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  • 1. Faculty of Master in Communication Corporate Sciences CommunicationMASTER THESIS, 2009BEYOND THEEFFECTIVENESS OFCELEBRITY ENDORSEMENT2009Supervisor: Dr. Patrick Cotting Author Cristel Garcia 04-984-704 cristel.garcia@lu.unisi.ch cristel_garcia@hotmail.com
  • 2. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 I. AKNOWLEDGEMENTSThis Master’s thesis is the accomplishment of my university “journey”. The theme of the thesis aroseduring this journey, while knowledge was sent from everywhere inside the university’s walls.Writing this thesis made me gain knowledge on a subject for me very interesting and important intoday’s society with consumer power.First of all, I would like to thank my supervisor Patrick Cotting for all support and expertise, and whohas given me valuable guidance.In addition, I would like to express my gratitude to the managers who gave me a little of their precioustime and who have been helpful in answering my questions with their remarkable knowledge: RobertoCosta, Head of Advertising & Internet at Swatch; Valérie Bastardoz, Head of Communication at BCV; andSandra Helfenstein, Deputy Head Administrative Unit Communication at SFU.I would like to say a special thanks to my parents and sister, Inês, who always gave me support duringthis period of my life.Finally, I would like to thank all the persons who gave me encouragement and helped me throughoutthis period of study: Davide, Sophie, Anne, Adrien, and of course Massimo.I have a last thought for all my colleagues, who have also accomplished their final work and who haveshared with me their doubts, despair, happiness, and finally pride of having ended the work. Good luckto everyone. 2
  • 3. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 II. EXECUTIVE SUMMARYThis Master’s thesis is a research about one popular marketing strategy: celebrityendorsement. Indeed, even though celebrity endorsement represents some risks, it isa largely used method to reach competitive advantage by companies. Today,companies spend millions each year for the endorsement of their products/servicesby celebrities. It is always a great challenge for marketers to determine the meaningconsumers associate with the brand in order to select the right celebrity and to buildthe right celebrity endorsement concept. Therefore, it was of a great interest toinvestigate this topic further in details.The initial idea of this thesis has been activated by the lack of information aboutcelebrity endorsement overall strategy. In fact, there are many factors influencing theeffectiveness of a celebrity endorsement strategy which are not taken intoconsideration well enough.This thesis analyzes existing literature and contains suggestions about thedevelopment of such a strategy taking into consideration all the elements susceptibleto have an influence on its effectiveness.The approach of this study is first qualitative with the examination of existing theoriesand methods about celebrity endorsement. After a literature review research on thecelebrity endorsement concept, findings have shown that there was too much focus onthe celebrity’s attributes selection and not enough focus on the other elements, suchas the company (product/brand), media environment, and customer behavior. Manyfactors are an integral part of the strategy as well as the celebrity’s attributes.Then, the aim of the second part is to consider the gaps in the existing theory and tocreate a model able to bring together each factor needed to reach the effectiveness ofcelebrity endorsement strategy. The core of the thesis is represented by a suggestedmodel of the overall celebrity endorsement strategy which should lead to the 3
  • 4. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009maximization of effectiveness. This model was thought as a solution for companieswilling to reach a successful campaign. The model involves all dimensions and successfactors needed to develop an effective strategy. It was designed with a strong focus onfilling the lack of elements to build an effective celebrity endorsement strategy. Theseelements were called the success factors of the strategy. The model was designed onthe basis of an existing sponsorship model, which was an excellent base due to itsmarketing roots.In order to check the feasibility of the suggested model, companies have beeninterviewed about their own celebrity endorsement strategy and about the model.The result of these interviews was positive and showed that companies must considerall success factors to reach a success campaign. Sometimes, some factors areunderestimated or forgotten, which enhance the importance of using a model as astep-by-step toolkit.Moreover, while analyzing the model, another use of the model appeared. Indeed, themodel can also be used as a measurement tool, which is essential for a company afterdoing such a campaign. To monitor celebrity endorsement success a set of measures isproposed.The aim of the thesis was to try to meet companies’ expectations and needs with amodel proposal which will solve some issues within the whole celebrity endorsementmanagement. 4
  • 5. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 III. TABLE OF CONTENTSI. AKNOWLEDGEMENTS .................................................................................................................... 2II. EXECUTIVE SUMMARY ................................................................................................................... 3III. TABLE OF CONTENTS...................................................................................................................... 5IV. THEORETICAL PART ........................................................................................................................ 7 1. INTRODUCTION ............................................................................................................................. 8 1.1 Problem Discussion.............................................................................................................. 8 1.2 Purpose and Research Questions ................................................................................... 9 RESEARCH QUESTIONS ................................................................................................................................................................ 9 HYPOTHESIS ...................................................................................................................................................................................10 1.3 Delimitations ....................................................................................................................... 10 2. DEFINING CELEBRITY ENDORSEMENT – LITERATURE REVIEW .......................... 10 2.1. Definition............................................................................................................................... 10 2.2. Origins .................................................................................................................................... 12 THE SPORTS INDUSTRY ............................................................................................................................................................13 THE BEAUTY INDUSTRY ...........................................................................................................................................................14 THE MERGER OF BRANDS AND CELEBRITIES ..............................................................................................................16 THE WATCHTOWER ...................................................................................................................................................................19 THE FAN POWER ..........................................................................................................................................................................20 THE VISIBILIY OF CELEBRITIES ...........................................................................................................................................20 THE CELEBRITY INDUSTRY ....................................................................................................................................................21 2.4 Existing Theories and Models ....................................................................................... 23 PROS AND CONS OF CELEBRITY ENDORSEMENT STRATEGY ..............................................................................23 (1)SOURCE CREDIBILITY MODEL ........................................................................................................................................26 (2)SOURCE ATTRACTIVENESS MODEL .............................................................................................................................27 (3)THE PRODUCT MATCH-UP HYPOTHESIS ..................................................................................................................28 (4)THE MEANING TRANSFER MODEL...............................................................................................................................30 2.5 Celebrity Selection ............................................................................................................. 31 COMMON CELEBRITIES’ ATTRIBUTES ..............................................................................................................................31 THE FRED PRINCIPLE ................................................................................................................................................................36 4F’s.......................................................................................................................................................................................................37 SOURCE ATTRIBUTES AND RECEIVER PROCESSING MODES................................................................................38 Q-RATINGS.......................................................................................................................................................................................39 SPORTS INDUSTRY ......................................................................................................................................................................41 2.6 Overview of models and theories ................................................................................ 43VI. PRACTICAL PART ....................................................................................................................... 46 5
  • 6. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 3. MODEL PROPOSAL ..................................................................................................................... 47 3.1 The Management Circle for C.E. Strategy.................................................................. 47 OVERALL STRATEGIES ..............................................................................................................................................................48 DEFINITION OF BRAND PERSONALITY ............................................................................................................................49 DEFINITION OF C.E. STRATEGY ............................................................................................................................................51 IMPLEMENTING & CONTROLLING C.E. STRATEGY.....................................................................................................52 3.2 The Drivers of C.E. Strategies ........................................................................................ 53 THE COMPANY AS A PRINCIPAL DRIVER OF C.E. STRATEGIES ............................................................................53 THE BRAND .....................................................................................................................................................................................54 THE CELEBRITY PERSPECTIVE.............................................................................................................................................54 THE PARTNERS’ PERSPECTIVE.............................................................................................................................................55 THE MEDIA PERSPECTIVE.......................................................................................................................................................55 THE PUBLIC PERSPECTIVE .....................................................................................................................................................55 3.3 The C.E. Effectiveness Model ......................................................................................... 56 4. QUESTIONNAIRE: Celebrity Endorsement Strategy CHECK ..................................... 62 5. COMPANIES’ INTERVIEWS ..................................................................................................... 64 5.1 SWATCH ................................................................................................................................ 64 SWATCH HISTORY .......................................................................................................................................................................64 PROMOTIONAL ACTIVITIES AT SWATCH ........................................................................................................................64 INTERVIEW WITH ROBERTO COSTA, HEAD OF ADVERTISING & INTERNET (23.07.09) .......................65 OBSERVATIONS ................................................................................................................................................................................67 5.2 BCV – Banque Cantonale Vaudoise ............................................................................. 67 BCV HISTORY ..................................................................................................................................................................................67 CELEBRITY ENDORSEMENT ACTIVITIES AT BCV .......................................................................................................68 BCV’S CELEBRITIES .....................................................................................................................................................................68 INTERVIEW WITH VALÉRIE BASTARDOZ, HEAD OF COMMUNICATION (05.08.09).................................69 OBSERVATIONS.............................................................................................................................................................................75 5.3 SWISS FARMERS’ UNION (SFU) ................................................................................... 75 HISTORY............................................................................................................................................................................................75 CELEBRITY ENDORSEMENT ACTIVITIES AT SFU ........................................................................................................76 SFU’S CELEBRITIES .....................................................................................................................................................................76 THE ACTIVITIES OF THE CAMPAIGN .................................................................................................................................78 INTERVIEW WITH SANDRA HELFENSTEIN, DEPUTY HEAD ADMINISTRATIVE UNIT COMMUNICATION ...........................................................................................................................................................................78 OBSERVATIONS.............................................................................................................................................................................80 6. MODEL ADJUSTMENT AND SUGGESTIONS ...................................................................... 81 7. GENERAL CONCLUSIONS......................................................................................................... 84VII. APPENDICES ................................................................................................................................. 87BIBLIOGRAPHY.......................................................................................................................................112 6
  • 7. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 IV. THEORETICAL PART 7
  • 8. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 20091. INTRODUCTIONJennifer Anniston, Tiger Wood, Roger Federer, Beyoncé: these names have becomesymbols of the role of endorsers in advertising.Companies invest millions of dollars to sign up with celebrities to endorse theirproducts. This is not a new phenomenon; it goes back to more than a century.However, today’s use of celebrities in advertising strategies is becoming more andmore sophisticated and complex. Because of its cost, usually celebrity endorsementstrategy is used by big firms. Nonetheless, smaller companies with limited budgets arestarting now to use celebrities to promote their products.However, companies should not select a celebrity before knowing if there is a need fora celebrity endorsement. Indeed, many brands get by quite well without usingpersonalities.In this paper, many factors used for the selection of celebrity endorsers have beenidentified through academic literature review, such as celebrity attractiveness,credibility, product-celebrity match, message and product type, target characteristics,and general meanings of celebrities. 1.1 Problem DiscussionFrom a marketing communication point of view, it is essential that companies plandifferential strategies to create competitive advantage. The use of celebrityendorsement is a widely used strategy to achieve this competitive advantage. Thistype of marketing strategy has become popular but it involves certain risks. Hence, toavoid the risk of a failure, companies should prepare in detail this kind of strategy.That means, they must think of each dimension, factor, and driver involved in theprocess of celebrity endorsement. This leads to the aim of this thesis where throughan exploratory research a deeper understanding of an effective usage of celebrityendorsement will emerge, as well as the development of suggestive ideas.In the literature review, findings are varied and incoherent regarding the way ofchoosing the right celebrity endorser. According to Byrne (Byrne, Whitehead, & Breen, 8
  • 9. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 20092003), choosing the right celebrity is the problem companies are facing. Companiesneed help in determining a model which will give them the way to reach effectivenessof celebrity endorser. A further research is needed to help them selecting celebrityendorsers taking into account every dimensions, factors, and drivers. Indeed, most ofthe authors analyzed the celebrity’s attributes to be a good endorser, but is it enoughto build a good strategy? The product is sometimes forgotten and too much focus is onthe celebrity, while the focus should be on the product. The product and the celebrityneed to match together, but there is either an environment around them and also anaudience. There are too many components that must be taken in consideration duringa celebrity endorsement process. 1.2 Purpose and Research QuestionsMany of the previous research on celebrity endorsement have explored celebrities’attributes, and celebrity endorser’s influence on consumer behavior. What is reallymissing in these studies is a global strategy of celebrity endorsement that would givean entire overview of the process to companies willing to go on with celebrities asspokespersons for their brand, product/service. The lack of research in this area gaveme the motivation for the present thesis. The purpose of this study is stated asfollows:To gain a deeper understanding of the overall celebrity endorsement strategy in order todevelop an effective step-by-step model for companies willing to adapt this kind ofstrategy.RESEARCH QUESTIONS I. What is the complete list of factors involved in the celebrity endorsement process which leads to an effective strategy? II. Who are the drivers involved in the celebrity endorsement process who influence the strategy? 9
  • 10. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009HYPOTHESIS I. Celebrity attributes are not the only success factors to reach the effectiveness of celebrity endorsement. II. Each factor must fit together in order to achieve the effectiveness. III. Each factor and driver should be controlled as much as possible to an effective strategy. 1.3 DelimitationsThis research involves many aspects of celebrity endorsement. Therefore, there willbe restrictions because of time, and resources. Further, the model proposal will not betested by a company, but only assessed by few companies since the time for this studyis limited.2. DEFINING CELEBRITY ENDORSEMENT – LITERATURE REVIEWIn this section, relevant theories and models to the research questions will bepresented. 2.1. Definition [The most effective way to use a celebrity is that you want people to relate to the product through that celebrity.] (Levine, 2003)The last 100 years, endorsement strategies provided many memorable moments. A lotof people remember Michael Jordan endorsing the Nike shoe, as well as Tiger Woodswith the Nike golf equipment. Then, Michael Jackson endorsed Pepsi singing anddancing, and Claudia Schiffer with her blond hair endorsed Elvive for L’Oréal. Today,Nespresso had a huge success with the “What else?” sentence said by GeorgesClooney. So, what is all about endorsement strategy? 10
  • 11. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009A company using endorsement is promoting the company’s product by the means ofthe personal recommendations of a celebrity, a person who is sufficiently well knownto influence the potential consumers of that product or brand. In other words, acelebrity is in a way sponsoring the company’s product, and he/she is paid for doingso (Bagehot, 1998). The concept is simple. A celebrity is chosen to express approval ofa product or service. Then an agreement between the celebrity and the company,which represents the product being endorsed, is signed (Pemberton, 1997). Theimportance of this strategy is not only the increase revenue of the company, but inhow the celebrities add value to a company, brand or product (Amos, Holmes, &Strutton, 2008).It is important to differentiate endorsement and licensing. Indeed, endorsement isvery similar to licensing except that the name of the endorser is used to promote aproduct or brand, while the endorser’s name in licensing is on the product (Lipsey,2006). Endorsement means the “stamp of approval” of a celebrity to a product, serviceor brand (Pemberton, 1997). When David Beckham1 accepted to endorse GiorgioArmani underwear, he accepted to give his “stamp of approval” for the product andbrand. It is estimated that he received 25-28 millions dollars for a three year contract(Carlo, 2008). He will be Giorgio Armani’s “face” for a while. So, the “stamp ofapproval” should be a real one to transmit credibility and create messagepersuasiveness.Today, celebrities cannot pursue themselves endorsement deals and contractsbecause of the visibility industry’s growing. Indeed, celebrities need the help ofexperts to take care of their image. There are different ways of using celebrities toendorse products. There is the tools-of-the-trade endorsements when celebritiesendorse products used in the course of their work, for example Anna Kournikova whoendorsed Adidas. Then, there are the non-tool endorsements when celebritiesendorse products that are not related with their work, for example Anna Kournikovawho endorsed Omega watches (Rein I. , Kotler, Hamlin, & Stoller, 2006).1 Appendix 2 11
