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The objective is to create in the mind of the prospect the perception that there is no other product on the market quite like your product." Al Ries & Laura Ries Indian advertising started with the hawkers who used to call out their wares right from the days when cities and markets first began. Since then, Indian advertising has metamorphosed into a strategic tool that enhances sales, siphons more profits and helps in the process of brand-building and product promotion. With this evolved a strategy that tried to benefit from the emotional attachment of the admirers or the fans of the celebrities; in the form of celebrity endorsement. It does help in creating instant awareness and visibility; but for a cost. This paper tries to look beyond the obvious benefits that might be derived out of celebrity endorsement. It tries to understand the process of consumer psychology and impact of celebrity endorsement on the overall process of brand building. The in-depth study of various models brings to light the complexities pertaining to celebrity endorsement. Analyzing its success is as much a necessity as is the understanding of its need. The importance of celebrity management has been emphasized to realize success or failure in its true sense. A symbiotic model has been proposed to define: how to make celebrity endorsement a win-win situation for both the brand and the brand-endorser. "Brand" is the most valuable asset of any firm. Any thoughtless adventure can be like the Sword of Damocles. It's the "strong idea" of promotion which is a more strategic means of brand-building; which can be an economical alternative over celebrity endorsement. "It doesn't matter how new an idea is; what matters is how new it becomes." - Elias Canetti If you're trying to persuade people to do something, or buy something, it seems to me you should use their language, the language in which they think." - David Ogilvy
Introduction If the world were full of all wise men and all wise women; we would have never heard of a term called "advertisement". And then good products would have found the right customers and grown to prosperity. Firms would have worked out a mathematical formula to sell and succeed. But the buying process isn't rational; and so is this world. Today, the business firms are trying out different ways in advertisement to increase their sales. Indians are die-hard movie and sport buffs; and this aspect of the consumers has invited the concept of "Celebrity Endorsement" to the world of advertisement. The purpose of this paper is to analyze the role of Celebrity Endorsement in the process of brand-building by taking appropriate examples from the advertising landscape. The modern world of marketing communication has become colorful and inundated with advertisements, and it is hard to get noticed. It is an uphill task for the designer of an advertising campaign to differentiate itself from others and attract viewers' attention. In this jet age, people tend to ignore all commercials and advertisements while flipping through the magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall brand is of great significance. In this process, the companies hire celebrities from a particular field to feature in its advertisement campaigns. The promotional features and images of the product are matched with the celebrity image, which tends to persuade a consumer to fix up his choice from a plethora of brands. Although this sounds pretty simple, but the design of such campaigns and the subsequent success in achieving the desired result calls for an in-depth understanding of the product, the brand objective, choice of a celebrity, associating the celebrity with the brand, and a framework for measuring the effectiveness. Definition of Celebrities Celebrities are people who enjoy specific public recognition by a large number of certain groups of people. They have some characteristic attributes like attractiveness, extraordinary lifestyle or special skills that are not commonly observed. Thus, it can be said that within a society, celebrities generally differ from the common people and enjoy a high degree of public awareness. Among the classic forms of celebrities, actors (e.g., Shahrukh Khan, Amitabh Bachhan, etc.), models (e.g., Malaika Arora, Bipasha Basu, etc.), sports-persons (e.g., Sachin Tendulkar, Sania Mirza, etc.) are significant. According to Friedman and Friedman, a "celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed". Compared to other endorser types, famous people always attach a greater degree of attention, recall and loyalty. According to Melissa St. James, a doctoral fellow and marketing instructor at The George Washington University, "Studies show that using celebrities can increase consumers' awareness of the ad, capture [their] attention and make ads more memorable."
