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BRAND BUILDING USING CELEBRITY ENDORSEMENT
INTRODUCTION
Advertising is imperative for any kind of products or services. To survive in
the market, advertisers adopt distinctive techniques for advertising. In this
globalised era “celebrity advertising” emerges as a better way of advertising. The
term "testimonial" most commonly applies to the sales-pitches attributed to
ordinary citizens, whereas "endorsement" usually applies to pitches by celebrities.
Advertisers have attempted to quantify and qualify the use of celebrities in their
marketing campaigns by evaluating their awareness, appeal, and relevance to a
brand's image and the celebrity's influence on consumer buying behavior.
Endorsements by celebrities have started since a long time. Celebrities
include fame movie stars, sports personalities, talk show personalities, politicians
and others who have the „charisma‟. Now more than ever, celebrity images are
essential to hold the attention of the modern consumer. Celebrity Endorsement
Deals has established a service based on one simple fact that is undeniable and
widely recognized. Corporations can reap the financial benefits of celebrity
endorsements in the form of increased sales. Non-profit organizations can utilize
celebrity names to foster higher online and event-based fundraising revenues. For
decades, celebrity spokespeople have been a favourite marketing tool of companies
with products or services to sell. Instant recognition attracts the desired target
audience and makes the product they are promoting more visible. Audiences have a
higher recall of, and can be more persuaded by, advertisements containing
celebrities. Celebrity spokespeople are a staple in marketing. More than 20 percent
of all advertisements today feature a famous face, voice or likeness. Even small
businesses use celebrity spokespersons. The reason why Consumers pay attentions
to celebrities because people are inherently attracted to a familiar face and voice.
CELEBRITY:
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. 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.
The following are the examples of celebrities
a.)Actors (e.g., Amitabh Bachchan, Shahrukh Khan, Aishwarya Rai, Preity Zinta,
Aamir Khan and R.Madhavan).
b.)Models (e.g., Mallaika Arora, Milind Soman, etc),
c.)Television Personalities (Husain, Smriti Irani),
d.)Sports figures (e.g., Sachin Tendulkar, Mahendra s Singh Dhoni, Anna
Kournikova, Michael Schumacher, Tiger Woods, etc),
e.)Entertainers (e.g., Cyrus Broacha, Oprah Winfrey,),
f.)Pop-stars (e.g., Madonna, Shakira).
CELEBRITY ENDORSEMENT:
The use of celebrities in order to increase the sales and/ or the recall value of
a brand is called celebrity endorsement. The late '80s saw the beginning of celebrity
endorsements in advertising in India. Hindi film and TV stars as well as
sportspersons began encroaching on a territory that was, until then, the exclusive
domain of models. One of the first sports endorsements in India was when Farokh
Engineer became the first Indian Crickets to model for Bryl cream The Indian cricket
teams now earns roughly Rs. 100 crore through endorsements
RISE OF CELEBRITY CULTURE: The modern mass media has increased the exposure and power of celebrity.
In India, today the use of celebrity advertising for companies has become a trend
and a perceive winning formula of corporate image building and product marketing.
As the images of the celebrity become associated with the products through
endorsement, the meanings they attach to the product are transferred to consumer
through and consumption. Therefore, the practice for celebrity endorsement should
be closely related to the cultural context in which the images of celebrities are
formed and individual celebrities are selected to be linked with particular products.
The important thing to remember is that putting a celebrity in an ad is not an
idea in itself. Unfortunately, this is how most celebrities are being used in Indian
advertising, where they just become a prop. Ideally, there should be an idea that
makes the celebrity relevant to the product and the consumer.
EFFECTIVENESS OF CELEBRITY ADVERTISING:
In the advertising world, celebrity advertising is seen as a substitute for
'absence of ideas' – and actually frowned upon. Yet it appears again and again. A
client hits upon celebrity as a solution when his agency is unable to present to him a
viable, exciting solution for his communication/marketing problem. He then feels
that the presence of a well-known face is an easy way out. It is rare that there is an
idea on the table and client and agency mutually agree that the presence of a
celebrity will actually lift the script. This is very similar to Bollywood blockbuster
films where the cast is decided upon and the script is either written accordingly or
re-engineered around the cast.