  • 12. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009According to these definitions, celebrity endorsement is a well-liked strategy used bycompanies in order to add more value to their brand/product by associating them to acelebrity. This association will give to consumers a way of choosing a product byrelating it to someone they know. 2.2. OriginsThe first celebrity who endorsed a product was a famous English actress, LillieLangtry, with the Pears Soap in 1893 (Exhibit 1). She was also the first one thataffected negatively the desired brand image of a company because of her reputationfor being promiscuous (Louie, Kulik, & Jacobson, 2001). Exhibit 1 Lillie Langtry endorsing Pears’ Soap www.lillielangtry.comFrom Lillie’s endorsement till today, the use of celebrity spokespeople has been on therise. In 1975, a study reported that 15% of prime time television commercialsfeatured celebrities and by 1978 the number was reported to be over 20% (Kamins,Brand, Hoeke, & Moe, 1989). Today, during a Super Bowl you will watch 32%advertising with celebrities (Carlo, 2008). The celebrities’ business is alwaysincreasing. 12
  • 13. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009THE SPORTS INDUSTRYAs everyone can observe, the sporting goods industry often uses the celebrityendorsement strategies. Indeed, athletes are used to market a wide range of products,services and brands. Especially, shoe companies are well-known for those kinds ofstrategies. In 1997, “Sports Services of America” did a survey which results show thatsports celebrities’ endorsers have increased the value of products by more than 25%over the products of competitors that do not use endorsement strategies (Pemberton,1997). Many outside reasons have influenced the athletes’ potential of doingendorsement during the last 30 years. One reason is the media’s desire to write aboutan athlete’s personal behavior, like the actors and singers. Today, athletes, actors andsingers’ life is scrutinized from every angle. Therefore, it is much difficult to choose anendorser. In the past, athletes’ bad habits were not known and it made no distort tothe companies they were working with.Many well-known athletes made the history of celebrity endorsement. Babe Ruth,member team of the New York Yankees, was the first celebrity in sports who did amedia endorsement. The deal was made in 1919 and the sportsman was paid fivedollars to describe each homerun he hit in a written exclusive to United PressInternational (Schaaf, 2004).From 1936 to 1957, the business of sports evolved in an impressive way. Indeed,during these 20 years, the financial and social architecture of the sports industrychanged a lot. The mass media evolved too embracing the sports industry, which didthe same in return. Then in the late 1940s, television increased the move ofsponsorship and with it celebrity endorsement. Today, with the immense evolution oftechnologies, the sports industry truly profits from the multiple print, radio, TV, andinternet newspeople that cover all the sports events in multiple languages and formultiple outlets. Consumers have many sources of receiving content: newsprint, radio,TV, computer, cellphone, and pager. All these technological improvements made lifeeasier for companies who want to market their products. Celebrity endorsementstrategies can be sent through all these means. Other names that made the history of 13
  • 14. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009celebrity endorsement are Michael Jordan, Tiger Wood, Joe Louis2, and WayneGretzky. They were more than just sportsmen. They were mega-stars andbusinessmen. Through the years, convergence of innovation and consumer marketinghas built a multibillion-dollar sports industry that will continue to expand all over theworld year after year (Schaaf, 2004). The sportsmen understood how the sportsindustry is working and they are all becoming sports-businessmen, such as DavidBeckham3. They also understood that it is more than a simple endorsement. Celebrityendorsement strategies also measure an athlete’s popularity away from the action.THE BEAUTY INDUSTRYThe beauty industry begins in the mid-nineteenth century where we can traceadvertising aimed at women. The development of this industry came from themarketing of beauty products. However, this industry truly grew in the 1920s and1930s. Then, after the Second World War, the beauty industry evolved and becamethe beauty industry we all know today (Black, 2004).The interest of women for beauty products was related to their new sense of identityas consumers. The magazines played an important role in inducing women into theworld of brand-name products and smart shopping (Black, 2004).The Pears Soap, as previously said, was the first product endorsed by a celebrity whowas a famous actress. Many others followed, such as Marilyn Monroe4 with twofamous endorsements for Westmore Hollywood Cosmetics. Stars are used by manypeople as role models, even more in the area of personal appearance (Pringle, 2004).A new standard of beauty appeared in Hollywood in the 1930s. Indeed, the starsindustry created a kind of gold standard of beauty around the Hollywood stars.Cinema able to diffused a standardization of taste. In 1950s, Hollywood creates morethan a standardization of beauty; it produced a golden age of glamour whereHollywood stars were seen as deities with an unapproachable beauty (Cashmore,2006).Today, almost every hair care or cosmetics company has a celebrity “face” torepresent its products. Hair products and cosmetics usage by women is still growing.2 Appendix 13 Appendix 24 Appendix 3 14
  • 15. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The role of celebrities in the beauty industry is fundamental. Celebrities create trendsthat had always been followed. It is already 200 years that celebrities are endorsinghair care products. Recently, Jennifer Aniston, actress, was rated as one of the mostpowerful stars for the hair care industry (Pringle, 2004).Nowadays, the beauty industry knows that celebrities sell cosmetics. Many examplescan prove that in this industry the best seller are the celebrities. There are manyfamous celebrities in this industry. Some examples: Catherine Zeta-Jones withElizabeth Arden; Beyoncé Knowles with L’Oréal; Madonna with Max Factor; Kate Mosswith Rimmel; Pierce Brosnan with L’Oréal.The advertising of the beauty industry has long time being criticized because it isaccused to create idealized stereotypes that in some way forces women to follow.However, this industry will not change for some time. Celebrities will keep on beingthe models of many women, and men for beauty concerns. 2.3 Celebrity CultureError! Reference source not found.[A celebrity is a person whose name has attention-getting, interest-drawing, and profit-generating value.] (Rein, Kotler, & Stoller, 1997)Celebrity culture is all around us and sometimes even invades us by shaping our lives,conduct, style and manner. It affects many fans, but also entire populations with theshift from plain consumer to aspirational consumer. Celebrities made a real change inthe media and in the consumer society.Celebrities emerged from the sports and entertainment industries. They get attentionof people by being visible in the media. Usually, celebrities are first noticed throughtheir professional lives, but then people get attracted by their private lives as well.During the 1980’s and 1990’s, celebrity culture was a real part of the social life. Thiscelebrity culture was supported by the global media that promoted celebrities usuallyfrom entertainment and sports industries (Cashmore, 2006). According to Len 15
  • 16. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Sherman (1992), once a time, people admired heroes such as statesmen, scientists,explorers and military figures because of their heroic accomplishments. These heroestoday have been exchanged by many celebrities that became examples for the societyeven without accomplishing heroic actions. They are simply figures who embodiedpublic’s convictions and hopes and therefore they are being admired as heroes of thesociety to be respected. Sherman means that today an athlete who wins a footballgame seems to have conquered the Everest. The attraction of the public is notnecessary related to the celebrity’s talent, since there is no required relationship tohis/her celebrity status. Much of the time, a celebrity does not have talent but onlypresence.[We have forsaken our traditional heroes and replaced them with actors andathletes…where once admired people who do great things, now we admire people whoplay people who do great things.] (Sherman, 1992)Literature review shows that celebrity has different meanings. A first consideration isthat celebrity is a cultural change towards a culture that privileges the visual andsensational. A second one is that a celebrity is someone that has an innate quality thatis discovered by industries of sports or entertainment. A third consideration is the factthat a celebrity evolved through the process of commodification and became a“product” that makes promotion, publicity and advertising (Turner, 2004). Indeed, assoon as someone grows up in the scales of public visibility he/she can start to sell. Bybeing a “product”, celebrities can be bought and sold in a marketplace. Celebritiesbecame a kind of raw material that need to be refined, developed, and packed beforebeing marketable. The commodification process which makes people tradeable andready for the consumption is a key process in the celebrity culture (Cashmore, 2006).THE MERGER OF BRANDS AND CELEBRITIESButterfield developed a model (Exhibit 2) that shows how celebrities work well forthe brands’ promotion. One fundamental thing about working with celebrities for thebrands’ promotion is that since they are famous, they will be more likely “invited in”by customers (Pringle, 2004). This is one consideration that Butterfield pointed out inorder to better understand the subscription decision process. Butterfield’s model is 16
  • 17. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009the result of many works done on countries, issued causes, and charities. He claimedthat there are two key factors for the identification process, awareness and familiarity,which can somehow stand for the term “subscription”. However, for the creation of areal relationship, Butterfield considered that the factor visualization must beintegrated in between. Exhibit 2 The subscription decision process (Pringle, 2004)Explanation of the model: Stars have high (1) public awareness as well as high (2)visibility which give people a sense of (3) familiarity. If the fit between the celebrityand the brand is well created, then it will give a meaningful (4) resonance and apositive (5) disposition. These steps lead to (6) subscription which is the last step tobuild a good relationship (Pringle, 2004).In a world, where transnational companies, such as AOL Time Warner, NewsCorporation, Sony, and Disney, build their power by diversifying one media formacross many media platforms, celebrities became the bond to connect all these crossmedia processes. Celebrities allow the transfer from one format to another through abranding mechanism. This mechanism is part of the celebrity routine which is made ofcross-promotions (Turner, 2004). For example, a movie star will promote the newmovie by going in different talk shows and at the same time the movie star willpromote a new hairspray because of the spontaneous interest of the audience related 17
  • 18. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009to the launch of the new movie. Everything is correlated and that is the reason why itis called a cross-promotion.[The cast of characters that make up today’s generation of celebrities couldn’t be moresaleable if they had barcodes]. (Cashmore, 2006)Celebrities make money and it is a fact. They market everything with their names andimages because they simply attract audiences. Therefore, celebrity endorsements areused by marketers to brand their products, as well as television programs usecelebrity appearances to build their audiences. They all make a kind of mergerbetween the product to be promoted and the celebrity who will promote it. As inevery merger, the two partners need to be compatible to make it work. The celebrityis a commodity, as explained in last section, that will “marry” another commodity andas in every relation an understanding of both parts is crucial.The celebrities are well conscious of their power and therefore they develop theirpublic personality as a valuable asset that is defined from all the personal and careerchoices. They became real “commodities” and even if they do not like this word, theywork on strategies to increase the value of this commodity to the industry.There are various ways celebrities can work for a brand. HPI, a leading UK researchcompany, developed a model (Exhibit 3) where we find all the different modes acelebrity can be exposed for a brand. Exhibit 3 Five ways a celebrity can work for a brand (Pringle, 2004) 18
  • 19. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 According to HPI, these terms can clearly be connected or even overlapped in acelebrity endorsement strategy (Pringle, 2004): Testimonial: the celebrity is a spokesperson or a mouthpiece for the brand. Imported: the celebrity plays a role that the audience already knows from TV or movie appearances. Observer: the celebrity plays the role of commenting about the brand. Invented: the celebrity performs a part invented only for the brand. Harnessed: the celebrity is tied to the storyline of the brand advertising; the character of the celebrity can evolve through it.The UK company stated that with the testimonial and imported mode the strategy isless effective because of the imposed perception, while with observer, harnessed, andinvented mode, the customers perceive more integration between celebrity andbrand.THE WATCHTOWERNowadays, the public is no more passive. The public is asking more from celebrities,something different. The public is standing in a “watchtower” and “celebrities mustsurrender themselves to life” as they are standing in a gold prison (Cashmore, 2006).The fans want to watch and inspect whenever they want. If celebrities do notsurrender, the public might lose interest and go on with other more interestingcelebrities. As soon as the public is no longer interested, he can send it to oblivion andleave it there. Being active, the consumers can promote a celebrity career or destroy itby simply discarding him/her as a real commodity. The public knows it and this is itstrue power. Today, consumers have more power collectively on celebrities than everand they like it because they know that they are not just observers anymore but alsoplayers. Consumers are players and creators of celebrities with their desire for newcelebrities’ figures. This also explains the new trend in consumer behavior. In the past,consumers needed to own goods, but often could not afford everything. Now,consumers want to emulate celebrities’ lives. Even if it is hard to reach the same levelof life, they try to do as much as they can by reaching the nearest thing. 19
  • 20. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009THE FAN POWERCashmore described the word “fan” as a “description of followers, devotees, oradmirers of virtually anybody or anything in popular culture” (Cashmore, 2006). Hedefined different types of fans. The first category, the low worship fans, involvespeople who just read about celebrities. The second category of fans is theentertainment-social character, which concern the one who follow kindly thecelebrities. The third, regards those who are really interested in knowing thecelebrities’ lives, called the intense-personal feelings. Finally, there are the extremeworshippers who are really obsessed by the celebrities (Cashmore, 2006). This closeinvolvement with celebrities’ lives is called by Neil Alperstein (Alperstein, 1991) the“artificial involvement”. He said, in his study, that this involvement helps people in acertain way making sense of their reality by integrating celebrities in daily life. InBenson Fraser and William Brown’s study with Elvis’ fans, they explained the fans’attitude with three possibilities (Fraser & Brown, 2002). The first is that “ordinarypeople develop extraordinary psychological relationships with celebrities, whetherliving or dead. The second possibility is the fact that people consider celebrities as rolemodels to follow. The last one is that “fans adopt what they see as a celebrity’sattributes, including his or her values and behavior”.[Consumer product companies are always looking for that next certifiable star, becausethe impact that individual has in his public sphere of influence. The recognition andloyalty of his fans means sales in terms of cereal, video games, chewing gum, shoes,hardware, and just about anything.] (Schaaf, 1995)The fan has a real power towards the celebrities. Indeed, he/she can change their livesin a positive and negative way. The fan can highlight the celebrity, but can also pressthe “delete key” of the computer and make celebrities disappear from the stage. It is atrue influence on a life of someone. It is a terrific power. It is the “fan power”.THE VISIBILIY OF CELEBRITIESIn 1999, Forbes magazine introduced “Celebrity Power 100” with the ranking of thecelebrities based on stars’ brand franchise, and not based on the fortune. This shows 20
  • 21. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009how celebrities’ visibility is important. There are different dimensions in the visibilityhierarchy which are space and time.Space can be illustrated with a pyramid made of five levels: (1) Invisibles; (2) LocalVisibility; (3) Regional Visibility; (4) National Visibility; (5) International Visibility(Rein I. , Kotler, Hamlin, & Stoller, 2006).Time is the enemy of many celebrities. Indeed, there are few celebrities that become alegend and many that are often one-day or one-year well-known people.THE CELEBRITY INDUSTRYAccording to Rein et al. (1997), there are many sub-industries that support thecelebrity industry. Coordination between these sub-industries is needed in order toproduce and promote brands. Moreover, the celebrity industry (Exhibit 4) is alsodefined to coordinate the services that the sub-industries provide in order to produceand promote the celebrity. Therefore, it works in both sides, the entertainment andthe communications industry (Rein, Kotler, & Stoller, 1997/2006).The first industry – entertainment industry – consists of theatres, music halls, dancehalls, sports arenas, museums, county fairs, sport games and movie studios. Thisindustry was born mostly in Hollywood. The second industry – communicationsindustry – is the media channels, through which we know the visible people. Manyimages, products and stories about these visible people are sold through the mediachannels, such as television, radio, film, cable, magazines, newspapers and internet.The promotion of these two industries – entertainment and communicationsindustries – is made with the third industry which is the publicity industry. Itencompasses publicists, PR firms and advertising agencies which constitutes thelargest form of promoting, and marketing research firms. Then follow therepresentation industry composed by agents, personal managers, and promoters,which handle the celebrities by negotiating engagements for them in exchange of a feeor commission. Some agents, few of them, do not only sell their clients as they are.They try to offer a “total service” to their clients giving them all the support they needto improve themselves day by day. Unfortunately, there are few agents acting like that.That is the reason why the appearance and the coaching industries exist – to givepersonal consultancy. The appearance industry is one of the fastest-growing 21
  • 22. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009components because of the high degree of importance of the celebrity image. Thisindustry includes makeup specialists, hairstylists, clothing stylists, color consultants,image coordinators, dermatologists, nutritionists and plastic surgeons. This is a realcompetitive environment that is growing every day. The coaching industry is relatedto the professional performance of the celebrities. It helps celebrities improvingdifferent skills, such as dance, music, speech, that aspire to be highly visible. Then, thelegal and business services industry gives different kinds of legal, accounting andinvestment advice. Finally, the endorsement and licensing industry is a growingindustry since marketers understood that it is a powerful mean to distinguish aproduct or service from the competitors (Rein I. , Kotler, Hamlin, & Stoller, 2006).The celebrity industry earlier than today was not as transparent since the industry didnot want to show all the activities behind the trade. Nowadays, the industry is well-known and transparent. Closing the eyes to this industry is impossible because it isanchored to the fabric of our economy and culture. Exhibit 4 Structure of the Celebrity Industry (Rein, Kotler, & Stoller, 1997)To make the system work it is necessary to know the existence of all these industriesthat have a crucial role in the development of the celebrity industry. There are many 22
  • 23. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009key figures too within these industries that must be taken into account – agents,managers, and publicists. Of course, there are many variations depending from marketto market. The economic interdependencies between these figures and the celebritiesform a bind that makes the key to the structure of the celebrity industry.The power of the celebrity industry is limited due to many conflicts of interests whichcreate gaps in its understanding of the context. For example, we know that the systemdoes not work perfectly for the publicity industries’ interests because of manyscurrilous revelations of many celebrities (Turner, 2004). 2.4 Existing Theories and ModelsPROS AND CONS OF CELEBRITY ENDORSEMENT STRATEGYDuring the last years, celebrity endorsement became a well-known communicationstrategy with the aim to build a congruent image between the brand and theconsumer. This is a real challenge for marketers who have to find the right endorserwho will fit with the brand of the company. The challenge is to determine the meaningconsumers associate with the brand. Therefore, before starting a celebrityendorsement strategy, the company must be sure to have chosen the rightcommunication strategy in order to reach consumers’ expectations. Marketers mustexamine thoroughly the fit between the celebrity and the product before launchingany campaign. Before taking any decisions, the company should check all the pros andcons of having a celebrity endorsing its product.Even if there are significant potential benefits in using a celebrity endorsementstrategy, companies should know that there are also significant costs and risks.According to Erdogan (1999), there are as many potential advantages in a celebrityendorsement as potential hazards (Exhibit 5). 23
