Effectiveness of Celebrity Marketing

8/2/2019 Effectiveness of Celebrity Marketing

1/81

Effectiveness of Celebrity Marketing

Page | 1

CHAPTER-I


2/81


Page | 2

1.1 INTRODUCTION:

The use of advertising has changed over the past 150 years, from the classical to

the modern school. In the modern day techniques of advertising various appeals of

advertising are included such as emotions, fear and humor. The main purpose of

these appeals is to deliver information that the company seeks to send to gain high

brand awareness and brand recognition among a larger audience. This paper will

examine the relationship between celebrity endorsements and brands, by applying a

selection of widely accepted principles of how consumers brand attitudes and

preferences can be positively influenced. Compared to other endorser types, famous

people achieve a higher degree of attention and recall. They increase awareness of a

companys advertising, create positive feelings towards brands and are perceived by

consumers as more entertaining. Using a celebrity in advertising is therefore likely

to positively affect consumers brand attitudes and purchase intentions. To ensure

positive results, however, it is critical for advertisers to have a clear understanding

of the black box of celebrity endorsement.

Everyday consumers are exposed to thousands of voices and images in

magazines, newspapers, and on billboards, websites, radio and television. Every

brand attempts to steal at least a fraction of a persons 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 subjects attention. In helping to

achieve this, use of celebrity endorsers is a widely used marketing strategy. In this

modern 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.

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.


3/81


Page | 3

Companies invest large sums of money to align their brands and themselves with

endorsers. 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. Indian

advertising started with the hawkers who used to call out their wares right from the

days when cities and markets first began. 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.

Marketers spend enormous amounts of money annually on celebrity endorsement

contracts based on the belief that celebrities are effective spokespeople for their

products or brands. Celebrity Endorsement is viewed as a billion dollar industry in

todays era. Various companies are signing deals with celebrities in the hope that by

using celebrities they can accomplish a unique and relevant position in the minds of

the consumers. Celebrity endorsement is increasingly being employed across

various industries regardless of the product type. It is known to be playing the role

of a signaling strategy. Also a celebrity endorsing a product can give that particular

brand a touch of glamour.

Everything said and done, one have to weigh the potential risks vs. the potential

rewards as celebrity endorsements are always a high-risk, high-reward situation and

there is always a human element that you might not know about. To ensure positive

results, however, it is critical for advertisers to have a clear understanding of theblack box of celebrity endorsement.


4/81


Page | 4

1.2 OBJECTIVES OF THE STUDY:

To examine the perception of individuals on the role of advertising inbuilding preference

To provide statistical information of the influence of celebrity advertisingon existing and prospective customers

To determine the level of influence that celebrity advertising on consumerpreference

To determine the level of awareness that advertisements featuringcelebrities have on consumer preference

To obtain a view amongst Indian Consumers about celebrity endorsement

To gain an understanding into the subject of celebrity endorsement inorder to identify the characteristics and issues concerning the subject

To undertake a critical review of destination marketing in order to identifythe characteristics and issues concerning the subject


5/81


Page | 5

1.3 SCOPE OF THE STUDY:

The use of testimonials by advertisers dates back to the 19th 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 examples is Queen Victoria's endorsement of Cadbury's

Cocoa.

Three of humankind's greatest inventions (cinema, radio, and television) have

extended the scope of endorsement as an advertising technique. Today, use of

celebrities as part of marketing communications strategy is fairly common practice for

major firms in supporting corporate or brand imagery. 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 using celebrities was "the spirit of emulation". About a decade ago, one

in three television commercials used celebrities' endorsements, and today this

advertising approach appeared to be on the increase across all media types. It was

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 about 10% of the dollars spent on

television advertising are used in celebrity endorsement advertisements. Thus,

celebrity endorsement has become a prevalent form of advertising in United States

and elsewhere.

Today, the use of celebrity advertising for companies has become a trend and a

perceived winning formula of corporate image building and product marketing. 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.


6/81


Page | 6

1.4 SIGNIFICANCE OF THE STUDY:

Celebrity endorsements will be more effective when used consistently overtime to increase the strength of the link between the celebrity and the endorsed

brand

The research seems to be more promising when using a celebrity who is notalready strongly associated with another product or service

Test potential brand/celebrity combinations to ensure that the impressionand image of the celebrity is positive for the target audience

Celebrity marketing will be more effective for less familiar brands

The study will be more advantageous for brands for which consumers havelimited knowledge/facts or when integrated across the elements of the

marketing mix

Caution in choice of celebrity endorser is warranted given the potential riskof tarnishing thebrands image

Celebrity endorsements will be more effective when the ad execution issimple, clean, and free of irrelevant design elements. Focus on the celebrity

and the brand together


7/81


Page | 7

1.5 RESEARCH METHODOLOGY:

The study of Research Methodology for developing the project gives us the

necessary training in gathering materials and arranging them, participation in the

field work when required, and also provides training in techniques for the collection

of data appropriate to particular problems.

Main Objectives:

To understand consumer perception of the celebrities in advertisements To understand the effectiveness of celebrity endorsing a particular product To identify drawbacks associated with celebrity marketing

1.5.1 Formation of problem:

The main problem about celebrity endorsements is overexposure. Thisproblem occurs when a celebrity endorses too many companies and products.

Eg- Shah Rukh Khan.

Overshadowing of the brand is another threat which companies pose whichmeans that consumers may only give attention to the celebrity and fails to

realize the brand and remembers the celebrity and not the message given by

the advertisement.


8/81


Page | 8

1.5.2 Hypothesis:

i. Ha= Technique of Celebrity Marketing is effective

ii. Hb= Technique of Celebrity Marketing is not effective

1.5.3 Collection of data:

Research methodology used for study includes both primary & secondary

sources of data. However most of the study conducted is based on secondary

sources.

i. Primary Data: A questionnaire based on celebrity endorsements takenout of a sample size of 50 respondents was being made

ii. Secondary Data: Search engines like Google, 4Ps magazine andother journals on advertising and marketing was utilized to gather

secondary data

1.5.4 Research Instrument: A systematically formulated questionnaire wasmade and this was used as a research instrument for finding out the valid data.

A sample size of 50 respondents was used who answered the questions from

the questionnaire.

1.5.5 Making Sampling Plan:i. Sampling technique: Random sampling method

ii. Area: Mumbai, Thane

iii. Sample Size: 50 respondents


9/81


Page | 9

1.5.6 Research Limitations:

i.

The sample size was relatively small (50 respondents) due to limitedresources. Thus, it in turn added to the problem of generalization.

ii. Some of the responses may have been biased. The recently viewedadvertisements may influence the opinion of the respondents and

therefore biased.


