IMPACT OF CELEBRITY ENDORSEMENTS ON OVERALL BRAND

SUBMITTED BY:
ANUSHREE GUPTA GIRISH GIANCHANDANI MANISH SEJWAL SHIVAM SACHDEVA AMIT TAYAL PIYUSH NAGPAL

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INTRODUCTION
The modern world of marketing communication has become colorful and inundated with advertisements, and it is hard to get noticed. It is an uphill task for the designer of an advertising campaign to differentiate itself from others and attract viewers’ attention. Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. 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. The challenge of the marketer is to find a hook that will hold the subject’s attention.In helping to achieve this, use of celebrity endorsers is a widely used marcom strategy.

Aristotle said, “Beauty is a greater recommendation than any letter of introduction.” This could aptly summarize why innumerable products are endorsed by celebrities, with or without a significant need or benefit from the same. Similarly every product has an image. The consumer tries to consume a brand which has the maximum fit with his/her own personality/image. The celebrity endorser fits in between these two interactions, where he tries to bring the image of the product closer to the expectation of the consumer, by transferring some of the cultural meanings residing in his image to the product. Indians are die-hard movie and sport buffs; and this aspect of the consumers has invited the concept of “Celebrity Endorsement” to the world of advertisement. The purpose of this paper is to analyze the role of Celebrity Endorsement in the process of brand-building by taking appropriate examples from the advertising landscape.

or design. symbol. it can be said that within a society. They have some characteristic attributes like attractiveness. extraordinary lifestyle or special skills that are not commonly observed. intended to identify goods or services of one seller or a group of sellers and to differentiate them from those of competitor”. sign. DEFINITION OF CELEBRITIES Celebrities are people who enjoy specific public recognition by a large number of certain groups of people. What is a Brand? The Dictionary of Business & Management defines a brand as: “a name. term. .3 DEFINING THE MEANING & SCOPE OF THE TOPIC BRANDING & CELEBRITY ENDORSEMENT Today. use of celebrities as part of marketing communication strategy is fairly common practice for major firms in supporting corporate or brand imagery. or a combination of them. Thus. celebrities generally differ from the common people and enjoy a high degree of public awareness.

. actor Amir Khan is the celebrity endorser for the product or brand called Coke.g. Television Personalities (Husain. Shahrukh Khan. in the Coco-Cola advertisement.. Celebrities can catalyze brand acceptance and provide the enormous momentum that brands require by endorsing the intrinsic value to the brand. where capturing a position in the consumers’ mind space is extremely tough. Sania Mirza..” So. But also for less obvious groups like businessmen (e. Michael Schumacher. Sachin Tendulkar. a “celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed. Madonna. Celebrities might endorse as a brand ambassador or a brand face. Anna Kournikova. Naomi Campbell. Entertainers (e. Cyrus Broacha. Bill Gates) or politicians.Clebrities appear in public in different ways. etc). and this process is referred to as Celebrity Endorsement. . Like actors (e. Mallaika Arora. Amitabh Bachchan..g. Oprah Winfrey.g.. Aamir Khan and Pierce Brosnan). Tiger Woods. And pop-stars (e.g.4 In this age of intense competition. Sports figures (e. etc). Milind Soman. Aishwarya Rai.). Preity Zinta. celebrity endorsements give an extra edge to the companies for holding the viewers’ attention. Smriti Irani).g. Definition of Celebrity Endorsement According to Friedman & Friedman. Shakira). Models (e...g. Vijay Mallya.

