celebrity endorsement 100mks

8/8/2019 Celebrity Endorsement 100mks

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CONTENTS

SR NO TOPIC PAGE NO

1. Importance of Celebrity Advertisement 89

2. Celebrity Advertising is a Minefield or aGoldfield

10

3. Celebrity Endorsement Introduction

History of Celebrity Endorsement

Theories

Uses of Celebrity Endorsement

11--19

4. Why Celebrity Endorsement might notwork???

Essentials of Celebrity Endorsement

Celebrity Endorsement Dos &Donts

Factors affecting the Brand

Parameters that postulatecompatibility between the celebrity& brand image

20-27

5. Celebrity Endorsement Does it cloud theproduct Promise

28

6. Different Blokes for Different Folks 29-32

7. Does Celebrity Endorsement reallyworks???

33-34

8. Impact of Celebrity Endorsement on overall

Brand Positive Impacts

Negative Impacts

35-40

9. Indias Top Marketing Tool 41-45

10. Celebrity Endorsement A Double Edged 46-48


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IMPORTANCE OF CELEBRITY ADVERTISEMENT

In general, advertising is used to convey availability of a "product" (which can be a

physical product, a service, or an idea) and to provide information regarding the product.

This can stimulate demandfor the product, one of the main objectives of advertising.

More specifically, there are three generic objectives of advertisements : communicate

information about a particular product, service, or brand (including announcing theexistence of the product, where to purchase it, and how to use it), persuade people to buy

the product, and keep the organization in the public eye (called institutional advertising).

Most advertising blends elements of all three objectives. Typically new products are

supported with informative and persuasive ads, while mature products use institutional

and persuasive ads (sometimes calledreminder ads). Advertising frequently uses

persuasive appeals, both logical and emotional (that is, it is a form of propaganda),

sometimes even to the exclusion of any product information. More specific objectives

include increases in short or long term sales, market share, awareness, product trial, mind

share, brand name recall, product use information, positioning or repositioning, and

organizational image improvement.

Examples of the ideas, informative or otherwise, that advertising tries to communicate are

product details, benefits and brand information. Advertising usually seeks to find a

unique selling proposition (USP) of any product and communicate that to the user. This

may take the form of a unique product feature or a perceived benefit. In the face of

increased competition within the market due to growing numbers of substitutes there is

more branding occurring in advertising. This branding attributes a certain personality or

reputation to a brand, termed brand equity, which is distinctive from its competition.

Generally, brand equity is a measure of the volume and homogeneity of, as well as

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positive and negative characteristics of, individual and cultural ideas associated with the

product.

Effective advertising will stimulate demand for a product and build brand equity and

brand franchise. When enough brand equity is created that the brand has the ability to

draw buyers (even without further advertising), it is said to have brand franchise. The

ultimate brand franchise is when the brand is so prevalent in people's mind (called mind

share), that it is used to describe the whole category of products. This phenomena is

sometimes known as "hyperbranding." Kleenex, for example, can distinguish itself as a

type of tissue or a label for a category of products. That is, it is frequently used as a

generic term. One of the most successful firms to have achieved a dominant brand

franchise is Hoover, whose name was for a very long time synonymous with vacuumcleaner (and Dyson has subsequently managed to achieve similar status, having moved

into the Hoover market with a more sophisticated model of vacuum cleaner). The

strength of a brand franchise can be established to a greater or lesser degrees in various

markets. In Texas, for example, it is common to hear people refer to any soft drink as a

Coke, regardless of whether it is actually produced by Coca-Cola or not (more accurate

terms would be 'cola' or 'soda').

Advertising has become part of the visual reality of our times. While 50s and 60s

advertising tends to react to social and societal trends, the lifestyle advertising" of the

90s sets trends of its own. As society is increasingly defined in terms of audio-visual

media and their impact, advertising increasingly shapes the realities of our life.

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CELEBRITY ADVERTISING

IS A MINEFIELD OR A GOLDFIELD

Today 'Celebrity Endorsement' has attracted immense debate on whether it really

contributes to the brand building process or whether it is just another lazy tool to make

the brand more visible in the minds of the consumers. Although it has been observed that

the presence of a well-known personality helps in solving the problem of over-

communication that is becoming more prominent these days, there are few undesirable

impacts of this practice on the brand. The theories like 'Source Credibility Theory, Source

Attractiveness Theory and Meaning Transfer Theory' provide a basis on which the

methodology of celebrity endorsement works and also explains how the process of the

celebrity endorsement influences the minds of the consumers. Firms invest huge amounts

as advertising expenditure for hiring the right celebrity. However there lies uncertainty

with respect to the returns that the company might be able to garner for the brand. Theissue of matching the values of the celebrity with the brand values is also very important,

i.e. getting the right celebrity to endorse the right brand. Consumers perceive the brand as

having superior quality because it has been endorsed by a credible source. This makes

endorsement as one of the indictors of quality for any brand. Corporate credibility along

with endorser credibility plays a significant role in the attitude of the consumer towards

the brand and the advertisement respectively.

On the other hand, the over popularity of the celebrity sometimes overshadows the

brand. If the celebrity is involved in multiple endorsements, it tends to create confusion

among consumers and hence negatively affects the perception of the advertisement and

the brand. Hence, to say clearly whether the practice of celebrity endorsement impacts

positively or negatively to the brand still remains a debate.

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CELEBRITY ENDORSEMENT- INTRODUCTION

The society that we live in can not only be called secular or democratic, it should be more

appropriately termed as over-communicated these days. A typical super-market in USA

displays more than 12000 brands, an American family has at least one television set and a

consumer is exposed to around 1000 ads per day1. Likewise, there are around 130

television channels in India broadcasting over 3 million television commercials each year

in India. The media-explosion can thus be easily demonstrated. More over, people forget

80% of the information in just 24 hours! Just imagine the plight of the marketer to make

his brand shout over the deafening clutter of all the brands! Some where in the 80's,

Indian marketers found the solution, 'Celebrity Endorsing' for the brand!

Firms endorse celebrity for a variety of reasons. It might be the life experience of the

celebrity that fits the advertising message or the endorser's high appeal with the firm's

consumer target group. Studies associated with the market effect of ce

endorsement suggest that consumers positively value the use of celebrity endorsers in the

advertisements. Firms invest significant money in putting together brands

organizations with endorser qualities such as attractiveness, likeability, a

trustworthiness. But today's dynamic market conditions make these investments unviable.

In this project we are attempting to discuss the positive and negative effects of celebrity

endorsement with few examples. Celebrities as product-promoters are omnipresent in our

media-moulded and experientially minded society. Celebrities stand for quality of

products and performance; they lure us into spending our money. Advertising urges the

viewer to judge and choose. It is both fascinating and unsettling.

Well-known models, actors and athletes function as examples to emulate, as idols, as "a

new kind of saints. They stand out by top performance and presence on TV and in the

printed media.

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They are attention-getters in the competition among brand names for new and saturated

markets. The USA is the global pacemaker in this race. While celebrity endorsing

extends back into the 19th century, only in the modern media dominated society has its

use become so widespread and so targeted. Which celebrity fits which product? Who

primarily benefits from celebrity endorsement? How is the success of advertising

campaigns affected when the stars make the wrong kind of headlines?

Celebrity advertising and its impact is presented by the exhibition against the background

of societal and media trends. The exhibition reveals the ways and means of "seduction",

and warns against overrating them.

Who or what benefits most from advertising with celebrities - product sales or

the celebrities themselves? This question is still debated today. W

advertising success can be expected of a celebrity and his image a

relative prominence? How is endorsing with a celebrity actually done?

celebrities go with which products? Given the growing number of cele

who promote products - as well as the high cost of cross-media acampaigns - there are more and more efforts to get PR campaigns down to

science so as to make success a sure thing.