10/81


Page | 10

Chapter-II

Review of Literature


11/81


Page | 11

1. Global Journal of Management & Research,Volume 11; Issue 4; Version 1.0; March 2011,

By Dr. Vipul Jain.

http://globaljournals.org/GJMBR_Volume11/8-Celebrity-Endorsement-And-Its-

Impact.pdf

Abstract:

The practice of celebrities being used for rendering services other than performing

their actual job as either an actor or an athlete, such as endorsements has proliferated

over time. Despite the cost and the risks involved with this technique of advertising, it

is been used quite extensively in the present era. The instrument of celebrityendorsement has nowadays become a pervasive element in advertising and

communication management. India as a country is known for loving its stars. The

Indians idolize their Bollywood actors and cricketers. The advertisers see this as an

opportunity to grab and work on so as to expand their operations and promote their

product. This dissertation focuses on examining the perception of these Indian

Consumers about the celebrity endorsement process and the subsequent impact on

their purchase decisions.

2. 2011 International conference on Economics & Finance Research,IPEDR vol.4 2011; IACSIT Press; Singapore,

By Reshma Farhat & Dr. Bilal Mustafa Khan.

http://www.ipedr.com/vol4/92-F10117.pdf

Abstract:

In an attempt to communicate the merits of their products or brand, advertisers

have often chosen to use endorsement as a promotional strategy. In this paper, an

attempt has been made to trace the effect of a celebrity on building a relationship in

terms of congruity between the brand personality and consumer personality. Based on

the affective and cognitive theories to explain endorsement efficiency, the congruence

between the mean values of the brand being endorsed and that of the targeted

celebrity against the mean value of the endorser was being tested. The results proved

that successful brand promotion needs congruency between the brands and theendorsers personality, though it may be moderate.


12/81


Page | 12

3. Journal of Product & Brand Management,Volume-7; Issue-5,

By Dr. Brian Till.

http://www.emeraldinsight.com/journals.htm?articleid=857674&show=html

Abstract:

The use of celebrity endorsers in advertising is wide-spread as much as 20

percent of all advertising use some type of celebrity endorser. Marketers invest

significant dollars in securing the promotional support of well-known individuals.

Associative learning principles are presented as a useful framework for understanding

how celebrity endorsers can be used more effectively. Principles such as repetition,

overshadowing, blocking, belongingness, CS pre-exposure, association set size, and

extinction are introduced and linked to specific managerial suggestions for improving

the use of celebrity endorsers.

4. Impact of Celebrity Endorsements on Overall Brand,By Neha Taleja,

Dated-June 24, 2010.

http://www.coolavenues.com/mba-journal/marketing/impact-celebrity-endorsements-overall-brand-0

Abstract:

This paper studies the impact of celebrity endorsements on brands. While the

magnitude of the impact of celebrity endorsement remains under the purview of gray

spectacles, the paper establishes reasoning to the impact of celebrity endorsements on

brands. The study delves into the learning of impact regions of celebrity endorsement

and how they occur. This paper rifles through the concept of celebrity endorsement

and provides insights on what it is and how the increasing numbers of endorsementsthrow a valid question to the consumers. Through research and analysis, this paper

emerges with a 14-point model which can be used as blue-print criteria and 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. Greater the score of the below parameters greater are the chances of getting

close to the desired impact. The paper also discusses the scope of celebrity

endorsement and ends with few insights on celebrity endorsement and its impact on

brands.


13/81


Page | 13

5. Impact of Celebrity Endorsement on Consumer Buying Behaviour and BrandBuilding,

Guru Jambheshwar University of Science and Technology - Department of

Business Management,

By Dinesh Kumar Gupta.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1203322

Abstract:

The field of consumer behaviour is the study of individuals, groups or

organizations and the processes they use to select, secure, use and dispose of product,

services, experiences, or ideas to satisfy needs and impacts that these processes have

on the consumer and society. And understanding the consumer behavior is the prime

and toughest task in front of every marketer. There are a lot of factors, which

influence consumer buyer behavior. This study aimed at to understand the "influence

of celebrity endorsee on consumer buying behavior and marketing." Marketers pay

millions of dollars to celebrity endorsee hoping that the stars will bring their magic to

brand they endorse and make them more appealing and successful. But all celebrity

glitter is not gold. Celebrity sources may enhance attitude change for a variety of

reasons. They may attract more attention to the advertisement than would non-

celebrities or in many cases, they may be viewed as more credible than non-

celebrities. Third, consumers may identify with or desire to emulate the celebrity.

Finally, consumer may associate known characteristics of the celebrity with attributes

of the product that coincide with their own needs or desire. The effectiveness of using

a celebrity to endorse a firm's product can generally be improved by matching the

image of the celebrity with the personality of the product and the actual or desired serfconcept of the target market. What therefore seems relevant by the study is that, yes,

definitely celebrity endorsee influence consumer buying behavior and brand building

but while using celebrity endorsee, marketer has to take care of all the aspect that

whether the brought personality and image of celebrity matches or not, whether

celebrity endorsee has deep penetration among the masses or not, whether he is

considered as credible source or not etc.


14/81


Page | 14

6. Analysis of Celebrity Marketing as an effective destination marketing tool,Bournemouth University,

By Robert van der Veen.

http://www.du.se/PageFiles/5051/Veen%20thesis.pdf

Abstract:

Commercial companies use celebrities with target customer segments to increase

the appeal of their offerings. The instrument of celebrity endorsement has nowadays

become a pervasive element in advertising and communication management. Whilst

many strategic as well as tactical aspects of celebrity endorsement effectiveness have

come under scrutiny from a manufacturing product marketing perspective, the

concept of celebrity endorsement for hedonic consumption, in particular destinations

is an often overlooked and under-researched strategy. This study will therefore posit

a discussion of celebrity destination endorsement by providing an exploratory review

of the concept that is based on an analysis of existing academic and conceptual

literature on destination marketing and on celebrity endorsement in marketing

management. Furthermore, marketing experts are consulted in order to contribute tothe literature with new and deeper information. Here the main focus is on the

perception of the interviewees relating to aspects of celebrity destination endorsement

within a framework of celebrity endorsement in general. Therefore, by using a

theoretical inquiry, it is not the researchers intention to establish facts but rather

identify the experts interpretations and perceptions in order to understand and

determine the effectiveness of celebrity endorsement as a destination marketing

instrument. As such, this study contributes to an understanding of the application of a

marketing device for a hedonic product in general, and it also increases understanding

of celebrity endorsement as a destination marketing tool.


15/81


Page | 15

7. Effectiveness of Celebrity Endorsement in India,The University of Nottingham,

By Rajni Surana.

http://edissertations.nottingham.ac.uk/2069/1/08MAlixrs13.pdf

Abstract:

The practice of celebrities being used for rendering services other than performing

their actual job as either an actor or an athlete, such as endorsements has proliferated

over time. Despite the cost and the risks involved with this technique of advertising, it

is been used quite extensively in the present era. The instrument of celebrity

endorsement has nowadays become a pervasive element in advertising and

communication management. India as a country is known for loving its stars. The

Indians idolize their boll wood actors and cricketers. The advertisers see this as an

opportunity to grab and work on so as to expand their operations and promote their

product. This dissertation focuses on examining the perception of these Indian

Consumers about the celebrity endorsement process and the subsequent impact ontheir purchase decisions. This project begins with a literature review which provides

an insight into the research done by the previous authors followed by the structure of

the research method adopted to achieve the objective this study. In depth qualitative

interview approach has been adopted to investigate the attitude of the consumer

towards celebrity endorsement and how it affects their daily lives. The findings

derived from analyzing the collected data unearthed some very interesting facts which

have been summarized in the conclusion and also managerial implication relating to it

has been discussed.


