CELEBRITY ENDORSEMENTIn Practice

To clarify exact meaning of Celebrity endorsement – it’s when brand involves a well known person in their advertising campaign to promote a product or service.

You all should have seen thousands of ads starring celebrities, presenting us clothing collections, food, make-up, perfume and other products and services, which seem to be same as before, but the fact that “cover girl” tells you she’s drinking that water, makes this product more wanted and puts it on another level.

Celebrity Endorsements

Companies spend huge amount of money to make celebrities appear in their ads:

Brad Pitt

Brand: Chanel (Chanel No. 5 ad)

Payout: $7 million

David Beckham

Brand: Adidas

Payout: $160 million (lifetime)

Beyonce

Brand: Pepsi

Payout: $50 million

Celebrity Endorsements

PROS

Celebrity endorsement makes us remember ads better

It makes us perceive product more differently. Product contributes star status

It helps ad to stand out from clutter. Celebrity-based campaigns hold the viewer’s attention

Celebrity Endorsements Gone Well

Face of Chanel No. 5, Nicole Kidman had been a major success to the fashion fragrance as she reportedly helped raise their business to 16%.

In 1984, Nike launched the most successful athlete endorsement campaign in history. Even though Michael Jordan has been out of the game for nearly 9 years. The Jordan Brand is now a branch of Nike that has grossed over $1 billion.

CONS

It’s always a risk. Brand image may easily be affected by celebrities’ good/bad behavior

Celebrity may overshadow brand and customers may focus on celebrity, not on product

It’s always better when celebrity is representing one brand. When endorsing in too much campaigns it may not be effective separately

for each of these companies

Celebrity Endorsements Gone Bad

After publishing pictures of Kate Moss in Daily Mirror newspaper where she was taking drugs Chanel, Burberry and H&M cancelled their campaigns and contracts with her.

In November 1991, L.A. Lakers star Johnson stunned the sports world by announcing that he had been infected with HIV while cheating on his wife. Industry experts said within six months, all of Johnson’s sponsorship deals, including those with Pepsi and Converse, had vanished

In 2004, the milk processors and dairy farmers responsible for the “Got Milk?” advertising campaign were forced to terminate ads featuring Olsen Twins after Mary-Kate checked into a treatment facility for a “health-related issue” that some publications reported as an eating disorder.

Client: KIA MOTORS GEORGIA

Chief Branding Officer wants brand Localization and use Celebrity Endorsement

Celebrity Endorsement in Practice

T A S K

Brand Identity:

Vibrant – Kia’s challenging spirit, fun attitude and proven capabilities resonate in people’s minds. It continuously strives to be at the pulse of time to deliver inspiring customer experience.

Distinctive – it offers unique product designs, smart technologies and enjoyable services. Kia’s free spirit creates new and colorful life for everyone.

Reliable – Kia never compromises quality. Its relentless pursuit of safety, performance and comfort makes Kia a trustworthy friend.

Brand Attractors:

Brand ChallengeI would rather prefer to pay same amount of Money for secondary BMW or Mercedes rather than buyBRAND NEW KIA. As far as I don’t know what does the brand stand for

Brand OpportunityTo show Georgian consumer that Driving New KIA is a New Status Trend of those who already Achieved something

• Refined Car Design• Affordability• Long-term Guarantee• Strategic alliances with Banks and Insurance

• Not established Brand Image• Perception of low-status brand• Brand is distant from consumers

Target Audience25-35 years, Urban, male, upper income earners, Young Achievers, Looking for Status

Brief

Brand Deflectors:

3 Stages

1st - Defining Desired Brand Image Attributes

2nd – Celebrity and Brand Story

3rd - Defining Celebrity Program for Brand Support

Desired Strategy

- 2

- 3

2

3

- 3 - 2 - 1 0 1 2 3

Reliability

Desired Strategy0

- 1

1

Benefits (Guarantee, free Insurance)

DesignDistinctiveness

Affordability

Experience

Comfortpleasure Youngish

Trendy

Prestige

Status

Quality

Achievement has always been significant issue for Georgian People. Friends in their 25-35 love to talk a lot about their personal/career/sport Triumphs. Car is the most outstanding attribute that defines their status and achievement Level

Story

KIA AWARD – Celebrity/Achiever of the YEAR

George Loria

Attributes:•Young-Achiever•Trendy•Likable

Brand Program

objective:• Develop Emotional attachment with Target Audience via leveraging

“Status” territory • Impress consumers & make brand more closer through George

Loria Celebrity Endorsement

expected results:Increase Top of mind +5ppIncrease “brand for me”, Attribute +2pp

mechanics:

ATL:

TVC - Kia Main Copy +5 sec Tag for G.Loria Testimonial; 16weeks; 2

flights; average – 250 weekly GRPs; 50-60% coverage.

Key Visual - G. Loria photo shooting with Kia Vehicles in Socially

Active Themes (Saving Goal at stadium; Desirable Friend; etc)

OOH - -Tbilisi/Batumi/Kutaisi – 30 Boards (4 months/2 flights)Print – 3 Yellow Press Magazines – 6 Months/2 flights (60k Circulations Total)PR: Test Drive - with George Loria every week daysPresentation and Award ceremony - for “Achiever of the Year” – George Loria - In KIA MOTORS GEORGIA Show Room.Press campaign with G.L.- interviews about life,, carrier, Interests, etc all about Achievement of Young Georgia ProfessionalTV-Story with G.L. - incl. product placement: G.L home, at football Ground, with friends, with parents, Going Out.BTL:Consumer Promo - Buy Kia and Get Infinite Credit Card; Allowance for G.Loria’s every Football Match for 2014; KIA Club Card – entitling permission on KIA Party during New Year

Consuemr Promo/ Special Gifts

Test Drive

TVC

OOH

Press

PR

BTL

KIA Main Copy +5 Sec Tag

2nd Flight

1st Flight

1st Flight

Presentation & Award Ceremony

TV Story Press Campaign

JAN FRB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC

2nd Flight

KIA Activity Calendar - 2014

KIA Main Copy +5 Sec Tag

15

Thank You

Vakhtang AntadzeGUM Category Manager Caucasus – Kraft Foods LLCPart of Mondelēz InternationalFamily of CompaniesAnuka ChokhonelidzeMarketing ManagerAdress LLC.