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HISTORY OFCELEBRITY ENDORSEMENT

Although commercials using celebrities originate mainly in the 80s and 90s and

are expressive of this period, they are not an invention of our tim

advertising using mainly aristocratic personalities is in evidence since

second half of the 19th century. In the further stages of its dev

advertising with celebrities is inseparable from the history of the medi

mass consumption. As in the 20s, the spotlight after 1945 is prima

cinema actors of universal charm, presented on posters and in advertise

as the new consumer models and style-setters.

In West Germany, advertising follows in the footsteps of the industri

nations of the west; in the GDR, advertising with celebrities remains v

unknown right up to the end. Political and ideological reasons alone are enough

to ensure that product advertising in the GDR generally remains margina

from the 70s on it is restricted more and more to foreign commerce.

With the advance and growing dominance of television in the 70s and 80s, more and

more athletes and TV celebrities are used, although the real boom of TV spots

begins with the authorization of private, i.e. commercial, television in

mid-80s. And at this point there is also a reappraisal of advertising. Back in the

60s and 70s, when the evils of consumerism came under indic

advertising nearly fell into disrepute along with it. But the situation t

transformed: Renowned photographers and film directors get celebrities to

for them. Celebrities work for advertising agencies competing with each

for the best ad, the best poster, the best spot, and the best marketing approach.

Advertising establishes itself as a new art form.

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Some of the early celebrity endorsements:

Luxor show-card with Marlene Dietrich 1950s

Beautiful women and real me Luxor beauty for you too."

Lucky Strike advertisement with Marlene Dietrich, 1950s

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Advertisement by the Drache cutlery company in Solingen: Curd Jrgens and

wife(1950s

In India..

Celebrities are involved in endorsing activities since late nineteenth century. The advent

of celebrity endorsements in advertising in India began when 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 cricketer to model for Bryl cream. The Indian cricket

team now earns roughly Rs. 100 crore through endorsements. 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).

THEORIES

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Celebrity Endorsement gave brand a touch of glamour and the hope that a famous face

will provide added appeal and name recognition in a crowded market. In the battle for the

mind, you get the customer excited by showing him a known face, and an effective

demand is created. In short it helps increase the recall value of the brand. A piece of

research states that the target audience age group of 15-30 gets influenced first by

Cricketers, then Bollywood stars and only then music, festivals and food.

According toSource Credibility Theory, acceptance of the message depends on

'Expertness' and Trustworthiness' of the source. Expertness is defined as the perceived

ability of the source to make valid assertions. Trustworthiness is defined as the perceived

willingness of the source to make valid assertions. Audience acceptance increases withthe expertness of the source and the ability of the audience to evaluate the product

According to Source Attractiveness Theory,which is based on social psychological

research, the acceptance of the message depends on familiarity, likeability and similarity.

Familiarity is the audience's knowledge of the source through exposure; likeability is the

affection for the source's physical appearance and behavior while similarity is the

resemblance between source and receiver.

This theory explains the message acceptance in two ways: Identification

Conditioning. Identification is when the receiver or the target audience o

communication begins to identify with the source's attractiveness, and hence tends to

accept his opinions, beliefs, habits, attitudes etc. On identification, a quote from Bijou

Kurien, COO, Titan, "We decided on Aamir because we wanted someone who is a

biticonic, who is style-conscious himself, and somebody who cuts across both sex and

age group, between urban and rural India. A celebrity who is mouldable and who is not

over-exposed".

Conditioning is when the attractiveness of the source is supposed to pass on to the brand

after regular association of the source with the brand.

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Grant McCracken has criticized the previous two theories and proposed the Meaning

Transfer Theory. The theory explains that a celebrity encodes a unique set of meanings

which if well used can be transferred to the endorsed product. Such a transfer takes place

in three stages encoding meanings, meaning transfer, meaning capture (Figure 1).

I.Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed

by age, gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a

set of meanings in their image. For example Preity Zinta can be seen as a lively,

charming, bubbly, witty and enthusiastic.

II. Meaning Transfer: This stage transfers those meanings to the product. When

skillfully portrayed, celebrities can communicate this image more powerfully than lay

endorsers.

III. Meaning Capture: This assumes that consumers purchase products not merely for

their functional value but also for their cultural and symbolic value. The theory says that

consumers buy the endorsed product with the intention of capturing some of the desirable

meanings with which celebrities have passed on to the product. This is more eminent in

lifestyle products like clothes, perfumes, cell phones etc.

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Having a congruent image between the brand and celebrity does not guarantee any

positive effect on consumers brand preferences. The fundamental question is what a

brand image really does to consumers? Baran and Blasko explained, "Since most

products aren't special, most advertising does all that so-called image stuff... There's no

information about the product, there's only information about the kind of people who

might be inclined to use the product". This view is echoed by Feldwick (1991) who has

suggested that the subjective experience of using a brand can be different from the

subjective experience of using an identical product without the brand reassurance. In the

case of using celebrity advertising to build brand images, the effects are examined with a

social psychological framework.

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SIX USES OF CELEBRITY ENDORSEMENTS

Establishes Credibility: Approval of a brand by a star fosters a sense of trust forthat brand among the target audience- this is especially true in case of new

products.

Attracts Attention: Celebrities ensure attention of the target group by breaking

the clutter of advertisements and making the ad and the brand more noticeable.

Associative Benefit: A celebritys preference for a brand gives out a persuasive

message - because the celebrity is benefiting from the brand, the consumer will

also benefit.

Psychographic Connect: Stars are loved and adored by their fans and advertisers

use stars to capitalize on these feelings to sway the fans towards their brand.

Demographic Connect: Different stars appeal differently to various

demographic segments (age, gender, class, geography etc.).

Mass Appeal: Some stars have a universal appeal and therefore prove to be a

good bet to generate interest among the masses.

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Why Celebrity Endorsement might not work ????

1. Improper positioning: Associating with a star, however big he or she may be, in itself

does not guarantee sales. The most it can do is generate interest in the product or create a

buzz around it. Take the case of Maruti Versa, which was launched amidst a lot of fanfare

about three years ago. In spite of Maruti signing up superstar Amitabh Bachchan and his

son Abhishek Bachchan as brand ambassadors for Versa, the brands sales remained

sluggish. To be fair, the Big B magic did work and the ads created significant interest,

drawing people into the showroom. But perhaps the positioning itself was faulty as

people were expecting a larger than life car, just like the brands ambassador. Last year,

we saw Versa being re-positioned as a family car, with the core proposition being, the

joy of traveling together. Maruti, Versa has started doing well and has witnessed an

upswing since the new positioning. Last year, the average sales were 80-100 vehicles a

month. Now they are selling 450 vehicles a month.

2. Brand-celebrity disconnect: If the celebrity used represents values that conflict with

the brand values and positioning, the advertising will create a conflict in the minds of the

target audience who may reject the proposition. Take for instance Toyota, one of worlds

leading auto companies. Toyota chose teeny-pop singer Britney Spears for its brand

Soluna Vios, a family sedan, which is preferred by married men and women with

children.

3. Clutter Flutter:In recent times, there has been such a deluge of cele

endorsements that it has led to the very clutter that it aimed to break. For instance,

Amitabh Bachchan endorses or has endorsed Pepsi, ICICI, BPL, Parker pens, Nerolac,

Dabur, Reid & Taylor, Maruti Versa, Cadbury and a few social messages too. Bollywood

badshah Shah Rukh Khan endorses Omega, Tag Heuer, Pepsi, Hyundai, Clinic All Clear

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and Airtel among other brands has to his credit more television commercials than feature

films since 1992. This over-exposure can be bad for the brand. Each celebrity is called

upon to push maybe a dozen brands or so. Which is great for the celebrity but it is pretty

daft for the brand because the impact of the celebrity reduces as the number of brands

him endorses increases. Unfortunately in India, we have too many brands chasing too few

celebrities. And the recall value drops by a huge margin when you move from an A Class

celebrity to a B Class.

4. Dissatisfaction with product performance: You cannot sell an ordinary product just

by making a celebrity endorse it. In fact, if anything, the product will fail faster because

the presence of the celebrity will create a buzz and more people will know about the

ordinariness of the product. Unfortunately using a celebrity seems to be the easy way

out of a parity product situation. Sachin Tendulkars endorsement of Fiat Palio was quite

a success initially. But as word about the poor fuel efficiency of Palio spread, its sales

took a beating. In this case, Sachins presence couldve worked wonders but for the poor

performance of the car in a market that is highly performance conscious.