16/81


Page | 16

8. Is Celebrity Endorsement a Midas Touch or a Landmine,Gurukul Business Review (GBR),

Vol. 7 (Spring 2011),

By Dr. Bhavana Sindhu.

Abstract:

Use of the current heartthrob celebrity is always considered a big shot in the

armour of big brands to impress the masses. Huge gaps in between the incurred cost

and the resultant revenues give impetus to the trend. But, many a times there are

missed shots also. Instead of cooling the heels after a missed shot, at the initial stages

the companies need to pay attention to the factors, which might have been responsible

for the same. This empirical study extends another dimension to the celebrity

endorsement strategy. An attempt has been made to find out, whether the celebrity

endorsement is always capable to extend a Midas touch to the sale of the product

endorsed. An interesting finding, i.e., male celebrities are more effective as an

endorser than their female counterparts, is put forth through the chi square statistics.

9. International Journal of Marketing & Management Research,Volume-2; Issue-8; August 2008,

By Dr. Kuldip Singh & Maninder Singh.

http://www.skirec.com/images/download/ijmmr/IJMMR%20AUG%202011%

20ABSSTRACT%20PDF/8.5,%20%20Dr.%20Kuldip%20Kaur.pdf

Abstract:

In Indian market scenario, film star and sports celebrity endorsement has become

an integral part of advertisement. Celebrity endorsement is one of the most effective

method to make the product successful in the market and it makes the advertisementmore believable and develops positive attitude of consumer towards the product.

Celebrity endorsement gives a touch of glamour to the brand and hope that a famous

face will provide added appeal and name recognition in a crowded market.

Consumers perceptions of similarities between the celebrity and endorsed brand

enhance the effectiveness of endorsement. Against this background present study tries

to empirically test the comparative effectiveness of film star and sports celebrity

endorsement on purchase decision of consumer durables from a sample of 300

respondents.


17/81


Page | 17

10.Excel International Journal of Multidisciplinary Management Studies,Vol.2 Issue 1, January 2012, ISSN 2249 8834,

By Dr. Sarita Bahl.

http://www.zenithresearch.org.in/images/stories/pdf/2012/Jan/EIJMMS/14_EIJMMS

_VOL2_ISSUE1.pdf

Abstract:

The brand adoption process of any product or brand by a consumer is a very

complicated process. Before adopting any brand the consumer seeks a great deal ofsources to know about the brand depending on the nature of the product. Through

personal and non-personal sources the potential consumer becomes aware of the

brand. But the conviction about the brand is developed on the authenticity and

validity of the information collected about the brand. Amongst all the formal and

informal sources of company information we rate the spontaneous opinion of the mass

people most. Consumers psychology is immensely influenced by the views,

opinions of other people. A significant transformation is evident through the increase

in celebrity endorsement of products which is shaping consumer attitudes regarding

product evaluation and purchase. The present study aims to highlight the brand

awareness and perception towards quality of the products being endorsed by the

celebrities among urban and rural consumers in Punjab. Further, an attempt has been

made to find out any association if exists between demographic variables and

perception about celebrities endorsement.


18/81


Page | 18

CHAPTER-III


19/81


Page | 19

3.1 Definition of a celebrity:

A dictionary meaning of this word is a famous person". A person who has

excelled in his/her field of action or activity. In our day to day activity, we

perform many acts, may at home, at work place, on field in sports, in social life.

But these acts may be daily routine or just "acts" per say giving no extra-ordinary

results, not noticed by anybody surrounding, and not taken into notice by Media.

But if a person acts or performs something which gives spectacular results is

noticed by masses. That person has "done something" special that we and massescannot do. He is regarded as a special person with some "extra" given by that

"Almighty" above. We start feeling that he/she is great. We start celebrating

his/her all acts which produce success. If the success rate for that person is very

high to "deliver" same results, he becomes a "Celebrity". It may be in field of

sports, cinema, theatre, social life, politics, and science anything but

something with some special results. 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, Ram Kapoor) and sports (Sachin

Tendulkar, Michael Schumacher). But by all means these acts should be with goodcause, positive results, morally good and acceptable results. Eg. A bandit queen of

Chambal valley was very famous, but was terror before her surrender to police. But

she never becomes celebrity. But an actress Ms Seema Biswas who acted in film on

"Bandit Queen" on life of that bandit, became very famous and a Celebrity. A

celebrity is perceived as god by masses. They touch their feet, create idols and

worship, garland their photographs, perform "Yagnyas" for their idols performance,

wait for their "Darshan" in hot sun or heavy rains for hours together, follow

fashions of them - wear similar clothes or have similar hair style as that of celebrity,

and on wrong side even commit suicide if celebrity fails to deliver results.


20/81


Page | 20

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.

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.

Some of the most popular celebrities in all fields of excellence around the world

are followed by millions of fans which impacts their way of dressing, attitude etc.

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-mediachannels (E.g Shah Rukh Khans documentary on his life gave his millions of fans a

sneak peek into the life of the superstar. Last but not the least celebrities act as

spokespersons in advertising to promote products and services which are referred to

as celebrity endorsement.


21/81


Page | 21

3.2 Rise of Celebrity Culture:

The modern mass media has increased the exposure and power of celebrity.

Often, celebrity carries with it immense social capitals that is highly sought after

by some individuals. High paying jobs and other social perks unavailable to most

people are readily available to celebrities, even for wok not connected to the talents

or accomplishment that made them famous. For example A retired athletes might

receive high speaking fees or compensation for public appearances, despite his

talent having been sports. Often, celebrities cannot escape the public eye & risk

being followed by fans. As well, child celebrities are notorious for having poor

emotional health in adulthood, and often turn to drug and alcohols abuse when their

fame fades. In India today, the use of celebrity advertising for companies has

become a trend winning formula of corporate image building and product

marketing. Associating a brand with a top-notch celebrity can do more than perk up

brand recall. It can create linkages with the stars appeal, thereby adding refreshing

and new dimensions to the brand image.

In a world filled with faces, how many do you remember? Admittedly the ones

that evoke some kind of feel in you, whether its humors, acceptance, appreciation

or recognition. These are the faces youd turn to look at, the ones that would stop

you in your tracks. And thats when you have more than just a face. You have

personality. As existing media get increasingly cluttered, the need to stand out has

become paramount- and celebrities have proved to be the ideal way to ensure brand

prominence. Synergizing personality with product and message can create an

instant breakthrough. Celebrities as brands is a concept-selling challenge, as the

current notion of celebrity management is far from ideal its perceived as a

business that merely attaches celebrity to the brand to get that added advantage.

