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project report on factor effecting brand celebraity
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The modern world of marketing communication has become colorful and inundated with
advertisements, and it is hard to get noticed. It is an uphill task for the designer of an
advertising campaign to differentiate itself from others and attract viewers’ attention
Everyday consumers are exposed to thousands of voices and images in magazines,
newspapers, and on billboards, web sites, radio and television. Every brand attempts to
steal at least attention of an unsuspecting person’s time to inform him or her of the
amazing and different attributes of the product at hand. The challenge of the marketer is
to find a hook that will hold the subject’s attention. In helping to achieve this, use of
celebrity endorsers is a widely used mar com strategy
In this jet age, people tend to ignore all commercials And advertisements while flipping
through the magazines and newspapers or viewing TV. But 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. In 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 fix up his choice from a plethora of brands.
Although this sounds pretty simple, but the design of such campaigns and the sub sequent
success in achieving the desired result calls for an in-depth understanding of the product,
the brand objective, choice of a celebrity, associating the celebrity with the brand, and a
frame work for measuring the effectiveness.
Companies invest large sums of money to align their brands And themselves with
endorsers. Such end orders are seen as dynamic with both attractive and likeable qualities
and companies plan that these qualities are transferred to products via mar com activities.
Furthermore, because of their fame, celebrities serve not only to create and maintain
attention but also to achieve high recall rates for mar com messages in today’s highly
cluttered environments.
Aristotle said, “Beauty is a greater recommendation than any letter of
Introduction.” This could aptly summarize 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 maximum 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 expectation of the consumer, by transferring some of
the cultural meanings residing in his image to the product.“The model of Celebrity
Endorsement”, is essentially based on
The theoretical framework of Classical Conditioning given by Pavlov Upfront, 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.
But. is the impact so significant, or are the celebrities Themselves adding to the clutter?
Through this paper we primarily try to evaluate the impact of Any celebrity endorsement
campaign on the brand by analyzing it through our “Impact-Analysis Framework
consisting of - brand, consumer and the celebrity as well as the interactions between the
Consumer - Endorser and Brand – Endorser .And finally, is the investment in a celebrity
commensurate to
The returns earned by the company?
If the world were full of all wise men and all wise women; we would have never heard of
a term called "advertisement" And then good products Would have found the right
customer sand grown to prosperity, firms would have worked out a mathematical formula
to sell and succeed. But the buying process isn't rational ; and so is this world.
Indians are die-hard movie and sport buffs; and this aspect of The consumers has invited
the concept of “Celebrity Endorsement” to the world of advertisement. The purpose of
this paper is to an laze the role of Celebrity Endorsement in the process of brand-build in
by taking appropriate examples from the advertising landscape.
DEFINING THE MEANING & SCOPE OF THE TOPIC BRANDING &
CELEBRITY ENDORSEMENT
Today, use of celebrities as part of marketing communication strategy is fairly common
practice for major firms in supporting corporate or brand imagery.
What is a Brand?
Jack Welch the former CEO of General Electric, once said, “Our most valuable assets are
our intangible assets.” The intangible asset he was referring to is a brand. The Dictionary
of Business &Management defines a brand as:"a name, term ,sign ,symbol ,or design ,or
a combination of them, interred to identify goods or services of one seller of a group of
sellers and to differentiate them from those of competitor".
DEFINITION OF CELEBRITIE
Celebrities are people who enjoy specific public recognition by a large number of certain
groups of people. They have some characteristic attributes like attractiveness,
extraordinary 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 enjoy
a high degree of public awareness .According to Friedman and Friedman, 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”. Compared to other endorser types, famous
people always attach a greater degree of attention, recall and loyalty.
According to Melissa St. James ,a doctoral fellow and Marketing instructor at The
George Washington University, “Studies show that using celebrities can increase
consumers' awareness of the ad, capture [their] attention and make ads more memorable".
In this age of intense competition, where capturing a position in the consumers’ mind
space is extremely tough, celebrity endorsements give an extra edge to the companies for
holding the viewers’ attention. Celebrities can catalyze brand acceptance and provide the
enormous momentum that brands require by endorsing the intrinsic value to the brand.
“The term Celebrity refers to an individual who is known to the public (actor, sports
figure, entertainer, etc.) for his or her achievements in areas other than that of the product
class endorsed” (Friedman and Friedman, 1979). This is true for classic forms of
celebrities. Like actors (e.g., Amitabh Bachchan , Shahrukh Khan, AishwaryaRai,, Preity
Zinta, Aamir Khan and Pierce Brosnan).
Models
(e.g., Mallaika Arora, Milind Soman, Naomi Campbell,etc)
Television
Personalities (Husain, Smriti Irani),
Sports figures
(e.g., Sachin Tendulkar, Sania Mirza, AnnaKournikova, Michael
Schumacher, Tiger Woods, etc),
Entertainers
(e.g., Cyrus Broacha, Oprah Winfrey,),
Add pop- stars (e.g., Madonna, Shakira).
But also for less obvious groups like
Businessmen
(e.g., VijayMallya, Bill Gates) or politicians
.Celebrities appear in public indifferent ways. First, they appear in public when fulfilling
their profession, e.g., Vishwanathan Anand, who plays chess in front of an audience.
Furthermore, celebrities appear in public by attending special celebrity events, e.g., award
ceremonies, inaugurations or world premieres of movies. In addition, they are present in
news, fashion magazines, and tabloids, which provide second source information on
events and the ‘private life’ of celebrities through mass-media channels (e.g., SmritiIrani
being regularly featured in various publications). Last but not least, celebrities act as
spokes-people in advertising to promote products and services, which is referred to
celebrity endorsement.
IMPORTANT CELEBRITY ATTRIBUTES
While selecting a celebrity as endorser, the company has to Decide the promotional
objective 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.
The most important attribute for a celebrity endorser is the trustworthiness. 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 likeability. The celebrity also must be
accepted as a popular icon by a large cross-section of the audience.
Similarity
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. If
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, expertise is also believed to be another important attribute. Definition of
Celebrity Endorsement According to Friedman & Friedman 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 Coco-Cola advertisement; actor Amir Khan
is the celebrity endorser for the product or brand called Coke, and this process is referred
to as Celebrity Endorsement. Celebrities might endorse as brand ambassador or a brand
face.
Difference between Brand Ambassador & Brand Face A Brand Ambassador would be
one who is not only a spokesperson for the brand or is just appearing as a testimonial for
the brand’s benefits. He/she is an integral part of the brand persona and helps to build an
emotional, which goes beyond just appearing on TV commercials.
He takes up the cause of a Brand Champion and is associated with every aspect related
with the brand. What is more, there is a significant difference between making just an
endorsement for say, shampoo or an automobile, and being that brand’s alter .Both
parties take the latter far more seriously to the deal. So a brand ambassador would be
involved in press releases, he/she would be actively participating in any sales promotion,
sporting the Brand all the while. For example, Far en Khan is the brand ambassador for
Prorogue while he remains a brand face for Lox Body Wash.
On the other hand, a Brand Face would be the current celebrity who is just used as a tool
to increase brand recall and is only appearing in the advertisement. It is usually seen that
a brand face is a temporary contract and is very short term at times. An example would be
Sonar Chandi Chawanpryash using Sourav Ganguly for a while in its commercials. Brand
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. Hema Malini for B.J.P. , Govinda for Congress ,Amitabh Bachchan for S.P..When
actor Shah Rukh Khan endorses santro- Zip drive; the consumers are made to think that
he is giving his opinion the go for this car, Similarly ,acress Rani Mukherjee has turned
the tables for Bata's ladies footwear brand called Sundrop as sales increased by a
whooping 500%.
Celebrity endorsements are impelled by virtue of the following motives:-
Instant Brand Awareness and Recall
Celebrity values define ,and refresh the brand image
Celebrity adds new dimensions to the brand image
Instant credibility or aspiration PR coverage Lack of ideas Convincing clients
WHY COMPANIES USE CELEBRITIES - THE CELEBRITY EDGE
Psychological Factors: Celebrities generally satisfy the esteem needs' of an individual.