“The effectiveness of the endorser depends. has suggested that.5 THE PROCESS OF CELEBRITY ENDORSEMENT The process of celebrity endorsement is more of meaning translation & meaning application. upon the meaning he or she brings to the endorsement process.” The celebrities’ effectiveness as endorsers stems from the cultural meanings with which they are endowed. in part. A deeper insight into this complex process is provided by the following theory. The Meaning Transfer Model McCracken. . from the brand to the consumer. the author to this model. It is a three-stage process of meaning transfer that involves the formation of celebrity image. and finally. transfer of meaning from celebrity to the brand.

exchange. Endorsements The meaning transfer model proposes that the marketing / advertising firm at first should determine the symbolic properties sought for the product. fashioning cultural meanings into a practicable form. They pass these meanings into advertisements through meaning transfer process. lifestyle and culture. AB being able to convince the masses and in which he has succeeded. is perceived as a fun-loving. they should consult a host of celebrities and their associated meanings. so there was a huge possibility of Mr. personality. Preity Zinta. Consumers try to emulate the celebrities admired by them and try to find out the meaning in the similar fashion. They evoke the meanings in their persona with greater vividness and clarity. Celebrities offer demographic information with special precision and configurations of range of personality and lifestyle meanings. The advertisement program should take care about keeping the unwanted meanings out of the evoked set and capture only the salient meanings.6 The Meaning Transfer Model To explain it with the help of an example. which makes them exemplary and inspirational figure to the consumers. Celebrities bring the dramatic roles. Culture The celebrities deliver meanings with extra subtlety. Thereafter. Finally. Celebrities actually own their meanings because they have created them on the public stage by dint of intense and repeated performance. for example. . we can take the case of Amitabh Bachhan and Polio Drops Campaign. care for and use the consumer goods to appropriate its meanings. McCracken suggests that this stage of the model is most complex. Celebrities play a major role in this stage as they have created their own self. The chosen celebrity will have some meanings associated with it which is not sought after for the product. after considering budget and availability constraints. The advertisement must be designed to highlight the essential similarity between the celebrity and the product. the celebrity should be chosen to represent the appropriate symbolic properties. Consumption Consumers constantly search for the object world which gives them access to workable ideas of demography. He connects very well with every segment and every age. depth and power than anonymous models. as consumers must claim. vivacious and modern Indian woman.

Internal brand management. The marketing function of a company should also understand that brands should assume a much greater space than the celebrities. E. the celebrity endorsement can be considered only as a carrier of what’s inside. for they are the ones who have to deliver. They are emphasizing on their best practices. 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.g.g.This risk arises when the celebrity chooses to endorse several different products simultaneously which might leave the consumers confused. Fiat.If the celebrity is strongly associated with the brand then the occurrence of the negative publicity can spill over the brand. is becoming particularly important. E. •Overexposure . etc. TVS Victor.. under which the company ensures that employees and channel partners are convinced about the brand. customer relationship management.7 RISKS ASSOCIATED ENDORSEMENT WITH CELEBRITY The concept of “Total Branding” is slowly emerging and many companies are focusing on that. because their association may be temporary but the brands are permanent. Besides. . Salman Khan lost his endorsement deal with Thumbs-Up after his infamous incidents like buck-killing and rash-driving.. and employee training and knowledge management. while designing an ad campaign. Sachin Tendulkar endorses several brands such as MRF. Another argument against celebrity endorsement involves the behavior of the celebrity. But multiplicity of endorser might blur the image. The various risks associated with celebrity endorsements are as follows: •Negative publicity . the risk of consumers focusing on the celebrity and not on the brand exists. Thus. •Overuse .Sometimes the company can use many different celebrities to appeal to different market segment.. Boost.When celebrity endorser is used. •Overshadowing . Pepsi.

The favorable response obtained by a particular brand may weaken over time if the brand gets significant exposure without the association of the celebrity.8 •Extinction . Focus must be on the synergy between the brand and the celebrity image Establish explicitly what the celebrity is going to communicate .The decision for hiring an expensive endorser may not be always feasible if there is a poor brand fit. •Financial Risk . The communication objectives for the campaign should be frozen. then it can lead to draining out capital without proper return. Therefore. If the celebrity contract is for a considerable period of time. for celebrity endorsements to work effectively there are some fundamental ground rules:     Clear brand promise and brand personality.