However, the actual job is not mere brokerage --- its about selecting a celebrity

whose characteristics are congruent with the brand image. Using celebrities in

advertising dates back to the late nineteenth century and this common advertising

practice has drawn a considerable amount of academic and practical attention.


22/81


Page | 22

Celebrities embody a collection of culturally relevant images, symbols, and

values. 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. For advertising practitioners, employing an appropriate celebrity

endorser to promote a product is important and difficult tasks. Familiarity, as well

as the fit between celebrity and the product, as important factors for choosing the

appropriate endorsers. Other highly ranked decision factors include celebrity/

target- audience congruence, costs of securing the celebrity, the celebritys risk of

controversy, and the celebritys prior endorsement.

Celebrity endorsements are very expensive. Therefore their use in an ad should

be justified. In other words, the message strategy for a brand should strongly

warrant the use a known face in an idea. Sadly, very often the celebrity is hired first

and an idea is then weaved around his or her presence. 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. A celebritys presence in the ad

should be contextual. When Sachin Tendulkar declares, Boost is the secret of my

energy, it doesnt seem out of context. Celebrity endorsements work best when

the celebrity is not introducing the brand. When the product already has a strong

identity and a USP that is well established, then a celebrity can come in and

give the brand an added fillip and generate some more interest value. However,

what is of paramount importance is to find a complete fit between the values of the

brand and the values of the celebrity. One needs to create a unique situation or story

that links the celebrity to the product.


23/81


Page | 23

3.3 What is Celebrity Marketing?

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. There was a spurt of advertising, featuring stars like Tabassum

(Prestige pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving

Cream) and Sunil Gavaskar (Dinesh Suitings). Of course, probably the first ad to

cash in on star power in a strategic, long-term, mission statement kind of waywas for Lux soap, a brand which has, perhaps as a result of this, been among the

top three in the country for much of its lifetime.

Endorsements by celebrities have started since a long time. The very fact that

their use has continued for so long is proof enough of its immense advantages, but

they have several disadvantages too. When it comes to celebrity endorsement, the

first brand that comes to the Indian mind is that of Lux, the Beauty Bar of theStars. Since its inception, Lux the brand has grown positioning itself thus.

However, some years back Lux had tried to change its positioning from being a

womans soap to being soap for men as well. Sticking to its strategy of using

celebrities to appeal to its target audience, this time around it has used Shah Rukh

Khan to endorse Lux. But this time the response has been confusing. One of the first

sports endorsements in India was when Farokh Engineer became the first Indian

Crickets to model for Bryllcreem The Indian cricket teams now earns roughly Rs.

100 crore through endorsements. Stars, who are known to shape destinies, cast an

enormous influence. No, were not talking about astrology here. Were referring to

the powerful effect of celebrities on destinies of brands. One approving nod from a

famous face can translate into millions in brand sales. Perhaps thats why the world

over, companies have been using stars to endorse everything, from food to food

chains, from soft and hard drinks to health drinks, from clothes and accessories to

cars (and the tyres on which they run).


24/81


Page | 24

Even political parties are awestruck by the charisma of stars. Such is the

magnetism of celebrities in this country that in the recent elections, major

political parties fielded a record number of film stars and cricketers to contest from

important constituencies around the country. 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. Today celebrity endorsement is

being seen more and more as an integral part in an integrated marketing

communication strategy. There are three macro factors present in the market today

that in principal justifies the validity of celebrity endorsement as a promotional

strategy. The first factors the increasing opportunity for interactivity between brands

and their consumers. Second is the eraof consent situation present today where

consumers have more control over the messages they receive. And lastly is the

increasing media fragmentation and commercial communication clutter which in

turn helps to find out the value of star power in an endorsement and pointed

towards how a well-designed advertising helped celebrities convert their star powerinto brand equity.


25/81


Page | 25

3.4 Celebrity Marketing and its effect on consumers:

It is a known fact that the best endorsements achieve an effective balance

between the product (brand) and the celebrity. Giving a brand a 'face' is more

than just a marketing strategy to increase sales or gain market share, it is a

decision that can change the future of the brand forever. Choice of the celebrity,

hence, is of utmost importance and is usually done based on many different

parameters - appeal, looks, popularity or even just a fantasy figure to endorse a

brand. In today's highly competitive markets, big brands are at logger-heads when

it comes to products, each having a similar product to that of a rival. Where does

one brand gain that competitive advantage - advertising, service, or promise of

trust. Advertising seems to be the best platform where brands prefer to compete on -

right from hiring the best advertising agencies to getting the biggest celebrities.

What would be the formula to success then? Well, a good creative agency, a large

enough promotional budget and a huge star to endorse your brand would definitely

ensure in the minds of a brand management team a feeling of security, success anda triumph over the competitors brand. The general belief among advertisers is that

brand communication messages delivered by celebrities and famous personalities

generate a higher appeal, attention and recall than those executed by non-celebrities.

The importance of a celebrity-brand match and the various roles played by them

as endorsers show the momentum this strategy has gained in the last decade or so.

India is a country where people are star-struck by film stars, cricketers, politicians,

and even criminals. The main reason for this is the populations of our country

which is currently 1 billion and ticking, everyday people need something or

someone to look up to. A sense of security, admiration, comfort, familiarity, and

above all, someone they aspire to be at some hidden level in their lives. A clever

marketer leverages this very celebrity appeal and successfully carries out his job by

giving t h e brands what they want - profit, market share and even recall.


26/81


Page | 26

Now, despite the potential benefits derived from celebrity endorsements, they

increase a marketer's risk and should be treated with full attention and aptitude. A

brand should be cautious when employing celebrities to ensure promise

believability and delivery of the intended effect. As the celebrities traverse from a

mere commercial presence to public welfare message endorsements, a whole new

dimension is added to this process and helps us in achieving a holistic view of

the impact which celebrities generate in every sphere and segment through their

well-versed endorsements. The most 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.

A celebrity's presence in the ad should be contextual. Celebrity endorsement cannot

guarantee fool-proof success. The celebrity endorsement strategy must be

integrated with target market characteristics, and the other elements of the

marketing mix such as product design, branding, packaging, and pricing. The

message execution that will be mouthed by the celebrity must likewise be made

clear and single-minded. This can be done by aligning the spirit of the brand to the

product, or by using a celebrity because it ensures that people will notice you, andhopefully remember what the brand is saying. Right now the current hot favorite in

India is roping in celebrities for social causes like AIDS, polio etc. This has shown

to be having a positive effect on the people. In India, Bollywood and sport

personalities rule the mind-space and airwaves.


