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PAPER M 207

SEMINAR ON CONTEMPORARY MANAGEMENT ISSUES REPORT

IMPACT OF CELEBRITY ENDORSEMENTS ON OVERALL BRAND


{Searching !r "he Righ" Ma"ch#
Prepared under supervision ofSubmitted by -

Ms. Sweety CONTENTS 1. INTRODUCTION


2. SYNOPSIS

Ashish verdia P.NO.


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3. ARTICLE {THE HINDU-BUSINESS LINE} 4. DEFINING THE MEANING & SCOPE OF THE TOPIC 5. IMPORTANT CELEBRITY ATTRIBUTES . THE NEED FOR CELEBRITY ENDORSEMENT 7. !HY COMPANIES USE CELEBRITIES ". SCOPE OF CELEBRITY ENDORSEMENT #. IMPACT OF CELEBRITY ENDORSEMENT 1" 1$. THE PROCESS OF CELEBRITY ENDORSEMENT 11. RIS%S ASSOCIATED !ITH CELEB. ENDORSEMENT 12. CELEBRITY SELECTION

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13. CELEBRITY ENDORSEMENT& THE ISSUES IN'OL'ED 2# 14. FRAME!OR% OF ENDORSEMENT PROGRAM 15. !HY CELEBRITY ENDORSEMENT FAILS( 1 . %INDS OF CELEBRITY-HOOD - THEIR IMPACT ON BRANDS 17. RESEARCH & ANALYSIS 1". CASES ANALYSIS USING THE FRAME!OR% 1#. CONCLUSION 2$. FACTS AND FIGURES 21. REFERENCES 47 $ 3 # 73 31 37 45

INTRODUCTION
The modern world of marketing communication has become colorful and inundated with advertisements and it is hard to get

noticed. !t is an uphill task for the designer of an advertising campaign to differentiate itself from others and attract viewers" attention. #veryday consumers are e$posed to thousands of voices and images in maga%ines newspapers and on billboards websites radio and television. #very brand attempts to steal at least a fraction of an unsuspecting person"s time to inform him or her of the ama%ing and different attributes of the product at hand. The challenge of the marketer is to find a hook that will hold the sub&ect"s attention.!n helping to achieve this use of celebrity endorsers is a widely used marcom strategy. !n this &et age people tend to ignore all commercials and advertisements while flipping through the maga%ines and newspapers or viewing T'. (ut even then the glamour of a celebrity seldom goes unnoticed. Thus celebrity endorsement in advertisement and its impact on the overall brand is of great significance. !n this process the companies hire celebrities from a particular field to feature in its advertisement campaigns. The promotional features and images of the product are matched with the celebrity image which tends to persuade a consumer to fi$ up his choice from a plethora of brands. Although this sounds pretty simple but the design of such campaigns and the subse)uent success in achieving the desired result calls for an in-depth understanding of the product the brand ob&ective choice of a celebrity associating the celebrity with the brand and a framework for measuring the effectiveness. *ompanies invest large sums of money to align their brands and themselves with endorsers. Such endorsers are seen as dynamic with both attractive and likeable )ualities and companies plan that these )ualities are transferred to products via marcom activities. +urthermore because of their fame celebrities serve not only to create and maintain attention but also to achieve high recall rates for marcom messages in today"s highly cluttered environments.

Ari$"!"%e said ,(eauty is a greater recommendation than any letter of introduction.- This could aptly summari%e why innumerable products are endorsed by celebrities with or without a significant need or benefit from the same.

Similarly every product has an image. The consumer tries to consume a brand which has the ma$imum fit with his.her own personality.image. The celebrity endorser fits in between these two interactions where he tries to bring the image of the product closer to the e$pectation of the consumer by transferring some of the cultural meanings residing in his image to the product. ,The model of *elebrity #ndorsement- is essentially based on the theoretical framework of C%a$$ica% C!n&i"i!ning given by Pavlov.

/pfront this seems like a very effective weapon in mature and saturated markets which differentiates products from those of the competitors by clearing the clutter and reaching the consumer. (ut is the impact so significant or are the celebrities themselves adding to the clutter0 Through this paper we primarily try to evaluate the impact of any celebrity endorsement campaign on the brand by analy%ing it through our 'I()ac"*Ana%+$i$ Fra(e,!r-. consisting of - brand consumer and the celebrity as well as the interactions between the *onsumer - #ndorser and (rand - #ndorser. And finally is the investment in a celebrity commensurate to the returns earned by the company0 !f the world were full of all wise men and all wise women1 we would have never heard of a term called advertisement. And then good

products would have found the right customers and grown to prosperity. +irms would have worked out a mathematical formula to sell and succeed. (ut the buying process isn"t rational1 and so is this world. !ndians are die-hard movie and sport buffs1 and this aspect of the consumers has invited the concept of ,*elebrity #ndorsement- to the world of advertisement. The purpose of this paper is to analy%e the role of *elebrity #ndorsement in the process of brand-building by taking appropriate e$amples from the advertising landscape.

ABSTRACT
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 quite like your product. * A% Rie$ / La0ra Rie$ !ndian advertising started with the hawkers who used to call out their wares right from the days when cities and markets first began. 2ith this evolved a strategy that tried to benefit from the emotional attachment of the admirers or the fans of the celebrities1 in the form of celebrity endorsement. Paper tries to understand the process of consumer psychology and impact of celebrity endorsement on the overall process of brand building. The in-depth study of various models brings to light the comple$ities pertaining to celebrity endorsement. A symbiotic model has been proposed to define3 how to make celebrity endorsement a win-win situation for both the brand and the brandendorser. 'Bran&. is the most valuable asset of any firm. Any thoughtless adventure can be like the Sword of 4amocles. !t"s the strong idea of promotion which is a more strategic means of brand-building1 which can be an economical alternative over celebrity endorsement. It doesnt matter ho becomes. ne an idea is! hat matters is ho ne it

* E%ia$ Cane""i

If youre trying to persuade people to do something" or buy something" it seems to me you should use their language" the language in hich they think. * Da1i& Ogi%1+ This paper rifles through the concept of celebrity endorsement and provides insights on what it is and how the increasing number of endorsements throw a valid )uestion to the consumers. !s there a science behind the choice of these endorsers or is it &ust by the popularity measurement0 2hat are the reasons which lead to impact of celebrity endorsement on brands0 Through research and analysis this paper emerges with a 56-point model which can be used as blue-print criteria and can be used by brand managers for selecting celebrities and capitali%es the celebrity resource through 789 degree brand communication since our research proposes it as the foundation brick of the impact of celebrity endorsement. :ur study reveals that the impact of celebrity endorsement is proportional to the 56 factors discussed in the model. The success of a brand through celebrity endorsement is a cumulative of the 56 attributes. ;reater the score of the below greater are the chances of getting close to the desired impact.

SYNOPSIS
The general belief among advertisers is that brand communication messages delivered by celebrities and famous personalities generate a higher appeal attention and recall than those e$ecuted by non-celebrities. The )uick message-reach and impact are all too essential in today"s highly competitive environment.

2e put forward certain ideas like <positioning by association" <diminishing celebrity utility" and the Multiplier #ffect which show the triangular relationship between the brand the consumer and the celebrity.

=ow despite the potential benefits derived from celebrity endorsements they increase a marketer"s risk manifolds and should be treated with full attention and aptitude. A brand should be cautious when employing celebrities to ensure promise believability and delivery of the intended effect. The growing importance of mythical characters as celebrities and their sway over the target segments are ample proof of public demand for icons to look up to. As the celebrities traverse from a mere commercial presence to public welfare message endorsements a whole new dimension is added to this process and helps us in achieving a holistic view of the impact which celebrities generate in every sphere and segment through their well-versed endorsements. *elebrities have also been in demand having succeeded in being effective by rising above the clutter > grabbing the attention and focus of the consumer. They also succeed in creating an aspiration in the minds of the consumer to ac)uire what their favorite celebrity endorses. ?owever the above might be too simplistic a solution for multitudes of marketing problems in the real world. ?ence to analyse how effective any *elebrity #ndorsement campaign is we need to look at the various factors which impact its success. Through this paper we have developed an analytical structure called 'I()ac"*Ana%+$i$ Fra(e,!r-. comprising three main factors - (rand *onsumer #ndorser and the interaction between (rand - #ndorser and *onsumer-#ndorser. +urther we apply our framework to a series of celebrity campaigns to gauge the reasons for the success and failures of each to check the validity of our model. !n our analysis we also came across factors which have impacted campaigns in very specific terms and hence cannot be generali%ed1 to elucidate the same we have presented analysis of some of these uni)ue cases which have been marked by diverse outcomes.

ARTICLE {THE HINDU-BUSINESS LINE}


@ane Taylor could not have given a better cue with her immortal nursery rhyme ATwinkle twinkle little star ?ow ! wonder what you

areB in the early nineteenth century as the advertisers today discover - *onsumers like ga%ing at stars. Shahrukh"s face appears over the T.'. and eyes open up. This is the power of celebrity advertising and it is what corporations across the globe pray to transform into ringing cash registers. The advertisers believe that brand images built through celebrities achieve a higher degree of attention and recall for consumers eventually leading to higher sales. The use of celebrities is a testimony to their ability to cut through the clutter and reach the brand"s target audience immediately and effectively. (ut then if this were the sole case names like Michael @ackson or Md. A%haruddin would not cause many furrows. ?ence it becomes clear that any celebrity endorsement is a two-way funnel between the personality and the product wherein both take upon each other"s image and responsibility. The immediate )uestion which comes to the mind is ,2hy celebrities- when the same money can be used to promote the same brand in myriad ways through non-celebrity figures. !t would do us well to reali%e that in this era of slick competition speed is the key. *elebrities reflect the modern society transfer their associated )ualities to the brand and pro&ect a living breathing image to the product as opposed to a faceless entity. This triggers a chain of social influence which allows the consumers to be in accord instantly with the communicated attitude. Price of fame may be high for the celebrity endorsed brands but they have both what the markets and the everyday common man want - attention power and star si%%le. !n the same breath the theoretical model #hierarchy$of$effects suggests that for a purchase to take place the consumer must be first aware of the product then inculcate a liking towards it and finally develop an intention to ac)uire it. This ascension is cataly%ed by celebrity presence during brand promotion. (e it Ca&nikant making a demographic connection or the new avatar of Amitabh (achchan forging a psychological attachment they carry a mass appeal and establish instant brand credibility while adopting a subtle persuasive approach. !t is presumed that a personality"s dynamic )ualities of attractiveness likeability and appeal are superimposed on the brand image and lead it to acceptance by their fans and the general mass.

