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Final Hard Copy

  1. 1. BRAND BUILDING PROJECT CELEBRITY ENDORSEMENTS BY Akash Gupta - 08 Aniveshika Prakash - 25 Dhruv Shah - 29 Noopur Modi - 14 Tejas Narayan - 19 Vidya Bhandari - 03 Under the guidance of Prof. Sameer Virani A PAPER SUBMITTED IN PARTIAL FULFILMENT OF REQUIRMENT OF BRAND BUILDING, SEMESTER V, TYBMM. August 2008 S.I.E.S. COLLEGE OF ARTS, SCIENCE AND COMMERCE, SION [WEST], MUMBAI 400022.
  2. 2. Acknowledgements We thank Ms. Esha Deol and Mr. Hrithik Roshan for giving us time out of their busy schedules. Their cooperation and time is highly appreciated. Special thanks to our Professor Mr. Sameer Virani for giving us this project that helped us in getting practical knowledge on Celebrity Brand Endorsements. We also thank Saatchi & Saatchi and TBWA for sharing their knowledge and experiences with us vis-a-vis brand endorsements. Finally, we thank our parents for providing us with constant support and motivation to keep up with pressing BMM deadlines.
  3. 3. PROJECT OVERVIEW If the world were full of all wise men and all wise women; we would have never heard of a term called "advertisement". And then good products would have found the right customers and grown to prosperity. Firms would have worked out a mathematical formula to sell and succeed. But the buying process isn't rational; and so is this world. The modern world of marketing communication has become colorful and inundated with advertisements, and it is hard to get noticed. It is an uphill task for the designer of an advertising campaign to differentiate itself from others and attract viewers' attention. In this jet age, people tend to ignore all commercials and advertisements while flipping through the magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall brand is of great significance. In this process, the companies hire celebrities from a particular field to feature in its advertisement campaigns. The promotional features and images of the product are matched with the celebrity image, which tends to persuade a consumer to fix up his choice from a plethora of brands. Although this sounds pretty simple, but the design of such campaigns and the subsequent success in achieving the desired result calls for an in- depth understanding of the product, the brand objective, choice of a celebrity, associating the celebrity with the brand, and a framework for measuring the effectiveness. Today, the business firms are trying out different ways in advertisement to increase their sales. Indians are die-hard movie and sport buffs; and this aspect of the consumers has invited the concept of "Celebrity Endorsement" to the world of advertisement. The purpose of this project is to analyze the role of Celebrity Endorsement in the process of brand-building by taking appropriate examples from the advertising landscape and from the celebrities, brand managers and the creative agencies themselves. We interviewed Hrithik Roshan and Esha Deol to gauge the celeb understanding of the brand endorsement’s industry. We also interviewed brand managers at L’Oréal to be au fait with the necessity of celebrity brand endorsements. And to triangulate the rest of the brand endorsement specifics, we also interviewed the creative agencies of Garnier and Sony Ericsson. The transcripts of the interviews are attached herewith.
  4. 4. Celebrity Endorsements It is a known fact that the best endorsements achieve an eclectic balance between the product (brand) and the celebrity. Giving a brand a 'face' is more than just a marketing strategy to increase sales or gain market share, it is a decision that can change the future of the brand forever. Choice of the celebrity, hence, is of utmost importance and is usually done based on many different parameters - appeal, looks, popularity or even just a fantasy figure to endorse a brand. In today's highly competitive markets, big brands are at logger-heads when it comes to products, each having a similar product to that of a rival. Where does one brand gain that quintessential advantage - advertising, service, promise of trust, or even the all important price factors? Advertising seems to be the best platform where brands prefer to compete on - right from hiring the best advertising agencies to getting the biggest celebrities. What would be the formula to success then? Well, a good creative agency, a large enough promotional budget and a huge star to endorse the brand would definitely ensure in the minds of a brand management team a feeling of security, success and a triumph over the competitors brand. The general belief among advertisers is that brand communication messages delivered by celebrities and famous personalities generate a higher appeal, attention and recall than those executed by non-celebrities. The quick message-reach and impact are all too essential in today's highly competitive environment. India is a country where people are star-struck by film stars, cricketers, politicians, and even criminals. Why? Populations of 1 billion and ticking, everyday people need something or someone to look up to. A sense of security, admiration, comfort, familiarity, and above all, someone they aspire to be at some hidden level in their lives. And clever marketers leverage this very celebrity appeal and are successfully carrying out their jobs by giving the bottom lines of all the brands what they want - profit, market share and even recall. But how much star power is too much? "Does Amitabh really use Tide," asked a 6 year old to her mother. Her mother laughs and says, "No way, just a gimmick." What does that do to the brand? Read
  5. 5. on to understand the advantages and risks that are associated with celebrity brand endorsements. Celebrity endorsement cannot guarantee fool-proof success. The celebrity endorsement strategy must be integrated with target market characteristics, and the other elements of the marketing mix such as product design, branding, packaging, and pricing. The message execution that will be mouthed by the celebrity must likewise be made clear and single- minded. One can do this cleverly by aligning the spirit of the brand to the product, or by using a celebrity because it ensures that people will notice them, and hopefully remember what the brand is saying. A well-chosen celebrity endorsement can catapult even the most unlikely product to stardom. Definition of ‘Celebrity Endorsement’ According to Friedman & Friedman, a "celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed." So, in the Coco-Cola advertisement, actor Amir Khan is the celebrity endorser for the product or brand called Coke and this process is referred to as Celebrity Endorsement.
  6. 6. The Need for Celebrity Endorsement The charisma of the celebrities almost always entices people and their words are worshipped by a lot of people. Their influence also goes on the political front, where they are invited for political endorsement. The business firms, thus, resort to celebrity endorsement to perk up brand recall and product sales. This has now become a trend and is being perceived as a strategic means of brand building exercise. Experts suggests that consumers will scrutinize claims more in important situations (say, life saving drugs) than in unimportant ones. So, for almost similar products like Coke and Pepsi, it makes sense to use endorsement. Also, Friedman & Friedman have shown that a celebrity relative to a non-celebrity spokesperson would be more effective for products high in psychological or social risk, involving such elements as good taste, self-image, and opinion of others. For example, when actor Shah Rukh Khan endorses Santro-Zip drive; the consumers are made to think that he is giving his opinion to go for this car. Two reasons why advertisers need celebrity endorsement are to increase the credibility & attractiveness of their advertisement. This is solely to affect consumers' attitude towards their brand. To justify this hypothesis, we can take the example of former Miss Universe Sushmita Sen who helped the Epson brand of printers achieve instant recognition; even with the established giants like Hewlett-Packard and Wipro in the running. Similarly, actress Rani Mukherjee has turned the tables for Bata's ladies footwear brand called Sundrop as sales increased by a whopping 500%.
