A DISSERTATION PROJECT REPORT ON

Impact of Celebrity Endorsement on Consumer Behaviour

By

Rajesh Kumar Singh
Roll No.29084 (Batch 2009-11)

Under the Guidance of Ms. Debjani Bhattacharya (Faculty of IT) Month & Year of Submission - February 2011

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CERTIFICATE OF AUTHENTICITY

February 21, 2011.

This is to certify that Dissertation report on “Impact of Celebrity Endorsement On Consumer Behaviour” prepared by Rajesh Kumar Singh, Roll No.29084 Of PGDM 20092011 Batch is his original work under my guidance and supervision.

Signature of the Faculty (Ms. Debjani Bhattacharya)

Signature of the Student (Rajesh Kumar Singh)

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ACKNOWLEDGEMENT
It takes immense pleasure for me to express my sincere gratitude to all the helping hands who have guided me in the completion of this project. It was a great learning experience for me to work on my project. I am deeply indebted to my faculty guide Ms. Debjani Bhattacharya who has supported me immensely throughout the project through discussions and by always showing me the right course to pursue. The information and suggestions provided by him proved to be most valuable. Last but not the least; my effort will remain incomplete if I do not express my indebtedness to my teachers & friends whose assistance and support are instrumental in the successful completion of this project.

Rajesh Kumar Singh Roll No- 29084

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CONTENTS
Research Methodology………………………………………………………………………………....05 Introduction…………………………………………………………………………………………….07 Defining the Meaning & Scope of the Topic…………………………………………………………..08 Impact of Celebrity Endorsement……………………………………………………………………...11 Effectiveness of Celebrity Endorsers…………………………………………………………………..16 Decision Making Process & Purchase Decision……………………………………………………….17 Relation of BRAND, CELEBRITIES & CONSUMERS……………………………………………...18 Positive Impacts of Celebrity Endorsement on the Brand …………………………………………….19 Negative Impacts of Celebrity Endorsement on the Brand…………………………………………….20 Nine Uses of Celebrity Endorsement ………………………………………………………………….22 Brand Image Formation & Brand Preference ………………………………………………………....24 The Process of Celebrity Endorsement………………………………………………………………...25 Importance of Celebrity Management…………………………………………………………………26 Risks Associated With Celebrity Endorsement………………………………………………………..27 Selection of Celebrity………………………………………………………………………………….28 Celebrity Endorsement: The Issues Involved………………………………………………………….30 Framework to Make Effective Celebrity Endorsement Program………………………………………32 Why Celebrity Endorsement Fails? ……………………………………………………………………37 Advantages of a Celebrity Endorsing a Brand…………………………………………………………39 Disadvantages of a Celebrity Endorsing a Brand……………………………………………………...40 Research, Analysis & Findings………………………………………………………………………...42 Conclusion……………………………………………………………………………………………..54 BIBLIOGRAPHY……………………………………………………………………………………...55

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RESEARCH METHODOLOGY
Research Problems: Impact of Celebrity Endorsement on Consumer Behaviour Research Methodology: Exploratory method

SAMPLING PLAN Sample Methods - Random Simple Sampling Sample size – 100 Primary data -Questionnaire SAMPLE While deciding about the sample of research, it is required from the researcher‘s point to pay attention to these under mentioned points: a) Sample Units: A decision has to be taken concerning a sampling unit before selecting a sample, sampling unit may be a geographical one such as state, district, village Etc. so in this research sampling Unit is Delhi-NCR area. b) Source of data: Data required for the study was collected through primary sources i.e. Market Survey. And the market area is: Delhi-NCR. c) Sampling size: This refers to the no. of items to be selected from the universe to constitute a sample. This is a major problem before the researcher. The size of sample should neither be excessively large not too small, it should be optimum. This size of population must be kept in view for this also limits the sample size. Sample size in this research is 100. INSTRUMENTS USED Primary data collected through sample survey from college students aged between 20-25. So for this purpose I have used the most popular tool of primary data collection through direct communication with respondents. The tools I used are questionnaires.

METHOD OF DATA COLLECTION
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INTRODUCTION NIILM-CMS | Rajesh Singh. the survey is kept simple and user friendly. state and local Government. LIMITATIONS OF THE STUDY  A survey should involve a larger sample size otherwise the findings of the survey cannot be generalized. which are collected afresh and for the first time and this happen to be original in character. But a larger sample size may increase the time and cost of collecting the primary data with the help of Questionnaire. RESEARCH INSRUMENTS QUESTIONNAIRE DESIGN: As the Questionnaire is self administrated one.  Many of the respondents were not willing to fill the questionnaire.  Books. Words used in questionnaire are readily understandable to all respondent I have made the questionnaire in which questions are according to the research and these are convenience for the respondent. Roll No-29084 6 .  Another problem which I face was that people were hesitating to give information about their views freely. newspapers  Internet After only keeping in mind one can think about what type of data has to be collected during research as our research is concerned I have to gather primary data for Customer preference. Due to which I faced difficulties in collecting information‘s regarding the questionnaire. magazines. B) Secondary Data: Secondary data are those data which have already been collected by someone else and which have already been used as per required. There are basically two sources to collect secondary data a) Internally: Provided by the company/organization b) Externally: Various publication of central.  Some people were not willing to respond and few of them who responded were in hurry hence the active participation was lacking.Actually data is of two kinds which are as following: A) Primary Data: Primary data are those.

David Bowie) . packaging. Mallaika Arora. royal heritage and may be celebrity endorser who endorses them.. of brands available in the market.g. etc). Sourav Ganguly. In addition. Because of the constant media saturation that most people experience daily. Also from a marketing communications (marcoms) perspective. sports figures (e. This is true for classic forms of celebrities. Naomi Campbell. which is referred to celebrity endorsement. celebrities appear in public by attending special celebrity events. and on billboards. entertainers (e. Accordingly.. Furthermore. advertisement. fashion magazines.g. they appear in public when fulfilling their profession.. Anna Kournikova.g. Salman Khan.. Businesses have long sought to distract and attract the attention of potential customers that live in a world of ever-increasing commercial bombardment.g. entertainer. Michael Schumacher. they eventually become numb to the standard marketing techniques. First.. The challenge of the marketer is to find a hook that will hold the subject's attention. Amitabh Bachchan. Every brand attempts to steal at least a fraction of an unsuspecting person's time to inform him or her of the amazing and different attributes of the product at hand. they are present in news.. etc.but also for less obvious groups like businessmen (e.g. Sachin Tendulkar. Madonna.) for his or her achievements in areas other than that of the product class endorsed (Friedman and Friedman.g. Everyday consumers are exposed to thousands of voices and images in magazines. Zaheer Khan. and tabloids. Aishawarya Rai. Raid and Taylor has the rich heritage of roping in various cascades of James Bond 007 as their brand endorser and it has helped them strongly to build their brand.There is large no. branding. Conan O'Brien). Rani Mukherjee Aamir Khan and Pierce Brosnan).g. sports figure. it is vital that firms design strategies that help to underpin competitive differential advantage for the firm's product or services. Donald Trump. e. radio and television. Steve Waugh. Gisele Buendchen. celebrities act as spokes-people in advertising to promote products and services. etc). Lisa Ray. Celebrities appear in public in different ways. Cyrus Broacha. Roll No-29084 7 . Some are very familiar and rest are somewhat. who plays chess in front of an audience. Vishwanathan Anand.g. models (e. Shahrukh Khan. Oprah Winfrey. What are the things that distinguish those from rest? It may be brand name. websites. Smriti Irani being regularly featured in various publications)... like actors (e. Defining the Meaning & Scope of the Topic NIILM-CMS | Rajesh Singh. Last but not least. e. pricing. The term Celebrity refers to an individual who is known to the public (actor. 1979). inaugurations or world premieres of movies. award ceremonies. E. which provide second source information on events and the 'private life' of celebrities through mass-media channels (e..g. Bill Gates) or politicians. and pop-stars (e.g. marcom activities back-up other elements in the marketing mix such as designing. newspapers. and place.

