Advt Desk Project

8/8/2019 Advt Desk Project

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IMPACT OF CELEBRITY

ENDORSEMENTS ON

OVERALL BRAND

SUBMITTED BY:

ANUSHREE GUPTA

GIRISH GIANCHANDANI

MANISH SEJWAL

SHIVAM SACHDEVA

AMIT TAYAL

PIYUSH NAGPAL


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INTRODUCTIONThe 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.

Everyday consumers are exposed to thousands of voices and images in magazines,

newspapers, and on billboards, websites, radio and television. Every brand attempts to

steal at least a fraction of an unsuspecting persons time to inform him or her of the

amazing and different attributes of the product at hand. The challenge of the marketer

is to find a hook that will hold the subjects attention.In helping to achieve this, use ofcelebrity endorsers is a widely used marcom strategy.

Aristotle said, Beauty is a greater recommendation than any letter of introduction.

This could aptly summarize why innumerable products are endorsed by celebrities,

with or without a significant need or benefit from the same.

Similarly every product has an image. The consumer tries to consume a brand which

has the maximum fit with his/her own personality/image. The celebrity endorser fits

in between these two interactions, where he tries to bring the image of the product

closer to the expectation of the consumer, by transferring some of the cultural

meanings residing in his image to the product.

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 paper is to analyze the role of Celebrity Endorsement in the process of

brand-building by taking appropriate examples from the advertising landscape.

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DEFINING THE MEANING & SCOPE OF THE

TOPIC

BRANDING & CELEBRITY ENDORSEMENT

Today, use of celebrities as part of marketing communication strategy is fairly

common practice for major firms in supporting corporate or brand imagery.

What is a Brand?

The Dictionary of Business & Management defines a brand as:

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.

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In this age of intense competition, where capturing a position in the consumers mind

space is extremely tough, celebrity endorsements give an extra edge to the companies

for holding the viewers attention. Celebrities can catalyze brand acceptance and

provide the enormous momentum that brands require by endorsing the intrinsic value

to the brand.

Like actors (e.g., Amitabh Bachchan, Shahrukh Khan, Aishwarya Rai,, Preity Zinta,

Aamir Khan and Pierce Brosnan).

Models (e.g., Mallaika Arora, Milind Soman, Naomi Campbell, etc),

Television Personalities (Husain, Smriti Irani),

Sports figures (e.g., Sachin Tendulkar, Sania Mirza, Anna Kournikova, Michael

Schumacher, Tiger Woods, etc),

Entertainers (e.g., Cyrus Broacha, Oprah Winfrey,),

And pop-stars (e.g., Madonna, Shakira).

But also for less obvious groups like businessmen (e.g., Vijay Mallya, Bill Gates) or

politicians.Clebrities appear in public in different ways.

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. Celebrities might endorse as a brand ambassador or a brand face.

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THE PROCESS OF CELEBRITY ENDORSEMENT

The process of celebrity endorsement is more of meaning translation & meaning

application. A deeper insight into this complex process is provided by the following

theory.

The Meaning Transfer Model

McCracken, the author to this model, has suggested that, The effectiveness of the

endorser depends, in part, upon the meaning he or she brings to the endorsement

process. The celebrities effectiveness as endorsers stems from the cultural meanings

with which they are endowed. It is a three-stage process of meaning transfer thatinvolves the formation of celebrity image, transfer of meaning from celebrity to the

brand, and finally, from the brand to the consumer.

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The Meaning Transfer Model

To explain it with the help of an example, we can take the case of Amitabh Bachhan

and Polio Drops Campaign. He connects very well with every segment and every age,

so there was a huge possibility of Mr. AB being able to convince the masses and in

which he has succeeded.

Culture

The celebrities deliver meanings with extra subtlety, depth and power than

anonymous models. Celebrities offer demographic information with special precision

and configurations of range of personality and lifestyle meanings. They evoke the

meanings in their persona with greater vividness and clarity.