For example a movie actress is expected to possess a flawless skin and a blemish free
face. Her fans want to know the
secret of her beauty, so she becomes a natural endorser for beauty related products
(cosmetics, soaps ,powder).
propping
Up Awareness and Trust Levels: Rahul dravid - bob
To Communicate a Certain Message about the Company: -Sachin Tendulkar as brand
ambassador gave it the desired facelift And image for the launch of 'Victor'
Celebrity Standing for a Single Brand: Think Zakir Hussain and you are reminded of
'Wah Taj' Taj Mahal tea. Ditto with A. R. Rahman for Airtel.
SCOPE OF CELEBRITY ENDORSEMENT
The use of testimonials by advertisers dates back to the 19 the century when medicines
were patented. Firms have been juxtaposing their brands and themselves with celebrity
endorsers(e.g., athletes, actors) in the hope that celebrities may boost effectiveness of
their marketing and/or corporate communication attempts for at least a century. One of
the early example is Queen Victoria’s endorsement of Cadbury’s Cocoa (Sherman,
1985). It was not until the 1920s, however, that advertisers used famous people for
product endorsements.
Actresses Joan Crawford, Clara Bow and Janet Gaynor were among the first celebrities to
promote products (Fox, 1984). At that time, the rationale given by advertising agencies
for u sing celebrities was “the spirit of emulation” (Fox, 1984, p.90). About a decade ago,
one in three television commercials used celebrities’ endorsements (Business Week,
1978), and today this advertising approach appeared to be on the increase across all
media types(Sherman, 1985 and Levin, 1988).
Friedman (1977) found that celebrities are featured in 15 percent of the prime-time
television commercials. In the United States, it was reported that about 20%of all
television commercials feature a famous person, and about10% of the dollars spent on
television advertising are used in celebrity endorsement advertisements (Advertising Age,
1987;Sherman, 1985). Thus, celebrity endorsement has become a prevalent form of
advertising in United States and elsewhere.
Today, the use of celebrity advertising for companies has becomes trend and a perceived
winning formula of corporate image building and product marketing (Media, July-August
1997). This phenomenon is reflected by the recent market research findings that 8 out of
10 TV commercials scoring the highest recall are those with celebrities' appearances.
Celebrity Endorsement in India
Phase 1: The Pioneering Phase (1950-1980 this phase was characterized by: -1. Limited
channels of communication2. Demand exceeded supply3. Heavy regulation and
governmental regulations some bigger companies from their global experience
introduced the concept of celebrity endorsement. HLL has used Hindi film stars to
endorse their beauty soap Lux since the fifties.
Phase 2: The Growth Phase (1980-1990) the introduction of television added a variable
effective medium of communication. Indian stars going global with events like Asia sand
World Cup victory. Vimal, Thums-Up, Gwalior and Dinesh aresome 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 (Prestige Pressure-cooker), Jalal Agha (Pan
ParagPan-masaala), Kapil Dev (Palmolive Shaving Cream) and SunilGavaskar (Dinesh
Suitings).
Phase 3: Globalization In highly competitive markets, the following realities about brand
management exist: -1. Product differentiating factors are duplicable and imitable.2. All
long existing and successful brands imbue their products with a meaning.
IMPACT OF CELEBRITY ENDORSEMENT
The increasing number of endorsements throws a valid question to the consumers. Is
there a science behind the choice of these endorsers or is it just by the popularity
measurement? What are the reasons which lead to impact of celebrity endorsement on
brands?
Through research and analysis, this paper develops a 14 point model, which can be used
as a blueprint criterion which can be used by brand managers for selecting celebrities,
and capitalizes the celebrity resource through 360 degree brand communication, since our
research proposes it as the foundation brick of the impact of celebrity endorsement. Our
study reveals that the impact of celebrity endorsement is proportional to the 14 factors
discussed in the model.
The success of a brand through celebrity endorsement is accumulative of the following
14 attributes. Greater the score of the below parameters, greater are the chances of getting
close to the desired impact.
Fit with the Advertising Idea
One of the most successful celebrity endorsement campaigns which reflect the fit
between the brand and the 360 degree advertising fit is Fardeen Khan and Provogue.
Prologue’ s positioning in the apparel market is of a young, active, party-going, attention-
grabbing brand and so is Fardeen Khan. The conjunction between the two has been
immensely impactful and brand managers have utilized this endorsement through 360
degree reinforcement.
Celebrity-Target Audience Match
Smriti Irani endorsing the WHO recommended ORS Campaign in India. Indian mothers
can associate with Smriti Irani through the facets she projects on screen or in regular life
which helps develop connect with the target audience since mothers medicate their
children with ORS.
Celebrity Values
Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness,
Amitabh Bachchan & Shahrukh Khancampaigning for Pulse Polio or Aishwarya Rai
appearing in the Donate Eyes campaign are few examples, which reflect the transfer of
celebrity values to the brand, creating an impact that generates recall.
Costs of Acquiring the Celebrity
Recently, 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 exactly how Much
celebrities get paid, industry sources say Sachin Tendulkar’s price is believed to be
between Rs. 2.0-2.5 cores per endorsement, And musician A. R. Rehman, who had
signed up with AirTel, is believed to have picked up Rs. 1.75 cores. Film-star
HrithikRoshan was rumored to have picked up Rs. 2 cores for the Fly With Hrithik
campaign to push Close-Up, and Shahrukh Khan’s rate seems to be between Rs. 2.5-3.0
cores. Aishwarya Raiapparently picks up Rs. 1.25 cores for an endorsement and the
Indian cricket captain Saurav Ganguly is believed to get between Rs. 90 lakh to Rs. 1.5
cores, while film-star Aamir Khan apparently makes Rs. 1.5 cores per endorsement.
Celebrity Regional Appeal Factors
R. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India
are few examples of how celebrities are chosen to reach out to target audiences for brands
in regional markets.
Celebrity-Product Match
Cyrus Broach is the brand ambassador for MTV since both the celebrity and the brand
are considered as friendly, young, mood-boosting, humorous and outspoken. MTV’s
brand personality overlaps Cyrus Broacha ’s image as a brand.
Some more examples of compatible celebrity product match in which celebrity brand
attributes get transferred to the brand and increases the brand equity is of Govinda &
Navratan Tel, Aishwarya Rai & Nakshatra, etc.
Celebrity Controversy Risk
The perfect example here is of Salman Khan and the controversy in which he crushed a
man to death with his Pajero 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.
Celebrity Popularity
Celebrity Brand association like Grainer endorsed Tara Sharma &Simone Singh, Agni
Diamonds & Riama Sen don’t get much brander call, and even If they do, its difficult to
attribute it to the celebrities’ endorsing the brand .On the other hand, HPCL has had
increased popularity and share of voice due to the endorsement of the brand through
Sania Mirza.
Celebrity Availability
In 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.
Celebrity Physical Attractiveness
John Abraham endorsing Wrangler and Timex Sunglasses are some examples which
portray the celebrities’ physical attractiveness that helps create an impact.
Celebrity Credibility
The most important aspect and reason for celebrity endorsement is credibility. In a
research carried out among 43 ad agencies And companies, most experts believed that the
most important dimensions of credibility are trustworthiness and prowess or expertise
with regard to the recommended product or service. One of the most obvious reasons of
Amitabh Bachchan 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 Cadbury’s. After the worm controversy,Amitab Bachchan’s credibility infused into the
brand through the campaign, helping it to get back on track. The campaign has woman
award for the same.
Multiple Endorsements
Not 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. For example, in
case of Sachin Tendulkar people recall Pepsi, TVS Victor and MRF, but might not
remember brands like Britannia and Fiat. Similarly, for Amitabh Bachchan, consumers
remember ICICI, Pepsi, Parker Pens, Pulse Polio and BPL. They might get confused in
the endorsement of Nicola 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.
