ialci law of luxury goods & fashion series –
22 July 2014
What to do when
celebrities get it all
wrong? How brands can
pro...
2
Celebrity endorsement: time-tested tradition with
advertisers
What to do when celebrities get it all wrong? How brands c...
3
So what’s the big deal?
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged re...
4
Kate Moss’ coke fiend
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged repu...
5
Luis Suarez’s biting habit
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged...
6
Tiger Woods’ womanizing & subsequent messy divorce
What to do when celebrities get it all wrong? How brands can protect ...
7
Are luxury & fashion brands really affected by endorsers’
misbehavior?
What to do when celebrities get it all wrong? How...
8
Threat of a serious hit on sales volumes!
What to do when celebrities get it all wrong? How brands can protect themselve...
9
Risk especially high in largest luxury-consuming countries
What to do when celebrities get it all wrong? How brands can ...
10
Other reasons brands may terminate a celebrity
endorsement?
What to do when celebrities get it all wrong? How brands ca...
11
It does not fit the bill, babe!
Ambassador’s overexposure
by constant appearance &
overshadowing of the brand
Lack of c...
12
So what can luxury & fashion brands do to avoid being
affected by endorsers’ misbehavior?
What to do when celebrities g...
13
The winning formula for
an endorsement deal
CELEBRITY
ENDORSEMENT
DUE
DILIGENCE
CONTRACT
TERMS
INSURANC
E
ONGOING
MONIT...
14
Perform due diligence on proposed endorser
•Research whether proposed celebrity has done or said anything
in the past t...
15
The importance of getting the right match
•Choose celebrity endorsers who align with values
represented by brand
•Choos...
16
Protective & thoughtful contractual terms
ENDORSEMENT
CONTRACT
MORAL
S
CLAUSE
DISCLOSURE
NO DEFAMATION
NO PUBLIC DISREP...
17
Insure yourself!
• Death, disability and disgrace insurance policies
• Emergence of several insurance products to addre...
18
Ongoing monitoring (offline & online)
• Measure the impact of traditional media and digital media
• Monitor the press, ...
19
Pre-planned ‘crisis management’ media strategy
• Gain control over how a damaging story is handled
• Establish whether ...
20
Conclusion
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ sp...
21
ialci law of luxury goods series @ Pullman London St
Pancras:
What to do when celebrities get it all wrong? How
brands ...
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How to market fashion & luxury products through celebrities & music bands: endorsement contracts, product placement & publicity rights

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How brands can protect themselves when celebrities misbehave or breach the terms of their endorsement deals? What behaviour is deemed legitimate or not? Are these misbehaviours of brand ambassadors really impacting the brands?

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  • How to market fashion & luxury products through celebrities & music bands: endorsement contracts, product placement & publicity rights

    1. 1. ialci law of luxury goods & fashion series – 22 July 2014 What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    2. 2. 2 Celebrity endorsement: time-tested tradition with advertisers What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    3. 3. 3 So what’s the big deal? What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    4. 4. 4 Kate Moss’ coke fiend What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    5. 5. 5 Luis Suarez’s biting habit What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    6. 6. 6 Tiger Woods’ womanizing & subsequent messy divorce What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    7. 7. 7 Are luxury & fashion brands really affected by endorsers’ misbehavior? What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    8. 8. 8 Threat of a serious hit on sales volumes! What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    9. 9. 9 Risk especially high in largest luxury-consuming countries What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    10. 10. 10 Other reasons brands may terminate a celebrity endorsement? What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    11. 11. 11 It does not fit the bill, babe! Ambassador’s overexposure by constant appearance & overshadowing of the brand Lack of coherence between the celebrity’s personality & the brand’s value & image What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    12. 12. 12 So what can luxury & fashion brands do to avoid being affected by endorsers’ misbehavior? What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    13. 13. 13 The winning formula for an endorsement deal CELEBRITY ENDORSEMENT DUE DILIGENCE CONTRACT TERMS INSURANC E ONGOING MONITORING TERMINATION RIGHTS PRE-PLANNED “CRISIS MANAGEMENT” MEDIA STRATEGY What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    14. 14. 14 Perform due diligence on proposed endorser •Research whether proposed celebrity has done or said anything in the past that might harm the brand •Detailed, professional, thorough research •Request celebrity to disclose all incidents in the past that could affect the endorsement value •Understand & accept the existing reputation of celebrity What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    15. 15. 15 The importance of getting the right match •Choose celebrity endorsers who align with values represented by brand •Choose celebrity who resonates with 2 audiences: 1. Brand’s core demographic (current customers) 2. Brand’s aspirational demographic (target customers) •Carefully selected celebrity partner + well-structured endorsement deal = massive economic benefits for any company What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    16. 16. 16 Protective & thoughtful contractual terms ENDORSEMENT CONTRACT MORAL S CLAUSE DISCLOSURE NO DEFAMATION NO PUBLIC DISREPUTE NO OFFENCE OF PUBLIC MORALSEXCLUSIVIT Y CLAUSE ‘REVERSE MORALITY ’ CLAUSE GOOD CORPORATE CITIZEN SUSPENSIO N EXTENDED INJURIES SUSPENSION BY GOVERNING BODY ‘MORAL CLAUSE’ EVENTS TERMINATION MISSED SCHEDULED APPEARANCES WEARING COMPETITORS’ PRODUCTS DISPARAGING BRAND CELEBRITY RETIRES/ABSENT MISBEHAVIOR CLAW BACK
    17. 17. 17 Insure yourself! • Death, disability and disgrace insurance policies • Emergence of several insurance products to address risks exposures • “what-if” scenarios What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    18. 18. 18 Ongoing monitoring (offline & online) • Measure the impact of traditional media and digital media • Monitor the press, social medias, blogs for quotes about endorser • Brand damage mitigation measures Axelle Despiegelaere v L’Oreal What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    19. 19. 19 Pre-planned ‘crisis management’ media strategy • Gain control over how a damaging story is handled • Establish whether or not the allegations are true • Decide whether brand stands by the celebrity or terminate the association Nike v Tiger Woods Nike v Lance Armstrong What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    20. 20. 20 Conclusion What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
    21. 21. 21 ialci law of luxury goods series @ Pullman London St Pancras: What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage Annabelle Gauberti Founding partner annabelle.gauberti@crefovi.com @Crefovi on Twitter What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage

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