Preity Zinta. Shahrukh Khan. celebrities generally differ from the social norm and enjoy a high degree of public awareness. models (e. etc. Sachin Tendulkar. and tabloids. they are present in news. Michael Schumacher. Madonna. which is referred to celebrity endorsement.g. celebrities act as spokes-people in advertising to promote products and services. This is true for classic forms of celebrities. companies use celebrities to endorse their products. and pop-stars (e. 'Celebrity Endorsement' McCracken's (1989) definition of a celebrity endorser is. because when celebrities are depicted in marcoms.g. Aamir Khan and Pierce Brosnan).g. Celebrities appear in public in different ways. Roll No-29084 8 . entertainer. use of celebrity endorser would lead to greater believability." Friedman and Friedman (1979) found empirical evidence that. etc).. Mallaika Arora. award ceremonies. Difference between Brand Ambassador & Brand Face NIILM-CMS | Rajesh Singh.. extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed. Conan O'Brien). Gisele Buendchen. Anna Kournikova. Smriti Irani being regularly featured in various publications). Rani Mukherjee. e. Bill Gates) or politicians. celebrities appear in public by attending special celebrity events. Zaheer Khan. it can be said that within a corresponding social group. inaugurations or world premieres of movies. like actors (e. which provide second source information on events and the 'private life' of celebrities through mass-media channels (e. who plays chess in front of an audience.g. fashion magazines. Celebrities might endorse as a brand ambassador or a brand face. Thus. Lisa Ray. The term Celebrity refers to an individual who is known to the public (actor.) for his or her achievements in areas other than that of the product class endorsed (Friedman and Friedman.. in the promotion of products high in psychological and/or social risk. e.. Vishwanathan Anand. however.g. there are deeper attributes that are involved in celebrity endorsement. Whereas attributes like attractiveness. Amitabh Bachchan. they appear in public when fulfilling their profession.g. Last but not least. In addition. Steve Waugh. thereto. "any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (marcoms). Aishwarya Rai... Donald Trump. and a significantly more positive purchase intention. Sourav Ganguly.g.g. etc). Oprah Winfrey..but also for less obvious groups like businessmen (e. First. irrespective of the required promotional role. sports figures (e. Naomi Campbell.g.Defining a 'Celebrity' Celebrities are people who enjoy public recognition by a large share of a certain group of people. Furthermore. is useful. entertainers (e. Cyrus Broacha.. sports figure.. David Bowie) . 1979). a more favorable evaluation of the product and advertisement. they bring their own culturally related meanings.

there is a significant difference between making just an endorsement for say.. He/she is an integral part of the brand persona and helps to build an emotional. actors) in the hope that celebrities may boost effectiveness of their marketing and/or corporate communication NIILM-CMS | Rajesh Singh. a Brand Face would be the current celebrity who is just used as a tool to increase brand recall and is only appearing in the advertisement. On the other hand. Roll No-29084 9 . sporting the Brand all the while. and being that brand's alter ego. An example would be Sona Chandi Chawanpryash using Saurav Ganguly for a while in its commercials. which goes beyond just appearing on TV commercials. Both parties take the latter far more seriously to the deal. a shampoo or an automobile. Fardeen Khan is the brand ambassador for Provogue while he remains a brand face for Lux Body Wash. For example. It is usually seen that a brand face is a temporary contract and is very short term at times. he/she would be actively participating in any sales promotion. Brand faces are easily forgotten and fade away with the campaign's end. Spread of Celebrity Endorsement Markets in which advertising coordinates consumer purchases. He takes up the cause of a Brand Champion and is associated with every aspect related with the brand. celebrity endorsements are more likely chosen for products that have either of the following: High price-cost margins Large potential customer pools The need to coordinate across diverse sets of customers    Scope of Celebrity Endorsement The use of testimonials by advertisers dates back to the 19th century when medicines were patented.g. athletes. What is more. Firms have been juxtaposing their brands and themselves with celebrity endorsers (e. So a brand ambassador would be involved in press releases.A Brand Ambassador would be one who is not only a spokesperson for the brand or is just appearing as a testimonial for the brand's benefits.

and about 10% of the dollars spent on television advertising are used in celebrity endorsement advertisements (Advertising Age. Today. 1985). 1997). Roll No-29084 10 . 1984). Actresses Joan Crawford. it was reported that about 20% of all television commercials feature a famous person. use of celebrities as part of marketing communications strategy is fairly common practice for major firms in supporting corporate or brand imagery. Impact of Celebrity Endorsement The concept of celebrity endorsement has become a rage in India as well. radio. It was not until the 1920s. and today this advertising approach appeared to be on the increase across all media types (Sherman. One of the early example is Queen Victoria's endorsement of Cadbury's Cocoa (Sherman. Sherman. The increasing number of endorsements throws a valid question to the consumers. 1985 and Levin. p. Nov. 1995) and elsewhere. 1988). At that time.attempts for at least a century. This phenomenon is reflected by the recent market research findings that 8 out of 10 TV commercials scoring the highest recall are those with celebrities' appearances (Media. Is there a science behind the choice of these endorsers or is it just by the popularity measurement? What are the reasons which lead to impact of celebrity endorsement on brands? NIILM-CMS | Rajesh Singh. 1985). Thus.90). celebrity endorsement has become a prevalent form of advertising in United States (Agrawal and Kamakura. 1978). Friedman et al. 1987. and television) have extended the scope of endorsement as an advertising technique. with every company trying to rope in a brand ambassador of sorts for their brands. 14. 1984. In the United States. the rationale given by advertising agencies for using celebrities was "the spirit of emulation" (Fox. About a decade ago. however. one in three television commercials used celebrities' endorsements (Business Week. July-August 1997). Today. that advertisers used famous people for product endorsements. Clara Bow and Janet Gaynor were among the first celebrities to promote products (Fox. the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image building and product marketing (Media. (1977) found that celebrities are featured in 15 percent of the prime-time television commercials. Three of humankind's greatest inventions (cinema.

Our study reveals that the impact of celebrity endorsement is proportional to the 14 factors discussed in the model. Roll No-29084 11 . which can be used as blueprint criteria which can be used by brand managers for selecting celebrities. Greater the score of the below parameters. The success of a brand through celebrity endorsement is a cumulative of the following 14 attributes. 2002). One of the most obvious reasons of Amitabh Bachchan endorsing plethora of brands is the credibility of the celebrity and his recognition across consumers. In a research carried out among 43 ad agencies and companies. and capitalizes the celebrity resource through 360 degree brand communication. most experts believed that the most important dimensions of credibility are trustworthiness and prowess or expertise with regard to the recommended product or service (Miciak and Shanklin. this paper develops a 14 point model. Celebrity Credibility The most important aspect and reason for celebrity endorsement is credibility. NIILM-CMS | Rajesh Singh. greater are the chances of getting close to the desired impact.Through research and analysis. since our research proposes it as the foundation brick of the impact of celebrity endorsement.

there are situations in which they prefer to go without a brand face. Shabana Azmi campaigning for AIDS Awareness. Amitabh Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishawarya Rai appearing in the Donate Eyes campaign are few examples..com) Tabu endorsing Tetra Packed Milk. The campaign has won an award for the same. due to multiple endorsements by NIILM-CMS | Rajesh Singh.To site one of the most successful campaigns in which the celebrity's credibility has had an indelible impact on the brand and has saved the brand is of Cadbury's. which reflect the transfer of celebrity values to the brand. helping it to get back on track. Amitabh Bachchan's credibility infused into the brand through the campaign. "Who would want to use Michael Jackson to brand their product?" (brandchannel. since there is no brand-fit between the celebrities available and the brand. Celebrity Values Celebrity branding is all about the transfer of the value from the person to the product he endorses or stands for. The first is how long this could last. John Abraham endorsing Wrangler and Timex Sunglasses are some examples which portray the celebrities' physical attractiveness that helps create an impact.personal integrity. that would ruin the brand. creating an impact that generates recall. Also. Roll No-29084 12 . After the worm controversy. There are two concerns here. Celebrity Availability In case of various brands. The second concern is his private life . If he is implicated in any kind of scandal. Can the person maintain his popularity (i.e. his performance or status ranking)? The lifecycle of celebrity popularity varies a lot. Celebrity Physical Attractiveness Bipasha Basu' physical attractiveness and her connect with the brand makes Levis Strauss's campaign through celebrity in India.

90 lakh to Rs. 2. party-going. Similarly.25 crore for an endorsement and the Indian cricket captain Saurav Ganguly is believed to get between Rs. 2. Rehman. is believed to have picked up Rs.5 crore per endorsement. Aishawarya Rai apparently picks up Rs. Roll No-29084 13 . 1. Brand marketers say that research reveals that Richard Gere was the most popular face across the Asia Pacific region. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in India are few examples of how celebrities are chosen to reach out to target audiences for brands in regional markets.5-3.5 crore. industry sources say Sachin Tendulkar price is believed to be between Rs.certain celebrities. companies must have deep pockets to be able to afford the best available celebrities. revolve around this approach. Nicole Kidman from Australia can be prospective endorsers for Brand Australia but not in the region of India. Although nobody is willing to say exactly how much celebrities get paid. Celebrity Regional Appeal Factors R. Advertising ideas. brands refuse to adopt celebrity endorsement since they fear dilution of the brand image. and Shahrukh Khan's rate seems to be between Rs. while film-star Aamir Khan apparently makes Rs. Other celebrities like Kylie Minogue. One of the most successful celebrity endorsement campaigns which reflect the fit between the brand and the 360 degree advertising fit is Fardeen Khan and Provogue.5 crore per endorsement. and the celebrity endorsement decisions are made through these strategic motives. a newspaper report showed how cola firms had gone beyond their advertising budgets to get the best celebrities. and would also fit into the persona of the brand meeting their communication objective to enhance VISA's brand leadership and consumer preference. 1. 1. Film-star Hrithik Roshan was rumored to have picked up Rs. thus. R. Another interesting example would be of Steve Waugh campaigning for Tourism Australia in India since he was one of the popular celebrities from Australia and could carry the message of Australia as a tourist destination. Recently. Small firms that use celebrities ‗services run greater risks if they invest large amounts. active.0-2.75 crore. 1.0 crore. Provogue Lounge and extensive phased insertions in print in selective publications reaching out to their target audience has made it as one of the highest recalled celebrity endorsement. The conjunction between the two has been immensely impactful and brand managers have utilized this endorsement through 360 degree reinforcement. Whether Celebrity is a Brand User NIILM-CMS | Rajesh Singh. who had signed up with AirTel. Fit with the Advertising Idea Marketers now seek to adopt 360 degree brand stewardship in which the brand sees no limits on the number of contact points possible with a target consumer. attention-grabbing brand and so is Fardeen Khan. Costs of Acquiring the Celebrity Consequently. Richard Gere's recent endorsement for VISA in India has gained acclaim due to its innovativeness and consumer connects. and the motive to continue the "All it Takes" empowerment platform featuring international celebrities. and musician A. Provogue's positioning in the apparel market is of a young. 2 crore for the Fly with Hrithik campaign to push Close-Up.

