Index

1. Introduction
2. Reasons for Celebrity Endorsements
3. Use of Celebrities by the companies
4. Criteria for selecting a celebrity
. Endorsement! Ris" #s. Returns
$. Research %ethodology
&. 'iterature Re#ie(
). Conclusion
*. +ppendix
,Celebrities are li"e -emi. /ods0
1+ sign of a celebrity is that his name is often (orth more than his ser#ices.0
. -aniel 2 3oorstin
Introduction
Celebrities are the people who have significant influence in several domains of the society,
whether it is arts, music, movies and television, sports, culture, politics and even religion. They
vary from film and television stars to musicians, sports personalities, politicians, and even
socialites who may have no defined career apart from looking beautiful and attending the right
events.
Celebrities are news worthy. Their star qualities draw the news & entertainment medias
attention to report not only on the issues directly relevant to the celebrity but also on the virtually
any public utterance they make.
Because of this reason, the number of celebrities endorsing various brands has been steadily
increasing over the past few years. arketers, also, believe in the power of celebrities to
influence the consumer!purchasing decisions. This is evident from the fact that today we find
celebrities in almost every other advertisement. "ow!a!days, celebrities are seen replacing the
models not only in advertisements but even on ramp.
#n #ndia, the latter part of the $%&s saw the emergence of a new trend ' brands started being
endorsed by celebrities. (indi film and T) stars as well as sportspersons were roped in to
endorse prominent brands. *dvertisements, featuring stars like Tabassum +,restige pressure
cookers-, .alal *gha +,an ,arag-, /apil 0ev +,almolive 1having Cream- and 1unil 2avaskar
+0inesh 1uitings- became common. ,robably, the first ad to cash in on star power in a strategic,
long!term, mission statement kind of way was 3u4 soap from (industan 3ever 3imited.
Today we see our celebrities endorsing for various product categories at the same time. *mitabh
Bachhan alone is endorsing for products like ,epsi, 0abur, ,arker pens, "erolac ,aints, Cadbury,
(imani fast relief, Boroplus, etc. 1hahrukh /han is seen endorsing (yundai 1antro, 1prite,
*irtel, Tag (euer watches, 3u4, 0ish T), 1unfeast etc.
Reasons for Celebrity Endorsements
The most common reason for using a celebrity is when the brands benefits are similar or greater
than others in the same category. The celebrity endorsing then becomes the primary benefit and
distinguishing factor. The celebrity in fact enhances the basic brand message and adds an
emotional connection to the brand that might otherwise have not been achieved.
The values and the style that a brand stands for can be best portrayed with the help of a celebrity
as they lead to increase in the brand recall and thus positively affect the sales of products. Then it
becomes very critical to have the best fit between the celebrity and the brand. Both should
complement each other.
The personalities are used in brand communications so that the brands message will stand out
among the clutter of advertising from their competitors. They can also be used to convince
customers of the credibility of the brands offerings.
Celebrities help portray the intangible virtues of an inanimate ob5ect 6 brand through their own
personality, which makes it easier for people to relate to. Therefore it can be said that they help
reinforce a purchase decision and develop an emotional link that binds the buyer to the brand for
a long time, this directly benefitting the company.
*nother reason for using a celebrity presenter is when the product category itself is so
complicated that many consumers trying to make a brand choice e4perience an 7information
overload8.
These personalities are used in brand communications so that the brands message will stand out
among the clutter of advertising from their competitors. They can also be used to convince
customers of the credibility of the brands offerings.
* celebrity endorsement is also a great 7brand awareness8 creation tool for new brands. The
celebrity can forge an easy bridge between newness and obscurity and consumer recognition.
This is all about the ability to convey to the target market that the celebrity is benefiting from the
new brand, and therefore they will too.
Use of Celebrities by the companies
* firm that decides to employ a celebrity to promote its products or services has a choice of
using the celebrity as9
Testimonial: #f the celebrity has personally used a product or service and is in a position to
attest its quality, then he or she may give a testimonial citing its benefits. :or instance *ishwarya
;ai endorses 3u4 by testifying the quality of the product as it forms a part of her consumption
basket.
Endorsement: Celebrities often lend their names to ads for product or services for which they
may or may not be the e4perts :or instance 1achin Tendulkar has been endorsing the ,alio brand
of :iat.
Actor: * Celebrity may be asked to present a product or service as a part of character enactment
rather than personal testimonial or endorsement. :or instance 1weta Tiwari of 7,rerna fame8
+/asuati <indagi ki - enacts as a housewife for "irmas ad campaign. #t has nothing to do with
her on screen or off!screen image. #n fact she 5ust enacts the character and e4pectations of a
normal housewife from a detergent bar.
Spokesperson: * celebrity who represents a brand or company over an e4tended period of
time often in print and T) ads as well as in personal appearances is usually called a companys
spokesperson. The reason for using celebrities a spokesperson goes back to their huge potential
influences. Compared to other endorsers, types, famous people achieve a higher degree of
attention and recall. They increase awareness of a companys advertising create positive feelings
towards brands and are perceived by consumers as more entertaining. =sing a celebrity in
advertising is therefore likely to positively affect consumers brand attitude and purchase
intentions.