2e can now safely look at the various roles played by the celebrities in this vigorous e$ercise of name and fame sharing. /sually the foremost character is that of an %ndorser accepting the product claims and signaling personal preference for the brand - something like Shahrukh for Pepsi. 2e talked all the while about celebrities helping the brand grow and reach new heights but they have also proven their ability to pull the brands from dire straits and help them bounce back. The *ola companies and the chocolate ma&or *adbury"s successfully used their Trouble$shooter guardians to overcome product controversies in !ndia. (rands employ a smart techni)ue which can well be called #positioning by association. The )ualities attributed to the personality rub-off on the brand image and become associated with it in the consumers" minds. (ut the moment there is a breakdown this position backfires in the first instant. 2henever the celebrity is out of line in his personal or social behaviour he becomes liability as an advertisement device. !t is pertinent for the brands to reali%e that two things should not happen at any point of their communication if they are to sustain the streak of popular celebrity endorsements. +irst while the brand should en&oy the positive vibes of the celebrity it should be fle$ible enough to wriggle out of any undesirable situation that the endorser might present. ;et a celebrity create a hype and brand bu%% and fleece the surge and move on to the ne$t. Second under no circumstances should the celebrity be allowed to overshadow the brand - never let him.her become your brand. Shahrukh <Mayur" Dhan Madhuri 4i$it for #mami and Sunil ;avaskar for 4inesh Suitings are classic e$amples in this case. The moment you cease brand relationship with these overportrayed endorsers the euphoria is beaten and confusion reigns in the customer"s mind. Smart brands follow a strategy similar to the ocean-wave phenomenon - Coll a big wave generate customer delight submerge his loyalty towards competition and then bring another huge one. (rand managers employ celebrities in the age-old A!4A model to counter that. The *elebrities draw Attention generate !nterest evoke 4esire and induce Action from the audience. An old

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@apanese proverb goes that ,'ision without action is a daydream but action without vision is a nightmare.Managements across the world need to reali%e that no matter how great the ad-spend and famous the celebrity they cannot succeed if the core product offering fails to meet the consumer e$pectations. #very endorsed brand may garner some start-up euphoria and blind-spot sales but to sustain its meteoric rise it cannot afford product dissatisfaction. !n such cases the celebrities are also )uick to dissociate themselves from the brand as it hampers their carefully cultivated image of an infallible character. Again not every celebrity works for every product. #ach personality carries a set of perceptions attached to it and these have to be in sync with the perception the brand has or wishes to generate. Mercedes (en% would never hire a ;ovinda in !ndia but the same men have simply worked wonders for respective brand like =avratan Tail. A clean natural fit between the celebrities and the brand image enhances the latter"s value. Eu$ is a glowing e$ample of being the <beauty soap of film stars" since the last fifty yearsF A well-managed celebrity endorsement has the ability to convey to the customers that the celebrity is benefiting from the brand and they will too. Many endorsements fail because they use the celebrities like a prop in the advertisement copy. There should be an idea which makes the celebrity relevant firstly to the product and finally to the consumer. The bottom line is that the celebrity endorsements work truly only when the commercial is provoking and original. Aamir Dhan"s successful incarnations in the <Thanda Matlab" copies for *oca-*ola have added a new dimension to this assertion. !t pro&ected the brand as the star being cherished by the celebrity and not the other way round. !n addition an effective endorser should not associate with many different products and fall in the trap of overe$posure. Deep the consumer"s mind clear from confusion and do not let him feel that you are in it for the money rather than truly believing in the brand. The &a of 'iminishing (arginal )elebrity *tility would further ensure that the return on such investment would be nothing short of negative. The ad-recall and celebrity association depletes rapidly in such clutter-cases and hence the utility obtained by the brand takes a pitfall. An increasingly popular strategy is the

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employment of the product placement tactic in the movies or television shows featuring the sponsored celebrities. *oca-cola presented this strategy on the !ndian scene with its multi-million product placement deal in the movie ,Taal-. !t is so much like <not in your face and yet there" urging you passively. Cesearch has again shown that the subliminal effects of such brand imagery tend to linger in the consumer memory for a longer time-period than the direct commercials. The brand managers work on an e$tremely sleek thoughtcontrolling process which may be propounded as the (ultiplier %ffect. They are smart pragmatic people and know very well that Mr. Singh sitting in his co%y home in 4elhi and watching his favourite action hero driving the brand new EG car model would not walk up to the car showroom ne$t day and book one for himself. They offer simple feelers like concept and lifestyle to him which are inherent to the product advertisement with or without the celebrity endorsement. 2ith the use of the celebrity this effect is shrewdly magnified so as to allow the consumer to e)uate the personality and the brand together. ?ence whenever the consumer is watching the several images of her favourite actress alone it con&ures up multiple impressions of her sipping the GH brand of coffee each time. The brand"s ultimate goal is to be at the top of her choice bracket and it achieves this goal by being omnipresent in her memory through related celebrity imagery. 4oes it &ustify the obscene amounts of money paid to these celebrities0 +or firms with annual turnovers in e$cess of Cs. 5999 crores an endorsement deal of Cs. I-8 crores for such a response would indeed be a smart deal. !n a Synovate.(lackstone Market +acts Survey in !ndia in late J997 almost 6KL respondents affirmed celebrity influence on their purchase behaviour. That"s a lot of people influenced by celebrity endorsementF Talking about successful switchovers by celebrities among competitive brands Aamir Dhan had a KML top brand recall with *oke. (ut such transitions are rare and involve a lot of hard work behind the scenes to dab any leftover effects of the celebrity"s previous liaison with the competitor. 2hile speaking of celebrities we should be very clear as to who this term connotes to and the powers they carry. +ido 4ido for K/P the Amul ;irl or Tony the Tiger for Dellogg"s +rosted +lakes

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are as much a celebrity as any breathing face. They reach their target consumer they move the product and they carry the brand. That"s what counts. :f course the gestation period is higher in the case of such creatives but in the event of a hit the comparative risks are minimi%ed. After all they cannot get drunk attract a controversy or commit a crime as long as the management wants. !n short they are <safe floaters" vis-N-vis their unpredictable human counterparts. /ndoubtedly there are many advocates for the clamp down upon the commercialisation of consumer emotions and money-making attitude of endorsers. (ut the celebrities have circumvented these allegations by appearing in non-commercial advertisements. 2hen Aishwarya Cai appeals to the nation to donate their eyes while she personally pledges them she strikes a chord with millions of viewers. Shabana A%mi inspires a sense of tremendous awe and respect while being shown as visiting ?!' patients. !ndeed the premise that celebrity advertising has the power to propel a brand and drive the sales can be argued. The Pareto Principle is widely debated and the M9-J9 rule does not have many takers in the advertising industry. That ,J9L of advertising creates M9L of demand or sales- may or may not be true. !n either case it does not help. /sing a celebrity in advertising is no panacea and the success of this process depends on several factors as discussed above. The careful selection of celebrity matching the target segment and brand values should be inherently stressed upon. They choose personalities from various fields or even appealing to various consumer perceptions so that they can minimise the damage in cases of negative publicity due to any celebrity mistake. The cola brands spread their endorsements across a wide <variety" of celebrities such that even if one falls the others are still holding the fort.

DEFINING THE MEANING & SCOPE OF THE TOPIC BRANDING & CELEBRITY ENDORSEMENT

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Today use of celebrities as part of marketing communication strategy is fairly common practice for ma&or firms in supporting corporate or brand imagery. 2ha" i$ a Bran&3 4ac- 2e%ch the former *#: of ;eneral #lectric once said ,:ur most valuable assets are our intangible assets.- The intangible asset he was referring to is a brand. The 4ictionary of (usiness > Management defines a brand as3 ,a name term sign symbol or design or a combination of them intended to identify goods or services of one seller or a group of sellers and to differentiate them from those of competitor-.

DEFINITION OF CELEBRITIES
*elebrities are people who en&oy specific public recognition by a large number of certain groups of people. They have some characteristic attributes like attractiveness e$traordinary lifestyle or special skills that are not commonly observed. Thus it can be said that within a society celebrities generally differ from the common people and en&oy a high degree of public awareness. According to Frie&(an an& Frie&(an a ,celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed-. *ompared to other endorser types famous people always attach a greater degree of attention recall and loyalty. According to Me%i$$a S"5 4a(e$ a doctoral fellow and marketing instructor at The ;eorge 2ashington /niversity ,Studies show that using celebrities can increase consumers" awareness of the ad capture OtheirP attention and make ads more memorable.-

!n this age of intense competition where capturing a position in the consumers" mind space is e$tremely tough celebrity endorsements give an e$tra edge to the companies for holding the viewers" attention. *elebrities can cataly%e brand acceptance and provide the enormous momentum that brands re)uire by endorsing the intrinsic value to the brand.

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,The term *elebrity refers to an individual who is known to the public Aactor sports figure entertainer etc.B for his or her achievements in areas other than that of the product class endorsed- A+riedman and +riedman 5QKQB. This is true for classic forms of celebrities. Eike ac"!r$ Ae.g. Amitabh (achchan Shahrukh Dhan Aishwarya Cai Preity Rinta Aamir Dhan and Pierce (rosnanB. M!&e%$ Ae.g. Mallaika Arora Milind Soman =aomi *ampbell etcB Te%e1i$i!n Personalities A?usain Smriti !raniB S)!r"$ ig0re$ Ae.g. Sachin Tendulkar Sania Mir%a Dournikova Michael Schumacher Tiger 2oods etcB En"er"ainer$ Ae.g. *yrus (roacha :prah 2infrey B And )!)*$"ar$ Ae.g. Madonna ShakiraB. (ut also for less obvious groups like 60$ine$$(en Ae.g. 'i&ay Mallya (ill ;atesB or )!%i"ician$.*lebrities appear in public in different ways. +irst they appear in public when fulfilling their profession e.g. 'ishwanathan Anand who plays chess in front of an audience. +urthermore celebrities appear in public by attending special celebrity events e.g. award ceremonies inaugurations or world premieres of movies. !n addition they are present in news fashion maga%ines and tabloids which provide second source information on events and the <private life" of celebrities through mass-media channels Ae.g. Smriti !rani being regularly featured in various publicationsB. East but not least celebrities act as spokespeople in advertising to promote products and services which is referred to celebrity endorsement. Anna

IMPORTANT CELEBRITY ATTRIBUTES


2hile selecting a celebrity as endorser the company has to decide the promotional ob&ective of the brand and how far the celebrity image matches with it. The selection is in fact a collaboration from which both the company and the celebrity gains.

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The most important attribute for a celebrity endorser is the "r0$",!r"hine$$. The target audience must trust that a celebrity carries a particular image and it must match with the product. The second attribute in order of importance is %i-ea6i%i"+. The celebrity also must be accepted as a popular icon by a large cross section of the audience. Si(i%ari"+ between the target audience and the celebrity is the third important attribute. A person well-known in a society can have greater impact than a celebrity of a different world. !f the endorser and receiver have similar needs goals interests and lifestyles the position advocated by the brand communication is better understood and received. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. Apart from that e7)er"i$e is also believed to be another important attribute.