The celebrity also must be accepted as a popular icon by a large cross section of the audience. the position advocated by the brand communication is better understood and received. Branding & Celebrity Endorsement Indian firms have been juxtaposing their brands with celebrity endorsers in the hope that celebrities may boost effectiveness of their marketing and/or corporate communication attempts. Celebrities can catalyze brand acceptance and provide the enormous momentum that brands require by endorsing the intrinsic value to the brand. The Dictionary of Business & Management defines a brand as: a name. the company has to decide the promotional objective of the brand and how far the celebrity image matches with it. from which both the company and the celebrity gains. The most important attribute for a celebrity endorser is the trustworthiness. The target audience must trust that a celebrity carries a particular image and it must match with the product. What is a Brand? Jack Welch." The intangible asset he was referring to is a brand. the former CEO of General Electric. A person well-known in a society can have greater impact than a celebrity of a different world. Today. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. interests and lifestyles. Similarity between the target audience and the celebrity is the third important attribute. or design. If the endorser and receiver have similar needs. symbol. a celebrity can be a very useful tool to draw attention to advertising messages in a cluttered media environment. The overall popular image coupled with exact productimage match enhances the consumer attention resulting in greater brand recall. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. or a combination of them. The second attribute in order of importance is likeability. once said. The selection is in fact a collaboration. .e. celebrity endorsements give an extra edge to the companies for holding the viewers' attention. term. Companies use celebrity endorser because they are considered to have stopping power. i. use of celebrities as part of marketing communication strategy is fairly common practice for major firms in supporting corporate or brand imagery..In this age of intense competition. intended to identify goods or services of one seller or a group of sellers and to differentiate them from those of competitor. Important Celebrity Attributes While selecting a celebrity as endorser. goals. "Our most valuable assets are our intangible assets. where capturing a position in the consumers' mind space is extremely tough. sign.
resort to celebrity endorsement to perk up brand recall and product sales." So. celebrities generally differ from the social norm and enjoy a high degree of public awareness. This has now become a trend and is being perceived as a strategic means of brand building exercise. Their influence also goes on the political front. and this process is referred to as Celebrity Endorsement. Also. Shah Rukh Khan). Similarly. involving such elements as good taste. To justify this hypothesis. Friedman & Friedman have shown that a celebrity relative to a non-celebrity spokesperson would be more effective for products high in psychological or social risk. life saving drugs) than in unimportant ones. even with the established giants like Hewlett-Packard and Wipro in the running. where they are invited for political endorsement. Today's celebrities are larger figures from movies (Amitabh Bachchan.Definition of Celebrity A celebrity is a person who is widely recognized in a society. Michael Schumacher). actor Amir Khan is the celebrity endorser for the product or brand called Coke. we can take the example of former Miss Universe Sushmita Sen who helped the Epson brand of printers achieve instant recognition. for almost similar products like Coke and Pepsi. self-image. extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed. Smriti Irani) and sports (Sachin Tendulkar. Two reasons why advertisers need celebrity endorsement are to increase the credibility & attractiveness of their advertisement. thus. television (Larry King. in the Coco-Cola advertisement. Whereas attributes like attractiveness. the consumers are made to think that he is giving his opinion to go for this car. It can be said that within a corresponding social group. it makes sense to use endorsement. This is solely to affect consumers' attitude towards their brand. The Elaboration Likelihood Model (EML) suggests that consumers will scrutinize claims more in important situations (say. Definition of Celebrity Endorsement According to Friedman & Friedman. actress Rani Mukherjee has turned the tables for Bata's ladies footwear brand called Sundrop as sales increased by a whooping 500%. when actor Shah Rukh Khan endorses Santro-Zip drive. The Need for Celebrity Endorsement The charisma of the celebrities almost always entices people and their words are worshipped by a lot of people. For example. So. . The business firms. a "celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed. and opinion of others.
