The
article focuses on celebrity endorsement and its use
by marketers. It also explains the problems that marketers
face when they do not choose the right celebrity for
their brands.
INTRODUCTION
Celebrity endorsements pull in hundreds of crores every
year, and are widely preferred by marketers to promote
their products. Using celebrities for endorsing brands
has become a trend for building the brands as well as
the company's image.
Who
are these celebrities? What does celebrity endorsement
mean?
A celebrity is a person who is well recognized by the
public, and has a reputation for his/her expertise in
his/her chosen field. Sports persons and film stars
fit the bill perfectly. Promotion of a company's products
through these celebrities is termed as celebrity endorsement.
Why
in general are they preferred by marketers?
The company makes use of the celebrity's characteristics
and qualities to establish an analogy with the products
specialties with an aim to position them in the minds
of the target consumers. Celebrity endorsement, thus,
is one of the powerful tools adopted by companies/marketers
to consolidate their brand(s) in the crowded marketplace.
Consumers prefer to own a brand that has a good reputation,
and when someone like a famous film star or a sport
star is associated with that particular brand, it is
obvious that the consumers will get attracted to it,
because the consumer wants to maintain some status,
and feels that using a brand promoted by a star can
satisfy their need better.
There
is a myth that celebrity endorsement is used to give
a brand advantage over its competitors. However, choosing
a celebrity for this purpose requires considerable amount
of calculations. There should be something common between
the brand and the celebrity promoting it.
WHY
CELEBRITIES?
A company needs to create awareness and interest in
the consumers mind when it unveils a new brand or product.
To be successful, brands need to convince consumers
that they carry a different image and value from other
competing products. In other words, brands have to show
their true personality to the potential consumer(s).
An
effective way to do this is through celebrity endorsements.
As MG Parmeswaran, executive director of an leading
ad agency says, "As advertising professionals,
we recommend celebrity endorsements when the case is
justified. There are many cases where you need to use
the celebrity to break out of a category clutter. At
times, celebrity endorsement is used to build credibility
to the brand offer." People always wish to see
their favorite stars and marketers, and advertisers
are quick to capitalize on such ideas.
Endorsement
of a product/service by a celebrity gives out the message
that it is as authentic and credible as the celebrity
is. The urge that people have of enjoying the same recognition
and status like their favorite stars is often the main
reason for the increasing use of celebrities for products/services
endorsement.
Celebrities increase brand awareness and define values
and new dimensions of the brand. Marketers use this
approach to capture mind and market spaces for their
brands. The underlying reason for any celebrity endorsement
has to be more sales, with more consumers using the
brand.
There
are lots of ads on the television, the radio, and even
in theatres these days, and most of these ads feature
either film stars or cricketers, or both. As a result,
it is becoming increasingly tough to ensure that one's
share of voice is heard. Using a celebrity in an ad
is, therefore, much effective, in that it captures a
definite mindshare of the prospective consumer, and
if the features and attributes of the brand match with
those of the celebrity, the brand will surely be hit.
Why
Rahul Dravid chosen to promote Castrol Brand?
Rahul Dravid is considered the most dependable batsman
in the Indian team, and he transfers this characteristic
of reliability and dependability to the brand(s) he
endorses. The reason why Castrol uses Dravid to promote
its engine oil seems to be logical, as the company wants
to convey to the target customers that Castrol is dependable,
and gives the vehicle a long life.
CHOOSING
THE RIGHT CELEBRITY
Amitabh
Bachchan, Shahrukh Khan, Hrithik Roshan, Sachin Tendulkar,
and Sourav Ganguly figure among a handful of celebrities
who have been endorsing brands. The use of a celebrity
should help in building the brand's image. The pros
and cons of using a particular celebrity have to be
considered before using them for endorsements.
Credibility
of the celebrity is often one of the basic factors in
determining his/her suitability for the endorsement.
Marketers have to check if there exists a match between
the brand and the celebrity, and whether the deal is
worth the investment.
There
are some basic criteria for selecting the right kind
of celebrity for a brand. They are:
The celebrity's image has to fit with the advertising
idea and match the target audience and the product;
Values, popularity, and the availability of the celebrity;
Cost of acquiring the celebrity;
Previous endorsement (if any),
The celebrity's profession.
There should be a synergy between the celebrity, the
ad message and the product. This helps in the customers
developing an interest towards the brand.
SUCCESSFUL
ENDORSERS
Celebrity endorsements have found good acceptance among
the customers as an effective way of promoting brands.
In a survey, it was found that in 20% of TV ads in the
US feature celebrities, most of them from the sports
arena, and these are done to gain ground in the consumers'
minds with their interest for sports and sport stars.
Some of the well known and of course successful endorsers
at International level and national level are briefed
below.
International
Endorsers:
Michael
Jordan
Nike has benefited from using Michael Jordon, the famous
basket ball player by getting him endorse its shoes.
Things have worked Nike's way, as basketball is a highly
popular sport in the US and when someone like Michael
Jordan says he uses Nike, it indeed creates a huge impact
on the minds of the consumers. Nike has, in a way, justified
its use of Jordan through the profits it made.
David
Beckham
David Beckham, the soccer player from the UK, is an
icon both as a footballer and as an individual. His
gaming skills, stylish looks and lifestyle, have got
him good recognition and a great fan following all over
the world.
When it comes to endorsements, analysts consider Beckham
next only to Michael Jordan. He has been associated
with quite a few brands like Pepsi, Vodafone, Adidas,
Gillette, Police, Brylcream, etc. His lifetime deal
with Adidas alone earns him $160 mn, with many of his
other endorsements being successful.