Whether Celebrity is a Brand User
Various celebrities endorse NGOs and social causes since they believe in the social
message that they need to convey to the audience. One of the most successful campaigns
has been executed by PETA in which celebrities like Shilpa Shetty, Amisha Patel, Yana
Gupta, Sheetal Malhar, Mahima Choudhary claimed to believe in PETA’s philosophy,
and thereby endorse the brand.
THE PROCESS OF CELEBRITY ENDORSEMENT
The process of celebrity endorsement is more of meaning translation & meaning
application. A deeper insight into this complex process is provided by the following
theory.
The Meaning Transfer Model
McCracken, 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. It 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. Culture The celebrities deliver meanings with
extra subtlety, depth and power than anonymous models. Celebrities 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.
Celebrities 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 Zinta, for example, isperceived
as a fun-loving, vivacious and modern Indian woman.
Endorsements
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. Finally, 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. Consumption Consumers constantly search for the
object world which gives them access to workable ideas of demography, personality,
lifestyle and culture. McCracken suggests that this stage of the model is most complex, as
consumers must claim, exchange, care for and use the consumer goods to appropriate its
meanings. Celebrities play a major role in this stage as they have created their
own self, which makes them exemplary and inspirational figure to the consumers.
Consumers try to emulate the celebrities admired by them and try to find out the meaning
in the similar fashion. Celebrities bring the dramatic roles, fashioning cultural meanings
into a practicable form.
In 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.
“If commerce is the engine of our economy, then advertising is the spark. Responsible
advertisers are the drivers who keep us on the right track, leading to a richer, more
benevolent society,"
RISKS ASSOCIATED WITH CELEBRITY ENDORSEMENT
The concept of “Total Branding” is slowly emerging and many companies are focusing
on that. They are emphasizing on their best practices, customer relationship management,
and employee training and knowledge management. Internal 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.
Besides, while designing an ad campaign, one should also keep in mind that the overuse
of some extremely 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 follows: -
Negative publicity -
If the celebrity is strongly associated with the brand then the occurrence of the negative
publicity can spill over the brand.. E.g., Salman Khan lost his endorsement deal with
Thumbs Up after his infamous incidents like buck killing and rash driving.
Overshadowing -
When celebrity endorser is used, the risk of consumers focusing on the celebrity and not
on the brand exists.•
Overexposure -
This risk arises when the celebrity chooses to endorse several different products
simultaneously which might leave the consumers confused. E.g., Sachin Tendulkar
endorses several brands such as MRF, TVS Victor, Pepsi, Fiat, Boost, etc.
Overuse -
Sometimes the company can use many different celebrities to appeal to different market
segment. But multiplicity of endorser might blur the image.•
Extinction -
The favorable response obtained by a particular brand may weaken over time if the brand
gets significant exposure without the association of the celebrity. If the celebrity contract
is for a considerable period of time, then it can lead to draining out capital without proper
return.
Financial Risk -
The decision for hiring an expensive endorser may not be always feasible if there is a
poor brand fit. Therefore, for celebrity endorsements to work effectively there are some
fundamental ground rules: -
Clear brand promise and brand personality.
1 . The communication objectives for the campaign should be frozen.
2. Focus must be on the synergy between the brand and the celebrity image
3. Establish explicitly what the celebrity is going to communicate
CELEBRITY SELECTION
There are various scientific ways in which the right celebrity Is selected for the product
endorsement, which are discussed hereafter Stereotyping Tell is 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. For example:
its better to select celebrities who say are teens for chocolate advertisements and females
for detergent ads, etc.
The TEARS Model
The attributes highlighted by the acronym “TEARS” are gauged for celebrity selection.
These are: -•
Trustworthiness:
For example - Legendary actor Amitabh Bachchan who is an icon of trust; promoting
ICICI Bank.•
Expertise: For example - Golfer Tiger Woods for a sports brand.•
Attractiveness: For example - Tennis player Anna Kourni kovawho earns 10 Million
dollars per year in just endorsement.•
Respect: For example - Former Miss World Aishawarya Rai andthe Eye donation
campaign.•
Similarity: For example - 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
question.
The No TEARS Model
The “No TEARS” 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. It gauges
the following information: -
•Celebrity & audience match up,
•Celebrity & brand match up,
•Celebrity credibility,
•Celebrity attractiveness,
•Cost consideration,
•A working ease and difficulty factor,
•An endorsement saturation factor,
•A likelihood-of-getting-into-trouble factor
Selecting the right celebrity does more than increasing sales; it Can create linkages with
the celebrities’ appeal, thereby adding New dimension to the brand image. Research
conducted by Katherine Eckel 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 India can be sought from a market research
conducted earlier which found that 8 out of 10TV commercials scored the highest recall
were those with Celebrity appearances. A few examples: Sachin Tendulkar - Adidas,
Sourav Ganguly - Britannia, Leander Paes & Mahesh Bhupati - J.Hampstead, Shah Rukh
Khan - Pepsi, Sushmita Sen - Epson, and Aishwarya Rai - Coke.
CELEBRITY ENDRSEMENT: THE ISSUES INVOLVED
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 analyze the
prospect of endorsement from 360 degrees, prior to product promotion. Price vs. Profit
The most important issue is that of return on investment (ROI).Companies 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 expect
to bring, in the long run, future sales, revenues and profit from the present investments on
celebrity endorsement. Celebrity endorsement is an expensive means of brand promotion
and the price burden almost always shifts on to the consumers; if not, Then it narrows the
companies’ profit. Multiple Brand Endorsement vs. Multiple Celebrity Endorsement
In the advertising landscape, we find either a celebrity endorsing multiple brands or
multiple celebrities being used to endorse a single brand.
Sachin Tendulkar, for example, in 2002 endorsed 12 brands(including Pepsi, Boost,
Colgate Total, Gillette, Britannia Tiger, Fiat Palio, TVS Victor, Fiat Sienna, MRF,
Adidas, Visa Cards and Home Trade).
Tripp et al, says that the endorsement of as many as four products negatively influences
the celebrity spokes person’s credibility and likeability.
The action plan should be able to answer the following key questions:
1. Are the celebrity endorsements programs result driven?
2. How to quantify the value generated by the celebrity endorsements?
3. Are customers able to connect the brand with the celebrity?
One can gauge the performance of celebrity endorsement marketing program across the
various stages of development. We have attempted to prepare a framework to build a
more effective celebrity endorsement program
1. Align Celebrity Endorsement With Business Objectives.
The attributes of the celebrity should be intrinsically valuable And aligned with the
product, brand and company. suggests strategies to be adopted by a company depending
on its Brand positioning and the brand fit with the celebrity.
• If 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 there call value is likely to be very low; defeating the entire purpose of
signing the celebrity. This is what happened when Good lass Nicola Paints roped in
Amitabh Bachchan as their brand ambassador.
• When 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 (Refer Annexure 1) with Amitabh Bachchan showed low brand-celebrity
fit.
• When 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 objectives and
primary customer segment. The Narain Karthikeyan - J K Tyres relationship works well
in this category.
• In the ideal quadrant 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 ”. In
case of Coke, the brand has firmly established the "thane" position in the minds of the
consumer, with Aamir khan playing the per fact role.
By situating potential celebrity on the matrix, 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.
2. Measure and Quantify Performance 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 explained further in
Figure 4. The endorsement costs are primarily driven by the endorsement fees and
promotion outlays .The benefits that accrue from such a relationship can be categorized
into two components: -
• Value of Hard Assets: The benefits derived from the hard assets are those that have a
clear market value such as increased sales and increase in brand equity. These are the
tangible benefits that a company derives from its endorsement strategy.
• Value of Association:
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 quantify the potential value of hard assets and
association value against their impact on company’s celebrity endorsement by looking at
the following categories: -
• Incremental Sales: Companies can quantify the effect of the celebrity programs on
sales by performing year-to-year or quarter-to-quarter sales comparisons for targeted
consumers, geographic regions, or specific product lines. Primary research can also bed
one to reveal the impact of the celebrity on target customer’s propensity to purchase.
