content 3 tiger woods - celebrity in ads

8/8/2019 Content 3 Tiger Woods - Celebrity in Ads

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How to Sell with

Celebrities, (especially Tiger Woods)

How to Sell with

Celebrities, (especially Tiger Woods)

University of NavarraSanjeev Nath


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One approving nod from a famous face

can translate into millions in brand

sales.

www.etstrategicmarketing.com


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What do they Advertise?What do they Advertise?

David Beckham

Vodaphone, Pepsi, Real Madrid

Annika Sorenstam

Calloway Golf, Mercedes Benz

Michael Jordan

Nike, Gatorade, Hanes

Tiger Woods

Buick, EA, Nike


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Why do Stars Make Sense?Why do Stars Make Sense?

What do you think?


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Establishes credibility for target audience

Creates a sense of trust

Great for new products, especially from an

established company

Attracts attention

Breaks through hundreds of advertisements

making the brand more easily visable


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Associative Benefit

If the celebrity uses the product and improves, so

will the consumer

Psychographic Benefit Since stars are loved, the feeling toward them

may translate to the product

Imitating the favorite sports or movie star I am Tiger Woods.


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Demographic Connect

Reaches a specific target audience based on

Age, gender, wealth, geography

Mass Appeal

Universal, able to reach more demographic

audiences


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Critics Against Celebrity AdsCritics Against Celebrity Ads

Why do you think celebrities are sometimes

a bad idea?


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Critics Against Celebrity AdsCritics Against Celebrity Ads

Brands need to have an identity

The product must stand for something, and the

celebrity should sell what the product stands for

I use this product, and so should you, doesnot work

Customers are now receiving more information

from a variety of sources: Internet, consumer awareness groups,

competitors


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Why Celebrity Ads FailWhy Celebrity Ads Fail

Improper Positioning

Relying on the celebrity name only does not

work:

Just because I use it, everyone should. No matterwhat the product is.

Brand Celebrity Disconnect

The celebrity does not match the product

E.g. Britney Spears for a Toyota family car

Soluna Vios.


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Clutter Flutter

Too many celebrities doing advertisements

reduces the advantage of this technique

The same celebrity advertises many products

Dissatisfaction with the Product Quality

Quality is more important than style

No celebrity can sell a flat soccer ball


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Confusion Skepticism

Remembering what the celebrity is advertising

Celebrity is so funny/interesting, the product is lost

Skeptical Questions: Is it possible that the celebrity was helped this

much by the product?

How much did the company pay the person tojoin?


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Risks with CelebritiesRisks with Celebrities

Celebrity Mistakes

Trouble with the law/drugs, scandals

E.g. Magic Johnson HIV issue

Company Reaction to mistakes

Continuing w/celebrity may affect the image

(Guilty by association)

Finding a new celebrity is very expensive Company may already be defined by

celebrity


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Hedging the RiskHedging the Risk

Look for perfect criminal and personal

record

Try to use more than one celebrity

Pepsi: Several Cricket, Basketball, and Film

stars

Avoid the Force-Fit


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Avoiding the Force FitAvoiding the Force Fit

Choose the celebrity based on the product

Never choose the celebrity and design the

message around them

The celebrity is not the ad, rather the means ofcommunicating a specific message

Add a celebrity after developing identity

Avoid using advertising to create the identity Protects against celebrity failures


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So Why a Tiger?So Why a Tiger?

Why is Tiger Woods a

marketers dream?


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So Why a Tiger?So Why a Tiger?

Many believe that Tiger

Woods is a Marketers

Dream

Lets look at his strongrelationships with the

products/companies that

he sponsors. We willfocus mainly on Nike

Golf


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Tiger plays golf...Tiger plays golf...

Golf

Number 1 Player in the

world for many years

Recognized as one of thebest players in history

Well respected by his

competitors

Player of the Year Title is

chosen by the players


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Tiger works with good people...Tiger works with good people...

Companies

Contain own strong identities:

Buick, EA, Nike

Nike: More than one celebrity If he fails, the company may not

Tigers association with one company helps sell

products for other companies (association)

E.g. Wears a Nike hat in other commercials

Companies are all associated with Golf

Buick Classic Golf Tournament

EA Sports Golf Game


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Tigers Product MixTigers Product Mix

Age 5 Age 95Age 45


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Tiger hits the rich and poor...Tiger hits the rich and poor...

Good two parent family Father African American, Mother is from Thailand

Family was not wealthy

Beautiful Wife Model from Swedan

Good looking, very smart

Attended Stanford, Writers often comment about his intellect

Name and face are easy to recognize

Clean criminal & personal record


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Tiger is liked by bad golfers...Tiger is liked by bad golfers...

Tiger supports a high quality product

Poor golfers (golfers starting out)

Will try anything to improve their game

Do not know what brand to choose between 30

Became interested in golf because of Tiger

Woods

Tiger Woods products are stylish May own the Tiger Woods video game

May want to be like Tiger.


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Tiger is liked by good golfers...Tiger is liked by good golfers...

Tiger supports a high quality product

Strong golfers (great players)

Often look for a new edge

May own a Buick or other Tiger sponsored

products

Feel of a champion (emotional connect)

Tigers clubs and ball are customized but Not everyone knows this fact


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Everyone likes our Tiger...Everyone likes our Tiger...

Low Wealth

High Wealth

Poor Golfers

Strong Golfers


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Nike Golf Ball Market ShareNike Golf Ball Market Share

How much ($) is Tiger worth?

Assume

1 = $1.30

.77 =$1.00


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Nike Golf Ball Market Share Percentages

6.3

9.5

00

2

4

6

8

10

Market Share

Market Share 0 6.3 9.5

1999 2001 2003


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Golf balls contain the 2nd most lucractive

industry margins ($500 million annually)

Since Tiger joined, golf balls have earned

Nike $72 million GM on a $100 million

contract

Note: Tiger sells otherNike products

besides golf balls

Assumption: 60% Gross Margin 6% Nike Market Share


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Conclusion: Its about...Conclusion: Its about...

Celebrities can communicate, but not save a

product!

Tiger is a fit for his products, better than

anyone else out there today.


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Major SourcesMajor Sources

www.estrategicmarketing.com

www.forbes.com

www.money.cnn.com

www.espn.com

www.indiantelevision.com

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