Celebrity-Product Match Cyrus Broacha is the brand ambassador for MTV since both the celebrity and the brand are considered as friendly. Similarly. in case of Sachin Tendulkar people recall Pepsi. young. takes a bashing. Roll No-29084 14 . NIILM-CMS | Rajesh Singh. Not many people can remember all the brands that a celebrity endorses and the chances of losing brand recall increases if the celebrity endorses multiple brands. Govinda & Navratan Tel. for multiple endorsements where the same celebrity endorses several brands. the target audience that the brands wants to reach out to will be ready to believe that he used the oil and his endorsement thereby creates an impact. Sanjay Dutt & Elf Oil. both in terms of a single brand hiring multiple celebrities and that of a single celebrity endorsing multiple brands. Thus. The in serial placement of the campaign in "Kyunki Saas Bhi Kabhi Bahu Thi" has won it an award from PR Week. in most instances. Multiple Endorsements The case of multiple endorsements.One of the strongest platforms to discuss this is through NGOs. any act on the part of the endorser that gives him a negative image among the audience and goes on to affect the brands endorsed. MTV's brand personality overlaps Cyrus Broacha's image as a brand. The brand. is often debated. Celebrity-Target Audience Match Smriti Irani endorsing the WHO recommended ORS Campaign in India. Some more examples of compatible celebrity product match in which celebrity brand attributes get transferred to the brand and increases the brand equity is of Mallaika Arora & Freshizza from Pizza Hut. Aishwarya Rai & Nakshatra. At times. consumers do get confused about the brand endorsed when a single celebrity endorses numerous brands. mood-boosting. Various celebrities endorse NGOs and social causes since they believe in the social message that they need to convey to the audience. while some would understand that Amitabh Bachchan would have never used Navratan Tel. Similarly. and Mahima Choudhary claimed to believe in PETA's philosophy. They might get confused in the endorsement of Nerolac or Asian Paints. Sheetal Malhar. The recall then gets reduced and reduces the popularity of the brand. humorous and outspoken. Sunny Deol & Lux Undergarments. Also. Pepsi. One of the most successful campaigns has been executed by PETA in which celebrities like Shilpa Shetty. but might not remember brands like Britannia and Fiat. Amisha Patel. TVS Victor and MRF. Celebrity Controversy Risk The perfect example here is of Salman Khan and the controversy in which he crushed a man to death with his Pajero when he was driving under the influence of alcohol. Yana Gupta. For example. consumers remember ICICI. and thereby endorse the brand. for Amitabh Bachchan. etc. Parker Pens. Indian mothers can associate with Smriti Irani through the facets she projects on screen or in regular life which helps develop a connect with the target audience since mothers medicate their children with ORS. Irfan Pathan endorsing Hero Cycles has gained the brand immense recall and embarked through the positive association between the consumer and the brand. it boils down to the strength of the brand and the advertising content. On the other hand. Pulse Polio and BPL.

the celebrity's true belief in the value and benefit of the product). but the NIILM-CMS | Rajesh Singh.e. Internalization as a process of social influence is said to occur when individuals adopt the attitude or behavior of another person because that behavior is viewed as honest and sincere and is congruent with their value system. there are three processes of social influence. and even if they do.. It was found that celebrities are more commonly liked than a typical consumer spokesperson.Celebrity Popularity Celebrity Brand association like Garnier endorsed Tara Sharma & Simone Singh. Identification applies to the situation wherein the individuals emulate the attitudes or behavior of another person or group. we can understand why it works and the impact regions of celebrity endorsement. Identification & Internalization These latter two processes are particularly applicable to celebrity-endorsed advertising.. On the other hand. payment of fee) as to an internal motive (i. Roll No-29084 15 . According to Kelman. as a celebrity's reason for promoting a product can just as easily be attributed by the consumer to an external motive (i. its difficult to attribute it to the celebrities' endorsing the brand. but one would be sure that the magnitude of its impact is difficult to measure even if sales figures are at our disposal. Compliance infers that another individual or group of individuals influences an individual cause he or she hopes to achieve a favorable reaction from this other group. Celebrities are well-liked. Agni Diamonds & Riama Sen don't get much brand recall. The illustrations below explain the same: How Celebrity Endorsements Influence the Consumer The basis for the effectiveness of celebrity-endorsed advertising can be linked to Kelman's processes of social influence as discussed by Friedman and Friedman. The effectiveness of celebrity advertising traditionally has not been strongly linked to this process. HPCL has had increased popularity and share of voice due to the endorsement of the brand through Sania Mirza. simply because they aspire to be like that person or group.e. This process is the basis for referent power. interaction between the celebrity and the consumer. Impact Regions of Celebrity Endorsement While brand marketers with positive experiences would tend to believe that celebrity endorsements work and some would disagree. which result in an individual adopting the attitude advocated by the communicator: Compliance. However. This process of social influence is not directly applicable to celebrity advertising because there is little. which benefits from the dramatic impact of dual support of both the identification and internalization processes of social influence. An important issue of concern relates to the development of a strategy for use in Celebrity Advertising. if any.

5) put it. In one experiment. While the 'no-source' control group had a purchase intention rating of 2. and intent to purchase. Effectiveness of Celebrity Endorsers A study conducted by Charles Atkin and Martin Block focused on alcohol advertising and young audience to examine the impact of celebrity advertising in terms of social effects of advertising. 1978). 1977). the subjects exposed to the actor scored 3. Research conducted by social psychologists over the past 30 years demonstrates that a source perceived as highly credible is more persuasive than a low credibility sender (Hovland and Weiss. McGuire. A later survey reported that this proportion was up to 20% (Advertising Age. The sponsoring Company is the underlying source of any advertising message. Termini and Washington. Despite the use of famous endorsers. 1975). Roll No-29084 16 .1 by those seeing the celebrity endorsement.6. an advertisement for a fictitious brand of Sangria wine featured an endorsement attributed to either a celebrity (actor . Audience may also trust the advice given by some famous person.7. p.8 by control subjects versus 4. Friedman. actors or other types of entertainers. trustworthiness or dynamism. tie-in more closely with the internalization process needs to be looked into. College students read the ad and gave the ad 0-10 scales of believability. Hass. John Dewey (1910) conceptualized decision-process behavior as problem solving thoughtful. and therefore. the baselines of 4. Celebrity endorsers are considered to be highly dynamic. The sources that companies use to present their advertising message typically attempt to project a credible image in terms of competence. The most widely used celebrities are sports figures. the Company President.Al Pacino). and in certain cases. 1969. Termini and Washington cite a 1975 study showing that celebrities are featured in 155 of prime-time TV commercials.9. 1981). probable taste. celebrities may even be perceived as competent to discuss the product. For taste.0 compares to the celebrity group score of 5. with attractive and engaging personal qualities. but are motivated by genuine affection for the product (Kamen et al. NIILM-CMS | Rajesh Singh. a professional expert. There are several reasons why a famous endorser may be influential:     They attract attention to the advertisement in the cluttered stream of messages They are perceived as being more entertaining They are seen as trustworthy because of apparent lack of self-interest. the celebrity condition produced the highest scores. 1951. a typical consumer and no source (Friedman. None of the other three endorsers were as influential as the celebrated person. As Ajzen and Fishbein (1980. The most thoroughly studied source quality is credibility. The final element is due to the wide-spread attribution that major stars do not really work for the endorsement fee. but the individual models depicted in the advertising serve as the more visible communicator in many cases. Across these three measures. there is little published evidence regarding effectiveness. Believability was rated 2. reasoned action focused on need satisfaction. Decision Making Process & Purchase Decision Decades ago.techniques that can be used to enhance their credibility as spokespeople.

consumers will simplify the process by sharply reducing the number and variety of information sources and alternatives considered. The two problem solving processes above suggest that brand images have a relatively insignificant impact on the consumer's purchase decision if the product/service involves extended problem solving.. In limited problem solving. The sequence can have major variations." A lot of marketing research has shown that consumer decision follows the sequence of need recognition. Various product attributes are weighed and evaluated. in our workplace. They include Extended Problem Solving and Limited Problem Solving (Engel. or 500 . Roll No-29084 17 . It might be 50 people. the ranks of the highly visible in society are growing rapidly. alternative evaluation.. glide about in stretch limousines behind smoked glass. In extended problem solving. the brand images of product/service that involves limited problem solving will have a more significant impact on the consumer's purchase decision. and book entire restaurants for an undisturbed meal. CELEBRITIES & CONSUMERS NIILM-CMS | Rajesh Singh. But as our power to distribute images expands. purchase."Human beings are usually quite rational and make systematic use of the information available to them. life rarely holds such pleasures. and our place of worship. The Power of Visibility Most of us are invisible. Each of us has a small network of people who know us. however. and those who understand the transformation process utilize it to enhance their opportunities. our neighborhood. from one situation to the next in terms of the extent to which each of these steps is followed. search for information. Kinnear. The very nature of the decision often necessitates collection of information that is processed and stored. On the contrary. People consider the implications of their actions before they decide to engage or not to engage in a given behavior.a far cry from those whose high visibility earns them the privilege to vacation on private islands. Warshaw. 100. For most of us. Relation of BRAND. There are two types of decision-making processes defined. and then outcome. which leads to action. 1991). slip through side doors at theatres. thinking leads to feeling.