the major challenge before them is to find the right faces for their brands or in other words celebrity management.." This suggests that the image of the celebrity must fit or be congruent with the product which can be explained from the theoretical perspective using a social cognition framework. But. • The Meaning Transfer Model McCracken. we can take the case of Rahul Dravid and Castrol. Dependable". and finally. The cricket icon is seen as "Mr. and taking into account budget and availability constraints. And when he endorses Castrol. A deeper insight into this complex process is provided by the following theory. upon the meaning he or she brings to the endorsement process. It would then consult a roster of celebrities and the meanings they made available. would choose the celebrity who best represents the appropriate symbolic properties. the author to this model. the marketing or advertising firm first would determine the symbolic properties sought for the product. . transfer of meaning from celebrity to the brand. the ones' which bolt from the blue are perhaps of the celebrities. "In the best of all possible worlds. in part. McCraken quotes. The advertisers are always on the look out for such faces for the purpose of endorsement. Figure 1: The Meaning Transfer Model To explain it with the help of an example." The celebrities' effectiveness as endorsers stems from the cultural meanings with which they are endowed. has suggested that..The Process of Celebrity Endorsement The process of celebrity endorsement is more of meaning translation & meaning application. The Importance of Celebrity Management In a world full of faces. It is a three-stage process of meaning transfer that involves the formation of celebrity image. an image of "dependability" is tagged on to the brand under promotion. from the brand to the consumer. "The effectiveness of the endorser depends.
In the case of well-known celebrities. Schemas are involved in encoding. a person. They can determine what information will be encoded or retrieved from memory. Therefore. And empirical researches confirm significantly higher recalling when the image of the celebrity is congruent with the brand image. While the Schema-Pointer + Tag Model proposes that consistent or typical items are encoded in terms of a "pointer" to a generic schema that contains the typical components and relationships for that particular knowledge domain. leading to a richer. It is organized through experience and consists of a knowledge structure." . interpretation. The Associative Network Model suggests that information inconsistent with an individual's schema may be quite salient and information will. this information would be conceptually linked to a larger number of items in the memory. or thing. encoded with a rather distinctive "tag" and stored as a unique.Brian Philcox . The atypical or incongruent items are. and retrieval of information. be attended to more closely and be processed more deeply. on the other hand. separate unit. individual would typically have personal relevant schemas (person schemas). then advertising is the spark. event. therefore.. retention. cognitive structure that represents some stimulus domain. When a celebrity endorses a brand. compared to a piece of information that is consistent with the schema. "If commerce is the engine of our economy. place. acquired over time.g. Therefore. The degree of congruence between the new information (the brand attributes) and the existing information (the celebrity's characteristics) may then influence the level of recall of the new information. celebrity management is very important for the success of any brand. This leads to higher recalling for incongruent items than for typical items. Responsible advertisers are the drivers who keep us on the right track. the characteristics of that celebrity may be compared with the advertised attributes of the brand by the audience for congruence or fit with their available person-schema.• Schema-Based Expectancy Theory A schema is an abstract. e. They can influence perceptual cognitive activities through the generation of expectancies. more benevolent society.
which are discussed here after • Stereotyping Tellis defines stereotypes as perceptions and depictions of individuals based on simplistic. biased image of the group to which they belong. promoting ICICI Bank. • The No TEARS Model The "No TEARS" approach is a tool for managers and their advertisers how to go about selecting celebrities so as to avoid the pitfalls from making an unwise decision. Respect: For example .Former Miss World Aishawarya Rai and the Eye donation campaign. etc.Tennis player Anna Kournikova who earns 10 Million dollars per year in just endorsement. It gauges the following information: celebrity & audience match up. celebrity attractiveness. For example: its better to select celebrities who say are teens for chocolate advertisements and females for detergent ads. Similarity: For example . celebrity credibility. • The TEARS Model The attributes highlighted by the acronym "TEARS" are gauged for celebrity selection.Golfer Tiger Woods for a sports brand. .Legendary actor Amitabh Bachchan who is an icon of trust. celebrity & brand match up. Attractiveness: For example . These are: Trustworthiness: For example . Expertise: For example . rather than on their own individual characteristics.a child artist promoting a chocolate brand. A celebrity scoring high on all the above attributes can turn out to be a good endorser for the brand under question.Celebrity Selection There are various scientific ways in which the right celebrity is selected for the product endorsement.
