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  1. 1. How to Sell with Celebrities
  2. 2. "What do I wear in bed? Why, Chanel No.5, of course."
  3. 5. <ul><li>“ One approving nod from a famous face can translate into millions in brand sales.” </li></ul>
  4. 6. What do they Advertise? <ul><li>David Beckham </li></ul><ul><ul><li>Vodaphone, Pepsi, Real Madrid </li></ul></ul><ul><li>Annika Sorenstam </li></ul><ul><ul><li>Calloway Golf, Mercedes Benz </li></ul></ul><ul><li>Michael Jordan </li></ul><ul><ul><li>Nike, Gatorade, Hanes </li></ul></ul><ul><li>Tiger Woods </li></ul><ul><ul><li>Buick, EA, Nike </li></ul></ul>
  5. 7. Why do Stars Make Sense? <ul><li>What do you think? </li></ul>
  6. 8. Why do Stars Make Sense? <ul><li>Establishes credibility for target audience </li></ul><ul><ul><li>Creates a sense of trust </li></ul></ul><ul><ul><li>Great for new products, especially from an established company </li></ul></ul><ul><li>Attracts attention </li></ul><ul><ul><li>Breaks through hundreds of advertisements making the brand more easily visable </li></ul></ul>
  7. 9. Why do Stars Make Sense? <ul><li>Associative Benefit </li></ul><ul><ul><li>If the celebrity uses the product and improves, so will the consumer </li></ul></ul><ul><li>Psychographic Benefit </li></ul><ul><ul><li>Since stars are loved, the feeling toward them may translate to the product </li></ul></ul><ul><ul><ul><li>Imitating the favorite sports or movie star </li></ul></ul></ul><ul><ul><li>“ I am Tiger Woods.” </li></ul></ul>
  8. 10. Why do Stars Make Sense? <ul><li>Demographic Connect </li></ul><ul><ul><li>Reaches a specific target audience based on… </li></ul></ul><ul><ul><li>Age, gender, wealth, geography </li></ul></ul><ul><li>Mass Appeal </li></ul><ul><ul><li>Universal, able to reach more demographic audiences </li></ul></ul>
  9. 11. Critics Against Celebrity Ads <ul><li>Why do you think celebrities are sometimes a bad idea? </li></ul>
  10. 12. Critics Against Celebrity Ads <ul><li>Brands need to have an identity </li></ul><ul><ul><li>The product must stand for something, and the celebrity should sell what the product stands for </li></ul></ul><ul><li>“ I use this product, and so should you,” does not work </li></ul><ul><ul><li>Customers are now receiving more information from a variety of sources: </li></ul></ul><ul><ul><li>Internet, consumer awareness groups, competitors </li></ul></ul>
  11. 13. Why Celebrity Ads Fail <ul><li>Improper Positioning </li></ul><ul><ul><li>Relying on the celebrity name only does not work: </li></ul></ul><ul><ul><ul><li>“ Just because I use it, everyone should. No matter what the product is.” </li></ul></ul></ul><ul><li>Brand Celebrity Disconnect </li></ul><ul><ul><li>The celebrity does not match the product </li></ul></ul><ul><ul><li>E.g. Britney Spears for a Toyota family car Soluna Vios. </li></ul></ul>
  12. 14. Why Celebrity Ads Fail <ul><li>Clutter Flutter </li></ul><ul><ul><li>Too many celebrities doing advertisements reduces the advantage of this technique </li></ul></ul><ul><ul><li>The same celebrity advertises many products </li></ul></ul><ul><li>Dissatisfaction with the Product Quality </li></ul><ul><ul><li>Quality is more important than style </li></ul></ul><ul><ul><li>No celebrity can sell a flat soccer ball </li></ul></ul>
  13. 15. Why Celebrity Ads Fail <ul><li>Confusion Skepticism </li></ul><ul><ul><li>Remembering what the celebrity is advertising </li></ul></ul><ul><ul><ul><li>Celebrity is so funny/interesting, the product is lost </li></ul></ul></ul><ul><li>Skeptical Questions: </li></ul><ul><ul><li>Is it possible that the celebrity was helped this much by the product? </li></ul></ul><ul><ul><li>How much did the company pay the person to join? </li></ul></ul>
  14. 16. Risks with Celebrities <ul><li>Celebrity Mistakes </li></ul><ul><ul><li>Trouble with the law/drugs, scandals </li></ul></ul><ul><ul><li>E.g. Magic Johnson HIV issue </li></ul></ul><ul><li>Company Reaction to mistakes </li></ul><ul><ul><li>Continuing w/celebrity may affect the image (Guilty by association) </li></ul></ul><ul><ul><li>Finding a new celebrity is very expensive </li></ul></ul><ul><li>Company may already be defined by celebrity </li></ul>
  15. 17. Hedging the Risk <ul><li>Look for perfect criminal and personal record </li></ul><ul><li>Try to use more than one celebrity </li></ul><ul><ul><li>Pepsi: Several Cricket, Basketball, and Film stars </li></ul></ul><ul><li>Avoid the Force-Fit </li></ul>