a mediocre product which is tastefully handled goes a long way. Now consider the interactions of these individual factors. The relationship between a product and its advertisement again can be either dependant or none. of course. classically executed advertisement with the bike and Sachin coming out as winners. the celebrity in the advertisement. So what next? The advertisement is important as a good product could see an early exit if the advertisement is handled badly. nowadays it is understood the product is of highest quality. the central idea being the impact on brand. Well. want or a desire. Believability is of vital importance. hence. a possible long term loyalty. exceptions can be there but then again it depends on the way it is done. hence. recall. The product is important. trust. Roll No-29084 18 . and otherwise. familiarity is some of the reasons that they are used. Imagine an Amitabh doing an advertisement for ad for youth apparel. the whole advertisement is a waste. the TVS Victor advertisement shows us the bike being compared to the bat of Sachin and the strokes he plays. The three major parts to a brand being shown are:  The Product  The Advertisement  The celebrity endorsing it It is important is to study the relationship between these factors and how they together act for or against the brand.Factors Impacting a Brand While Being Viewed By a Consumer in Media The model above shows the various factors that affect a celebrity endorsed brand while viewed by a consumer in the media (both TV and print). it may fulfill a need. Lastly. In that case. Relationship between a Celebrity & a Brand NIILM-CMS | Rajesh Singh. Quality is quintessential and. a shock value makes people remember the brand better and. The best of superstars can be doing the advertisement but if the product is far from the image the star has.

endorsement. Dwane Hal Dean studied the effects of three extrinsic advertisement cues viz. People who idolize their celebrities. they believe that they by adopting the brand that their celebrity endorses are becoming more like them. As time passes on. Goldsmith ET assessed the impact of endorser and corporate credibility on attitude-toward-the-ad. Hinton & McClelland (1986). When a consumer thinks about a brand. Negative information about the celebrity activates the celebrity node. event sponsorship and brand popularity on brand / manufacturer evaluation. age. associative learning principles were based on a conception of memory as a network consisting of various nodes connected by associative links. geography etc. push his brand. Another invaluable benefit from celebrity endorsements is the public relation opportunity. Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. celebrities and brands both represent nodes. the link with the celebrity node is animated to a certain level through spreading activation (Anderson 1983a). 152 adult consumers were surveyed who viewed a NIILM-CMS | Rajesh Singh. class. the consumer will also benefit. Collins & Loftus (1975). Celebrities usually form a very good example of a reference group appeal. The key to the process is the simultaneous activation of the brand and celebrity nodes.e. Rumelhart. actor and spokesperson. It was observed that endorsement significantly affected only product variables (quality and uniqueness) and one image variable (esteem). third party endorsement. There is a demographic and psychographic connection between the stars and their fans. In their study. and purchase intentions. This is especially true in case of new product11. attitude-toward-the-brand.To understand how consumers associate celebrities to brands is well documented by a research study by Anderson (1976). (1983) and Judd et al. The joint activation of brand and celebrity provides a path over which one's evaluation of the celebrity has an opportunity to transfer to the brand. Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand more noticeable. hence. In India. Demographic connection establishes that different stars appeal differently to various demographic segments i. (1991) provide empirical evidence demonstrating that attitudes can be affected in such a way. A celebrity's preference for a brand gives out a persuasive message and hence. This has shown to be having a positive effect on the people. In the research context. Celebrities can be used in four ways namely: testimonial. etc. while psychographic connection establishes that stars are loved and adored by their fans. have a biased affinity to the brand their favorites endorse. Right now the current hot favorite in India is roping in celebrities for social causes like pulse polio. The third party endorsement hence may be perceived as a signal of product quality. This is particularly beneficial to a marketer and a brand that can cash in on the success of the star and. gender.. Bollywood and sport personalities rule the mind-space and airwaves. which then activates the brand node to some degree and allows reduced evaluation of the celebrity to transfer to the brand. hence. Studies by Noffsinger et al. Roll No-29084 19 . which initially are unconnected but become linked over time through the endorsement process. Positive Impacts of Celebrity Endorsement on the Brand Approval of a brand by a star fosters a sense of trust for that brand among the target audience. It is also important to view the consumer in their social and cultural setting to further see how celebrity endorsements increase sales and impact brands over time. because the celebrity is benefiting from the brand.

or more than $1 bn in stock market value. the credibility of the company. Celebrity trap is when the celebrity becomes an addiction for the marketing team and the task to find substitutes becomes more and more difficult. Semi-partial endorsement indicates that when a company uses famous characters from any TV soaps for brand endorsements. They rated the credibility of the ad's endorser. 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. especially when there is anything negative regarding the celebrity associated with the brand in the news. associated with Jordan's endorsements shows that the anticipation of Jordan's return to NBA. Negative Impacts of Celebrity Endorsement on the Brand More often talked about is the extreme usage of a celebrity called 'lazy advertising'. there would be more relativity and credibility. that is inadequate content masked by usage of a celebrity. and the related increased visibility for him resulted in increase in the market adjusted values of his client firms of almost 2 percent. If she would endorse a brand. 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. Same can be said about Priya Tendulkar who used to play the character of Rajani. the advertising would create conflict in the minds of the target audience. leading to surfeit of celebrities. in itself does not guarantee sales. Looking at the effect of celebrity endorsement on the wealth of a company a classic example of Michael Jordan can be used. Two new drawbacks can be seen these days what marketers call Celebrity Trap and Celebrity Credibility17. Smriti Irani who plays 'Tulsi' in a famous soap has garnered a lot of support from the middle-class housewife today. The findings suggest that corporate credibility plays an important role in consumers' reactions to advertisements and brands. Value Meals). then brand is bound to NIILM-CMS | Rajesh Singh. associating with a star. It was observed that endorser credibility had its strongest impact on Aad while corporate credibility had its strongest impact on AB. 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. For example. Mc'Donalds (Quarter Pounders. Roll No-29084 20 . Others are so spellbound by the personality of the celebrity that they completely fail to notice the brand being advertised. and purchase intentions. Some viewers forget the brand that a celebrity is approving. independent of the equally important role of endorser credibility.fictitious advertisement for Mobil Oil Company. A popular drawback of celebrity endorsement is the 'Vampire Effect' or the celebrity overshadowing the brand16. Nike (Air Jordan). attitude-toward-the-brand (AB). and attitude-toward-the-ad (Aad). Quaker Oats (Gatorade) and Sara Lee (Hans Underwear). Also as said earlier. Study conducted by Mathur ET. At the time of rumors of Michael Jordan returning to NBA in 1995. A good example is the use of Boris Becker by Siyaram and Steve Waugh by ANP Sanmar. Celebrity credibility refers to skepticism by the consumers regarding the celebrities. consumers tend to relate to the character that he or she plays in the soap and hence can attract more credibility. he was endorsing products of General Mills (Wheaties).

may attenuate. Reid & Taylor. Parker pens. they reckoned they spent 40 . he received Rs 17 lakh for it. Hrithik Roshan in his highflying days reportedly made over Rs. K.19 investigated the effects of multiple product endorsement by celebrities on customers' attitudes and intentions. Nine Uses of Celebrity Endorsement 1) Establishes Credibility: NIILM-CMS | Rajesh Singh.50 per cent less on media due to the sheer impact of using Hrithik. Jain. Another main worry of the advertisers is that their celebrity endorser would get caught in a scandal or an embarrassing situation. Hajmola. celebrity credibility and likeability. as well as attitude towards the ad. When Aamir first endorsed Pepsi in 1995. Air Jordan's generated revenue sales of $130 million in the first year. For example when S. Chairman and President.'" In case of Nerolac Paints. "Using Amitabh Bachchan as our brand ambassador has helped in strengthening our brand image and recall within the target audience". Communications Custodian. Roll No-29084 21 . remuneration could run into millions of rupees for several years or may also include a profit sharing plan. Tide. It has worked in some cases. his Coke commercials in 1999 got him Rs 2 crore. Reid & Taylor said. D. It was suggested that when as many as four products are endorsed. the marketer of the Parker brand said. Tripp et al. The budget or cost is an important factor for celebrity endorsement. For example. ICICI. "Amitabh Bachchan is an icon with universal appeal and has helped us to reach out to the real 'Bharat. Sachin's endorsements got him $18 million over five years. which was endorsed by Amitabh Bachchan. Cadbury and a few social messages. Maruti Versa. The sales dropped miserably in the second year when Jordan missed 62 games due to a broken foot18.be affected. Multiple product endorsement also has a negative impact on customers' purchasing intentions. Kumar's used Hrithik Roshan for their launch advertising for Tamarind. Depending on the status of the celebrity. around 80% of the respondents when asked to associate Bachchan with any paint did so with Asian Paints. 20 crore in endorsements and events by 2001-02. Ltd. BPL. Mirinda. Tarun Joshi.' In fact. Superstar Amitabh Bachchan endorses multiple brands like Pepsi. which is the biggest competitor of Nerolac20. Luxor Writing Instruments Pvt. Dabur. Nerolac. agents and retailers have told us that already customers have started asking about the 'Amitabh wali suiting. They found that the number of products a celebrity endorses negatively influences consumer perception of the endorser and the advertising itself. while in some cases it has not.

