IMPACT OF CELEBRITY ENDORCEMENT ON BRANDS - projectbaba.com

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					   A STUDY ON IMPACT OF
CELEBRITY ENDORCEMENT ON
         BRANDS




                           1
                       EXECUTIVE SUMMARY



The field of consumer behavior is the study of individuals, groups or organizations

and the processes they use to select, secure, use and dispose of product, services,

experiences, or ideas to satisfy needs and impacts that these processes have on the

consumer and society. And understanding the consumer behavior is the prime and

toughest task in front of every marketer. There are a lot of factors, which influence

consumer buyer behavior. This study aimed at to understand the ―influence of

celebrity endorsee on consumer buying behavior and brand building.”

Marketers pay millions of Dollars to celebrity endorsee hoping that the stars will

bring their magic to brand they endorse and make them more appealing and

successful. But all celebrity glitter is not gold.

Celebrity sources may enhance attitude change for a variety of reasons. They may

attract more attention to the advertisement than would non-celebrities or in many

cases, they may be viewed as more credible than non-celebrities. Third, consumers

may identify with or desire to emulate the celebrity. Finally, consumer may

associate known characteristics of the celebrity with attributes of the product that

coincide with their own needs or desire.




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The effectiveness of using a celebrity to endorse a firm's product can generally be

improved by matching the image of the celebrity with the personality of the

product and the actual or desired serf concept of the target market.

What therefore seems relevant by the study that yes definitely celebrity endorsee

influence consumer buying behavior and brand building but while using celebrity

endorsee, marketer has to take care of all the aspect that whether the brought

personality and image of celebrity matches or not, whether celebrity endorsee has

deep penetration among the masses or not, whether he is considered as credible

source or not etc




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 CHAPTER - I

INTRODUCTION




               4
WHAT IS A BRAND?

The word 'brand' is a comprehensive term. To brand is to name or mark indelibly

as proof of ownership. It means a sign or symbol of quality. It is the best means of

advertising and positioning in the market. Branding is the best means to capture

and retain the consumer demand in a competitive market. The marketer can create

brand equity, brand loyalty and brand image for his products.

Branding is the practice of giving a specified name to a product or group of

products from one seller. The specified name creates individually in the product;

hence it can be easily distinguished or recognized in the market from the rival

products. The role purpose of branding is to distinguish our branded product from

those of competitors. A well promoted brand name which has earned reputation in

the market is very difficult to complete with.

A brand cans levels of meaning:

 Attributes: A brand first brings to mind certain attributes. Thus, Mercedes

   suggest expensive, well-built, well-engineered, durable, high prestige, high

   resale value, fast and so on. The company may use one or more of these

   attributes to advertise the car. For years Mercedes advertised, Engineered like




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   no other car in the world. This tagline served as the positioning platform for

   projecting the car's other attributes.

 Benefits: A brand is more than asset of attributes. Customers are not buying

   attributes they are buying benefits. Attributes need to the translated into

   functional and/. Or emotional benefits. The attribute durable could translate into

   the functional benefit. I won't benefits. The attribute durable could translate into

   the functional benefit. The attribute expensive might translate into the

   emotional benefit. The car helps me feel important and admired. The attribute

   well built might translate into the functional and emotional benefit. I am safe in

   case of an accident.

 Values: The brand also says something about the producer's value. Thus,

   Mercedes stands for high performance, safety, prestige, and so on. The brand

   marketer must figure out the specific groups of car buyers who are seeking

   these values.

 Culture: the brand may represent a certain culture. The Mercedes represents

   German culture; organized efficient, high quality.

 Personality: The brand can also project a certain personality. Mercedes may

   suggest a no-nonsense boss (person), a regaining lion (animal), or an austere




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   palace (object). Some times it might take on the personality of an actual ell-

   known person or spokesperson.

 User: The brand suggests the kind of consumer who buys or uses the product.

