PROJECT PRESENTATION ON

IMPACT OF CELEBRITY ENDORSEMENT

PRESENTED BY: ASHWANI VATSA

TM/08/047
CONTENTS:
 Project Objective.
 Why do organization need celebrity endorsement.
 Selection process of a celebrity.
 Measuring celebrity endorsement.
 Argument for celebrity endorsement.
 Argument against celebrity endorsement.
 Findings of survey.
Main Objectives

 
 To understand consumer perception of the celebrities in advertisements.

 To understand the effectiveness of celebrity endorsement.

 To identify drawbacks associated with celebrity endorsement.

Why do Organization need celebrity endorsement

 Establish the product need.

 Create Brand Awareness.

 Set customer expectations.

 Create a purchase intention.

Selection process of a Celebrity
Measuring a Celebrity Endorsement

 The Q-SCORE Method

 The FRED Principle 

The argument for Celebrity Endorsement

 Establishment of Credibility

 Ensured Attention

 PR coverage

 Time saving

 Higher degree of recall

 Associative Benefit

 Mass Appeal
The argument against Celebrity Endorsement

 The reputation of the celebrity may derogate after he/she has endorsed the product.

 The vampire effect.

 Inconsistency in the professional popularity of the celebrity.

 Multi brand endorsements by the same celebrity would lead to overexposure.

 Mismatch between the celebrity and the image of the brand.

 Celebrities endorsing one brand and using another (competitor).

Findings

After analyzing the whole survey results, one can easily draw the following conclusions.

 Celebrity endorsement plays a very minute role in final decision making for buying a
new product A celebrity might help in easy recognization and popularity of a product
but not in final decision making.
 If a consumer wants to purchase a new product then latest technology matters the most
to him/her and brand ambassador matters least to them.
 Effect of brand ambassador differs with different products, according to our survey
results, it matters most in case of clothing and food products. Because people tends to
be more choosy in case of high attachment and costly products like cars.
 A common man feels that a celebrity helps an organization in increasing their total
sales and hence the revenue.
 A brand ambassador also helps in increasing the market share of the product.
 Three fifth of the surveyed people feels that a celebrity like Shahrukh or Hrithik
motivates them to buy a product.
 But vast majority of the surveyed people (60% approx) feels that celebrity
themselves don’t use their endorsed products.
 Film stars are the most popular celebrities among all, followed by cricketers.
 More then 60 % surveyed people feels that Shahrukh Khan is the fittest brand
ambassador for Nokia Communications.
 Popularity of Hrithik Roshan is slightly more then that of Shahrukh Khan as a
brand ambassador of a cell phone.
 According to the surveyed people, the high cost of a celebrity is the biggest
drawback of celebrity brand endorsement followed by celebrity vampire effect.