27/81


Page | 27

3.5 Celebrity Endorsements as a Strategy:

Signing up stars for endorsements is a time-tested strategy and has been

effectively used by some of the top brands in the world including Nike and Pepsi. In

India too, HLL has used Hindi film stars to endorse their beauty soap Lux since

the fifties. Vimal, Thumbs Up, Gwalior and Dinesh are some of the earliest other

brands that used star-appeal in the early days of mass advertising. Marketers believe

that star endorsements have several benefits, key among them being building

credibility, fostering trust and drawing attention or any or all of which can translate

into higher brand sales.

So how does one decide whether to put a celebrity in an ad? Ideally, this

should be dictated by the communication idea. Advertising professionals

recommend celebrity endorsements when the case is justified. There are many

cases where you need to use the celebrity to break out of a category clutter. At times

celebrity endorsement is used to build credibility to the brand offer. Most experts

concur that, when used judiciously, celebrity endorsements can be an effectivestrategy. In order that a product is really successful, a brand needs to have a strong

identity of its own. It should ideally not piggyback on the identity of a celebrity

and hope to achieve success. There are many cases where you need to use the

celebrity to break out of a category clutter. At times celebrity endorsement is used to

build credibility to the brand offer.


28/81


Page | 28

3.6 Pros & Cons of Celebrity Marketing:

Pros:

Academic researchers have conducted sufficient empirical research to express

the benefits of product endorsement, in addition to the intuitive arguments that

rationalize this practice. It is observed that the presence of a renowned persona

helps in solving the problem of over communication that is becoming more and

more prevalent these days. The increased consumer power over programmed

advertisement has made advertising has made advertising more challenging. To ease

this threat and to help create and maintain consumer attention to advertisements

celebrity endorsement strategy is seen to be advantageous. Celebrities have the

potential of helping the advertisements stand out from the surrounding clutter,

guiding towards an improved communicative ability by cutting through excess noise

in a communication process. Also one probable solution in the face of tarnished

company image is the hiring of a celebrity to restore it. Celebrity Endorsement

assists in the image polishing of the companys image.

A stream of studies identifies the attributes such trustworthiness, similarity,

likableness, expertise that cause a celebrity to stand as a persuasive source which in

turn creates a sense of certainty. It is shown by research and experience that

consumers are highly ready to spend and more comfortable, when products that

relate to their desired image is endorsed by celebrities as it helps them to take

more notice of celebrity endorsements and improve their level of product recall.

Another reason for the use of celebrity endorsement is because it has a strong

impact on the learning style and memory which is critical to marketing

communication success. This is because most consumers are not in a purchasing

situation when they come into contact with the brand message. Marketers make use

of celebrity endorsements as they lead to better information storage in the minds of

the consumers which can be readily retrieved when the purchasing situation dose

arise. All these lead to the conclusion that celebrity endorsements are likely to have

a positive effect on product choice behavior.


29/81


Page | 29

One of the most successful advertisements of the year 2011 was made by Coca-

Cola India featuring Imran Khan.

Brands have been leveraging celebrity appeal for a long time. Across categories,

whether in products or services, more and more brands are banking on the mass

appeal of celebrities. As soon as a new face ascends the popularity charts,

advertisers queue up to have it splashed all over. Witness the spectacular rise of

Sania Mirza and Irfan Pathan in endorsements in a matter of a few months.


30/81


Page | 30

The accruement of celebrity endorsements can be justified by the following

advantages that are bestowed on the overall brand:

Establishment of Credibility

Ensured Attention

PR coverage Time saving

Higher degree of recall

Associative Benefit

Mitigating a t a r n i s h e d i m a g e

Psychographic Connect Mass Appeal Providing testimony Rejuvenation a stagnant brand


31/81


Page | 31

Cons:

The very first downside of celebrity endorsement is the term Lazy Advertising

used to address the extreme usage of celebrities to endorse products, which poses aquestion on the validation of success of celebrity endorsement as a prevalent

marketing communication activity. It is believed that using celebrities can turn out

to be an unnecessary risk, unless there appears to be a very logical relation between

the endorser and the product. Celebrity endorsers may now and then become a

liability to the brand they endorse. Negative information and publicity regarding the

celebrity is one risk associated with the use of celebrity endorsers. If the celebrity is

strongly associated with the brand then the impact of the negative publicity will

brim over to the product. Many companies have been badly affected by the negative

publicity accruing from the celebritys misdeeds. Furthermore, those who choose to

use celebrities have no control over the celebritys future behaviour.

Clutter in brand endorsement is very high up these days. This is due to

celebrity greed which leads to a celebrity endorsing many diverse products.

Overexposure is a common occurrence between highly recognized and well-liked

endorsers and highly competing brands and leads to making the consumer

confused and unable to recall correctly which brand the celebrity stands for. This

not only compromises the value of the celebrity in the eyes of the stars fans but

also brings to the customers notice the true nature of endorsements which is more

compensation inclined and not so brand or product inclined. This has been

referred to as the hired gun problem, where the spokesperson is perceived as

endorsing the product only for the motive of money. Two new shortcomings can be

seen these days what marketers call Celebrity Trap and Celebrity Credibility.

Celebrity trap is when the task to find substitutes becomes more and more difficult

and thus celebrity becomes an addiction for the marketing team leading to surfeit of

celebrities. Celebrity credibility refers to skepticism by the consumers regarding the

celebrities, because of which brand is bound to be affected, especially when there is

anything negative regarding the celebrity associated with the brand in the news.


32/81


Page | 32

There are decreasing returns associated with celebrities in advertising. Also some

consumers have termed celebrities to be a puppet used by companies implying that

they perceive the celebrities to be lying, when endorsing certain products. There are

decreasing returns associated with celebrities in advertising. Also some consumers

have termed celebrities to be a puppet used by companies implying that they

perceive the celebrities to be lying, when endorsing certain products.

The Kya aapke toothpaste mein namak hai advertisement campaign featuring

Sonakshi Sinha which in turn failed miserably to attract customers to promote the

product. The celebrity approach has a few serious risks:

The reputation of the celebrity may derogate after he/she has endorsed theproduct

Inconsistency in the professional popularity of the celebrity

Multi brand endorsements by the same celebrity would lead to overexposure

Celebrities endorsing one brand and using another (competitor)

Mismatch between the celebrity and the image of the brand


33/81


Page | 33

.2.8 Scope of a Celebrity on the Incumbent Brand:

Simply stating, a brand is a differentiated product and helps in identifying your

product and making it stand out due to its name, design, style, symbol, color

combination, or usually a mix of all these:


34/81


Page | 34

Before we can scrutinize the effects of celebrity endorsement on the overall

brand, we have to study the implicit factors that act as sources of strong brand

images or values:

Experience of Use: This encapsulates familiarity and proven reliability

User Associations: Brands acquire images from the type of people who are seenusing them. Images of prestige or success are imbibed when brands are associated

with glamorous personalities

Belief in Efficiency: Ranking from consumer associations, newspaper editorials, etc Brand Appearance: Design of brand offers clues to quality and affects preferences

Manufacturers Name & Reputation: A prominent brand name (Sony,Motorola, Bajaj, and Tata) transfers positive associations

An appropriately used celebrity can prove to be a massively powerful tool

that magnifies the effects of a campaign. But the aura of cautiousness shouldalways be there. The fact to be emphasized is that celebrities alone do not

guarantee success, as consumers nowadays understand advertising, know what

advertising is, and how it works. People realize that celebrities are being paid a

lot of money for endorsements and this knowledge leads them to think twice

about celebrity endorsements.