   We would be surprised to see a 20 year-old secretary dragging a Mercedes. We

   would expect, instead to see a 55- year old top executive behind the wheel. The

   users will be those who respect the products' values, culture, and personality.

Branding Decision

The fist decision is whether the company should develop a brand name of its

product. In the past, most products went unbranded. Producers and intermediaries

sold their goods out of brands, bins and cases, without any supplier identification.

Buyers depended on the Delhi's integrity. The earliest signs of branding were the

medieval guilds efforts to require crafts people to put trademark on their products

to protect themselves and consumers against inferior quality. In the five arts, too

branding began with artists signing their works.

Today, branding is such a strong face that the hardly any thing goes unbranded.

Most of the products and services now coming up with their brand name.




CONSUMER BEHAVIOR



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Whatever else we may be in our lives-child. Parent, student, worker, lover, jogger

or stamp collector- we are all consumers, all of our days. We buy and use goods

and services constantly, to eat; to wear, to read, to watch to play to travel in, to

keep us healthy, to make us wealthy and if not wise, at least better educated, the act

of consumption is therefore an integral and intimate part of our daily existence.

And that a there whether we have a lot of money to spend or very little.

In every long country of the world billions of purchases of goods and services are

made every year. In the U.S., for example, the activity now accounts per most of

the economy-some $ 4 trillion, or about two third of the annual gross national

product.


BUYING BEHAVIOR

Consumer decision making varies with the type of buying decision. The decision to

buy toothpaste, a tennis racket, a personal computer and a new car are all very

different. Complex and expensive purchases are likely to more buyer deliberation

and more participants. Assael distinguished four types of consumer buying

behavior based on the degree of buyer involvement and the degree of differences

among brands.




Complex Buying behavior

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Consumers engage in complex buying behavior when they are highly involved in

involved in a purchase and aware of significant differences among brands. This is

usually the case when the product is expensive bought infrequently, risky and

highly self-expressive. Typically the consumer does not know much about the

product category and has much to learn. For example person buying a personal

computer may not know what attributes to look for many of the product features

carry no meaning unless the buyer has done handson research: "16K memory",

"disk storage" "screen resolution," and so on.

Complex buying behavior involves a three-step process. First the buyer develops

beliefs about the product. Second, he or she develops attitudes about the product.

Third he or she makes a thoughtful purchase choice. The consumer‘s information

gathering and evaluation behavior. The market needs to develop strategies.




Dissonance - reducing buyer behavior

Sometimes the consumer is highly involved in a purchase but sees little difference

in the brands. The high involvement is based on the fact that the purchase is

expensive, infrequent, and asky. In this case the buyer will shop around to learn

what is available but will buy will by fairly quickly, perhaps responding primarily

to a good price or to purchase convenience. For example carpet buying is a high-


                                                                                  9
involvement decision because carpeting is expensive and self-expressive yet the

buyer may consider most carpet brands in a given price range to be the same.

After the purchase, the consumer might experience dissonance that stems from

noticing certain disquieting features of the carpet or hearing favorable thing about

other carpets. The consumer will be alert to information that justifies his or her

decision.




Habitual buying behavior

Many products are bought under conditions of low consumer involvement and the

absences of significant brand differences consider salt. Consumer has little

involvement in this product category. They go to the store and reach for the brand.

If they keep reaching for the same brand it is out of habit not strong brand loyalty.

There is good evidence that consumers have low involvement with most low cost,

frequently purchased products. With low involvement products, consumer

behavior does not pass through the normal belief /attitude/behavior sequence.

Consumers do not search extensively be information about the brands, evaluate

their characteristics, and make a weighty decision on which brands to buy.




Variety-Seeking Buying Behavior



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Some buying situations characterized by low consumer involvement but significant

brand differences. He consumers often do a lot of brand switching. Think about

cookies. The consumer has some beliefs about cookies, chooses a brand of cookies

without much evaluation, and evaluates the product during consumption. But net

time the consumer may reach for another brand out of boredom or a wish for a

different taste. Brand switching occurs for the sake of variety rather than

dissatisfaction.




