LICENSING

Licensing creates contractual agreements whereby firms can use the names, logos, characters and so forth of other brands to market their own brands for some fixed fee. A firm is renting another brand to contribute to the brand equity of its own product ( As in the case of RED Products)

CELEBRITY ENDORSEMENT
A form of brand or advertising campaign that involves a well known and admired person using their fame to help promote a product or service. The need for celebrity endorsement 1. Instant brand awareness and recall 2. Celebrity values define, and refresh the brand image 3. Celebrity adds new dimensions to the brand image 4. Instant credibility or aspires PR coverage 5. Convincing clients.

Instances From The Case

(RED)s launch took place on the Oprah Winfrey show Supermodel Christy Turlington, actress Penelope Cruz, and hip-hop star Kanye West also came to model and buy (RED) products GAPs campaign also depicted celebrity endorsement , which included photographs of celebrity sponsorsed such as Steven Spielberg, Dakote Fanning, Penelope Cruz, Chris Rock and Mary J. Blige all wearing their favourite GAP (RED) apparel.