  7. 7. Important Celebrity Attributes While selecting a celebrity as endorser, the company has to decide the promotional objective of the brand and how far the celebrity image matches with it. The selection is in fact a collaboration, from which both the company and the celebrity gains. The most important attribute for a celebrity endorser is the trustworthiness. The target audience must trust that a celebrity carries a particular image and it must match with the product. The second attribute in order of importance is likeability. The celebrity also must be accepted as a popular icon by a large cross section of the audience. Companies use celebrity endorser because they are considered to have stopping power, i.e., a celebrity can be a very useful tool to draw attention to advertising messages in a cluttered media environment. The overall popular image coupled with exact product-image match enhances the consumer attention resulting in greater brand recall. Similarity between the target audience and the celebrity is the third important attribute. A person well-known in a society can have greater impact than a celebrity of a different world. If the endorser and receiver have similar needs, goals, interests and lifestyles, the position advocated by the brand communication is better understood and received. Certain other parameters that must be carefully considered before engaging a celebrity are: • Celebrity’s fit with the brand image. • Celebrity - Target audience match • Costs of acquiring the celebrity. • Celebrity - Product match. • Celebrity controversy risk. • Celebrity popularity. • Celebrity availability.
  8. 8. • Celebrity physical attractiveness. • Celebrity credibility. • Celebrity prior endorsements. • Whether celebrity is a brand user. Compatibility of the celebrity’s persona with the overall brand image A celebrity is used to impart credibility and aspirational values to a brand, but the celebrity needs to match the product. A good brand campaign idea and an intrinsic link between the celebrity and the message are musts for a successful campaign. Celebrities are no doubt good at generating attention, recall and positive attitudes towards advertising provided that they are supporting a good idea and there is an explicit fit between them and the brand. On the other hand, they are rendered useless when it comes to the actual efficiency of the core product, creating positive attitudes to brands, purchase intentions and actual sales. Advantages of a celebrity endorsing a Brand Brands have been leveraging celebrity appeal for a long time. Across categories, whether in products or services, more and more brands are banking on the mass appeal of celebrities. As soon as a new face ascends the popularity charts, advertisers queue up to have it splashed all over. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter of a few months. The accruement of celebrity endorsements can be justified by the following advantages that are bestowed on the overall brand: 1. Establishment of Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience- this is especially true in case of new products. We had the Shah Rukh-Santro campaign. At launch, Shah Rukh Khan endorsed Santro and this ensured that brand awareness was created in a market, which did not even know the brand.
  9. 9. 2. Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. 3. PR coverage: is another reason for using celebrities. Managers perceive celebrities as topical, which create high PR coverage. A good example of integrated celebrity campaigns is one of the World’s leading pop groups, the Spice Girls, who have not only appeared in advertisements for Pepsi, but also in product launching and PR events. Indeed, celebrity-company marriages are covered by most media from television to newspapers (e.g. The Spice Girls and Pepsi) 4. Higher degree of recall: People tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value. Golf champion Tiger Woods has endorsed American Express, Rolex, and Nike. Actress Catherine Zeta- Jones is used by T-Mobile and Elizabeth Arden. 007 Pierce Brosnan promotes Omega, BMW, and Noreico. 5. Associative Benefit: A celebrity’s preference for a brand gives out a persuasive message - because the celebrity is benefiting from the brand, the consumer will also benefit. 6. Mitigating a tarnished image: Cadbury India wanted to restore the consumer's confidence in its chocolate brands following the high-pitch worm’s controversy; so the company appointed Amitabh Bachchan for the job. Last year, when the even more controversial pesticide issue shook up Coca-Cola and PepsiCo and resulted in much negative press, both soft drink majors put out high-profile damage control ad films featuring their best and most expensive celebrities. While Aamir Khan led the Coke fight back as an ingenious and fastidious Bengali who finally gets convinced of the product's `purity,' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references to the `safety' of the product indirectly. 7. Psychographic Connect: Celebrities are loved and adored by their fans and advertisers use stars to capitalise on these feelings to sway the fans towards their brand. 8. Demographic Connect: Different stars appeal differently to various demographic segments (age, gender, class, geography etc.). 9. Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses.
  10. 10. 10. Rejuvenating a stagnant brand: With the objective of infusing fresh life into the stagnant chyawanprash category and staving off competition from various brands, Dabur India roped in Bachchan for an estimated Rs 8 crore. 11. Celebrity endorsement can sometimes compensate for lack of innovative ideas. Brand Image & Celebrity Research has shown that there are three aspects that influence a customer's attitude and, hence, the long term impact on the brand - Attractiveness, Trustworthiness and Expertise. The matrix below shows us the images and the celebrities: Aspect of Brand Image Celebrity Product Elegance Renuka Shahane Whisper Beauty Madhuri Dixit Emami Attractiveness Classy Saif & Tiger Pataudi Asian Paints-Royale Fardeen Khan Provogue Stylish Amitabh Bachhan Reid & Taylor Honest Tarun Tejpal Tehelka Trustworthiness Reliable Sachin Tendulkar TVS Victor Knowledge Sachin & Sehwag Reebok Expertise Qualified Naina Balsavar Shampoo Hence, we see, depending on the product and aspect of brand, the choice of the celebrity is important so that the celebrity can reflect that and not go against the brand.
  11. 11. Celebrity Selection There are various scientific ways in which the right celebrity is selected for the product endorsement, which are discussed here after Stereotyping Stereotypes are defined as perceptions and depictions of individuals based on simplistic, biased image of the group to which they belong, rather than on their own individual characteristics. For example: it’s better to select celebrities who say are teens for chocolate advertisements and females for detergent ads, etc. The TEARS Model The attributes highlighted by the acronym "TEARS" are gauged for celebrity selection. These are: - • Trustworthiness: For example - Legendary actor Amitabh Bachchan who is an icon of trust; promoting ICICI Bank. • Expertise: For example - Golfer Tiger Woods for a sports brand. • Physical Attractiveness: For example - Tennis player Anna Kournikova who earns 10 Million dollars per year in just endorsement. • Respect: For example - Former Miss World Aishwarya Rai and the Eye donation campaign. • Similarity: For example - a child artist promoting a chocolate brand.