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    CHAPTER- II

LITERATURE REVIEW




                  12
Literature Review Of Celebrity Endorsement



Celebrity endorsement in mass media advertising has become a very beneficial
phenomenon for many countries and has significantly increased in the past decade,
and should be the main principle of brand communications since it is the key to
marketing success. Any product that is displayed in a television commercial or
magazine advertisement by a corporation that uses a celebrity or well known
public figure to give a testimonial or information about the product, is practicing
celebrity endorsement. Although commonly thought of starting in the United
States, celebrity endorsement began in India during the ‗80s but has since been
adopted by countries in Asia, Europe, and almost worldwide. Modern mass media
(especially that of tabloids) has increased exposure of celebrities to the point that it
is unavoidable to not be exposed to a celebrity face. The primary principle that
celebrity endorsement works off of is the public recognition of the celebrity
endorser as an admirable or desirable cultural force. It is not uncommon to view
commercials from the past 10 years and see popular icons like Britney Spears
endorsing a particular soft drink like Pepsi or Michael Jordan endorsing Nike as
the number one brand for anyone that has even the slightest liking to sports.
These celebrities among many others, are used to promote products, services, and
ideas (Kambitsis et al., 2002). A reason for the increase in the usage of celebrity
endorsing on various levels of mass media is almost exclusively due to the fact that
this strategy results in more positive advertisement and product(Dean and Biswas,
2001), as well as an increase in the purchasing of the product and in turn, increased
finances for the producer (Erdogan, 2001). ct ratings



CELEBRITY ENDORCEMENT



A Definition of ‘Celebrity’

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Celebrities are people who enjoy public recognition by a large share of certain

Group of people. Whereas attributes like attractiveness, extraordinary lifestyle or

special skills are just examples and specific common characteristics cannot be

observed, it can be said that within a corresponding social group celebrities

generally differ from the social norm and enjoy a high degree of public awareness.

This is true for classic forms of celebrities, like actors (e.g. Meg Ryan, Pierce

Brosnan), models (e.g. Naomi Campbell, Gisele Buendchen), sports athletes (e.g.

Anna Kournikova, Michael Schumacher),entertainers (e.g. Oprah Winfrey, Conan

O‘Brien) and pop stars (e.g. Madonna, David View Forbes.com (2002).Bowie) –

but also for less obvious groups like businessmen (e.g. Donald Trump, Bill Gates)

or politicians (e.g. Rudy Giuliani, Lee Kuan Yew). Celebrities appear in public in

different ways. First, they appear in public when fulfilling their profession, e.g.

Pete Sampras, who plays tennis in front of an audience in Wimbledon?

Furthermore, celebrities appear in public by attending special celebrity events, e.g.

the Academy Awards, or world premieres of movies. In addition, they are present

in news, fashion magazines, and tabloids, which provide second source

information on events and the ‗private life‘ of celebrities through mass-media

channels (e.g. Fox 5 news covering Winona Ryder‘s trial on shoplifting, In Style).

but not least, celebrities act as spokespeople in advertising to promote products and

services (Kambitsis et al. 2002, Tom et al. 1992).


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Multiple Brand and Celebrity Endorsement

Studying TV and print advertisements, one will realize that either some celebrities

are endorsing several brands or a specific brand is endorsed by different

spokespersons. These concepts are called multiple brand endorsement and

multiple celebrity endorsement respectively. Some spokespersons are ―shared‖ by

different advertising firms, i.e. they are promoting more than one brand (Tripp et

al. 1994, p. 535). Golf champion Tiger Woods has endorsed American Express,

Rolex, and Nike. Actress Catherine Zeta-Jones is used by T-Mobile and Elizabeth

Arden. James Bond character Pierce Brosnan promotes Omega, BMW, and

Noreico. Top model and actress Milla Jovovich is a spokesperson for a broad range

of brands, including L‘Oreal, Banana Republic, Christian Dior, Calvin Klein, and

Donna Karan. The question is, does this special form of celebrity endorsement

does affect consumers‘ brand attitudes? Following Tripp et al. (1994), the

endorsement of as many as four products negatively influences the celebrity

spokesperson‘s credibility (i.e.). In fact, Andie McDowell is also a spokesperson

for L‘Oréal. However, she is used to endorse products for women of her age group,

e.g. the hair color brand ‗Excellence‘. Expertise and trustworthiness) and

likeability. They further add that these effects are independent of the celebrity, i.e.