Benefits – The four Q’s:
Quick saliency: It gets cut through because of the star and his attention getting
value. Nerolac has ensured high saliency for its brand with the inclusion of Amitabh
Bachchan in its advertising.
Quick connect: There needs to be no insight but the communication connects
because the star connects. Sachin Tendulkar & Shah Rukh Khan ensure an easy
connect for Pepsi with the youth.
Quick shorthand for brand values: The right star can actually telegraph a brand
message fast without elaborate story telling. Kapil Dev and Sachin Tendulkar seem
to have done that successfully for Boost in the early '90s and helped to differentiate
it in the malted beverages market.
Quick means of brand differentiation: In a category where no brand is using a
celebrity, the first that picks one up could use it to differentiate itself in the market.
Boost did it in the malted beverage category.
In general celebrity endorsements are impelled by virtue of the following motives:
Instant Brand Awareness and Recall.
Celebrity values define, and refresh the brand image.
Celebrities add new dimensions to the brand image.
Instant credibility or aspiration PR coverage.
Lack of ideas.
An appropriately used celebrity can prove to be a massively powerful tool
that magnifies the effects of a campaign. But the aura of cautiousness should always
be there. The fact to be emphasized is that celebrities alone do not guarantee
success, as consumers nowadays understand advertising. They know what
advertising is and how it works. People realize that celebrities are being paid a lot of
money for endorsements and this knowledge makes them to think twice about
celebrity endorsements.
The success of a brand through celebrity endorsement is a cumulative of the
following attributes.
1. Celebrity – Target audience match.
2. Celebrity values.
3. Cost of acquiring the celebrity.
4. Celebrity regional appeal factors.
5. Celebrity – product match.
6. Celebrity controversy risk.
7. Celebrity popularity.
8. Celebrity availability.
9. Celebrity physical attractiveness.
10. Celebrity credibility.
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."
Al Ries & Laura Ries
Indian advertising started with the hawkers who used to call out their wares
right from the days when cities and markets first began. Since then, Indian
advertising has metamorphosed into a strategic tool that enhances sales, siphons
more profits and helps in the process of brand-building and product promotion.
With this evolved a strategy that tried to benefit from the emotional attachment of
the admirers or the fans of the celebrities; in the form of celebrity endorsement. It
does help in creating instant awareness and visibility; but for a cost.
The project aims to look beyond the obvious benefits that might be derived
out of celebrity endorsement. It 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 complexities
pertaining to celebrity endorsement. Analyzing its success is as much a necessity as
is the understanding of its need. The importance of celebrity management has been
emphasized to realize success or failure in its true sense. A symbiotic model has
been proposed to define: how to make celebrity endorsement a win-win situation
for both the brand and the brand-endorser.
"Brand" is the most valuable asset of any firm. Any thoughtless adventure
can be like the Sword of Damocles. It's the "strong idea" of promotion which is a
more strategic means of brand-building; which can be an economical alternative
over celebrity endorsement.
"It doesn't matter how new an idea is; what matters is how new it becomes."
- Elias Canetti
If you're trying to persuade people to do something, or buy something, it
seems to me you should use their language, the language in which they think." David
Ogilvy
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 customers and 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.
Today, the business firms are trying out different ways in advertisement to
increase their sales. 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 the project is to analyze the role of Celebrity
Endorsement in the process of brand-building by taking appropriate examples from
the advertising landscape.
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. 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 subsequent 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
framework for measuring the effectiveness.
OBJECTIVE:
1. To determine how the Brand building using celebrity endorsement works.
Definition of Celebrities
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. Among the classic
forms of celebrities, actors (e.g., Shahrukh Khan, Amitabh Bachhan, etc.), models
(e.g., Malaika Arora, Bipasha Basu, etc.), sports-persons (e.g., Sachin Tendulkar,
Sania Mirza, etc.) are significant. 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.
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.
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.
Companies use celebrity endorser because they are considered to have
stopping power, i.e., a celebrity can be a very useful tool to draw attention to
advertising messages in a cluttered media environment. The overall popular image
coupled with exact product- image match enhances the consumer attention
resulting in greater brand recall.
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.
Branding & Celebrity Endorsement
Indian firms have been juxtaposing their brands with celebrity endorsers in
the hope that celebrities may boost effectiveness of their marketing and/or
corporate communication attempts. 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, intended to identify goods or services
of one seller or a group of sellers and to differentiate them from those of competitor.