Pepsi severed its association only with these stars. but its relationship with cricket continued. Dr. misapprehension of the meaning of the endorsement. and subsequently. the advertisers must associate the celebrity to the advertisement and not vice versa. The Reasons According to leading management thinker. The success of celebrity endorsement also depends upon the capacity. Abhishek Bachchan & Maruti Versa). Thinking on the similar lines. If the consumers have questions in their minds regarding the quality or performance of the product then even God cannot save the brand. .” Therefore. negative perception after use of product / service (inferior products). celebrity management is very crucial to avoid the brand-celebrity disconnect. 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. So when Azharuddin and Jadeja got embroiled in the match-fixing controversy. And this leads to speculations in the Ad World on the soundness of celebrity endorsement as an effective communication strategy. and qualification to talk about the product. “Many celebrity endorsements fail because they identify a celebrity they like in an emotive and unresearched manner and then try to create advertising to force-fit the celebrity into the creative concept. etc. knowledge. Seamus Phan. the advertisers shouldn’t identify the brand to associate with the celebrity but do vice versa.9 WHY CELEBRITY ENDORSEMENT FAILS? There maybe cases where brands are not able to take-off even after the backing of celebrities. For Example: Pepsi while capitalizing on the popularity of cricket and films in India used several cricketers and film stars in their ads. brand failures. Failure may be attributed to improper positioning (Example: Amitabh Bachchan. The Solutions As discussed.

goals. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. If the endorser and receiver have similar needs. Similarity between the target audience and the celebrity is the third important attribute. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. . The celebrity also must be accepted as a popular icon by a large cross section of the audience. The selection is in fact a collaboration. interests and lifestyles.10 FINDINGS IMPORTANT CELEBRITY ATTRIBUTES While selecting a celebrity as endorser. The most important attribute for a celebrity endorser is the trustworthiness. Apart from that. The second attribute in order of importance is likeability. A person well-known in a society can have greater impact than a celebrity of a different world. the position advocated by the brand communication is better understood and received. The target audience must trust that a celebrity carries a particular image and it must match with the product. the company has to decide the promotional objective of the brand and how far the celebrity image matches with it. from which both the company and the celebrity gains. expertise is also believed to be another important attribute.

propping Up Awareness and Trust Levels: Rahul dravid .Lack of ideas .Instant Brand Awareness and Recall .11 THE NEED FOR CELEBRITY ENDORSEMENT The charisma of the celebrities almost always entices people and their words are worshipped by a lot of people.Value for Money: . Hema Malini for B. the consumers are made to think that he is giving his opinion to go for this car. actress Rani Mukherjee has turned the tables for Bata’s ladies footwear brand called Sundrop as sales increased by a whooping 500%. Celebrity endorsements are impelled by virtue of the following motives: . . Their influence also goes on the political front. so she becomes a natural endorser for beauty related products (cosmetics.Celebrity values define. and refresh the brand image . Her fans want to know the secret of her beauty. where they are invited for political endorsement.P.bob .Psychological Factors: Celebrities generally satisfy the 'esteem needs' of an individual. Similarly.Celebrity adds new dimensions to the brand image .When actor Shah Rukh Khan endorses SantroZip drive. For example a movie actress is expected to possess a flawless skin and a blemish free face. Eg. .Instant credibility or aspiration PR coverage .J.To Communicate a Certain Message about the Company: Sachin Tendulkar as brand ambassador gave it the desired facelift and image for the launch of 'Victor' .. soaps.THE CELEBRITY EDGE . Govinda for Congress .P.Convincing clients WHY COMPANIES USE CELEBRITIES . powder). Amitabh Bachchan for S.