5. Confusion/ Skepticism: The use of celebrities can be confusing. Some viewers forget

brand that a celebrity is approving. Others are so spellbound by the personality of the

celebrity that they completely fail to notice the product/brand being advertised. The brand

is overshadowed in the overwhelming presence of the star. In some cases, a celebrity can

give rise to skepticism because it might be a bit too much for the masses to believe that

the celebrities who are rich and can afford the best in the world are actually using a mass

product being advertised on television. On the contrary, people might speculate about

such things as how much did the brand pay to rope him/ her in as the brand

ambassador? (Journal of advertising - Vol 18, 1989).

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6. Risks associated with Celebrity Endorsements:Fame is a fickle and fleeting

companion and can ditch the famous at the slightest provocation. Celebrities, being

human, make mistakes. But their mistakes get as much attention as their celebrity status

and this can adversely affect the brands that they are endorsing. There are a number of

examples, both Indian and International, where scandals and scams involving celebrity

endorsers have caused embarrassment to the brands they endorse. Companies have to

make quick decisions when one of their endorsers comes under fire or their own image

could be tarnished. Guilty by association in a consumers eyes describes it best. If a brand

continues with the celebrity, it may adversely affect the image of the brand and

consequently, brand sales. If the brand chooses to distance itself with the tainted

celebrity, the huge costs spent on roping in the celebrity and making of the ads may go

down the drain and even then the association of the brand with the celebrity might by

then be so ingrained that the damage is already done.

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Essentials of celebrity endorsements

Attractiveness of the celebrity:This principle states that an attractive endorser

will have a positive impact on the endorsement. The endorser should be attractive

to the target audience in certain aspects like physical appearance, intellectual

capabilities, athletic competence, and lifestyle. It has been proved that an endorser

that appears attractive as defined above has a grater chance of enhancing the

memory of the brand that he/she endorses.

Credibility of the celebrity:This principle states that for any brand-celebrity

collaboration to be successful, the personal credibility of the celebrity is crucial.

Credibility is defined here as the celebrities perceived expertise

trustworthiness. As celebrity endorsements act as an external cue that enable

consumers to sift through the tremendous brand clutter in the market, the

credibility factor of the celebrity greatly influences the acceptance

consumers.

Meaning transfer between the celebrity and the brand:This principle states

that the success of the brand-celebrity collaboration heavily depends on the

compatibility between the brand and the celebrity in terms of identity, personality,

positioning in the market vis--vis competitors, and lifestyle. When a brand signson a celebrity, these are some of the compatibility factors that have to exist for the

brand to leverage the maximum from that collaboration.

Even though these three major principles must be adhered to by companies, practically it

might be difficult to find celebrities that satisfy all these three conditions. Depending on

the nature of the brand and the kind of product being used, companies can selectively

emphasize one factor over the other.

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Celebrity endorsements Dos and Donts

All brands must be aware of some of the important aspects of celebrity branding as

discussed below:

Consistency and long-term commitment:As with branding, companies should

try to maintain consistency between the endorser and the brand to establish a

strong personality and identity. More importantly, companies should vi

celebrity endorsements as long-term strategic decisions affecting the brand.

Three prerequisites to selecting celebrities:Before signing on celebrities to

endorse their brands, companies need to ensure that they meet three basic

prerequisites, namely the endorser should be attractive, have a positive image inthe society, and be perceived as having the necessary knowledge (although it

might be difficult for a celebrity to meet all three prerequisites)

Celebritybrand match:Consistent with the principles discussed earlier,

companies should ensure a match between the brand being endorsed and the

endorser so that the endorsements are able to strongly influence the thought

processes of consumers and create a positive perception of the brand.

Constant monitoring:Companies should monitor the behavior, conduct and

public image of the endorser continuously to minimize any potential negative

publicity. One of the most effective ways to do this is to ensure that celebrity

endorsement contracts are effectively drafted, keeping in mind any such negative

events.

Selecting unique endorsers:Companies should try to bring on board those

celebrities who do not endorse competitors products or other quite different

products, so that there is a clear transfer of personality and identity between the

endorser and the brand.

Timing:As celebrities command a high price tag, companies should be on the

constant lookout for emerging celebrities who show some promise and potential

and sign them on in their formative years if possible to ensure a winwin

situation.

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Brand over endorser:When celebrities are used to endorse brands, one obvious

result could be the potential overshadowing of the brand by the celebrity.

Companies should ensure that this does not happen by formulating advertising

collaterals and other communications.

Celebrity endorsement is just a channel:Companies must realize that having a

celebrity endorsing a brand is not a goal in itself; rather it is one part of the

communication mix that falls under the broader category of sponsor

marketing.

Celebrity ROI:Even though it is challenging to measure the effects of celebrity

endorsements on companies brands, companies should have a system combining

quantitative and qualitative measures to measure the overall effect of celebrity

endorsements on their brands.

Trademark and legal contracts:Companies should ensure that the celebrities

they hire are on proper legal terms so that they dont endorse competitors

products in the same product category, thereby creating confusion in the minds of

the consumers.

These guidelines are intended to provide companies a useful framework that they can use

while deciding on the celebrities to endorse their brand.

Other factors effecting the brand

Experience of use:This encapsulates familiarity and proven reliability.

User associations:Brands acquire images from the type of people who are seen

using them. Images of prestige or success are imbibed when brands are associated

with glamorous personalities.

Belief in efficiency:Ranking from consumer associations, newspaper editorialsetc.

Brand appearance:Design of brand offers clues to quality and affe

preferences.

Manufacturers name & reputation:A prominent brand name

(Sony,Kelloggs,Bajaj,Tata) transfers positive associations

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The celebritys role is the most explicit and profound in incarnating user associations

among the above-mentioned points. To comprehend this, let us analyze the multiplier

effect formula for a successful brand:

S=P* D*AV --the multiplier effect where S is a successful brand, P is an effective

product. D is Distinctive Identity and AV is Added values.

The realm of the celebritys impact is confined to bestow a distinctive identity and

provide AV to the brand; the celebrity does not have the power to improve or debilitate

the efficiency and features of the core product. Thus, we are gradually approaching an

evident proposition claiming,

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 cynical about celebrity endorsements.

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Certain parameters that postulate compatibility

between the celebrity and brand image are:

Celebritys fit with the brand image.

CelebrityTarget audience match

Celebrity associated values.

Costs of acquiring the celebrity.

CelebrityProduct match.

Celebrity controversy risk.

Celebrity popularity.

Celebrity availability.

Celebrity physical attractiveness.

Celebrity credibility.

Celebrity prior endorsements.

Whether celebrity is a brand user.

Celebrity profession.

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CelebrityEndorsement:Does it cloud the Product Promise?

Celebrity endorsement has come a long way since Adidas gesture of encouragement

towards Jesse Owens by providing him free shoes during the 1936 Berlin Olympics.

Today Nikes whopping spend of $100 million on Tiger Woods is only a small part of its

total advertising budget. In the world of advertising and marketing communication,

celebrity endorsement has grown in gigantic leaps to reach a level where it has spawned a

separate industry in itself.

