.


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KINDS OF CELEBRITY-HOOD -THEIR IMPACT ON BRANDS

Product Placements

While the movie'Taal' brandished

Coke bottlesunabashedly


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Celebrities Co-Owning the Brand

Madhuri Dixit andEmami 'Beautysecrets by Madhuri'range

Fictional HeroesShaktimaan has soldParle-G, and Popeyesingle-handedly

revived theconsumption ofspinach in the US.


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No More butCelebrities Still

campaigns created around adead personality was the 'Kar

lo duniya muthi mein'

campaign for Reliance

featuring Dhirubhai Ambani

Page 3 Celebrities


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Celebrities for aCauseThe Pulse Polio campaign

being coordinated byUNICEF for the Ministry ofHealth and Family Welfarehad Amitabh Bachchan andSachin Tendulkar

Spoofing

Mirinda spoofed the

Hutch puppy (acelebrity in its ownright).
http://images.google.co.in/imgres?imgurl=http://www.cyclewalaproductions.com/All_is_not_calm_by_anandgandhi.jpg&imgrefurl=http://www.cyclewalaproductions.com/ideas.htm&h=732&w=600&sz=110&hl=en&start=43&um=1&tbnid=HwRL6U3mGyUDLM:&tbnh=141&tbnw=116&prev=/images%3Fq%3Dspoofing%26start%3D40%26ndsp%3D20%26um%3D1%26hl%3Den%26cr%3DcountryIN%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://static.expressindia.com/expressindia/grfx/pics/amitabh60a.jpg&imgrefurl=http://www.expressindia.com/fullstory.php%3Fnewsid%3D90758&h=74&w=60&sz=3&hl=en&start=62&um=1&tbnid=G1oIt0DI3KqOjM:&tbnh=71&tbnw=58&prev=/images%3Fq%3Dpulse%2Bpolio%2Bads%26start%3D60%26ndsp%3D20%26um%3D1%26hl%3Den%26cr%3DcountryIN%26sa%3DN


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Mascots

Ronald McDonald, the

Amul girl

Men are from Mars,Women from Venus

John Abraham lends his

rugged image to Yamaha

bikes while Priety Zintalends her cute dimples to

peddle Scooty.


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Celebrities Lendingtheir Name toBrands

Sharukh Khan, Amitabh

Bachchan and Rekha

have perfumes named

after them

Company OwnersBeing CelebritiesVijay Mallaya and a Richard

Branson who are walking

talking celebrities and endorsetheir own brands through their

extravagance, their flamboyant

lifestyle


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Political LeadersThe 'India Shining' campaignfrom the BJP and the

'Congress ka haath aamaadmi ke saath' campaignfrom the Congress withVajpayee and Sonia Gandhilending their faces

Using a SocialProposition Built Withinthe BrandThe Surf campaign done byRevathy and Shabana Azmi (in

the south and northrespectively) which stressed onthe prudent usage of valuablewater was a social propositioncleverly inter-woven in thebrand.


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Duration of Usage -Promotional or LongTerm Strategy

short-term example is the

Rani Mukherjee

campaign for Bata which

is believed to have

helped boost sales for theladie's footwear brand,

Sundrop, by a whopping

500 per cent. The same

Rani Mukherjee has alonger association with

Fanta and Munch.
http://www.moneycontrol.com/news_image_files/Bata_India.jpg


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Stealth Advertisingpublic no longer believes thatcelebrities actually use theproducts Revlon launched anonline marketing campaigntargeting female customers viachat rooms talking about whoRevlon's new face would be,Halle Berry

Foreign CelebritiesJackie Chan doing aDiscover commercial or a

Boris Becker doing aSiyaram commercial


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UnintentionalCelebrityEndorsements

the year before thelate Princess Dianabought an Audi, theysold just about five

hundred pieces in theUK. The followingyear sales figureswere close to ten

thousand markJohn Abrahamhaybusa


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Why Companies Use Celebrities- The Celebrity Edge

Psychological Factorsa movie actress for beauty related products

Propping Up Awareness and Trust Levels:Rahuldravid for bank of baroda

To Communicate a Certain Message about theCompanySachin Tendulkar image for the launch of 'Victor'