  16. 18. Avoiding the Force Fit <ul><li>Choose the celebrity based on the product </li></ul><ul><ul><li>Never choose the celebrity and design the message around them </li></ul></ul><ul><ul><li>The celebrity is not the ad, rather the means of communicating a specific message </li></ul></ul><ul><li>Add a celebrity after developing identity </li></ul><ul><ul><li>Avoid using advertising to create the identity </li></ul></ul><ul><ul><li>Protects against celebrity failures </li></ul></ul>
  17. 19. So Why a Tiger? <ul><li>Why is Tiger Woods a marketers dream? </li></ul>
  18. 20. So Why a Tiger? <ul><li>Many believe that Tiger Woods is a Marketers Dream </li></ul><ul><li>Let’s look at his strong relationships with the products/companies that he sponsors. We will focus mainly on Nike Golf </li></ul>
  19. 21. Tiger plays golf... <ul><li>Golf </li></ul><ul><ul><li>Number 1 Player in the world for many years </li></ul></ul><ul><ul><li>Recognized as one of the best players in history </li></ul></ul><ul><ul><li>Well respected by his competitors </li></ul></ul><ul><ul><ul><li>Player of the Year Title is chosen by the players </li></ul></ul></ul>
  20. 22. Tiger works with good people... <ul><li>Companies </li></ul><ul><ul><li>Contain own strong identities: </li></ul></ul><ul><ul><ul><li>Buick, EA, Nike </li></ul></ul></ul><ul><ul><li>Nike: More than one celebrity </li></ul></ul><ul><ul><ul><li>If he fails, the company may not </li></ul></ul></ul><ul><ul><li>Tiger’s association with one company helps sell products for other companies (association) </li></ul></ul><ul><ul><ul><li>E.g. Wears a Nike hat in other commercials </li></ul></ul></ul><ul><ul><li>Companies are all associated with Golf </li></ul></ul><ul><ul><ul><li>Buick Classic Golf Tournament </li></ul></ul></ul><ul><ul><ul><li>EA Sports Golf Game </li></ul></ul></ul>
  21. 23. Tiger’s Product Mix Age 5 Age 95 Age 45
  22. 24. Tiger hits the rich and poor... <ul><li>Good two parent family </li></ul><ul><ul><ul><li>Father African American, Mother is from Thailand </li></ul></ul></ul><ul><ul><ul><li>Family was not wealthy </li></ul></ul></ul><ul><li>Beautiful Wife </li></ul><ul><ul><ul><li>Model from Swedan </li></ul></ul></ul><ul><li>Good looking, very smart </li></ul><ul><ul><ul><li>Attended Stanford, </li></ul></ul></ul><ul><ul><ul><li>Writers often comment about his intellect </li></ul></ul></ul><ul><li>Name and face are easy to recognize </li></ul><ul><li>Clean criminal & personal record </li></ul>
  23. 25. Tiger is liked by bad golfers... <ul><li>Tiger supports a high quality product </li></ul><ul><li>Poor golfers (golfers starting out) </li></ul><ul><ul><li>Will try anything to improve their game </li></ul></ul><ul><ul><li>Do not know what brand to choose between 30 </li></ul></ul><ul><ul><li>Became interested in golf because of Tiger Woods </li></ul></ul><ul><ul><li>Tiger Woods products are stylish </li></ul></ul><ul><ul><li>May own the Tiger Woods video game </li></ul></ul><ul><ul><li>May want to “be like Tiger.” </li></ul></ul>
  24. 26. Tiger is liked by good golfers... <ul><li>Tiger supports a high quality product </li></ul><ul><li>Strong golfers (great players) </li></ul><ul><ul><li>Often look for a new edge </li></ul></ul><ul><ul><li>May own a Buick or other Tiger sponsored products </li></ul></ul><ul><ul><ul><li>Feel of a champion (emotional connect) </li></ul></ul></ul><ul><ul><li>Tiger’s clubs and ball are customized but… </li></ul></ul><ul><ul><ul><li>Not everyone knows this fact </li></ul></ul></ul>
  25. 27. Everyone likes our Tiger... Low Wealth High Wealth Poor Golfers Strong Golfers
  26. 28. Nike Golf Ball Market Share
  27. 29. Nike Golf Ball Market Share <ul><li>Golf balls contain the 2nd most lucractive industry margins ($500 million annually) </li></ul><ul><li>Since Tiger joined, golf balls have earned Nike $72 million GM on a $100 million contract </li></ul><ul><li>Note: Tiger sells other Nike products besides golf balls </li></ul>
  28. 30. Conclusion: It’s about... <ul><li>Celebrities can communicate, but not save a product! </li></ul><ul><li>Tiger is a fit for his products, better than anyone else out there today. </li></ul>
  29. 31. Q Scores Company Performer Q Sports Q Dead Q measures familiarity and appeal in a variety of categories to determine targeted audience attraction