party-going. attention-grabbing brand and so is Fardeen Khan.12 . and capitalizes the celebrity resource through 360 degree brand communication. 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. Celebrity-Target Audience Match Smriti Irani endorsing the WHO recommended ORS Campaign in India. Greater the score of the below parameters. this paper develops a 14 point model. Our study reveals that the impact of celebrity endorsement is proportional to the 14 factors discussed in the model. The success of a brand through celebrity endorsement is a cumulative of the following 14 attributes. R. greater are the chances of getting close to the desired impact. . active. all top actresses have modeled for Lux. 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? Through research and analysis. Ditto with A. since our research proposes it as the foundation brick of the impact of celebrity endorsement.Celebrity Standing for a Single Brand:Think Zakir Hussain and you are reminded of 'Wah Taj' Taj Mahal tea. Celebrity Values . which can be used as a blueprint criterion which can be used by brand managers for selecting celebrities. From Leela Chitnis to Aishwarya Rai.To Position their Brand Distinctively: Lux worldwide has positioned itself as the 'soap the filmstars use'. The conjunction between the two has been immensely impactful and brand managers have utilised this endorsement through 360 degree reinforcement. Provogue’s positioning in the apparel market is of a young. Rahman for Airtel. Fit with the Advertising Idea 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. IMPACT OF CELEBRITY ENDORSEMENT The increasing number of endorsements throws a valid question to the consumers.

5-3. 2. who had signed up with AirTel. Film-star Hrithik Roshan was rumored to have picked up Rs. 2 crores for the Fly With Hrithik campaign to push Close-Up.25 crores for an endorsement and the Indian cricket captain Saurav Ganguly is believed to get between Rs. 1. 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. The brand.0 crores. Aishwarya Rai apparently picks up Rs. young.13 Tabu endorsing Tetra Packed Milk. Celebrity-Product Match Cyrus Broacha is the brand ambassador for MTV since both the celebrity and the brand are considered as friendly. in most instances. 2.5 crores. Small firms that use celebrities’ services run greater risks if they invest large amounts. Rehman.5 crores per endorsement. Celebrity Regional Appeal Factors R. while film-star Aamir Khan apparently makes Rs. 1. takes a bashing. MTV’s brand personality overlaps Cyrus Broacha’s image as a brand. industry sources say Sachin Tendulkar’s price is believed to be between Rs. Costs of Acquiring the Celebrity Recently.75 crores. Amitabh Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishwarya Rai appearing in the Donate Eyes campaign are few examples. mood-boosting. and Shahrukh Khan’s rate seems to be between Rs. 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. etc. 90 lakh to Rs. 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 Govinda & Navratan Tel. and musician A. R. Shabana Azmi campaigning for AIDS Awareness. creating an impact that generates recall.0-2. Celebrity Popularity .5 crores per endorsement. which reflect the transfer of celebrity values to the brand. is believed to have picked up Rs. a newspaper report showed how cola firms had gone beyond their advertising budgets to get the best celebrities. humorous and outspoken. 1. Also. Although nobody is willing to say exactly how much celebrities get paid. 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. 1. Aishwarya Rai & Nakshatra.

. for Amitabh Bachchan. Agni Diamonds & Riama Sen don’t get much brand recall. most experts believed that the most important dimensions of credibility are trustworthiness and prowess or expertise with regard to the recommended product or service. Thus.14 Celebrity Brand association like Garnier endorsed Tara Sharma & Simone Singh. helping it to get back on track. Whether Celebrity is a Brand User Various celebrities endorse NGOs and social causes since they believe in the social message that they need to convey to the audience. and even if they do. there are situations in which they prefer to go without a brand face. consumers remember ICICI. Parker Pens. For example. since there is no brand-fit between the celebrities available and the brand. After the worm controversy. in case of Sachin Tendulkar people recall Pepsi. Celebrity Physical Attractiveness John Abraham endorsing Wrangler and Timex Sunglasses are some examples which portray the celebrities’ physical attractiveness that helps create an impact. brands refuse to adopt celebrity endorsement since they fear dilution of the brand image. The campaign has won an award for the same. Celebrity Credibility The most important aspect and reason for celebrity endorsement is credibility. Also. Multiple Endorsements 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. due to multiple endorsements by certain celebrities. Amitabh Bachchan’s credibility infused into the brand through the campaign. 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. They might get confused in the endorsement of Nerolac or Asian Paints. One of the most obvious reasons of Amitabh Bachchan endorsing plethora of brands is the credibility of the celebrity and his recognition across consumers.On the other hand. Pulse Polio and BPL. Pepsi. its difficult to attribute it to the celebrities’ endorsing the brand. but might not remember brands like Britannia and Fiat. Similarly. TVS Victor and MRF. HPCL has had increased popularity and share of voice due to the endorsement of the brand through Sania Mirza. it boils down to the strength of the brand and the advertising content. One of the most successful campaigns has been executed by PETA in which celebrities like Shilpa Shetty. Celebrity Availability In case of various brands. In a research carried out among 43 ad agencies and companies. for multiple endorsements where the same celebrity endorses several brands.