  12. 12. A celebrity scoring high on all the above attributes can turn out to be a good endorser for the brand under question. The No TEARS Model The "No TEARS" approach is a tool for managers and their advertisers how to go about selecting celebrities so as to avoid the pitfalls from making an unwise decision. It gauges the following information: - 1. Celebrity & audience match up, 2. Celebrity & brand match up, 3. Celebrity credibility, 4. Celebrity attractiveness, 5. Cost consideration, 6. A working ease and difficulty factor, 7. An endorsement saturation factor, 8. A likelihood-of-getting-into-trouble factor Selecting the right celebrity does more than increasing sales; it can create linkages with the celebrities' appeal, thereby adding new dimension to the brand image. Research conducted by Katherine Eckel has revealed that celebrities can get people to make a better choice but cannot influence 'people to make a foolish choice'. The success of celebrity endorsement in India can be sought from a market research conducted earlier which found that 8 out of 10 TV commercials scored the highest recall were those with celebrity appearances. A few examples: Sachin Tendulkar - Adidas, Sourav Ganguly - Britannia, Leander Paes & Mahesh Bhupati - J. Hampstead, Shah Rukh Khan - Pepsi, Sushmita Sen - Epson, and Aishwarya Rai - Coke.
  13. 13. Celebrity Endorsement – Do they always work the magic? No! Despite the potential benefits derived from celebrity endorsements, they increase a marketer's risk manifolds and should be treated with full attention and aptitude. A brand should be cautious when employing celebrities to ensure promise believability and delivery of the intended effect. The most important thing to remember is that putting a celebrity in an ad is not an idea in itself. Unfortunately, this is how most celebrities are being used in Indian advertising, where they just become a prop. Ideally, there should be an idea that makes the celebrity relevant to the product and the consumer. A celebrity's presence in the ad should be contextual. There are cases where brands are not able to take-off even after the backing of celebrities. And this leads to speculations in the Ad World on the soundness of celebrity endorsement as an effective communication strategy. The Reasons According to leading management thinker, Dr. Seamus Phan, "Many celebrity endorsements fail because they identify a celebrity they like in an emotive and un-researched manner and then try to create advertising to force-fit the celebrity into the creative concept." Therefore, the advertisers must associate the celebrity to the advertisement and not vice versa. Thinking on the similar lines, the advertisers shouldn't identify the brand to associate with the celebrity but do vice versa. The success of celebrity endorsement also depends upon the capacity, knowledge, experience, and qualification to talk about the product. Failure may be attributed to improper positioning (Example: Amitabh Bachchan, Abhishek Bachchan & Maruti Versa), negative perception after use of product / service (inferior products), misapprehension of the meaning of the endorsement, etc. Another reason for the celebrity endorsement to turn against the brand is due to "Overshadowing". This happens when the celebrity is larger than the brand being endorsed.
  14. 14. And unfortunately, though the celebrity generates higher levels of attention among viewers, the impression is not always strongly linked to the advertised brand. Finally, brand may also fail to get noticed given a recent negative publicity of the celebrity endorser. Example: Michael Jordan lost his endorsement deals when he announced in 1991 that he's HIV-positive. It wasn't until July 2003 that he landed his first endorsement deal since the announcement. The Solutions As previously mentioned, celebrity management is very crucial to avoid the brand-celebrity disconnect, and subsequently, brand failures. Proper market research should be carried out and right positioning strategies should be in place. If the consumers have questions in their minds regarding the quality or performance of the product then even God cannot save the brand. There shouldn't be any ambiguity or confusions when showing the celebrity in the advertisement. The obvious solution to the problem of overshadowing is to make sure that both the advertisement and the celebrity are focused on the brand or product. To avoid any bad publicity arising out of celebrity defames, companies may resort to multiple celebrity endorsement. For Example: Pepsi while capitalizing on the popularity of cricket and films in India used several cricketers and film stars in their ads. So when Azharuddin and Jadeja got embroiled in the match-fixing controversy, Pepsi severed its association only with these stars, but its relationship with cricket continued.
  15. 15. Disadvantages of a celebrity endorsing a brand 1. The reputation of the celebrity may derogate after he/she has endorsed the product: Pepsi Cola's suffered with three tarnished celebrities - Mike Tyson, Madonna, and Michael Jackson. Since the behaviour of the celebrities reflects on the brand, celebrity endorsers may at times become liabilities to the brands they endorse. 2. The vampire effect: This terminology pertains to the issue of a celebrity overshadowing the brand. If there is no congruency between the celebrity and the brand, then the audience will remember the celebrity and not the brand. Examples are the campaigns of Dawn French - Cable Association and Leonard Rossiter - Cinzano. Both of these campaigns were aborted due to celebrities getting in the way of effective communication. Another example could be the Castrol commercial featuring Rahul Dravid. 3. Inconsistency in the professional popularity of the celebrity: The celebrity may lose his or her popularity due to some lapse in professional performances. For example, when Tendulkar went through a prolonged lean patch recently, the inevitable question that cropped up in corporate circles - is he actually worth it? The 2003 Cricket World Cup also threw up the Shane Warne incident, which caught Pepsi off guard. With the Australian cricketer testing positive for consuming banned substances and his subsequent withdrawal from the event, bang in the middle of the event, PepsiCo - the presenting sponsor of the World Cup 2003 - found itself on an uneasy wicket 4. Multi brand endorsements by the same celebrity would lead to overexposure: The novelty of a celebrity endorsement gets diluted if he does too many advertisements. This may be termed as commoditisation of celebrities, who are willing to endorse anything for big bucks. Example, MRF was among the early sponsors of Tendulkar with its logo emblazoned on his bat. But now Tendulkar endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has scaled down. 5. Celebrities endorsing one brand and using another (competitor): Sainsbury’s encountered a problem with Catherina Zeta Jones, whom the company used for its recipe advertisements, when she was caught shopping in Tesco. A similar case
  16. 16. happened with Britney Spears who endorsed one cola brand and was repeatedly caught drinking another brand of cola on tape. 6. Mismatch between the celebrity and the image of the brand: Celebrities manifest a certain persona for the audience. It is of paramount importance that there is an egalitarian congruency between the persona of the celebrity and the image of the brand. Each celebrity portrays a broad range of meanings, involving a specific personality and lifestyle. Madonna, for example, is perceived as a tough, intense and modern women associated with the lower middle class. The personality of Pierce Brosnan is best characterized as the perfect gentlemen, whereas Jennifer Aniston has the image of the ‘good girl from next door’ 7. Negative publicity: If the celebrity is strongly associated with the brand then the occurrence of the negative publicity can spill over the brand. This can harm the trustworthiness and credibility in the mind of the consumers. E.g., Salman Khan lost his endorsement deal with Thumbs-Up after his infamous incidents like buck-killing and rash-driving. 8. Overexposure: This risk arises when the celebrity chooses to endorse several different products simultaneously which might leave the consumers confused. E.g., Sachin Tendulkar endorses several brands such as MRF, TVS Victor, Pepsi, Fiat, Boost, etc. 9. Overuse: Sometimes the company can use many different celebrities to appeal to different market segment. But multiplicity of endorser might blur the image of the brand and reduce the effectiveness of the means of persuasion. 10. Extinction: The favourable response obtained by a particular brand may weaken over time if the brand gets significant exposure without the association of the celebrity. If the celebrity contract is for a considerable period of time, then it can lead to draining out capital without proper return. 11. Financial Risk: The decision for hiring an expensive endorser may not be always feasible if there is a poor brand fit. Therefore, for celebrity endorsements to work effectively there are some fundamental ground rules: - • The brand promise and the brand personality should be clearly articulated. • The communication objectives for the campaign should be frozen. • Focus must be on the synergy between the brand and the celebrity image