De ini"i!n ! Ce%e6ri"+ En&!r$e(en"


According to Frie&(an / Frie&(an a ,celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed.- So in the *oco-*ola advertisement1 actor Amir Dhan is the celebrity endorser for the product or brand called *oke and this process is referred to as *elebrity #ndorsement. *elebrities might endorse as a brand ambassador or a brand face. Di erence Be",een Bran& A(6a$$a&!r / Bran& Face A (rand Ambassador would be one who is not only a spokesperson for the brand or is &ust appearing as a testimonial for the brand"s benefits. ?e.she is an integral part of the brand persona and helps to build an emotionale which goes beyond &ust appearing on T' commercials. ?e takes up the cause of a (rand *hampion and is associated with every aspect related with the brand. 2hat is more there is a significant 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. So a

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brand ambassador would be involved in press releases he.she would be actively participating in any sales promotion sporting the (rand all the while. +or e$ample +ardeen Dhan is the brand ambassador for Provogue while he remains a brand face for Eu$ (ody 2ash. :n the other hand a (rand +ace would be the current celebrity who is &ust used as a tool to increase brand recall and is only appearing in the advertisement. !t is usually seen that a brand face is a temporary contract and is very short term at times. An e$ample would be Sona *handi *hawanpryash using Sourav ;anguly for a while in its commercials. (rand faces are easily forgotten and fades away with the campaign"s end

THE NEED FOR CELEBRITY ENDORSEMENT


The charisma of the celebrities almost always entices people and their words are worshipped by a lot of people. Their influence also goes on the political front where they are invited for political endorsement. eg. ?ema Malini for (.@.P. ;ovinda for *ongress Amitabh (achchan for S.P..2hen actor Shah Cukh Dhan endorses Santro-Rip drive1 the consumers are made to think that he is giving his opinion to go for this car. Similarly actress Cani Mukher&ee has turned the tables for (ata"s ladies footwear brand called Sundrop as sales increased by a whooping I99L. Ce%e6ri"+ en&!r$e(en"$ are i()e%%e& 6+ 1ir"0e ! "he !%%!,ing (!"i1e$8 * S !nstant (rand Awareness and Cecall S *elebrity values define and refresh the brand image S *elebrity adds new dimensions to the brand image S !nstant credibility or aspiration PC coverage S Eack of ideas S *onvincing clients

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!HY COMPANIES USE CELEBRITIES - THE CELEBRITY EDGE


S P$+ch!%!gica% Fac"!r$8 *elebrities generally satisfy the Testeem needsT of an individual. +or e$ample a movie actress is e$pected to possess a flawless skin and a blemish free face. ?er fans want to know the secret of her beauty so she becomes a natural endorser for beauty related products Acosmetics soaps powderB. propping U) A*+,-.-// +.0 T,1/2 L-3-4/& Rahul dravid - bob To C5661.78+2- + C-,2+7. M-//+9- +:512 2;- C56)+.<& Sachin Tendul ar a! brand a"ba!!ador gave i# #he de!ired $aceli$# and i"age $or #he launch o$ %&ic#or% &alue =5, M5.-<& To P5/7275. 2;-7, B,+.0 D7/27.8273-4<& 'u( )orld)ide ha! po!i#ioned i#!el$ a! #he %!oap #he $il"!#ar! u!e%* +ro" 'eela ,hi#ni! #o -i!h)ar.a Rai/ all #op ac#re!!e! have "odeled $or 'u(* ,elebri#. S2+.07.9 =5, + S7.94- B,+.0&Thin 0a ir 1u!!ain and .ou are re"inded o$ %2ah Ta3% Ta3 4ahal #ea* 5i##o )i#h -* R* Rah"an $or -ir#el*

SCOPE OF CELEBRITY ENDORSEMENT


The use of testimonials by advertisers dates back to the 5Q th century when medicines were patented. +irms have been &u$taposing their brands and themselves with celebrity endorsers Ae.g. athletes actorsB in the hope that celebrities may boost effectiveness of their marketing and.or corporate communication attempts for at least a century. :ne of the early e$ample is Uueen 'ictoria"s endorsement of *adbury"s *ocoa ASherman 5QMIB. !t was not until the 5QJ9s however that advertisers used famous people for product endorsements. Actresses @oan *rawford *lara (ow and @anet ;aynor were among the first celebrities to promote products A+o$ 5QM6B. At that time the rationale given by advertising agencies for using celebrities was ,the spirit of emulation- A+o$ 5QM6 p.Q9B. About a decade ago one in three television commercials used celebrities" endorsements A(usiness 2eek 5QKMB and today this advertising

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approach appeared to be on the increase across all media types ASherman 5QMI and Eevin 5QMMB. +riedman A5QKKB found that celebrities are featured in 5I percent of the prime-time television commercials. !n the /nited States it was reported that about J9L of all television commercials feature a famous person and about 59L of the dollars spent on television advertising are used in celebrity endorsement advertisements AAdvertising Age 5QMK1 Sherman 5QMIB. Thus celebrity endorsement has become a prevalent form of advertising in /nited States and elsewhere. Today the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image building and product marketing AMedia @uly-August 5QQKB. This phenomenon is reflected by the recent market research findings that M out of 59 T' commercials scoring the highest recall are those with celebrities" appearances . Ce%e6ri"+ En&!r$e(en" in In&ia Pha$e 98 The Pi!neering Pha$e :9;<0*9;=0> this phase was characteri%ed by3 5. Eimited channels of communication J. 4emand e$ceeded supply 7. ?eavy regulation and governmental regulations some bigger companies from their global e$perience introduced the concept of celebrity endorsement. ?EE has used ?indi film stars to endorse their beauty soap Eu$ since the fifties. Pha$e 28 The Gr!,"h Pha$e :9;=0*9;;0> the introduction of television added a variable effective medium of communication. !ndian stars going global with events like Asiads and 2orld *up victory. 'imal Thums-/p ;walior and 4inesh are some of the other brands that used star-appeal in the early days of mass advertising. There was a spurt of advertising featuring stars like Tabassum APrestige Pressure-cookerB @alal Agha APan Parag Pan-masaalaB Dapil 4ev APalmolive Shaving *reamB and Sunil ;avaskar A4inesh SuitingsB. Pha$e ?8 G%!6a%i$a"i!n !n highly competitive markets the following realities about brand management e$ist3 5. Product differentiating factors are duplicable and imitable. J. All long e$isting and successful brands imbue their products with a meaning.

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IMPACT OF CELEBRITY ENDORSEMENT


The increasing number of endorsements throws a valid )uestion to the consumers. !s there a science behind the choice of these endorsers or is it &ust by the popularity measurement0 2hat are the reasons which lead to impact of celebrity endorsement on brands0 Through research and analysis this paper develops a 56 point model which can be used as a blueprint criterion which can be used by brand managers for selecting celebrities and capitali%es the celebrity resource through 789 degree brand communication since our research proposes it as the foundation brick of the impact of celebrity endorsement. :ur study reveals that the impact of celebrity endorsement is proportional to the 56 factors discussed in the model. The success of a brand through celebrity endorsement is a cumulative of the following 56 attributes. ;reater the score of the below parameters greater are the chances of getting close to the desired impact. Fi" ,i"h "he A&1er"i$ing I&ea :ne of the most successful celebrity endorsement campaigns which reflect the fit between the brand and the 789 degree advertising fit is +ardeen Dhan and Provogue. Provogue"s positioning in the apparel market is of a young active party-going attention-grabbing brand and so is +ardeen Dhan. The con&unction between the two has been immensely impactful and brand managers have utilised this endorsement through 789 degree reinforcement.

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Ce%e6ri"+*Targe" A0&ience Ma"ch Smriti !rani endorsing the 2?: recommended :CS *ampaign in !ndia. !ndian mothers can associate with Smriti !rani through the facets she pro&ects on screen or in regular life which helps develop a connect with the target audience since mothers medicate their children with :CS. Ce%e6ri"+ Va%0e$ Tabu endorsing Tetra Packed Milk Shabana A%mi campaigning for A!4S Awareness Amitabh (achchan > Shahrukh Dhan campaigning for Pulse Polio or Aishwarya Cai appearing in the 4onate #yes campaign are few e$amples which reflect the transfer of celebrity values to the brand creating an impact that generates recall. C!$"$ ! Ac@0iring "he Ce%e6ri"+ Cecently a newspaper report showed how cola firms had gone beyond their advertising budgets to get the best celebrities. Small firms that use celebrities" services run greater risks if they invest large amounts. Although nobody is willing to say e$actly how much celebrities get paid industry sources say Sachin Tendulkar"s price is believed to be between Cs. J.9-J.I crores per endorsement and musician A. C. Cehman who had signed up with AirTel is believed to have picked up Cs. 5.KI crores. +ilm-star ?rithik Coshan was rumored to have picked up Cs. J crores for the +ly 2ith ?rithik campaign to push *lose-/p and Shahrukh Dhan"s rate seems to be between Cs. J.I-7.9 crores. Aishwarya Cai apparently picks up Cs. 5.JI crores for an endorsement and the !ndian cricket captain Saurav ;anguly is believed to get between Cs. Q9 lakh to Cs. 5.I crores while film-star Aamir Dhan apparently makes Cs. 5.I crores per endorsement. Ce%e6ri"+ Regi!na% A))ea% Fac"!r$ C. Madhavan endorsing Pepsi in southern !ndia or Sachin Tendulkar endorsing in !ndia are few e$amples of how celebrities are chosen to reach out to target audiences for brands in regional markets.

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Ce%e6ri"+*Pr!&0c" Ma"ch *yrus (roacha is the brand ambassador for MT' since both the celebrity and the brand are considered as friendly young moodboosting humorous and outspoken. MT'"s brand personality overlaps *yrus (roacha"s image as a brand. Some more e$amples of compatible celebrity product match in which celebrity brand attributes get transferred to the brand and increases the brand e)uity is of ;ovinda > =avratan Tel Aishwarya Cai > =akshatra etc. Ce%e6ri"+ C!n"r!1er$+ Ri$The perfect e$ample here is of Salman Dhan and the controversy in which he crushed a man to death with his Pa&ero when he was driving under the influence of alcohol. Also any act on the part of the endorser that gives him a negative image among the audience and goes on to affect the brands endorsed. The brand in most instances takes a bashing. Ce%e6ri"+ P!)0%ari"+ *elebrity (rand association like ;arnier endorsed Tara Sharma > Simone Singh Agni 4iamonds > Ciama Sen don"t get much brand recall and even if they do its difficult to attribute it to the celebrities" endorsing the brand.:n the other hand ?P*E has had increased popularity and share of voice due to the endorsement of the brand through Sania Mir%a. Ce%e6ri"+ A1ai%a6i%i"+ !n case of various brands there are situations in which they prefer to go without a brand face since there is no brand-fit between the celebrities available and the brand. Also due to multiple endorsements by certain celebrities brands refuse to adopt celebrity endorsement since they fear dilution of the brand image. Ce%e6ri"+ Ph+$ica% A""rac"i1ene$$ @ohn Abraham endorsing 2rangler and Time$ Sunglasses are some e$amples which portray the celebrities" physical attractiveness that helps create an impact.