• Brand Recognition: One of the objectives of celebrity endorsement is to increase
brand awareness. However, the companies use popular, though incorrect, survey
approach by asking the respondent which celebrity endorsed their brand. Instead, they
should ask the respondent the brands associated with the celebrity. By gauging the top-of-
mind recall can enable the company to find out if a connection is made between the brand
and celebrity.
• Customer Loyalty: Customer churn can be measured in fixed 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.
3. Selection and Renewal of Contract With Celebrities 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. Value 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-examining(and altering, if
needed) 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
existing contracts. A large extent of this can be successful if the company can develop
and execute 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 include:
• Understand the Competition of Celebrity: Except for few venerable celebrities; most
of the celebrities quote their price in expectation of negotiation. The company should
benchmark the contractual fees and benefits against that of comparable celebrities to
ensure the package is equivalent.
• Understand ‘Celebrity’ Clutter: 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 required 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.
• Include Value-in-Kind Payments: Companies 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.
• Protection Against Ambush Marketing :- Ambush marketing (or adjacent
marketing) is the reality of the day and the marketing managers need to be creative to
stay one step ahead of the competition. For instance, Amitabh Bachchan was shown
drinking Thumbs-Up in the hindi movie Kaante , when he is actually brand ambassador
for Pepsi.
WHY CELEBRITY ENDORSEMENT FAILS?
There may be cases where brands are not able to take-off even after the backing of
celebrities. And this leads to speculations in the Ad World on the soundness of celebrity
endorsement as an effective communication strategy.
Negative impacts of Celebrity Endorsement on the brand A popular drawback of
celebrity endorsement is the 'Vampire Effect' or the celebrity overshadowing the brand.
Some viewers forget the brand that a celebrity is approving. Others 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 Celebrity
Trap and Celebrity Credibility. Celebrity 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. Celebrity 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.
The Reasons
According to leading management thinker, Dr. 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.
The success of celebrity endorsement also depends upon the capacity, knowledge,
experience, and qualification to talk about the product. Failure may be attributed to
improper positioning (Example: Amitabh Bachchan, Abhishek Bachchan & Maruti
Versa), negative perception after use of product / service (inferior products),
misapprehension of the meaning of the endorsement ,etc.
“The philosophy behind much advertising is based on the old observation that every man
is really two men - the man he is and the man he wants to be.”
- William Feather
The Solutions
As discussed, celebrity management is very crucial to avoid the brand-celebrity
disconnect, and subsequently, brand failures. If the consumers have questions in their
minds regarding the quality or performance of the product then even God 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. For Example: Pepsi while capitalizing on the popularity of cricket and
films in India used several cricketers and film stars in their ads. so when Azharuddin and
jadeja got embroiled in the match fixing controversy Pepsi severed its association only
with these stars, but its relationship with cricket continued.
The Symbiotic Model
The success of celebrity endorsement also depends upon the capacity, knowledge,
experience, and qualification to talk about the product. Failure may be attributed to
improper positioning(Example: Amitabh Bachchan, Abhishek Bachchan & MarutiVersa),
negative perception after use of product / service (inferior products), misapprehension of
the meaning of the endorsement ,etc.
“The philosophy behind much advertising is based on the old observation that every man
is really two men - the man he is and the man he wants to be.”
- William Feather
The Solutions
As discussed, celebrity management is very crucial to avoid the brand-celebrity
disconnect, and subsequently, brand failures. If the consumers have questions in their
minds regarding the quality or performance of the product then even God 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. For Example: Pepsi while capitalizing on the
• Mutualism (M):Both help each other (Example: Tata and Narayan Karitiken ,Amir
Khan and Titan)
• Commensalism (C1):Only one among them is benefited(Example: A failed
endorsement)
• Parasitism (P):One is benefited; other is harmed (Example : Azharuddin and Pepsi Also
Home Trade & Shah Rukh Khan, Sachin Tendulkar)
•Neutralism (N):None of them benefited or harmed(Example: Amitabh Bachchan,
Abhishek Bachchan and MarutiVersa)
•Amensalism (A):Only one of them is harmed; other unaffected
•Competition (C2) :Both are harmed
IMPACT-ANALYSIS FRAMEWORK
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 (e.g.
personality, values, standards) attached to celebrities. Besides these factors,
environmental factors, regulative issues and compatibility with overall marketing strategy
also influence the impact of the endorser .We focus our study on the following
categories .
1. The targeted consumer
2. The celebrity endorser
3. The product None of these factors can independently achieve a positive impact on the
consumer; hence there exists 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 –
1. Market Environment
2. Overall Marketing strategy
A. Factors
I. Product Not every brand can and should be endorsed by celebrities. The brand’s image,
personality & the buying involvement of the Research has proved that consumers would
react more favorably to celebrity endorsers as against experts or typical - consumer
endorser in products which are high on psychological and / or social risk. The celebrity
creates a positive image and 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. Furthermore, products with high financial, performance or physical risk
such as mutual funds, medical equipments, are evaluated more favorably when endorsed
by a professional expert rather than by a celebrity. For products which are low in all five
types of risk, typical consumer - endorsers are most effective since the consumers can
relate to the character (Hershey H. Friedman and Linda Friedman).
II. Endorser
An Endorser can be defined as, “Any individual who enjoys public recognition and who
uses this recognition on behalf of a consumer good by appearing with it in an
advertisement”. The following inherent qualities in the endorser usually impacts the
brand -
1. Credibility of image / Trustworthiness (Honesty, Integrity , Believability)
2. Competence / Expertise (in relation to the product)
3. Dynamism
4. Likeability
5. Attractiveness
Impact of Celebrity on the Brand
Plethora of research has tried to explore the effects that a celebrity exhibits. Celebrity
endorsements: -
- Creates and helps in retaining attention of the target ed audience.
- Achieves high brand recall in an environment with multitude of product
- Transfers of qualities associated with the celebrity to the product.
Perceived as entertaining .
Portrays trustworthiness due to lack of apparent interest
III. Consumer
Consumer is the factor being wooed by the company/product using the endorser. Hence,
both the product & the endorser need to meet the expectations of the consumer, thus
making it critical to understand consumer reactions to a given stimulus and product
category in differing circumstances.
B. Interactions
I. Consumer - Endorser (C-E Interaction)
- Sudden change of the celebrity image
- Drop in popularity of the celebrity
- Loss of credibility due to over-endorsing
- Disappearance of celebrity out of media flashlight
II. Brand - Endorser (B-E Interaction)
Every 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. Worse, in
some cases it might even lead to association of the celebrity with the competitors brand
(e.g., Nerolac Paints where Amitabh Bachchan being a brand endorser of Nerolac paint
was perceived to be associated with Asian Paints).
Is Celebrity Endorsement Always the Best Method for Promoting a Brand?
Companies 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 strategy: -
•Control: Companies 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.
Unlike in case of celebrities where the celebrity’s persona both present and past have
been created over the years.
Single utilization of created endorsers
: Such spokes persons are exclusive for a brand and hence avoiding any brand conflict.
• Association over a long time period
: The spokes person creates a permanent image by a long and steady association.
•
Focus more on brand and its features
: In Non-Celebrity advertisements the main focus is on the brand and its characteristics
while in celebrity the focus sometimes shifts entirelyto the celebrity’s features and their
aura & hence the medium failsin carrying the main message across.Examples of such
endorsement are Gattu - Asian Paints, Fido-Dido - 7Up, Hutch - Boy
C. Influencers
I. Market Environment
It indirectly impacts the effectiveness of a campaign. Celebrity campaigns create
stronger impact in saturated markets as products lack differentiation and clutter is huge.
E.g., Indian soft drink industry heavily depends on celebrity endorsement for promotion.
II. Marketing Strategy
Both single celebrity endorsing multiple products and multiple celebrities endorsing
single product at the same time reduce association of product and celebrity and reduces
impact (e.g.,Pepsi - where multiple celebrities are endorsing the product at the same time
which takes the brand away from getting associated/dependent on any celebrity. Hence,
impact is also influenced by the marketing strategy followed by the company.