Example: Shahrukh khan in Pepsi.Approval of a brand by a star fosters a sense of trust for that brand among the target audience. The role of a celebrity endorser in an advertising campaign is. Roll No-29084 22 .because the celebrity is benefiting from the brand.this is especially true in case of new products.). 3) Associative Benefit: A celebrity‘s preference for a brand gives out a persuasive message . Hrithik Roshan in Sony Erricson. class. geography etc. If the reputation is damaged. the consumer will also benefit.then the quality of his reputation dos suffer: particularly if it is to do with his (or her) public behavior. 6) Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. 4) 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. NIILM-CMS | Rajesh Singh. Example: Dyna ad by Katrina Kaif. both soft drinks majors put out high –profile damage control ad films featuring their best and most expensive celebrities. Dabur India roped in Bachchan for an estimated project of 8 crore. Example: Amitabh Bachchan with child in Dadur Honey. Example: Amitabh Bachchan in „Dabur Chwyanprash‟. when the even more controversial pesticide issues shook up Coca-cola and PepsiCo and resulted in much negative press. 2) Attracts Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. linked to the reputation of the celebrity. 8) Rejuvenating a stagnant brand: With the objective of infusing fresh life into the stagnant Chwyanprash category and staving off the competition from various brand . Example: Shahrukh khan And Amitabh Bachchan in Polio Promotion. 7) Mitigating a tarnished image: Cadbury India wanted to restore the consumer‘s confidence in its chocolate brands following the pitch following the high-pitch worm‘s controversy. without doubt. gender. more often than not for reasons other than professional . Sunny Deol in Lux cozi ad. While Aamir Khan led the coke fight back as an ingenious and fastidious Bengali who finally gets convinced of the product‘s purity. Similarly PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references to the ‗safety‘ of the product indirectly. so the company appointed Amitabh Bachchan for the job. Last year. Example: Dhoni in 7up 5) Demographic Connect: Different stars appeal differently to various demographic segments (age.

D is for Differentiation.what a brand image really does to consumers? Baran and Blasko explained. The Fred concept is not a guarantee to success.. most advertising does that entire so-called image stuff. There should be a meaningful link between the advertised brand and the celebrity endorser. Roll No-29084 23 . This proves to be a huge contributory factor to his effectiveness as an endorser. If there is no perceived disparity among celebrities. and perceive him or her as empathetic. Preity Zinta. Consumers must have the utmost respect and confidence for the celebrity. but it can serve as a guideline when selecting a spokesperson. The target market must be aware of the person. credible. The fundamental question is . The public respect them because of their distinguished careers and unassailable salesmanship. buying and preferring the brand to competition. The audience must be able to identify with the person. F is for Familiarity. Brand Image Formation & Brand Preference Having a congruent image between the brand and celebrity does not guarantee any positive effect on consumers' brand preferences. and Kapil Dev among others. and more important. There's no information about the product.. The target consumers must see the endorser as a cut above the rest. If consumers can immediately associate with an endorser. R is for Relevance. then the strategy will not work. E is for Esteem. So do Shahrukh Khan.9) The FRED Principle: This concept is seen as the foundation of a successful endorser selection. Amitabh Bachchan & Tendulkar have these. they will feel more predisposed to accepting. "Since most products aren't special. there's only information about the NIILM-CMS | Rajesh Singh. Michael Jordan is an example of an international celebrity that rises above the clutter. between the celebrity endorser and the defined target market. Each organization and its objectives are different. sincere and trustworthy. and should be evaluated on an individual basis.

Before we can scrutinize the effects of celebrity endorsement on the overall brand. and how it works.  Brand Appearance: Design of brand offers clues to quality and affects preferences. Bajaj.  Belief in Efficiency: Ranking from consumer associations. A deeper insight into this complex process is provided by the following theory.the multiplier effect Where S is a Successful Brand P is an Effective Product D is Distinctive Identity AV is Added Values The realm of the celebrity‘s impact is confined to bestow a distinctive identity and provide AV to the brand. we have to ferret the implicit nuances that act as sources of strong brand images or values:  Experience of Use: This encapsulates familiarity and proven reliability.13). The fact to be emphasized is that celebrities alone do not guarantee success. let us analyze the multiplier effect formula for a successful brand: S=P* D*AV -. Roll No-29084 24 . Kellogg‘s. Images of prestige or success are imbibed when brands are associated with glamorous personalities. To comprehend this. The celebrity‘s role is the most explicit and profound in incarnating user associations among the above mentioned points.  The Meaning Transfer Model NIILM-CMS | Rajesh Singh.kind of people who might be inclined to use the product. But one has to remember that endorsing a celebrity is a means to an end and not an end in itself. the effects are examined with a social psychological framework. Thus. newspaper editorials. The Process of Celebrity Endorsement The process of celebrity endorsement is more of meaning translation & meaning application. know what advertising is. 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. etc.  Manufacturer‟s Name & Reputation: A prominent brand name (Sony. 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 image. & Tata) transfers positive associations. People realize that celebrities are being paid a lot of money for endorsements and this knowledge leads them to cynicism about celebrity endorsements. But the aura of cautiousness should always be there. as consumers nowadays understand advertising. "The health of a brand can definitely be improved up to some extent by celebrity endorsement. the celebrity does not have the power to improve or debilitate the efficiency and features of the core product." (p.  User Associations: Brands acquire images from the type of people who are seen using them.

But. the author to this model. from the brand to the consumer. and finally. an image of "dependability" is tagged on to the brand under promotion. And when he endorses Castrol. Figure 1: The Meaning Transfer Model To explain it with the help of an example. the marketing or advertising firm first would determine the NIILM-CMS | Rajesh Singh.McCracken. "In the best of all possible worlds. upon the meaning he or she brings to the endorsement process. in part. the major challenge before them is to find the right faces for their brands or in other words celebrity management. Dependable". The Importance of Celebrity Management In a world full of faces. "The effectiveness of the endorser depends. we can take the case of Rahul Dravid and Castrol. has suggested that." The celebrities' effectiveness as endorsers stems from the cultural meanings with which they are endowed. Roll No-29084 25 . McCracken quotes. The cricket icon is seen as "Mr. It is a three-stage process of meaning transfer that involves the formation of celebrity image. the ones' which bolt from the blue are perhaps of the celebrities. transfer of meaning from celebrity to the brand. The advertisers are always on the lookout for such faces for the purpose of endorsement.

cognitive structure that represents some stimulus domain. The atypical or incongruent items are. compared to a piece of information that is consistent with the schema. The Associative Network Model suggests that information inconsistent with an individual's schema may be quite salient and information will." . Responsible advertisers are the drivers who keep us on the right track. and retrieval of information. place. this information would be conceptually linked to a larger number of items in the memory. more benevolent society. then advertising is the spark. This can harm the trustworthiness and credibility NIILM-CMS | Rajesh Singh. Schemas are involved in encoding.If the celebrity is strongly associated with the brand then the occurrence of the negative publicity can spill over the brand. In the case of well-known celebrities.g. encoded with a rather distinctive "tag" and stored as a unique.  Schema-Based Expectancy Theory A schema is an abstract. therefore. 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.. or thing. event. retention. This leads to higher recalling for incongruent items than for typical items. leading to a richer. interpretation. separate unit." 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. acquired over time. individual would typically have personal relevant schemas (person schemas). When a celebrity endorses a brand.Brian Philcox Risks Associated With Celebrity Endorsement The various risks associated with celebrity endorsements are as follows: o Negative publicity . e. They can influence perceptual cognitive activities through the generation of expectancies. Roll No-29084 26 .. It would then consult a roster of celebrities and the meanings they made available and taking into account budget and availability constraints would choose the celebrity who best represents the appropriate symbolic properties.symbolic properties sought for the product.. a person. It is organized through experience and consists of a knowledge structure. 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. "If commerce is the engine of our economy. And empirical researches confirm significantly higher recalling when the image of the celebrity is congruent with the brand image. 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. They can determine what information will be encoded or retrieved from memory. be attended to more closely and be processed more deeply. Therefore. on the other hand. celebrity management is very important for the success of any brand.