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the perceptions of even well-liked stars can be influenced. Reasons may be found

in the lack of distinctiveness, with one famous person endorsing several products

instead of concentrating on and representing one specific brand. Though these

findings may be valid, it does not automatically mean that the concept of multiple

product endorsement is useless. Further research is suggested on potential positive

effects, like transfer of positive brand images, and on the shape of Consumers‘

response when more than four products are endorsed.

Endorsee advertising

Hrithik Roshan, Aiswarya Rai, Aggasi, Samphas, Anna Kornikova, Saurav

Ganguly & Rahul Dravid Shah Rukh Khan, Sachin Tendulkar, Madonna, Bill

Cosby Michael Jordan, these names have become symbols of the role of endorsers

in advertising. Firms spend millions of dollars to sign up celebrities to endorse

their products. Some popular endorsers such as Michael Jordan earn as much as

$40 million a year from endorsements alone. Endorsement contracts are now so

lucrative that many professionals in sports and entertainment direct their careers to

this end. In some sports, such as track and field events, winning at the Olympics

has pretty much become a means to subsequent endorsement contracts.

Firms spend all this money on endorsements because finding the right celebrity

endorser for their products can pay tremendous dividends. For example, some

brands such as Nike's Air Jordan have been built around the image of a star. Nike
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earned over $200 million from its Air Jordan Lines of shoes and clothes in 1991

alone. Yet as the example of Madonna suggests, celebrity endorsers cave a

powerful means of communicating a distinct image for a brand to target segment as

well as a source of problems for the advertiser. Other types of endorsers can be

equally effective but cost much less.


Types of endorsers

A endorser is a person, character or organization that speaks or appears in an ad in

support of the advertiser or its claim. The terms endorser includes the terms

spokesperson or model. The endorsement process is the identification, selection

and use of endorsers to communicate with a target segment.

Endorsers can be grouped into three broad classes : experts, celebrities and lay

endorsers. Each has special characteristics and roles in the communication process.

We will first consider a definition of the three types of endorser and then describe

their roles.


ENDORSER ATTRIBUTES

Now that a distinction has been made between the two general types of advertising

endorsers, it is important to more formally explain endorser attributes and the role

they play bin facilitating communication effectiveness. Extensive research has

demonstrated that two basic attributes contribute to an endorser's effectiveness:

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1. Attractiveness and

2. Credibility.

Each involves a different mechanism by which the endorser affects consumer

attitudes and behavior. Some of these points have already been mentioned, but a

formal treatment will now ensure that these key concepts are fully understood.




   1. Attractiveness : The Process of Identification

Attractiveness does not mean simply physical attractiveness -although that can be a

very important attribute-but includes any number of virtuous characteristics that

receivers may perceive in an endorser intellectual skills, personality properties,

lifestyle characteristics athletic prowess and so on. The general concept of

attractiveness consists of three related ideas: similarity familiarity and liking. That

is an endorser is considered attractive to receivers if they share a sense of whether

the two are similar in any respect. Gabriela Stabbing, in another milk-mustache

advertisement would seem to epitomize the use of attractiveness and capture all

dimensions of that concept. That is Sabatini, in addition to her physical beauty, is

attractive to tennis fans who are similar to her (in the sense that they also play or

enjoy tennis), are familiar with her (via watching her play on TV and reading about




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her) and like her (due to her generally pleasant demeanor and fiery competitive

spirit).