  • 24. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Exhibit 5 Pros and Cons of Celebrity Endorsement Strategy POTENTIAL ADVANTAGES POTENTIAL HAZARDS Increased attention Overshadow the brand Image polishing Public controversy Image change and Brand introduction overexposure Image change and loss of Brand repositioning public recognition Underpin global campaigns Expensive (Erdogan, 1999)According to Erdogan (1999), the advantages are significant and companies trust thatsuch a strategy will generate desirable campaign outcomes. Today, consumers easilycan choose what advertise commercials they would like to see by zapping or watchingTV programs without commercials. Therefore it has become more challenging forcompanies to get consumers’ attention and penetrate the clutter of brief andnumerous advertising spots. The competition is hard, so a great strategy is needed tostand out from the rest. Celebrities help in doing so and improve the communicativeability by cutting through excess noise in a communication process (Miciak &Shanklin, 1994).With celebrity endorsement, an authentic positioning of the brand/product can easilybe done. Moreover, the exclusivity of the celebrity is an essential key, as well as thegain of credibility amongst consumers and also retailers (Cotting, 2007-2008).The image polishing can also be done through a celebrity endorsement strategy whena company is going in the wrong direction. Indeed, when a company’ image issuffering, using celebrity’s image will transfer his/her own image to the band orproduct. A good way of introducing a new brand/product is to design it around thepersonality of a celebrity. It will give direct appeal and the image of the celebrity willinstantly be pushed over to the product. 24
  • 25. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009One important advantage of this strategy is the creation of an emotional attachmentwith the target group (Cotting, 2007-2008).Although celebrity endorsement strategy has significant returns, sometimescelebrities’ qualities become undesirable and therefore it is always a major challengeto select and retain the right celebrity avoiding potential pitfalls. To prevent thepotential hazards, Erdogan states that pre-testing and planning carefully the strategyare crucial for the success of the campaign. This will avoid the overshadowing of thebrand by the celebrity. Indeed, many times a celebrity endorsement strategy focusestoo much on celebrity and forgets to focus on product. By consequence, the product isforgotten by the consumers because the attention is too much paid over the celebrity.[When a brand – either new or established – associates itself with an already establishedpersonality, it can enhance its own brand identity or be swallowed up by the largeridentity it has annexed.]. (Levine, 2003)Another well-known tactic is to buy a death and disgrace insurance for the contractand to cautiously put provision clauses in the contract so that in any case of injury thecompany will be a minimum insured. It is either essential to mention in the contractwhat is the exact role of the celebrity and should be a great idea to put restrictionclause to avoid too many endorsements with other brands. Indeed, the overexposureis only an advantage for the celebrity but not for the company. The consumer might beconfused with too many brands endorsed by the same celebrity. The selection of thecelebrity is critical and it is fundamental to examine at what life-cycle stage thecelebrity is and how long this stage will last. The image of a celebrity changes duringhis/her life but a brand should not be exposed by this change. In fact, if any kind ofimage change might happened during the campaign then it can bring a loss of publicrecognition. According to Erdogan, celebrity endorsement is also a powerful tool toenter foreign markets. Indeed, the international visibility of many celebrities can beused as a tool to enter new markets, using the same campaign for different countries. 25
  • 26. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Celebrity endorsers can also be compared with created characters endorsers. Insteadof using celebrity endorsers, many companies choose to create a character who willendorse its products. This strategy is able to build a character that is congruent ahundred percent with their brands and target audiences. While there is an absolutecontrol over this kind of strategy, celebrity endorsement has limited control with thecelebrity’s persona. Some studies prove that with created characters the link betweenthe character and the product is more effective. Following this reasoning andaccording to the Classical Conditioning Paradigm5, consumers have a strongerassociation with created characters than with celebrity endorsers. The reason is thatcelebrity endorsers are linked to many other things whereas the created charactersare linked only to the product.As already mentioned, the choice of a celebrity endorsement is an important task.Therefore, considerable studies have been conducted in order to create models forendorsement strategy. There are four significant models created between 1953 and1989. The initial model was the Source Credibility Model constructed by Carl I.Hovland and his associates. Then three other models follow it: the SourceAttractiveness Model (McGuire, 1985); the Product Match-Up Hypothesis (Forkan,1980; Kamins 1989, 1990); and the Meaning Transfer Model (McCracken, 1989).(1)SOURCE CREDIBILITY MODELThe source credibility model is the first of the celebrity endorsement strategy models.The model affirms that the effectiveness of the endorser’s message depends on hisperceived level of expertise and trustworthiness (Hovland, Irving, Kelley, & Harold,1953). Trustworthiness and expertise start a process called internalization in whichthe promotional message has influence on the consumers’ beliefs, opinions, attitudes,and behavior since information comes from a credible source (celebrity) (Erdogan,Baker, & Tagg, 2001). As a consequence, a celebrity endorser who possesses high levelof trustworthiness and expertise will be more likely to change the consumer’s attitude5 The Classical Conditioning Paradigm in Marketing Communications Context claims that consumers do associations between anunconditional stimulus (endorser) and a conditional stimulus (product) through repeated exposure (Erdogan, 1999). 26
  • 27. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009(Ohanian, 1990). Hence, the more credible a source is, the more it will be persuasive.Even though source credibility is an essential factor in defining a celebrity endorserbecause of its direct effect on consumers’ behavior, it is not the only factor to considerwhile choosing a celebrity endorser.It seems that a source’s credibility cannot be measured because of its subjectivity, butthere is a high degree of agreement among individuals called “truth-of-consensusmethod”. This method is used to measure and assess a source’s credibility andattractiveness. The method is based on Gestalt principles which state that individual’sjudgments of credibility and attractiveness come from person perception instead ofsingle characteristics (Erdogan B. Z., 1999). For the source credibility measurement,Ohanian (1990) created a Source Credibility Scale (Exhibit 6) after doing extensiveresearch and statistical tests. He bounded many characteristics to the credibilityattribute, but McCraken (1989) argued that to measure celebrity endorsementeffectiveness many other attributes should be taken into account becauseattractiveness and expertise were not enough. Exhibit 6 Source Credibility Scale ATTRACTIVENESS TRUSTWORTHINESS EXPERTISE Attractive- Trustworthy- Expert-Not Expert Unattractive Untrustworthy Classy-Not Classy Dependable- Knowledgeable- Undependable Unknowledgeable Elegant-Plain Reliable-Unreliable Qualified- Unqualified Sexy-Not sexy Sincere-Insincere Skilled-Unskilled Beautiful-Ugly Honest-Dishonest Experienced- Inexperienced (Ohanian, 1990)(2)SOURCE ATTRACTIVENESS MODELThe model affirms that the effectiveness of the endorser’s message depends onhis/her similarity, familiarity, and liking (McGuire, 1968). Therefore, this means that 27
  • 28. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009the endorser should have a resemblance with the receiver of the message (similarity),as well as physical appearance and behavior that affect the receiver (likeability).Moreover, the endorser should be well-known by the receiver through differentexposure (familiarity). The attractiveness of the endorser is usually determined by theprocess called identification. This process works in the application to advertisingbecause consumers accept information given by an attractive endorser and as a resultthey want to emulate him/her by having in this case a purchase intention (Kelman,1961). Indeed, attractiveness can be observed in most advertisements which exposeattractive people. People are used to these kinds of attractive people that are beingstereotyped. Usually, the source attractiveness model works better when people havechanging beliefs (Baker & Churchill, 1977). Confusion can be done when talking aboutattractiveness, since many times it means only physical attractiveness in theadvertisements. However, attractiveness signifies either other characteristics that thereceiver might perceive in a celebrity endorser, such as intellectual skills, personality,etc.Many studies have shown that there are no doubts that celebrities’ attractivenessboosts attitudes towards advertising and brands. Nonetheless, some studies show thatthere are no purchase intentions with this kind of strategy, while other studies showexactly the opposite. There is ambiguity about the results and the fact that celebrities’attractiveness alone can initiate behavioral intent (Erdogan, 1999). Indeed, Baker andChurchill’ studies (1977) showed in an experiment for a coffee campaign that anunattractive model leaded to behavioral intent of purchasing, while an attractivemodel did not create such intentions towards male subjects. Patzer (1985) claimedthat “physical attractiveness is an informational cue; involves effects that are subtle,pervasive, and inescapable: produces a definite pattern of verifiable differences; andtranscends culture in its effects.”(3)THE PRODUCT MATCH-UP HYPOTHESISThe product match-up hypothesis sustains that harmony of the match between thecelebrity endorser and the product being endorsed is a key determinant for theeffectiveness of the strategy (Amos, Holmes, & Strutton, 2008). Forkan (1980) andKamins (1990) state that the messages sent by the source (endorser) and the message 28
  • 29. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009of the product should be congruent to reach an effective advertising. Advertising withhigh congruity between the celebrity image and the product message has morecredibility than advertising with low congruence. Indeed, the advertising effectivenesswill be measured by the degree perceived of the fit between brand and celebrityimage. Friedman and Friedman also confirmed the hypothesis that the celebrity andproduct fit lead to a higher effectiveness of the strategy. In reality, consumers are alsoexpected to find a certain level of congruence between the endorser’s image and theproduct he/she endorses. So, from both sides, practitioners, and consumers, there is ahigh expectation in the match between celebrities and brands. From the consumerpoint of view, if match is missing, the consumer will only think that the celebrity hasbeen bought to endorse the product and that he/she does not believe in what he/sheis saying. From the practitioners’ point of view, if the product does not match thecelebrity’s image, then the “vampire effect” might occur. It means that consumersremember the celebrity, but not the product (Evans, 1988). According to Evans(1988), “celebrities suck the life-blood of the product dry” when there is no existenceof a product/celebrity fit. Kamins (1990) also suggested a specificity of the match-uphypothesis about attractiveness. In fact, he proposed that celebrity endorsementstrategy is more effective when attractive celebrities endorse products that enhanceone’s attractiveness. This is the reason why many personal care products areendorsed by attractive celebrities.However, according to Till and Busler (2000), the effectiveness can be measured interms of brand attitude, but not in terms of purchase intention. The match-uphypothesis has some limitations because of the inability of identifying and measuringwhich dimensions are applicable for a particular product. The match-up hypothesishas to be extended to the match of the entire image of the celebrity with the entireimage of the brand and target audience (Erdogan B. Z., 1999).[It’s got to be a good match. You can’t just pull a celebrity out of the air. The mostimportant thing is matching the celebrity’s image and the way the public relates tothem. You have to tap into that to be effective]. Noreen S. Jenney, President of CelebrityEndorsement Network, (Levine, 2003) 29
  • 30. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009(4)THE MEANING TRANSFER MODELMcCraken (1989) stated that the effectiveness of celebrity endorsement strategyrelies on the meaning that the celebrity conveys through the endorsement process.Celebrities can transfer different meanings to the products and there are undeniably ahuge number of meanings contained in a celebrity, such as status, gender, age,lifestyle, and personality (Erdogan B. Z., 1999). Therefore, it represents for marketersa large choice at their disposal for their strategies.This model gives a “conventional path for the movement of cultural meaning inconsumer societies” (Erdogan, Baker, & Tagg, 2001). The process (Exhibit 7)constitutes three stages: the formation of celebrity image, the transfer of meaningfrom celebrity to product, the transfer of meaning from product to consumers(McCraken, 1989).In the first stage, McCraken (1989) contended that meanings come from a culturallyconstituted world, a physical and social world composed by many categories andprinciples of the current culture. In this process, there are many actors that play animportant role. Advertising is a way of joining together consumer needs and therepresentation of the culturally constituted world. As a result, the role of advertisingis to communicate the culturally constructed meaning of products to consumers.The second stage is the movement from celebrity to product. It is the moment wherethe product gains a personality during the transfer of celebrity’s meanings. This workis done by advertising agencies which choose the proper celebrity to represent theproduct with the proper meanings. After the meanings are transferred to the product,they should also be transferred to consumers (stage 3). According to McCraken, thislast transfer is to be done by the effort of the consumers who are willing to takepossession of the meanings. This movement will be achieved through cultural rituals. 30
  • 31. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Exhibit 7 Meaning Movement and the Endorsement Process (McCraken, 1989)Finally, this model suggests that companies should investigate the real meanings ofcelebrities that are desirable for their product or brand. In fact, the effectiveness of theendorser will depend in part on the different meanings he/she conveys through theendorsement process.In his findings, Cotting (2002) had improved McCraken’s model by integrating duringthe stage 2 a new element. He claimed that the product has also an influence on thecelebrity’s image. Therefore, he added at stage two a two-way arrow betweencelebrity and product. 2.5 CELEBRITY SELECTIONThis section includes models and theories which use success attributes for thecelebrity selection.COMMON CELEBRITIES’ ATTRIBUTESA celebrity endorser strategy is not without a certain level of risk. That is, selecting aninappropriate endorser can reduce sales revenues and tarnish a brand’s. Because ofthe importance of selecting an effective celebrity endorser, the marketing literature isreplete with articles that evaluate which celebrity attributes correlate the highest witha successful endorsement (Amos, Holmes, & Strutton, 2008). 31
  • 32. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009TrustworthinessMost of the literature sustains that trustworthiness is one of the essential attributesfor a celebrity to be credible. The credibility of the message is one of the mostimportant criteria when choosing a celebrity endorser (Knott & James, 2003). Indeed,the credibility of the source plays a considerable role in celebrity endorsement since itinfluences beliefs, opinions, attitudes, and behavior through the internalizationprocess. That explains why trustworthiness appears to have a significant impact onthe effectiveness of the celebrity endorsement (Chao, Whurer, & Werani, 2005).Trustworthiness represents honesty, integrity, and believability that an endorsercommunicates with a target audience (Erdogan, Baker, & Tagg, 2001). Therefore,trustworthiness is the degree of confidence that a communicator transmits to hisaudience (Amos, Holmes, & Strutton, 2008). If the degree of confidence is high, thenthe audience attitude changes effectively. Moreover, a degree of confidence is evenmore important if the audience has a negative position toward the offering. Insummary, an effective celebrity endorsement strategy requires a high level oftrustworthiness so that the transmitted message is credible.ExpertiseExpertise is another factor that lends credibility to the endorser source. Erdogan(1999:298) defines celebrity endorser expertise as “the extent to which thecommunicator is perceived to be a source of valid assertions.” Thus, the expertise ofan endorser stems from people’s perception of the knowledge, experience, or skillss/he possesses. Perceptions of this knowledge, experience, or skills influence how theaudience judges the offering’s quality. Therefore, individual perceptions of anendorser’s expertise are positively correlated with their purchase intentions and acommunicator perceived to be a source of valid statements can positively impactattitude change (Ohanian, 1990:42).Celebrity PowerPower is a relevant dimension in the process of persuasion. Power gives an endorserthe ability to bring another person to “respond to the request or position the source is 32
  • 33. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009advocating” (Byrne, Whitehead, & Breen, 2003). Hence, the endorser should haverelevant power to administer rewards or punishments. This means that persuasionoccurs when the consumer comes to accept the endorser’s position in order to receiverewards or avoid punishments (Kelman, 1961). As a result, it signifies that thereceiver perceives the endorser is a source of power. It is prudent to note thatsuperficiality is one disadvantage of persuasion through the process of compliance. Infact, persuasion lasts only as long as the receiver believes that the endorser retains thepower of dispensing rewards or punishments (Junokaite, Alijosiene, & Gudonaviciene,2007).The principal persuasive power of a celebrity comes from their being popular, famous,recognizable, admired, trendy and fashionable. These attributes are prime reasonswhy a person achieves celebrity status, and why s/he has the power to influenceothers. Celebrity power can be so strong that in some cases the selection of anendorser is made almost solely upon the individual’s level of popularity.Match of Image and ValuesThe harmony of the match of the product/service offering and the celebrity endorseris explained by the “match-up hypothesis” (Till & Busler, 2000). This hypothesis positsthat the message of the celebrity endorser image and the offering message must becongruent in order to be effective (Kamins M. A., 1990). A match exists when the“degree of perceived fit between brand (brand name, attributes) and celebrity image”is high (Erdogan B. Z., 1999). Interestingly, the perceived match between thecelebrity’s image and values and those of the advertised brand bolsters perceptions ofthe celebrity’s credibility (Friedman & Friedman, 1979). This means that advertisersmust evaluate the characteristics of the target market, the celebrity’s personalitycharacteristics, and the characteristics of the product in order to attain the highestperceived degree of match.This congruence is essential to ensure that the consumer remembers the productinstead of only the celebrity. In fact, research confirms that if there is no relationshipbetween the celebrity and the product, consumers will remember celebrities rather 33
  • 34. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009than products. This effect is called the “vampire effect” because “the celebrity hassucked the life-blood of the product dry” (Evans, 1988).Physical AttractivenessA body of research spanning three decades provides strong support for the contentionthat an individual’s assessment of someone else is highly influenced by their physicalattractiveness (Solomon, 1998). Canary and Cody (1994, pp. 72) state that: “we likeattractive people, we attribute positive qualities to them and find it rewarding whenthey appear to like us.” Moreover, they explain that: “we are more likely to complywith requests from likable, good-looking people than from people who are unlikableand unattractive” (pp. 301). It is for these reasons that previous celebrity endorserstudies report that an endorser’s physical attractiveness is a significant catalyst ofendorser effectiveness (Chao et al., 2005, DeSarbo and Harshman 1985, Ohanian1990). A meta-analysis performed by Amos et al. (2008) also echoed this samesentiment.Genuine SupportGenuine support is a relevant criterion of endorser effectiveness because it increasesthe audience’s credibility perceptions (Magnini, Honeycutt, & Cross, 2007), whoperceive authenticity in the celebrity endorser. This authenticity is related to thesupport of the celebrity for the product s/he endorses. Not only is this supportimportant in front of the camera, but also in his/her lifestyle (Magnini, Honeycutt, &Cross, 2007). A way to increase genuine support is to involve the celebrity in thecreation of the product’s design and features (Boone & Kurtz, 2005). Such celebrityinvolvement will motivate him/her to become a frequent user of the product, whichincreases the perceived authenticity of the endorser.ExclusivityThe exclusivity of a celebrity endorser is a criterion that enhances overall believability(Schiffman & Kanuk, 2004). When a celebrity endorses multiple products, theeffectiveness of their endorsements is diluted (Marconi, 1996). In other words, the 34
  • 35. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009exposure of a celebrity endorsing different products or brands makes anadvertisement less credible. Moreover, people can become overexposed to acelebrity’s image, and for that reason will pay less attention.Exclusivity can also serve to protect a sponsoring company. That is, if a celebritymakes an unsuccessful brand endorsement, that failure can be transmitted to otherbrands that the celebrity is endorsing. Asking exclusivity to the celebrity in thecontract, therefore, can serve as insurance against negative associations.Reference GroupsReference group appeals have been used for decades by marketers to persuadeconsumers to purchase goods (Peter & Olson, 2002). By definition, reference groupsare persons, groups or institutions that a person uses as a point of reference. In thiscase, the reference point is a celebrity with values, behaviors, and lifestyles (Holbrook& al., 2008). These values are a guide to help consumers choose their own values andbehaviors. The celebrity, with his/her values and behaviors, can guide the consumerto purchase a product. In terms of celebrity endorsement strategy, the influence ofreference groups can be divided into two categories: relate and emulate.Reference group: relateThis reference group is usually referred to as membership reference group, whichmeans that people turn into formal members, with a clearly specified structure of amembership reference group. Membership reference group is a utilitarian referencegroup that influences consumers with rewards and punishments. People are expectedto behave in a certain way and are rewarded for, or are punished when they do notbehave the way they are expected (Peter & Olson, 2002). The use of a celebrity can bea strategy with the creation of a reference group influence by showing how a celebrityis close to the consumer. The reference groups are usually social archetype groups,which are groups of people that share a similar lifestyle. Consumers want to emulatethe celebrity’s consumption choice in order to assume part of the group’s identity.Most of the time consumers outside the group are fascinated by celebrities (Holbrook& al., 2008). 35