This risk arises when the celebrity chooses to endorse several different products simultaneously which might leave the consumers confused.. E. Overuse . o Overshadowing .Sometimes the company can use many different celebrities to appeal to different market segment. Extinction .g. If the celebrity contract is for a considerable period of time..The favorable response obtained by a particular brand may weaken over time if the brand gets significant exposure without the association of the celebrity. Overexposure . Salman Khan lost his endorsement deal with Thumbs-Up after his infamous incidents like buck-killing and rash-driving. then it can lead to draining out capital without proper return. Pepsi. Selection of Celebrity NIILM-CMS | Rajesh Singh. endorsements can work as a force multiplier. A deeper insight in the impact of celebrity endorsement on consumers' minds can be explained by the meaning transfer model. But multiplicity of endorser might blur the image of the brand and reduce the effectiveness of the means of persuasion. for celebrity endorsements to work effectively there are some fundamental ground rules: o o o o The brand promise and the brand personality should be clearly articulated. o o o o Therefore. Boost. Establish explicitly what the celebrity is going to communicate Once these criteria are met. the risk of consumers focusing on the celebrity and not on the brand exists. Fiat.g. Sachin Tendulkar endorses several brands such as MRF. The communication objectives for the campaign should be frozen. Financial Risk .The decision for hiring an expensive endorser may not be always feasible if there is a poor brand fit. Focus must be on the synergy between the brand and the celebrity image.When celebrity endorser is used.in the mind of the consumers. TVS Victor. explained in the next section. etc. Roll No-29084 27 . E.

which are discussed here after. biased image of the group to which they belong. rather than on their own individual characteristics.  The TEARS Model NIILM-CMS | Rajesh Singh. She became a household name all Across USA known as the Coca Cola Girl.  Stereotyping Tellis defines stereotypes as perceptions and depictions of individuals based on simplistic. etc. She did wonders for the brand and this led the company to release a series of these advertisements for over 30 years. There are various scientific ways in which the right celebrity is selected for the product endorsement. For example: its better to select celebrities who say are teens for chocolate advertisements and females for detergent ads. Roll No-29084 28 . Soon people forgot her as an actress but remembered her as the Coca Cola girl.Celebrity endorsements are not new. a Metropolitan Opera Star as their first model or endorser. One of the earliest examples is Coca Cola who used Lillian Nordica.

Golfer Tiger Woods for a sports brand.a child artist promoting a chocolate brand.  Celebrity credibility.  Cost consideration. promoting ICICI Bank.  A likelihood-of-getting-into-trouble factor Selecting the right celebrity does more than increasing sales.  Expertise: For example .  An endorsement saturation factor.  A working ease and difficulty factor.Tennis player Anna Kournikova who earns 10 Million dollars per year in just endorsement.  Celebrity attractiveness. it can create linkages with the celebrities' appeal.Former Miss World Aishawarya Rai and the Eye donation campaign. 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'.  Celebrity & brand match up. NIILM-CMS | Rajesh Singh.  Attractiveness: For example . Roll No-29084 29 .The attributes highlighted by the acronym "TEARS" are gauged for celebrity selection. A celebrity scoring high on all the above attributes can turn out to be a good endorser for the brand under question.  Similarity: For example .Legendary actor Amitabh Bachchan who is an icon of trust. It gauges the following information:  Celebrity & audience match up.  Respect: For example .  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. These are:  Trustworthiness: For example . thereby adding new dimension to the brand image.

Companies need to perform a cost-benefit analysis prior to endorsement.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. Hampstead. Celebrity endorsement is an expensive means of brand promotion and the price burden almost always shifts on to the consumers. if not. Figure: Multiple Brand Endorsement (Shah Rukh Khan) Also. Britannia Tiger. future sales. Sushmita Sen . Fiat Sienna.J. Leander Paes & Mahesh Bhupati . Fiat Palio.Pepsi. Boost. Tripp et al. Sachin Tendulkar. and Aishawarya Rai Coke.Adidas. in the long run. revenues and profit from the present investments on celebrity endorsement. Gillette. prior to product promotion.Epson. Profit The most important issue is that of return on investment (ROI). Celebrity Endorsement: The Issues Involved There are several factors to consider before resorting to celebrity endorsement. Adidas. A few examples: Sachin Tendulkar . Roll No-29084 30 . Visa Cards and Home Trade). Saurav Ganguly . NIILM-CMS | Rajesh Singh.  Multiple Brand Endorsement v/s Multiple Celebrity Endorsement In the advertising landscape. Shah Rukh Khan . Colgate Total. MRF. lead to confusion among the consumers. A company must analyze the prospect of endorsement from 360 degrees. the use of multiple celebrities to endorse a brand may hinder the meaning transfer process. The process of gauging the effectiveness of endorsement on the overall brand is but difficult. TVS Victor. for example. then it narrows the companies' profit. and thus. 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.Britannia. The companies expect to bring.  Price vs. we find either a celebrity endorsing multiple brands or multiple celebrities being used to endorse a single brand. There is no single formula to win in the world of marketing.

The values that display themselves in regrettable behavior could transfer themselves to the brand. A person wellknown in a society can have greater impact than a celebrity of a different world. The marketing function of a company should also understand that brands should assume a much greater space than the celebrities. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. The companies have to first clarify their business objectives. while designing an ad campaign. So the celebrity endorsement cost has to be weighed up against the return on marketing investment. because their association may be temporary but the brands are permanent. interests and lifestyles. there can be unnecessary investments without proper return. Roll No-29084 31 . 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. Framework to Make Effective Celebrity Endorsement Program NIILM-CMS | Rajesh Singh. Otherwise. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial.Figure: Multiple Celebrity Endorsement (Adidas & Hyundai Santro) Similarity between the target audience and the celebrity is the third important attribute. goals. Another argument against celebrity endorsement involves the behavior of the celebrity. brand values and then decide who the celebrities are who can carry them forward. If the endorser and receiver have similar needs. Besides. the position advocated by the brand communication is better understood and received.

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? Figure: Evolution of Celebrity Endorsements One can gauge the performance of celebrity endorsement marketing program across the various stages of development (Refer to Figure). Roll No-29084 32 .With the cut-throat competition and continuously changing market dynamics. We have attempted to prepare a framework to build a more effective celebrity endorsement program: NIILM-CMS | Rajesh Singh. one has to assess the market conditions and re-evaluate its current marketing strategies such as its portfolio of celebrity endorsement.

the early advertisements (Refer Annexure 1) with Amitabh Bachchan showed low brand-celebrity fit. Though Parker pens had a positioning of premier pens. Figure 3 suggests strategies to be adopted by a company depending on its brand positioning and the brand fit with the celebrity. but the fit with the celebrity is high. 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. Figure: Brand-Celebrity Attribute Fit Matrix  If the brand-celebrity attribute fit is slow. etc. The company should continuously track the effectiveness of the celebrity endorsement through surveys. strategic business objectives NIILM-CMS | Rajesh Singh. The celebrity attributes align with the company's brand. This is what happened when Good lass Nerolac Paints roped in Amitabh Bachchan as their brand ambassador. the company should adopt a "Monitor and evaluate" strategy. the company should adopt the strategy of "Keep and enhance". and the recall value is likely to be very low. Roll No-29084 33    . defeating the entire purpose of signing the celebrity. The attributes of the celebrity should be intrinsically valuable and aligned with the product. monitoring the sales. brand and company. The consumers are unlikely to connect between the brand and the celebrity. then the company should adopt "Eliminate or avoid" strategy.1) Align Celebrity Endorsement With Business Objectives. When the positioning of the brand is high but the fit with the celebrity is low. When the positioning has not been effective.

The endorsement costs are primarily driven by the endorsement fees and promotion outlays. Roll No-29084 34 .J K Tyres relationship works well in this category. the company should follow the strategy of "Grow and partner".  In the ideal quadrant when the positioning effectiveness is high and celebrity fit with the brand is also high. while eliminating those that prove too costly. These are the intangible benefits that the company will accrue in the long-term. to measure the effectiveness and the impact of celebrity endorsement in the short and long term.redistributing the resources and marketing efforts to those celebrities with the greatest potential to increase value. geographic regions. The company should have proper metrics in place such as increase in sales. or specific product lines. companies can manage the celebrities as portfolios . In case of Coke.measuring the real performance of a celebrity endorsement against the company's business objectives. 2) 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 . 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 categories: -  Incremental Sales Companies can quantify the effect of the celebrity programs on sales by performing year-to-year or quarter-to-quarter sales comparisons for targeted consumers. the brand has firmly established the "Thanda" position in the minds of the consumer. These are the tangible benefits that a company derives from its endorsement strategy.and primary customer segment.  Value of Association: Association value is derived from the target customers who associate the company / brand with the celebrity.   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. By situating potential celebrity on the matrix. The Narain Karthikeyan . with Aamir Khan playing the perfect role. NIILM-CMS | Rajesh Singh. brand awareness and customer preference.

3) 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: 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. the companies use popular.Primary research can also be done to reveal the impact of the celebrity on target customer's propensity to purchase. primary research can be conducted to evaluate changes in the customer loyalty. Instead. etc. they should ask the respondent the brands associated with the celebrity. Additionally. By gauging the top-of-mind recall can enable the company to find out if a connection is made between the brand and celebrity. Value is also derived by revisiting the celebrity portfolio to NIILM-CMS | Rajesh Singh.  Brand Recognition One of the objectives of celebrity endorsement is to increase brand awareness. though incorrect. survey approach by asking the respondent which celebrity endorsed their brand. However. Roll No-29084 35 . customer preferences.