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Ce%e6ri"+ Cre&i6i%i"+ The most important aspect and reason for celebrity endorsement is credibility. !n a research carried out among 67 ad agencies and companies most e$perts believed that the most important dimensions of credibility are trustworthiness and prowess or e$pertise with regard to the recommended product or service. :ne of the most obvious reasons of Amitabh (achchan endorsing plethora of brands is the credibility of the celebrity and his recognition across consumers. To site one of the most successful campaigns in which the celebrity"s credibility has had an indelible impact on the brand and has saved the brand is of *adbury"s. After the worm controversy Amitabh (achchan"s credibility infused into the brand through the campaign helping it to get back on track. The campaign has won an award for the same. M0%"i)%e En&!r$e(en"$ =ot many people can remember all the brands that a celebrity endorses and the chances of losing brand recall increases if the celebrity endorses multiple brands. +or e$ample in case of Sachin Tendulkar people recall Pepsi T'S 'ictor and MC+ but might not remember brands like (ritannia and +iat. Similarly for Amitabh (achchan consumers remember !*!*! Pepsi Parker Pens Pulse Polio and (PE. They might get confused in the endorsement of =erolac or Asian Paints. Thus for multiple endorsements where the same celebrity endorses several brands it boils down to the strength of the brand and the advertising content. 2he"her Ce%e6ri"+ i$ a Bran& U$er 'arious celebrities endorse =;:s and social causes since they believe in the social message that they need to convey to the audience. :ne of the most successful campaigns has been e$ecuted by P#TA in which celebrities like Shilpa Shetty Amisha Patel Hana ;upta Sheetal Malhar Mahima *houdhary claimed to believe in P#TA"s philosophy and thereby endorse the brand.

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IMPACT REGIONS OF CELEBRITY ENDORSEMENT&


The illustrations below e$plain the same3 -

Source+ ,dopted from T-( et al" .//0.

THE PROCESS OF CELEBRITY ENDORSEMENT


The process of celebrity endorsement is more of meaning translation > meaning application. A deeper insight into this comple$ process is provided by the following theory.

25

The Meaning Tran$ er M!&e%


Mc*racken the author to this model has suggested that ,The effectiveness of the endorser depends in part upon the meaning he or she brings to the endorsement process.- The celebrities" effectiveness as endorsers stems from the cultural meanings with which they are endowed. !t is a three-stage process of meaning transfer that involves the formation of celebrity image transfer of meaning from celebrity to the brand and finally from the brand to the consumer.

Fig0re 98 The Meaning Tran$ er M!&e% To e$plain it with the help of an e$ample we can take the case of Cahul 4ravid and *astrol. The cricket icon is seen as ,Mr. 4ependable-. And when he endorses *astrol an image of ,dependability- is tagged on to the brand under promotion. C0%"0re The celebrities deliver meanings with e$tra subtlety depth and power than anonymous models. *elebrities offer demographic information with special precision and configurations of range of personality and lifestyle meanings. They evoke the meanings in their persona with greater vividness and clarity.

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*elebrities actually own their meanings because they have created them on the public stage by dint of intense and repeated performance. They pass these meanings into advertisements through meaning transfer process. Preity Rinta for e$ample is perceived as a fun-loving vivacious and modern !ndian woman. En&!r$e(en"$ The meaning transfer model proposes that the marketing . advertising firm at first should determine the symbolic properties sought for the product. Thereafter they should consult a host of celebrities and their associated meanings. +inally after considering budget and availability constraints the celebrity should be chosen to represent the appropriate symbolic properties. The chosen celebrity will have some meanings associated with it which is not sought after for the product. The advertisement program should take care about keeping the unwanted meanings out of the evoked set and capture only the salient meanings. The advertisement must be designed to highlight the essential similarity between the celebrity and the product. C!n$0()"i!n *onsumers constantly search for the ob&ect world which gives them access to workable ideas of demography personality lifestyle and culture. Mc*racken suggests that this stage of the model is most comple$ as consumers must claim e$change care for and use the consumer goods to appropriate its meanings. *elebrities play a ma&or role in this stage as they have created their own self which makes them e$emplary and inspirational figure to the consumers. *onsumers try to emulate the celebrities admired by them and try to find out the meaning in the similar fashion. *elebrities bring the dramatic roles fashioning cultural meanings into a practicable form. !n the endorsement process they make these meanings available in the material form to the consumers who are keen to bring a self from them. Thus celebrities become an essential partner to the meaning transfer process because they vividly demonstrate the process by which the meanings can be assembled.

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If commerce is the engine of our economy" then advertising is the spark. 1esponsible advertisers are the drivers ho keep us on the right track" leading to a richer" more benevolent society.

RIS%S ASSOCIATED ENDORSEMENT

!ITH

CELEBRITY

The concept of 'T!"a% Bran&ing. is slowly emerging and many companies are focusing on that. They are emphasi%ing on their best practices customer relationship management and employee training and knowledge management. !nternal brand management under which the company ensures that employees and channel partners are convinced about the brand is becoming particularly important for they are the ones who have to deliver. Thus the celebrity endorsement can be considered only as a carrier of what"s inside. (esides while designing an ad campaign one should also keep in mind that the overuse of some e$tremely popular celebrities often tends to confuse consumers and reduce the utility of celebrity endorsement. Another argument against celebrity endorsement involves the behavior of the celebrity. The marketing function of a company should also understand that brands should assume a much greater space than the celebrities because their association may be temporary but the brands are permanent. The various risks associated with celebrity endorsements are as follows3 VNega"i1e )06%ici"+ * !f the celebrity is strongly associated with the brand then the occurrence of the negative publicity can spill over the brand.. #.g. Salman Dhan lost his endorsement deal with Thumbs-/p after his infamous incidents like buck-killing and rashdriving. VO1er$ha&!,ing * 2hen celebrity endorser is used the risk of consumers focusing on the celebrity and not on the brand e$ists. VO1ere7)!$0re * This risk arises when the celebrity chooses to endorse several different products simultaneously which might leave the consumers confused. #.g. Sachin Tendulkar endorses several brands such as MC+ T'S 'ictor Pepsi +iat (oost etc.

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VO1er0$e * Sometimes the company can use many different celebrities to appeal to different market segment. (ut multiplicity of endorser might blur the image. VE7"inc"i!n * The favorable response obtained by a particular brand may weaken over time if the brand gets significant e$posure without the association of the celebrity. !f the celebrity contract is for a considerable period of time then it can lead to draining out capital without proper return. VFinancia% Ri$- * The decision for hiring an e$pensive 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 rules3 *lear brand promise and brand personality. The communication ob&ectives for the campaign should be fro%en. +ocus must be on the synergy between the brand and the celebrity image #stablish e$plicitly communicate what the celebrity is going to

CELEBRITY SELECTION
There are various scientific ways in which the right celebrity is selected for the product endorsement which are discussed here after

S"ere!"+)ing
Tellis defines stereotypes as perceptions and depictions of individuals based on simplistic biased image of the group to which they belong rather than on their own individual characteristics. +or e$ample3 its better to select celebrities who say are teens for chocolate advertisements and females for detergent ads etc.

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The TEARS M!&e%


The attributes highlighted by the acronym ,T#ACS- are gauged for celebrity selection. These are3 VTr0$",!r"hine$$8 +or e$ample - Eegendary actor Amitabh (achchan who is an icon of trust1 promoting !*!*! (ank. VE7)er"i$e8 +or e$ample - ;olfer Tiger 2oods for a sports brand. VA""rac"i1ene$$8 +or e$ample - Tennis player Anna Dournikova who earns 59 Million dollars per year in &ust endorsement. VRe$)ec"8 +or e$ample - +ormer Miss 2orld Aishawarya Cai and the #ye donation campaign. VSi(i%ari"+8 +or e$ample - a child artist promoting a chocolate brand. A celebrity scoring high on all the above attributes can turn out to be a good endorser for the brand under )uestion.

The N! TEARS M!&e%


The ,=o T#ACS- approach is a tool for managers and their advertisers how to go about selecting celebrities so as to avoid the pitfalls from making an unwise decision. !t gauges the following information3 V V V V V V V *elebrity > audience match up *elebrity > brand match up *elebrity credibility *elebrity attractiveness *ost consideration A working ease and difficulty factor An endorsement saturation factor

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A likelihood-of-getting-into-trouble factor

Selecting the right celebrity does more than increasing sales1 it can create linkages with the celebrities" appeal thereby adding new dimension to the brand image. Cesearch conducted by Datherine #ckel has revealed that ,celebrities can get people to make a better choice but cannot influence people to make a foolish choice-. The success of celebrity endorsement in !ndia can be sought from a market research conducted earlier which found that M out of 59 T' commercials scored the highest recall were those with celebrity appearances. A few e$amples3 Sachin Tendulkar - Adidas Sourav ;anguly - (ritannia Eeander Paes > Mahesh (hupati - @. ?ampstead Shah Cukh Dhan - Pepsi Sushmita Sen - #pson and Aishwarya Cai - *oke.

CELEBRITY IN'OL'ED

ENDORSEMENT&

THE

ISSUES

There are several factors to consider before resorting to celebrity endorsement. There is no single formula to win in the world of marketing. A company must analy%e the prospect of endorsement from 789 degrees prior to product promotion.

Price 1$5 Pr! i"


The most important issue is that of return on investment AC:!B. *ompanies need to perform a cost-benefit analysis prior to endorsement. The process of gauging the effectiveness of endorsement on the overall brand is but difficult. The companies e$pect to bring in the long run future sales revenues and profit from the present investments on celebrity endorsement. *elebrity endorsement is an e$pensive means of brand promotion and the price burden almost always shifts on to the consumers1 if not then it narrows the companies" profit.

M1427)4- B,+.0 E.05,/-6-.2

E.05,/-6-.2

3/.

M1427)4-

C-4-:,72<

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!n the advertising landscape we find either a celebrity endorsing multiple brands or multiple celebrities being used to endorse a single brand. Sachin Tendulkar for e$ample in J99J endorsed 5J brands Aincluding Pepsi (oost *olgate Total ;illette (ritannia Tiger +iat Palio T'S 'ictor +iat Sienna MC+ Adidas 'isa *ards and ?ome TradeB. Tripp et al says that the endorsement of as many as four products negatively influences the celebrity spokesperson"s credibility and likeability.

Fig0re ?8 M0%"i)%e Bran& En&!r$e(en" :Shah R0-h Ahan> Also the use of multiple celebrities to endorse a brand may hinder the meaning transfer process and thus lead to confusion among the consumers.

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Fig0re B8 M0%"i)%e Ce%e6ri"+ En&!r$e(en" :A&i&a$ / C+0n&ai San"r!>

FRAME!OR% TO MA%E EFFECTI'E CELEBRITY ENDORSEMENT PROGRAM

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Fig0re 28 E1!%0"i!n ! Ce%e6ri"+ En&!r$e(en"$ The action plan should be able to answer the following key )uestions3 -

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Are the celebrity endorsements programs result driven0 ?ow to )uantify the value generated by the celebrity endorsements0 Are customers able to connect the brand with the celebrity0 :ne can gauge the performance of celebrity endorsement marketing program across the various stages of development ACefer to +igure JB. 2e have attempted to prepare a framework to build a more effective celebrity endorsement program 95 A%ign Ce%e6ri"+ En&!r$e(en" 2i"h B0$ine$$ O6Dec"i1e$5 The attributes of the celebrity should be intrinsically valuable and aligned with the product brand and company. +igure 7 suggests strategies to be adopted by a company depending on its brand positioning and the brand fit with the celebrity. V !f the brand-celebrity attribute fit is slow then the company should adopt Eliminate or avoid strategy. The consumers are unlikely to connect between the brand and the celebrity and the recall value is likely to be very low1 defeating the entire purpose of signing the celebrity. This is what happened when ;oodlass =erolac Paints roped in Amitabh (achchan as their brand ambassador. V 2hen the positioning of the brand is high but the fit with the celebrity is low the company should adopt a Monitor and evaluate strategy. The company should continuously track the effectiveness of the celebrity endorsement through surveys monitoring the sales etc. Though Parker pens had a positioning of premier pens the early advertisements ACefer Anne$ure 5B with Amitabh (achchan showed low brand-celebrity fit. V 2hen the positioning has not been effective but the fit with the celebrity is high the company should adopt the strategy of Keep and enhance. The company has to spot the opportunities to leverage the celebrity investment and to find more better and effective ways to communicate with the target audience. The celebrity attributes align with the company"s brand strategic business ob&ectives and primary customer segment. The =arain Darthikeyan - @ D Tyres relationship works well in this category.