Celebrities actually own their meanings because they have created them on the public

stage by dint of intense and repeated performance. They pass these meanings into

advertisements through meaning transfer process. Preity Zinta, for example, is

perceived as a fun-loving, vivacious and modern Indian woman.

Endorsements

The meaning transfer model proposes that the marketing / advertising firm at first

should determine the symbolic properties sought for the product. Thereafter, they

should consult a host of celebrities and their associated meanings. Finally, after

considering budget and availability constraints, the celebrity should be chosen to

represent the appropriate symbolic properties. The chosen celebrity will have some

meanings associated with it which is not sought after for the product. Theadvertisement program should take care about keeping the unwanted meanings out of

the evoked set and capture only the salient meanings. The advertisement must be

designed to highlight the essential similarity between the celebrity and the product.

Consumption

Consumers constantly search for the object world which gives them access to

workable ideas of demography, personality, lifestyle and culture. McCracken suggests

that this stage of the model is most complex, as consumers must claim, exchange, care

for and use the consumer goods to appropriate its meanings.

Celebrities play a major role in this stage as they have created their own self, which

makes them exemplary and inspirational figure to the consumers. Consumers try to

emulate the celebrities admired by them and try to find out the meaning in the similar

fashion. Celebrities bring the dramatic roles, fashioning cultural meanings into a

practicable form.

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RISKS ASSOCIATED WITH CELEBRITY

ENDORSEMENT

The concept of Total Branding is slowly emerging and many companies are

focusing on that. They are emphasizing on their best practices, customer relationship

management, and employee training and knowledge management. Internal brand

management, under which the company ensures that employees and channel partners

are convinced about the brand, is becoming particularly important, for they are the

ones who have to deliver. Thus, the celebrity endorsement can be considered only as a

carrier of whats inside.

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 celebrityendorsement involves the behavior of the celebrity. 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.

The various risks associated with celebrity endorsements are as follows: -

Negative publicity - If the celebrity is strongly associated with the brand then the

occurrence of the negative publicity can spill over the brand.. E.g., Salman Khan lost

his endorsement deal with Thumbs-Up after his infamous incidents like buck-killing

and rash-driving.

Overshadowing - When celebrity endorser is used, the risk of consumers focusing

on the celebrity and not on the brand exists.

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.

Overuse - Sometimes the company can use many different celebrities to appeal todifferent market segment. But multiplicity of endorser might blur the image.

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Extinction - The favorable 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.

Financial Risk - The decision for hiring an expensive endorser may not be alwaysfeasible if there is a poor brand fit.

Therefore, for celebrity endorsements to work effectively there are some fundamental

ground rules: -

Clear brand promise and brand personality.

The communication objectives for the campaign should be frozen.

Focus must be on the synergy between the brand and the celebrity image

Establish explicitly what the celebrity is going to communicate

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WHY CELEBRITY ENDORSEMENT FAILS?

There maybe 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 ofcelebrity 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

shouldnt 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.

The Solutions

As discussed, celebrity management is very crucial to avoid the brand-celebrity

disconnect, and subsequently, brand failures. If the consumers have questions in their

minds regarding the quality or performance of the product then even God cannot save

the brand. 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. 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.

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FINDINGS

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 selectionis 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.

Similarity between the target audience and the celebrity is the third importantattribute. 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.

Apart from that, expertise is also believed to be another important attribute.

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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. Eg. Hema Malini for B.J.P. , Govinda for

Congress , Amitabh Bachchan for S.P..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. Similarly, actress Rani Mukherjee has turned the tables for Batas ladies footwear

brand called Sundrop as sales increased by a whooping 500%.