  • 36. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Reference group: emulateThis reference group is usually termed aspirational, which means that people aspireto emulate the reference group. An aspirational reference group is value-expressive inthe sense that it has an effect on people’s self-concepts (Peter & Olson, 2002).Aspirational reference groups usually include cultural heroes, such as sportscelebrities, and film and music stars that consumers are willing to emulate. Childrencan be particularly impressionable by celebrities they wish to emulate (Holbrook & al.,2008).THE FRED PRINCIPLEThe FRED principle (Exhibit 8) is an acronym which stands for Familiarity, Relevance,Esteem, and Differentiation. This model is the result of a vast study based on 30’000interviews around the world to understand why advertising efforts succeed and fail.This model was developed by Amy Dyson and Douglas Turco (Illinois StateUniversity). Exhibit 8 The FRED Principle Amy Dyson & Douglas TurcoAs already introduced in the source attractiveness model, Familiarity is an importantattribute for a celebrity since it means that the celebrity is well-known and perceivedby the consumer as a person who is friendly, likeable and trustworthy. This is aboutthe celebrity’s recognition. Marketers must choose a celebrity who is recognized bythe target audience. The second component of the FRED principle is the Relevance, 36
  • 37. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009which is by the meaning a synonym of the match of image and values. Indeed,relevance is the connection between the celebrity, the product and the audience. Thethird component is Esteem, esteem from the consumer to the celebrity. Consumersmust have respect and believe the celebrity to be influenced by him/her in order topurchase the endorsed product. Finally, Differentiation is a key component to reachcompetitive advantage. It is the ability of sending the right message in outstandingway. If there is no differentiation with the competitors, then the strategy is notworthwhile.These four components are the success factors of the FRED principle. These guidelinesare a good way of beginning to select one celebrity. However, there is no guarantee ofsuccess because each company’s objectives are different and individual evaluationshould be done.4F’sHamish Pringle suggests another model (Exhibit 9) for selecting the best famouspeople to do a brand promotion. He presents guiding principles that should bemaximized and optimized in order to do the right selection. These principles are thefour F’s: Fit, Fame, Facets, and Finance. Exhibit 9 Four Fs in using a celebrity (Pringle, 2004)Hamish Pringle recommends marketers to ask themselves the following questions(Pringle, 2004): “How well does this particular celebrity Fit in with the brand?” “How Famous is the star?” 37
  • 38. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 “Which Facets of this high-profile person can best work for the brand profile?” “How much of this can the brand Finance?”The relationship between the star and the brand should be the more intimate so thatthe campaign is the more effective possible in the marketplace.SOURCE ATTRIBUTES AND RECEIVER PROCESSING MODESAnother approach on how the celebrity selection is done has been developed by Belch& Belch (2001) with the “Source Attributes and Receiver Processing Modes” (Exhibit10). This approach corresponds to the identification of the influence on consumers’attitude on behavior through different processes. Exhibit 10 Source Attributes and Receiver Processing Modes (Belch & Belch, 2001)Belch & Belch (2001) contend that for the success of the brand-celebrity collaboration,credibility is an essential element. Credibility is defined as the consumers’ perceivedexpertise and trustworthiness. Credibility has therefore a great influence on theconsumers’ acceptance. As already mentioned, internalization process is the processthrough which a promotional message has influence on the consumers’ beliefs,opinions, attitudes, and behavior since information comes from a credible source(celebrity) (Erdogan, Baker, & Tagg, 2001). When consumers internalize an attitude 38
  • 39. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009or opinion, it will be integrated in his/her belief system (Kelman, 1961). Thecredibility attribute is crucial when consumers have a negative position toward theendorsed product. The target audience has to believe in the celebrity who is endorsinga product.The authors state that celebrity attractiveness has a positive impact on consumers.Attractiveness is considered in this case as physical appearance, intellectualcapabilities, athletic competence and lifestyle. It includes in the definition: similarityand likeability (McGuire, 1968). Consumers will more easily remember the brand if itis endorsed by an attractive celebrity. Persuasion is done through a process ofidentification. The result of this process is the consumers’ acceptance of informationfrom attractive endorsers because of consumers’ need of identification with suchendorsers (Kelman, 1961).The third process through which persuasion occurs is called compliance. Whencelebrity has power (Kelman, 1961), he/she is able to administer rewards andpunishments to consumers. Therefore, when a consumer accepts his/her influence hewill hope to obtain a favorable reaction or avoid punishment. However, in the case ofadvertising, Belch & Belch (2001) claim that an endorser cannot apply any kind ofsanctions. The power in advertising can be used with an authoritative personality asendorser. But, generally speaking, power is more effective as an attribute for a face-to-face communication.Q-RATINGSQ-rating is an approach that considers essentially familiarity and likeability of thecelebrity (Knott & James, 2003). The aim of this approach is to help establishing thevalue of celebrities. It has been created in USA for over 40 years by a researchcompany in New York called Marketing Evaluations, Inc. The results of the datacollected establish the consumers’ perceptions and feelings into a “likeability”measurement (Pringle, 2004). The Q-rating is defined as “the percentage of thosefamiliar with a personality who rate that personality as “one of my favorites” (on thequestionnaire)” (Knott & James, 2003). This survey is done twice a year so that therating is updated as much as possible. The survey is compiled by 1800 participantsfrom all ages. The data then can be sold to many entities such as television, public 39
  • 40. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009relations professionals, advertisers, and agents. The criticism of this approach is thefact that it is based on a simple ratio of likeability and familiarity. Indeed, it can bringto misunderstanding and wrong interpretation (Knott & James, 2003). There are alsoother lists that try to set the monetary value of the celebrities (movies stars). There iseven the “Celebdaq”6 with an online index where people can buy and sell shares instars like in a real stock exchange (Pringle, 2004) (Exhibit 11). The Forbes Magazinemakes either celebrities’ rankings but in terms of their earnings over the past twelvemonths7. Exhibit 11 Pop Shares http://www.bbc.co.uk/celebdaq/lists/POPprofile.shtmlAll these rankings are snapshots that can change very quickly. Therefore, it is risky tochoose your celebrity endorser only relying on these rankings because it might beonly a flavor of the month. It would not be a wise decision. That is the reason whymany practitioners use their personal judgment most of the time when they choosecelebrities for advertising campaigns (Miciak & Shanklin, 1994).According to Agraval & Kamakura (1995), who evaluated the economical impact ofC.E. contracts, they observed through 110 C.E. contracts that the investment in apersonality has value in the eyes of the analysts. Consequently, the value of the stocksrises the day of the C.E. contract announcement. This explains why the right selectionof a celebrity as a spokesperson is crucial. The literature review is replete of different6 http://www.bbc.co.uk/celebdaq7 http://www.forbes.com/2009/06/03/forbes-100-celebrity-09-jolie-oprah-madonna_land.html 40
  • 41. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009strategies for the selection. Firstly, companies should investigate the real meaningthey want to convey before selecting a celebrity. Depending on their strategies,companies will then choose the right celebrity selection’s model.SPORTS INDUSTRYYesterday Michael Jordan, today Roger Federer, who is going to be tomorrow’s sportsicon in the celebrity endorsement?The essence of endorsement in sports industry lies on timing. Indeed, timing is crucialbecause companies have to exploit the occasion when an athlete makes the rightperformance. Companies also know that public opinion can fade quickly, thereforetiming is the key. The characteristics of sports’ celebrities’ selection rely on otherfactors as well.In sports industry, endorsements are the result of three simultaneous elements: (1)Athletic accomplishment; (2) Public recognition of the spectacle; (3) Opportunisticmarketing on behalf of a company (Schaaf, 1995).Marketers usually look for the best athletes to promote their products. They look fordifferent characteristics, such as the success of the athlete, his/her visibility, andhis/her work ethic. These characteristics are definitely crucial in the athlete’sselection. The right selection implies different images in the celebrity endorsementprocess (Pemberton, Sports Marketing: the Money Side of Sports, 1997). First, thecompany’s image is involved by being endorsed by a celebrity. Then the image of theathlete is either involved in the sense that it will be associated with a certain type ofproduct. Finally, the overall image to be promoted has to be well decided and welldesigned, so that consumers get to the right point.For the company’s point of view, getting the right athletes implies doing a backgroundinvestigation, interviewing the athlete about the product, choosing an athlete willingto give 100% and able to honor the request. From the athlete’s point of view, it isimportant to understand well the terms of the contract and to test the product toendorse. Indeed, the product might not be functional and the athlete might loosecredibility. The athlete should give his/her full collaboration so that both parties canbenefit from the association (Pemberton, 1997). 41
  • 42. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009This relationship between an athlete and the company reinforces the associationbetween three different key groups: (1) Fans; (2) Athletes; (3) The sport itself (Schaaf,1995). The driver of the whole relationship is money. Companies’ concept is alwaysthe same. They associate their product’s image by integrating a personality to build acompetitive advantage over the competition.Three basic characteristics of the endorsement business climate should be taken intoconsideration and not forgotten (Schaaf, 1995): Athletes are expensive, and risky. They are overpaid for doing promotional services and demand anything from the company. There are few athletes who get the deals, only the famous ones. There is a restricted selection. Celebrity endorsement enhances the high visibility sports.The fans want to identify with their favorite athlete, and this is one stage of thecelebrity endorsement strategy – identification. Afterwards, companies wait for theright timing to exploit the performance of one athlete for their promotional needs.A successful example of celebrity endorsement strategy done in 2007 was the launchof the “New Gillette® Champions Program” campaign8. The launch was done withthree new ambassadors by Procter&Gamble and it was a great challenge (Appendix4). Undeniably, they choose the three best-known and most successful athletes at thatmoment: Tiger Woods, Roger Federer, and Thierry Henry.[The Gillette name is synonymous with being the best. These three athletes have proven they have what ittakes to be a champion on the course, the court or the pitch. They were chosen not only for theiroutstanding sporting performances, but also for their performance off the field, in their charitable actions,support of social causes or their reputations as icons of true sporting values. ] Chip Bergh, President ofGlobal Grooming at Gillette.This was a huge investment but they won their bet. The campaign was a success. Itwas designed for more than 150 markets in the first year of the launch. The threeambassadors were consistently chosen for their sporting performance as well as fortheir behavior away from the game.8 http://www.ch.pg.com/presse/0701_gillette_champs/index_fr.shtml 42
  • 43. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 2.6 Overview of models and theoriesThe review of the existing theories and models about celebrity endorsement showed areal focus on celebrities’ attributes. The attributes of the celebrity are in fact a crucialstep during the selection phase. Three attributes are particularly present in literaturereview: credibility, familiarity, and attractiveness. These attributes appear to be themost relevant while choosing a celebrity.Most of the models/theories claim that the attributes are related to specific processes.Indeed, celebrities’ attributes impact on consumers can be explained through theseprocesses, such as internalization, identification, and compliance. It is very importantfor companies to understand these processes before choosing the right celebrity.Different attributes lead definitely to different processes. This is the reason whycompanies need to be clear on what kind of strategy there are ready for.Some models focus only on few attributes which is not a realistic way of building acelebrity endorsement strategy. This is the case of the “Source Credibility model”which measures only the expertise and trustworthiness. Then, the “SourceAttractiveness model” demonstrates a very powerful attribute but still is not enoughto measure the celebrity endorsement effectiveness and moreover it might not leadevery time to a purchase intent. “The Product Match-up hypothesis” follows the sameproblematic of considering only few attributes. Finally, the “Q-ratings” approach isbased only on two attributes, which is not enough for companies to trust it at 100%.The FRED principle and the 4F’s are two models that give a quick overview of whatcelebrity endorsement should be constituted of, but it is a very light overview withfew attributes and few dimensions of the strategy. The 4F’s, in any case, includes alsothe financial dimension.A more complete approach is the “Source Attributes and Receivers Processing Modes”which goes from the attributes to the processes, but focusing too much on consumers’attitudes. 43
  • 44. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009To conclude, the most complete approach is “The Meaning Transfer Model”. Thisapproach is created step-by-step following the endorsement process. That is thereason why this is the most complete approach. It takes into considerations manyelements. It is an essential approach for companies, because it makes them investigateand understand the real meanings they would like to convey with celebrities. It is anexcellent analysis for companies.An overview is presented in a table to sum up all the models and theories as well astheir characteristics: MODEL/THEORY CHARACTERISTICS SOURCESOURCE CREDIBILITY The effectiveness of the endorser’s message (Hovland, Irving, Kelly, &MODEL depends on his perceived level of expertise Harold, 1953) and trustworthiness. Both attributes lead to the internalization process.SOURCE The effectiveness of the endorser’s message (McGuire, 1968)ATTRACTIVENESS depends on his/her similarity, familiarity,MODEL and liking. Attractiveness is determined by the identification process.THE PRODUCT The effectiveness of the strategy is (Forkan, 1980)MATCH-UP determined by the harmony of the match (Kamins, 1990)HYPOTHESIS between the celebrity endorser and the product being endorsed.THE MEANING The effectiveness of celebrity endorsement (McCraken, 1989)TRANSFER MODEL strategy relies on the meaning that the celebrity conveys through the endorsement process.THE FRED PRINCIPLE FRED is an acronym, which stands for four (Amy Dyson & Douglas attributes that are the success factors of Turco, university of celebrity endorsement: familiarity, Illinois) relevance, esteem, and differentiation.THE 4 F’s The 4 F’s are four principles needed to select (Pringle, 2004) the best famous people to do a brand promotion: fit, fame, facets, and finance.SOURCE ATTRIBUTES The celebrity selection is made upon three (Belch & Belch, 2001)AND RECEIVER attributes: credibility, attractiveness, andPROCESSING MODES power. This approach corresponds to the identification of the influence on consumers’ attitude on behavior through different processes: internalization, identification, and compliance.Q-RATINGS This approach considers familiarity and (Knott & James, 2003) likeability for the selection of the celebrity. The Q-ratings are based on surveys that enable to rank the celebrities. 44
  • 45. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009These models and theories all combined with all understandings and evidences canform a strong basis for the creation of the celebrity endorsement concept. Despite thiswell-built knowledge, other factors and dimensions should be considered to be able tomeasure the effectiveness of celebrity endorsement. These are the elements to bediscovered in the second part of this thesis. 45
  • 46. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 VI. PRACTICAL PART 46
  • 47. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009As we observed in the theoretical part, one difficulty for companies is to choose theright celebrity endorsement concept and the right spokesperson. As a general rule, thecelebrity has to be compatible with the brand/product in order to make the strategywork. Indeed, integration between celebrity and brand is crucial from the customerpoint of view. The finding of the right strategy and celebrity is a real challenge formarketers. However, companies understood that it is worth it.Many celebrities’ attributes have been identified as success attributes for the celebrityselection. Of course, it is important for companies to well define first the meaning theywant consumers to associate with the brand, in order to set priorities on thecelebrities’ attributes selection.However, many other dimensions and components need to be examined to be able toimplement an effective celebrity endorsement strategy.In this practical part, these dimensions and components will be identified, classified,and examined so that an overall celebrity endorsement strategy can be designed.3. MODEL PROPOSALIn this part, three different models will be presented. The first one is “the ManagementCircle for C.E. Strategy” which illustrates the general stages of the process of C.E.within a company. The second is “the Drivers of C.E. strategies” which list allstakeholders involved in the process of a C.E. strategy. Finally, the last model “the C.E.Effectiveness Model” is the model proposal of this thesis which examines everycomponent of the C.E. process to reach effectiveness. 3.1 The Management Circle for C.E. Strategy“The Management Circle for C.E. Strategy” illustrates the overall strategy of a companywhen deciding for a new marketing strategy (Exhibit 12). Every stage has manydifferent tasks to accomplish in order to complete the circle. 47
  • 48. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Exhibit 12 The Management Circle for C.E. Strategy Adapted from “The Management Circle” (Cotting, 2007/2008)9 OVERALL STRATEGIES A Company must have in mind what the big picture of the company is. Indeed, it is important to have a clear strategic vision, and therefore also a clear strategic planning process itself. Company strategy The company begins with the definition of the mission and its mid/long term objectives. Then it has to design a plan of action to achieve these objectives. The company needs also to monitor the environment and analyze the situation by doing for example a SWOT analysis.9 Appendix 5 48
  • 49. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Positioning Marketers need to know what the image of the brand/product stands for in the mind of the consumers. The definition of this position is essential to develop a marketing strategy. Stakeholder Relationships Communication strategies have to be well delineated for internal and external stakeholders. The definition of the messages must be clear and sent correctly through the right channels chosen previously. Marketing/PR strategy The marketing team must base their formulation of the marketing goals and strategy on the company strategy. Everything must be well aligned. Marketing managers’ role is to search the market trends, define the marketing mix, the timing of the activity, and the budget. One role is either the brand personality definition, which is an important step of “the Management Circle for C.E. Strategy” (next stage: definition of brand personality). DEFINITION OF BRAND PERSONALITY Brand Audit The challenge is to determine the meaning consumers associate with the brand. The brand audit is an essential starting point for any brand campaign. The full understanding of the brand personality is crucial because it answers the question: “Where are we now?” It is a necessary step to understand brand personality with its components, before associated it with another personality (celebrity). In the case of C.E., it would be useful to apply the “brand anthropomorphy” (Exhibit 13) which is a model that personifies the brand in terms of human attributes such as attitudes, values, and even behaviors (Pringle, 2004). The goal for marketers is to analyze the brand as if it were a person. The exhibit 13 shows the three main constituents: 49