Criteria for selecting a celebrity
(ow can the right celebrity be matched with the right brand to achieve the desired ma4imum
impact and results> The following five rules of celebrity endorsement in branding provide an
indication of this.
Rule 4ne! Credibility
The celebrity must be credible. This means that he6she must have a high level of e4pertise and
talent in their field. These merits bring value to the brand and indicate the intent of the brand in
being associated with the very best.
Rule 5(o! 3road and aligned +ppeal
The celebrity must be appealing to the brand target audience. This means that the celebrity must
also be appreciated and well liked by the ma5ority of people in the target sector.
Rule 5hree! 6ersonality
The celebritys personality must match the brands personality. 1ome brands often make the
mistake of choosing a celebrity to endorse their brands based on their popularity and appeal.
*lthough these attributes are important, it is essential to understand the significant role that a
celebritys personality brings to the brand.
?here a celebrity that portrays a different brand personality is used, it should be for a strategic
purpose such as brand re!positioning, new product launch or brand e4tension. #t goes without
saying@ the personality of the celebrity should also reflect a positive brand image rather than a
negative one.
Rule 7our! Uniform 6o(er
The celebrity must not overshadow the brand. This is particularly important for new and
upcoming brands. 1ome established brands already have powerful brand personalities, making it
a challenge for celebrities to outshine the brand. (owever other brands that are yet to ascertain a
high level of brand strength have to be careful in choosing a celebrity whose strength doesnt
surpass that of the brand.
Rule 7i#e! Constancy and retained rele#ance
The celebrity must have constancy and lasting appeal. This means that the celebrity should have
sustainability and the knack to maintain their image and positioning accordingly. This is often
based on how predictably successful a celebritys career and role is pro5ected to be.
?hile there are often category specific rules to consider, the five points above are a basic
indicator of what a brand needs to continually consider. *fter all, there is not a brand in business
that doesnt need to constantly evaluate itself and the value of the celebrities that endorse their
products.
The selection of an endorser who is viewed positively by consumers and who is known to
possess attributes which match up with the attributes of the product, is critical in order for the
indirect information to significantly impact the consumer$s perception. ismatched endorsers or
endorsers who are not viewed positively will have a much smaller impact on consumers.
An the other hand, an endorser who may not match up perfectly with the product, but who is
viewed positively may still have an effect on the consumer, although the effect will probably be
smaller than with a properly matched endorser. ?ell liked endorsers can have positive effects on
consumer perceptions even if they do not match up well with the product.
Endorsement! Ris" #s. Returns
The basic assumption underlying celebrity endorsement is that the value associated with the
celebrity is transferred to the brand and therefore help create an image that can be easily referred
by consumers.
Consequently by association the brand can very quickly establish the creditability get immediate
recognition and improve sales. (owever, there are many risks associated with such endorsers.
The brand could slide down 5ust as quickly as it moved up the consumers mind. There are many
cases of brands failing in the market despite famous celebrities endorsing them.
Ris"s
a8 Celebrity overshadows the brand: #n certain cases where the celebrity values category
benefit and brand values are not closely linked. There are chances that the celebrity is
remembered more than a brand. Cyber media research study reveals that %&B of the respondents
approached for research remembered the celebrity but could not recall the brand being endorsed.
b8 Necessary Evil: arketing have felt that once the brand rides the back of celebrity it
becomes difficult to promote it without the star as it becomes difficult to separate the role of
message and the role of the celebrity in selling the brand. The celebrity activity becomes an
addiction and the task to find substitute becomes more and more difficult.
c8 Celebrity creditability a question mark for the competent customer: Todays
marketing endorsement has to deal with a competitive and knowledgeable customer who has
begun to voice his opinion about their perception about endorsing a brand. Celebrity is said to
befool the public as he is paid to sell and communicate good things about the brand. (ence the
question of creditability of the celebrity being chosen to protect the brand is becoming pertinent.
d8 Conflicting mage: * mi4 match between the image of the credibility and the product can
damage both. =nless there is a synergy between celebrities own image and that of product
category the strategy of endorsement is rendered futile.
e! "ultiple Endorsements: The poly endorsement has led to a celebrity clutter. Celebrities
endorsing multiple products and multi brands in a category have left the customer confused and
have led to dilution in the celebrities value.
f8 nfluence of Celebrity scandals and moral violation on brands: a number of
entertainers and athletes have been involved in activities that could embarrass the companies
whose products the endorsed. ?hen the endorsers image is tarnished. #t actually leads to a
greater fall in image for the brand. :or instance *Charuddin was charged with betting and match
fi4ing, which created negative feeling and repulsive thoughts amongst people for the products he
was endorsing.