  17. 17. • Establish explicitly what the celebrity is going to communicate Once these criteria are met, endorsements can work as a force multiplier. A deeper insight in the impact of celebrity endorsement on consumers' minds can be explained by the meaning transfer model, explained in the next section. Celebrity Endorsement: The Issues Involved There are several factors to consider before resorting to celebrity endorsement. There is no single formula to win in the world of marketing. A company must analyze the prospect of endorsement from 360 degrees, prior to product promotion. Price vs. Profit The most important issue is that of return on investment (ROI). Companies need to perform a cost-benefit analysis prior to endorsement. The process of gauging the effectiveness of endorsement on the overall brand is but difficult. The companies expect to bring, in the long run, future sales, revenues and profit from the present investments on celebrity endorsement. Celebrity endorsement is an expensive means of brand promotion and the price burden almost always shifts on to the consumers; if not, then it narrows the companies' profit. Multiple Brand Endorsement vs. Multiple Celebrity Endorsement In the advertising landscape, we find either a celebrity endorsing multiple brands or multiple celebrities being used to endorse a single brand. Sachin Tendulkar, for example, in 2002 endorsed 12 brands (including Pepsi, Boost, Colgate Total, Gillette, Britannia Tiger, Fiat Palio, TVS Victor, Fiat Sienna, MRF, Adidas, Visa Cards and Home Trade). It is said that endorsement of as many as four products negatively influences the celebrity spokesperson's credibility and likeability. Also, the use of multiple celebrities to endorse a brand may hinder the meaning transfer process, and thus, lead to confusion among the consumers.
  18. 18. Similarity between the target audience and the celebrity is the third important attribute. A person well-known in a society can have greater impact than a celebrity of a different world. If the endorser and receiver have similar needs, goals, interests and lifestyles, the position advocated by the brand communication is better understood and received. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. The companies have to first clarify their business objectives, brand values and then decide who the celebrities are who can carry them forward. Otherwise, there can be unnecessary investments without proper return. So the celebrity endorsement cost has to be weighed up against the return on marketing investment. Besides, while designing an ad campaign, one should also keep in mind that the overuse of some extremely popular celebrities often tends to confuse consumers and reduce the utility of celebrity endorsement. Another argument against celebrity endorsement involves the behavior of the celebrity. The values that display themselves in regrettable behavior could transfer themselves to the brand. The marketing function of a company should also understand that brands should assume a much greater space than the celebrities, because their association may be temporary but the brands are permanent.
  19. 19. A Few Facts 1. Approximately 60-70% of all television commercials feature famous people. 2. Aishwarya Rai had once endorsed 'Fuji-Film' camera rolls. The company made an agreement with her to endorse their camera rolls. But, Aishwarya's magic did not work there and they had to terminate the contract. 3. Amitabh Bachchan (AB) was seen endorsing Maruti's Versa Car. The AB factor worked wonders as far as generating curiosity was concerned but the actual product couldn't meet the expectations of people, and hence, the endorsement strategy didn't work. He has been used very effectively by Parker Pens, ICICI Bank and Cadbury's to name a few. 4. Bata’s sales doubled soon after they adopted Rani Mukherjee as their brand ambassador. 5. Magic Johnson lost his endorsement deals when he announced in 1991 that he's HIV- positive. It wasn't until July 2003 that he landed his first endorsement deal since the announcement. 6. Ticket sales at Wimbledon are known to have shot up significantly for all matches featuring the latest 'sex-symbol' on the circuit - Anna Kournikova. An average player
  20. 20. who is yet to win even a single tennis tournament, Anna is known to have earned far more from endorsements than her tennis career could ever have given her. Conclusion Celebrity endorsement can be a goldmine or a minefield for a company's brand building process. There have been extensive studies relating to the process of celebrity endorsement and brand-building. These studies indicate that celebrity endorsement has worked well in some consumer segments while failing in others. Few celebrities have been more successful than those with almost parallel fame. So the role of celebrity endorsement in the advertising space is equivocal and cannot be seen as an assured strategic tool to win profits, market share, revenues, etc. Consumers can identify the clear difference between a good script and a good brand idea. For example, while Pepsi's Sachin and Bachchan (kite flying) ad was seen as one with a good script, Coca-Cola's Thanda Matlab... was seen as an insightful and strong brand idea. For all the flak it drew in its vainglorious attempts to run down competition, Thumbs-Up was seen as the only example of seamless linkage between brand positioning and brand celebrity. "Brand" is the most valuable asset of any company; building its image is, thus, of paramount importance. Any thoughtless adventure can be like the Sword of Damocles upon the marketers head. Celebrities do not make brands but ideas do. If the former were true then brands would have vanished when the hype and hoopla around the celebrities faded. Celebrity endorsement is also one of the ideas. But, it’s easy to come up with new ideas; the hard part is letting go of what worked for you two years ago, but will soon be out-of-date. Therefore, it is imperative to invest in good ideas; which will bring good returns. Thus, the
  21. 21. need of the hour is to focus less on Return-on-Investment’s, and think more in terms of Return-on-Idea’s. Using a celebrity in advertising is no panacea and the success of this process depends on several factors as discussed above. The careful selection of celebrity, matching the target segment and brand values, should be inherently stressed upon. The advertisers could use factors like awareness and likeability while evaluating a celebrity. Another important factor is the flexibility with which the companies can go in for hedging the risks associated in hiring a celebrity. They choose personalities from various fields or even appealing to various consumer perceptions, so that they can minimize the damage in cases of negative publicity due to any celebrity mistake. The cola brands spread their endorsements across a wide 'variety' of celebrities such that even if one falls, the others are still holding the fort. In terms of the future, celebrity endorsements are here to stay. Their ability to cut across the classes, caste barriers and apprehensions are simply too important to be sidelined. They have been time-tested and delivered results repeatedly, given good hands. One could continue to wonder if these celebrity-hawkers are worth the money and the tantrums, but in a world of brand clutter and product muddle, celebrities seem to hit the nail on the head, more often than not. And to be honest, let's look around ourselves, aren't we all in a little appreciation of those stars gazing back at us!