  • 50. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Exhibit 13 Brand anthropomorphy model (Pringle, 2004) The rational element is related to the performance of the product or service brand. The impact of celebrities promoting the performance of the product with good argumentation and authority works well and it has a powerful impact on audience. This element is still used in advertising even though emotional and other brands values are emphasized. The second element that a company can focus on to establish a starting position for its campaign is the emotional and psychological benefits surrounding the brand. Consumers can assign a range of human qualifications to their products, such as friendly or unfriendly, traditional or modern, dynamic or relaxing. Knowing what kind of qualifications your product is compared with, you can correct it if necessary by choosing the right celebrity with appropriate qualities and associations. It might be a fast remedy to negative perceptions. Then finally, the third element is ethics (with politics, and social responsibility). The role of celebrity in this case is usually associated with a context of charities and good causes (Pringle, 2004). Positioning Map As the name indicates, the positioning map enables to know what position the brand owns compared to the competitors. By doing this kind of research, the marketers might change their position depending on the competitors’ situation, or if the company wants to enter other market segments. The company can employ a celebrity with a set of values that correspond to the 50
  • 51. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 market segment the company would like to reach. For example, a company is willing to refresh a brand (Brand A) because of the saturation of the market and therefore would like to change market segment. The company asks itself: What are we going to do to get there? One possible solution is to use a celebrity to push Brand A to go in the right direction. Instead of being in the traditional luxury goods, the company is willing to change into the modern luxury goods and might use a celebrity who corresponds to these values to generate the desired positioning of “modern luxury”. (See the example illustration on the Exhibit 14) Exhibit 14 Positioning Map Example DEFINITION OF C.E. STRATEGY Once the company decides to go on with a C.E. strategy, then it has to define it precisely beginning with the designation of each drivers of the strategy and then designing the strategy using “The C.E. Effectiveness model”. “The Drivers of C.E. Strategies” (see section 3.2) “The C.E. Effectiveness model” (see section 3.3) 51
  • 52. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009IMPLEMENTING & CONTROLLING C.E. STRATEGY Project organization Reach of Vision/Positioning Celebrity’s activities The control and monitoring of the celebrity’s activities – private life and professional life – are essential as they have a direct impact on the company and the brand’s image. Target/Financial Impact The effectiveness of celebrity endorsement is not easy to measure because of its variety of variables. However, there are three different common ways to measure it. Sales are the first evident way of measuring the effectiveness of celebrity endorsement. Usually a great amount of monetary output is used to get the celebrity endorse the product/service. Therefore, one of the goals of this strategy is the growth of sales to get a profit. This measure can be done by comparing the sales and profit generated after the celebrity endorsement to the same before the strategy. We can also calculate the ratio of profits brought in after celebrity endorsement against the cost of celebrity endorsement to the ratio of profits to cost prior the strategy. The second way of measuring the effectiveness of the strategy is the celebrity endorsement brand awareness. The impact of brand awareness is essential. It can affect perception and even tastes. It is an important asset for the company to measure. A comparison of the brand awareness after the celebrity endorsement and before the strategy has to be done. Finally, the last way of measurement is the brand loyalty, which is the heart of a brand value. By this measurement, we want to know if the strategy has enabled to strengthen the size and intensity of each segment. The control of the C.E. strategy will also be done through the “Celebrity Endorsement Strategy CHECK” which can also be used as a tool of measurement (see section 4.). 52
  • 53. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 3.2 The Drivers of C.E. Strategies“The Drivers of C.E. strategies” lists every stakeholder involved in the process of a C.E.strategy. Each stakeholder has a role to play in this process, consciously or not. Exhibit 15 The Drivers of C.E. Strategies Adapted from “The Sponsorship Market Model”10 (Cotting, 2007/2008)THE COMPANY AS A PRINCIPAL DRIVER OF C.E. STRATEGIESThe C.E. strategies are decided by the company, which makes the company in firstposition as the principal driver of C.E. strategies. Before taking any strategic decisions,the company has to understand what their competitive key skills are. Once these skillsidentified, the marketing management team will delineate which strategy to use inorder to be competitive. In the last years, companies understood that realizing a C.E.strategy enables them to create an important impact on consumers. It does not onlyenhance the company’s profit, it enhances brand reputation, creates brand awareness,and brand loyalty (Pringle, 2004).10 Appendix 6 53
  • 54. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009THE BRANDOver the last years, many brands were endorsed by celebrities. Today, the number ofbrands that use celebrity endorsement is increasing, and at the same time theprofessionalism within the industry is enhancing. A brand is the creation of an identityfor a company/product with attractive qualities for the consumers, and can becomean institution (Levine, 2003). Celebrity endorsement can be used in different ways forthe brand’s needs: Delivering emotional experiences to differentiate from competition (Cotting, 2007/2008): the key success within a competitive market is the differentiation, and that is what companies look for. They would like to give a different experience to their consumers through emotions, and feelings. The central point of the strategy is to enter the consumers’ lifestyle by talking with them and without disturbing them too much. Stories can be developed to create new experiences. This is another way of differentiation and it can be done through celebrity endorsement strategies. Brand launch, reinforcement or repositioning: for a new brand, the media attention a celebrity attracts is a perfect way of getting attention itself at a fraction of the cost. Branding is the fact of creating a personality; therefore the association of another personality could enhance its own brand identity. So, the usage of C.E. endorsement strategy might be the solution for the introduction of a new brand or for its revitalization. Enhancing customer relationship: increasing brand awareness through the high visibility of the celebrity and strengthen brand loyalty through the fans’ loyalty to their celebrity. Getting exclusiveness and global campaign: choosing a celebrity means also choosing an exclusive campaign, however some exclusivity clauses might be used to eliminate the risk of competition. Many companies use international celebrities, so that they can extend their campaign to other countries.THE CELEBRITY PERSPECTIVE Contract and revenue: celebrity must be ready to change and control his/her behaviors and agree to specified terms of the contract. The revenue is one of 54
  • 55. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 the principal reasons for a celebrity to endorse a brand/product. For a celebrity, the profit means money in cash, and/or royalties, and/or stock opportunities. High visibility: celebrity will give to the company high visibility, especially it he/she is successful at the time. But negative publicity can hurt both celebrity and the company, so careful consideration is necessary. Enhancing reputation and attractiveness: the association of a brand/product might also be a positive transfer to the celebrity. It might either enhance celebrity’s reputation and attractiveness.THE PARTNERS’ PERSPECTIVEIn a C.E. relationship, there are many mediators between the brand and the celebritythat advice both principal actors of the C.E. network. Usually the role of theseintermediaries is to advice with specialized knowledge and to reduce the number ofcontacts within the C.E. network (Cotting, 2007/2008). Media partners; Agencies/Consultants; Managers/Lawyers.It is crucial that the company and the agency are hypersensitive to the personality ofthe celebrity, and that they manage seriously this relationship (Pringle, 2004).THE MEDIA PERSPECTIVEThe media are the tool through which the companies’ messages are transmitted. It isalso an intrusive tool through which public can glimpse into celebrities’ lives. All kindof media have been saturated with celebrities. Initially, the celebrity phenomenon wascreated by the movies and TV, but then the other media played a significant role aswell and the sector is always increasing. In 2002, it was estimated that the number ofcelebrity-related magazines sold was 100 million in the UK, and beginning 2003 thefour most sold magazines were selling over 2,5 million per week (Pringle, 2004).THE PUBLIC PERSPECTIVEConsumers today are (Cotting, 2007/2008): Well informed; Mobile and more leisure-oriented; Wealthy; 55
  • 56. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 In relation to large enterprise distrustful; Critical of classical advertisement; Experienced on new media; In the search for new challenges; Faced with an information overflow; Flexible, in addition, more individualistic.Nowadays, companies have to work harder on the way of getting people’s attention.The consumer is more attentive. Therefore, using a C.E. strategy is a way ofcaptivating today’s consumers.The C.E. strategy is facing three types of public: the final target group of thebrand/product, the loyal public of the media and the public of the celebrity. Thisshows how a C.E. strategy might be more effective than a simple campaign. Indeed,with C.E. strategy, there is the celebrity’s public who will follow him/her. Themaximization of the C.E. strategy is met when the three publics are attracted by thecampaign.The model of the “Structure of the Celebrity Industry” (Exhibit 4) can be included inthis model with the drivers. Indeed, all the actors of the celebrity industry are part aswell as the drivers for celebrity endorsement. 3.3 The C.E. Effectiveness ModelThe Celebrity Endorsement (C.E.) Effectiveness Model (Exhibit 16) is thought as asolution for companies willing to reach the maximization of a C.E. strategy. In theliterature review, there exist many models and theories that claim to enable effectivec.e. strategies. However, these approaches to effectiveness fail in coming together witheach factor and dimension a company should take into account when using a C.E.approach as advertising strategy choice. This is the reason why the creation of acomplete model was necessary. 56
  • 57. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The C.E. Effectiveness Model is based on a previous model created for sponsorshipstrategies – “The Sponsorship Effectiveness Model” – by Dr. Patrick Cotting11 (Cotting,2000). Cotting’s effectiveness model is based on hypotheses from theories andmodels verified with a meta-analysis of 93 sponsorship effectiveness studies.For the purpose of the thesis, “The Sponsorship Effectiveness Model” has beenadapted to suit the C.E. strategies. This model was the right finding to be able toconstruct a C.E. toolkit since it has the right fundaments and moreover it is designedfor a branding strategy. Exhibit 16 The C.E. Effectiveness Model Adapted from “The Sponsorship Effectiveness Model” (Cotting, 2000)11 Appendix 7 57
  • 58. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The new model (Exhibit 16) is designed with three different constructs: A. Exposure/Awareness The first construct is about the Exposure/Awareness of the brand/product. The usage of celebrities should have positive repercussions on the brand’s fame. Celebrities’ visibility is high and by endorsing a product, companies benefit from this high visibility. The single fact that the celebrity has name recognition, then the endorsement of a product by a celebrity creates attention and therefore creates brand awareness. This has an influence on human beings short and long term memory. An example, quoted by Cotting (2000), is the Campbell Soup endorsed by Nancy Kerrigan in 1994. The exposure of the product was so high with the commercial on TV with Nancy Kerrigan, before the Olympic Games of Lillehammer, that a representative research showed that Campbell soup was considered as one of the top 10 sponsors of the Olympic Games. It was the brand that people recognized the most as a sponsor for the Olympic Games with a percentage of 10%, in front of VISA and Coca Cola. This example shows that awareness is highly brought by the usage of celebrities in advertising campaigns. B. Attitude/Image Celebrities have a great influence on the attitude and image and it is demonstrated by many studies that their influence on attitude/image is positive. The process from Exposure/Awareness to Attitude/Image is the process of giving a meaning to the C.E. strategy. At this point, people will have a positive or negative input which will lead to a positive or negative output in terms of purchasing or not, being loyal or not. 58
  • 59. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 However, Friedmann & Friedmann (1979) insist on the fact that there are also many risks in this strategy to take into account and that might lead to a negative influence on attitude/image. The attitude/image construct is influenced through many different processes, such as the “Attractiveness model” and the “Match-up hypothesis model” for example, already mentioned in the above sections. C. Behavior Celebrities not only act on exposure/ awareness and attitude/image, but also on behavior. Celebrities lead opinions and that make people follow them in many situations, and in this case in their purchases (Pringle, 2004). This is the typical process of compulsive purchase which is seen as an immediate action without giving an appropriate meaning before. This process shows also the loyalty of the consumers. Indeed, if the consumer is convinced only by the exposure of the celebrity, then he/she will automatically buy the product without thinking what it represents to him/her. Then, usually after a compulsive purchase, people come back home and rethink the purchase. This process explains why there is a double arrow from Behavior to Attitude/Image and vice versa. Indeed, once the compulsive purchase done, the fact of thinking of it later sends us back to the Attitude/Image construct which differs from the usual process demonstrated by different studies like AIDA (Awareness Interest Desire Action).The three constructs are not all interrelated; it will depend on each situation. Indeed,each individual’s reaction is different. Hence, the model is not hierarchical. This meansthat Attitude/Image and Exposure/Awareness can have a diverse effect with diverse 59
  • 60. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009intensities on Behavior. In the process, there can be also interdependent effects whichmight influence Attitude/Image and Behavior. Behavior can act either onAttitude/Image afterwards.The three constructs can be applied to anybody, from clients, to fans, non-clients, bigmass and employees. The only change will be the extent of the psychology-relatedinfluentials.The intensity of the impact between each construct depends on influential factors. Tilltoday, the literature did not take into account every influential factor in such aprocess. Based on other studies, Cotting (2000) distinguishes three influential factorsdimensions. Each influential factors dimension is composed by “success factors”which have an impact on the activity of the C.E. and that have either influence on thethree constructs. In total, the model counts ten different “success factors” thattogether form and define the final result of C.E. strategies and its effectiveness. 1. DESIGN-RELATED INFLUENTIALS, which reflect the elements of the overall creation of the C.E. strategy. Success factors: Associated Experience World (Cotting, 2007/2008), is typically illustrated by sports, arts, entertainment or causes. An experience world is represented by an individual, a group/team, an institution or a company. It is a real world, not fictional, with emotions and feelings. Experience Worlds can be entertaining, educating, consuming, and participating. Celebrity Endorsement Concept, chosen by the company with its strategic plans. Design/Creativity of Celebrity Endorsement messages, which represents what the campaign’s message will convey to consumers. 2. MEDIA-RELATED INFLUENTIALS, which concern external influence of the environment where the C.E. messages are sent to the receivers. This dimension is divided in three distinct factors because of their different roles and influence on the celebrity endorsement project: 60
  • 61. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Mass Media, every media involved (TV, radio, internet, printed media, blog, mobile phones). Opinion Leaders, those people whose opinions and behaviors serve as model to others. They are therefore able to influence the attitudes and behaviors of their followers. Activities from Competitors and Celebrity (private/professional). It is always essential to know what competitors are doing, because they either can influence your projects. In the C.E. project, the activities from the celebrities from a private and professional point of view need to always be measured and controlled. 3. PSYCHOLOGY-RELATED INFLUENTIALS, which concerns the creation of C.E. stimuli by the receivers. Naturally, this process is individual because of the uniqueness of each single receiver. The communications effects of celebrity endorsement vary also according to the degree to which the consumer is involved with the celebrity and brand. Success factors according to Cotting are: Experience World/Celebrity, meaning the involvement of the receiver towards the experience world and the celebrity. Company (Brand/Product), meaning the involvement of the receiver towards the product and the company. Either the customers’ experiences might have an impact in this position. Celebrity Endorsement, meaning the involvement of the receiver towards the C.E. activity, with the association with the experience world and the celebrity itself. Receiver, meaning the involvement of the receiver towards its demographics and psychographics characteristics.All three influential factors dimension must be present for a successful strategy, aswell as all success factors. The success factors have to be fulfilled consequentlydepending on the chosen strategies, the need, and the intended results. It is importantto well consider each factor before leaving it apart, and not underestimate it. 61
  • 62. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 20094. QUESTIONNAIRE: Celebrity Endorsement Strategy CHECKThe questionnaire was designed in order to have a tool to guide in the C.E. strategyelaboration. However, the tool will also serve afterwards to measure the effectivenessof the strategy once the campaign is launched12.The first use of this tool will be during the definition strategy phase. Marketers willfirst explore each success factors deeply and define them in detail in terms ofobjectives and needs for the campaign. So each success factor will be examined anddeveloped one by one. For each success factor, a SWOT analysis will be conducted inorder to understand well the overall situation in terms of strengths, weaknesses,opportunities, and threats. This is a good method of analyzing each success factorbecause the marketers will have to identify internal and external factors influencingthe campaign. This aims to prevent every situations and risks, and enhances thepercentage of reaching a real success.The second use of this tool will be during the Implementation phase, where marketerscould give an auto-evaluation of the expected result of each factor with a Likert scalein the Planned Status section (Exhibit 17). This evaluation will be merely a vision ofthe marketing team’s expectations of the future campaign. Marketers might also usethe result of beta-testing of the campaign to do this evaluation.The third use of this tool will be during the Controlling phase, where marketers willevaluate their work done and the final result by using the Likert scale in the ActualStatus (Exhibit 17). However, this time it will not be an auto-evaluation by themarketing team, but it will be the result of different measurement tools. Indeed, in thePlanned Status section it represents an auto-evaluation, because the campaign is stillnot launched. In the Actual Status section, marketers will use different measurementtools in order to evaluate the three dimensions (design-related influentials, media-related influentials, psychology-related influentials).12 See Appendix 8 62
  • 63. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The three success factors of the Design-related influentials can be measured internallyin the company with auto-critic and also externally with experts’ opinion/analysis ofthe campaign in terms of design, creativity, and concept.The three success factors of the Media-related influentials can be measured withdifferent tools. The media evaluation today is crucial in PR world. The evaluation isusually done through Media Content Analysis which consists of monitoring andevaluates the blogosphere in order to identify opinion formers. A Media Benchmarkcan also be done to establish what is being said about you, as a stand-alone project,and in comparison to the key competitors or market sector.Finally, the four success factors of the Psychology-related influentials can bemeasured with consumer behavior methods. Many methods and models have beendeveloped to measure memory for advertising, level of involvement, values, andattitudes.Having these two evaluations – planned and actual status – permit the marketers tocontrol the effectiveness of each factor and of the overall C.E. strategy. Exhibit 17 Questionnaire example for one success factor FACTORS WHAT? / WHY? SWOT STRENGTHS: (1) ASSOCIATED EXPERIENCE WORLD WEAKNESSES: OPPORTUNITIES: THREATS: EVALUATION OF Planned Status Actual Status THE FACTOR (1-6 Likert Scale) Celebrity Endorsement Strategy CHECK 63
  • 64. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 20095. COMPANIES’ INTERVIEWSAs this thesis is based on exploratory research, with the goal of developing suggestiveideas, interviews are a good method suited for information gathering (Kotler, et al.,2007). 5.1 SWATCH SWATCH HISTORY13 The Swatch watches were introduced in 1983, first in Switzerland,Great Britain, and the United States. Within a few years, Swatch was available inalmost every country. The success was immediate. Before the Swatch introduction,the Swiss watch industry was in a serious crisis. There was a rude competition withJapanese manufacturers, who introduced in the market the thinnest electronicwristwatch. But then, the foundation of SMH (Swiss Corporation for Microelectronicsand Watchmaking Industries) answered to the crisis by introducing a Swatch withslim plastic and with fewer components than ever. This Swatch was a top qualitywatch with an affordable price. “Swatch overcomes crisis and leads to the survival ofthe Swiss watch industry.14”The Swatch concept (“Swiss” + “watch”) was first seen as controversial because fromthe start, Hayek, co-founder and president of Swatch Group (the parent company andlargest watch company in the world), argued that every component had to be built inSwitzerland. It was really controversial if we think that he wanted to manufacture acheap top quality watch in one of the most expensive countries in the world. Thesecond controversial element of the Swatch concept was the fact that the watch wouldbe encased in cheap plastic, in a country which has always been known for using thehighest-quality materials.PROMOTIONAL ACTIVITIES AT SWATCHSwatch promotion is based on the fact that they are not just selling a consumerproduct, but an emotional product (Moon, 2004). Hayek says that Swatch embraces13 http://www.swatch.com14 http://www.swatch.com/zz_en/about/history.html 64