Value for Money: To Position their Brand Distinctively

Celebrity Standing for a Single Brand:Zakir Hussain of 'Wah Taj' Taj Mahal tea & A. R.Rahman for Airtel


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Advantages of a CelebrityEndorsing a Brand

Establishment of Credibility: Ensured Attention: PR Coverage: Higher Degree of Recall Associative Benefit: Mitigating a Tarnished Image Psychographic Connect

Demographic Connect Mass Appeal: Rejuvenating a Stagnant Brand:


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Figure 1: Factors Impacting a Brand whilebeing viewed by a Consumer in Media


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Certain parameters that postulate compatibilitybetween the celebrity and brand image are: -

Celebritys fit with the brand image Celebrity-Target Audience match

Celebrity associated values

Costs of acquiring the celebrity

Celebrity-Product match Celebrity controversy risk

Celebrity popularity

Celebrity availability

Celebrity physical attractiveness

Celebrity credibility

Celebrity prior endorsements

Whether celebrity is a brand user

Celebrity profession

Selection of Celebrity


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Selection of Celebrity

Aspect of

Brand

Image Celebrity Product

Attractiveness Stylish Fardeen

Khan

Amitabh

Bachhan

Provogue

Reid &

Taylor

Trustworthiness Reliable Sachin

Tendulkar

TVS

Victor

Expertise Knowledge Vishwanathan

anand

NIIT

All Th Gli i N G ld Th


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All That Glitters is Not Gold - TheFlip Side of Using Celebrities

Overexposure of Brand Ambassadors:AmitabhBachchan sells Nerolac paints, Cadbury chocolates,Pepsi, Parker pens, Dabur Hajmola, Sahara homes,Reid and Taylor suits, Navratan oil, ICICI home loans,the list goes on.

Brand Switching: For example when Aishwarya Raiand Aamir Khan shifted loyalties from Pepsi to Coke. Tarnished Public Image: Thums up too had to scrap its

ads after Salman Khan got embroiled in the black-buckcase & took Akshay.

Creative Block: Eg. Palmolive had strong associationswith Kapil Dev and the line 'Palmolive ka jawaab nahi'.After Kapil Dev retired it could never come up with anequally memorable campaign.

Reel Not Equal to Real: Britney Spears who are Pepsiendorsers have been spotted drinking Coke.


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High Ad Costs Success of Brand Dependant on Success of

Celebrity:Eg: Sachin's ad being shown after his wicketfalls draws negative impressions about the brand.

Celebrities Overshadowing Brands:Dinesh Suitings, where Sunil Gavaskar, the brandspokesperson, was allowed to rule the brand, thusbecoming bigger than it. Once the association ceased,the brand lost its identity.

Company Wars Through Celebrities:Pepsi's SharukhKhan taking a dig at Hritik Roshan who endorsed Coke.

Incongruity Between Brand and CelebritySamsungsponsoring the Indian cricket team has no congruenceand brand connect.

Irresponsible AdvertisingFardeen for pan masala &ajay for bagpiper

stunt ads


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CELEBRITY ENDORSEMENTS

DOS AND DONTS

Consistency and long-term commitment

Three prerequisites to selecting celebrities

Celebritybrand match

Constant monitoring Selecting unique endorsers

Timing

Brand over endorser

Celebrity endorsement is just a channel

Celebrity ROI

Trademark and legal contracts

M lti l B d E d t


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Multiple Brand Endorsement

As many as fourproductsnegatively

influences thecelebritycredibility and

likeability
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Sachin Tendulkar, forexample, in 2002

endorsed 12 brands(including Pepsi, Boost,Colgate Total, Gillette,Britannia Tiger, FiatPalio, TVS Victor, Fiat

Sienna, MRF, Adidas,Visa Cards and HomeTrade), ESPN-STARSports (the television

channel), AirTel hasjust signed him on asits brand ambassador.
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ONE BRAND MANY CELEBRITY


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SINGLE BRAND

ASSOCIATION OF A

CELEBRITY


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ZAKIR HUSSAINProduct: Taj Mahal tea -- Slogan: Wah! Taj

Ustad Zakir Hussain'sassociation with TajMahal tea, thepremium brand from

Hindustan Lever, isover a decade old.

