SEMINAR ON CONTEMPORARY MANAGEMENT ISSUES {REPORT PRESENTATION}

IMPACT OF CELEBRITY ENDORSEMENTS ON OVERALL BRAND {Searching for the Right Match}

"Any brand can get a celebrity. That is easy. But getting a celebrity consistent with the right brand, to the right degree, at the right time, for the right purpose and in the right way... that is not easy."
Aristotle said, Beauty is a greater recommendation than any letter of introduction.

THE AIRTEL & IDEA WAY

THE HUTCH (Vodafone) WAY

Celebrity Endorsement in India {History}

Phase 1: The Pioneering Phase (1950-1980) This phase was characterized by: 1. Limited channels of communication 2. Demand exceeded supply 3. Heavy regulation and governmental regulations Some bigger companies from their global experience introduced the concept of celebrity endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since fifties.

 Phase 2: The Growth Phase (1980-1990) The introduction of television added a variable effective medium of communication. Indian stars going global with events like Asiads and World Cup victory. Vimal, Thums-Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. There was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure-cooker), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).

 Phase 3: Globalisation In highly competitive markets, the following realities about brand management exist: 1. Product differentiating factors are duplicable and imitable. 2. All long existing and successful brands imbue their products with a meaning.

AIDA MODEL
Action Interest Desire Attention

 S=P* D*AV -- the multiplier effect

S is a Successful Brand P is an Effective Product

D is Distinctive Identity AV is Added Values

The FRED Principle

F is for Familiarity
R is for Relevance E is for Esteem D is for Differentiation

Positive feelings and perceptions

Positive feelings and perceptions

What is a Brand?
a name, term, sign, symbol, or design, or a combination of them, intended to identify goods or services of one seller or a group of sellers and to differentiate them from those of competitor.

DEFINITION OF CELEBRITIES
Celebrities are people who enjoy specific public recognition by a large number of certain groups of people. They have some characteristic attributes like attractiveness, extraordinary lifestyle or special skills that are not commonly observed. Thus, it can be said that within a society, celebrities generally differ from the common people and enjoy a high degree of public awareness.

 Actors (e.g., Amitabh Bachchan, Shahrukh Khan, Aishwarya Rai, Preity Zinta, Aamir Khan and Pierce Brosnan). Models (e.g., Malaika Arora, Milind Soman, Naomi Campbell, , etc), Television Personalities (Hussain, Smriti Irani) Sports figures (e.g., Sachin Tendulkar, Sania Mirza, Anna Kournikova, Michael Schumacher, Tiger Woods, etc) Entertainers (e.g., Cyrus Broacha, Oprah Winfrey,) Pop-stars (e.g., Madonna, Shakira) Businessmen (e.g., Vijay Mallya, Bill Gates) Politicians. (e.g., Atal Bihari Vajpayee , Sonia Gandhi)

Brand Ambassador & Brand Face

A Brand Ambassador would be one who is an integral part of the brand which goes beyond just appearing on TV commercials. For example, Fardeen Khan is the brand ambassador for Provogue

Face would be the current celebrity appearing in the advertisement An example would be Sona Chandi Chawanpryash using Sourav Ganguly

Celebrity endorsements are impelled by virtue of the following motives: Instant Brand Awareness and Recall Celebrity values define, and refresh the brand image Celebrity adds new dimensions to the brand image Instant credibility or aspiration PR coverage Lack of ideas Convincing clients

IMPACT OF CELEBRITY ENDORSEMENT

THE PROCESS OF CELEBRITY ENDORSEMENT

Figure 1: The Meaning Transfer Model

BEAUTY,ELEGENCE

CREDIBILITY,TRUSTWORTHINESS

RISKS ASSOCIATED WITH CELEBRITY ENDORSEMENT

Negative publicity Overshadowing Overexposure Overuse Extinction Financial Risk -

CELEBRITY SELECTION
The TEARS Model
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. Attractiveness: For example - Tennis player Anna Kournikova who earns 10 Million dollars per year in just endorsement. Respect: For example - Former Miss World Aishawarya Rai and the Eye donation campaign. Similarity: For example - a child artist promoting a chocolate brand.