35/81


Page | 35

CHAPTER-III


36/81


Page | 36

3.1 Celeb Ad-vantage

What are the benefits of representing India in the national cricket team? It is an

opportunity to compete with the best in the world and pitch one's talent against the

best. It is an opportunity to travel around the world. It is an opportunity to uphold

national pride. And make good money from every match played. But there is more,

a ticket to modeling in the advertising world (and a future perhaps in Bollywood).

Not surprisingly it's a very attractive profession as advertisers pour crores of

rupees every year into celebrity advertising. Think of Sachin Tendulkar. He means

Pepsi in soft drinks, Boost in malted beverages, MRF in tires, Fiat Palio in cars,

Aviva in life insurance services, Colgate Total in toothpastes, Britannia in biscuits,

Visa in credit cards & Airtel in mobile services. Clearly, an overload of brands and

categories associated with one star. 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. The reasons are quite insightful.

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.

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.


37/81


Page | 37

There is no doubt that celebrity advertising has its own benefits known as The

Four Qs:

Quick saliency: It gets cut through because of the star and his attention gettingvalue. 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 connectsbecause 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 brandmessage fast without elaborate story telling. Sachin Tendulkar seems to have done

that successfully for Boost which helped to differentiate it in the malted beverages

market.

Quick means of brand differentiation: In a category where no brand is using acelebrity, the first that picks one up could use it to differentiate itself in the market.

Boost did it in the malted beverage category.

Shah Rukh Khan changed the fortune of Dish TV after he started endorsing it.

Above is the latest advertisement campaign for Dish TV.


38/81


Page | 38

In general, celebrity marketing techniques 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

The sources that companies use to present their advertising message typically

attempt to project a credible image in terms of competence, trustworthiness or

dynamism. Celebrity endorsers are considered to be highly dynamic, with attractive

and engaging personal qualities. Audience may also trust the advice given by some

famous person, and in certain cases, celebrities may even be perceived as competent

to discuss the product. The most widely used celebrities are sports figures, actors orother types of entertainers. There are several reasons why a famous endorser may be

influential: They attract attention to the advertisement in the cluttered stream of messages. They are perceived as being more entertaining. They are seen as trustworthy because of apparent lack of self-interest.

The final element is due to the wide-spread attribution that major stars do not

really work for the endorsement fee, but are motivated by genuine affection for the

product.


39/81


Page | 39

3.2 Compatibility between Celebrity & Brand Image:

A celebrity is used to impart credibility and aspirational values to a brand, but thecelebrity needs to match the product. A good brand campaign idea and an intrinsic

link between the celebrity and the message are musts for a successful campaign.

Celebrities are no doubt good at generating attention, recall and positive attitudes

towards advertising provided that they are supporting a good idea and there is an

explicit fit between them and the brand. Certain parameters that ensure proper

compatibility between the celebrity and brand image are as follows:

Celebritys fit with the brand image

CelebrityTarget audience match

Celebrity associated values

Costs of acquiring the celebrity

Celebrity-Product matches

Celebrity controversy risk

Celebrity popularity

Celebrity availability

Celebrity physical attractiveness

Celebrity credibility

Celebrity prior endorsements

Whether celebrity is a brand user

Celebrity profession


40/81


Page | 40

1. Fit with the Advertising Idea:Marketers now seek to adopt 360 degree brand awareness in which the brand

sees no limits on the number of contact points possible with a target consumer.Advertising ideas, thus, revolve around this approach, and the celebrity

endorsement decisions are made through these strategic motives. One of the

most successful celebrity endorsement campaign which reflects the fit between

the brand and the 360 degree advertising fit is Hrithik Roshan and Provogue.

The conjunction between the two has been immensely impactful and brand

managers have utilized this endorsement through 360 degree reinforcement.

Provogue Lounge and extensive phased insertions in print in selective

publications reaching out to their target audience has made it as one of the

highest recalled celebrity endorsement.

2. Celebrity-Target Audience match:

Amitabh Bachchan and other cricketers and actors endorsing the WHO

recommended ORS Campaign in India. Indians can associate with the different

personalities through the facets they project on screen or in regular life which

helps develop a connect with the target audience. Also the senior Bachchan

seems to grab the eyeballs of a billion people when he talks about securing your

and your familys life by getting them and yourself insured.

3. Celebrity Values:Celebrity branding is all about the transfer of the value from the person to the

product he endorses or stands for. There are two concerns here. The first is how

long this could last and whether the person can maintain his popularity. The

lifecycle of celebrity popularity varies a lot. The second concern is his private

life - personal integrity. If he is implicated in any kind of scandal, that would

ruin the brand. Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning

for AIDS Awareness, Amitabh Bachchan & Shahrukh Khan campaigning for

Pulse Polio reflect the transfer of celebrity values to the brand, creating an

impact that generates recall.


41/81


42/81


Page | 42

7. 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.

8. Celebrity Popularity:

Celebrity Brand association like Garnier endorsed Tara Sharma &

Simone Singh, Agni Diamonds with Riama Sen don't get much brand

recall, and even if they do, its difficult to attribute it to the celebrities'

endorsing the brand. The recent Sonakshi Sinha Campaign for colgate

also went down the flush despite of the popularity of the actress.

9. 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.

10.Celebrity Physical attractiveness:

Bipasha Basu' physical attractiveness and her connect with the brand makes

Mcvities' digestive biscuits campaign through celebrity in India, John Abraham

endorsing Wrangler and Yamaha are some examples which portray the celebrities'

physical attractiveness that helps creating an impact.


43/81


Page | 43

11.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 huge number of brands is the credibility of his recognition among

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, Amitabh Bachchan's

credibility infused into the brand through the campaign, helping it to get back

on track. The campaign has won an award for the same.

12.Multiple Endorsements:

The case of multiple endorsements, both in terms of a single brand hiring

multiple celebrities and that of a single celebrity endorsing multiple brands, is

often debated. At times, consumers do get confused about the brand endorsed

when a single celebrity endorses numerous brands. The recall then gets reduced

and reduces the popularity of the brand. 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 Cadbury, Pepsi, Parker Pens, Pulse Polio and BPL. They might get

confused in the endorsement of Nerolac 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.


44/81


Page | 44

13.Whether celebrity is a brand user:

One of the strongest platforms to discuss this is through NGOs. 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. On the other

hand, while some would understand that Amitabh Bachchan would have never

used Navratan Tel, the target audience that the brands wants to reach out to will

be ready to believe that he used the oil and his endorsement thereby creates an

impact.