Zakir Hussain'sassociation with the

brand has made TajMahal tea it ahousehold name.

A R RAHMAN
http://server1.msn.co.in/zakir/index.asphttp://www.ipan.com/press/99jul/1407hl.htmhttp://www.ipan.com/press/99jul/1407hl.htmhttp://www.ipan.com/press/99jul/1407hl.htmhttp://www.ipan.com/press/99jul/1407hl.htmhttp://server1.msn.co.in/zakir/index.asp


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A R RAHMANProduct: Airtel -- Slogan: Live every moment

Cellular service provider

Airtel roped inthe 'Mozartof the East'Allah RakhaRahmanfor its TV adcampaign in August 2002.

It was for the first time everthat Rahman associatedhimself with any brandanywhere in the world. Inthe Airtel ad Rahman

composed an originalscoreand five ring tonesexclusively for Airtelcustomers.
http://www.thehindubusinessline.com/bline/2002/08/31/stories/2002083100510600.htmhttp://www.rediff.com/money/2002/sep/21bizsp.htmhttp://www.rediff.com/money/2002/sep/21bizsp.htmhttp://www.rahmanonline.com/nonfilm/airtel.shtmlhttp://www.rahmanonline.com/nonfilm/airtel.shtmlhttp://www.rahmanonline.com/nonfilm/airtel.shtmlhttp://www.rahmanonline.com/nonfilm/airtel.shtmlhttp://www.rahmanonline.com/nonfilm/airtel.shtmlhttp://www.rahmanonline.com/nonfilm/airtel.shtmlhttp://www.rediff.com/money/2002/sep/21bizsp.htmhttp://www.rediff.com/money/2002/sep/21bizsp.htmhttp://www.thehindubusinessline.com/bline/2002/08/31/stories/2002083100510600.htm


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Vishwanathan Anand

Product: NIIT Ad Agency: Contract

GrandmasterVishwanathanAnand is said tohave refused more

than one contractbecause he cannotconcentrate ongiving the sponsor

his best and win hischess games at thesame time.


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Figure 2: The Symbiotic Model


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IMPACT-ANALYSIS FRAMEWORK


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C


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Cases1. Sharukh Khan - Mayur Suitings(Positive

Impact)

2. Dharmendra - Rajdoot Motorcycles (PositiveImpact)

3. Amitabh Bachchan(Cluttered Identity)4. Rani Mukherjee - Hero Cycles (Negative

Impact)5. Hutch - The Child and the Dog(Created

Spokesperson)

6. Mohammad Azharuddin - Britannia(Change

of the Celebrity Image)7. Narain Karthikeyan - Jordan / Formula 1Racing(Entering International Markets)

8. Sachin Tendulkar - Fiat Palio(FinancialViability)


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Figure 3: Brand-Celebrity Attribute Fit Matrix


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AMITABH FOR PARKER


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AAMIR KHANProduct: Coca-Cola Slogan: Thanda Matlab Coca-Cola

A mawalifrom Mumbai, a Hyderabadi shopkeeper, a Jatfarmer, a Bihari babu, and now a Nepali tour guide:Bollywood star Amir Khan has donned different avatars forthe Coca-Cola television ads

AMITABH BACHCHAN


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AMITABH BACHCHANProduct: Nerolac -- Slogan: Yeh rang hai jo har ek zindagi ko cho ota hai

Nerolac Paints, has roped in Bollywood superstarAmitabh Bachchan to endorse its products.
http://www.chennaionline.com/cityfeature/Events/08aug73rd.asphttp://www.chennaionline.com/cityfeature/Events/08aug73rd.asp


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Narain Karthikeyan Product: JK Tyre

Market insiders say India's racing star Narain Karthikeyan currentlyhas sponsorship in the range of $1 million (from the Tata group,Amaron, Kingfisher and JK Tyres, among others). But theeconomics of motorsportis very much different from that of theothers.