Definition of Celebrity
A celebrity is a person who is widely recognized in a society. Whereas
attributes like attractiveness, extraordinary lifestyle or special skills are just
examples and specific common characteristics cannot be observed. It can be said
that within a corresponding social group, celebrities generally differ from the social
norm and enjoy a high degree of public awareness. Today's celebrities are larger
figures from movies (Amitabh Bachchan, Shah Rukh Khan), television (Larry King,
Smriti Irani) and sports (Sachin Tendulkar, Michael Schumacher).
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.
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. The business firms, thus, resort to
celebrity endorsement to perk up brand recall and product sales. This has now
become a trend and is being perceived as a strategic means of brand building
exercise.
The Elaboration Likelihood Model (EML) suggests that consumers will
scrutinize claims more in important situations (say, life saving drugs) than in
unimportant ones. So, for almost similar products like Coke and Pepsi, it makes
sense to use endorsement. Also, Friedman & Friedman have shown that a celebrity
relative to a non-celebrity spokesperson would be more effective for products high
in psychological or social risk, involving such elements as good taste, self-image, and
opinion of others. For example, when actor Shah Rukh Khan endorses Santro-Zip
drive; the consumers are made to think that he is giving his opinion to go for this
car.
Two reasons why advertisers need celebrity endorsement are to increase the
credibility & attractiveness of their advertisement. This is solely to affect
consumers' attitude towards their brand. To justify this hypothesis, we can take the
example of former Miss Universe Sushmita Sen who helped the Epson brand of
printers achieve instant recognition; even with the established giants like Hewlett-
Packard and Wipro in the running. Similarly, actress Rani Mukherjee has turned the
tables for Bata's ladies footwear brand called Sundrop as sales increased by a
whooping 500%.
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.
To explain it with the help of an example, we can take the case of Rahul Dravid and
Castrol. The cricket icon is seen as "Mr. Dependable". And when he endorses Castrol,
an image of "dependability" is tagged on to the brand under promotion.
The Importance of Celebrity Management
In a world full of faces, the ones' which bolt from the blue are perhaps of the
celebrities. The advertisers are always on the look out for such faces for the purpose
of endorsement. But, the major challenge before them is to find the right faces for
their brands or in other words celebrity management. McCraken quotes, "In the best
of all possible worlds, the marketing or advertising firm first would determine the
symbolic properties sought for the product... It would then consult a roster of
celebrities and the meanings they made available, and taking into account budget
and availability constraints, would choose the celebrity who best represents the
appropriate symbolic properties." This suggests that the image of the celebrity must
fit or be congruent with the product which can be explained from the theoretical
perspective using a social cognition framework.
Schema-Based Expectancy Theory
A schema is an abstract, cognitive structure that represents some stimulus
domain, e.g., a person, place, event, or thing. It is organized through experience and
consists of a knowledge structure. They can determine what information will be
encoded or retrieved from memory. Schemas are involved in encoding,
interpretation, retention, and retrieval of information. They can influence
perceptual cognitive activities through the generation of expectancies. In the case of
well-known celebrities, individual would typically have personal relevant schemas
(person schemas), acquired over time. When a celebrity endorses a brand, the
characteristics of that celebrity may be compared with the advertised attributes of
the brand by the audience for congruence or fit with their available person-schema.
The degree of congruence between the new information (the brand attributes) and
the existing information (the celebrity's characteristics) may then influence the level
of recall of the new information.
The Associative Network Model suggests that information inconsistent with
an individual's schema may be quite salient and information will, therefore, be
attended to more closely and be processed more deeply. Therefore, this information
would be conceptually linked to a larger number of items in the memory, compared
to a piece of information that is consistent with the schema.
While the Schema-Pointer + Tag Model proposes that consistent or typical
items are encoded in terms of a "pointer" to a generic schema that contains the
typical components and relationships for that particular knowledge domain. The
atypical or incongruent items are, on the other hand, encoded with a rather
distinctive "tag" and stored as a unique, separate unit. This leads to higher recalling
for incongruent items than for typical items. And empirical researches confirm
significantly higher recalling when the image of the celebrity is congruent with the
brand image. Therefore, celebrity management is very important for the success of
any brand.
"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."