Celebrity endorsements are impelled by virtue of the followingmotives: -

- 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

WHY COMPANIES USE CELEBRITIES - THE

CELEBRITY EDGE

- Psychological Factors: Celebrities generally satisfy the 'esteem needs' of an

individual. For example a movie actress is expected to possess a flawless skin and a

blemish free face. Her fans want to know the secret of her beauty, so she becomes a

natural endorser for beauty related products (cosmetics, soaps, powder).

- propping Up Awareness and Trust Levels: Rahul dravid - bob

- To Communicate a Certain Message about the Company:

Sachin Tendulkar as brand ambassador gave it the desired facelift and image for the

launch of 'Victor'- Value for Money:

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- To Position their Brand Distinctively: Lux worldwide has positioned itself as the

'soap the filmstars use'. From Leela Chitnis to Aishwarya Rai, all top actresses have

modeled for Lux.

- Celebrity Standing for a Single Brand:Think Zakir Hussain and you are reminded

of 'Wah Taj' Taj Mahal tea. Ditto with A. R. Rahman for Airtel.

IMPACT OF CELEBRITY ENDORSEMENT

The increasing number of endorsements throws a valid question to the consumers. Is

there a science behind the choice of these endorsers or is it just by the popularity

measurement? What are the reasons which lead to impact of celebrity endorsement on

brands?

Through research and analysis, this paper develops a 14 point model, which can be

used as a blueprint criterion which can be used by brand managers for selecting

celebrities, and capitalizes the celebrity resource through 360 degree brand

communication, since our research proposes it as the foundation brick of the impact of

celebrity endorsement. Our study reveals that the impact of celebrity endorsement is

proportional to the 14 factors discussed in the model.

The success of a brand through celebrity endorsement is a cumulative of the following

14 attributes. Greater the score of the below parameters, greater are the chances of

getting close to the desired impact.

Fit with the Advertising Idea

One of the most successful celebrity endorsement campaigns which reflect the fit

between the brand and the 360 degree advertising fit is Fardeen Khan and Provogue.

Provogues positioning in the apparel market is of a young, active, party-going,

attention-grabbing brand and so is Fardeen Khan. The conjunction between the two

has been immensely impactful and brand managers have utilised this endorsementthrough 360 degree reinforcement.

Celebrity-Target Audience Match

Smriti Irani endorsing the WHO recommended ORS Campaign in India. Indian

mothers can associate with Smriti Irani through the facets she projects on screen or in

regular life which helps develop a connect with the target audience since mothers

medicate their children with ORS.

Celebrity Values

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Tabu endorsing Tetra Packed Milk, Shabana Azmi campaigning for AIDS Awareness,

Amitabh Bachchan & Shahrukh Khan campaigning for Pulse Polio or Aishwarya Rai

appearing in the Donate Eyes campaign are few examples, which reflect the transfer

of celebrity values to the brand, creating an impact that generates recall.

Costs of Acquiring the Celebrity

Recently, a newspaper report showed how cola firms had gone beyond their

advertising budgets to get the best celebrities. Small firms that use celebrities

services run greater risks if they invest large amounts. Although nobody is willing to

say exactly how much celebrities get paid, industry sources say Sachin Tendulkars

price is believed to be between Rs. 2.0-2.5 crores per endorsement, and musician A.

R. Rehman, who had signed up with AirTel, is believed to have picked up Rs. 1.75

crores. Film-star Hrithik Roshan was rumored to have picked up Rs. 2 crores for the

Fly With Hrithik campaign to push Close-Up, and Shahrukh Khans rate seems to be

between Rs. 2.5-3.0 crores. Aishwarya Rai apparently picks up Rs. 1.25 crores for an

endorsement and the Indian cricket captain Saurav Ganguly is believed to get between

Rs. 90 lakh to Rs. 1.5 crores, while film-star Aamir Khan apparently makes Rs. 1.5

crores per endorsement.

Celebrity Regional Appeal Factors

R. Madhavan endorsing Pepsi in southern India or Sachin Tendulkar endorsing in

India are few examples of how celebrities are chosen to reach out to target audiences

for brands in regional markets.