KINDS OF CELEBRITY-HOOD THEIR IMPACT ON BRANDS

Product Placements While the movie 'Taal' brandished Coke bottles unabashedly

 Celebrities CoOwning the Brand Madhuri Dixit and Emami 'Beauty secrets by Madhuri' range Fictional Heroes Shaktimaan has sold Parle-G, and Popeye single-handedly revived the consumption of spinach in the US.

 No More but Celebrities Still

campaigns created around a dead personality was the 'Kar lo duniya muthi mein' campaign for Reliance featuring Dhirubhai Ambani

Page 3 Celebrities

 Celebrities for a Cause

The Pulse Polio campaign being coordinated by UNICEF for the Ministry of Health and Family Welfare had Amitabh Bachchan and Sachin Tendulkar

Spoofing Mirinda spoofed the Hutch puppy (a celebrity in its own right).

 Mascots Ronald McDonald, the Amul girl

Men are from Mars, Women from Venus John Abraham lends his rugged image to Yamaha bikes while Priety Zinta lends her cute dimples to peddle Scooty.

 Celebrities Lending their Name to Brands

Sharukh Khan, Amitabh Bachchan and Rekha have perfumes named after them

Company Owners Being Celebrities

Vijay Mallaya and a Richard Branson who are walking talking celebrities and endorse their own brands through their extravagance, their flamboyant lifestyle

 Political Leaders
The 'India Shining' campaign from the BJP and the 'Congress ka haath aam aadmi ke saath' campaign from the Congress with Vajpayee and Sonia Gandhi lending their faces

Using a Social Proposition Built Within the Brand

The Surf campaign done by Revathy and Shabana Azmi (in the south and north respectively) which stressed on the prudent usage of valuable water was a social proposition cleverly inter-woven in the brand.

 Duration of Usage Promotional or Long Term Strategy short-term example is the Rani Mukherjee campaign for Bata which is believed to have helped boost sales for the ladie's footwear brand, Sundrop, by a whopping 500 per cent. The same Rani Mukherjee has a longer association with Fanta and Munch.

 Stealth Advertising
public no longer believes that celebrities actually use the products Revlon launched an online marketing campaign targeting female customers via chat rooms talking about who Revlon's new face would be, Halle Berry

Foreign Celebrities
Jackie Chan doing a Discover commercial or a Boris Becker doing a Siyaram commercial

 Unintentional Celebrity Endorsements the year before the late Princess Diana bought an Audi, they sold just about five hundred pieces in the UK. The following year sales figures were close to ten thousand mark John Abraham haybusa

Why Companies Use Celebrities - The Celebrity Edge

Psychological Factors a movie actress for beauty related products Propping Up Awareness and Trust Levels: Rahul dravid for bank of baroda To Communicate a Certain Message about the Company Sachin Tendulkar image for the launch of 'Victor' Value for Money: To Position their Brand Distinctively Celebrity Standing for a Single Brand: Zakir Hussain of 'Wah Taj' Taj Mahal tea & A. R. Rahman for Airtel

Advantages of a Celebrity Endorsing a Brand

Establishment of Credibility: Ensured Attention: PR Coverage: Higher Degree of Recall Associative Benefit: Mitigating a Tarnished Image Psychographic Connect Demographic Connect Mass Appeal: Rejuvenating a Stagnant Brand:

Figure 1: Factors Impacting a Brand while being viewed by a Consumer in Media

Certain parameters that postulate compatibility between the celebrity and brand image are:

Celebritys fit with the brand image Celebrity-Target Audience match Celebrity associated values Costs of acquiring the celebrity Celebrity-Product match Celebrity controversy risk Celebrity popularity Celebrity availability Celebrity physical attractiveness Celebrity credibility Celebrity prior endorsements Whether celebrity is a brand user Celebrity profession

Selection of Celebrity
Aspect of Brand Attractiveness Image Celebrity Product

Stylish

Trustworthiness

Reliable

Fardeen Khan Amitabh Bachhan Sachin Tendulkar

Provogue Reid & Taylor TVS Victor NIIT

Expertise

Knowledge Vishwanathan anand

All That Glitters is Not Gold - The Flip Side of Using Celebrities
Overexposure of Brand Ambassadors: Amitabh Bachchan sells Nerolac paints, Cadbury chocolates, Pepsi, Parker pens, Dabur Hajmola, Sahara homes, Reid and Taylor suits, Navratan oil, ICICI home loans, the list goes on. Brand Switching: For example when Aishwarya Rai and Aamir Khan shifted loyalties from Pepsi to Coke. Tarnished Public Image: Thums up too had to scrap its ads after Salman Khan got embroiled in the black-buck case & took Akshay. Creative Block: Eg. Palmolive had strong associations with Kapil Dev and the line 'Palmolive ka jawaab nahi'. After Kapil Dev retired it could never come up with an equally memorable campaign. Reel Not Equal to Real: Britney Spears who are Pepsi endorsers have been spotted drinking Coke.