RESEARCH & ANALYSIS
http://www.rediff.com/money/2003/may/31motorsports.htmhttp://www.rediff.com/money/2003/may/31motorsports.htm


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RESEARCH & ANALYSIS

Celebrity Positioning Matrix

Product Positioning Matrix

Area Correlation Matrix

Celebrity Effectiveness Index

Total Area Correlation Score

Model Development


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1.Creator / Innovator : e.g., White Goods

2.Caregiver : e.g ., Insurance Companies3.Jester : e.g., Wafers4.Magician : e.g., Hair oils for enhancing growth5.Hero : e.g., Red & White Bravery Awards.

6.Ordinary Guy : e.g., Peter England7.Lover :e.g., Beauty Soaps8.Innocent : e.g., Johnson & Johnson9.Sage : e.g., Newspaper

10.Outlaw : e.g., Jeans11.Explorer : e.g., Jeeps12.Ruler : eg., Tires

Model Development

C l b it B nd Alt n t C l b it *


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Celebrity Brand Alternate Celebrity

Amitabh Bachchan Polio Shah Rukh Khan

Shah Rukh Khan Santro Preeti Zinta

Sachin Tendulkar TVS Victor Brett Lee

Saurav GangulySona ChandiChavanprash

Mohammed Kaif

Rahul Dravid Hutch None

Hrithik Roshan Tamarind (S. Kumars) None

Aishwarya Rai Nakshatra Katrina Kaif

Kareena Kapoor Airtel A. R. Rehman

Saif Ali Khan Ruffle Lays Nawab Pataudi

Preeti Zinta Pepsi Yuvraj Singh

Celebrity Effectiveness Index (CEI)


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1. Amitabh Bachchan : CEI = 55

Creator/Innovator2

Caregiver8 Jester 3

Magician 6 Hero 8OrdinaryGuy 1

Lover 5Innocent3

Sage 8

Outlaw 1Explorer2

Ruler 8

2. Shah Rukh Khan : CEI = 54

Creator/Innovator3 Caregiver4 Jester 6

Magician 3 Hero 8Ordinary Guy1

Lover 9Innocent3

Sage 3

Outlaw 1Explorer6

Ruler 7

Polio Eradication Campaign:

Creator/Innovator 1 Caregiver 10 Jester 1

Magician 1 Hero 1 Ordinary Guy 1

Lover 6 Innocent 1 Sage 10

Outlaw 1 Explorer 1 Ruler 1

Saurav Ganguly: CEI = 42 Mohammed Kaif : CEI = 35


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Saurav Ganguly: CEI = 42

Creator/Innovator 6Caregiver5

Jester 2

Magician 3 Hero 7

Ordinary

Guy 1

Lover 2Innocent2

Sage 2

Outlaw 1Explorer6

Ruler 5

Creator/Innovator2

Caregiver2

Jester 5

Magician 2 Hero 3

Ordinary Guy

8



Sona Chandi Chavanprash:

Creator/Innovator 4 Caregiver 8 Jester 2Magician 4 Hero 6 Ordinary Guy 1



C l l ti f A C l ti


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Calculation of Area Correlation

Brand SuccessCelebrity

FailureCelebrity

Polio 224 162

Sona ChandiChawanprash

177 92


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Volume Growth in Celebrity endorsement on T.V.

Share of Celebrity Profession on TV during 2007


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Share of Celebrity Profession on TV during 2007.

Share of Top 10 Categories with Celebrity


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p g y

endorsement advertising volumes.

CONCLUSION


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CONCLUSION There is a gradual shift from the traditional

approach of showing celebrities in advertisement tomaking them the spokes-person of the brand.

Celebrity endorsements do work in the Indianscenario.

The consumer looks for a variety of aspects fromthe endorsement like the credibility and likeability ofthe endorser.

Multiple endorsements do clutter the minds of theconsumer.

Wh d d b d th th


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When one endorser endorses many brands, then therecall of the endorsement depends entirely on thepower of the brand.

It is not just the financial gains from theendorsements that matter to the celebrity. They alsolook for the fit with the brand and what theendorsement might do to their image.

Professional performance of the endorser isimportant in deciding the success of theendorsement. bad performance causes negativeimpact to the endorsements.

Regional appeal factors, popularity, attractiveness,belief system are important platforms which impactcelebrity endorsement.


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The End

celebrity endorsement

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