Celebrity-Product Match

Cyrus Broacha is the brand ambassador for MTV since both the celebrity and the

brand are considered as friendly, young, mood-boosting, humorous and outspoken.

MTVs brand personality overlaps Cyrus Broachas image as a brand.

Some more examples of compatible celebrity product match in which celebrity brand

attributes get transferred to the brand and increases the brand equity is of Govinda &

Navratan Tel, Aishwarya Rai & Nakshatra, etc.

Celebrity Controversy Risk

The perfect example here is of Salman Khan and the controversy in which he crushed

a man to death with his Pajero when he was driving under the influence of alcohol.

Also, any act on the part of the endorser that gives him a negative image among the

audience and goes on to affect the brands endorsed. The brand, in most instances,

takes a bashing.

Celebrity Popularity

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Celebrity Brand association like Garnier endorsed Tara Sharma & Simone Singh,

Agni Diamonds & Riama Sen dont get much brand recall, and even if they do, its

difficult to attribute it to the celebrities endorsing the brand.On the other hand, HPCL

has had increased popularity and share of voice due to the endorsement of the brand

through Sania Mirza.

Celebrity Availability

In case of various brands, there are situations in which they prefer to go without a

brand face, since there is no brand-fit between the celebrities available and the brand.

Also, due to multiple endorsements by certain celebrities, brands refuse to adopt

celebrity endorsement since they fear dilution of the brand image.

Celebrity Physical Attractiveness

John Abraham endorsing Wrangler and Timex Sunglasses are some examples whichportray the celebrities physical attractiveness that helps create an impact.

Celebrity Credibility

The most important aspect and reason for celebrity endorsement is credibility. In a

research carried out among 43 ad agencies and companies, most experts believed that

the most important dimensions of credibility are trustworthiness and prowess or

expertise with regard to the recommended product or service. One of the most

obvious reasons of Amitabh Bachchan endorsing plethora of brands is the credibility

of the celebrity and his recognition across consumers.

To site one of the most successful campaigns in which the celebritys credibility has

had an indelible impact on the brand and has saved the brand is of Cadburys. After

the worm controversy, Amitabh Bachchans credibility infused into the brand through

the campaign, helping it to get back on track. The campaign has won an award for the

same.

Multiple Endorsements

Not many people can remember all the brands that a celebrity endorses and the

chances of losing brand recall increases if the celebrity endorses multiple brands. For

example, in case of Sachin Tendulkar people recall Pepsi, TVS Victor and MRF, but

might not remember brands like Britannia and Fiat. Similarly, for Amitabh Bachchan,

consumers remember ICICI, Pepsi, Parker Pens, Pulse Polio and BPL. They might get

confused in the endorsement of Nerolac or Asian Paints. Thus, for multiple

endorsements where the same celebrity endorses several brands, it boils down to the

strength of the brand and the advertising content.

Whether Celebrity is a Brand User

Various celebrities endorse NGOs and social causes since they believe in the social

message that they need to convey to the audience. One of the most successfulcampaigns has been executed by PETA in which celebrities like Shilpa Shetty,

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Amisha Patel, Yana Gupta, Sheetal Malhar, Mahima Choudhary claimed to believe in

PETAs philosophy, and thereby endorse the brand.

CELEBRITY SELECTION

There are various scientific ways in which the right celebrity is selected for theproduct endorsement, which are discussed here after

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 iconof 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.

A celebrity scoring high on all the above attributes can turn out to be a good endorser

for the brand under question.

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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: -

Celebrity & audience match up,

Celebrity & brand match up,

Celebrity credibility,

Celebrity attractiveness,

Cost consideration,

A working ease and difficulty factor,

An endorsement saturation factor,

A likelihood-of-getting-into-trouble factor

Selecting the right celebrity does more than increasing sales; it can create linkageswith 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.