15 Amisha Patel. •Expertise: For example . CELEBRITY SELECTION There are various scientific ways in which the right celebrity is selected for the product endorsement. A celebrity scoring high on all the above attributes can turn out to be a good endorser for the brand under question.Golfer Tiger Woods for a sports brand. •Similarity: For example . •Attractiveness: For example . . and thereby endorse the brand.Tennis player Anna Kournikova who earns 10 Million dollars per year in just endorsement. which are discussed here after The TEARS Model The attributes highlighted by the acronym “TEARS” are gauged for celebrity selection.Legendary actor Amitabh Bachchan who is an icon of trust. •Respect: For example . promoting ICICI Bank. Sheetal Malhar. Yana Gupta.a child artist promoting a chocolate brand.Former Miss World Aishawarya Rai and the Eye donation campaign. Mahima Choudhary claimed to believe in PETA’s philosophy. These are: • Trustworthiness: For example .

it can create linkages with the celebrities’ appeal. thereby adding new dimension to the brand image. An endorsement saturation factor. A working ease and difficulty factor. A likelihood-of-getting-into-trouble factor • • • • Selecting the right celebrity does more than increasing sales. 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. It gauges the following information: • • • • Celebrity & audience match up. Cost consideration. . Celebrity credibility. Celebrity attractiveness.16 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.

Insurance Companies 3. which gives the popularity and image details of a personality in the market Product Positioning Matrix. e. we divided all companies and brands into twelve categories mentioned below: 1. Wafers 4. The model also helps in minimizing the cost with optimization of effect. White Goods 2. e. Creator / Innovator: Products or personalities famous for disruptive. exploratory research involving personal interviews and focused group discussion followed by primary data collection and analysis..g.17 RESEARCH & ANALYSIS The purpose is to provide the marketers with a quantitative method for selection of the right celebrities to optimize the outcome for their advertising campaigns. which is the direct consequence of the brands competitive strategy Area Correlation Matrix. architectural. Caregiver: Personalities or products which give the perceived benefit of security and care. Jester: Personalities or products positioned for fun and frivolous activities.g. Model Development For the purpose of our study.. Magician: Personalities or products which claim to produce results which are . which is the overall measure of match of brand and celebrity These two matrices are used to develop two variables:   Celebrity Effectiveness Index Total Area Correlation Score The two variables can be used to decide on the appropriate celebrity for the brand. e.g. which are:    Celebrity Positioning Matrix.. We have developed three matrices.The study is done in two stages. modular or incremental innovations.