Popular personalities who enjoy public recognition amongst a huge slice of a articular

segment of the population or the entire population are celebrities. Invariably, their very

presence conveys the message Im rich, famous, talented, beautiful, intelligent and you

aspire to be like me. I actually think this product is great. Why dont you buy it and

become like me? Illustratively, it is unimaginable to imagine advertising in India

without actors like Amitabh Bachchan sentences!!(Parker, Reid & Taylor, Cadburys and

what not) & Shah Rukh Khan (Videocon, Santro, Pepsi and lots more), models likeMalaika Arora (Pizza Hut) sports athletes like SachinTendulkar (Pepsi, Palio and lots

more) & Sania Mirza (Tata Tea, HP and a host of others to follow in the near future)

entertainers like Shekar Suman (Pan Pasand) and Javed Jaffery (Maggie Sauce) and pop

stars but also for less obvious groups like businessmen ( Donald Trump, Bill Gates) or

politicians ( Rudy Giuliani, Lee Kuan Yew). Its also heartening to see people like

Prahlad Kakkar and Gayatri Devi endorsing products rising above the mu

Bollywood and sports crowd. Increasingly, marketing firms and advertising companies

are opting for non-human spokes-characters. The theory behind this, of course, is that an

animated figure or charming logo cant become embroiled in controversy. Additionally,

the figure itself is a marketable entity, for sale on shelves across the country

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Different Blokes for Different Folks!

In India, characterized by a diversified audience, requires relevant celebrities to reach theappropriate target segments. Multinational giants like Pepsi and Coke have realized the

importance of relevant celebrity endorsement and have gone in for regional celebrities

like Vijay, Vikram, Surya and Chiranjeevi while at the same time catering to the national

markets with Shah Rukh Khan and Aamir Khan. ITC, which recently entered the biscuits

segment threatening to break Britannias stranglehold, uses Vijay and Chiranjeevi as its

endorsers. Mirinda leverages on Trishas appeal in the regional market while Rani

Mukherjee is the national advertising campaigns endorser. This goes on to prove that in

advertising the most effective policy is to use Different Blokes for different Folks!

This is why Reid & Taylor has wisely switched over to Amitabh Bachan in India rather

than continuing with Pierce Brosnan.

Celebrities have the advantage of publicity and the attention getting power required for

any successful advertising campaign. Most celebrities also enjoy enormous goodwill. The

associations made with them also help the product they are endorsing.

On the other hand, celebrity endorsement also has a negative side. Again, Celebrities are

not experts except in a few situations. Eponymous brandings like those using Amitabh

Bachan, Lata Mangeskar and Shah Rukh Khan are among the latest trends of over

exploitation of a celebritys image.

The only differentiation enjoyed by these products is the name of the celebrity they carry

while the product promise is completely glossed over. Familiarity begets contempt and

after a period of time, the erosion of the celebritys equity, due to continuous usage and

diverse associations, cannot be prevented. Govinda was just what the doctor ordered for

Emamis Navratan Tel. But Amitabh Bachan doing it is incongruent with his image.

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Increasing of products has resulted in a filtering out of unwanted information by the

human mind. The mind as a defence against the volume of todays communications

screens and rejects much of the information offered to it. In general the mind accepts only

that which matches prior knowledge or experience. Like an over-saturated sponge, it

cannot absorb any more and automatically defends itself like a fortress against intrusions

making the advertisers job more difficult. What Al Ries and Jack Trout said two decades

ago was without taking into consideration the incredible magnitude media fragmentation

and the numerous input streams that are bombarding the human mind each and every

minute. In the midst of todays cluttering, it becomes all more important for the advertiser

to capture the attention of the consumer.

Today Customers follow:

Zip mode- pressing the FF (fast-forward) button

Zap mode - channel swapping, giving the advertiser only a few seconds to grasp their

attention. Instinctive changing of channels is prevented if the first few seconds of the

advertisement manage to grip the audiences attention.

Undeniably, Celebrities help to sell products. Even on packaging, described by Kotler as

a five second commercial, they speak out for the brands from the shop shelve and

entice customers through their mass appeal. Juhis endorsement of Kurkure not only in

the television commercial but also through her presence on the packaging emphasizes the

unrestricted power of the celebrity to enhance your sales time and again by drawing

attention to your brand at the most critical juncture.

In case you are fortunate enough to have an endorser with an iconic image like

Tendulkar, and you have managed to establish a strong association between your brand

and your endorser in the mind of your consumer as has MRF, there are plenty of ways

you can leverage on this association in addition to the commercial.

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Every time Tendulkar walks out to bat, every time he plays his pleasing straight drives or

breathtaking pull shots, your Brands logo flashes on screen in front of the millions

watching and it doesnt take a Brand Guru to ascertain that your Brand Image is growing

by leaps and bounds in the minds of your target audience. Every time the maestro crosses

a landmark in his career the inevitable acknowledgement is there from the Brand, saluting

the Endorser proudly. But here again we should remember that Tendulkar endorses a

variety of other products which do not in actual fact get to enjoy the privilege of

leveraging on the media exposure of the celebrity apart from in the commercial simply

because they have not indelibly established the connection between the Brand and the

endorser in the consumers mind.

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Aamir Khan, credited with the resurrection of Coke with his flamboyant Thanda Matlab

Coca-Cola campaign, was, during the early stages of his trudge towards stardom, the

poster boy of Cokes archrival Pepsi. In a decade old advertisement for Pepsi, he dodges

heavy traffic, executes unbelievable stunts worthy of a Jedi warrior and apparently does

everything to put his life at risk to win the favour of thirsty damsels, Aishwarya Rai and

Mahima Choudry, by getting them their favourite Pepsi. Public memory being so short

has enabled Coke to make him their chief endorser along with the same Aishwarya for

the same company.

It is essential that there should be a logically associative connect betwe

characteristics of the product and what the celebrities stand for. Preity Zinta and Rani

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Mukherjee lending their vivacious and bubbly characters to Nestles Perk and Cadburys

Munch respectively is a classic example. Similarly having Sania Mirza endorse Tennis

Racquets or Sports shoes is a perfect fit. But is she completely pertinent to the services of

a reputed Oil Concern?

DOES CELEBRITY ENDORSEMENT

REALLY WORKS?

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Does Celebrity Endorsement really works?Theoretically yes, because the qualities

associated with the endorser are associated with the brand and the brand therefore

remains at the top of the consumer's mind. However one needs to realize that the impact

of an endorser cannot be sustainable in all product categories and in all the stages of

brand life cycles. It really depends upon the type of product. If it is a 'functional brand',

then the product itself is the hero. Here any celebrity association with the brand without

corresponding performance of the product will not be sustainable. While incase of image

brands, like the categories of soaps, soft drinks, cigarettes etc., where it is difficult to

distinguish between the products, celebrity endorsements help to distinguish between the

brands at an emotional level.

A research conducted by Synovate, a global market research firm, revealed that 47%people would be more likely to buy a brand that was endorsed by their favorite celebrity.

Pepsi Co. has used a variety of celebrities including Aishwarya Rai, Hrithik Roshan,

Amitabh Bachchan, Kareena Kapoor, Rahul Khanna, Fardeen Khan, Sachin Tendulkar

etc. Amongst advertisements featuring celebrities, Pepsi tops the heap with the highest

recall of 70%, while archrival Coke is lower across all markets with 52% recall. This

proves that Pepsi has really exploited the use of celebrities in their advertisements and

has worked.

Hindustan Lever's 'Lux' soap in India has been using popular film actresses to endorse the

soap since its launch four decades ago implying that they owe their stunning looks to the

brand. This consistent message hence reinforces the brand values and has

successfully able to position the soap rightly as the 'beauty soap'.

It would be difficult to judge the direct effect of celebrity endorsement on the sales or

profits of the company. On Amitabh Bachchan endorsing RIN, an HLL spokesperson

says that it was too early to gauge the success of 'RIN' in terms of sales and that though

Dabur healthcare products sales had improved, the increase could not be solely attributed

to him. Similarly, there are also cases wherein there was a dramatic change in the sales

figure after the endorsements. For example Rahul Malhotra, Associate Dir

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Marketing, P&G India quotes "Certainly, it has helped us promote our brand 'Head &

Shoulders'. Last year, we were ranked as No. 2 and this year we are market leaders in this

segment with over 45% market share".

D. Garg, Vice-President (Marketing), Dabur India Ltd quotes, "A celebrity does help in

increasing brand sales, but only if he/she is selected carefully and used effectively.

The personality of the brand and the celebrity have to complement each other and

the selection of the celebrity is, therefore, very important."