Celebrity Selection
There are various scientific ways in which the right celebrity is selected for the
product endorsement, which are discussed here after
• Stereotyping
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. 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 Kournikova who earns 10 Million
dollars per year in just endorsement.
Respect: For example - Former Miss World Aishawarya Rai and the 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: -
1. celebrity & audience match up,
2. celebrity & brand match up,
3. celebrity credibility,
4. celebrity attractiveness,
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 10 TV 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.
Framework to Make Effective Celebrity Endorsement Program
With the cut-throat competition and continuously changing market dynamics, one
has to assess the market conditions and re-evaluate its current marketing strategies
such as its portfolio of celebrity endorsement. The action plan should be able to
answer the following key questions: -
Are the celebrity endorsements programs result driven?
How to quantify the value generated by the celebrity endorsements?
Are customers able to connect the brand with the celebrity?
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.
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 maybe 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.
• 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
Another reason for the celebrity endorsement to turn against the brand is due to
"Overshadowing". This happens when the celebrity is larger than the brand being
endorsed. And unfortunately, though the celebrity generates higher levels of
attention among viewers, the impression is not always strongly linked to the
advertised brand.
Finally, brand may also fail to get noticed given a recent negative publicity of the
celebrity endorser. Example: Michael Jordan 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.
• The Solutions
Celebrity management is very crucial to avoid the brand-celebrity disconnect, and
subsequently, brand failures. Proper market research should be carried out and
right positioning strategies should be in place. If the consumers have questions in
their minds regarding the quality or performance of the product then even God
cannot save the brand. There shouldn't be any ambiguity or confusions when
showing the celebrity in the advertisement. 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 Celebrity Endorsement.
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 spokesperson's credibility and likeability.
Also, the use of multiple celebrities to endorse a brand may hinder the meaning
transfer process, and thus, lead to confusion among the consumers.
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.
The companies have to first clarify their business objectives, brand values and then
decide who the celebrities are who can carry them forward. Otherwise, their can be
unnecessary investments without proper return. So the celebrity endorsement cost
has to be weighed up against the return on marketing investment.
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 values that display
themselves in regrettable behavior could transfer themselves to the brand. 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. This can harm the
trustworthiness and credibility in the mind of the consumers. 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 of the
brand
and reduce the effectiveness of the means of persuasion.
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: -
The brand promise and the brand personality should be clearly articulated.
The communication objectives for the campaign should be frozen.
Focus must be on the synergy between the brand and the celebrity image
Establish explicitly what the celebrity is going to communicate
Once these criteria are met, endorsements can work as a force multiplier. A deeper
insight in the impact of celebrity endorsement on consumers' minds can be
explained by the meaning transfer model, explained in the next section.
BRAND BUILDING USING CELEBRITY:
CELEBRITIES ENDORSING THE BRANDS AND THEIR IMPACT :
Getting a well known personality is perhaps the easiest shortcut to
brand – building. Bollywood superstar Amitabh Bachchan and Shah Rukh Khan as
well as Indian Cricke t captain Mahendra singh Dhoni each endorse more than a
dozen brands. But several companies are now breaking out of the mould.
BRANDS AND THEIR CELEBRITIES:
MAHINDRA:
Mahindra chose Kasbekar and not a popular Bollywood star or cricketer for
the television commercial launched in 2010. They have chosen the celebrity who is
credible and not over exposed.
CADBURY:
Another company which has tied up with niche celebrity is Cadbury. The
confectionary maker has roped in film director Anurag Kashyup for an advertising
campaign. Kashyup, known for making offbeat films with newcomers, features in a
tv commercial for Cadbury chocolates where he is shown looking for female actors
for his next movie.
NICHE CELEBRITIES:
The list of niche celebrities with endorsement deals is fast growing. Fashion
designer Wendell Rodricks endorses sanitary ware maker Jaguar’s premium brand
Artize. Olympian boxer Vijender singh promotes Mountain Dew, a Pepsico product
positioned as a drink with a macho image. Wrestler Sushil Kumar who won a bronze
medal at the 2008 Beijing endorses Eicher tractors. Kolkata based Emami has roped
in Singh, Kumar and two other Olympic medalists, boxer Mary Kom and Shuttler
Saina Nehwal, for its pain reliever ointment. Singh and Nehwal now endorse 8 to 9
brand each.