  23. 23. Aishwarya Rai now known as Aishwarya Rai Bachchan needs no introduction. After becoming Miss World in 1994 she entered Bollywood and she has never looked back since then. The start wasn’t that good for her but after her performance in Hum Dil De chuke Sanam, she is known as one of the best actresses in Bollywood. Not only India is she appreciated for her beauty but internationally too she is famous for her ravishing looks and her beautiful eyes. The Brands she endorses: L’Oréal, Lux, Coke etc. The brand Manager we interviewed is L’Oréal Paris India. The L'Oréal Group is the world's largest cosmetics and beauty company and is headquartered in the Paris suburb of Clichy, France. L'Oréal has developed activities in the field of cosmetics, concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care. L'Oréal is active in the dermatological and pharmaceutical fields. L'Oréal is also the top nanotechnology patent-holder in the United States. History In 1907, Eugène Schueller, a young French chemist, developed an innovative hair-colour formula. He called his improved hair dye Auréole. With that, the history of L’Oréal began. Eugène Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers. In 1909, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France"), the original L’Oréal. During the early twentieth century, Schueller provided financial support and held meetings for La Cagoule at L’Oréal headquarters. La Cagoule was a violent French fascist-leaning and anti-communist group. L'Oréal hired several members of the group as executives after World War II. In 1920, the small company employed three chemists. By 1950, the research teams were 100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today. L’Oréal got its start in the hair-colour business, but the company soon branched out into other cleansing and beauty products. L’Oréal now markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair colour, permanents, styling aids,
  24. 24. body and skin care, cleansers and fragrances. They are found in all distribution channels, from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail. L’Oréal's famous advertising slogan is "Because I’m worth it". It has recently been replaced by "Because you're worth it". Brands Brands are categorized by their targeted markets, which are mass market, professional, luxury, and active. L'OREAL GROUP BRANDS (as of 2006) Professional Consumer Active Luxury Products Products Products Cosmetics Division Division Division Division •L'Oréal •L'Oréal Paris • Biotherm • Dermablend Professionnel •Garnier • The Body Shop • La Roche-Posay •L'Oréal •Maybelline • Cacharel • SkinCeuticals Technique NewYork • Diesel Perfumes • Vichy •Matrix •SoftSheen- • Giorgio Armani Parfums and Laboratoires •Mizani Carson Cosmetics • Innéov • Redken • Guy Laroche • Ombrelle • Helena Rubinstein • Kérastase • Kiehl's • Lancôme • Paloma Picasso • Ralph Lauren (fragrances) • Shu Uemura • Victor et Rolf parfums • Vichy Spokes-models
  25. 25. L'Oréal has hired hundreds of actors, actresses, models, singers, and sport figures for its TV commercials and print ads: • Jessica Alba • Jennifer Aniston • Pierce Brosnan • Priyanka Chopra • Jennifer Lopez • Aishwarya Rai L'Oréal got in to the value of the South Asian beauty market and signed up Bollywood star Aishwarya Rai to join its "dream team" of some of the world's most beautiful women. The flagship brand of the world largest cosmetics company, L'Oréal Paris is delighted to have the Indian movie superstar as one of its international ambassador. Aishwarya Rai is a part of the L'Oréal Paris dream team that includes some of the world's most beautiful and inspirational women such as Laetitia Casta, Andie MacDowell, Milla Jovovich, Noemie Lenoir, Virginie Ledoyen, Agbani Darego, Gong Li and Catherine Deneuve. L'Oréal enthuses that "Aishwarya Rai truly personifies the L'Oréal Paris woman displaying beauty, sophistication, charm, modernity, confidence and a reluctance to settle for anything less than the best. She also adorns the values of today's woman: intelligent, self-assured and decisive. Be it her mesmerising blue-green eyes, her inherent talent and grace, or her obvious intellect, Aishwarya is undoubtedly one of the most admired actresses on Indian cinema." On becoming an Ambassador for L'Oréal Paris, Aishwarya commented, "I am absolutely delighted and very excited to be associated with L'Oréal Paris. The brand's tag line "because you're worth it" has always been very close to my heart". L'Oréal thinks that Aishwarya is a perfect symbol of L'Oréal Paris's understanding of the diversity of beauty. She will represent L'Oréal Paris Demo-Expertise, hair colour and cosmetics.
  26. 26. Interview with Mona Lisa – Marketing Manager for L'Oreal 1. What is your general view on brand endorsements by celebrities? I think it's a fantastic way to reach out and connect with your audience. Your brand gets immediate recall. The celeb also adds credibility to the brand. It does of course depend on the popularity of the celeb, but if you do your research well they can be used very well. Using celebrities makes the brand more real, especially when they say something like, "I use L'Oreal" At L'Oreal, we're all about 'Diversity of Beauty'. We wanted to establish a connect with our audience telling them the main point," we have a solution for your problems" through the brand ambassador. 2. Why did you choose Aishwarya Rai?