Returns
a8 #uild Awareness: * new brand can benefit greatly if a celebrity endorses it. #t can attract
the customers attention and inquisitiveness to see what product is being endorsed. ;esearch has
shown consumers have a higher level of message recall for products that are endorsed by
celebrities.
b8 Connects Emotionally: some celebrities like 1hahrukh /han, *mitabh Bachan command
great adoration among people. 1uch celebrities can positively influence their fans etc. to a great
e4tent and hence tend to even connect with the brand emotionally because of their star
endorsring it.
c8 $uick Connect: The communication process tends to hasten up due to the more presence
of a celebrity. This is because the star carrying the message tends to click with the customer
more. Because of likeability, recall attractiveness and creditability thereby helping the company
to clearly and quickly pass on the message to the target customers.
d8 "eans of #rand differentiation: =sing a celebrity is a source of brand differentiation.
#n a category where a brand is using a celebrity the first that picks one up could use it differently
itself in the market the same was done by Boost in the malted beverage category.
e8 Source of mitation and hence inducing increased product usage: celebrities
actually tend to become models or idols for the target audience who tend to start using the
product 5ust because the celebrity name is attached with it. :or instance, 3u4 has been used by
many as it is a beauty soap recommended by the beauty queen, *ishwarya ;ai.
f8 #etter #rand mage: The use of celebrities could also bring in positive image among the
masses for brand. The credibility and authenticity attached with *mitabh Bachan has inculcated
trust for #C#C#, "erolac ,aints and many others.
Research %ethodology
4b9ecti#e! ?e conducted a survey to assess the impact of celebrities on the purchase behavior of
the people.
-ata Collection! :or this survey we used a questionnaire of about D& questions related to their
purchase behavior, their assessment of the ads which they see on television, responses to the
products endorsed by the celebrities and impact of celebrities on their lifestyles. :or this survey,
we questioned about E& people of age group lying between D&!D% years and with middle level
income group.
-ata +nalysis!
:rom the responses of the survey, these were the ma5or findings,
?e can see that all the customers buy the products which suit their personality and their
style and when they buy any product, they develop an emotional attachment with the
product. This attachment may be less in case of low involvement products but it is very
high in the high involvement products. But this shows that whenever customers buy any
product, they dont buy 5ust for the sake of buying but they buy it due to the need or its
compatibility with their lifestyle or price, they are very much involved in the decision
process.
?hen people generally go for shopping, they choose a product based on its utility and
brand at the first place, price comes at the secondary position but the thought of celebrity
endorsing the product rarely comes in their mind.
*dvertisements with social awareness like polio drops ad, 5ago re campaign do affect the
people in their decisions and develop a sense of responsibility in the people. Thus people
are affected by the advertisements.
3ife of celebrities generates interest in the public but not to the e4tent to change their
perceptions about their lives and to affect their likings and disliking.
#t is seen that people like the celebrities for their looks, success, work but people dont
tend to follow their styles as they feel that their personalities are different, their social
circle is different so their styles may not suit the personality and life styles of general
public.
#f the celebrity endorsing a brand is changed then customers dont stop buying the
product if they like the product and are satisfied with its performance.
,eople are generally not persuaded to buy a product endorsed by a celebrity having a
negative image in public.
#f a product is endorsed by an e4pert in the field like Baba ;amdev then a ma5ority of
people dont tend to believe that product is of a good quality unless and until they try the
product themselves and see the results.
#t was also seen that during the #,3 tournament, people supported the teams of their
favorite celebrities irrespective of their performance.
,eople generally dont believe that product will affect them in the same way as shown by
the celebrities in the advertisements.
Thus from the results of this survey we can make out that the lives of the celebrities do affect the
lives of the people. ,eople are definitely attracted by an advertisement showing celebrity but to
convert them into customers they need engaging situations in the ads. Celebrities help in
transferring meaning through their personality to the product and from the product to the
consumer. The impact of every celebrity depends on their likeability, their performance in their
respective fields and their credibility. The celebrity endorsements help immensely in brand recall
amongst people as celebrities are easily recogniCable and immediately attract attention but
people do not get involved with the advertisements unless they are considering purchasing the
advertisement being advertised.
Conclusion
* celebritys identity and image has become an important and valuable commodity in todays
market place.
*n assessment of current market situation indicated that celebrity endorsement and advertising
strategies if correctly blended in terms of marrying the strengths of the brands with the
celebritys quality indeed 5ustify the high cost associated with this form of advertising.
(owever, advertising needs to be aware of the comple4 processing underlying celebrity
processing endorsement by gaining clarity on described concepts of celebrity source
creditability and attractiveness, match!up hypothesis, multiple product endorsement etc.
arketer has to decide how far the benefits outweigh the risks associated. *dvertisers agree that
celebrity endorsement does not itself guarantee sales. #t can create a buCC and make a consumer
feel better about the product, which in turn has to come to e4pectation of customers as a real star
by delivering the promise. There have been instances where the endorsement or real consumer
has started working better than celebrity endorsers. #n fact much research needs to be done on
customer testimonials, which tend to induce better creditability and helps in carving the
competent, rational, knowledgeable customer of today who is said to be the real hero.
+ppendix