a likelihood-of-getting-into-trouble factor Selecting the right celebrity does more than increasing sales. Sourav Ganguly .Adidas. The success of celebrity endorsement in India can be sought from a market research conducted earlier which found that 8 out of 10 TV commercials scored the highest recall were those with celebrity appearances.J. a working ease and difficulty factor. Framework to Make Effective Celebrity Endorsement Program With the cut-throat competition and continuously changing market dynamics.Pepsi. thereby adding new dimension to the brand image. Leander Paes & Mahesh Bhupati . A few examples: Sachin Tendulkar . and Aishwarya Rai . Shah Rukh Khan . Hampstead. it can create linkages with the celebrities' appeal. Sushmita Sen .Epson. The action plan should be able to answer the following key questions: Are the celebrity endorsements programs result driven? How to quantify the value generated by the celebrity endorsements? Are customers able to connect the brand with the celebrity? . cost consideration. one has to assess the market conditions and re-evaluate its current marketing strategies such as its portfolio of celebrity endorsement.Britannia.Coke. an endorsement saturation factor. Research conducted by Katherine Eckel has revealed that celebrities can get people to make a better choice but cannot influence 'people to make a foolish choice'.
Figure 2: Evolution of Celebrity Endorsements One can gauge the performance of celebrity endorsement marketing program across the various stages of development (Refer to Figure 2). The attributes of the celebrity should be intrinsically valuable and aligned with the product. Figure 3 suggests strategies to be adopted by a company depending on its brand positioning and the brand fit with the celebrity. . We have attempted to prepare a framework to build a more effective celebrity endorsement program: 1. ALIGN CELEBRITY ENDORSEMENT WITH BUSINESS OBJECTIVES. brand and company.
strategic business objectives and primary customer segment. the company should adopt a "Monitor and evaluate" strategy. The Narain Karthikeyan . monitoring the sales. the early advertisements (Refer Annexure 1) with Amitabh Bachchan showed low brand-celebrity fit. When the positioning of the brand is high but the fit with the celebrity is low. The company has to spot the opportunities to leverage the celebrity investment and to find more better and effective ways to communicate with the target audience. the company should follow the strategy of "Grow and partner". The consumers are unlikely to connect between the brand and the celebrity. The company should continuously track the effectiveness of the celebrity endorsement through surveys.J K Tyres relationship works well in this category.Figure 3: Brand-Celebrity Attribute Fit Matrix • If the brand-celebrity attribute fit is slow. In . The celebrity attributes align with the company's brand. In the ideal quadrant when the positioning effectiveness is high and celebrity fit with the brand is also high. then the company should adopt "Eliminate or avoid" strategy. and the recall value is likely to be very low. Though Parker pens had a positioning of premier pens. but the fit with the celebrity is high. defeating the entire purpose of signing the celebrity. etc. the company should adopt the strategy of "Keep and enhance". When the positioning has not been effective. This is what happened when Goodlass Nerolac Paints roped in Amitabh Bachchan as their brand ambassador.
There are ways to quantify the potential value of hard assets and association value against their impact on company's celebrity endorsement by looking at the following catergories: - Incremental Sales Companies can quantify the effect of the celebrity programs on sales by performing yearto-year or quarter-to-quarter sales comparisons for targeted consumers. 2. These are the intangible benefits that the company will accrue in the long-term. MEASURE AND QUANTIFY PERFORMANCE • • • A part of the marketing budget should be allocated to primary and secondary research to determine the overall return on investment . By situating potential celebrity on the matrix. while eliminating those that prove too costly. The endorsement costs are primarily driven by the endorsement fees and promotion outlays. The company should have proper metrics in place such as increase in sales.measuring the real performance of a celebrity endorsement against the company's business objectives. These are the tangible benefits that a company derives from its endorsement strategy.case of Coke. to measure the effectiveness and the impact of celebrity endorsement in the short and long term. geographic . brand awareness and customer preference.re-distributing the resources and marketing efforts to those celebrities with the greatest potential to increase value. Value of Association: Association value is derived from the target customers who associate the company / brand with the celebrity. companies can manage the celebrities as portfolios . the brand has firmly established the "Thanda" position in the minds of the consumer. The benefits that accrue from such a relationship can be categorized into two components: Value of Hard Assets: The benefits derived from the hard assets are those that have a clear market value such as increased sales and increase in brand equity. with Aamir Khan playing the perfect role.