  27. 27. L'Oreal is such a huge brand, having many sub-brands under it. One of them is L'Oreal Paris. L'Oreal Paris, which is what Aishwarya endorses, needs a woman of substance, somebody who can stand tall on their own. That person doesn't necessarily have to be young. For example we have Jane Fonda and Pierce Brosnan as our brand ambassador in the U.S. and they're in their sixties! Aishwarya does an excellent job of adding her style to the brand. She was a total brand fit and a culture fit. Aishwarya is glamourous and will continue to be, we didn't just because she is beautiful. People remember her as a strong person. 3. Were there any other choices before you chose Ash? I'd prefer not to talk about that but I think Diana Hayden was shortlisted. 4. How effective has Ash been for L'Oreal? Aishwarya is an achiever in her own right. She's super glamourous and beyond pretty. She's very complex and this just strengthens what L'Oreal stands for. She's been very successful for us. And unlike one of L'Oreal's other brands like Garnier which is very much a "girl next door" product, L'Oreal required more star value. 5. What would you say is the Indian L'Oreal woman? Well, she is a woman of substance, she is determined and a decision maker. She is also a demanding woman who will work hard to reach the top.
  28. 28. Celebrity Interview We interviewed Esha Deol and Hrithik Roshan who endorse Garnier and Sony Ericsson respectively. We also interviewed the creative agencies of Garnier India and Sony Ericsson.
  29. 29. Esha Deol, daughter of hema Malini and Dharmendra, did not have a very good start in Bollywood. But she made her own way and was appreciated in her movie Dhoom and since then she has become the sexy Esha deol and is continuing to do so. She has been appreciated for her performance in Ankahee and was nominated for her role. As Esha is a young girl and has a really pleasant look she has endorsed only youth oriented products which include Garnier, Provogue and she also endorses Kent with her mother Hema Malini. Garnier: Garnier is a division of L'Oréal that produces hair care products, including the Fructis line, and most recently, skin care products under the name, Nutritioniste, that are sold around the world. One of their key ingredients is a fruit concentrate used in all their products. It is a combination of fruit acids, vitamin B3 and B6, fructose and glucose. Products: Garnier sells an array of products ranging from styling products to shampoos and conditioners. Some of the products currently sold by Garnier are: • Sleek and Shine shampoo and cream conditioner • Body and Volume shampoo and cream conditioner • Normal shampoo and conditioner and 2-1 Normal shampoo/conditioner • Dry or Damaged shampoo and cream conditioner • Sleek and Shine anti-frizz serum
  30. 30. • Sleek and Shine deep conditioner • Anti-Dandruff shampoo and 2-1 Anti-Dandruff shampoo and conditioner • Fortifying deep conditioner Garnier also produces beauty products. The beauty products are branded under the name Garnier Skin Naturals due to their natural components. Some of these include: • Garnier Pure Range (For Oily/Blemished Skin) • Garnier Lift Range (Firming & Anti-wrinkle) • Garnier Light Range (Whitening/Brightening) • Garnier Fresh Range (For Normal/Combination Skin) • Garnier Soft Range (For Dry/Sensitive Skin) Taglines across the world • Australia, UK: Take care • Portugal, Italy, Russia, Serbia: Take care of yourself • USA, India, Poland: For hair that shines with all its strength (Fructis) • USA: Great skin from the inside out (Nutritioniste) • Spain: High natural technology Why Esha Deol? According to the executives at Garnier India, Esha is a perfect fit for the brand as this brand is aimed at the youth and Esha Deol is an appropriate match for the same. Garnier has always been introduced as new, different and better product for their consumers.
  31. 31. Esha is a style icon as she endorses clothing brand Provogue and has been flaunting her sexy self in most of her films which include Cash and her upcoming film Darling. Esha Deol is the brand ambassador for a fairness cream by Garnier. Before Esha many pretty faces like Kareena Kapoor, Simone Singh and Isha Koppikar have endorsed Garnier brand. Interview with Esha Deol – Brand Ambassador for Garnier 1. What is your general view on brand endorsements? I think it's really nice that you can sell a product that you believe in and also increase your visibility. But it's personally very important to choose anything that comes my way. I am very choosy about brands. I need to believe in the brand, I need to feel good about endorsing it. So I think you have to be very clear about your morals and the fact that I am endorsing Garnier, it's a brilliant skin product. Even with Provogue, I love their clothes, very young and energetic and that suits my image so I am for it. 2. What conditions would a brand require for you to endorse it? I guess if something is going to be harmful to the public I wouldn't do it. Like I was once offered a deal by an alcohol company and I said no. I personally don't say that drinking is bad or something. And I would never endorse a tambaku like Pan Parag or something. I don't want my image to be portrayed as a person who endorses that. It doesn't matter how much money they pay me, I need to be comfortable about endorsing that brand. 3. Do you always use the products you endorse? If it's nice, then yes I do and that's how I choose my brands. That way I think am lucky to have Garnier, I love their products. I actually use the Non-Sticky Matte Cream. It's real useful in the monsoon.
  32. 32. 4. Outside the campaign requirements say in a social or personal situation, do you recommend the products you use? Oh yes I do. If I don't believe in the product I would never endorse it. In the case of Garnier, I do tell my friends to use it. 5. Ever since you started working with Garnier how well has your campaign done for you? I got a lot of appreciation for the ad. And they really took a lot of care with me, especially while shooting; they were very professional and wrapped the shoot up in 4 days. They've even told me that sales have increased with my ad. 6. Do you think Garnier required a celebrity? Garnier, all over the world makes use of celebrities. I think that's how they make the public aware. It definitely adds to the product. So I think using me, just fits in with their idea. 7. When Garnier came to you, what did they say they were looking for in a brand ambassador? Well, first of all, they wanted a celebrity with good skin. And they wanted to hit the youth even with a skin product that was saying remove oily skin. And they liked my complexion, I mean am neither very fair nor dark, am slightly whitish. A lot of Indians have my kind of complexion. 8. In any of the products you've endorsed, have they ever imposed any strict rules or regulations on you? Sometimes, when your shooting a scene they kind of prefer if they're product was there somewhere in the background. Since I am the brand ambassador, they would like it even if it placed anywhere. But no one's really told me I can't do certain things. 9. From the celebrity's point of view, how does brand endorsing benefit them? You get good money. Apart from that, there's definitely more visibility for you when ads are played. You’re selling something in a very nice way and you’re creating awareness about that
  33. 33. particular product. It also adds to your image. If it's a good product, then it does of course raise your image. 10. Do you think that these days there's a trend among celebrities to just sign anything for the money? I don't want to comment on anyone that way. As far as I am concerned am very clear about what I would endorse and what I wouldn't. Interview with the Creative Agency of Garnier, India 1. What is your general take on Brand Endorsements? I personally don't like brand endorsements. It's a shortcut, it's the easy way out. People use them when there is a lack of a better idea. Agencies use celebrities hoping it will work, many a times it doesn't. Some people do it just to follow the current trend. And many times, the brand gets hidden and only the celebrity is remembered. In the olden days, when I just started working, there were not many celebrities doing too many products. Back then you could believe what a celeb had to say. Now it's become just too cluttered. 2. Then why did you choose Esha Deol? Actually Garnier does not believe in celebrities at all. Garnier is about approachable beauty. Unlike L'Oreal Paris which is all about glamour. Garnier is about the girl next door. Esha is not a very famous celebrity that way. She is not a diva, which is why L'Oreal chose Aishwarya. But Esha was chosen for her excellent personality and for the fact that people remember her face. Esha is not seen as a goddess who is untouchable, she is very real. She may not be a bollywood queen but she certainly has her own success. She is a very fit lady who is into sports and dancing. She has a famous lineage. Garnier recognized the fact that she was happy being herself. 3.How does Esha Deol fit into Garnier? She's perfect because she seems so real that the brand actually becomes the hero,
  34. 34. without the celebrity overshadowing the brand. She was used more like a model than a celebrity. 4. When and how would Garnier shift from Esha? Garnier is not stuck with one single ambassador. There are many people connected with Garnier so we can leave any ambassador or they can leave us without Garnier being affected. In that way Garnier never falls in a trap. 5.Is there any global requirements that Garnier needs to be fulfilled in their brand ambassador? Globally, Garnier does not use ambassadors. Except in rare cases. Eg. Sarah jessica Parker was used for Nutritionist. Even the anti-ageing creams, do not use known faces. There is no set rule like that but yes, for Matte we were looking for a girl who has good skin, a good attitude and can act well. Esha met this very well. 6. To whom is the Matte Effect cream targeted at? It's targeted to the girls between 18-25. It's specifically not a youth oriented product. The product is directly matched against Fair and Lovely which leaves a sticky feeling. Celebrity Interview 2 We have also interviewed Hrithik Roshan and the brand we chose is Sony Ericsson.