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RESEARCH & ANALYSIS

The purpose is to provide the marketers with a quantitative method for selection of theright celebrities to optimize the outcome for their advertising campaigns. We have

developed three matrices, which are: -

Celebrity Positioning Matrix , which gives the popularity and image details of

a personality in the market

Product Positioning Matrix , which is the direct consequence of the brands

competitive strategy

Area Correlation Matrix , which is the overall measure of match of brand and

celebrity

These two matrices are used to develop two variables: -

Celebrity Effectiveness Index

Total Area Correlation Score

The two variables can be used to decide on the appropriate celebrity for the brand.

The model also helps in minimizing the cost with optimization of effect.The study is

done in two stages, exploratory research involving personal interviews and focused

group discussion followed by primary data collection and analysis.

Model Development

For the purpose of our study, we divided all companies and brands into twelve

categories mentioned below: -

1. Creator / Innovator: Products or personalities famous for disruptive, architectural,

modular or incremental innovations, e.g., White Goods

2. Caregiver: Personalities or products which give the perceived benefit of security

and care, e.g., Insurance Companies

3. Jester: Personalities or products positioned for fun and frivolous activities, e.g.,

Wafers

4. Magician: Personalities or products which claim to produce results which are

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unexpected, e.g., Hair oils for enhancing growth

5. Hero: Personalities or products that prompt courageously action, e.g., Red & White

Bravery Awards.

6. Ordinary Guy: Personalities or products that have slice of life execution format,

e.g., Peter England

7. Lover: Personalities or products that claim tender care, e.g., Beauty Soaps8. Innocent: Personalities or products that retain and renew faith, e.g., Johnson &

Johnson

9. Sage: Personalities or products for guidance and opinion, e.g., Newspaper

10. Outlaw: Personalities or products that encourage to break the rules, e.g., Jeans

11. Explorer: Personalities or products that claim self enhancement through

exploration, e.g., Jeeps

12. Ruler: Personalities or products that show how to exert control, eg., Tires

Archetype matrix for brands and celebrities:

Creator/Innovator Caregiver Jester

Magician Hero Ordinary Guy

Lover Innocent Sage

Outlaw Explorer Ruler

Variables Developed

Celebrity Effectiveness Index (CEI): This is a parameter defined to evaluate the

effectiveness of a personality to interact with customer and create desired impact. It is

the sum of average score of each archetype for a personality.

Area Correlation Index of Brand and CEI: This we have defined as the weighted

product of corresponding archetypes of brands and celebrities.

Hypothesis

H1: A brand-celebrity area coefficient is positively related to audience brand-

celebrity connection.

The concepts developed can be used by celebrity clients for effective decision

making. The objective of a client can be described as follows: -

To maximize area correlation of the brand-celebrity rectangle subjected to: -

1. Minimum Costs

2. Minimum Risks

The details of the variable in the above-mentioned objectives are described below: -

Costs Associated:

1. Endorsement fees

2. Feature establishing costs

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3. Feature enhancement costs

4. Feature sustaining costs

Risks Associated:

1. Mismatch risk

2. Celebrity feature transition risk3. Celebrity feature mortality risk

The steps involved in testing of hypothesis are as follows: -

Step 1: Calculate CEI for celebrities and companies

Step 2: Calculate area correlation matrix for the same

Step 3: Compare the success of the campaign with the area correlation matrix

Methodology

Calculation of Celebrity Effective Index

Respondents were given a name of a celebrity and asked to rate the personality as

against the archetypes defined earlier. The sampling was convenience sampling and

sample size of hundred for each celebrity.

Ten celebrities were selected for the purpose. The selection was based on threedistinct focused group discussions done with SEC A, B, C Category of members with

10 members each. The top ten most frequent celebrities recalled or recollected as

brand ambassadors were chosen for the further studies.