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Fig0re ?8 Bran&*Ce%e6ri"+ A""ri60"e Fi" Ma"ri7

V !n the ideal )uadrant when the positioning effectiveness is high and celebrity fit with the brand is also high the company should follow the strategy of Grow and partner. !n case of *oke the brand has firmly established the Thanda position in the minds of the consumer with Aamir Dhan playing the perfect role.

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(y situating potential celebrity on the matri$ companies can manage the celebrities as portfolios - re-distributing the resources and marketing efforts to those celebrities with the greatest potential to increase value while eliminating those that prove too costly. 25 Mea$0re an& E0an"i + Per !r(ance The company should have proper metrics in place such as increase in sales brand awareness and customer preference to measure the effectiveness and the impact of celebrity endorsement in the short and long term. The relationship between the endorsement costs and the benefits is e$plained further in +igure 6. The endorsement costs are primarily driven by the endorsement fees and promotion outlays. The benefits that accrue from such a relationship can be categori%ed into two components3 V Va%0e ! Car& A$$e"$ 3 The benefits derived from the hard assets are those that have a clear market value such as increased sales and increase in brand e)uity. These are the tangible benefits that a company derives from its endorsement strategy. V Va%0e ! A$$!cia"i!n8 Association value is derived from the target customers who associate the company . brand with the celebrity. These are the intangible benefits that the company will accrue in the long-term. There are ways to )uantify the potential value of hard assets and association value against their impact on company"s celebrity endorsement by looking at the following categories3 V Incre(en"a% Sa%e$3 *ompanies can )uantify the effect of the celebrity programs on sales by performing year-to-year or )uarterto-)uarter sales comparisons for targeted consumers geographic regions or specific product lines. Primary research can also be done to reveal the impact of the celebrity on target customer"s propensity to purchase. Bran& Rec!gni"i!n 3 :ne of the ob&ectives of celebrity endorsement is to increase brand awareness. ?owever the companies use popular though incorrect survey approach by asking the respondent which celebrity endorsed their brand.

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!nstead they should ask the respondent the brands associated with the celebrity. (y gauging the top-of-mind recall can enable the company to find out if a connection is made between the brand and celebrity. C0$"!(er L!+a%"+3 *ustomer churn can be measured in fi$ed intervals before and after the celebrity campaign period to determine the impact of celebrity on customer retention. Additionally primary research can be conducted to evaluate changes in the customer loyalty customer preferences etc. ?5 Se%ec"i!n an& Rene,a% ! C!n"rac" 2i"h Ce%e6ri"ie$ The ability to align goals and measure the value of brand-celebrity fit is the first step in obtaining optimal value from a celebrity endorsement. 'alue is also derived by revisiting the celebrity portfolio to determine ways to reduce costs and increase benefits. Additionally a company can increase its benefits by re-e$amining Aand altering if neededB its promotion strategy to create deeper brand association identify new celebrities that are capable of achieving company goals and negotiate for additional rights from the e$isting contracts. A large e$tent of this can be successful if the company can develop and e$ecute coordinated preplanned negotiation strategy which will enable it to improve the contractual fees and media commitments stipulated in the contract as well as the amount and benefits conferred on the company. A few guidelines for formulating a well-defined negotiation strategy would include3 V Un&er$"an& "he C!()e"i"i!n ! Ce%e6ri"+3 #$cept for few venerable celebrities1 most of the celebrities )uote their price in e$pectation of negotiation. The company should benchmark the contractual fees and benefits against that of comparable celebrities to ensure the package is e)uivalent. V Un&er$"an& FCe%e6ri"+G C%0""er8 There could be a degree of clutter with the celebrity endorsing many more brands and companies. This clutter can impede the ability of the company to capture the image and awareness re)uired to generate value from the endorsement. The company needs to understand the risk associated with the signing of such celebrity and need to devise strategic opportunities to stay clear of the clutter.

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Fig0re B8 En&!r$e(en" C!$"*Va%0e Re%a"i!n$hi)

V Inc%0&e Va%0e*in*Ain& Pa+(en"$3 *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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H Pr!"ec"i!n Again$" A(60$h Mar-e"ing 3 Ambush marketing Aor ad&acent marketingB is the reality of the day and the marketing managers need to be creative to stay one step ahead of the competition. +or instance Amitabh (achchan was shown drinking Thumbs$*p in the hindi movie 2aante when he is actually brand ambassador for Pepsi.

!HY CELEBRITY ENDORSEMENT FAILS(


There maybe cases where brands are not able to take-off even after the backing of celebrities. And this leads to speculations in the Ad 2orld on the soundness of celebrity endorsement as an effective communication strategy. Nega"i1e i()ac"$ ! Ce%e6ri"+ En&!r$e(en" !n "he 6ran& A popular drawback of celebrity endorsement is the T'ampire #ffectT or the celebrity overshadowing the brand 58. Some viewers forget the brand that a celebrity is approving. :thers are so spellbound by the personality of the celebrity that they completely fail to notice the brand being advertised. Two new drawbacks can be seen these days what marketers call *elebrity Trap and *elebrity *redibility5K. *elebrity trap is when the celebrity becomes an addiction for the marketing team and the task to find substitutes becomes more and more difficult leading to surfeit of celebrities. *elebrity credibility refers to skepticism by the consumers regarding the celebrities especially when there is anything negative regarding the celebrity associated with the brand in the news then brand is bound to be affected.

T;- R-+/5./
According to leading management thinker 4r. Seamus Phan ,Many celebrity endorsements fail because they identify a celebrity they like in an emotive and un-researched manner and then try to create advertising to force-fit the celebrity into the creative concept.- Therefore the advertisers must associate the celebrity to the advertisement and not vice versa. Thinking on the similar lines the advertisers shouldn"t identify the brand to associate with the celebrity but do vice versa.

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The success of celebrity endorsement also depends upon the capacity knowledge e$perience and )ualification to talk about the product. +ailure may be attributed to improper positioning A#$ample3 Amitabh (achchan Abhishek (achchan > Maruti 'ersaB negative perception after use of product . service Ainferior productsB misapprehension of the meaning of the endorsement etc. The philosophy behind much advertising is based on the old observation that every man is really t o men $ the man he is and the man he ants to be. * 2i%%ia( Fea"her

T;- S541275./
As discussed celebrity management is very crucial to avoid the brand-celebrity disconnect and subse)uently brand failures. !f the consumers have )uestions in their minds regarding the )uality or performance of the product then even ;od cannot save the brand. The obvious solution to the problem of overshadowing is to make sure that both the advertisement and the celebrity are focused on the brand or product. To avoid any bad publicity arising out of celebrity defames companies may resort to multiple celebrity endorsement. +or #$ample3 Pepsi while capitali%ing on the popularity of cricket and films in !ndia used several cricketers and film stars in their ads. So when A%haruddin and @ade&a got embroiled in the match-fi$ing controversy Pepsi severed its association only with these stars but its relationship with cricket continued.

T;- S<6:75278 M50-4


(ased on our understanding of the celebrity endorsement process we can propose our own model taking cue from the biological kingdom. There are various symbiotic relationships that can e$ist between two organisms. Similarly we can visuali%e two entities ,brand- and ,celebrity-. To achieve a perfect success there should be absolute symbiosis between the two entities. There may be one of the si$ effects to the celebrity endorsement process3 -

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*elebrity endorsement is a comple$ process of balancing your risk with your gains. The pure and simple truth is rarely pure and never simple. * O$car 2i%&e

Fig0re 28 The S+(6i!"ic M!&e% V M0"0a%i$( :M>8 (oth help each other A#$ample3 Tata and =arayan Daritiken Amir Dhan and TitanB V C!((en$a%i$( :C9>8 :nly one among them is benefited A#$ample3 A failed endorsementB V Para$i"i$( :P>8 :ne is benefited1 other is harmed A#$ample3 A%haruddin and Pepsi. Also ?ome Trade > Shah Cukh Dhan Sachin TendulkarB

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V Ne0"ra%i$( :N>8 =one of them benefited or harmed A#$ample3 Amitabh (achchan Abhishek (achchan and Maruti 'ersaB V A(en$a%i$( :A>8 :nly one of them is harmed1 other unaffected V C!()e"i"i!n :C2>8 (oth are harmed

IMPACT-ANALYSIS FRAME!OR%
According to our study the effectiveness of celebrity endorsers is not independent but is moderated by several factors like celebrity attractiveness and credibility product-celebrity match message and product type level of involvement number of endorsements by celebrities target receiver characteristics and overall meanings Ae.g. personality values standardsB attached to celebrities. (esides these factors environmental factors regulative issues and compatibility with overall marketing strategy also influence the impact of the endorser. 2e focus our study on the following categories . The targeted consumer The celebrity endorser The product =one of these factors can independently achieve a positive impact on the consumer1 hence there e$ists an indispensable need for these factors to have certain characteristics and a tactical fit amongst themselves.

Along with factors which directly impact we also study the following influencers which have an indirect effect on the way an endorsement is perceived W

Market #nvironment

43

:verall Marketing strategy Cegulative !ssues

A. F+825,/
I5 Pr!&0c"

44

=ot every brand can and should be endorsed by celebrities. The brand"s image personality > the buying involvement of the customer would determine whether or not a celebrity endorsement would be effective and also identify its endorser. Cesearch has proved that consumers would react more favourably to celebrity endorsers as against e$perts or typical - consumer endorser in products which are high on psychological and . or social risk. The celebrity creates a positive image and significantly impacts consumer"s intention-to-buy. Also for products having aspiration value e.g. premium watches cars the celebrity creates the aura of elitism. +urthermore products with high financial performance or physical risk such as mutual funds medical e)uipments are evaluated more favorably when endorsed by a professional e$pert rather than by a celebrity. +or products which are low in all five types of risk typical consumer - endorsers are most effective since the consumers can relate to the character A?ershey ?. +riedman and Einda +riedmanB. II5 En&!r$er An #ndorser can be defined as ,Any individual who en&oys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement-. The following inherent )ualities in the endorser usually impacts the brand *redibility of image . Trustworthiness A?onesty !ntegrity (elievabilityB *ompetence . #$pertise Ain relation to the productB 4ynamism Eikeability Attractiveness I()ac" ! Ce%e6ri"+ !n "he Bran& Plethora of research has tried to e$plore the effects that a celebrity e$hibits. *elebrity endorsements3 *reates and helps in retaining attention of the targeted audience.

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Achieves high brand recall in an environment with multitude of products. Transfers of )ualities associated with the celebrity to the product. Perceived as entertaining. Portrays trustworthiness due to lack of apparent interest

III5 C!n$0(er *onsumer is the factor being wooed by the company.product using the endorser. ?ence both the product > the endorser need to meet the e$pectations of the consumer thus making it critical to understand consumer reactions to a given stimulus and product category in differing circumstances.