  • 65. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009the fantasy and imagination of the childhood and youth. “[…] Emotional products areabout message – a strong, exciting, distinct, authentic message that tells people whoyou are and why you do what you do. […] the most important element of Swatchmessage is the hardest for others to copy. Ultimately, we are not just offering watches.We are offering our personal culture.” (Hayek)The primary thing in Swatch is the design. Swatch designs a large number of modelsfor every occasion and collaborating with many designers, creators, and artists, suchas Keith Haring, Alessandro Mendini, and Kiki Picasso.The promotional approach in 1989-1990 of Swatch was to spend 30% of the retailprice on advertising, which was not usual for a Swiss company at that time. Indeed,Swiss brands were more traditional-oriented and discreet targeting classydemographic.Today, Swatch promotions are still original and unconventional with sponsorships,celebrity endorsements, special events, and product placements.INTERVIEW WITH ROBERTO COSTA, HEAD OF ADVERTISING & INTERNET(23.07.09)Mr. Roberto Costa kindly accepted to be interviewed about the celebrity endorsementstrategies of Swatch. For confidential reasons, this interview was not recorded;therefore a full summary of the interview will be presented.Swatch approach towards testimonialsFor promotional strategies, Swatch is product-focused meaning that Swatch places thewatch in its chief concern. Even with a celebrity endorsement strategy, the watch willalways be first in Swatch’s mind. Usually, Swatch does not use many celebrities toendorse products. However, when it is the case, then the celebrity becomes a Swatchcollaborator. The celebrity is chosen with a cooperation approach in the sense that thecelebrity will always be involved in the project creation, and not only endorse theproduct by giving his/her “face”. Celebrities participate with Swatch in the overallproject. This is the reason why Swatch usually does not associate the watch with aface in its ads. The product is the first priority. 65
  • 66. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Swatch also collaborates with many beach volleyball teams, the Swatch Proteam15, butthey use a totally different kind of approach in terms of celebrity endorsement. Theconcept is more focused on the experience world than on the people.“007 Villain Collection”One celebrity endorsement strategy done by Swatch was the “007 Villain Collection”with the different bad characters of all the 007 movies.As said previously (Exhibit 3), celebrities can work for a brand in many ways. In the“007 Villain Collection” campaign, Swatch used the Imported way. Indeed, thecampaign used celebrities that already played a role that the audience already knowsfrom the movies appearances.With this campaign, Swatch took advantage of two aspects. The first was the ironicaland provocative side of the association with the “bad boys” of 007. The second was tobenefit of the high visibility of the celebrities within different markets.However, even in this promotional strategy, the watch was still the first top priorityand focus. The designers had the instructions of inspiring from the villains to createthe watches. Every detail of the villains was studied to inspire the designers. Forexample, the watch of Elektra King16 (Sophie Marceau) was inspired of the dress shewore in the movie. Moreover, the designer received a piece of the original cloth tobetter design the watch.Way of measuringBased on “the C.E. Effectiveness Model”, Swatch is giving more attention to the“media-related influentials”. Therefore, Swatch uses more soft ways of measuring,such as “clipping”, which consists in measuring the press repercussions of thecampaign. For example, through the Mat Rebeaud’s blog17 (motocross champion)there is the possibility of measuring the impact of his Swatch and of the partnership,15 Appendix 916 Appendix 1017 Appendix 11 66
  • 67. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009or also through the Swatchblog18, where it is possible to chat on a forum, to leavecomments, and to reply to the comments.OBSERVATIONSThe interview was really instructive about how Swatch communicates by usingcelebrities as collaborators. It is impressive to list how many celebrities and artistscollaborate with Swatch. However, this collaboration is really different from “normal”C.E. strategies. Their strategy is focused on the associated experience world that acelebrity can give to a watch and customers. Celebrities are not the main focus, buttheir work or experiences are the focus. Swatch uses the best of its collaborators tocreate watches. The watch is the focus and will always be.Swatch does not reject the idea of involving more celebrities within thecommunication, but still the watch has to be the centre of attention. In a future,Swatch might use a more “normal” C.E. strategy. In this case, Roberto Costa admitsthat “The Celebrity Endorsement Effectiveness model” could be a potential usefultoolkit to develop such a strategy, as well as to measure the outcome of it. 5.2 BCV – Banque Cantonale Vaudoise BCV HISTORY19 BCV is a Swiss bank of the canton Vaud which was founded over 160years ago and which values are close ties and professionalism. It is the second largestcantonal bank in Switzerland.BCV’s aim is to build more than a relationship with customers. They attempt todevelop a real partnership, based on close one-to-one contacts with their customers.BCV has a real presence in the canton and it supports the Vaudois’ everyday lives andleisure, being as a result a company with community focus.The bank’s commitments are building individual relationships for each customer,building a dense network of agencies in the canton, identifying the best productsadapted to their customers, following and knowing the local economy, training18 Appendix 1219 www.bcv.ch 67
  • 68. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009tomorrow’s talents, and getting involved in the cultural, sportive and artistic life of thecanton.The company’s mission is to “contribute to the development of all segments of theVaud economy”.CELEBRITY ENDORSEMENT ACTIVITIES AT BCV[If you have a very reputable kind of celebrity who has credibility to make people believethat this person invests in this brokerage firm or deposits their money in that bank, thenthat’s going to be an effective endorsement. ]. Noreen Jenney, President of CelebrityEndorsement Network, (Levine, 2003).During 2005-2008, part of BCV’s strategy and evolution was about enhancingcommunications and image. Indeed, since 2007, BCV launches a new way ofadvertising in the bank field using celebrities. They chose three celebrities with acommon characteristic: they are all Vaudois. They represent people who hadsuccessful careers in their activity, and most importantly they share BCV’s values.BCV’s new communication reflects their philosophy, a bank’s philosophy accessible toeveryone and frank, which privilege human relationships.BCV’S CELEBRITIES20 Anne Richard is an actress who played in many soap operas and plays. She was the first celebrity who endorsed BCV. Being an actress is not easy, but she realized her dream and made a successfulcareer thanks to her talent but also to her patience and perseverance. Today, she isstill living her dream serenely. Anne Richard is happy to be associated with BCV; infact she is still close to her roots even though she is leaving in France now. Peoplefrom canton Vaud appreciate Anne for her simplicity and accessibility. BCV values herenthusiasm and professionalism which lead to the success.20 Appendix 13 68
  • 69. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 Stan Wawrinka is a professional and talented tennisman with only 24 years old and already a gold medal in double at the Olympic Games of Pekin in 2008. This made him part of the top 10best tennismen in the world. To go to the Olympic Games, Stan was lucky to count on agood partnership with BCV. He had to learn working on a team with Roger Federerand their collaboration lead to the success. BCV values this collaboration which isimportant in games but also in real life because trusting in self and counting on thepartners is fundamental. Stan is very tied to his roots and this is the commoncharacteristic in the campaign. Stan Wawrinka will continue his climbing in thesuccess and BCV will continue to encourage and support him as a partner. Thabo Sefolosha is the first Swiss basketball player who had joined the US league of basketball. Thabo 25 years old played during years and made many efforts to reach the summit and in 2006 Thabowas chosen to start a big adventure. Today, he already ended the second season in theNBA and in the meantime, he was transferred from the Chicago Bulls to the OklahomaCity Thunder. He is known for his kindness and openness. Even though he is nowliving in the US, he is still tied to canton Vaud where his family and friends are. BCVvalues his success, talent, work, and perseverance. He has shown that dreams cancome true.INTERVIEW WITH VALÉRIE BASTARDOZ, HEAD OF COMMUNICATION (05.08.09)21Ms. Valérie Bastardoz kindly accepted to be interviewed about the celebrityendorsement strategies of BCV. She accepted to be recorded; therefore a fulltranscript of the interview will be accessible (Appendix 14). The essential points ofthe interview will be shown and discussed in the following paragraphs.21 Appendix 14 69
  • 70. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009BCV approach towards testimonialsBCV decided to introduce a new communication approach within the company in2005-2006. Indeed, the values of BCV were repositioned at branding level with a newlook of the logo, of the branches and publications. The focus was always the Vaudois’identity of the bank. As a result, it was important to communicate with a campaign thevalues of the Vaudois. The initial idea was to find a person that would representswealth management services in a communication campaign. Then, generalmanagement agreed with the idea, but proposed to use a personality, instead of anordinary person. Therefore, everything began since then with the research of Vaudoiscelebrities that would better suit for the communication campaign, the firstpersonality being Anne Richard for wealth management services. This communicationcampaign had always used and will always use Vaudois personalities, born in CantonVaud, or someone who is having a great visibility with his/her activities in the Canton.The association with the Canton is primordial. Until today, BCV used three celebrities,but it might continue, even though nothing is determined yet.“The C.E. Effectiveness Model” – 10 success factorsTo better understand the importance of “The C.E. Effectiveness Model”, the tensuccess factors were followed during the interview. Therefore, the analysis will gothrough each success factor to create the overall overview of the BCV CelebrityEndorsement strategy.The principal aim of the C.E. concept was to acquire a brand image and to emphasizethe professionalism and close ties concepts keeping a pleasant and friendly image. Thebank is targeting very large, because it is the bank of the Vaudois and it has differentbusiness lines (personal banking, corporate banking, trading, private banking andasset management). For that reason, the experience worlds had to be very well chosenin order to touch the most segments possible. The three experience worlds chosenwere the tennis, basket, and cinema. BCV’s choice was based on different criteria:well-known celebrities, humble and not show-off, suited with BCV values, and 70
  • 71. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009personalities that will be used not only for advertising but also for different eventswhere BCV is sponsor, or when BCV organizes an event especially for its clients.The C.E. message to be sent was based on the professionalism and close ties concepts.Then, every celebrity has different characteristics that match BCV’s values. So eachcelebrity was interviewed once or twice in order to understand their lives and theirsuccess. Anne Richard was asked how she succeeded at such a level and how shebecame so well-known. Her answer was simply about doing the right choices.Consequently, the message sent through Anne Richard was about doing the rightchoices in life, but also the right choice of her bank, because when someone chooses abank, he/she needs to trust his/her banker and this will give him/her serenity. AnneRichard is living her dream serenely, with enthusiasm and professionalism. She istransmitting a message of security and serenity.When Valérie Bastardoz talked with Stan Wawrinka, he had just won the Olympicmedal and the message that resulted afterwards was that trust in his partner wasessential to win. The same trust is needed with his banker, as a partner. StanWawrinka works in team and has a great partnership with BCV which is supportinghim. The message that he is transmitting is the trust.Finally, Thabo Sefolosha shows his performance on the basketball field every minuteof the game. And that is what his bank is doing with the daily wealth management –showing the difference. Thabo Sefolosha works a lot, even though he has an innatetalent. His dream came true through his professionalism. The message he istransmitting is daily effort to reach success and quality.[Il fallait donc trouver un langage qui s’applique dans leurs vies professionnelles, maisqui s’applique également dans le choix de l’établissement bancaire.] Valérie Bastardoz[The finding of a single language that applies to their professional lives and to the choiceof their bank was essential.] (Translation)All the possible media were used in order to largely send the message: web, poster,displays, newspapers, magazines, BCV agencies, ATM, and internal publications. The 71
  • 72. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009only exception was TV. Indeed, as BCV’s target is the Canton Vaud, there would be ahuge loss in sending the message through TV. Moreover, there is a campaign launchedespecially on TV for the promotion of the Banks of all Cantons of Switzerland (24banks) named “Grandir Ensemble” (grow together). That is another reason why BCVdid not use TV as a media.For BCV, the personalities, as opinion leaders, need to be respected by the public andthey need to have a similar opinion as the bank. Therefore, there are many celebritiesthat could not be associated with the bank. It is a hard work, but the association isvital for a right communication campaign.According to Valérie Bastardoz, one thing to take into consideration while choosingopinion leaders is not being betrayed. Then, second thing is to think in terms of thebrand BCV globally. When people will think of BCV, the association with one celebrityshould be done. The same thing, when people will think of one of the celebrities, theassociation with BCV should be done as well. The association has to always be presentin the mind of consumers and it has to be a positive association. In contrast, if theassociation is negative it might be the result of celebrities’ bad activities/behavior.However, BCV is quite confident of having chosen the right celebrities who behaveseriously. They did long research with the help of internet before choosing them. Theyfirst looked at how people perceived these celebrities and how they were qualified inthe press. They also estimated the awareness of the celebrities on Google with theGoogle tools such as the blog search, and the web search which will sort out all therelevant articles about the celebrities. Before selecting them and presenting them tothe general management, Valérie Bastardoz met the three of them to know thembetter and evaluate the association with BCV. Of course, after BCV selected thesecelebrities, they still need to monitor and control their activities to avoid any kind ofcomplications.The choice of the C.E. strategy was also a strategic move of uniqueness towards thecompetitors, with the advantage of having a strong communication campaign thatenhances BCV’s values.The overall involvement of people was very positive and during the events people’sarousal was particularly high. For example, during the “20km” of Lausanne with the 72
  • 73. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009presence of Anne Richard as the “face” of the sponsor BCV, there was a highrecognition of the association between the brand and the personality. Indeed, BCVmade a post-test after the first launch of the campaign with Anne Richard and theresult was that a third of people identified her with the bank. This was a very positiveresult for the bank and meant a real success. The only negative point in this post-testwas the fact that people did not realize that she was also endorsing the wealthmanagement service. Valérie Bastardoz said that it is like asking people what is thecolor of the capsule that George Clooney is endorsing, or what is the Omega watchendorsed by Nicole Kidman. However, for Valérie Bastardoz, this was not a surprise,because it is about a specific detail. The association and the creation of people’awareness was what really counted.BCV did a research about perception of the C.E. strategy, which results are confidential,but globally Valérie Bastardoz said it is working very well.[Dernièrement, on a fait un évènement à Gstaad, où jouait Stan Wawrinka, et j’ai unclient qui me dit “Comment êtes-vous arrivé à trouver ce texte pour votre annonce avecStan ? Je trouve ça tellement juste ”. Donc, on voit que les gens sont très réceptifs à cettecampagne de personnalités. ] Valérie Bastardoz[Recently, we had an event in Gstaad, where Stan Wawrinka was playing, and a clienttold me “How did find such a text for your advertisement with Stan? It is so right.” So, itshows that people are receptive to the celebrities’ campaign.] (Translation)For the future of BCV’s campaign, a research might be done to enlarge the segmentrelated to companies. Indeed, maybe a personality with a more mature age could bean interesting complement for this strategy. However, it is only a possibility and it willbe answered in the future.The conclusion of Valérie Bastardoz about “the C.E. Effectiveness Model” is that it is aninteresting tool with a logic and clear method. However, she is certain that everythingdepend also on the communication team and its level, receptiveness, and capacity.From her experience in working in manufactured products, and now services, she alsothinks that there are two different approaches and that receptiveness will be different 73
  • 74. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009too.In fact, the service perspective is much different, specially in its relationalapproach to customer management (Grönroos, 2007). There is the creation of aspecific relationship between a company and its customers. This point is what mightchange in creating the celebrity endorsement concept. In the case of BCV, therelationship between the celebrity and the bank is created and pointed up in order toshow the importance of the relationship to the customers.According to her, the model is useful and could help people in becoming moresensitive to some factors. The measurement phase is also an important step; alsobecause of the costs of the campaign it is important to have a ROI.Valérie Bastardoz pointed out something importantthat we do not talk about duringthe interview: Internal Adhesion. She explained how people are proud of working witha company that uses personalities for its campaigns. They are motivated and thinkthat they might meet one personality in the company one day. When Thabo Sefoloshawent to BCV, everybody noticed him and people were happy. The internal adhesionand pride are really important within a company. This comment confirms Cotting’sfindings (2000). Indeed, he explains in his book with “the Sponsorship EffectivenessModel” that Sponsoring has a big impact on employees, even more than on clients,fans, and big mass. Therefore, we can either confirm this finding for celebrityendorsement.[L’adhésion interne. […] C’est un impact non négligeable. Je l’avais aussi vécu chezOmega. Quand vous avez Cindy Crawford qui vient à Bienne qui n’est pas vraiment laville la plus sexy, ou Pierce Brosnan, et que chaque employé en petit groupe peut se faireprendre en photo avec, c’est une motivation certaine.] Valérie Bastardoz[Internal Adhesion. […] It has a significant impact. I experienced it at Omega. When youhave Cindy Crawford at Bienne, which is not the most sexy city, or Pierce Brosnan, andthat each employee can take pictures in small groups with them, it is a real motivation.](Translation)This shows that it is not only about external communication but also internalcommunication. Employees need to be involved in what is going on within thecompany. Both are essential to create a successful communication campaign. 74
  • 75. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009OBSERVATIONSThe interview was really rich in information and contributed in the understanding of“the C.E. Effectiveness Model”. In fact, every success factor has to be well examinedand taken into consideration in order to evaluate the strengths, weaknesses,opportunities, and threats.Moreover, other factors that influence the whole model appeared during theinterview. Indeed, Valérie Bastardoz underlined the fact that a service or amanufactured product might have a different approach on the design-relatedinfluentials dimension. However, the other success factors would remain the same.She also pointed out that the communication team could influence the strategy on thecelebrity endorsement concept level, depending on its receptiveness and capacitylevel.Valérie Bastardoz considered important also the fact that the whole project of C.E.strategy has influence on Internal Adhesion, so on internal communication, which is avery motivating element. Based on these affirmations, some modifications,conclusions and suggestions will be given in the next section (See section 6.). 5.3 SWISS FARMERS’ UNION (SFU) HISTORY22The Swiss Farmers’ Union (SFU) faces the agricultural challenges of today with themaintenance of dialogue, the expression of opinions, and their protection. The farmersare confronted to a rude competition. In the beginning of this 21st century, the SFU ismore and more requested to guarantee fair revenues for the farmers’ family. The SFUis also committed in the quality of the production, as well as the production’smethods, and environment respect.In 199823, the Swiss farmer’s image was not perceived positively, because of politicbattles at that time. Therefore, a work on the Swiss farmer’s image was essential to22 www.agriculture.ch23 Press release : 75