45/81


Page | 45

3.3 Factors involved in Celebrity Marketing:

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 v/s 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 v/s 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, endorsed 15 brands including Pepsi, Boost, Colgate

Total, Gillette, Britannia Tiger, Fiat Palio, Aviva life insurance, Fiat Sienna, MRF,

Adidas, and Visa Cards etc.


46/81


Page | 46

Also, the use of multiple celebrities to endorse a brand may hinder the meaning

transfer process and thus lead to confusion among the consumers. Below are few

endorsements done by Hrithik Roshan. Apparently his endorsement fees are

supposed to be in loads of crores but no one knows the exact figure except his

secretary, his PR agent and Hrithik himself!!


47/81


Page | 47

3.4 Kinds of Celebrity-Impacts on Brands:

(1)Product Placements:

Many movies directly endorse those products whose brand ambassadors star in

that particular movie. For Eg: The movie Om Shanti Om had endorsements of

products like Tagheur, Compaq all of whose brand endorser is Shah Rukh Khan.

(2)Celebrities Co-Owning the Brand:

Many celebrities who co-own a particular brand endorse their products in their

respective movies. For Eg Shahnaz Hussain co-owns her own line of Emami products

and in turn herself endorses them too.

(3)Fictional Heroes:

Shaktimaan has sold Parle-G, and Popeye single-handedly revived the

consumption of spinach in the US.

(4)No More but Still Celebrities:

Campaigns created around Dhirubhai Ambani was the 'Kar lo duniya muthi

mein' campaign for Reliance.

(5)Celebrities for a Cause:

The Pulse Polio campaign being coordinated by UNICEF for the Ministry of

Health and Family Welfare had Amitabh Bachchan and Sachin Tendulkar.

(6)Spoofing:

The Great Cola Wars happened in India too between co brands Mountain Dew

and Sprite.

(7)Mascots:

Ronald McDonald, the Amul Girl, Maharaja of Air India.


48/81


Page | 48

(8)Products endorsed according to gender:

John Abraham lends his rugged image to Yamaha bikes while Priety Zinta lends

her cute dimples to peddle Scooty.

(9)Celebrities Lending their Name brands:Binani Cement tentatively titled Big B is named after Amitabh Bachchan.

(10) Company Owners Being Celebrities:

Vijay Malaya and Richard Branson who are walking talking celebrities andendorse their own brands through their extravagance, their flamboyant lifestyle.

(11) Using a Social Proposition Built Within the Brand:The Surf campaign done by Revathy and Shabana Azmi (in the south and north

respectively) which stressed on the prudent usage of valuable water was a social

proposition cleverly inter- woven in the brand.

(12) Duration of Usage - Promotional or Long Term Strategy:Shahrukh Khan has had a longer duration of endorsing Hyundai cars for over 10

years now. Similarly due to negative publicity Thumbs Up switched over its brand

ambassador from Salman Khan to Akshay Kumar.

(13) Foreign Celebrities:

Jackie Chan doing a Discover commercial or Orlando Bloom doing a Toyota Etios

commercial.

(14) 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 riding Hayabusa in the movie Dhoom boosted the sales of

sports bikes in India.


49/81


Page | 49

3.5 Objectives of Celebrity Marketing:

Defining the objectives of the advertisements is the first step. In general, there

are four major objectives for any advertisement. Note that not all advertisements

need to have all the objectives.

Establish the product need:Establishing a need for a product or a product category is the necessary first

step. This is more important in new-to-world category of products. In

Indian context, consider the advertisement for Polio Immunization drive -

the TV advertisement featured Amitabh Bachan telling that immunization is

a must for every child - while people suffering from polio are shown in the

background along with healthy kids. This advertisement used a celebrity to

create the need for polio immunization. Another good example is Toyotas

advertisement of Innova in India. The TV advertisement prominently shows

Amir Khan playing different roles while traveling in an Innova. Thedifferent roles - establish the need for such a big car in India. (Note that

Indian car market is dominated by small cars - which can seat only four

adults, Toyota wanted to establish the need for an 8 seater car in India)

Create Brand AwarenessOnce the need for a product is established, customers must be able to

associate the brand with the product category. For example iPod is strongly

associated with portable MP3 players, Nike with sports shoes etc. A classic

example of this is Adidass use of Sachin Tendulkar advertising for Adidas.

This advertisement instantly created a strong association of Adidas with

cricket shoes.


50/81


Page | 50

Set customer expectations:

Brand value comes from the customers experience with the product. If

the product meets or beats his expectations, then a positive brand image

is created, else a negative brand image is created. Therefore it is

essential to set the customer expectations accordingly. This is most

common in established consumer products - Beauty products, household

cleaning products, food products etc.

Create a purchase intention:

These are marketing promotion advertisements - Buy one, get one free, or

get additional discounts if you buy within a particular date etc. The sole

purpose of such communication messages is to encourage customers to buy

immediately or within a short period after seeing. Use of celebrity

endorsements to create a purchase intention has been very limited. This ismainly because such advertisements adversely affect the personality brand

value of the celebrity. Being associated with a discount deal is not favorable

image for the celebrity and the customer.


51/81


Page | 51

3.6 Measurement of Celebrity Marketing:

It becomes very important to measure the effectiveness of a celebrity (or

determine the worth of one). Few of the methods of measurement that are in practice

are: -

The Q-SCORE Method The FRED Principle

The Q-SCORE Method:There is a way to measure the credibility, believability, popularity, and like-

ability of a celebrity. It's called a Q-Score, and you can purchase the Q-Scores of the

candidates you're considering. Consider both sides of the deal - for a client who

wanted to use a celebrity endorser, and for a celebrity who was looking for an

endorsement opportunity. Once you've defined the kind of endorser you need

(e.g., athlete, actor, male/female, young/old, etc.), its well worth going

through the Q-Score exercise. Evaluating the contribution of the endorser after

you've already made the decision is not nearly as straightforward. One time, many

years ago, a company actually shot a commercial with a well-known (high Q-

Score) endorser for national use, and it shot the same commercial with a good

actor, not so well-known. The company ran a limited market test for 6 months

with the unknown actor (cutting in the commercials locally, over national

network schedule) so could quantify the sales impact of the celebrity. By the way,

the celebrity was worth every penny of his outrageous fee. It ended up using him foryears, and he helped the brand reach market leadership almost entirely on the

strength of the commercials in which he appeared.


52/81


Page | 52

The FRED Principle:F is for Familiarity:

The target market must be aware of the person, and perceive him or her as

empathetic, credible, sincere and trustworthy.

R is For Relevance:

There should be a meaningful link between the advertised brand and the

celebrity endorser, and more important, between the celebrity endorser and the

defined target market. The audience must be able to identify with the person. If

consumers can immediately associate with an endorser, they will feel more

predisposed to accepting, buying and preferring the brand to competition.