customer preferences. However. Additionally. or specific product lines. a company can increase its benefits by re-examining (and altering. survey approach by asking the respondent which celebrity endorsed their brand. the companies use popular. 3. Primary research can also be done to reveal the impact of the celebrity on target customer's propensity to purchase. Instead. Additionally. though incorrect.regions. if . By gauging the top-of-mind recall can enable the company to find out if a connection is made between the brand and celebrity. Brand Recognition One of the objectives of celebrity endorsement is to increase brand awareness. SELECTION AND RENEWAL OF CONTRACT WITH CELEBRITIES The ability to align goals and measure the value of brand-celebrity fit is the first step in obtaining optimal value from a celebrity endorsement. Figure 4: Endorsement Cost-Value Relationship Customer Loyalty: Customer churn can be measured in fixed intervals before and after the celebrity campaign period to determine the impact of celebrity on customer retention. Value is also derived by revisiting the celebrity portfolio to determine ways to reduce costs and increase benefits. they should ask the respondent the brands associated with the celebrity. primary research can be conducted to evaluate changes in the customer loyalty. etc.
A large extent of this can be successful if the company can develop and execute coordinated. For instance. as well as the amount and benefits conferred on the company. • Protection Against Ambush Marketing Ambush marketing (or adjacent marketing) is the reality of the day and the marketing managers need to be creative to stay one step ahead of the competition.needed) its promotion strategy to create deeper brand association. most of the celebrities quote their price in expectation of negotiation. when he is actually brand ambassador for Pepsi. Include Value-in-Kind Payments Companies can reduce their risk and endorsement costs by substituting out-of-pocket cash payments with value-in-kind. identify new celebrities that are capable of achieving company goals and negotiate for additional rights from the existing contracts. The company needs to understand the risk associated with the signing of such celebrity and need to devise strategic opportunities to stay clear of the clutter. . which can be traded at market price. Amitabh Bachchan was shown drinking Thumbs-Up in the hindi movie Kaante. This clutter can impede the ability of the company to capture the image and awareness required to generate value from the endorsement. The company should benchmark the contractual fees and benefits against that of comparable celebrities to ensure the package is equivalent. A few guidelines for formulating a welldefined negotiation strategy would include: Understand the Competition of Celebrity Except for few venerable celebrities. preplanned negotiation strategy which will enable it to improve the contractual fees and media commitments stipulated in the contract. Understand 'Celebrity' Clutter There could be a degree of clutter with the celebrity endorsing many more brands and companies.
brand may also fail to get noticed given a recent negative publicity of the celebrity endorser. • The Solutions As discussed. experience. "The philosophy behind much advertising is based on the old observation that every man is really two men . brand failures. And this leads to speculations in the Ad World on the soundness of celebrity endorsement as an effective communication strategy. Thinking on the similar lines. Example: Michael Jordan lost his endorsement deals when he announced in 1991 that he's HIV-positive. the impression is not always strongly linked to the advertised brand. celebrity management is very crucial to avoid the brand-celebrity disconnect. though the celebrity generates higher levels of attention among viewers. Dr.Why Celebrity Endorsement Fails? There maybe cases where brands are not able to take-off even after the backing of celebrities." Therefore. etc. • The Reasons According to leading management thinker. Finally. and qualification to talk about the product. And unfortunately. The success of celebrity endorsement also depends upon the capacity. The obvious solution to the problem of overshadowing is to make sure that both the advertisement and the celebrity are focused on the brand or . There shouldn't be any ambiguity or confusions when showing the celebrity in the advertisement. the advertisers shouldn't identify the brand to associate with the celebrity but do vice versa. and subsequently. "Many celebrity endorsements fail because they identify a celebrity they like in an emotive and unresearched manner and then try to create advertising to force-fit the celebrity into the creative concept. This happens when the celebrity is larger than the brand being endorsed. negative perception after use of product / service (inferior products). misapprehension of the meaning of the endorsement." . Abhishek Bachchan & Maruti Versa).William Feather Another reason for the celebrity endorsement to turn against the brand is due to "Overshadowing". If the consumers have questions in their minds regarding the quality or performance of the product then even God cannot save the brand. It wasn't until July 2003 that he landed his first endorsement deal since the announcement. the advertisers must associate the celebrity to the advertisement and not vice versa. Seamus Phan. Failure may be attributed to improper positioning (Example: Amitabh Bachchan. Proper market research should be carried out and right positioning strategies should be in place.the man he is and the man he wants to be. knowledge.