.. Ruler: Personalities or products that show how to exert control. eg. Peter England 7. Outlaw: Personalities or products that encourage to break the rules. Beauty Soaps 8. Innocent: Personalities or products that retain and renew faith.. Feature establishing costs . It is the sum of average score of each archetype for a personality. Jeans 11. e. Jeeps 12. e. e. e. Newspaper 10.. Minimum Costs 2. Hero: Personalities or products that prompt courageously action..g.18 unexpected. Johnson & Johnson 9. Minimum Risks The details of the variable in the above-mentioned objectives are described below: Costs Associated: 1..g. Explorer: Personalities or products that claim self enhancement through exploration.g.g. e. Endorsement fees 2.g.g. Area Correlation Index of Brand and CEI: This we have defined as the weighted product of corresponding archetypes of brands and celebrities.g. Hair oils for enhancing growth 5. e. e.. 6. Red & White Bravery Awards. The objective of a client can be described as follows: To maximize area correlation of the brand-celebrity rectangle subjected to: 1. Ordinary Guy: Personalities or products that have slice of life execution format. The concepts developed can be used by celebrity clients for effective decision making. Tires Archetype matrix for brands and celebrities: Creator/Innovator Magician Lover Outlaw Variables Developed Celebrity Effectiveness Index (CEI): This is a parameter defined to evaluate the effectiveness of a personality to interact with customer and create desired impact. Lover: Personalities or products that claim tender care. Sage: Personalities or products for guidance and opinion. Caregiver Hero Innocent Explorer Jester Ordinary Guy Sage Ruler Hypothesis H1: A brand-celebrity area coefficient is positively related to audience brandcelebrity connection...g. e.

The sampling was convenience sampling and sample size of hundred for each celebrity. Feature enhancement costs 4. For this other endorsee. Mismatch risk 2. The most frequent reply was recorded. if existing. other endorsees. The selection was based on three distinct focused group discussions done with SEC A. Primary survey was conducted to list down the brand against the above-mentioned ten celebrities. . The brands were then subjected to archetype scoring. Celebrity feature mortality risk The steps involved in testing of hypothesis are as follows: Step 1: Calculate CEI for celebrities and companies Step 2: Calculate area correlation matrix for the same Step 3: Compare the success of the campaign with the area correlation matrix Methodology Calculation of Celebrity Effective Index Respondents were given a name of a celebrity and asked to rate the personality as against the archetypes defined earlier. the least frequent or non-existing celebrity was selected from the list of CEI calculation celebrities. From secondary data. Feature sustaining costs Risks Associated: 1. Celebrity feature transition risk 3. were recorded and the process was repeated. Celebrity Amitabh Bachchan Brand Polio Alternate Celebrity* Shah Rukh Khan * The celebrity that was recollected the least by respondents. The top ten most frequent celebrities recalled or recollected as brand ambassadors were chosen for the further studies. C Category of members with 10 members each. B. Ten celebrities were selected for the purpose. and area correlation was calculated.19 3.

Image and positioning Brand Positioning Index Polio Eradication Campaign: Creator/Innovator 1 Magician 1 Lover 6 Outlaw 1 Caregiver 10 Hero 1 Innocent 1 Explorer 1 Jester 1 Ordinary Guy 1 Sage 10 Ruler 1 Thus. Popularity 2. the calculation is analogous to CEI but is for companies or products. Alternate Celebrity CEI Calculation 1. Amitabh Bachchan : CEI = 55 Creator/Innovator 2 Magician 6 Lover 5 Outlaw 1 Caregiver 8 Hero 8 Innocent 3 Explorer 2 Jester 3 Ordinary Guy 1 Sage 8 Ruler 8 The CEI is quantitative measure of: 1. The outcome is the direct reflection of company's positioning strategy.20 RESULTS Celebrity Effectiveness Index (CEI) The ten celebrities and the survey results are as follows: 1. Shah Rukh Khan : CEI = 54 .