  35. 35. Sony Ericsson: Sony Ericsson is a joint venture established in 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. The stated reason for this venture is to combine Sony's consumer electronics expertise with Ericsson's technological leadership in the communications sector. Both companies have stopped making their own mobile phones. The company's global management is based in Hammersmith, London, and it has research & development teams in Sweden, Japan, China, Germany, the United States, India, Pakistan and the United Kingdom. Sony Ericsson has, as of July 18, 2008, approximately 9,400 employees and 2,500 contractors worldwide. Hrithik Roshan Hrithik Roshan born on 10th January 1974 is the hottest star in India. He is amongst the biggest stars in India which includes Amitabh Bachchan, Shah Rukh Khan and Aishwarya Rai. He has been a Star since his first movie. The audience went mad for him after watching him in his debut film Kaho Naa Pyar Hai. His other hits include Koi mil gaya, Dhoom 2, Krrish and Jodha Akbar which faired well on the box office, Currently he has taken a break to be with his loving wife and his elder son Hrehaan and he new born Hridhaan. Why Hrithik Roshan?
  36. 36. Hrithik Roshan’s popularity is growing by the day and of course many new endorsements are coming his way. Hrithik has now become a brand ambassador of Sony Ericsson for India and the SAARC countries. Hrithik will be endorsing all the Sony Ericsson products and will be part of the company’s marketing initiatives. According Sudhin Mathur, General Manager, Sony Ericsson India, Hrithik will contribute in creating a brand connect and enhancing its brand recall with the local audiences in India. Association with Hrtihik offers instant entertainment, instant identification, star power and it strongly influences popular culture. Mathur adds that Hrithik was the ideal choice for Sony Ericsson as it connects with audiences at an individual and collective level. Interview with Hrithik Roshan – Brand Ambassador for Sony Ericsson Interviewer: Akash Gupta and Ms. Vidya Bhandary Interview Duration: 25 minutes Venue: Roshan Residence, Juhu 1. What conditions would you require in a brand before endorsing it? On what basis would you endorse a brand? ...Before signing an endorsement contract, I make sure that the brand under question shares an identical or atleast favourable image to complement mine. It wouldn’t make any sense if I start endorsing hair dying products tomorrow... Besides, the reputation that the brand commands is of primary concern, too... A lot of hard work and dedication goes into building credibility and the last thing one could ask for is undoing all that by associating themselves with a disliked brand... I also make sure that the brand I’m endorsing doesn’t contradict or compete with any of my previous campaigns or associations...
  37. 37. 2. Do you consider promoting your brand in other social or personal affairs, apart from the campaign? (Chuckles) Well, that biscuit in your hand? It’s a ‘Hide & Seek’ (points to the biscuit in Vidya’s hand) and that phone on the table; it’s a ‘Sony Ericcsion’ (points to the table on which an Apple iPhone and a Sony Ericcsion handset are kept)... So, when I endorse a brand, I tend to use it in my off-screen life too. Doing so only adds to our credibility and value in the industry... Basically, it doesn’t make sense endorsing a brand you yourself can’t or won’t use in public... 3. Would you consider doing the same personally? It depends; we have a lot of options to choose from. Nevertheless, I do use the products that I endorse and I endorse them only if they are worth it and I would use them myself... See, I like hide & Seek very much and I eat it too (chuckles, picks up a Hide & Seek biscuit from the tray and eats it). 4. How well did the ‘Hide & Seek’ campaign fared? The best people to answer this question are the marketing guys at Hide & Seek... The currently running campaign is one of my favourites... I think it’s doing great. Hide & Seek told me that their sales have surpassed their expectations and targets in past 1 year. 5. Does your endorsement contract impose any stringent usage guidelines on you?
  38. 38. Hmmm... Sometimes; for example, Sony Ericcsion requires me to carry a SE handset around... Magic Moments imposed no such restrictions... Though, I still prefer having Magic Moments against any other competitor brand when I’m in a social gathering... Contracts say a lot of things; however, it never comes down to referring to it ever again once it is signed. There’re more of a formality and less of a legal watchdog these days. 6. What are your general views on brand endorsements? Do you thing they really necessary? See, any successful brand is 50 % product features coupled with 50 % brand ambassador. In today’s cut-throat market competition, when a celebrity stakes his or her credibility with the brand and shares opinion with the public, only then can a product achieves a top of mind recall and recognition and desirability... I personally feel that a brand with a high celebrity appeal would do substantially better than the one without it... 7. Your opinion on the qualities required by a celebrity brand endorser. ... First and foremost, the brand image and the celebrity image should complement each other. If you expect a TV Soap actress to endorse a multinational brand and elevate it to the next echelon, you’re mistaken, my friend. Similarly, a globally acclaimed celebrity endorsing an underwear brand also doesn’t goes down too well... Secondly, the brand ambassador must a highly credible and liked personality. The more successful celebrity a brand engages, higher are the chances that it will capture the market... In short, the brand ambassador must be a dynamic, highly successful, credible and respected personality in the industry and in the market alike. 8. What product category would you never endorse?