Tiger Woods
Tiger Woods, the top golfer, has been associated with
Nike and Accenture3. The first 5-year deal he signed
with Nike was worth $40 mn, and the company later extended
that. According to an estimate by Forbes magazine, Tiger
Woods had made as much as $78 mn between June 2002 and
June 2003, of which a meager $7 mn (9% of total) was
from his tournaments.
Indian
Endorsers:
In the Indian context also, there have been quite a
few examples of brands, which have been successful after
being endorsed by famous personalities. The trend kicked
off with movie and television stars being used for the
endorsements. Further, in India, cricket is followed
like a religion and has, thus, turned to be a breeding
ground for stars who can be used by marketers. Marketers
have been very quick in identifying this, and started
using cricket stars to endorse their brands/products.
Both category of endorsers are briefed below.
Amitabh
Bachchan
Amitabh Bachchan has been endorsing many brands for
quite some time now. Companies have been in a mad rush
to include Bachchan in their promotions to attract customers,
because of the following and respect the senior and
talented star carries. It is a sort of belief for every
marketer and company that he can endorse any brand or
any product and that the association will win customer
attention. Some of the brands that this great man endorses
are Cadbury chocolate, Nerolac paints, Pepsi, Parker
pens, ICICI, Dabur and many more. This kind of reputation
has often led companies to spend huge amounts on signing
film stars.
Shahrukh
khan
Shahrukh khan also has been in the endorsing business,
and his endorsements include Pepsi, Hyundai Santro and
Videocon to name a few.
Kapil
Dev
Kapil Dev, the great Indian cricketer and "Wisdom
Indian Cricketer of the Century", used to endorse
Palmolive and Boost during his tenure in the Indian
cricket team.
Sachin
Tendulkar
Sachin Tendulkar, also referred to as the little master,
who carries a nation's hope on his shoulders in every
game that he plays. Tendulkar has been associated with
nearly a dozen brands, and companies have been paying
him some hundreds of crores of rupees to vouch for their
brands. The little master has given his charismatic
touch to brands like MRF, Pepsi, Boost, TVS, Airtel,
etc.
SOME
CONCERNS
Celebrities can build brands, and at the same time,
companies may have to fold up if the endorsement does
not click with the target audience. Marketers need to
be careful before choosing a celebrity for endorsing
their brand, as they spend huge amounts on their brands
and also on the celebrity.
The brand can only fare well in the market if it can
generate some bonding or relationship with the endorser.
If this fails, the consumer may get confused, and that
could hamper the future prospects of the brand. Experts
opine that companies have to be careful in choosing
the right celebrity for promoting their brands, which
could otherwise land them in trouble.
The
erroneous choice of a celebrity for endorsing the brand
can cause the expectations of the company and the sales
to fail. This way, not only does the brand lose its
identity, even the celebrities' image could be at risk
for being associated with a failed brand. Ads featuring
the celebrities should never allow the celebrities'
image to overshadow the brand itself. When Maruti launched
their family car `Versa', the company had decided to
use Amitabh and Abhishek to feature in its ads. The
ads were successful, but they could not create sales
as the consumers were expecting a much better product
after seeing Amitabh in the ad.
These
days, there is an intense rush of commercials on the
small screen as fillers between serials, movies, star
shows, cricket matches, news and many other programs.
The information overload caused due to excessive use
of the same or different stars across the same or different
products can lead to confusion among the consumers.
Consider Amitabh Bachchan who lends his charisma to
so many brands. Every now and then, we find him on television
or in the print ads endorsing one product or another.
Whether it is Cadbury chocolate, Nerolac paints, Pepsi,
Parker pens, ICICI or Dabur products, finding Amitabh
everywhere may not appeal much to the consumers, who
will fail to understand what values he stands for. Although
he is considered the darling of the media men and some
brands have gained from his association, it might not
happen with all the brands. Commoditization of anything
eventually makes it lose its significance.
According to an expert, "There are five reasons
why celebrity endorsements won't work. They are: Improper
positioning, Brand-celebrity disconnect, Clutter, Dissatisfaction
with product quality/performance, and Confusion/Skepticism".
THE
OTHER WAY (WHAT WITHOUT CELEBRITY ENDORSEMENTS?)
The
other face of the argument is that some companies' promotions
were successful even though they never used stars to
endorse their brands in the market. Raymonds has never
shown celebrities in its ads. Its ads just explore the
relationship between a father and son, wife and husband,
teacher and student(s) etc. The attributes of the brand
and the benefits of the product, which have been perfectly
reflected in the ads, have helped Raymonds to touch
a chord with the consumers, elevating it to its iconic
status. Brands such as AMUL, Asian Paints never used
a celebrity, but were still able to reach the masses.
While Asian paints used a Gattoo symbol with a paintbrush
in hand, AMUL used a small girl as the company's logo.
Both the companies have given the consumers reliable
and quality products and, thus, gained considerable
market share. The most recent example of a brand that
has done pretty well to grab the attention of consumers
is `Hutch', which featured a small kid with a dog, not
a celebrity!
CONCLUSION
It will be only a matter of time before companies realize
that using a celebrity alone cannot guarantee the success
of their product. Even if marketers feel to use them
then they do seem to have some good plans in selecting
the stars for their endorsements, considering only those
stars who have had some sort of consistent success stories
in their career than opting for "one-time wonders".
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