  • 76. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009improve the image. This is the reason why a campaign was needed oriented in thelong term with a good slogan “Proches de vous. Les paysans suisses.” (Close to you.The Swiss farmers.).CELEBRITY ENDORSEMENT ACTIVITIES AT SFUThe Swiss agriculture tries hard to bind the ties with the overall population. Thefarmers’ families are willing to create a bridge between the urban and rural areas.Indeed, there is a real gap between them. Today, almost 75% of the Swiss populationlives in cities and suburbs. The Swiss farmers’ services are often overlooked andunderestimated, while they are benefiting our society and economy. With a newcampaign aimed at enhancing the farmers’ image, the agricultural sector wants topromote a mutual comprehension by showing the innovative farmers’ capacities.The communication and PR campaign is “aiming at improving the relationshipbetween the urban and rural population, at reinforcing trust in domestic agriculturalactivities and promoting agricultural product sales. Consumers must be made awareas to the origin of groceries and the efforts needed to provide top-quality products. 24”.This is the reason why celebrities were chosen to be the “face” of the campaign and tospeak out for the Swiss farmers. By using celebrities, the campaign had a great mediaattention immediately. Since 2006, this campaign has been renewed two more times,in 2007 and 2008. It was a huge success, thanks to its national media impact and thefame of the “faces” of the campaign.SFU’S CELEBRITIESFrom 2006 to 2008, many celebrities supported the Swiss farmers by wearing thetraditional farmer shirt with edelweiss flowers. Celebrities were from differentsectors: economy, sport, culture, and show business. They did not belong to thefarmer’s world and therefore they showed their support and the importance of thefarmers within the society. This campaign had benefit either for commercials,producers, and consumers.http://www.sbv-usp.ch/fileadmin/user_upload/bauernverband/Aktuell/Medien/PM_2008_fr/080724_USP_Eclairage_Campagne.pdf24 http://www.agriculture.ch/en/image/campaigns/print.html 76
  • 77. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The list of celebrities used in this three years campaign is very long (21 celebrities):2006 campaign: Michelle Hunziker, presenter Hansueli Loosli, Director of Coop Herbert Bolliger, Director of Migros Köbi Kuhn, football coach Johan Vonlanthen, football player Jean-Luc Bideau, actor Silvano Beltrametti, sportmanager Philippe Rochat, chef Patty Schnyder, tennis woman Otto Ineichen, manager2007 campaign: Michael Schumacher, racing driver of F1 Stéphane Lambiel, figure skater Michelle Hunziker, presenter Stephanie Glaser, actress Stephan Eicher, musician Noëmi Nadelmann, singer2008 campaign: Nadine Strittmatter, top model Patricia Schmid, top model Fabian Cancellara and family, racing cyclist Ursus, actress Nadeschkin, actor Stanislas Wawrinka, tennis manIn 2007, Michael Schumacher supported the importance of the grocery quality. Thiswas a shared opinion between all the celebrities participating at the campaign. Theywish that the farmers’ families succeed with the future challenges. 77
  • 78. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009For the launch of the 2007 campaign, 60’000 apple juices with the face of Schumacherprinted on it were distributed in the big train stations of Switzerland25.THE ACTIVITIES OF THE CAMPAIGNThe communication’s activities of the campaign were large. Indeed, it was not onlyabout celebrities’ posters, but there were also commercials on TV, events duringexpositions and fairs by diffusing information and maintaining the bound withpopulation, visits at schools, a brunch during the national day, visits at cowsheds,booklets, movies, and a website (www.agriculture.ch).Thanks to this huge communication campaign, the Swiss agriculture benefits of anexcellent image26 and the slogan27 calls the Swiss population’s attention.INTERVIEW WITH SANDRA HELFENSTEIN, DEPUTY HEAD ADMINISTRATIVE UNITCOMMUNICATION28Ms. Sandra Helfenstein kindly accepted to be interviewed about the celebrityendorsement strategies of SFU. She accepted to be recorded; therefore a full transcriptof the interview will be accessible (Appendix 15). The essential points of the interviewwill be shown and discussed in the following paragraphs.SFU approach towards testimonialsSFU decided to use celebrities in order to convey trust. In the previous campaignwithout celebrities, they promoted themselves their products and they talked aboutSwiss Farmers services as the bests. The problem was that they were sayingsomething about themselves. So, the idea behind the celebrities’ campaign was to usesomeone who would say something about SFU who would not be part of agriculture.They thought that this strategy would convey trust. Then, SFU decided to choosesomeone who was well-known in Switzerland, who was Swiss or at least living inSwitzerland, and who has nothing to do with the products and agriculture.25 Press release : http://www.sbv-usp.ch/fileadmin/user_upload/bauernverband/Aktuell/Medien/PM_2007_fr/070319_USP_Campagne.pdf26 Press release ibid. 22 (graph 1)27 Press release ibid. 22 (graph 2)28 Appendix 15 78
  • 79. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009[The goal was to give trustworthiness to the campaign through celebrities. We couldhave taken unknown people, but then nobody would look at the posters. ] SandraHelfenstein“The C.E. Effectiveness Model” – 10 success factorsThe main concept was to design a campaign to create awareness with the highvisibility of celebrities and to convey trustworthiness and credibility. The choice ofcelebrities was an important point because the campaign was targeted very largely toeverybody who does shop. The target was from 15 years to the maximum age, andparticularly families or women with family. So, the associated experience worlds had towidely known to get the attention of everyone. Then, it was important for SFU to linkthe message to each world experience and its celebrity. This is one aspect of themessage. There are other two aspects needed to insert in the messages. The first is toshow that they have good products, and the second is that Swiss agriculture has alsoother things than only products. It was important for SFU to make people aware thatfarmers contribute more to the Swiss population life. In order that this message wassent to a large target, SFU hung posters everywhere in Switzerland. There were alsoadvertisements in magazines. Press releases and press conferences were organized,also with the participation of some celebrities. Even, the “making-of” with somecelebrities was published in chosen magazines. A huge communication strategy wasdone with mass media.[Our goal was to choose celebrities who are known by almost everyone. Most of them arenot only nationally recognized, they are known quite by a lot of people. Even if noteverybody thinks that Michael Schumacher is a good guy, but they know him.] SandraHelfensteinThe initial idea was to begin with a celebrity endorsement campaign and then endingwith the same campaign but with unknown farmers. However, because of the success,SFU continued with celebrities as opinion leaders because it was workingextraordinarily well. The next round, after three years, will be the last one withcelebrities. Moreover, the next round will have not only celebrities but also “normal” 79
  • 80. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009people who will have the opportunity to apply in a contest. The reason of the stop ofthis celebrity endorsement campaign is the poor “supply” of celebrities willing toparticipate. Celebrities are very expensive, even if some of them did the campaign forfree. SFU used many celebrities because of their high visibility and because they werevery well-known, but SFU does not really monitor their activities for the reason that itis only a one-year contract. They chose not to monitor very closely.SFU had a very positive feedback in terms of brand image, involvement, and awareness.They did measurements which showed impressive results. Every two years, SFUmeasures the Swiss Farmer Image and since this campaign, there is a very positivedevelopment. Moreover, there was also a high involvement of the internal members ofSFU. In fact, the farmers are very glad and proud of the campaign. It was a veryimportant campaign for the internal communication enhancement, for internaladhesion.[For our internal communication, this is great. Everybody is asking who is next. Theyordered a lot of posters. In some regions, they also developed this campaign with localcelebrities and with the edelweiss shirt. ] Sandra HelfentseinOBSERVATIONSThe Swiss Farmers’ Union had a great approach towards the use of celebrities. As theyare not a product, but a union, the communication is essential and difficult. Gainingthe customers’ attention is a real challenge, which they successfully overcame byusing celebrities.Nowadays, many associations, unions, or commodities without a brand, are beingadvertised.In the United States, milk, as a general commodity with no brand, is being advertisedsince 13 years to create brand equity for milk. The strategy used there is CelebrityEndorsement. They already used 270 celebrities with “The milk mustache campaign”(Appendix 16). This campaign is a real success and is helping to improve the imageand awareness of milk. It is exactly what SFU is doing with their campaign: improvingthe Swiss Farmers’ image and awareness of what they represent in Switzerland. 80
  • 81. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The results are positive. This is truly a good strategy for their communication. Theresult in the future will certainly be a growth in the Celebrity Endorsement strategies.6. MODEL ADJUSTMENT AND SUGGESTIONSBased on Valérie Bastardoz’s affirmations (see section 5.2), some additional elementshave been inserted in “the C.E. Effectiveness Model” (Exhibit 18). As Internal Adhesionis essential within the company and is modified positively by the CelebrityEndorsement project, it was also essential to mention it visually in this model. Exhibit 18 Adjustment of “The C.E. Effectiveness Model” Own sourceInternal Adhesion is modified positively by C.E. Project because people feel theinvolvement of the project and pride of working in a company using personalities asthe “face” of the company. Therefore, these elements reinforce the adhesion and it 81
  • 82. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009gives a real motivation to the employees. Any campaign launched by a company willhave a high effect on its employees, because their involvement is very high. That is thereason why C.E. will have a high influence on employees’ attitude/image andespecially on behavior. In the case of BCV and SFU, the employees’ attitude/imagechanged and leaded to a very positive behavior: Internal Adhesion.According to Valérie Bastardoz, and to Sandra Helfenstein (SFU), this is a meaningfulelement and should be taken into consideration when doing a C.E. strategy. SandraHelfenstain affirmed that this campaign was very good for their internalcommunication, meaning the communication with Swiss farmers.This is one more positive element to add in the “Pros list” of doing a C.E. strategy.Therefore, we have two significant expectations in terms of behavioral changes withthe creation of a C.E. strategy: (1) Behavioral intent of consumers; (2) InternalAdhesion.In order to do the interviews, some questions were developed for each success factor.These questions might be useful during the creation and development of the successfactors and can be used as questions guidelines. That is the reason why they can beintegrated in the questionnaire for the first phase of C.E. strategy, the definition phase.The ten success factors will now be presented with one or more definition questions.DESIGN-RELATED INFLUENTIALS 1. Celebrity Endorsement Concept Why choosing a C.E. strategy? (differentiation, reinforcement, repositioning, enhancing customer relationship, exclusiveness, extension to other markets, enhancing communication and image, identity issue?) How will the C.E. strategy have effect? What is the general idea/concept? 2. Associated Experience World 82
  • 83. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 What associated experience world do we want to associate with our brand/product? How many associate experience worlds do we want to exploit? 3. Design/Creativity of C.E. messages What is the message we would like to send to receivers? Is the message linked to the celebrity?MEDIA-RELATED INFLUENTIALS 4. Mass Media What kind of communication do we use? Which communication channel do we use? 5. Opinion Leaders As celebrities are already doing the opinion leaders’ role, do we need other opinion leaders? 6. Activities from competitors and celebrity (private/professional) What are our competitors’ marketing strategies? What are our celebrity’s activities on both private and professional sides? For how long do we need to monitor their activities?PSYCHOLOGY-RELATED INFLUENTIALS 7. Experience World/celebrity What is the position of the receivers towards the associated experience world we are using? Do we cover the target we want to reach? (related to success factor 10) 8. Company (brand/product) What is the position of the receiver towards the brand/product? 9. Celebrity Endorsement What is the position of the receivers towards C.E. strategy? (negative/positive) 10. Receiver What is the target we are aiming at? Do we cover the target we want to reach with the celebrity? 83
  • 84. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009From Sandra Helfenstein (SFU) point of view, it is essential to define success factorsfollowing main questions during the definition phase. She agreed in inserting thesequestions as guidelines in the questionnaire, while doing the “What/Why” definition(Exhibit 19). Exhibit 19 Questionnaire example for one success factor, with insertion of definition questions FACTORS WHAT? / WHY? SWOT Why choosing a C.E. STRENGTHS: strategy? (1) CELEBRITY ENDORSEMENT CONCEPT How will the C.E. strategy WEAKNESSES: have effect? What is the general OPPORTUNITIES: idea/concept? THREATS: EVALUATION OF Planned Status Actual Status THE FACTOR (1-6 Likert Scale) Celebrity Endorsement Strategy CHECKAnother adjustment done in the model (Exhibit 18) is the logical sequence of thesuccess factors. For a reason of coherence, it is better to begin from the “celebrityendorsement concept” and then go to the “associated experience world”. In fact,during the interviews, the concept was always first discussed.7. General Conclusions“The Celebrity Endorsement Model” seems to really frame the companies’ needs andexpectations about the creation of a campaign with celebrities.This model is aimed at examining and organizing every success factor of the C.E.strategy in order to reach an increased knowledge of each of them. The reason of theclose examination of each success factors is because of their influence on the overallC.E. project. 84
  • 85. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The suggestions given in this thesis are based on findings from exploratory researchand are aimed at making C.E. strategy the more effective as possible.As emerged during the interviews, companies seem oriented to accept such a toolkitto guide the overall strategy. In fact, interviews confirm the implication of the successfactors for the achievement of an effective C.E. campaign. The model gives a step-by-step approach so that companies can build carefully the strategy without letting apartanything. With the help of the questionnaire, it will be easier to consider all theessential points.Hypothesis I of this thesis was that celebrity attributes were not the only successfactors used to reach the effectiveness of a C.E. campaign. This hypothesis has beenconfirmed through theory, but also through the interviews. Ten success factors havebeen discovered, and celebrity attributes are only a tiny part of one success factor(Celebrity Endorsement Concept). The ten success factors need to fit together, whichresponds to the hypothesis II. And finally, each success factor has to be monitoredduring the implementation and controlling phase in order to have a highereffectiveness (Hypothesis III).Measurement tools were also proposed with the questionnaire to check the strategyimplementation success.The choice of a C.E. strategy has many effects on the overall company at a corporatelevel but also at a human level.The corporate level is the main focus. The association of a brand/product with acelebrity is a decisive choice because it can change everything. The outcome of thisassociation has to be well designed in order to generate positive responses. If theoutcome is wrongly interpreted, it might have very negative effect on thebrand/product or even the overall company might suffer from such a mistake.Therefore, it has been proved and showed that such a strategy takes time, and costsmoney. Time is essential to build a C.E. strategy because every step has to be analyzedcarefully, each dimension has to be taken into consideration, and each success factor 85
  • 86. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009needs to be well identified. Despite all time and money spent, C.E. is generallyworthwhile and not that risky if well conducted.However, the human level is also quite involved. Indeed, everything depends on thecommunication and marketing team’s vision and work, which has also influence onthe other employees. If a good communication campaign is created, then employeeswill feel positive and proud of working for the company. Internal adhesion can bestrengthened through C.E. strategies. This is a very good outcome in terms of internalresponses.The work on this subject showed that having a celebrity endorsing a product is not aneasy work. Everything has to be well evaluated before beginning to work with acelebrity. Moreover, coordination of each factor is vital to get to a realaccomplishment with a real meaning. People need to believe in the associationbetween the brand/product and the celebrity. This is a challenge for marketers whichcan be overcome with planned and careful work. Here is the raison dêtre of thisthesis: Try to give a complete model of the overall Celebrity Endorsement strategy sothat companies can plan the strategy correctly and carefully.The future of Celebrity Endorsement strategies will certainly be positive. The use ofthis strategy will grow more and more, because it is simply working. 86
  • 87. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 VII. APPENDICESAppendix 1: Joe Louis endorsing in 1983 the General Electric TV 87
  • 88. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 2: David Beckham, the sportsman and businessman, endorsing many brands 88
  • 89. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 3: Marilyn Monroe endorsing Westmore Hollywood CosmeticsAppendix 4: New Gillette endorsed by Tiger Woods, Roger Federer, and Thierry Henry 89
  • 90. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 5: The Management Circle (Cotting)Appendix 6: The Sponsorship Market Model (Cotting) 90
  • 91. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 7: The Sponsorship Effectiveness ModelAppendix 8: Celebrity Endorsement Strategy CHECK, Questionnaire 91
  • 92. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 FACTORS WHAT? / WHY? SWOT STRENGTHS:(1) ASSOCIATEDEXPERIENCE WORLD WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) STRENGTHS:(2) CELEBRITYENDORSEMENTCONCEPT WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) 92
  • 93. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 STRENGTHS:(3) DESIGN/CREATIVITY OFCELEBRITYENDORSEMENT WEAKNESSES:MESSAGES OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) STRENGTHS:(4) MASS MEDIA WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) 93
  • 94. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 FACTORS WHAT? / WHY? SWOT STRENGTHS:(5) OPINION LEADERS WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) STRENGTHS:(6) ACTIVITIES FROMCOMPETITORS ANDCELEBRITY(private/professional) WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) 94
  • 95. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 FACTORS WHAT? / WHY? SWOT STRENGTHS:(7) EXPERIENCEWORLD/CELEBRITY(involvement, WEAKNESSES:arousal) OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) STRENGTHS:(8) COMPANY(BRAND/PRODUCT)(perception,image) WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) 95
  • 96. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009 FACTORS WHAT? / WHY? SWOT STRENGTHS:(9) CELEBRITYENDORSEMENT(perception, image) WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) STRENGTHS:(10) RECEIVER(demographics,psychographics) WEAKNESSES: OPPORTUNITIES: THREATS:EVALUATION OF Planned Status Actual StatusTHE FACTOR(1-6 Likert Scale) 96
  • 97. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 9: Swatch Proteam, Beach Volley World TourAppendix 10: 007 Villain Collection: Elektra King’ Swatch, alias Sophie Marceau 97
  • 98. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 11: Mat Rebeaud’s blog (http://www.matrebeaud.com)Appendix 12: Swatchblog (www.swatchblog.fr/news/swatch-special-mat-rebeaud.html) 98
  • 99. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 13: BCV’s Celebrities 99
  • 100. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Appendix 14 : Interview with Valérie Bestardoz, Head of Communication at BCV(05.08.09)Pourquoi avez-vous choisi une C.E. strategy chez BCV ?Alors, ça s’est fait par étapes. Contrairement à ce qu’on peut penser, puisque voussavez que j’ai travaillé chez Omega, vous vous dites « tiens elle a voulu répliquer lamême stratégie ». Non, ce n’est pas ce qui s’est passé. On a eu toute une démarche parrapport à la communication. Et au départ, si vous regardé la première campagne qu’ily avait avec Anne Richard, elle était spécialement axée sur la gestion de fortune cheznous. Et puis, c’était de dire mais comment est-ce qu’on peut trouver unesystématique pour une campagne pour aider à faire connaître la gestion de fortune àla BCV. Et puis, sur la base de différents concepts qui ont été présentés à la directiongénérale, la direction générale a dit « oui le concept global nous plaît, mais plutôt qued’avoir une personne qui n’est pas forcément connue, on va plutôt se concentrer surdes personnalités ». Donc très clairement après par rapport à notre identité vaudoise,puisque en 2006 avec un chantier qui a commencé fin 2005, on avait toutrepositionné ; les valeurs de la banque puisqu’on a tout refait notre branding autantau niveau d’un relookage de logo, tout le réseau de nos agences (près d’uneseptantaine d’agences), et tout ce qui est aussi publications. C’est donc dans cettecontinuité que tout s’est développé.En effet, j’avais lu dans un des rapports de 2005 que c’était surtout pouraugmenter l’image et la relation avec le client.Tout à fait, donc on a toujours et on va toujours travailler avec des personnesVaudoises, ou qui sont nées dans le canton et qui se sont développées dans le cantonou à l’extérieur, ou on pourrait envisager peut-être une personnalité qui n’est pas néedans le canton mais qui aujourd’hui rayonne très fortement.Donc, cela ne va pas s’arrêter aux trois personnalités du moment ?Rien n’est déterminé pour aujourd’hui.À partir du model « The C.E. Effectiveness Model », que je vous ai au préalableexpliqué, je vais vous poser des questions qui vont suivre les dix « successfactors ». 100