Impact of Celebrity Endorsements on Overall

Brand

Positive Impacts of Celebrity Endorsement on the

Brand

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Approval of a brand by a star fosters a sense of trust for that brand among the target

audience. This is especially true in case of new product. Celebrities ensure attention of

the target group by breaking the clutter of advertisements and making the advertisement

and the brand more noticeable. A celebrity's preference for a brand gives out a persuasive

message and hence, because the celebrity is benefiting from the brand, the consumer will

also benefit. There is a demographic and psychographic connection between the stars and

their fans. Demographic connection establishes that different stars appeal differently to

various demographic segments i.e. age, gender, class, geography etc., w

psychographic connection establishes that stars are loved and adored by their fans. Some

stars have a universal appeal and therefore, prove to be a good bet to generate interest

among the masses. Another invaluable benefit from celebrity endorsements is the public

relation opportunities.

Dwane Hal Dean studied the effects of three extrinsic advertisement cues viz. third party

endorsement, event sponsorship and brand popularity on brand / manufacturer evaluation.

It was observed that endorsement significantly affected only product variables (quality

and uniqueness) and one image variable (esteem). The third party endorsement hence

may be perceived as a signal of product quality.

Goldsmith assessed the impact of endorser and corporate credibility on attitude-toward-

the-ad, attitude-toward-the-brand, and purchase intentions. 152 adult consumers were

surveyed who viewed a fictitious advertisement for Mobil Oil Company.

They rated the credibility of the ad's endorser, the credibility of the company, and

attitude-toward-the-ad (Aad), attitude-toward-the-brand (AB), and purchase intentions. It

was observed that endorser credibility had its strongest impact on Ad while corporate

credibility had its strongest impact on AB. The findings suggest that corporate credibility

plays an important role in consumers reactions to advertisements and brands, independent

of the equally important role of endorser credibility.

Looking at the effect of celebrity endorsement on the wealth of a company a classic

example of Michael Jordan can be used. At the time of rumors of Michael Jordan

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returning to NBA in 1995, he was endorsing products of General Mills (Wheaties),

Mc'Donalds (Quarter Pounders, Value Meals), Nike (Air Jordan), Quaker

(Gatorade) and Sara Lee (Hans Underwear). Study conducted by Mathuret al.14

associated with Jordan's endorsements shows that the anticipation of Jordan's return to

NBA, and the related increased visibility for him resulted in increase in the market

adjusted values of his client firms of almost 2 percent, or more than $1 billon in stock

market value. From this study one can observe that the major celebrity endorser with

rumors or otherwise has a tremendous potential to influence the profitability of endorsed

products.

Semi-partial endorsement indicates that when a company uses famous characters from

any TV soaps for brand endorsements, consumers tend to relate to the character that he orshe plays in the soap and hence can attract more credibility. For example, Smriti Irani

who plays 'Tulsi' in a famous soap has garnered a lot of support from the middle-class

housewife today. If she would endorse a brand, there would be more relativity and

credibility. Same can be said about Priya Tendulkar who used to play the character of

Rajani.

The other benefits that celebrity endorsement are:

Quicksaliency: It gets cut through because of the star and his attention getting value.

Good lass 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, Shah Rukh and their ilk's 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.

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Boost is the secret of our energy

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.

Negative impacts of Celebrity Endorsement on the

brand

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More often talked about is the extreme usage of a celebrity called 'lazy advertising', that

is inadequate content masked by usage of a celebrity . A good example is the use of Boris

Becker by Siyaram and Steve Waugh by ANP Sanmar. Also as said earlier, associating

with a star, in itself does not guarantee sales. There is also the fear of Brand-celebrity

disconnect which points out that if the celebrity used represents values that conflict with

the brand values, the advertising would create conflict in the minds of the target audience.

Clutter in brand endorsements is very prominent these days and such kind of over-

exposure can be bad for the brand as the recall value drops by a huge margin. A popular

drawback of celebrity endorsement is the 'Vampire Effect' or the celebrity overshadowing

the brand. Some viewers forget the brand that a celebrity is approving. Others are so

spellbound by the personality of the celebrity that they completely fail to notice the brandbeing advertised. Two new drawbacks can be seen these days what marketers call

Celebrity Trap and

Celebrity Credibility.

Celebrity trap is when the celebrity becomes an addiction for the marketing team and the

task to find substitutes becomes more and more difficult, leading to surfeit of celebrities.

Celebrity credibility refers to skepticism by the consumers regarding the celebrities,especially when there is anything negative regarding the celebrity associated with the

brand in the news, then brand is bound to be affected. For example, Air Jordan's

generated revenue sales of $130 million in the first year. The sales dropped miserably in

the second year when Jordan missed 62 games due to a broken foot. Another main worry

of the advertisers is that their celebrity endorser would get caught in a scandal or an

embarrassing situation.

Multiple product endorsement also has a negative impact on customers' purchasing

intentions. Tripp et al.investigated the effects of multiple product endorsement by

celebrities on customers' attitudes and intentions.

They found that the number of products a celebrity endorses negatively influences

consumer perception of the endorser and the advertising itself. It was suggested that when

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'Rejoice' brand in India with testimonials from ordinary women in their TV advertising.

Few more examples of this will be Lifebuoy, Wheel, Dettol, Close Up, Fevicol etc.

India's Top Marketing Tool? Two Middle-aged

Bollywood Stars

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The king is dead - long live the king! This was the spirit of a recent announcement that

the reigning titan of India's film industry, Amitabh Bachchan, was being replaced as host

of the nation's most popular television program by the younger star, Shah Rukh Khan.

More than just television trivia, the news hinted at the passing of an era, the handing of a

Bollywood crown from one generation to another. The significance of the moment was

reflected in the front-page coverage and editorial analysis it received.

The two actors are megastars on a level unmatched by their rivals. No one bothers with

their full names - they are the Big B and King Khan. While the fortunes of most of their

peers in Bollywood flare and wane according to their latest films, these two have an

enduring appeal, impervious to the occasional cinematic flop.

Despite their age difference, what unites Khan and Bachchan is their supreme ability to

sell anything. More than mere Bollywood heroes, they are gods of the marketing world.

Both have become walking billboards, and between them, they represent a prized

gateway to the sought-after middle-class Indian spender.

Since it started in 2000, the Indian version of "Who Wants to Be a Millionaire?" (KBK)

has been hosted with sober dignity by Bachchan, 64. No program on Indian television

(since satellite was introduced in the 1990s) has been as popular as this game show. With

its implicit approbation of avarice, it hit a chord at a moment when India was becoming

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obsessed with consumption and wealth - promising a path to riches much swifter than the

government's poverty eradication schemes. At its peak it was taking 75 percent of the

audience share.

Lock Kiya Jaye

Star TV, whose fortune in India rests on the success of this flagship game show, revealed

that the cheekier, younger Khan, 41, would be taking over the show at the earliest of this

year..

There was a certain logic to this Bollywood succession announcement. No other star

comes as close to the stature of Bachchan as Khan does. The two men are figureheads of

middle-class India, and each represents the experiences of his own generation. When

Bachchan decided he no longer wanted to host the show (after an enforced break from

work caused by painful stomach surgery), Star TV executives decided a younger star

would give the show a needed face-lift.

"There is a new, booming, exciting generation out there. Fifty percent of the country is

below the age of 30. Shah Rukh Khan will speak to them," said Sameer Nair, chief

executive of Star Entertainment in India. Naturally, the show's producers are guided by a

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keen business sense. The cost of a 30-second advertising slot in the new series has risen

by 30 percent as a result of signing up Khan as host.

Freeze Kiya Jaye

Both actors endorse a vast (and bizarrely diverse) array of products.

Advertisers describe Bachchan as "India's most salable face." On top of filming ninemovies, last year he advertised everything from Pepsi, pens, hair oil, diamonds, suits,

bank accounts, chocolate, antiseptic cream, batteries, diet supplements and real estate, to

washing powder. These contracts took his annual income to an estimated 190 million

rupees, or about $4 million.