A few guidelines for formulating a well-defined negotiation strategy would include:  Understand the Competition of Celebrity Except for few venerable celebrities. when he is actually brand ambassador for Pepsi. identify new celebrities that are capable of achieving company goals and negotiate for additional rights from the existing contracts. For instance.  Understand 'Celebrity' Clutter There could be a degree of clutter with the celebrity endorsing many more brands and companies. which can be traded at market price. A large extent of this can be successful if the company can develop and execute coordinated. This clutter can impede the ability of the company to capture the image and awareness required to generate value from the endorsement.  Include Value-in-Kind Payments Companies can reduce their risk and endorsement costs by substituting out-of-pocket cash payments with value-in-kind. Additionally. a company can increase its benefits by re-examining (and altering. most of the celebrities quote their price in expectation of negotiation.determine ways to reduce costs and increase benefits. The company should benchmark the contractual fees and benefits against that of comparable celebrities to ensure the package is equivalent. as well as the amount and benefits conferred on the company. 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. if needed) its promotion strategy to create deeper brand association. Roll No-29084 36 .  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. preplanned negotiation strategy which will enable it to improve the contractual fees and media commitments stipulated in the contract. Amitabh Bachchan was shown drinking Thumbs-Up in the Hindi movie Kaante. Why Celebrity Endorsement Fails? NIILM-CMS | Rajesh Singh.

etc.  The Symbiotic Model NIILM-CMS | Rajesh Singh. and qualification to talk about the product. Example: Michael Jordan lost his endorsement deals when he announced in 1991 that he's HIV-positive. brand may also fail to get noticed given a recent negative publicity of the celebrity endorser.  The Solutions As discussed. The success of celebrity endorsement also depends upon the capacity. Thinking on the similar lines. Pepsi severed its association only with these stars. but its relationship with cricket continued. the advertisers must associate the celebrity to the advertisement and not vice versa. To avoid any bad publicity arising out of celebrity defames. the advertisers shouldn't identify the brand to associate with the celebrity but do vice versa. It wasn't until July 2003 that he landed his first endorsement deal since the announcement. knowledge."-William Feather Another reason for the celebrity endorsement to turn against the brand is due to "Overshadowing". So when Azharuddin and Jadeja got embroiled in the match-fixing controversy. Roll No-29084 37 . celebrity management is very crucial to avoid the brand-celebrity disconnect. brand failures. negative perception after use of product / service (inferior products).There may be cases where brands are not able to take-off even after the backing of celebrities. the impression is not always strongly linked to the advertised brand.  The Reasons According to leading management thinker. Finally. Proper market research should be carried out and right positioning strategies should be in place. For Example: Pepsi while capitalizing on the popularity of cricket and films in India used several cricketers and film stars in their ads. experience. 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 product. misapprehension of the meaning of the endorsement. Dr. though the celebrity generates higher levels of attention among viewers. companies may resort to multiple celebrity endorsement. If the consumers have questions in their minds regarding the quality or performance of the product then even God cannot save the brand." Therefore.the man he is and the man he wants to be. Seamus Phan. and subsequently. And unfortunately. "The philosophy behind much advertising is based on the old observation that every man is really two men . And this leads to speculations in the Ad World on the soundness of celebrity endorsement as an effective communication strategy. Failure may be attributed to improper positioning (Example: Amitabh Bachchan. "Many celebrity endorsements fail because they identify a celebrity they like in an emotive and un-researched 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. Abhishek Bachchan & Maruti Versa). There shouldn't be any ambiguity or confusions when showing the celebrity in the advertisement.

There are various symbiotic relationships that can exist between two organisms. Also. there should be absolute symbiosis between the two entities. other unaffected Competition (C2): Both are harmed    Celebrity endorsement is a complex process of balancing your risk with your gains. Hrithik Roshan) Neutralism (N): None of them benefited or harmed (Example: Amitabh Bachchan. we can propose our own model taking cue from the biological kingdom. To achieve a perfect success. Abhishek Bachchan and Maruti Versa) Amensalism (A): Only one of them is harmed. Sachin Tendulkar. Roll No-29084 38 .Oscar Wilde Advantages of a Celebrity Endorsing a Brand NIILM-CMS | Rajesh Singh. "The pure and simple truth is rarely pure and never simple. There may be one of the six effects to the celebrity endorsement process: - Figure: 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 visualize two entities "brand" and "celebrity".Based on our understanding of the celebrity endorsement process. other is harmed (Example: Azharuddin and Pepsi. Similarly. Home Trade & Shah Rukh Khan.

Actress Catherine Zeta-Jones is used by T-Mobile and Elizabeth Arden. BMW. which did not even know the brand. The Spice Girls and Pepsi) 4. Managers perceive celebrities as topical.this is especially true in case of new products. Higher degree of recall: People tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value. Rolex. NIILM-CMS | Rajesh Singh. Last year.g. A good example of integrated celebrity campaigns is one of the World‘s leading pop groups. Associative Benefit: A celebrity‘s preference for a brand gives out a persuasive message . 8. and Nike. 5. PR coverage: is another reason for using celebrities. which create high PR coverage. when the even more controversial pesticide issue shook up Coca-Cola and PepsiCo and resulted in much negative press. Mitigating a tarnished image: Cadbury India wanted to restore the consumer's confidence in its chocolate brands following the high-pitch worms controversy. 3. Demographic Connect: Different stars appeal differently to various demographic segments (age. Across categories. advertisers queue up to have it splashed all over. 7. both soft drink majors put out high-profile damage control ad films featuring their best and most expensive celebrities. the consumer will also benefit. more and more brands are banking on the mass appeal of celebrities. whether in Products or services. who have not only appeared in advertisements for Pepsi. As soon as a new face ascends the popularity charts. While Aamir Khan led the Coke fight back as an ingenious and fastidious Bengali who finally gets convinced of the product's `purity. The accruement of celebrity endorsements can be justified by the following advantages that are bestowed on the overall brand: 1. so the company appointed Amitabh Bachchan for the job. At launch. Establishment of Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience. celebrity-company marriages are covered by most media from television to newspapers (e. Roll No-29084 39 . but also in product launching and PR events. Golf champion Tiger Woods has endorsed American Express. 2. 6.because the celebrity is benefiting from the brand. Shah Rukh Khan endorsed Santro and this ensured that brand awareness was created in a market. We had the Shah Rukh-Santro campaign. and Noreico. the Spice Girls. Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter of a few months. class.' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references to the `safety' of the product indirectly.).Brands have been leveraging celebrity appeal for a long time. 007 Pierce Brosnan promotes Omega. geography etc. Indeed. gender. Psychographic Connect: Celebrities are loved and adored by their fans and advertisers use stars to capitalize on these feelings to sway the fans towards their brand.

Both of these campaigns were aborted due to celebrities getting in the way of Effective communication. Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. But now Tendulkar endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has scaled down. With the Australian cricketer testing positive for consuming banned substances and his Subsequent withdrawal from the event. Roll No-29084 40 . then the audience will remember the celebrity and not the brand. 11. bang in the middle of the event. 3. PepsiCo – the presenting sponsor of the World Cup 2003 . who are willing to endorse anything for big bucks. Another example could be the Castrol commercial featuring Rahul Dravid. whom the company used for its recipe advertisements.is he actually worth it? The 2003 Cricket World Cup also threw up the Shane Warne incident. Celebrities endorsing one brand and using another (competitor): Sainsbury‘s encountered a problem with Catherina Zeta Jones. The vampire effect: This terminology pertains to the issue of a celebrity overshadowing the brand. 2. 10. 5. Examples are the campaigns of Dawn French—Cable Association and Leonard Rossiter-Cinzano. when she was NIILM-CMS | Rajesh Singh. The reputation of the celebrity may derogate after he/she has endorsed the product: Pepsi Cola's suffered with three tarnished celebrities .found itself on an uneasy wicket 4. which caught Pepsi off guard.9. Disadvantages of a Celebrity Endorsing a Brand: The celebrity approach has a few serious risks: 1. If there is no congruency between the celebrity and the brand.Mike Tyson. Example. when Tendulkar went through a prolonged lean patch recently. Madonna. and Michael Jackson. Since the behavior of the celebrities reflects on the brand. MRF was among the early sponsors of Tendulkar with its logo emblazoned on his bat. This may be termed as commoditization of celebrities. celebrity endorsers may at times become liabilities to the brands they endorse. Celebrity endorsement can sometimes compensate for lack of innovative ideas. the inevitable question that cropped up in corporate circles . Inconsistency in the professional popularity of the celebrity: The celebrity may lose his or her popularity due to some lapse in professional performances. Multi brand endorsements by the same celebrity would lead to overexposure: The Novelty of a celebrity endorsement gets diluted if he does too many advertisements. Dabur India roped in Bachchan for an estimated Rs 8 crore. For example. Rejuvenating a stagnant brand: With the objective of infusing fresh life into the stagnant chyawanprash category and staving off competition from various brands.

Madonna. The personality of Pierce Brosnan is best characterized as the perfect gentlemen. It is of paramount importance that there is an egalitarian congruency between the persona of the celebrity and the image of the brand. Each celebrity portrays a broad range of meanings. intense and Modern women associated with the lower middle class.caught shopping in Tesco. Roll No-29084 41 . is perceived as a tough. A similar case happened with Britney Spears who endorsed one cola brand and was repeatedly caught drinking another brand of cola on tape. involving a specific personality and lifestyle. Mismatch between the celebrity and the image of the brand: Celebrities manifest a certain persona for the audience. whereas Jennifer Aniston has the image of the ‗good girl from next door‘. 6. for example. NIILM-CMS | Rajesh Singh.

RESEARCH. ANALYSIS & FINDINGS RESEARCH & ANALYSIS NIILM-CMS | Rajesh Singh. Roll No-29084 42 .