 High Ad Costs Success of Brand Dependant on Success of Celebrity: Eg: Sachin's ad being shown after his wicket falls draws negative impressions about the brand. Celebrities Overshadowing Brands: Dinesh Suitings, where Sunil Gavaskar, the brand spokesperson, was allowed to rule the brand, thus becoming bigger than it. Once the association ceased, the brand lost its identity. Company Wars Through Celebrities: Pepsi's Sharukh Khan taking a dig at Hritik Roshan who endorsed Coke. Incongruity Between Brand and Celebrity Samsung sponsoring the Indian cricket team has no congruence and brand connect. Irresponsible Advertising Fardeen for pan masala & ajay for bagpiper stunt ads

CELEBRITY ENDORSEMENTS DOS AND DONTS

Consistency and long-term commitment Three prerequisites to selecting celebrities Celebritybrand match Constant monitoring Selecting unique endorsers Timing Brand over endorser Celebrity endorsement is just a channel Celebrity ROI Trademark and legal contracts

Multiple Brand Endorsement

As many as four products negatively influences the celebrity credibility and likeability

 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), ESPN-STAR Sports (the television channel), AirTel has just signed him on as its brand ambassador.

ONE BRAND MANY CELEBRITY

SINGLE BRAND ASSOCIATION OF A CELEBRITY

ZAKIR HUSSAIN
Product: Taj Mahal tea -- Slogan: Wah! Taj

Ustad Zakir Hussain's association with Taj Mahal tea, the premium brand from Hindustan Lever, is over a decade old. Zakir Hussain's association with the brand has made Taj Mahal tea it a household name.

A R RAHMAN
Product: Airtel -- Slogan: Live every moment

Cellular service provider Airtel roped in the 'Mozart of the East' Allah Rakha Rahman for its TV ad campaign in August 2002. It was for the first time ever that Rahman associated himself with any brand anywhere in the world. In the Airtel ad Rahman composed an original score and five ring tones exclusively for Airtel customers.

Vishwanathan Anand
Product: NIIT Ad Agency: Contract

Grandmaster Vishwanathan Anand is said to have refused more than one contract because he cannot concentrate on giving the sponsor his best and win his chess games at the same time.

Figure 2: The Symbiotic Model

IMPACT-ANALYSIS FRAMEWORK

Cases 1. Sharukh Khan - Mayur Suitings (Positive Impact) 2. Dharmendra - Rajdoot Motorcycles (Positive Impact) 3. Amitabh Bachchan (Cluttered Identity) 4. Rani Mukherjee - Hero Cycles (Negative Impact) 5. Hutch - The Child and the Dog (Created Spokesperson) 6. Mohammad Azharuddin - Britannia (Change of the Celebrity Image) 7. Narain Karthikeyan - Jordan / Formula 1 Racing (Entering International Markets) 8. Sachin Tendulkar - Fiat Palio (Financial Viability)

Figure 3: Brand-Celebrity Attribute Fit Matrix

AMITABH FOR PARKER

Product: Coca-Cola

AAMIR KHAN Slogan: Thanda Matlab Coca-Cola

A mawali from Mumbai, a Hyderabadi shopkeeper, a Jat farmer, a Bihari babu, and now a Nepali tour guide: Bollywood star Amir Khan has donned different avatars for the Coca-Cola television ads

AMITABH BACHCHAN
Product: Nerolac -- Slogan: Yeh rang hai jo har ek zindagi ko choota hai

Nerolac Paints, has roped in Bollywood superstar Amitabh Bachchan to endorse its products.

Narain Karthikeyan

Product: JK Tyre

Market insiders say India's racing star Narain Karthikeyan currently has sponsorship in the range of $1 million (from the Tata group, Amaron, Kingfisher and JK Tyres, among others). But the economics of motorsport is very much different from that of the others.