B. I.2-,+8275./
I5 C!n$0(er * En&!r$er :C*E In"erac"i!n> Sudden change of the celebrity image 4rop in popularity of the celebrity Eoss of credibility due to over-endorsing 4isappearance of celebrity out of media flashlight II5 Bran& * En&!r$er :B*E In"erac"i!n> #very brand has a personality and the traits found in the brands should be reflected in the celebrity too. A mismatch leads to confused audience and lack of brand recall. 2orse in some cases it might even lead to association of the celebrity with the competitors brand Ae.g. =erolac Paints where Amitabh (achchan being a brand endorser of =erolac paint was perceived to be associated with Asian PaintsB. I$ Ce%e6ri"+ En&!r$e(en" A%,a+$ "he Be$" Me"h!& Pr!(!"ing a Bran&3 !r

46

*ompanies in many cases prefer not to use a celebrity but instead go ahead with a spokesperson which has been tailor made for the product by the company. The following are the advantage of such a strategy3 V C!n"r!%3 *ompanies control the created spokesperson as it has been built in conformity with the brand and target audience and hence can be ensured with a consistent image. /nlike in case of celebrities where the celebrity"s persona both present and past have been created over the years. V Sing%e 0"i%iIa"i!n ! crea"e& en&!r$er$ 3 Such spokespersons are e$clusive for a brand and hence avoiding any brand conflict. H A$$!cia"i!n !1er a %!ng "i(e )eri!& 3 The spokesperson creates a permanent image by a long and steady association. V F!c0$ (!re !n 6ran& an& i"$ ea"0re$ 3 !n =on-*elebrity advertisements the main focus is on the brand and its characteristics while in celebrity the focus sometimes shifts entirely to the celebrity"s features and their aura > hence the medium fails in carrying the main message across. #$amples of such endorsement are ;attu - Asian Paints +ido4ido - K/p ?utch - (oy.

C. I.=41-.8-,/
I5 Mar-e" En1ir!n(en" !t indirectly impacts the effectiveness of a campaign. *elebrity campaigns create stronger impact in saturated markets as products lack differentiation and clutter is huge. #.g. !ndian soft drink industry heavily depends on celebrity endorsement for promotion. II5 Mar-e"ing S"ra"eg+ (oth single celebrity endorsing multiple products and multiple celebrities endorsing single product at the same time reduces association of product and celebrity and reduces impact Ae.g. Pepsi - 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 by the marketing strategy followed by the company. III5 Reg0%a"i1e I$$0e$ Promotion of products like (everages and *igarettes is tightly regulated by authorities who impact the effectiveness of celebrity endorsement Ae.g. (everages in !ndia are being promoted using surrogate advertisements and hence a celebrity endorses a secondary product of the brand and not the primary product- A&ay 4evan for (agpiper SodaB. This reduces the effectiveness of the campaign.

%INDS OF CELEBRITY-HOOD - THEIR IMPACT ON BRANDS


:9> Pr!&0c" P%ace(en"$ 2hile the movie TTaalT brandished *oke bottles unabashedly :2> Ce%e6ri"ie$ C!*O,ning "he Bran& Madhuri 4i$it and #mami T(eauty secrets by MadhuriT range :?> Fic"i!na% Cer!e$ Shaktimaan has sold Parle-; and Popeye single-handedly revived the consumption of spinach in the /S. :B> N! M!re 60" Ce%e6ri"ie$ S"i%% ,a"paign! crea#ed around a dead per!onali#. )a! #he %6ar lo duni.a "u#hi "ein% ca"paign $or Reliance $ea#uring 5hirubhai -"bani :<> Page ? Ce%e6ri"ie$ :J> Ce%e6ri"ie$ !r a Ca0$e The 7ul!e 7olio ca"paign being coordina#ed b. 89:,;+ $or #he 4ini!#r. o$ 1eal#h and +a"il. 2el$are had -"i#abh <achchan and Sachin Tendul ar

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:7> S)!! ing Mirinda spoofed the ?utch puppy Aa celebrity in its own rightB. :=> Ma$c!"$ Ronald 4c5onald/ #he -"ul girl :;> Men are r!( Mar$K 2!(en r!( Ven0$ =ohn -braha" lend! hi! rugged i"age #o >a"aha bi e! )hile 7rie#. 0in#a lend! her cu#e di"ple! #o peddle Scoo#.* :90> Ce%e6ri"ie$ Len&ing "heir Na(e "! Bran&$ Sharu h 6han/ -"i#abh <achchan and Re ha have per$u"e! na"ed a$#er #he" :99> C!()an+ O,ner$ Being Ce%e6ri"ie$ &i3a. 4alla.a and Richard <ran!on )ho are )al ing #al ing celebri#ie! and endor!e #heir o)n brand! #hrough #heir e(#ravagance/ #heir $la"bo.an# li$e!#.le :92> P!%i"ica% Lea&er$ The %:ndia Shining% ca"paign $ro" #he <=7 and #he %,ongre!! a haa#h aa" aad"i e !aa#h% ca"paign $ro" #he ,ongre!! )i#h &a3pa.ee and Sonia ?andhi lending #heir $ace! :9?> U$ing a S!cia% Pr!)!$i"i!n B0i%" 2i"hin "he Bran& The Surf campaign done by Cevathy and Shabana A%mi Ain the south and north respectivelyB which stressed on the prudent usage of valuable water was a social proposition cleverly inter-woven in the brand. :9B> D0ra"i!n ! U$age * Pr!(!"i!na% !r L!ng Ter( S"ra"eg+ Short-term e$ample is the Cani Mukher&ee campaign for (ata which is believed to have helped boost sales for the ladieTs footwear brand Sundrop by a whopping I99 per cent. The same Cani Mukher&ee has a longer association with +anta and Munch. :9<> S"ea%"h A&1er"i$ing

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Since a cynical public no longer believes that celebrities actually use the products they endorse in commercials. Cevlon launched an online marketing campaign targeting female customers via chat rooms talking about who CevlonTs new face would be. *onse)uently the announcement of ?alle (erry as CevlonTs new face was met with great anticipation. :9J> F!reign Ce%e6ri"ie$ =ac ie ,han doing a 5i!cover co""ercial or a <ori! <ec er doing a Si.ara" co""ercial :97> Unin"en"i!na% Ce%e6ri"+ En&!r$e(en"$ The .ear be$ore #he la#e 7rince!! 5iana bough# an -udi/ #he. !old 3u!# abou# $ive hundred piece! in #he 86* The $ollo)ing .ear !ale! $igure! )ere clo!e #o #en #hou!and "ar * =ohn -braha" ha.bu!a

SELECTION OF CELEBRITY

50

RESEARCH & ANALYSIS


The purpose is to provide the marketers with a quantitative method for selection of the right celebrities to optimize the outcome 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 anal sis.

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 *oods 2. 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., Wafers 4. "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 $rchet pe matri# for brands and celebrities: Creator)&nnovator "agician 1over 0utlaw #$%&$'le( Developed Cele'%&t) E**e+t&vene(( Inde, -CEI./ This is a parameter defined to evaluate the effectiveness of a personalit to Caregiver ,ero &nnocent %#plorer +ester 0rdinar *u 'age -uler

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interact with customer and create desired impact. &t is the sum of average score of each archet pe for a personalit . A%e$ Co%%el$t&on Inde, o* 0%$nd $nd CEI/ This we have defined as the weighted product of corresponding archet pes of brands and celebrities.

H)pot1e(&( H1/ A '%$nd2+ele'%&t) $%e$ +oe**&+&ent &( po(&t&vel) %el$ted to $3d&en+e '%$nd2+ele'%&t) +onne+t&on. 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 costs 4. (eature sustaining costs -isks $ssociated: 1. "ismatch risk 2. Celebrit feature transition risk 3. Celebrit feature mortalit risk The steps involved in testing of h pothesis 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#

Met1odolo4)
C$l+3l$t&on o* Cele'%&t) E**e+t&ve Inde, -espondents were given a name of a celebrit and asked to rate the personalit as against the archet pes defined earlier. The sampling was convenience sampling and sample size of hundred for each celebrit . Ten celebrities were selected for the purpose. The selection was 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. Met1odolo4) !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 archet pe 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) $mitabh /achchan !olio 0%$nd Alte%n$te Cele'%&t)5 'hah -ukh 6han !reeti 7inta /rett 1ee "ohammed 6aif

'hah -ukh 6han 'antro 'achin Tendulkar T8' 8ictor 'aurav *angul 'ona Chandi

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Chavanprash -ahul 9ravid ,rithik -oshan $ishwar a -ai 6areena 6apoor 'aif $li 6han !reeti 7inta ,utch 2akshatra $irtel -uffle 1a s !epsi 2one 6atrina 6aif $. -. -ehman 2awab !ataudi <uvra3 'ingh Tamarind :'. 6umars; 2one

= The celebrit that was recollected the least b respondents.

Re(3lt(
Cele'%&t) E**e+t&vene(( Inde, -CEI. The ten celebrities and the surve results are as follows: 1. $mitabh /achchan : C%& > ?? Creator)&nnovator @ "agician C 1over ? 0utlaw 4 Caregiver A ,ero A &nnocent B %#plorer @ +ester B 0rdinar *u 4 'age A -uler A

2. 'hah -ukh 6han : C%& > ?D Creator)&nnovator B "agician B 1over E 0utlaw 4 Caregiver D ,ero A &nnocent B %#plorer C +ester C 0rdinar *u 4 'age B -uler F

3. 'achin Tendulkar: C%& > ?B Creator)&nnovator A "agician E Caregiver @ ,ero A +ester @ 0rdinar *u 4

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1over 4 0utlaw 4 4. 'aurav *angul : C%& > D@ Creator)&nnovator C "agician B 1over @ 0utlaw 4
5. -ahul 9ravid: C%& > D? Creator)&nnovator C "agician ? 1over @ 0utlaw 4 6. ,rithik -oshan: C%& > ?5 Creator)&nnovator B "agician B 1over C 0utlaw 4 7. $ishwar a -ai: C%& > DE Creator)&nnovator B "agician B 1over F 0utlaw 4 . 6areena 6apoor: C%& > DC Creator)&nnovator 4 "agician B 1over F 0utlaw 4 !. 'aif $li 6han: C%& > DD

&nnocent 4 %#plorer A

'age B -uler E

Caregiver ? ,ero F &nnocent @ %#plorer C

+ester @ 0rdinar *u 4 'age @ -uler ?

Caregiver @ ,ero E &nnocent D %#plorer @

+ester 4 0rdinar *u 4 'age B -uler E

Caregiver @ ,ero A &nnocent A %#plorer D

+ester C 0rdinar *u 4 'age B -uler ?