  • 101. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Donc le premier « success factor » est « Associated Experience World ». ChezBCV, on voit trois mondes différents : le cinéma, le tennis et le basket. Commentêtes-vous parvenus au choix de ces trois mondes différents?Pour nous, l’objectif principal c’était acquérir une image de marque et de soulignernotre notion de professionnalisme et de proximité tout en gardant un capitalsympathie important, puisque la Banque cantonale BCV c’est la banque de tous lesVaudois et les Vaudoises. Mais c’est la banque des particuliers, des entreprises,puisque c’est une banque qui est ce qu’on appelle universelle, c’est-à-dire qui sertd’une part les particuliers pour les besoins quotidiens. Mais c’est également la banquedes entreprises, que ce soit pour financer l’achat de matières premières, maiségalement pour les besoins quotidiens de toutes les entreprises. Mais c’est égalementdes services particuliers comme la gestion du deuxième pilier, le trade finance. On estvraiment une banque complète. Donc on balaye très large. Donc par rapport à ça, onavait un objectif de se dire qu’il faut qu’on ait des personnalités aussi qui soient d’unepart connues, et qui soient reconnues. Puis après, il y a un facteur pour moi qui esttrès important, c’est que ce soit des personnalités qui restent dans nos valeurs, malgréleur succès dans leur activités, humbles et pas show-off. On a commencé avec AnneRichard, qui entre tout à fait dans cadre là. C’est quelqu’un qui a réussi qui est à Paris,qui joue d’une part au théâtre, mais qui est également dans des séries télévisées. Çafait plus de cinq ans qu’elle est dan la même série télévisée, donc ce n’est pas non plusquelque chose de commun, vu qu’on voit que les séries de télévision partent de plusen plus vite. Pour nous, ce qui est très important, c’est que ces personnalités soientutilisées dans le cadre de nos publicités, mais également dans le cadre d’évènements,ou dans un évènement auquel on participe en tant que sponsor où on amène notrepersonnalité, pour d’une part partager un moment intime avec nos clients, ou alorsdans un évènement qu’on monte complètement pour notre clientèle.La deuxième question, liée au facteur « celebrity endorsement concept »,auquelle vous avez déjà répondue, était sur l’idée, le concept initiale de lastratégie.En effet, j’y ai déjà répondu.La troisième question est sur le message que vous avez voulu envoyé. 101
  • 102. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Donc Anne Richard dit « Les bons choix apportent la sérénité » ; Stan Wawrinka« La confiance, le plus précieux des partenaires » ; Thabo Sefolosha « C’est sur leterrain qu’on fait la différence ». Ce sont trois messages différents, troispersonnalités différentes. Quel a été le message principal que vous vouliezpasser ?Comme on l’a dit tout à l’heure, pour nous ce qui est vraiment important c’est demettre ce professionnalisme et cette proximité en avant. Après, ça a été une discussionavec les trois personnalités et de dire par exemple pour Anne Richard « mais qu’est-cequi vous a permis d’arriver à ce niveau et d’être connue ? ». Anne Richard a doncrépondu « c’est au fait de faire des bons choix ». Donc ça a été pour elle d’accepterBoulevard des Palais, accepter au théâtre certains choix. On a donc parlé de choix. Etc’est vrai que quand on choisi son établissement bancaire, c’est aussi un choix etquand on a confiance en son banquier, on a une certaine sérénité. Il fallait donctrouver un langage qui s’applique dans leurs vies professionnelles, mais qui s’appliqueégalement dans le choix de l’établissement bancaire. Quand on a discuté avec StanWawrinka, il venait de gagner sa médaille olympique en double. Donc de nouveau parrapport à ça, c’était d’avoir confiance en son partenaire. Et la même confiance seretrouve avec son banquier. Thabo Sefolosha en jouant, plus il a des minutes de jeu,plus il a des chances de démontrer ses capacités. C’est un peu plus la preuve par l’acte,car c’est la gestion quotidienne de son portefeuille qui va démontrer qu’on peut fairela différence.Quel type de message avez-vous donné au média et quel type de média avez-vous utilisé pour envoyer votre message ?Il faut savoir déjà qu’on a un média qu’on va sortir automatiquement, la télévision,puisqu’on a une trop forte déperdition si on va sur l’échelle nationale parce qu’on vacouvrir tout de suite toute la Suisse Romande. Ce qu’il faut savoir c’est que toutes lesBanques Cantonales, 24 Banques Cantonales en Suisse, font parties de l’UBCS – l’Uniondes Banques Cantonales Suisses – et au sein de cette union, on fait une campagne quis’appelle « Grandir ensemble ». Cette campagne est spécialement diffusée à latélévision. De facto, la télévision à niveau nationale n’est pas utilisée. Après, on autilisé tous les médias qui sont à notre disposition, que ce soit le web, l’affichage, le 102
  • 103. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009print au niveau quotidien, magazines, mais également toute la PLV dans tous lespoints de vente, les écrans bancomat, publications internes. Cela a été le pluslargement possible.On parle de « opinion leaders », et dans ce cas, les trois célébrités sont déjà desopinion leaders. Avez-vous pensé à d’autres opinion leaders ?Pour le moment, on est sur ces trois personnalités puisqu’on a cherché des personnesqui étaient actives dans des secteurs différents, même si on retrouve deux sportifs etquelqu’un plus dans le culturel. Ce qui est très important quand on choisi des opinionleaders, c’est qu’ils soient respectés pour ce qu’ils sont, mais qu’ils n’aient pas uneopinion qui soit complètement différente de la notre. Il y a donc des personnalités quin’entrent pas du tout en ligne de compte. Tout ça est un travail qui est difficile, parcqu’il faut que les personnalités aient les mêmes valeurs que notre établissement parceque c’est la base de toute publicité de communication. La première chose, il ne fautpas être trahi. Deuxièmement, pour nous c’est important quand on parle de marque,parce qu’on fait c’est un travail de la marque BCV globalement. Quand on dit, voilà il ya une marque vous inspire-t-elle une image ? Aujourd’hui, est-ce qu’un hommepolitique est une marque ou est juste une personnalité ? On n’en sait rien avec lamédiatisation. Quand les gens évoquent BCV, ils doivent avoir une image en tête. Çapeut être ou l’image d’une des trois personnalités, parce qu’ils sont peut-être trèsattachés à un des sports, une des activités, et c’est quelque chose de très positif. Il fauttoujours générer quelque chose de positif et c’est pour ça que ça doit être dans nosvaleurs. Quelqu’un qui serait très connu dans le canton, mais qui serait quelqu’un detrès show-off qu’on va faire toutes les foires, ce n’est pas quelqu’un qui nousintéresserait, même si c’est quelqu’un qui a une médiatisation très puissante.L’association doit être toujours là. On veut que quand les gens pensent à StanWawrinka pensent à la BCV et que quand ils pensent à la BCV qu’ils pensent à StanWawrinka. Il faut que l’association soit toujours là.Pour avoir travaillé chez Omega, il y a eu des cas très difficile, surtout quand on est àun niveau international. Il y a toujours une personnalité qui un jour ou l’autre setrouve dans des mauvaises situations. J’avais eu le cas où j’avais un pays quim’envoyais des coupures de journaux, où l’on voyait l’une des personnalités entourée 103
  • 104. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009de cannettes de bière sur la plage, dans un état un peu comateux. Et ça c’est uneproblématique de travailler avec des célébrités. Cela est aussi une problématique quel’on n’a pas avec les trois personnalités car ce sont des personnes très sérieuses.On arrive maintenant aux activités de la concurrence, mais aussi aux activitésdes célébrités professionnelles ou privées, auxquelles vous venez de répondre.Avez-vous un certain « contrôle » régulier pour être au courant des activités despersonnalités ?Ça se fait un peu en amont. Quand on pense à une personnalité, on fait une rechercheaujourd’hui avec internet. On a donc pu d’abord regardé comment ces personnesétaient perçues et qualifiées dans la presse. Mais surtout qualifiées dans la presse, carla perception on peut le faire à l’interne. On peut voir aussi la notoriété en faisant desappels sur google. Puis après, toutes les célébrités je les ai rencontré une voir deuxfois avant de les proposer à la direction générale pour s’assurer justement qu’on setrouvait face à quelqu’un qui semblait bien partager nos valeurs. Je dis bien semblait,car ce n’est pas en deux fois qu’on va vraiment cerner la personnalité de quelqu’unmais on peut avoir quand même une certaine perception. Après, le deuxième point quiétait important pour nous c’était de se dire « est-ce qu’on va pouvoir monter unévènement avec cette personne ? est-ce que c’est quelqu’un qui va être à l’aise si on leregroupe avec certains de nos clients ? ». Après avoir évaluer ces deux points, c’estdonc des personnalités qui ont été présenté plus loin. Et après, évidemment on suit lesactivités.Par rapport à la concurrence, avez-vous examiné la stratégie de la concurrenceavant d’arriver à la conclusion d’utiliser des personnalités ?Oui, en fait ça s’est fait quand on a vraiment fait cette phase dont je vous parlais audépart. On s’est rendu compte que si on arrivait à avoir quelqu’un, on avait aussi uneunicité au niveau de la communication et que ça mettait vraiment nos valeurs enavant, cette particularité vaudoise, en ayant aussi des personnalités qui ne sont pasactifs uniquement dans le canton et donc on peut aussi les faire sortir vu qu’ils ont unenotoriété en-dehors.Quel a été la participation, l’engagement des clients envers les trois mondes ? 104
  • 105. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009La première chose que je peux vous dire c’est que lors de différents évènements, parexemple avec Anne Richard (20Km), les gens associent à la banque la personnalité. Ilsdisent « ah, il y Anne Richard, c’est parce qu’il y a la Banque qui est là ». On voit doncque cela fonctionne bien. On avait fait, très peu après la première vague de campagneavec Anne Richard, un post-test et on voyait que déjà près d’un tiers les gensl’identifiait avec la banque et l’avait vue. Ce qui était très positif. Par contre ce quil’était moins, mais qui n’était pas vraiment pour moi une découverte, parce que c’étaitplus une réflexion professionnelle, c’était de dire « est-ce que les gens avaient vuqu’elle proposait la gestion de fortune ?». Mais on arrive dans une granularité qui esttrès difficile. C’est comme si je vous dis, de quelle couleur est la capsule de Nespressode George Clooney ? Personne ne peut vous répondre. Si vous dites quelle est lamontre Omega de Nicole Kidman, peu vont pouvoir vous le dire, mais ils ont remarquéque l’association était l, ce qui est déjà beaucoup. À chaque campagne, on mettait unbusiness en avant puis on est venu sur quelque chose de beaucoup plus institutionnel,car c’est vraiment tout l’établissement, la marque qui est travaillée. Après chacun va ledécliné pour ces propres besoins. En fonction de la typologie de la personne, on voittrès bien que par exemple Thabo Sefolosha va toucher beaucoup plus un public jeuneque quelqu’un comme Anne Richard. La personnalité plus mixée est Stan Wawrinka.Ce que je peux vous dire encore, c’est qu’on a fait une étude pour voir la perceptionpour savoir si les gens l’ont remarqué. Je ne peux pas vous donné les résultats endétail, parce que rien n’est d’une part public et d’autre part n’est pas arrivé à ladiffusion de la direction générale, mais globalement, ce qui n’est pas non plus unesurprise pour l’avoir expérimenté ailleurs, ça fonctionne.Quel est la position/image/perception des clients envers BCV avec cettecampagne ?Dernièrement, on a fait un évènement à Gstaad, où jouait Stan Wawrinka, et j’ai unclient qui me dit « comment êtes-vous arrivé à trouver ce texte pour votre annonceavec Stan, je trouve ça tellement juste ». Donc, on voit que les gens sont très réceptifs àcette campagne de personnalités.Quel a été la perception par rapport à l’utilisation de C.E. strategy pour unebanque telle que la BCV ? 105
  • 106. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Cela a été vu plutôt positivement. Les quelques remarques qu’on a eu c’était des gensqui disaient qui avait pas mal vu Anne Richard, première personnalité utilisée, et quivoulaient d’autres personnalités. Ce qui est normal, parce qu’il y a toujours uneproportion de gens qui l’ont beaucoup vu et une autre proportion qui ne l’a pasvraiment encore captée, donc il faut toujours bien répéter le message. Mais sinon, desremarques négatives du style « pourquoi vous avez choisi cette personne, c’est pasquelqu’un de respectable… » absolument pas.Nous avons déjà parlé des segments que vous vouliez toucher, mais êtes-vousréellement arriver à toucher tout le monde ou est-ce qu’il vous manquerait unepersonnalité pour acquérir un autre segment ?Il est clair que si on parle peut-être un peu plus d’un segment lié aux entreprises, peut-être quelqu’un d’un âge un peu plus mûr pourrait être un complément intéressant.C’est des questions qu’on se pose. On va voir comment est-ce qu’on y répond etquelles seront les possibilités pour le future.Nous avons fait le tour de tous les facteurs à succès. Maintenant, pensez-vousqu’un modèle de ce genre pourrait être utile à la réalisation d’une C.E. strategy,ainsi qu’à son évaluation ?En effet, ce que vous avez fait je trouve intéressant. Tout va dépendre des personnesqui s’occupent au fait de la communication, du niveau qu’ils ont et de la réceptivité quiont. Je pense que, pour aussi avoir travaillé dans les produits manufacturés etmaintenant travaillé dans le service, il y a une grosse différence de l’approche. Donc, jepense qu’il peut y avoir des réceptivités différentes, par contre la méthode est logique,claire et je pense qu’en effet ça peut être intéressant. Ça peut sensibiliser les gens surcertain points.Il est très important de mesurer le résultat, parce que forcément par rapport à unecampagne normale, il y a des coûts différents, donc c’est important de s’assurer qu’onretrouve un retour sur l’investissement. On sait bien que la communication n’est pasune science exacte. Donc je dirais quand on travaille dans des secteurs commel’horlogerie, les gens sont conscients de l’image et savent que sans image on n’arrivepas à pénétrer le marché. Dans la banque c’est un petit peu différent, parce quel’expérience client est très importante. Donc c’est un mélange des deux et c’est de bien 106
  • 107. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009comprendre que l’un amène à l’autre. Et puis, il y en a un qui va aider l’autre, mais il ya une grosse interdépendance. Tout ça doit être très bien analysé pour que tout lemonde soit à l’aise par rapport à ce qui se fait.Il y a une chose qui par contre ne figure pas dans votre questionnaire mais que jepense est important d’aborder, c’est l’adhésion interne. Lorsque vous travaillez avecdes personnalités, les gens sont fiers de dire « je travaille dans la banque…ah et si unjour il vient à la banque et j’ai la chance de le croiser ». C’est un élément qui est trèsmotivant. Notamment, Thabo Sefolosha est venu une ou deux fois et tout le monde leremarque car il a plus de deux mètres et passe de loin pas inaperçu. Même quelqu’uncomme Stan Wawrinka, c’est quelqu’un qui touche beaucoup à tous les niveaux. Etcela est très important pour l’adhésion, la fierté à l’interne et c’est quelque chose quiest très porteur. C’est un impact non négligeable. Je l’avais aussi vécu chez Omega.Quand vous avez Cindy Crawford qui vient à Bienne qui n’est vraiment pas la ville laplus sexy, ou Pierce Brosnan, et que chaque employé en petit groupe peut se faireprendre en photo avec, c’est une motivation certaine.Appendix 15 : Interview with Sandra Helfenstein, Deputy Head Administrative UnitCommunicationWhy did you use a C.E. strategy for the SFU’s communication campaign?The reason is quite simple. Normally, what we did for our campaign is to say that “weare great”, that “our products are so good”. So “we” are saying something about us. Wethought it would be more trustful if somebody else, who has nothing to do withagriculture, would tell something about our services and our products. So, this is theidea behind the campaign. We thought if we can take somebody who is known in allSwitzerland and has nothing to do with the products then it would be great. Peoplewould believe. The goal was to give trustworthiness to the campaign throughcelebrities. We could have taken unknown people, but then nobody would look at theposters.How did you choose all the different associated experience worlds? Do youthink that such a number of celebrities could have confused people? 107
  • 108. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009The main problem is that our target is really big. We want to talk to people who aregoing to shop. So this is from 15 years old till death. Main target group is between 25-50 years old, families or women with family. So, we thought as our target is so big thatwe have to choose different experience worlds to catch the attention of everybody.That is the reason why we have many celebrities. But it is probably quite a lot. Thesecond point is that we do not decide all the worlds we have. We asked a lot ofcelebrities, and some of them said yes. So, we had also to take what we get. And if youhave a yes from a person who is quite known, it is hard to say no. We chose who do weasked, but we asked a lot more than we had.You already talked about the C.E. concept/idea, so let’s go to the third successfactor.Yes.The third success factor is about the design and creativity of the C.E. messages.You have different messages from different celebrities. What was the messageyou wanted to send? Were the messages linked to the celebrity?Yes, this was one. We chose some sentences which have something to do with thecelebrity and with what she/he does. Our main message was to tell that we have goodproducts, and that Swiss agriculture gives a lot of things than only products such aslandscape, and remote areas which are still living, and so on. So, these three thingswere the main message: link with celebrity, good products, and different servicesoffered by Swiss agriculture, because people are not aware. They just link farmers toproducts. They do not do the link that the landscape is made by farmers also. So, wewanted also to do this message. But the main thing was to let them say somethingwhich showed involvement with what the person is doing.What kind of communication did you use with mass media and what did you useas channel, only posters or more?We made advertising in magazines, and posters. We made a press conference to startthe campaign, where some of the celebrities were present. Each, when we began withnew celebrities, we published a press release to communicate. And sometimes, we didalso photographs of their “making of” with the celebrities and we offered them tosome chosen magazines. 108
  • 109. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Celebrities are already opinion leaders, with people that already follow themwith their activities. Did you think of other opinion leaders, other thancelebrities?Yes, the initial idea was to begin one year with celebrities and then change to farmers.But until now we did not do it. Because the first year we made this campaign, it was abig success. So, we thought it was a little pity if we stop here and change to unknownfarmers. So, we continued and we tried to find other celebrities. We continued threeyears. Now, we remark that it is becoming difficult to get new celebrities on the samelevel. We will try now to make one another round and we will take also “normal”people. We will do a contest with probably Blick. It will do an announcement wherepeople can apply to get on a poster. So, we will have new celebrities but also peoplewho applied on this contest. We will have both.The sixth factor is about the activities from competitors. Well, you don’t havecompetitors. But it is also about the celebrities’ activities. Do you monitor theiractivities?Yes, not all very close, but for example Fabian Cancellara was doing well, we made anannouncement on posters with “congratulations from the Swiss Farmers”. We try toaccompany only the positive things. The same thing for Stéphane Lambiel.But do you monitor other activities that might have negative influence on thecampaign?We go with them for one year. So, we have these posters hanging all around. And ifthere is something negative, we cannot change. We don’t go on with the same persons,so we think we can’t react. So we don’t monitor too close. But if we see somethinggood, we make it valuable.Now, we have the creation of C.E. stimuli by the receivers. What are thepositions of the receivers towards these experience worlds? Did it cover all thesegments you were looking for? Or do you still have the need to cover othersegments?Our goal was to choose celebrities who are known by almost everyone. So, we thinkthat we have covered everything globally. Most of them are not only national, they are 109
  • 110. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009known quite by a lot of people, even if not everybody thinks that Michael Schumacheris a good guy, but they know him.Do you have positive feedback of the campaign in terms of brand image?We have a study, where we ask people if they saw the campaign, if they rememberedwho was endorsing, and if the person was nice or not. This was quite impressive forus. We recognize that lot of people has seen Michael Schumacher, but they also saidthey do not like him. The most successful celebrity was Michelle Hunziker becauseshe was very often seen, remembered, and friendly.What about the perception of receivers towards such a strategy for SwissFarmers’ Union?Within our members it is positive. Our farmers are very glad, almost every farm hasposters and they have put it on everywhere. They like it a lot, because for them it’spride. They are proud that persons like this are doing publicity for Swiss farms. Forour internal communication this is great. Everybody is asking who is next. Theyordered a lot of posters. In some regions, they also developed this campaign with localcelebrities and with the edelweiss shirt.You already answered to my last success factor, the target.Yes.Do you think that such a model would be useful for a company?I think yes. The most important is to look at the factors. For example, what should Ilook at when we talk about experience world? Does the celebrity represent/fit yourproduct? Even if in our case, it was a bit different because our aim was to take personsthat had nothing to do with agriculture. The model is a good thing if you show thefactors you have to look at.How can you measure the results in terms of sales for the farmers?What we measure, every two years, is the image of the Swiss Farmers. The only thingwe do is trying to improve the image of Swiss agriculture. The development is verypositive. Some years ago, 15-20 years ago, people thought of agriculture was quitenegative. Now, it is quite positive. Most of them now really appreciate. But it is difficultto say if it is only because of this campaign. There are also other organizations such asSwiss Milk. 110
  • 111. UNIVERSITY OF LUGANO BEYOND THE EFFECTIVENESS OF CELEBRITY ENDORSEMENT 2009Talking about milk, do you know the “Mustache Milk” campaign done in US?No.They are doing what you are doing with celebrities since 13 years and alreadyused 270 celebrities.But they have more celebrities.The campaign is really well working in US. The image of drinking milk isimproving a lot. It is like the image of the farmers.Yes. We tried to improve the image. And also we tried that when people are in thestore that they make a little more attention from where the product is. It is ok if theybuy some cheese from France, but if they are aware that there is an equal product, wetry to make them prefer the Swiss product.Is the nationality of the celebrity important?Yes, very important. Only Swiss or people who are living in Switzerland.Appendix 16 : The milk mustache campaign 111
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