For Example: Pepsi while capitalizing on the popularity of cricket and films in India used several cricketers and film stars in their ads. So when Azharuddin and Jadeja got embroiled in the match-fixing controversy. there should be absolute symbiosis between the two entities.product. other unaffected Competition (C2): Both are harmed . companies may resort to multiple celebrity endorsement. Hritik Roshan) Neutralism (N): None of them benefited or harmed (Example: Amitabh Bachchan. There may be one of the six effects to the celebrity endorsement process: - Figure 2: The Symbiotic Model Mutualism (M): Both help each other (Example: Tata and Narayan Karitiken) Commensalism (C1): Only one among them is benefited (Example: A failed endorsement) Parasitism (P): One is benefited. we can propose our own model taking cue from the biological kingdom. but its relationship with cricket continued. Sachin Tendulkar. Also. There are various symbiotic relationships that can exist between two organisms. Pepsi severed its association only with these stars. Abhishek Bachchan and Maruti Versa) Amensalism (A): Only one of them is harmed. To avoid any bad publicity arising out of celebrity defames. other is harmed (Example: Azharuddin and Pepsi. we can visualize two entities "brand" and "celebrity". Home Trade & Shah Rukh Khan. Similarly. To achieve a perfect success. • The Symbiotic Model Based on our understanding of the celebrity endorsement process.
Celebrity endorsement is a complex process of balancing your risk with your gains. Multiple Celebrity Endorsement In the advertising landscape. revenues and profit from the present investments on celebrity endorsement. A company must analyze the prospect of endorsement from 360 degrees. The process of gauging the effectiveness of endorsement on the overall brand is but difficult." . TVS Victor. Celebrity endorsement is an expensive means of brand promotion and the price burden almost always shifts on to the consumers. • Price vs. Visa Cards and Home Trade). then it narrows the companies' profit.Oscar Wilde Celebrity Endorsement: The Issues Involved There are several factors to consider before resorting to celebrity endorsement. prior to product promotion. Sachin Tendulkar. Companies need to perform a cost-benefit analysis prior to endorsement. Profit The most important issue is that of return on investment (ROI). • Multiple Brand Endorsement vs. "The pure and simple truth is rarely pure and never simple. for example. in 2002 endorsed 12 brands (including Pepsi. says that the endorsement of as many as four products negatively influences the celebrity spokesperson's credibility and likeability. Boost. Colgate Total. MRF. Adidas. Tripp et al. Gillette. future sales. Figure 3: Multiple Brand Endorsement (Shah Rukh Khan) . in the long run. Fiat Palio. we find either a celebrity endorsing multiple brands or multiple celebrities being used to endorse a single brand. Fiat Sienna. There is no single formula to win in the world of marketing. if not. The companies expect to bring. Britannia Tiger.
. and thus.. because their association may be temporary but the brands are permanent. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. Figure 4: Multiple Celebrity Endorsement (Adidas & Hyundai Santro) Similarity between the target audience and the celebrity is the third important attribute. interests and lifestyles. E. The values that display themselves in regrettable behavior could transfer themselves to the brand. A person well-known in a society can have greater impact than a celebrity of a different world. one should also keep in mind that the overuse of some extremely popular celebrities often tends to confuse consumers and reduce the utility of celebrity endorsement. the position advocated by the brand communication is better understood and received. their can be unnecessary investments without proper return. Salman Khan lost his endorsement deal with Thumbs-Up after his infamous incidents like buck-killing and rash-driving. while designing an ad campaign. Besides. So the celebrity endorsement cost has to be weighed up against the return on marketing investment.Also. Otherwise. lead to confusion among the consumers. brand values and then decide who the celebrities are who can carry them forward. If the endorser and receiver have similar needs.g. goals. This can harm the trustworthiness and credibility in the mind of the consumers. The marketing function of a company should also understand that brands should assume a much greater space than the celebrities. The various risks associated with celebrity endorsements are as follows: Negative publicity . Another argument against celebrity endorsement involves the behavior of the celebrity.If the celebrity is strongly associated with the brand then the occurrence of the negative publicity can spill over the brand. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. the use of multiple celebrities to endorse a brand may hinder the meaning transfer process. The companies have to first clarify their business objectives.