Caregiver A ,ero F &nnocent E %#plorer B

+ester @ 0rdinar *u 4 'age B -uler @

Caregiver B ,ero A &nnocent B %#plorer C

+ester A 0rdinar *u 4 'age @ -uler B

56 Creator)&nnovator B "agician B 1over F 0utlaw 4 Caregiver B ,ero C &nnocent @ %#plorer @ +ester E 0rdinar *u D 'age @ -uler @

1". !reeti 7inta: C%& > DE Creator)&nnovator @ "agician @ 1over F 0utlaw 4 Caregiver A ,ero C &nnocent E %#plorer @ +ester A 0rdinar *u 4 'age 4 -uler @

Thus, C%& calculation was made for the ten celebrities. The C%& is quantitative measure of: 1. !opularit 2. &mage and positioning 0%$nd 6o(&t&on&n4 Inde, *o% 0%$nd( 6ol&o E%$d&+$t&on C$mp$&4n/ Creator)&nnovator 4 "agician 4 1over C 0utlaw 4 S$nt%o/ Creator)&nnovator C "agician 4 1over C 0utlaw 4 7#S #&+to%/ Caregiver ? ,ero C &nnocent 4 %#plorer D +ester C 0rdinar *u 4 'age @ -uler F Caregiver 45 ,ero 4 &nnocent 4 %#plorer 4 +ester 4 0rdinar *u 4 'age 45 -uler 4

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Creator)&nnovator C "agician D 1over @ 0utlaw 4


Son$ C1$nd& C1$v$np%$(1/ Creator)&nnovator D "agician D 1over @ 0utlaw 4 H3t+1/ Creator)&nnovator F "agician @ 1over C 0utlaw @ 7$m$%&nd -S. 83m$%9(./ Creator)&nnovator F "agician 4 1over C 0utlaw 4 N$:(1$t%$/ Creator)&nnovator B "agician @ 1over A 0utlaw 4 A&%tel/ Creator)&nnovator B "agician @ 1over F 0utlaw 4

Caregiver D ,ero C &nnocent 4 %#plorer C

+ester B 0rdinar *u 4 'age @ -uler C

Caregiver A ,ero C &nnocent 4 %#plorer @

+ester @ 0rdinar *u 4 'age ? -uler B

Caregiver B ,ero D &nnocent 4 %#plorer 4

+ester ? 0rdinar *u 4 'age @ -uler B

Caregiver @ ,ero A &nnocent 4 %#plorer 4

+ester C 0rdinar *u 4 'age 4 -uler 4

Caregiver @ ,ero A &nnocent A %#plorer 4

+ester 4 0rdinar *u 4 'age @ -uler @

Caregiver B ,ero A &nnocent 4 %#plorer F

+ester A 0rdinar *u 4 'age 4 -uler 4

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R3**le L$)(/ Creator)&nnovator @ "agician 4 1over A 0utlaw 4 6ep(&/ Creator)&nnovator F "agician 4 1over C 0utlaw 4 Caregiver @ ,ero A &nnocent 4 %#plorer 4 +ester C 0rdinar *u 4 'age 4 -uler 4 Caregiver @ ,ero B &nnocent 4 %#plorer 4 +ester A 0rdinar *u ? 'age 4 -uler 4

Thus, the calculation is analogous to C%& but is for companies or products. The outcome is the direct reflection of compan Gs positioning strateg . Alte%n$te Cele'%&t) CEI C$l+3l$t&on 1. /rett 1ee : C%& > D? Creator)&nnovator C "agician C 1over 4 0utlaw 4 Caregiver @ ,ero D &nnocent 4 %#plorer C +ester F 0rdinar *u ? 'age @ -uler D

2. "ohammed 6aif : C%& > B? Creator)&nnovator @ "agician @ 1over 4 0utlaw 4 Caregiver @ ,ero B &nnocent C %#plorer @ +ester ? 0rdinar *u A 'age 4 -uler @

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3. 6atreena 6aif : C%& > B? Creator)&nnovator 4 "agician D 1over 4 0utlaw 4 4. $. -. -ehman : C%& > BA Creator)&nnovator A "agician E 1over @ 0utlaw 4 5. 2awab !ataudi : C%& > B4 Creator)&nnovator F "agician A 1over @ 0utlaw 4 6. <uvra3 'ingh : C%& > BF Creator)&nnovator C "agician 4 1over @ 0utlaw B Caregiver @ ,ero C &nnocent @ %#plorer C +ester C 0rdinar *u 4 'age 4 -uler 4 Caregiver 4 ,ero ? &nnocent 4 %#plorer 4 +ester 4 0rdinar *u 4 'age @ -uler 4 Caregiver @ ,ero @ &nnocent @ %#plorer A +ester 4 0rdinar *u 4 'age 4 -uler 4 Caregiver 4 ,ero C &nnocent 4 %#plorer A +ester E 0rdinar *u 4 'age 4 -uler 4

C$l+3l$t&on o* A%e$ Co%%el$t&on The corresponding cells of brand and celebrit are multiplied to calculate what we term as /rand-Celebrit $rea Correlation. The following table shows the results of above mentioned ten brands: 0%$nd S3++e(( ;$&l3%e

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Cele'%&t) !olio 'antro T8' 8ictor 'ona Chandi Chawanprash ,utch Tamarind 2akshatra $irtel 1a s !epsi @@D @CB @FF 4FF @55 4AC @BD @DF 4E5 4AC

Cele'%&t) 4C@ @4? 4AC E@ 455 4DA F5 4??

We term the celebrit with ma#imum recall as successful celebrit and with minimum recall as failure celebrit .

Con+l3(&on( & Re+ommend$t&on( o* (3%ve)


The test of , pothesis 4 shows that it is 455H accepted for the 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 competitive advantages. The following recommendations are made to brand managers and account managers: -

1. The cost of an endorsement will be a positive correlated function 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 optimized 4. The cost of the campaign can be reduced b involving celebrities with high polarized archet pe value which matches with the brand

L&m&t$t&on(
The C%& and area correlation are highl time dependent. The image and archet pe of a personalit is often volatile and ma change with time. The use of the method involves:1. 2. 3. -epeated surve s for C%& calculations. 6eeping track of celebrit activities. Continuous search for new and emerging celebrities.

A))en&i7 <n$&ded Compt&'&lt) 7%$&t ;&t A((o+&$t&on Inde, Inde, EB AB FB ?D EB 455 A? CA 455 ?5 @? @?

0%$nd Thums-up Coke $didas 'amsung

Cele'%&t) 'alman 6han ,rithik -oshan 'achin Tabu

Source3 *ognito +*( /EDA J99J 7$'le 1/ Comp$t&'&l&t) Inde, & 7%$&t ;&t Inde, o* 4 0%$nd( A(pe+t o* 0%$nd Im$4e Cele'%&t) 6%od3+t

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%legance /eaut $ttractiveness Class

-enuka 'hahane "adhuri 9i#it 'aif . Tiger !ataudi (ardeen 6han $mitabh /achhan Tarun Te3pal 'achin Tendulkar 'achin . 'ehwag 2aina /alsavar

Whisper %mami $sian !aints-o ale !rovogue -eid . Ta lor Tehelka T8' 8ictor -eebok 'hampoo

't lish ,onest Trustworthiness -eliable 6nowledge Iualified

%#pertise

CASES ANALYSIS USING THE FRAME!OR%


To test the contribution of an endorser in the light of various factors interactions and influencers we apply the following criteria and see if the results agree with the proposed model !ncreased (rand Awareness A!n terms of recall of copy points ad ratingsB Attitude towards the brand Purchase intent of the consumer (elievability in the message being conveyed

CASE& CELEBRITIES - TO USE OR NOT TO USE

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Si"0a"i!n 98 *adbury has always come up with sweet emotional clutter breaking commercials. 2ho can forget the lady dancing on the cricket pitch to celebrate her boyfriendTs century. (ut when the company was hit with the worm controversy it had to rope in the national icon Amitabh (achchan.?e embodied the values of *adbury as a brand and connected with all of !ndia - mothers teenagers children media persons and trader partners. The TinfomercialT that followed had (achchan first voicing his own concerns and then assuring consumers that his doubts had been satisfactorily laid to rest Aafter the factory visitB.This reinstated customer faith in *adbury and sales have now touched pre-worm crisis days. Si"0a"i!n 28 Asian Paints will always be remembered for its TMera wallah creamT campaign and more recently the T2ah Sunil babuT campaign. There have been very forgettable celebrity endorsements from Akshaye Dhanna and Saif Ali Dhan in the past Aprobably people were not able to visuali%e stars painting their own wallsB. This is a case of a company whose non-celebrity commercials have done way better than their celebrity campaigns in terms of recall and message delivery.

C+/-/
95 Shar0-h Ahan * Ma+0r S0i"ing$ APositive !mpactB

-Sharukh Mayur Dhan- is how this product came to be known Sharukh brought to the product his persona of high class lifestyle giving the consumer the belief to aspire and good clothing a sure way to reflect the aspiration. The ad shows a great fit between what the product stands for what the consumer e$pects and what the celebrity means to the consumer hence e$plaining the strong impact in sales and brand recall. 25 Dhar(en&ra * RaD&!!" M!"!rc+c%e$ APositive !mpactB

This strong man from yester years still resonates as the only brand ambassador who managed to sell a motorcycle in each and every corner of !ndia in the M9"s. 4harmendra"s image of being a brawny man hailing from the rustic roots of !ndia gave Ca&doot motorcycles the perfect brand ambassador it was looking for. ?e not only gave to the product a sturdy and robust image but also

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brought to the product trust and honesty which it was trying to build in its first time buyers. ?5 A(i"a6h Bachchan A*luttered !dentityB

:ur framework argues that e$clusivity makes the product-celebrity association stronger thereby making the product resonates with the )ualities of the celebrity. !n cases where the celebrity endorses multiple products he dilutes his e)uity. There"s no better e$ample in the !ndian industry than Amitabh (achchan who endorses !*!*! (ank *adbury 'ersa 4abur Cin Parker Pens Pepsi =erolac Paints and many more. !n each of the cases the ads use some or the other attribute of Amitabh to endorse the product but makes no strong link in the minds of the consumer. ?ence in the end the consumer is lost and has difficulty identifying what does Amitabh really stand for0 B5 Rani M0-herDee * Cer! C+c%e$ A=egative !mpactB

Cani Mukher&ee endorsing a cycle makes a case where the celebrity is used only for her popularity without looking for (randcelebrity fit. *ycles in !ndia are generally used by men and the target segment belongs to low income group. (y using Cani the consumers could not be assured of the product"s )ualities and could not relate the product to the ambassador. ?ence the consumers were not motivated towards the product and the ad was called back thereby emphasi%ing the need for a brand-celebrity fit. <5 C0"ch * The Chi%& an& "he D!g A*reated SpokespersonB ?utch managed to grab the attention of the consumers by not using a celebrity. The child and dog campaign came across as a fresh initiative at endorsing a product. The child and dog have had a very high brand recall as they represent only ?utch and have been created by the company according to the needs of the product and the message. !t communicates to the consumer ,2e are there wherever you are and that too unobtrusively.- The protagonist says all of the above and creates a strong bond with the consumer.