Do you agree with the concept of brand ambassadors? o Yes o No 4.Questionnaire A market survey on Do Celebrity Endorsement Sell? 1.What are the chances that you would buy a new product just because of the presence of a celebrity? o Definitely Yes o Will Not o Might Be 6.Are you influenced by the presence of a celebrity in an advertisement? o Yes o No 2.What would be the contribution of a celebrity in building up a brand image? o Totally builds up the image o Doesn‘t make any difference to the brand o Celebrity + Quality product builds up the right image 7.Do you think celebrities make a difference to the image of the brand? o Yes o No 3.Will you compromise on your current preference if the competitor brings in ads featuring your favorite celebrity? o Yes o No 5.Do you believe products specifically advertise by the celebrities are of good aspect? o Yes o No o Not sure NIILM-CMS | Rajesh Singh.What if your favorite celebrity endorses a product which has the same quality but at higher price. which the other competitors provide you at cheaper rate? o You will go with the same brand o You will go with the brand at cheaper rate 8. Roll No-29084 43 .

What do you pro the most when purchasing a product? o Price of the product o Celebrity endorsement o Quality of the product o Value for money 10.9. Roll No-29084 44 .What do you think is the purpose for the companies to choose celebrity endorsement for promoting their products? o Easy naming of product o Can‘t generate new ideas o To know how to increase sales and profit o To compete strongly 1-Are you influenced by the presence of a celebrity in an advertisement? Interpretation- NIILM-CMS | Rajesh Singh.

2-Do you think Celebrities make a Difference to the Image of the Brand? InterpretationThough it is observed in the last graph that at least 56 percent people are not influenced by the presence of the celebrities in the advertisements‘. No 30% Yes 70% 3. However 44 percent are of the view that the presence of a celebrity will get them to go and ask for the product. This is an aspect due to which celebrities are used by advertisers. this graph clearly contradicts the same. It is been observed that at least 70 percent people think that celebrities make a difference to the image of the brand.Do you agree with the Concept of Brand Ambassadors? Interpretation NIILM-CMS | Rajesh Singh. Roll No-29084 45 .It is evident from the chart that almost 56 percent do not blindly believe or get totally influenced by the presence of a celebrity.

Yes 18% No 82% 5. who say that they will go for it. Roll No-29084 46 .Again it can be observed from the pie chart clearly that almost three-fourth (74%) of the people believe that brand ambassador as a concept is very important.e. 82 percent feel that they will not go for the competitors products also if their favorite celebrity starts endorsing it. This shows brand loyalty among the young Indian consumers as the survey done has been focused mainly on the age group of 18-24 years. Hence it can be understood that people do get much influenced by celebrities endorsing a product and giving it their personality. However there still are 18 percent. No 26% Yes 74% 4-Will you compromise on your current preference if the competitor brings in ads featuring your favorite celebrity? Interpretation The majority of the people i.What are the chances that you would buy a new product just because of the presence of a celebrity? NIILM-CMS | Rajesh Singh.

Definitely Yes 4% I Might 41% Will Not 55% 6. The second highest percentage goes to those people who are confused. The minimal 4 percent people are willing to purchase the product only because of the presence of the celebrity.What would be the contribution of a celebrity in building up a brand image? NIILM-CMS | Rajesh Singh. whether they will or not purchase the product only because of celebrity. Roll No-29084 47 .Interpretation More than 50 percent people here are not willing to purchase a product only because of the presence of the celebrity.

Interpretation It can be easily concluded from the graph that majority feel that celebrity in addition to quality product builds the brand image and not only the celebrities. Totally builds up the image 4% Doesn’t make any difference to the brand 15% Celebrity + Quality product builds up the right image 81% 7-What if your favorite celebrity endorses a product which has the same quality but at higher price. Also chunk of people think that celebrities doesn‘t Make any difference to the brand image of the product. which the other competitors provide you at cheaper rate? Interpretation NIILM-CMS | Rajesh Singh. Roll No-29084 48 .

they will go with the cheaper brand even though their favorite celebrity endorses the other product which is costlier. Roll No-29084 49 . You will go with the brand at cheaper rate 70% You will go with the same brand 30% 8. It shows that today‘s generation is smarter and their decisions are not driven by emotions.Do you believe products specifically advertised by the celebrities are of good aspect? Interpretation NIILM-CMS | Rajesh Singh.Majority of the lot thinks that if they are provided with the same quality.

It can be safely assumed that most of them do it for money. Yes 11% Not Sure 44% No 45% 9-What do you pro the most when purchasing a product? Interpretation NIILM-CMS | Rajesh Singh. Roll No-29084 50 . There are also almost the same percentages of people who are confused about the status of the products advertised by celebrities. whether they are good or bad.45 percent think that products advertised by the celebrities are not of good quality.

Price of the Product 0% Celebrity Endorsement 0% Value of Money 52% Quality Of the Product 48% 10-What do you think is the purpose for the companies to choose celebrity endorsement for promoting their products? Interpretation NIILM-CMS | Rajesh Singh. Second comes the quality of the product.Most of the people are of the opinion that while purchasing a product they consider value for money the most. Roll No-29084 51 . While price of the product and celebrity endorsements have got 0 percent priority among buyers.

To compete strongly 37% Easy naming of product 26% Can’t generate New Ideas 7% To know how to increase sales and profit 30% FINDINGS It has been found that most of the people are not influenced by the presence of the celebrities in the advertisements. NIILM-CMS | Rajesh Singh. Roll No-29084 52 .Majority of the people think that companies choose celebrities to endorse their products so that they can create a better recall value of the product in comparison to their competitors.

Nobody is willing to waste their money for products at costlier rates only because of celebrities. There have been extensive studies relating to the process of celebrity endorsement and brand-building. This would thus help in pulling the competitors market share.It has also been founded that celebrities have an impact on the brand image of the product and People think Celebrities are as important as Quality. This is important for a company if it is launching up say a new brand in a sector which it wasn‘t operating. It shows that they are much influenced by Celebrity Endorsement. It also show brand loyalty among the young Indian consumers. People also agree to the concepts of Brand Ambassadors. Celebrity Endorsements do work in the Indian scenario. Most of the people are not willing to purchase a product only because of the mere presence of the celebrity. Majority of people think that a quality product backed by strong celebrity endorsements builds the brand image of the product. Roll No-29084 53 . Most of the people consider value for money while purchasing a product. After that Quality of a product is most important thing for them. These studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. CONCLUSION Celebrity endorsement can be a goldmine or a minefield for a company's brand building process. affordability and consistency for a Product. Majority of the lot thinks that celebrities advertise for the sake of money. So the role of NIILM-CMS | Rajesh Singh. The level and the magnitude of the effect vary with the celebrity and the product category but most Endorsements have a favorable impact. Most of the people are of the opinion that companies go for celebrity endorsements to create better recall value. Few celebrities have been more successful than those with almost parallel fame. However there still are 18% People who say that they will go for it seen their favorite celebrity in the ad. People will not compromise on their products even though their favorite celebrities endorse some other product.

and think more in terms of your Return-on-Ideas. Thumbs-Up was seen as the only example of seamless linkage between brand positioning and brand celebrity.. But. 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. Celebrity endorsement is also one of the ideas. building its image is... thus. who endorses the financial instruments of ICICI Bank. the marketing manager should be able to offer significant value propositions in the services / products offered to the customers. the hard part is letting go of what worked for you two years ago. Roll No-29084 54 . its easy to come up with new ideas. while Pepsi's Sachin and Bachchan (kite flying) ad was seen as one with a good script. which will bring good returns. was seen as an insightful and strong brand idea. the need of the hour is to focus less on your Return-on-Investment. Consumers can identify the clear difference between a good script and a good brand idea. Smart companies are using their brand ambassadors in other mediums such as movies to promote their brands. For all the flak it drew in its vainglorious attempts to run down competition. Therefore. of paramount importance. Thus.celebrity endorsement in the advertising space is equivocal and cannot be seen as an assured strategic tool to win profits. is shown as a branch-manager of ICICI Bank in the movie Baghban. If the former were true then brands would have vanished when the hype and hoopla around the celebrities faded. E. There is a gradual shift from the traditional approach of showing celebrities in advertisement to making them the "spokes-person" of the brand. Amitabh Bachchan. Wooing the key existing and potential target customers is the trait of a successful promotion strategy. BIBLIOGRAPHY REFERENCE: NIILM-CMS | Rajesh Singh. Any thoughtless adventure can be like the Sword of Damocles upon your head. revenues.g. Celebrities do not make brands but ideas do. For example. However. but will soon be out-of-date. "Brand" is the most valuable asset of any company. Thus. it is imperative to invest in good ideas. etc. market share. one needs to integrate celebrity endorsement with other marketing programs and ensure that the celebrity attributes align with the overall brand or company. Coca-Cola's Thanda Matlab. Companies that succeed in developing such an integrated IMC plans is the one to succeed in the longterm. Companies have taken celebrity endorsement to next level by projecting brands as a way of life.

14 March.in/india. Friedmen et al. (1976). Vol. Journal of Business. 76 No.monkeysurvey.com NIILM-CMS | Rajesh Singh.com www.businessweek. 2. Journal of Consumer Research.com http://www.in/india. Roll No-29084 55 . Journal of Retailing. 23.wikipedia.Philip A. WEBSITE: www.175-91. "Celebrities as spokesperson".marketingmanagement. Pg.Google. Pg.wiki.71-80. Vol.com www.html www.com/indian_industry www. Vol.indiatimes. "Impact of Celebrity Endorsement"./html www. Pg.471-82.hindustantimes. Stroke(2009).html http://en.marketingmania.com. ―The power of brand‖. Shimp (2007).

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