E isforEsteem:

Consumers must have the utmost respect and confidence for the celebrity.

Amitabh Bachchan & Tendulkar have these. So do Shahrukh Khan, Preity

Zinta, Kapil Dev among others. The public respect them because of their

distinguished careers and unassailable salesmanship.

D is for Differentiation:

The target consumers must see the endorser as a cut above the rest. If there is

no perceived disparity among celebrities, then the strategy will not work. Michael

Jordan is an example of an international celebrity that rises above the clutter. This

proves to be a huge contributory factor to his effectiveness as an endorser. The Fred

concept is not a guarantee to success, but it can serve as a guideline when selecting

a spokesperson. Each organization and its objectives are different, and should be

evaluated on an individual basis.


53/81


Page | 53

The Impact:

As defined earlier, impact would be both short term and long term, but here the

focus would be more on the long term implications of the brand. Measurement of

this would be challenging and data would be difficult to obtain. The parameters on

which impact could be measured would be on a comparative basis of the brand

before and after the celebrity began endorsing the brand. Sales / revenue, market

share, brand recall, level of repurchase, brand loyalty, trust, image and perception

of the brand per say. In this trend of creative advertising, we see usage of

celebrities of all walks in life - particularly actors, film stars, models, sports

persons, and the whole gamut. But the usage can always backfire if the choice

of the star is completely contradictory in nature to the brand. Believability and

association of brand to celebrity is important.

Selection of celebrities can be done while they are at their peak or when they are

destined for greatness in the near future. Again a risk that may go either way. What

is important at some level is the value that a celebrity adds to a particular brand. The

advertiser tries his best to make the celebrity and brand as analogous as possible.

The celebrity endorser is seen to score quite well on dimensions such as

trustworthiness, believability, persuasiveness, and likeability when tested for

reaction from people. This is important to a marketer as if he can get a celebrity

to make the masses follow, believe or listen to him, he has been successful. The

basis for the effectiveness of celebrity-endorsed advertising can be linked to this

process of identification and internalization of the desired behavior. Price of fame

may be high for the celebrity endorsed brands but they have both what the marketsand the everyday common man want - attention, power and star sizzle.

Celebrities are people who enjoy public recognition of a large group of people.

Celebrities may convey a broad range of meanings, involving demographic

categories (e.g., age, gender and status), personality and lifestyle types. For

instance, people adore Sachin Tendulkar because he represents a middle-class

Maharashtrian boy who made it big with sheer hard work. Likewise, Amitabh

Bachchan for most is an icon of style, trust and dependability.


54/81


Page | 54

3.7 Celebrity Marketing Cases: Make or Break

Shah RukhKhan-Lux (NegativeImpact)

Shah Rukh Khan is the most vibrant actor in the Hindi film industry and stands

for:

S-Scintillating R-Romance K-Kinetic

It is generally said that when King Khan as he is known when advertises a

product you are certainly sure that his charisma and fan following will in turn help

boost the sales of that particular product. But there was an exception to this theory

too. If you look at the advertisement of Lux a beauty soap generally aimed at the

fairer sex and featuring divas from their respective generations in all of their previous

campaigns, the ad featuring SRK showed a disastrous fit between what the product

stands for, what the consumer expects and what the celebrity means to the consumer,

hence explaining the weak impact in sales and leading to utter confusion.


55/81


Page | 55

Sushil Kumar-Mountain Dew(PositiveImpact)

Mountain Dews latest advertisement featuring Sushil Kumar is one of the best

advertisement campaigns in recent times. This strong man hailing from the Kushti

state Haryana is directly proportional to the tag line of the product Darr ke aage jeet

hai. Sushil Kumars image of being a brawny man, hailing from the rustic roots of

India, gave Mountain Dew the perfect brand ambassador it was looking for. He not

only gave to the product a sturdy and robust image, but also brought to the product

trust and honesty which it was trying to build in its first time buyers.

Amitabh Bachchan (cluttered identity)

Our framework argues that exclusivity makes the product-celebrity association

stronger thereby making the product resonates with the qualities of the celebrity. In

cases where the celebrity endorses multiple products, he dilutes his equity. Theres no

better example in the Indian industry than Amitabh Bachchan who endorses ICICI,

Cadburys, Versa, Dabur, Binani Cement, Nerolac Paints and many more. In each of

the cases the ads use some or the other attribute of Amitabh to endorse the product,

but makes no strong link in the minds of the consumer.


56/81


Page | 56

A R Rahman Hero Moto Corp (Positive Impact)

The musical maestro AR Rahman endorsing a motorcycle brand makes a

case where the celebrity is used only for her popularity without looking forBrand-celebrity fit. The latest campaign of uniting a billion Indians through upload

of videos with the campaign Hum mein hai Hero clearly states that Hero Moto

Corp wanted to change their brand image with the change in the name of their

company.

VodafoneZoozoo (Positive Impact)Vodafone managed to grab the attention of the consumers, by not using a

celebrity. The zoozoo campaign came across as a fresh initiative at endorsing a

product. The zoozoo have had a very high brand recall as they represent only

Vodafone and have been created by the company according to the needs of the

product and the message. It communicates to the consumer about all the offers and

packages the company offers. The protagonist says all of the above and creates a

strong bond with the consumer.


57/81


Page | 57

Katrina Kaif (Positive Impact)

Katrina Kaifis the top female brand ambassador in India, representing 12 brands

which includes Nakshatra, Spice Telecom, Pantene, Godrej Renew, Slice Aamsutra,

Veet etc. She is the fifth person with the maximum number of brands endorsed in the

country. Katrina Kaif has has replaced Aishwarya Rai in Nakshatra Diamonds and

also usurped Priyanka Chopra in the Spice Telecom ad. Katrina Kaif has also replaced

Sushmita Sen as the brand ambassador of Pantene.

Ranbir Kapoor-Cluttered Image

The latest entrant from the Kapoor Khandaan Ranbir Kapoor is the new kid on

the block in terms of advertisement campaigns. Ranbir endorses multiple products

ranging from a hatchback Japanese car to a cola drink to a cellular phone service.

Apparently his advertisement of Tata Docomo reminded viewers like me of Jerry

Sienfeld which didnt suit him at all.


58/81


Page | 58

Salman Khan-Sonic Batteries, Revital (Negative Impact)

Lovingly known as the Bhaijaan of the Hindi film industry many companies

literally backstabbed Salman Khan when they felt his bad boy and tarnished image

would hamper the image of their particular product. His two most idiotic ads include

Sonic Batteries directed by his close director friend Nikhil Advani (Kal Ho Na Ho &

Salaam-E-Ishq fame) failed to impress the audience. Another miserable

advertisement done by Salman Khan was of Wheel detergent powder and Revital

Capsules which was pre

Date post:	06-Apr-2018
Category:	Documents
Upload:	prayag-panchal
View:	226 times
Download:	0 times

Effectiveness of Celebrity Marketing

Documents