  39. 39. I am very very particular about the brands I endorse. As I mentioned earlier, a lot of efforts and hard work goes into making of a celebrity and last thing any celebrity would want is losing his or her credibility and trustworthiness by endorsing a sub-standard product. I will never endorse any brand that may put any community or individual in the harm’s way. This apart, I also take care that the brand I’m endorsing suits and compliments my image. It would be ridiculous Hrithik Roshan endorsing hair dye products (Laughs)... In the end, no wrong vibes should be passed on to my fans and I make sure it doesn’t happen... Interview with the Creative Agency of Sony Ericsson - Saatchi & Saatchi Interviewer – Akash Gupta Interviewee – Mr. Sumit Mathur Designation – Senior Account Director, Saatchi & Saatchi, Delhi Interview Duration – 15 Minutes 1. What are your general views on brand endorsements by celebrities? Brand Endorsements by celebrities is very important, particularly in places where the brand is relatively unknown or if the brand is being re-launched or repositioned. To grab the attention of your TG, your product needs a face; so your brand ambassador becomes that face. Otherwise advertisements come and go, nobody’s got time or interest to notice them. It is only because of the famous faces that people give ads their time and attention. Hence, celebrity endorsements primarily exist to gain the attention of your target audience for a few seconds and their recall thereafter.
  40. 40. 2. When a brand engages a personality, what are the qualities that a brand looks for? Example Sony Ericsson. Why do you think Sony Ericsson engages Hrithik as a brand ambassador? See, a brand looks at a person who can be communicated having similar values and imagery and brand identity. If a brand has been projected as youthful and young, then somebody who has the kind of persona should get well with the brand. Sony ericcson wanted to project that it was for music, for youthful dancing and pop kinds. So, uss image mein, jo celebrity aate hain, un mein se choose karna tha. Hrithik Roshan was the Obvious choice because he is popular, he is an easily recognized face by the people. Secondly kissi bhi brand ke liye jis area mein unhe launch karna hai uska appeal,endorser should have an appeal in the area. If some fashion designer say Ritu Kumar is taken as a face she might be a big person in the design industry but usko koi pehchanta nahin hai, koi dekhega nahin. She might have a good face but koi collection value, recall value nahin hogi. Brand ambassador ki appeal honi chahiye ki woh attention garb kar sake, recall value honi chahiye. That means peple shoulkd recognize and associate him/her with something. 2. And that something should be your brand? Haan Something as in a video commercial or a radio commercial aaya, unki voice use ki gayi hai.toh logon ko recollection ho, ki uski awaaz use ki gayi. Attention grab kiya suna and they should be able to recall. If hrithik Roshan ka ad flash hota hai, toh people should know it is an sony ericsson ka ad. Thirdly, ambassador should not be larger than the brand. If you take Brad Pitt or Hrithik for a small brand, uss mein people will say Hrithik ka ad and no Brand ka ad. What will happen if people will remember the celebrity, but they will forget the product eventually, it will result in loss and failure of campaign. Brand ambassador should not to be larger than the brand. 3. How would have Sony Ericsson faired without Hrithik Roshan? We have actually gone and telecast an ad without Hrithik Roshan. So when you see it you will feel the difference so Hrithik has an eye catching factor. When he dances everyone sees and because of his fan following people will emulate and buy that phone. Now in the new ad there is no Hrithik Roshan, Stadium mein dance ho raha hai, dekha bhi hoga
  41. 41. tumne ad. Par recall nahin ho raha. This ad was on air from 8th august lekin recollection nahin hai. The new ad doesn’t have the kind of appeal naa log dekh rahen hai naa recall kar rahen hain, now there is a new model in the new ad we are hoping there will be collective visibility. 11. Do brands really gain big from engaging celebrity Brand Ambassador’s? Yes, many a times, they do, especially if the brand under question is an unknown brand. For example, Wal-Mart is planning to launch itself in India in the coming year. However, hardly anyone know what Wal-Mart is all about in India, nevertheless, it’s very big player on a global scale. As a result, when they enter India, they will have to use celebrity endorsements to penetrate the market that has just too many similar players in business. Consequently, people will not be able to remember, recollect and recall Wal- Mart in such a hostile market. So what’s the solution to this problem? The solution is that when they enter the Indian market, they will engage the biggest of celebrities to endorse their products, thereby, ensuring a top-of-line recall among it TG. This will also facilitate them create a certain set of value around their brand name that they to be associated with. Correspondingly, their ads, celebrities, scripts, themes, backgrounds, etc will be based on these values. Today, it can be said that a big brand name warrants a big celebrity endorsing it. This helps the brand to penetrate the market rapidly which otherwise would have taken a lot longer through the word of mouth publicity. For example, if Wal-Mart launches itself in Mumbai, who’ll know it in Delhi if they solely depend on word of mouth publicity? In such a case, television commercials ensure huge consumer reach and celebrity endorsements will ensure high consumer recall. This high pan-nation is likely to convert to high sales and thus, higher profits. 12. Do you think celebrity brand ambassadors reciprocally benefit by endorsing brands? Celebrities are celebrities as long as they are on television. The moment they are out of sight, they are out of mind too. They too require continuous publicity and limelight to stay afloat... At no cost of their own they can achieve this through brand endorsements. All they have to do is shoot an ad for 7 days and enjoy the national visibility for a year, throughout all forms of media. So, in minimalistic efforts, they garner fan-following
  42. 42. throughout the year. This fan-following directly converts to movie ticket sales when their movies are released. 13. When do you think, would be the right time to move on from Hrithik? As long as Hrithik is able to garner sales for Sony Ericsson, he’ll be the preferred choice; however, when he’ll fail to move the audience and pursue them to buy SE handsets, it’ll be the time to move on. Anyways, in my opinion, that’s not going to happen anytime soon... Bibliography Marketing Management, 12 ed. – Philip Kotler Principles of Marketing – Philip Kotler Building Strong Brands – David A. Aaker Wikipedia Microsoft Encarta