In perplexing ad-speak, Khan is "diamond" to Bachchan's "gold dust." Khan's list of

endorsements is growing rapidly - embracing Pepsi, as well as Tag Heuer watches,

motorbikes, cellphones, whiskey, suits, Sunfeast Dream Cream Biscuits, Top Ramen

Curry Smoodles and Frooti drinks - inflating his earnings to approximately 130 million

rupees. In 2005, he advertised a total of 21 brands on television.

"Advertisers go for one or the other. They are always looking for ways to talk to India's

middle classes, and they fall over each other to get them to sign up," said Amit Agnihotri,

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Celebrity endorsements, a double edged sword

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They sizzle on the screens with their dance moves, larger than life image and their sex

appeal, making them instant icons for many in this country hungry for celebrity news.

Celebrities have always been in limelight either for reel life or their endorsements orsupport for causes ranging from AIDS to child welfare and eye donation. But, with recent

Richard Gere and Shilpa Shetty controversy generating publicity rage for the peck than

the cause -AIDS awareness- the issue of celebrity involvement has generated a debate.

"No doubt, that celebrities help in getting an issue highlighted. But at the same time, it is

also very important to choose the right kind of celebrity for the right cause," says Anjali

Gopalan, Executive Director, NAZ Foundation India, an NGO working for AIDS

victims. Other social activist also seems to agree that celebrities do help in promoting a

social issue. "When celebrities or people holding public offices, lend their name and time

to a particular NGO, people tend to take it at their face value. Somehow, a sense of

credibility creeps into people's mind. But then, in the end, its the NGO's work which

should speak for itself," says T K Mathew, Secretary and Chief Executive, Deepalaya, an

NGO working for education and betterment of slum children.

Celebrities who have been and are associated with Deepalya include Nafisa Ali,

Manpreet Brar and Raghu Rai among other eminent former bureaucrats. Sources with

CRY, one of the largest NGOs in India working for child rights point out that the basic

need for celebrities is felt so as to give the project a wider publicity. "It is like a chicken

and egg story. When a celebrity comes into the picture, there is a curiosity element. But

then at times, the media focus might just end up on the celebrity alone like in some recent

cases," states an activist from CRY. The above activist points out that many a time,

celebrities do ask for monetary returns. "Yes, some celebrities do charge for lending their

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name to a particular cause," he points out while adding that then it is up to the NGO to

decide on the ethical aspect of it.

"Many NGOs like ours don't promote such activities but yes, it does happen," he says.

With NGOs clamoring for wider publicity, celebrities seem to have got hold of a goldenhen. "It is a fact that celebrities help in increasing the visibility of a particular cause and

also that many celebrities charge for such activities. Last year, I was in touch with a noted

celebrity who lends her name to lot of social causes but I was completely taken off guard

when she asked me how much we are willing to pay her," says Reshmi Ramakrishnan, a

social activist who once also headed, Make a Wish Foundation, India and Sesame

Workshop India.

She further adds, "Not long ago, NGOs had their own bad time when they were accused

of siphoning of money meant for social causes. So, they adopted a commercial conceptwhere you bring in a celebrity to speak for you. Visibility and credibility increases and at

times the inflow of money for a particular cause increase. But one should also remember

than some celebrities really feel for a cause and are deeply involved with various social

activities." Gopalan supports her and says, "Yes, it does happen but it is the NGO's call

to decide what it wants to do."

Bachchan polio Ad

Another activist points out that celebrities are indeed important but even they need propercoverage and marketing. "When Amitabh Bachchan famously came out promoting Polio

vaccination campaign of the central government, it became a national mission for the

common man. But, on the other hand when Aamir Khan voiced his concern in support of

Narmada Bachao Andolan, it became a political issue," she points out.

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Along with Mathew, Gopalan is of the view that no cause can move forward just because

of celebrity involvement alone. "The much talked about Polio campaign by Bachchan and

Sachin Tendulkar became a success because it was fully backed by government and out

reach workers and not just because of celebrities," she says.

Even psychologists and psychiatrists agree that celebrities do have a huge influence.

"There is an inherent curiosity about celebrities. When celebrities speak, people tend to

listen and take notice. There is no denying this fact," states Anita Mahajan, Psychiatrist.

As Gopalan says, "Celebrities are like a double edged sword and their presence

definitely helps but at times it can be the other way round too".

Product Endorsements by Cricketers a necessity !!!!

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Accusations made against the Indian cricketers about dwindling performance, as they

focus more attention on product modeling for MNCs than on the sport, have left former

Indian skipper and star all-rounder Kapil Dev unimpressed. Talking to The Times Of

India , Kapil Dev said that the career of a cricketer is very short-lived and therefore,

making a personal fortune is no misdeed.

In spite of all positive rationales about cricket players turning mercenaries, spending big

money on cricketers endorsements of products and services has become the new mantra

of MNCs.

Several contemporary cricket players like Sachin Tendulkar, Sourav Ganguly, Yuvraj

Singh, Virendra Sehwag, Rahul Dravid and former test players like Sunil Gavaskar and

Kapil Dev have all been signed up by MNCs as their brand amba

Kapil Dev who is currently the brand ambassador for Pune based Kinetic Engineering

Ltd may even get a stake in the company - which is one of the largest manufacturers of

two-wheelers in the country.

The latest trend set by MNCs like Pepsi, Coca Cola, Britannia, Kinetic, mobile handset

companies like Hutch, and Reliance, to name just a few, have recruited cricket players to

endorse their products, admitted Mr Punit Choudhary, General Manager of Kinetic

Engineering Ltd.

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Celebrity endorsements for products especially cricket players have become a big money

spinning business in the ad industry in which over Rs 350 crore has been spent till date

by various two wheeler companies, avers Choudhary. Sports, and for that cricket, has

always signified positive results and thus, sports related advertisements have received an

encouraging response from the consumers, Choudhary said. This brand building trend has

made the image of Indian cricketers bigger than life.

In the past Raj Singh Dungarpur, former President of the Board of Control for Cricket

(BCCI) had endorsed this trend, saying Of late there has been more money in it than

runs scored by the Indian cricket team;

Reacting to the bad performance in the recently concluded World Cup, Kapil Dev said:

The Indian team continues to be one of the best teams in the world but the only thing in

which it lacks is apparently physical fitness which has turned into a major weakness.

The general perception that Indias defeat was on account of Captain Sourav Gangulys

thoughtlessness even after wining the toss against Australia in the World Cup final and

opting to field has no relevance to the ultimate outcome says Kapil. He goes on to add,

The toss is sheer luck and the balance depends on the strong will of batting, bowling and

fielding. According to me the Australian team is one of the fittest teams in the world and

India fell short of effective bowling coupled with absence of all-rounder in comparison to

the Indian team in the early eighties.

It is a fact that investment in sports related ad promotions have been growing at a fast

pace and these have made cricket players some of the highest paid people, even

surpassing cine stars.

DHONI POWER

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Mahendra Singh Dhoni is the latest poster boy of Indian Cricket

When the Indian cricket team arrived in Bangalore recently it was the man from

Jharkhand - Mahendra Singh Dhoni who grabbed all the attention with the press pack

hounding him. The televisions didn't get their sound bytes though, because the man has a

contract with one news channel, which gets exclusive access to him. This meant the print

media got Dhoni all for themselves a rare privilege at a time when celebrities are hard

to get if you don't wield a television camera!

So, what does he think about India agreeing to the 20-20 cricket concept? "Aap starting

hi karo controversy hatake. 20-20 math pucho yaar," Dhoni replied, making it clear this

conversation was going to have some very clearly defined boundaries. But after

persisting he said "Everything goes. Test match bhi, one dayers and even 20-20. It is an

interesting concept and is good for the spectators."

Over the last season, due to his exploits with the bat, Dhoni has emerged the latest poster

boy of Indian cricket. This even led to him being crowned the MTV Youth Icon of 2006.

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wherever I am part of cricket, soccer or any other game I am serious. I give 100 per

cent. I may succeed or lose. But when the day ends and when I go to my room, I should

be confident I did what I could."