Brands generally will have lower CEI than Personalities due to deliberate attempts to have strong positioning to fight competition and develop competitive advantages. The following table shows the results of above mentioned ten brands: Brand Polio Success Celebrity 224 Failure Celebrity 162 We term the celebrity with maximum recall as successful celebrity and with minimum recall as failure celebrity. The cost of the campaign can be reduced by involving celebrities with high polarized archetype value which matches with the brand . If the right match is found between the brand and celebrity. we can say that area correlation matrix is a good predictor of success of a campaign. The popularity of the campaign is a function of area correlation matrix 3. Thus. popularity of the campaign can be optimized 4. The cost of an endorsement will be a positive correlated function of CEI 2.21 Creator/Innovator 3 Magician 3 Lover 9 Outlaw 1 Caregiver 4 Hero 8 Innocent 3 Explorer 6 Jester 6 Ordinary Guy 1 Sage 3 Ruler 7 Calculation of Area Correlation The corresponding cells of brand and celebrity are multiplied to calculate what we term as Brand-Celebrity Area Correlation. Moreover. the CEI is also a good predictor of popularity of the celebrity. Conclusions & Recommendations of survey The test of Hypothesis 1 shows that it is 100% accepted for the case presented. The following recommendations are made to brand managers and account managers: - 1.

He has been used very effectively by Parker Pens. ICICI Bank and Cadbury's to name a few. Sports and TV personalities took the second and third rank with 14 per cent and 5 per cent share respectively during 2007.V. . The AB factor worked wonders as far as generating curiosity was concerned but the actual product couldn't meet the expectations of people. Volume Growth in Celebrity endorsement on T. Celebrity endorsement on TV saw a whopping growth of six times during 2007 over 2003 'Shahrukh Khan' had maximum number of advertisers in his kitty during 2007. the endorsement strategy didn't work.22 FACTS AND FIGURES : Amitabh Bachhan (AB) was seen endorsing Maruti's Versa Car. Celebrities from Film Industry lead with 81 per cent share of overall Celebrity endorsement advertising pie on TV during 2007. Film Celebrities had the largest chunk i. and hence. • • • • • • • • 49 per cent growth in Celebrity endorsement advertising volumes on TV during 2007 compared to 2006.e. 81 per cent share of overall Celebrity endorsement on TV during 2007. 'Aerated Soft Drink' was the top category with maximum advertising volumes of Celebrity endorsement during 2007. Film Actors accounted for 50% share followed by Film Actress and Sportsmen with 31 per cent and 14 per cent share of Celebrity endorsement on TV during 2007.

23 Share of Celebrity Profession on TV during 2007. • During 2007 top three position of maximum visible celebrity on TV was occupied by Film Actors viz. Amitabh Bachchan. . Saif Ali khan. Top three Celebrities Visibility per day on Television through commercials in 2007. Shahrukh Khan. Share of Top 10 Categories with Celebrity endorsement advertising volumes.

Price vs. if not. Sachin Tendulkar. Fiat Sienna. Companies need to perform a cost-benefit analysis prior to endorsement. in 2002 endorsed 12 brands (including Pepsi. prior to product promotion. Boost. MRF. says that the endorsement of as many as four products negatively influences the celebrity spokesperson’s credibility and likeability. Also. for example. The companies expect to bring. Adidas. . lead to confusion among the consumers. Tripp et al. A company must analyze the prospect of endorsement from 360 degrees. then it narrows the companies’ profit. Celebrity endorsement is an expensive means of brand promotion and the price burden almost always shifts on to the consumers. Gillette. in the long run. The process of gauging the effectiveness of endorsement on the overall brand is but difficult. Profit The most important issue is that of return on investment (ROI). revenues and profit from the present investments on celebrity endorsement. Visa Cards and Home Trade). Multiple Brand Endorsement Endorsement vs. and thus. Fiat Palio. There is no single formula to win in the world of marketing. Colgate Total. we find either a celebrity endorsing multiple brands or multiple celebrities being used to endorse a single brand. future sales. Britannia Tiger. TVS Victor.24 RECOMMENDATIONS CELEBRITY INVOLVED ENDORSEMENT: THE ISSUES There are several factors to consider before resorting to celebrity endorsement. the use of multiple celebrities to endorse a brand may hinder the meaning transfer process. Multiple Celebrity In the advertising landscape.

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