When celebrity endorser is used. So the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as a assured strategic tool to win profits.Sometimes the company can use many different celebrities to appeal to different market segment. Boost. then it can lead to draining out capital without proper return. Financial Risk . Overexposure . If the celebrity contract is for a considerable period of time. E. Pepsi. .g. There have been extensive studies relating to the process of celebrity endorsement and brand-building These studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. etc. A deeper insight in the impact of celebrity endorsement on consumers' minds can be explained by the meaning transfer model. Overuse . The communication objectives for the campaign should be frozen. endorsements can work as a force multiplier. Therefore. Focus must be on the synergy between the brand and the celebrity image Establish explicitly what the celebrity is going to communicate Once these criteria are met.The decision for hiring an expensive endorser may not be always feasible if there is a poor brand fit.. for celebrity endorsements to work effectively there are some fundamental ground rules: The brand promise and the brand personality should be clearly articulated. explained in the next section. Few celebrities have been more successful than those with almost parallel fame. revenues. market share. Fiat. But multiplicity of endorser might blur the image of the brand and reduce the effectiveness of the means of persuasion.The favorable response obtained by a particular brand may weaken over time if the brand gets significant exposure without the association of the celebrity. TVS Victor. Sachin Tendulkar endorses several brands such as MRF. the risk of consumers focusing on the celebrity and not on the brand exists.This risk arises when the celebrity chooses to endorse several different products simultaneously which might leave the consumers confused. Overshadowing . etc. Conclusion Celebrity endorsement can be a goldmine or a minefield for a company's brand building process. Extinction .
the marketing manager should be able to offer significant value propositions in the services / products offered to the customers. while Pepsi's Sachin and Bachchan (kite flying) ad was seen as one with a good script.. Companies have taken celebrity endorsement to next level by projecting brands as a way of life. But. is shown as a branch-manager of ICICI Bank in the movie Baghban. Celebrity endorsement is also one of the ideas. Thumbs-Up was seen as the only example of seamless linkage between brand positioning and brand celebrity. the hard part is letting go of what worked for you two years ago. Celebrities do not make brands but ideas do. E. "There is one thing which is stronger than all the armies of this world. There is a gradual shift from the traditional approach of showing celebrities in advertisement to making them the "spokes-person" of the brand. However. was seen as an insightful and strong brand idea. Wooing the key existing and potential target customers is the trait of a successful promotion strategy. its easy to come up with new ideas.g. Coca-Cola's Thanda Matlab. thus. and think more in terms of your Return-on-Ideas. Any thoughtless adventure can be like the Sword of Damocles upon your head.Victor Hugo . the need of the hour is to focus less on your Return-on-Investment. who endorses the financial instruments of ICICI Bank. Therefore. If the former were true then brands would have vanished when the hype and hoopla around the celebrities faded. of paramount importance. Thus. For example. For all the flak it drew in its vainglorious attempts to run down competition. one needs to integrate celebrity endorsement with other marketing programs and ensure that the celebrity attributes align with the overall brand or company. Smart companies are using their brand ambassadors in other mediums such as movies to promote their brands. and that is an idea whose time has come. but will soon be out-ofdate. Companies that succeed in developing such an integrated IMC plans is the one to succeed in the long-term. There is an increasing challenge to the marketing manager to develop and implement an integrated marketing communication (IMC) plan to realize the true value of the celebrity endorsements.. building its image is. Amitabh Bachchan. "Brand" is the most valuable asset of any company. which will bring good returns..Consumers can identify the clear difference between a good script and a good brand idea. Thus. it is imperative to invest in good ideas." .
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