III. Regulative Issues
It indirectly impacts the effectiveness of a campaign. Celebrity campaigns create stronger
impact in saturated markets as products lack differentiation and clutter is huge. E.g.,
Indian soft drink industry heavily depends on celebrity endorsement for promotion.
KINDS OF CELEBRITY HOOD THEIR IMPACT ON BRANDS
1.Product Placements
While the movie 'Taal' brandished Coke bottles unabashedly,
2.celebrities Co Owning the Brand
Madhuri Dixit and Emami 'Beauty secrets by Madhuri' range
3.Fictional Heroes
Shaktimaan has sold Parle-G, and Popeye single-handedlyrevived the consumption of
spinach in the US.
(4) No More but Celebrities Still
Campaigns created around a dead personality was the 'Kar lo duniyamuthi mein'
campaign for Reliance featuring Dhirubhai Ambani
(5) Page 3 Celebrities(6) Celebrities for a Cause
The Pulse Polio campaign being coordinated by UNICEF for the Ministryof Health and
Family Welfare had Amitabh Bachchan and SachinTendulkar
(7) Spoofing
Mirinda spoofed the Hutch puppy (a celebrity in its own right).
(8) Mascots
Ronald McDonald, the Amul girl
(9) Men are from Mars, Women from Venus John Abraham lends his rugged image to
Yamaha bikes while PrietyZinta lends her cute dimples to peddle Scooty.
(10) Celebrities Lending their Name to Brands
Sharukh Khan, Amitabh Bachchan and Rekha have perfumes named after them
(11) Company Owners Being Celebrities
Vijay Mallaya and Richard Branson who are walking talking celebritiesand endorse their
own brands through their extravagance, their flamboyant lifestyle
(12) Political Leaders
The 'India Shining' campaign from the BJP and the 'Congress ka haathaam aadmi ke
saath' campaign from the Congress with Vajpayee and Sonia Gandhi lending their faces
(13) Using a Social Proposition Built Within the Brand
The Surf campaign done by Revathy and Shabana Azmi (in thesouth and north
respectively) which stressed on the prudent usage of valuable water was a social
proposition cleverly inter-woven in the brand.
(14) Duration of Usage - Promotional or Long Term Strategy
Short-term example is the Rani Mukherjee campaign for Bata which is believed to have
helped boost sales for the ladie's footwear brand, Sundrop, by a whopping 500 per cent.
The same Rani Mukherjee has a longer association with Fanta and Munch.
(15) Stealth Advertising
Since a cynical public no longer believes that celebrities actually use the products they
endorse in commercials. Revlon launched an online marketing campaign targeting female
customers via chat rooms talking about who Revlon's new face would be. Consequently
the announcement of Halle Berry as Revlon's new face was met with great anticipation.
(16) Foreign Celebrities
Jackie Chan doing a Discover commercial or a Boris Becker doing a Siyaram commercial
(17) Unintentional Celebrity Endorsements
The year before the late Princess Diana bought an Audi, they sold just about five hundred
pieces in the UK. The following year sales figures were close to ten thousand mark. John
Abraham haybusa.
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: -
Celebrity Positioning Matrix , which gives the popularity and image details of a
personality in the market
Product Positioning Matrix , which is the direct consequence of the brands competitive
strategy
Area Correlation Matrix , which is the overall measure of match of brand and celebrity
These two matrices are used to develop two variables: -
Celebrity Effectiveness Index
Total Area Correlation Score The two variables can be used to decide on the
appropriate celebrity for the brand. The model also helps in minimizing the cost with
optimization of effect. The study is done in two stages, exploratory research involving
personal interviews and focused group discussion followed by primary data collection
and analysis.
Model Development
For the purpose of our study, we divided all companies and brands into twelve categories
mentioned below: -
1. Creator / Innovator: Products or personalities famous fordisruptive, architectural,
modular or incremental innovations ,e.g., White Goods
2. Caregiver: Personalities or products which give the perceived benefit of security and
care, e.g., Insurance Companies
3. Jester: Personalities or products positioned for fun and frivolous activities, e.g., Wafers
4. Magician: Personalities or products which claim to produce results which are
unexpected, e.g., Hair oils for enhancing growth
5. Hero: Personalities or products that prompt courageously action, e.g., Red & White
Bravery Awards.
6. Ordinary Guy: Personalities or products that have slice of life execution format, e.g.,
Peter England
7. Lover: Personalities or products that claim tender care, e.g. ,Beauty Soaps
8. Innocent: Personalities or products that retain and renew faith, e.g., Johnson & Johnson
9. Sage: Personalities or products for guidance and opinion, e.g., Newspaper
10. Outlaw: Personalities or products that encourage to break the rules, e.g., Jeans
11. Explorer: Personalities or products that claim self enhancement through exploration,
e.g., Jeeps
12. Ruler: Personalities or products that show how to exert control, eg., Tires
Variables Developed Celebrity Effectiveness Index (CEI):
This is a parameter defined to evaluate the effectiveness of a personality to interact with
customer and create desired impact. It is the sum of average score of each archetype for a
personality.
Area Correlation Index of Brand and CEI:
This we have defined as the weighted product of corresponding arch types of brands and
celebrities.
HypothesisH1: A brand-celebrity area coefficient is positively related to audience brand-
celebrity connection.
The concepts developed can be used by celebrity clients for effective decision making.
The objective of a client can be described as follows: -To maximize area correlation of
the brand-celebrity rectangle subjected to: -
1. Minimum Costs
2.Minimum Risks The details of the variable in the above-mentioned objectivesare
described below: -Costs Associated:
1. Endorsement fees
2.Feature establishing costs
3.Feature enhancement costs
4. Feature sustaining costs Risks Associated:
1. Mismatch risk
2. Celebrity feature transition risk
3. Celebrity feature mortality risk The steps involved in testing of hypothesis are as
follows: -
Step 1:
Calculate CEI for celebrities and companies
Step 2:
Calculate area correlation matrix for the same
Step 3:
Compare the success of the campaign with the area correlation matrix
Methodology
Calculation of Celebrity Effective Index
Respondents were given a name of a celebrity and asked to rate the personality as against
the archetypes defined earlier. The sampling was convenience sampling and sample size
of hundred for each celebrity. Ten celebrities were selected for the purpose. The selection
was based on three distinct focused group discussions done with SEC A, B, C Category
of members with 10 members each. The top ten most frequent celebrities recalled or
recollected as brand ambassadors were chosen for the further studies.
Methodology
Primary survey was conducted to list down the brand against the above-mentioned ten
celebrities. The most frequent reply was recorded. The brands were then subjected to
arche type scoring, and area correlation was calculated. From secondary data, other
endorsees, if existing, were recorded and the process was repeated. For this other
endorsee, the least frequent or non-existing celebrity was selected from the list of CEI
calculation celebrities.
Research Methodology
To define any research problem and give a suitable solution for the problem a sound
research is inevitable. Research methodology underlines the various steps involved in the
particular research and systematically solving the problem with the objective of determining the
fact.
Research approach
The researcher adopted conclusive and descriptive to study service quality with special
reference
As the term suggests, conclusive research is meant to provide information that is useful in
reaching conclusions or decision making. The purpose of the conclusive research is to provide a
reliable or representative picture of the population with valid research instrument.
Descriptive research describes data and characteristics of the population being studied.
Descriptive research answers who, what, where, when, and how. The descriptive design deals
with facts and characteristics concerning with individual respondents.
Data Source:
Primary data:
The primary data was collected with the help of a structured, non disguised questionnaire.
The data collection was done by making the existing customers of kasaragod fill the
questionnaires .The researcher also used unstructured personal interview to gather information
required for the purpose of the study.
Secondary data:
The research relied upon many secondary sources for getting a clear picture of the
environment. Secondary sources were previous study reports, journals, magazines, newspapers,
books with a view to supplement the primary data. The wide scope of the World Wide Web was
used to collect the detailed information about the topic. The study of secondary sources made
the structuring of questionnaire easy.