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Celebrity Product Placement: A Primer

With more and more companies wanting to integrate their products into the lives of

celebrities, now seems like a good time to take a closer look at celebrity product

placement. Here are three common approaches and a description of what steps you can

take to encourage results.

The term "celebrity product placement" is used to describe several related techniques, but

its definition applies to each: free products are distributed to celebrities in expectation of

a promotional benefit. Unlike the more overt, paid-for endorsement, it offers a distinct

advantage. A product appears as a product choice made by a celebrity according to

individual preference.

Most marketers are unaware of their options in this category (one form features contracts

with celebrities, guaranteeing performance and allowing marketers to actively leverage

celebrity patrons in the media) and therefore many overlook a very powerful influencer-

marketing technique.

In this we will describe each of the three main approaches and discuss their relative

merits by listing their pros and cons. Also hope to quash any misconception that celebrity

product placement has to be a gamble, and show how best to secure a return on

investment. But first, a little history.

Celebrity product placement (sometimes called "celebrity seeding") has been with us

since the dawn of marketing. Centuries before Arnold Schwarzenegger stepped into his

first Hummer, an 18th century potter named Josiah Wedgwood began supplying his

wares to England's Queen Charlotte. Receiving the title "Potter to Her Majesty" led to ahuge amount of publicity for Wedgwood, which he took advantage of by using the term

"Queen's Ware" to describe his product.

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Those efforts that did succeed, however, were so successful that independent specialists

emerged to help companies achieve better results. But the services they offer vary, and so

do the results.

What's It All About?

Marketers have long known the power of celebrity to influence consumer-purchasing

decisions. The term "borrowed equity" has been used to describe how a celebrity

endorsement can bestow upon a product special attributes and cachet that it might not

otherwise have.

The same concept applies to celebrity product placement. But unlike ce

endorsements, where a highly compensated personality appears in commerc

advertising, celebrity product placement offers marketers a more subtle and highly

effective means of reaching the publicvia the media they consume by choice.

Indeed, celebrity product placement is as much about placing products with celebrities as

it is about getting stories about those relationships into the press. Regardless of the

approach, celebrity product placement strategies have a common aim: to tie celebrities

(thought leaders, influencers) with consumer products in the public consciousness.

Three techniques offer three levels of control over that placement:

1. Gifting the talent (this usually involves supplying products for gift bags at live

events)

2. Product seeding (products are distributed more widely in hopes of securing a

promotional benefit and kicking off a trend)

3. Barter relationships (individual celebrities agree to participate in custom programs

in exchange for valuable products).

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Let's take a look at each one in greater detail.

Gifting the Talent

"Everybody" knows that celebrities own all the coolest stuffand they own it well

before everybody else. Celebrities travel the world, and the minutest details of their daily

lives pervade the media. As style leaders, they are perhaps our most powerful influencers.

It's no wonder that companies are lining up to give them the latest gifts and gadgets for

free.

One method of doing this is called "gifting the talent." This generally involves supplyingfree product for insertion into "goody bags" that are handed out as thank-you gifts to

celebrity presenters and award nominees at the now-countless awards shows and charity

benefits that dot the entertainment landscape.

At last year's Academy Awards, for example, one of two Best Actress gift bags featured

Gucci sunglasses, a Sprint PCS phone, Christian Tse 18-carat gold Iris earrings and more.

The Best Actor bag featured Gucci eyewear, a Maurice Lacroix Swiss watch and assorted

other goodies. According to news reports, the retail value of one such group of bags at the

Oscars exceeded $110,000 each!

But how effective is this practice? If the goal of celebrity product placement is to get

press coverage, can we measure the value of gift-bag placements? What types of products

are suitable and which are not? And what level of control does this strategy offer

marketers both in terms of demographics and reach?

There is no denying the value of being associated with these glitzy events and, by

extension, the celebrities who populate them. On the plus side, they offer a rare

opportunity to get close to the biggest stars in the world. On the minus side, the marketer

has no control in matching up celebrities who hold sway over their

demographic. They have to play the cards they are dealt.

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Gifting the talent at award shows virtually guarantees mentions in the celebrity press at

the time of the event. But without permission to associate the celebrity's name and

likeness with the product, marketers don't have the leeway to truly leverage those

relationships in their own press activities.

Gifting the talent in this way has other limitations: first-movers snap up desirable

categories, and of course not all products are deemed appropriate. You won't find an

energy drink in these bags.

Product Seeding

Product seeding offers marketers more control over whom to place products with; but,

conversely, they have less control over how (or whether) those products get used. And

while virtually any productfrom bottled water to consumer electronicscan be seeded

with celebrities, marketers are playing the odds here. But the payoff can be huge if the

seeding is supported by a creative strategy.

Product seeding is the oldest form of celebrity product placement. Products

distributed more widely. They can be aimed at celebrities who are most compelling to

your demographic. And they can be delivered directly to the celebrity without the filters

imposed by events. Of course, working with a specialist who can get your product

directly to celebrities becomes paramount here. Film and television product placement

agencies are NOT set up for this practice.

Taken by itself, product seeding is a gamble. If you send enough freebies to Hollywood

but don't have a creative strategy, a celebrity might be photographed using your product

or evangelizing it on a talk show. But if one looks at product seeding as one tactic in a

larger celebrity product placement effort, it can pay big dividendsparticularly inidentifying celebrities who have a true affinity for your product.

Energy Brands, makers of the Glaceau Vitamin Water line, discovered. As a result of its

long-time strategy to "home-deliver" the vitamin-enhanced drink to celebrities (including

Sean "Puffy" Combs and Tom Cruise), the company gained a fan in 50 Cent.

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Having mentioned his preference for the product in a series of interviews, the Hip Hop

starwho is well known for his fitness-centered lifestylebecame an obvious choice for

brand spokesperson.

Speaking to Ad Age magazine, Energy Brands VP of marketing, Rohan Oza, said,

"We've seen that when 50 Cent incorporates [Vitamin Water] into his daily routine...the

brand gets on the airwaves, and we create a lot of trial." Making vitamin water a visible

part of the rapper's healthy lifestyle worked so well that the company launched a new

"Formula 50" variety, named for the artist. Such "organic" relationships can grow from

product seeding. Not only do marketers benefit from press mentions, but the process can

also be used to uncover promotional opportunities and (in some cases) identify the most

ideal product endorsers.

Product seeding remains a gamble. But, if executed properly, it's one well worth taking.

Relatively speaking, it is a low-cost marketing program. And the return on investment

though difficult to forecast compared with barter relationships (discussed below)can be

big.

But what if your goal is limited to getting press mentions? Can a publicist hedge his or

her bets in this category?

One of the great things about product seeding is how creative you can get. For Trident

White chewing gum, the company commissioned a Harris poll asking the public to vote

on the best "celebrity smiles." Company, which specializes in celebrity p

placement, delivered gift baskets of the product to the top six winners, allowing Trident

to plug the celebrities in their press materials.

On another occasion, Electroluxmaker of a new high-end, super-quiet vacuum cleaner

wanted to align their product with celebrities. We identified six celebrity moms who

had recently given birth andtouting the fact that these vacuums would not wake a

sleeping babymade gifts of the product to each. Here again, the company was able to

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use celebrities to draw press coverage for its product. And they were able to reference

these celebrities because they were stating facts (a gift was made to...).

But what if you want tighter integration with celebrities? Suppose you need to forecast a

return on investment in order to get approval for a celebrity product placement

campaign? And what if you want celebrities to provide feedback about your product and

authorize use of their names and likenesses as part of your press campaign?

Barter Relationships

Barter is, perhaps, the only way to guarantee performance on the part of the celebrity.

Unlike other forms of gifting, this is a quid pro quo relationship, whereby the celebrity

agrees in advance to participate in the marketer's promotional activitiesin exchange for

valuable product.

Celebrity product placement campaigns of this type work best for big-ticket items such as

consumer electronics and (the loan of) cars. But with creative approaches, special product

questionnaires and generous "right of publicity" agreements, marketers can use the

celebrity's name, likeness and opinion as part of their public relations campaigns.