Primary survey was conducted to list down the brand against the above-mentioned ten

celebrities. The most frequent reply was recorded. The brands were then subjected to

archetype scoring, and area correlation was calculated. From secondary data, other

endorsees, if existing, were recorded and the process was repeated. For this other

endorsee, the least frequent or non-existing celebrity was selected from the list of CEIcalculation celebrities.

Celebrity Brand Alternate Celebrity*

Amitabh Bachchan Polio Shah Rukh Khan

* The celebrity that was recollected the least by respondents.

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RESULTS

Celebrity Effectiveness Index (CEI)

The ten celebrities and the survey results are as follows: -

1. Amitabh Bachchan : CEI = 55

Creator/Innovator 2 Caregiver 8 Jester 3

Magician 6 Hero 8 Ordinary Guy 1

Lover 5 Innocent 3 Sage 8

Outlaw 1 Explorer 2 Ruler 8

The CEI is quantitative measure of: -

1. Popularity

2. Image and positioning

Brand Positioning Index

Polio Eradication Campaign:





Thus, the calculation is analogous to CEI but is for companies or products. The

outcome is the direct reflection of company's positioning strategy.

Alternate Celebrity CEI Calculation

1. Shah Rukh Khan : CEI = 54

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Calculation of Area Correlation

The corresponding cells of brand and celebrity are multiplied to calculate what we

term as Brand-Celebrity Area Correlation.

The following table shows the results of above mentioned ten brands: -

Brand Success Celebrity Failure Celebrity

Polio 224 162

We term the celebrity with maximum recall as successful celebrity and with minimum

recall as failure celebrity.

Conclusions & Recommendations of survey

The test of Hypothesis 1 shows that it is 100% accepted for the case presented. Thus,

we can say that area correlation matrix is a good predictor of success of a campaign.

Moreover, the CEI is also a good predictor of popularity of the celebrity. Brands

generally will have lower CEI than

Personalities due to deliberate attempts to have strong positioning to fight competition

and develop competitive advantages.

The following recommendations are made to brand managers and account managers: -

1. The cost of an endorsement will be a positive correlated function of CEI

2. The popularity of the campaign is a function of area correlation matrix

3. If the right match is found between the brand and celebrity, popularity of the

campaign can be optimized

4. The cost of the campaign can be reduced by involving celebrities with high

polarized archetype value which matches with the brand

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FACTS AND FIGURES :-

Amitabh Bachhan (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 toname a few.

49 per cent growth in Celebrity endorsement advertising volumes on TV

during 2007 compared to 2006.

Celebrities from Film Industry lead with 81 per cent share of overall Celebrity

endorsement advertising pie on TV during 2007.

'Aerated Soft Drink' was the top category with maximum advertising volumes

of Celebrity endorsement during 2007.

Celebrity endorsement on TV saw a whopping growth of six times during

2007 over 2003

'Shahrukh Khan' had maximum number of advertisers in his kitty during 2007. Film Celebrities had the largest chunk i.e. 81 per cent share of overall

Celebrity endorsement on TV during 2007.

Sports and TV personalities took the second and third rank with 14 per cent

and 5 per cent share respectively during 2007.

Film Actors accounted for 50% share followed by Film Actress and

Sportsmen with 31 per cent and 14 per cent share of Celebrity endorsement on

TV during 2007.

Volume Growth in Celebrity endorsement on T.V.

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Share of Celebrity Profession on TV during 2007.

Share of Top 10 Categories with Celebrity endorsement advertising

volumes.

Top three Celebrities Visibility per day on Television through

commercials in 2007.

During 2007 top three position of maximum visible celebrity on TV was

occupied by Film Actors viz. Saif Ali khan, Shahrukh Khan, Amitabh

Bachchan.

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R ECOMMENDATIONS

CELEBRITY ENDORSEMENT: THE ISSUESINVOLVED

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 theeffectiveness 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 ormultiple 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). Tripp et al, says that the endorsement of as

many as four products negatively influences the celebrity spokespersons 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.

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