Research Instrument used
In order to get relevant information from the customers, questionnaire was used as
research instrument .The questionnaire are design to get the specific information about the
specific problem so that the data after analysis and interpretation results in a better application of
the problem .Hence the questionnaire for this study is prepared in the form of structured both
closed ended and open ended consisting the series of formal questions to elicit clear relevant
responses from the respondents.
(a) Sampling plan
Sampling plan includes sampling units used in the survey. It also includes sampling size
and sampling procedure for the survey.
(b) Sample size
The sample size undertaken in this research study is 50.
(c) Sample units
Every single individual undertaken in the research study is called the sampling unit. In
this research study sampling unit is every single individual who gets his vehicle serviced
(d) Sampling procedures
The primary consideration in purposive sampling is judgement of researcher as to who
can provide the best information to achieve the objectives of the study. The researcher only goes
to those people who in his/her opinion are likely to have the required information and be willing
to share it. Here the researcher collecting the information through questionnaire.
(e) Contact Method
Direct contact method was used for the study was used this study. Questionnaires were
directly circulated to the respondents of the sample in order to achieve instant response.
Tools used for analysis
The following are the tools were used for the project.
Non parametric tests-Man- Whitney test, Kruskal- Wallis test.
Statistical tools like Mean rank.
The significance of the results was tested using non-parametric tests- Man-Whitney test,
Kruskal- Wallis test, with the help of the statistical software SPSS.
Results
Celebrity Effectiveness Index (CEI)
The ten celebrities and the survey results are as follows: -
1. Amitabh Bachchan : CEI = 55
Creator/innovator 2 Caregiver 8 Jester 3
Magician 6 Hero 8 Ordinary Guy 1
Lover 5` Innocent 3 Sage 8
Outlaw 1 Explorer 2 Ruler 8
2. Shan Rukh Khan: CEI = 54
3. Sachin Tendulkar : CEI =53
Creator/Innovator 3 Caregiver 4 Jester 6
Magician 3 Hero 8 Ordinary Guy 1
Lover 9 Innocent 3 Sage 3
Outlaw 1 Explorer 6 Ruler 7
4. Saurav Ganguly: CEI=42
5. Rahul Dravid: CEI=45
6. Hrithik Roshan: CEI= 50
Creator/Innovator 8 Caregiver 2 Jester 2
Magician 9 Hero 8 Ordinary Guy 1
Lover 1 Innocent 1 Sage 3
Outlaw 1 Explorer 8 Ruler 9
Creator/Innovator 6 Caregiver 5 Jester 2
Magician 3 Hero 7 Ordinary Guy 1
Lover 2 Innocent 2 Sage 2
Outlaw 1 Explorer 6 Ruler 5
Creator/Innovator 6 Caregiver 2 Jester 6
Magician 3 Hero 8 Ordinary Guy 1
Lover 6 Innocent 8 Sage 3
Outlaw 1 Explorer 4 Ruler 5
7.Aishwarya Rai: CEI=49
8. Kareena Kapoor: CEI=46
9. Saif Ali Khan: CEI=44
10. Preeti Zinta: CEI=49
Creator/Innovator 3 Caregiver 2 Jester 6
Magician 3 Hero 8 Ordinary Guy 1
Lover 6 Innocent 8 Sage 3
Outlaw 1 Explorer 4 Ruler 5
Creator/Innovator 3 Caregiver 8 Jester 2
Magician 3 Hero 7 Ordinary Guy 1
Lover 7 Innocent 9 Sage 3
Outlaw 1 Explorer 3 Ruler 2
Creator/Innovator 1 Caregiver 3 Jester 8
Magician 3 Hero 8 Ordinary Guy 1
Lover 7 Innocent 3 Sage 2
Outlaw 1 Explorer 6 Ruler 3
Creator/Innovator 3 Caregiver 3 Jester 9
Magician 3 Hero 6 Ordinary Guy 4
Lover 7 Innocent 2 Sage 2
Outlaw 1 Explorer 2 Ruler 2
Thus, CEI caluculation was made for the celebrities. The CEI is quantitative meansure
of:-
1.Popularity
2. Image and positioning
Brand Positioning Index for Brands
Polio Eradication Campaign:
Santro:
Creator/Innovator 2 Caregiver 8 Jester 8
Magician 2 Hero 6 Ordinary Guy 1
Lover 7 Innocent 9 Sage 1
Outlaw 1 Explorer 2 Ruler 2
Creator/Innovator 1 Caregiver 10 Jester 1
Magician 1 Hero 1 Ordinary Guy 1
Lover 6 Innocent 1 Sage 10
Outlaw 1 Explorer 1 Ruler 1
TVS Victor:
Sona Chandi CHavanprash:
Hutch:
Tamarind (S.Kumar’s):
Creator/Innovator 6 Caregiver 5 Jester 6
Magician 1 Hero 6 Ordinary Guy 1
Lover 6 Innocent 1 Sage 2
Outlaw 1 Explorer 4 Ruler 7
Creator/Innovator 6 Caregiver 4 Jester 3
Magician 4 Hero 6 Ordinary Guy 1
Lover 2 Innocent 1 Sage 2
Outlaw 1 Explorer 6 Ruler 6
Creator/Innovator 4 Caregiver 8 Jester 2
Magician 4 Hero 6 Ordinary Guy 1
Lover 2 Innocent 1 Sage 5
Outlaw 1 Explorer 2 Ruler 3
Creator/Innovator 7 Caregiver 3 Jester
Magician 2 Hero 4 Ordinary Guy 1
Lover 6 Innocent 1 Sage 1
Outlaw 2 Explorer 1 Ruler 1
Nakshatra:
Airtel:
Ruffle Lays:
Creator/Innovator 7 Caregiver 2 Jester 6
Magician 2 Hero 8 Ordinary Guy 1
Lover 6 Innocent 1 Sage 1
Outlaw 1 Explorer 1 Ruler 1
Creator/Innovator 3 Caregiver 2 Jester 1
Magician 2 Hero 8 Ordinary Guy 1
Lover 8 Innocent 1 Sage 2
Outlaw 1 Explorer 7 Ruler 2
Creator/Innovator 3 Caregiver 3 Jester 8
Magician 2 Hero 8 Ordinary Guy 1
Lover 7 Innocent 1 Sage 1
Outlaw 1 Explorer 7 Ruler 1
Pepsi:
Thus , the calculation is analogous to CEI but is for companies or products. The outcome
is the direct reflection of company’s positioning strategy.
Alternate Celerity CEI calculation:
1. Brett Lee: CEI =45
2. Mohammed Kaif: CEI=35
Creator/Innovator 2 Caregiver 2 Jester 8
Magician 1 Hero 2 Ordinary Guy 5
Lover 8 Innocent 1 Sage 1
Outlaw 1 Explorer 1 Ruler 1
Creator/Innovator 7 Caregiver 2 Jester 6
Magician 1 Hero 8 Ordinary Guy 1
Lover 6 Innocent 1 Sage 1
Outlaw 1 Explorer 1 Ruler 1
Creator/Innovator 6 Caregiver 2 Jester 7
Magician 6 Hero 4 Ordinary Guy 5
Lover 1 Innocent 1 Sage 2
Outlaw 1 Explorer 6 Ruler 4
Creator/Innovator 2 Caregiver 2 Jester 9
Magician 2 Hero 3 Ordinary Guy 8
Lover 1 Innocent 6 Sage 1
Outlaw 1 Explorer 2 Ruler 2
3. Katreena Kaif: CEI=35
4. A.R. Rehman: CEI=38
5. Nawab Pataudi: CEI=31
6. Yuvraj Sing : CEI=37
Creator/Innovator 1 Caregiver 1 Jester 9
Magician 4 Hero Ordinary Guy 1
Lover 1 Innocent 1 Sage 1
Outlaw 1 Explorer 8 Ruler 1
Creator/Innovator 8 Caregiver 2 Jester 1
Magician 9 Hero 2 Ordinary Guy 1
Lover 2 Innocent 2 Sage 1
Outlaw 1 Explorer 8 Ruler 1
Creator/Innovator 7 Caregiver 1 Jester 1
Magician 8 Hero 5 Ordinary Guy 1
Lover 2 Innocent 1 Sage 2
Outlaw 1 Explorer 1 Ruler 1
Calculation of Area Correlation
The Corresponding cells of brand and celebrity are multiplied to calculate what we term
as Brand Celebrity Area Correlation
The following table shows the results of above mentioned ten brands:-
Brand Success Celebrity Failure Celebrity
Polio 224 162
Santro 263 215
TVS Victor 277 186
Sona Chandi Chawanprash 177 92
Hutch 200 -
Tamarind 186 -
Nakshatra 234 100
Airtel 247 148
Lays 190 70
Pepsi 186 155
Creator/Innovator 6 Caregiver 2 Jester 6
Magician 1 Hero 6 Ordinary Guy 1
Lover 2 Innocent 1 Sage 1
Outlaw 3 Explorer 6 Ruler 1
We term the Celebrity With maximum Recall as successful celebrity and with minimum
recall as failure celebrity.