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J5 M!ha((a& AIhar0&&in * Bri"annia A*hange of the *elebrity !mageB Mohammad A%haruddin at the peak of his career was a brand ambassador for an assortment of products. (ut the match-fi$ing case besmirched his image and all of the products started disassociating their endorsements from him. Thus a product is sold on basis of the )ualities of the endorser and with a change in the inherent value system of the celebrity1 the bond with the consumer is lost. 75 Narain Aar"hi-e+an * 4!r&an L F!r(0%a 9 Racing A#ntering !nternational MarketsB A celebrity"s endorsement through various cultural and social roadblocks is one of the critical applications of our model1 =arain is a case in point. The popularity of +5 as a sport in !ndia owes its genesis to use of =arain as a brand ambassador of the sport. ?is image and persona has been used by the sport and the @ordan team to create brand awareness in !ndia. =5 Sachin Ten&0%-ar * Fia" Pa%i! A+inancial 'iabilityB

Sachin Tendulkar was paid a huge sum of Cs. 5J *rore to endorse +iat Palio even though Tendulkar as a brand could command such an e$orbitant amount. !t"s for the company to evaluate if the returns generated by the endorsement would commensurate the initial spend. !n this case due to e$cessive spending and failure of the product to take-off the advertisements had to be withdrawn.

CONCLUSION
There is an increasing challenge to the marketing manager to develop and implement an integrated marketing communication A!M*B plan to reali%e the true value of the celebrity endorsements. There is a gradual shift from the traditional approach of showing celebrities in advertisement to making them the ,spokes-person- of the brand. *ompanies have taken celebrity endorsement to ne$t level by pro&ecting brands as a way of life. Smart companies are using their brand ambassadors in other mediums such as movies to promote their brands.

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#.g. Amitabh (achchan who endorses the financial instruments of !*!*! (ank is shown as a branch-manager of !*!*! (ank in the movie 3aghban. 2ooing the key e$isting and potential target customers is the trait of a successful promotion strategy. ?owever the marketing manager should be able to offer significant value propositions in the services . products offered to the customers. Thus one needs to integrate celebrity endorsement with other marketing programs and ensure that the celebrity attributes align with the overall brand or company. *ompanies that succeed in developing such an integrated !M* plans is the one to succeed in the long-term. Anne70re 98 S"!r+ B!ar& ! Par-er Be"a

Amitabh (achhan gets a warm welcome at an Annual +unction of a college. As he acknowledges the delirious students... ... around him a young girl breaks across and runs up to him. ,:ne autograph please - she pleads. ?e obliges smilingly. ?e scrawls his signature across the page and stops to e$amine the pen. Turning the page he signs on afresh and clarifies ,4ost shost ke liye.-

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?e repeats his action and adds ,(hai shai.- The girl is dumbstruck and nods wordlessly. :ne more and he adds ,Padosi to honge.Het another page succumbs <*hachi wachi. 2hat a great penFThe girl &ust nods her assent.

?e repeats his action and adds ,(hai shai.- The girl is dumbstruck and nods wordlessly. :ne more and he adds ,Padosi to honge.Het another page succumbs <*hachi wachi. 2hat a great penFThe girl &ust nods her assent.

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M':3 ,=ew (eta from Parker. 4il chahe likhte &aayen.- The shot of the auditorium now deserted... ... e$cept for the girl and her idol. ?e continues to sign as she do%es ne$t to him ,4oodh wala paper wala dhobhi...Through analysis and research following insights3 this paper brings forth the

*elebrity endorsements do work in the !ndian scenario. The level and the magnitude of the effect vary with the celebrity and the product category but most endorsements have a favourable impact. The consumer looks for a variety of aspects from the endorsement like the credibility and likeability of the endorser. *redibility also means the fit between the brand and the celebrity. Multiple endorsements do clutter the minds of the consumer. 2hen one endorser endorses many brands then the recall of the endorsement depends entirely on the power of the brand. There are definitely some brands that go unnoticed and the recall for those stands is at a bare minimum. The company in that case can heighten the advertising content because that grabs a special place in the mind space of the consumer. !t is not &ust the financial gains from the endorsements that matter to the celebrity. They also look for the fit with the brand and what the endorsement might do to their image. Professional performance of the endorser is important in deciding the success of the endorsement. ?owever the bad performance should be stretched so as to make sense to the audience. More than the bad performance in the professional field it is the association of the celebrity with a controversy or illbehaviour that causes negative impact to the endorsements. 4uring the match fi$ing scandal in !ndia the commercials featuring A&ay @ade&a and Mohammed A%haruddin were all taken off air so that they did not have a negative effect on the brand.

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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 the impact of celebrity endorsement on brands. Studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. +ew celebrities have been more successful than those with almost parallel fame. So the role of celebrity endorsement in the advertising space is e)uivocal and cannot be seen as a assured strategic tool to win profits market share revenues etc. *onsumers can identify the clear difference between a good script and a good brand idea. +or e$ample while Pepsi"s Sachin and (achchan Akite flyingB ad was seen as one with a good script *oca-*ola"s Thanda (atlab... was seen as an insightful and strong brand idea. +or all the flak it drew in its vainglorious attempts to run down competition Thumbs-/p was seen as the only e$ample of seamless linkage between brand positioning and brand celebrity. *elebrities do not make brands but ideas do. *elebrity endorsement is also one of the ideas. !f not then brands would have vanished when the hype and hoopla around the celebrities faded. Thus the need of the hour is to focus less on your Re"0rn* !n*In1e$"(en" and think more in terms of your Re"0rn*!n*I&ea$. There is one thing hich is stronger than all the armies of this orld" and that is an idea hose time has come. * Vic"!r C0g! As has been identified in the analysis framework the impact of any *elebrity endorsement campaign depends on three factors (rand *ustomer and #ndorser as well as the interrelationship between (rand and #ndorser A(-# !nteractionB *onsumer and #ndorser A*-# !nteractionB ?ence a celebrity is re)uired to have not &ust a certain minimum level of )ualities such as attractiveness credibility etc. but there should also be a tactical fit between the constituting elements of the model. As has been seen in the cases celebrity endorsement

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can impact brands in both positive and negative manner. !t has acted as a panacea for companies such as *adbury"s during the phase when the brand was on the verge of losing its hard owned e)uity in the same time also has been used effectively in making the Anti-Polio *ampaign a grand success. Therefore before designing any promotion one must study how each of the factors involved complement and fit in with the other"s re)uirement.

?owever a number of brands have been built without celebrity endorsement. +or some of their brands ?industan Eever and Procter > ;amble do not believe in celebrity endorsement because they think that consumers especially housewives are more likely to identify with a lay person on screen than a celebrity. Procter > ;amble launched its TCe&oiceT brand in !ndia with testimonials from ordinary women in their T' advertising. +ew more e$amples of this will be Eifebuoy 2heel 4ettol *lose /p +evicol etc.

FACTS AND FIGURES &S Appro$imately 89-K9L of all television commercials feature famous people. S Aishwarya Cai had once endorsed T+u&i-+ilmT camera rolls. The company made an agreement with her to endorse their camera rolls. (ut AishwaryaTs magic did not work there and they had to terminate the contract. S Amitabh (achhan AA(B was seen endorsing MarutiTs 'ersa *ar. The A( factor worked wonders as far as generating curiosity was concerned but the actual product couldnTt meet the e$pectations of people and hence the endorsement strategy didnTt work. ?e has been used very effectively by Parker Pens !*!*! (ank and *adburyTs to name a few. S (ataTs sales doubled soon after they adopted Cani Mukher&ee as their brand ambassador. S Magic @ohnson lost his endorsement deals when he announced in 5QQ5 that heTs ?!'-positive. !t wasnTt until @uly J997 that he landed his first endorsement deal since the announcement.

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Ticket sales at 2imbledon are known to have shot up significantly for all matches featuring the latest Tse$-symbolT on the circuit - Anna Dournikova. An average player who is yet to win even a single tennis tournament Anna is known to have earned far more from endorsements than her tennis career could ever have given her

6Q per cent growth in *elebrity endorsement advertising volumes on T' during J99K compared to J998. *elebrities from +ilm !ndustry lead with M5 per cent share of overall *elebrity endorsement advertising pie on T' during J99K. TAerated Soft 4rinkT was the top category with ma$imum advertising volumes of *elebrity endorsement during J99K. *elebrity endorsement on T' saw a whopping growth of si$ times during J99K over J997 TShahrukh DhanT had ma$imum number of advertisers in his kitty during J99K. +ilm *elebrities had the largest chunk i.e. M5 per cent share of overall *elebrity endorsement on T' during J99K. Sports and T' personalities took the second and third rank with 56 per cent and I per cent share respectively during J99K. +ilm Actors accounted for I9L share followed by +ilm Actress and Sportsmen with 75 per cent and 56 per cent share of *elebrity endorsement on T' during J99K.

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4olume ;rowth in *elebrity endorsement on T.'.

Share of *elebrity Profession on T' during J99K.

Share of Top 59 *ategories with *elebrity endorsement advertising volumes.

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Top 59 categories share aggregates to 69 per cent of total advertising volumes of *elebrity endorsement on T' during J99K.

TAerated Soft 4rinkT T*ellular Phone ServiceT and TToilet SoapsT were at the top three positions of top 59 categories with ma$imum advertising volumes of *elebrity endorsement on T' during J99K.

Top three *elebrities 'isibility per day on Television through commercials in J99K.

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4uring J99K top three position of ma$imum visible celebrity on T' was occupied by +ilm Actors vi%. Saif Ali khan Shahrukh Dhan Amitabh (achchan. (1 April, 2008)

(Analysis from AdEx India - A Division of TAM Media Resear !)

REFERENCES
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5. Positioning3 A battle for mind - @ack Trout and Al Cies J. #rdogan A5QQQB X*elebrity #ndorsement3 A Eiterature
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Michael @ordan PhenomenaX @ournal of Advertising Cesearch Q. (. Rafer #rdogan Michael @. (aker and Stephen Tag AJ995B @une XSelecting *elebrity #ndorsers3 The PractitionerTs PerspectiveX 5ournal of ,dvertising 1esearch 7Q-6M 59. Tripp @ensen and *arlson A5QQ6B March XThe #ffect of Multiple Product #ndorsements by *elebrities on *onsumersT Attitude and !ntentionsX 5ournal of ,dvertisement 1esearch 'ol J9 I7I-I6K 55. Agrawal and Damakura A5QQIB @uly XThe #conomic worth of celebrity endorsers3 An event study analysisX @ournal of Marketing 'ol IQ I8-8J 5J. Aaker 4avid A. A5QQ8B (uilding Strong (rands. =ew Hork =H3 The +ree Press. 57. 4aneshvary Cennae and C. Deith Schwer AJ999B XThe Association #ndorsement and *onsumersT !ntention to Purchase X @ournal of *onsumer Marketing 5K A7B J97-J57. 56. +riedman ?ershey ?. and Einda +riedman A5QKQB X#ndorser #ffectiveness by Product Type X @ournal of Advertising Cesearch 5Q AIB 87-K5. 5I. Mc*racken ;rant A5QMQB X2ho !s the *elebrity #ndorser0 *ultural +oundations of the #ndorsement Process X @ournal of *onsumer Cesearch 58 A7B 759-7J5. !-:4759,+);<

16* www.thedayaftertomorrow.com 5K. www.synovate.com W J997 5M. www.indiantelevision.com 5Q. www.magindia.com J9. www.blonnet.com J5. www.rediff.com W article by *ountry head :>M !ndia JJ. indiainfoline.com W article T*elebrity #ndorsements in
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