RESEARCH & ANALYSIS

Celebrity Positioning Matrix Product Positioning Matrix Area Correlation Matrix

Celebrity Effectiveness Index Total Area Correlation Score

Model Development

1. Creator / Innovator : e.g., White Goods 2. Caregiver : e.g ., Insurance Companies 3. Jester : e.g., Wafers 4. Magician : e.g., Hair oils for enhancing growth 5. Hero : e.g., Red & White Bravery Awards. 6. Ordinary Guy : e.g., Peter England 7. Lover : e.g., Beauty Soaps 8. Innocent : e.g., Johnson & Johnson 9. Sage : e.g., Newspaper 10. Outlaw : e.g., Jeans 11. Explorer : e.g., Jeeps 12. Ruler : eg., Tires

Celebrity

Brand

Alternate Celebrity*

Amitabh Bachchan
Shah Rukh Khan Sachin Tendulkar Saurav Ganguly Rahul Dravid Hrithik Roshan Aishwarya Rai Kareena Kapoor Saif Ali Khan

Polio
Santro TVS Victor Sona Chandi Chavanprash Hutch Tamarind (S. Kumars) Nakshatra Airtel Ruffle Lays

Shah Rukh Khan

Preeti Zinta Brett Lee Mohammed Kaif None None Katrina Kaif A. R. Rehman Nawab Pataudi

Preeti Zinta

Pepsi

Yuvraj Singh

Celebrity Effectiveness Index (CEI)

1. Amitabh Bachchan : CEI = 55 Creator/Innovator 2 Magician 6 Lover 5 Outlaw 1 Caregiver 8 Hero 8 Innocent 3 Explorer 2 2. Shah Rukh Khan : CEI = 54 Creator/Innovator 3 Magician 3 Lover 9 Outlaw 1 Caregiver 4 Hero 8 Innocent 3 Explorer 6

Jester 3 Ordinary Guy 1 Sage 8 Ruler 8

Jester 6 Ordinary Guy 1 Sage 3 Ruler 7

Polio Eradication Campaign:

Creator/Innovator 1 Magician 1 Lover 6 Outlaw 1

Caregiver 10 Hero 1 Innocent 1 Explorer 1

Jester 1 Ordinary Guy 1 Sage 10 Ruler 1

Saurav Ganguly: CEI = 42 Creator/Innovator 6 Magician 3 Lover 2 Outlaw 1 Caregiver 5 Hero 7 Innocent 2 Explorer 6 Jester 2 Ordinary Guy 1 Sage 2 Ruler 5

Mohammed Kaif : CEI = 35 Creator/Innovator 2 Magician 2 Caregiver 2 Hero 3 Jester 5

Ordinary Guy 8 Sage 1

Ruler 2

Lover 1
Outlaw 1

Innocent 6
Explorer 2

Sona Chandi Chavanprash:

Creator/Innovator 4 Magician 4 Lover 2 Outlaw 1

Caregiver 8 Hero 6 Innocent 1 Explorer 2

Jester 2 Ordinary Guy 1 Sage 5 Ruler 3

Calculation of Area Correlation

Brand

Success Celebrity 224

177

Failure Celebrity 162

92

Polio
Sona Chandi Chawanprash

Volume Growth in Celebrity endorsement on T.V.

Share of Celebrity Profession on TV during 2007.

Share of Top 10 Categories with Celebrity endorsement advertising volumes.

CONCLUSION
There is a gradual shift from the traditional approach of showing celebrities in advertisement to making them the spokes-person of the brand. Celebrity endorsements do work in the Indian scenario.

The consumer looks for a variety of aspects from the endorsement like the credibility and likeability of the endorser. Multiple endorsements do clutter the minds of the consumer.

 When one endorser endorses many brands, then the recall of the endorsement depends entirely on the power of the brand.
It is not just the financial gains from the endorsements that matter to the celebrity. They also look for the fit with the brand and what the endorsement might do to their image.

Professional performance of the endorser is important in deciding the success of the endorsement. bad performance causes negative impact to the endorsements. Regional appeal factors, popularity, attractiveness, belief system are important platforms which impact celebrity endorsement.

The

End