The use of niche celebrities to promote a product is not a recent
phenomenon. In 1990s, tablo maestro Zakir Hussain endorsed Taj Mahal Tea.
Famous Chef Sanjeev Kapoor has been promoting kitchen products and spoces for
several years.
The obvious reason for a brand signing up a lesser known celebrity is lower
cost. A Bollywood superstar Amitabh Bachchan or ShahRukh Khan charges between
Rs. 6 crore and Rs. 10 crore per brand. A top cricketer like Virat Kohli would take
between Rs.1.5 crore and Rs.3 crore. In contrast a niche celebrity makes Rs. 50 lakh
to 1 crore per endorsement. Another important reason for using the niche celebrity
is the braking of clutter in endorsements. Most big stars also do not sign a written
contract with the celebrity management companies. Lesser known celebrities, on
the other hand, sign three to four year contracts. The companies take care of their
endorsements deals.
M S DHONI:
Mahendra singh Dhoni is the first Indian sportsperson to earn more than
Rs.100 crore a year in endorsements. Dhoni used to get Rs. 2.5 crore to 3 crore per
brand. Now because of the recent trend in the celebrity endorsement, he gets Rs.10
crore per deal and the total was then about Rs.100 crore. In India, sports icons were
so far exploited. M.S.Dhoni as a brand has risen above all this. The fees rose from
Rs.60 lakh per deal to over Rs.100 crore in under eight years. He expanded the
scope of endorsements by signing the equity deals. He has special purpose vehicles
for the ventures like the superbike racing team. Things began to change as
corporatisation and transparency pulled Bollywood out of the shadows. Around the
same time, cricket players came into their own as brand ambassadors. One of
Dhoni’s early moves to build his own brand was a deal with Prannoy Roy’s NDTV for
exclusive interviews, views and special shows. But it is not just about money. The
idea is to ensure that brand Dhoni lives betond his planning days.
BRANDS ENDORSED BY DHONI:
Reebok ,Lays, Pepsi beverages, Aircel, Exide, Boost, TVS, AshokLeyland, Maxx
mobiles, Siyarams, Orient , Dabur, Titan, Lafarge, UB, Amrapali and Gulf oil.
BRANDS ENDORSED BY SUSHIL KUMAR:
Mountain Dew, Eicher tractors, Emami fast relief, Ralson tyres and National
Egg Coordination committee.
BRANDS ENDORSED BY SANJEEV KAPOOR:
Sweekar sunflower oil, Dawaat Basmati Rice, Sleek Modular Kitchens, Tata i-
Shakti dal, Natura Sugarfree sweetener, Kenstar microwave ovens, Henkel’s Pril
Dishwash bar.
BRANDS ENDORSED BY SAINA NEHWAL:
Yonex Sportswear, Fortune cooking oil, Indian overseas bank, Whisper
sanitary napkins, Emami fast relief, Herbalife health and wellness products, Top
Ramen noodles and Airtel 3G.
CELEBRITY ENDORSEMENT DEALS AND EARNIGNS PER DEAL:
Celebrity No.of.deals Earn per deal
Ranbir Kapoor 10 Rs.8 crore
Imran Khan 2 Rs. 4 crore
Virat Kohli 13 Rs. 3 crore
Mary Kom 12 Rs. 40 – 60 lakh
Narghis Fakhri 6 Rs. 80 lakh – 1 crore
Parineeti chopra 4 Rs. 60-70 lakhs
Shah Rukh Khan 15 Rs. 8-10 crore
MS Dhoni 17 Rs. 10-12 crore
Salman Khan 15 Rs. 7 crore
Hrithik Roshan 6 Rs. 6-7 crore
Amitabh Bachchan 10 Rs. 6-7 crore
Katrina Kaif 12 Rs. 4 crore
Sachin Tendulkar 17 Rs. 5-6 crore
Aishwarya Rai 3 Rs. 4 crore
Conclusion
Celebrity endorsement can be a goldmine or a minefield for a company's
brand building process. There have been extensive studies relating to the process of
celebrity endorsement and brand-building These studies indicate that celebrity
endorsement has worked well in some consumer segments while failing in others.
Few celebrities have been more successful than those with almost parallel fame. So
the role of celebrity endorsement in the advertising space is equivocal and cannot
be seen as a assured strategic tool to win profits, market share, revenues, etc.