Conclusions & Recommendations of survey
The test of Hypothesis 1 shows that it is 100% accepted for the ten cases presented. Thus,
we can say that area correlation matrix is a good predictor of success of a campaign.
Moreover, the CEI is also a good predictor of popularity of the celebrity. Brands
generally will have lower CEI than Personalities 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 CEI
2. The popularity of the campaign is a function of area correlation matrix
3. If the right match is found between the brand and celebrity, popularity of the campaign
can be optimized
4. The cost of the campaign can be reduced by involving celebrities with high polarized
archetype value which matches with the brand
Limitations
The CEI and area correlation are highly time dependent. The image and archetype of a
personality is often volatile and may change with time. The use of the method involves:-
1. Repeated surveys for CEI calculations.
2. Keeping track of celebrity activities.
3. Continuous search for new and emerging celebrities.
Brand Celebrity Unaided
Association
Compatibility
Index
Trait Fit
Index
Thusms-up Salman khan 93 93 100
Coke Hrithik roshan 93 100 50
Adidas Sachin 73 85 25
Samsung Tabu 54 68 25
Table.1
Aspect of brand Images Celebrity Product
Attractiveness Elegance Renuka Shahane Whisper
Beauty Madhuri Dixit Emami
Classy Saif & TIger Asian
Pataudi Paints-Royale
Stylish Fardeen khan
Amitabh bachhan
Provogu
Reid & Taylor
Trustworthiness Honest
Reliable
Tarun Tejpal
Sachin Tejpal
Tehelka
Expertise Knowledge
Qualified
Sachin & Sehwag
Naina Balsavar
Shampoo
PataudiPaints-RoyaleStylishFardeen Khan ProvogueAmitabhBachhanReid
&TaylorTrustworthinessHonest Tarun Tejpal
TehelkaReliableSachinTendulkarTVSVictorExpertiseKnowledgeSachin
&SehwagReebokQualified Naina Balsavar Shampoo concerns, and then assuring
consumers that his doubts had beensatisfactorily laid to rest (after the factory visit).This
reinstatedcustomer faith in Cadbury and sales have now touched pre-wormcrisis days.
Situation 2:
Asian Paints will always be remembered for its 'Merawallah cream' campaign and more
recently the 'Wah Sunil babu'campaign. There have been very forgettable
celebrityendorsements from Akshaye Khanna and Saif Ali Khan in the past(probably
people were not able to visualize stars painting their ownwalls). This is a case of a
company whose non-celebritycommercials have done way better than their celebrity
campaignsin terms of recall and message delivery.
Cases
1. Sharukh Khan - Mayur Suitings
(Positive Impact)”Sharukh Mayur Khan” 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 sureway to reflect the aspiration. The ad shows a great fit
betweenwhat the product stands for, what the consumer expects and whatthe celebrity
means to the consumer, hence explaining the strongimpact in sales and brand recall.
2. Dharmendra - Rajdoot Motorcycles
(Positive Impact)This strong man from yester years, still resonates as the onlybrand
ambassador, who managed to sell a motorcycle in each andevery corner of India in the
80’s. Dharmendra’s image of being abrawny man, hailing from the rustic roots of India,
gave Rajdoot motorcycles the perfect brand ambassador it was looking for. Henot only
gave to the product a sturdy and robust image, but alsobrought to the product trust and
honesty which it was trying to buildin its first time buyers.
3. Amitabh Bachchan
(Cluttered Identity)Our framework argues that exclusivity makes the product-
celebrityassociation stronger thereby making the product resonates withthe qualities of
the celebrity. In cases where the celebrity endorsesmultiple products, he dilutes his
equity. There’s no better example in the Indian industry than AmitabhBachchan who
endorses ICICI Bank, Cadbury, Versa, Dabur, Rin,Parker Pens, Pepsi, Nerolac Paints and
many more. In each of thecases the ads use some or the other attribute of Amitabh
toendorse the product, but makes no strong link in the minds of theconsumer. Hence in
the end the consumer is lost and has difficultyidentifying, what does Amitabh really stand
for?
4. Rani Mukherjee - Hero Cycles
(Negative Impact)Rani Mukherjee endorsing a cycle makes a case where thecelebrity is
used only for her popularity without looking for Brand-celebrity fit.Cycles in India are
generally used by men and the target segmentbelongs to low income group. By using
Rani, the consumers couldnot be assured of the product’s qualities and could not relate
theproduct to the ambassador. Hence, the consumers were notmotivated towards the
product and the ad was called back, therebyemphasizing the need for a brand-celebrity
fit.
5. Hutch - The Child and the Dog
(Created Spokesperson)Hutch managed to grab the attention of the consumers, by
notusing a celebrity. The child and dog campaign came across as afresh initiative at
endorsing a product. The child and dog have hada very high brand recall as they represent
only Hutch and havebeen created by the company according to the needs of theproduct
and the message. It communicates to the consumer, “Weare there, wherever you are and
that too unobtrusively.” Theprotagonist says all of the above and creates a strong bond
withthe consumer.
6. Mohammad Azharuddin - Britannia
(Change of the CelebrityImage)Mohammad Azharuddin, at the peak of his career was a
brandambassador for an assortment of products. But the match-fixingcase besmirched his
image and all of the products starteddisassociating their endorsements from him.Thus, a
product is sold on basis of the qualities of the endorser and with a change in the inherent
value system of the celebrity; thebond with the consumer is lost.
7. Narain Karthikeyan - Jordan / Formula 1 Racing
(EnteringInternational Markets)A celebrity’s endorsement through various cultural and
socialroadblocks is one of the critical applications of our model; Narain isa case in point.
The popularity of F1 as a sport in India owes itsgenesis to use of Narain as a brand
ambassador of the sport. Hisimage and persona has been used by the sport and the
Jordanteam to create brand awareness in India.
8. Sachin Tendulkar - Fiat Palio
(Financial Viability)Sachin Tendulkar was paid a huge sum of Rs. 12 Crore to
endorseFiat Palio, even though Tendulkar as a brand could commandsuch an exorbitant
amount. It’s for the company to evaluate if thereturns generated by the endorsement
would commensurate theinitial spend. In this case due to excessive 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(IMC) plan to realize 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. Companies
have taken celebrity endorsement to next level by projecting brands as a way of life.
Smart companies are using their brand ambassadors in other mediums such as movies to
promote their brands .E.g., Amitabh Bachchan, who endorses the financial instruments of
ICICI Bank, is shown as a branch-manager of ICICI Bank in the movie
Baghban
.Wooing the key existing and potential target customers is the trait of a successful
promotion strategy. However, 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. Companies that succeed in
developing such an integrated IMC plans is the one to succeed in the long-term.
Celebrities do not make brands but ideas do. Celebrity endorsement is also one of the
ideas. If 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
Return-on-Investment
, and think more in terms of your
Return-on-Ideas
.