Celebrity product placementvia barter agreementsis also among the most affordable

ways to use celebrities. For the price of a few products, and sometimes a token

honorarium, companies can integrate testimonials into their PR materials and create

customized celebrity content for their Web sites.

They can involve numerous stars in a press campaign for less than the cost of a single

paid celebrity spokesperson. It is one of the most underexploited tactics available to

marketers today.

Here's an example. The Sony CD Mavicaat the time, the only digital camera offering a

built-in CD-ROMhad failed to penetrate the increasingly crowded market for digital

imaging products. This was troubling for Sony, because the CD Mavica offered a clear

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advantage over its competitors: freedom from wires. But that message had failed to reach

the public.

Sony wanted to involve celebrities with its products and wanted that involvement to

influence the public in a meaningful way. They sought a high-profile eventpreferably

benefiting charityupon which to launch a yearlong press campaign in time for the

Christmas shopping season. The focus was to promote the simplicity of CD-based

photography.

The budget was limited but, having learned that the latest Sony products could be made

available to gift the talent, we proposed a celebrity product placement campaign. Each

celebrity would be asked to take a picture of what "Freedom" means to them, and those

photos would be auctioned off for charity.

Such an artistic challenge, coupled with the prospect of receiving free Sony products, not

only served to induce celebrities to participate but also offered us an extraordinary

opportunity to frame these pictures and mount an exhibition that raised money for

charity. Indeed, the charity component attracted higher-caliber celebrities and provided

the "hook" to draw media attention.

We successfully placed the Sony CD Mavica digital camera with 15 top stars, including

Eric McCormack, Alyssa Milano and Dennis Hopper. The photographs were then offered

for sale on eBay as part of Wired magazine's annual charity auction and also put on

display at a star-studded event in Los Angeles.

Fifteen top celebrities demonstrated the practical use of Sony's product and authorized

the use of their names, likenesses and opinions about the product for press and marketing

purposes (for one year). Sony received free advertising for its product in print and online

for three months (worth an estimated $100,000), as well as 3.6 million web page

impressions (auction as a whole) and national press coverage, including Entertainment

Tonight.

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CASE STUDY

The Siyaram Celebrity Endorsement Experience

We have enough of film stock for a whole year. Unfortunately we cant use them

anymore.- N Gangadhar, General Manager (Marketing), Siyaram Silk Mi

commenting on the withdrawal of the J Hampstead advertisement campaign, in April

2000..

THE CRONJE SCANDAL

In April 2000, the New Delhi police unearthed one of the biggest scandals ever to hit the

world of cricket. While investigating a local corruption case, officials recorded phone

conversations between Hansie Cronje (Cronje), the captain of the South African cricket

team, and Sanjeev Chawla, a London-based Indian businessman. The conversation in the

tapes seemed to implicate both men in illegal betting on a match played in February 2000

in India. After initial denials, Cronje conceded that he had accepted $ 15,000 to fix the

match[1] . The news shocked both cricket fans and the media alike - Cronjes face was

smeared with black paint on posters across the country.

Siyaram Silk Mills Ltd. (Siyaram), one of Indias leading textile companies, was also

affected badly by this controversy. Hansie Cronje was one of the key celebrity endorsers

for Siyarams J.Hampstead brand of clothing. The campaign featuring Cronje had been

running on the print, electronic and outdoor media from March 2000. Siyaram and itsadvertising agency, Percept, watched in dismay as their celebrity endorser turned into an

internationally hated sportsman overnight.The issue raised a heated debate in corporate

and media circles regarding the perils of using celebrity endorsement. Percept sources

commented,This mess is horrible.

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Siyaram pulled down all the billboards featuring the entire South African team across the

country. The J.Hampstead campaign was completely withdrawn, almost 20 days before it

completed its scheduled run on hoardings and television. The match-fixing scandal

seemed all set to force Siyaram and other Indian companies to rewrite the rules of

using celebrity endorsement as an integral part of their media plans.

BACKGROUND NOTE

Siyaram was a part of the Siyaram Poddar Group of companies, which had a turnover of

$ 209 billion in 2000-01. The group, founded in 1954, was into the textile (yarns, fabrics

and garments), paper/paperboards and tyre (rubber tyres and tubes) businesses. While

Govind Rubber Ltd. (GRL) was into the auto and bicycle tyres and tubes business,

Balkrishna Industries Ltd. (BIL) was into the manufacturing of paperboards, tyres/tubes

and synthetics. Siyarams businesses comprised fabrics and readymade garments. Its

popular brands included Oxemberg (shirts, trousers and jeans) and J.Hampstead (wool

fabric).

Siyaram was incorporated in June 1978 as a private limited company and was converted

into a public limited company in 1980. Siyaram Finance, its subsidiary, was into the

financial services business. Siyaram manufactured and marketed textiles, cotton, woollensynthetics and synthetic blends the main product being polyester blended worsted

fabrics[2]. In July 1993, Siyaram came out with a Rs 153 million rights issue to part-

finance a Rs 165 million expansion-cum-modernization project. While the family held

23% of the Rs 51 million equity, foreign collaborators, FIs and the public held 26%, 22%

and 8% respectively.

Siyaram had a strong presence in the lower and medium segment of the domestic suitings

market. The company had three manufacturing plants situated at Thane and Raigad in

Maharashtra and Silvassa in the union territory of Dadra & Nagar Haveli, producing over

27.5 million meters of fabrics annually. Siyaram had a 4% market share in the Rs 50

billion suitings and shirtings market. The other players included Vimal, M

Raymond, Digjam, Gwalior and Reid & Taylor etc.

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Siyaram retailed its products through 25 exclusive showrooms, besides its distributor

network of about 400 wholesale dealers and 50,000 retailers across the country. (The

number of exclusive showrooms was to be increased to 75 by August, 2002.) The

company also exported its products to Europe, South America, South Africa, the Far East

and the Gulf countries. Siyarams sales increased from Rs 20 million in 1978 to Rs

3252.6 million in 2000-01.

Siyaram was one of the few non-FMCG companies in India that was known for its lavish

advertisements. The Coming Home To Siyaram campaign was reported to be one of

Indian advertisings costliest campaigns. The Coming Home To Siyara

advertisements were much talked about for being of much longer duration than the usual

advertisements[3] , and also for the huge budgets Siyaram set aside for them. Thecompany believed that good commercials helped it to effectively position its suitings on a

global platform. Siyaram officials said the companys focus on marketing

responsible to a great extent for its growth over the years.

Percept had conceptualized the Coming Home to Siyaram campaign in the early 1990s.

Over the years, the campaign established the brands association with true love for the

motherland, by showing successful men maintaining lasting, strong ties with their

families. Analysts commented that the campaign was largely responsible for Siyarams

high brand recall and positive consumer feedback. As part of its brand-building

initiatives, Siyaram also organized major sporting events like the triangular cricket series

Siyarams Cup, 1997 and Siyarams Celebrity Soccer 1998. The company also held

Siyaram fabric shows, aimed at increasing awareness among its target audience about the

companys range of products. For 2001-02, Siyaram had increased its advertising and

promotion budget to Rs 300 million from the 2000-01 level of Rs 200 million.

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models can be easily identified by both the masses as well the c

Siyaram had decided to use the South African team on the recommendation of Percept.

Gangadhar said, All along, the South African team had a clean image. So we had signed

up the entire team and not just one individual. When they were coming to Bombay (for

the match), we thought it was a very good opportunity and so decided to shoot with them

for the ads. Shailendra Singh, Joint Managing Director, Percept, said, Our brief is to

project J Hampstead as a global fashion brand. It is a high fashion brand that is successful

and sincere. Consciously, we thought that Hansie Cronje has a 82% success rate and nine

years experience as a captain. The advertisements featured the entire South African

team wearing the J Hampstead premium suitings. Within a month of the campaign being

released in the national media, the Cronje controversy surfaced. Siyaram continued

celebrity endorsement 100mks

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