“There is one thing which is stronger than all the armies of this world, and that is an idea
whose time has come.”
- Victor Hugo
As has been identified in the analysis framework, the impact of any Celebrity
endorsement campaign depends on three factors -Brand, Customer and Endorser as well
as the interrelationship between -
Brand and Endorser (B-E Interaction)
Consumer and Endorser (C-E Interaction)Hence, a celebrity is required to have not
just a certain minimum level of qualities, but there should also be a tactical fit between
the constituting elements of the model. As has been seen in the cases ,celebrity
endorsement can impact brands in both positive and negative manner. It has acted as a
panacea for companies such as Cadbury’s during the phase when the brand was on the
verge of losing its hard owned equity in the same time also has been used effectively in
making the Anti-Polio Campaign 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 requirement. However, a number of brands have been built without celebrity
endorsement. For some of their brands, Hindustan Lever and Procter & Gamble 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 & Gamble launched its 'Rejoice' brand in India with testimonials from ordinary
women in their TV advertising. Few more examples of this will be Lifebuoy, Wheel,
Dettol, Close Up ,Fevicol etc.
FACTS AND FIGURES :-
- Approximately 60-70% of all television commercials feature famous people.
- Aishwarya Rai had once endorsed 'Fuji-Film' camera rolls. The company made an
agreement with her to endorse their camera rolls. But, Aishwarya's magic did not
work there and they had to terminate the contract. Amitabh Bachhan (AB) was
seen endorsing Maruti's Versa Car. The AB factor worked wonders as far as
generating curiosity was concerned but the actual product couldn't meet the
expectations of people, and hence, the endorsement strategy didn't work. He has
been used very effectively by Parker Pens, ICICI Bank and Cadbury's to name a
few.
- Bata's sales doubled soon after they adopted Rani Mukherjee as their brand
ambassador. Magic Johnson lost his endorsement deals when he announced in
1991 that he's HIV-positive. It wasn't until July 2003 that he landed his first
endorsement deal since the announcement.
- Ticket sales at Wimbledon are known to have shot up significantly for all matches
featuring the latest 'sex-symbol' on the circuit - Anna Kournikova. 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 49 per cent growth in Celebrity endorsement advertising volumes on TV
during 2007 compared to 2006.
- Celebrities from Film Industry lead with 81 per cent share of overall Celebrity
endorsement advertising pie on TV during 2007.
- 'Aerated Soft Drink' was the top category with maximum advertising volumes of
Celebrity endorsement during 2007.
•- Celebrity endorsement on TV saw a whopping growth of sixtimes during 2007
over 2003
- 'Shahrukh Khan' had maximum number of advertisers in his kitty during 2007.
- Film Celebrities had the largest chunk i.e. 81 per cent share of overall Celebrity
endorsement on TV during 2007.
- Sports and TV personalities took the second and third rank with 14 per cent and 5
per cent share respectively during2007.
- Film Actors accounted for 50% share followed by Film Actress and Sportsmen
with 31 per cent and 14 per cent share of Celebrity endorsement on TV during
2007.
REFERENCES
Bibliography :
•Positioning: A battle for mind - Jack Trout and Al Ries
•
Erdogan (1999), "Celebrity Endorsement: A LiteratureReview",
Journal of Marketing Research
, 15, 291-314
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Hindu Business Line, 2003,Tellis, Effective Advertising:Understanding When, How, and
Why Advertising works
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McCracken, Grant (1989), "Who is the Celebrity Endorser?"
Journal of Consumer Research
, 16 (December), 310-321.
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Business Standard, May 13, 2005
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Dean (1999), "Brand Endorsement, popularity, and EventSponsorship as advertising cues
affecting consumer Prepurchase attitude",
Journal of Advertising
, Volume XXVIII,Number 3, 1-12
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Goldsmith, Lafferty and Newell (2000), "The Impact of Corporate Credibility and
Celebrity Credibility on Consumer Reaction to Advertisements and Brands",
Journal of Advertising
, Volume XXIX, number 3, 43-54
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L. K. Marhur, I. Mathur and N. Rangan (1997) June, "TheWealth Effects Associated with
a Celebrity Endorser: TheMichael Jordan Phenomena", Journal of AdvertisingResearch,
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B. Zafer Erdogan, Michael J. Baker and Stephen Tag (2001)June, "Selecting Celebrity
Endorsers: The Practitioner'sPerspective",
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Tripp, Jensen and Carlson (1994) March, "The Effect of Multiple Product Endorsements
by Celebrities on Consumers'Attitude and Intentions",
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Agrawal and Kamakura (1995) July, "The Economic worth of celebrity endorsers: An
event study analysis", Journal of Marketing, Vol 59, 56-62
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Aaker, David A. (1996), Building Strong Brands. New York,NY: The Free Press.
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Daneshvary, Rennae and R. Keith Schwer (2000), "TheAssociation Endorsement and
Consumers' Intention toPurchase," Journal of Consumer Marketing, 17 (3), 203-213.
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Websites:
•
www.thedayaftertomorrow.com
•
www.synovate.com – 2003
•
www.indiantelevision.com
•
www.magindia.com
•
www.blonnet.com
•
www.rediff.com – article by Country head, O&M India
•
indiainfoline.com – article 'Celebrity Endorsements inbrands.
•
www.coolavenues.com
For more Notes, Presentations, Project Reports visita2zmba.blogspot.com
•
hrmba.blogspot.com
•
mbafin.blogspot.com
QUESTIONNAIRE
The ten celebrities and the results are as follows: -
1. Amitabh Bachchan : CEI = 55
Creator/innovator 2 Caregiver 8 Jester 3
Magician 6 Hero 8 Ordinary Guy 1
Lover 5` Innocent 3 Sage 8
Outlaw 1 Explorer 2 Ruler 8
2. Shan Rukh Khan: CEI = 54
3. Sachin Tendulkar : CEI =53
Creator/Innovator 3 Caregiver 4 Jester 6
Magician 3 Hero 8 Ordinary Guy 1
Lover 9 Innocent 3 Sage 3
Outlaw 1 Explorer 6 Ruler 7
4. Saurav Ganguly: CEI=42
5. Rahul Dravid: CEI=45
Creator/Innovator 8 Caregiver 2 Jester 2
Magician 9 Hero 8 Ordinary Guy 1
Lover 1 Innocent 1 Sage 3
Outlaw 1 Explorer 8 Ruler 9
Creator/Innovator 6 Caregiver 5 Jester 2
Magician 3 Hero 7 Ordinary Guy 1
Lover 2 Innocent 2 Sage 2
Outlaw 1 Explorer 6 Ruler 5
6. Hrithik Roshan: CEI= 50
7.Aishwarya Rai: CEI=49
Creator/Innovator 6 Caregiver 2 Jester 6
Magician 3 Hero 8 Ordinary Guy 1
Lover 6 Innocent 8 Sage 3
Outlaw 1 Explorer 4 Ruler 5
Creator/Innovator 3 Caregiver 2 Jester 6
Magician 3 Hero 8 Ordinary Guy 1
Lover 6 Innocent 8 Sage 3
Outlaw 1 Explorer 4 Ruler 5
8. Kareena Kapoor: CEI=46
9. Saif Ali Khan: CEI=44
10. Preeti Zinta: CEI=49
Creator/Innovator 3 Caregiver 8 Jester 2
Magician 3 Hero 7 Ordinary Guy 1
Lover 7 Innocent 9 Sage 3
Outlaw 1 Explorer 3 Ruler 2
Creator/Innovator 1 Caregiver 3 Jester 8
Magician 3 Hero 8 Ordinary Guy 1
Lover 7 Innocent 3 Sage 2
Outlaw 1 Explorer 6 Ruler 3
Creator/Innovator 3 Caregiver 3 Jester 9
Magician 3 Hero 6 Ordinary Guy 4
Lover 7 Innocent 2 Sage 2
Outlaw 1 Explorer 2 Ruler 2