When receivers find something in an endorser that they consider attractive

persuasion occurs via an identification process. That is when receivers perceive a

source to be attractive, they identify with the endorser and are very likely to adopt

the attitudes, behaviors, interests, or preferences of the source.

In other words, an attractive endorser does not necessarily benefit a product if there

is a poor match up between the endorser and the product.




   2. Credibility: The process of Internalization

In its most basic sense, credibility refers to the tendency to believe or trust

someone. When an information source such as an endorser, is perceived as credible

the source can change attitudes through a psychological process called

internalization. Internalization occurs when the receiver accepts the endorser's

position on an issue as his or her own. An internalized attitude tends to be

maintained even if the source of th4e message is forgotten or if the source switches

to a different position.

                                    Two important properties of endorser credibility

are expertise and trustworthiness. Expertise refers to the knowledge, experience or

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skills possessed by an endorser as they relate to the communications topic. Hence,

athletes are considered to be experts when it comes to the endorsement of sport-

related products. Expertise is a perceived rather than an absolute phenomenon.

Whether an endorser is deed an expert is unimportant; al that matters is how he or

she is perceived by the target audience. An endorser perceived by an audience as

an expert on a given subject is more persuasive in changing audience opinions

pertaining to his or her area of expertise than an endorser who is not perceived as

possessing the same characteristic. This no doubt explains the extensive use of

athletes to endorse sports-related product.

                                   Trustworthiness refers to the honesty, integrity

and believability of a source. While expiates and trustworthiness are not mutually

exclusive, often a particular endorser is perceived as highly trustworthy but not

particularly expert. An endorser's trustworthiness depends primarily on the

audience's perception of his or her endorsement motivations. If the audience

believes that an endorser is motivated purely by self-interest, he or she will be less

persuasive than someone the audience perceives as having noting to gain by

endorsing the product or as being completely objective.

Interestingly research with ethnic minorities reveals that when a spokesperson

matches the audience's ethnicity, spokesperson trustworthiness in enhanced which,

in turn promotes more favorable attitudes towards the advertised brand.

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Advertisers capitalize on the value of trustworthiness by selecting endorsers who

are widely regarded as being honest, believable and dependable people. This

probably explains why celebrities such a Candice Bergen. Bill Cosby Michael

Jhordan. Angela Lans-buy and Arnold Palmer are successful endorsers. They

simply appear to be individuals who can be trusted.



CELEBRITIES ENDORSEMENT IN ADVERTISING

Advertising pay million of dollars to celebrities, hoping that the stars will bring

their magic to the products and services they endorse and make them more

appealing and successful. Are the dollars well spent? Not always. Although actress

Candice Bergen‘s ―Dine Lady‖ portrayal for long-distance phone carrier Sprint

was highly successful, and Jaclyn Smith moved millions to buy her clothing line at

Kmart, Cybill Shepered and James Garner were discontinued as spokespersons for

the Beef Industry Council. And a Pepsi commercial featuring pop diva Madonna

that cost mega millions to produce was aired only once in the United States before

being pulled off the air. Why? Why did entertainer Bill Cosby fail as an endorser

for E.F. Hutton despite his success for Jell-O and Kodak? And what impact did

boxing champion Mike Tyson‘s rape conviction and the allegations of child

molestation and drug addiction against pop singer Michael Jackson have on Pepsi,

for which both were spokesmen?


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                                        These are not only interesting questions, but

questions that marketers and advertisers need answers to as they plan their



Is it smart to use celebrity endorsements for

                                 Branding?

Stars, who are known to shape destinies, cast an enormous influence. No, we‘re not

 talking about astrology here. We‘re referring to the powerful effect of celebrities

 on destinies of brands. One approving nod from a famous face can translate into

 millions in brand sales. Perhaps that‘s why the world over, companies have been

  using stars to endorse everything, from food to food chains, from soft and hard

   drinks to health drinks, from clothes and accessories to cars (and the tyres on

which they run). Even political parties are awestruck by the charisma of stars. Such

 is the magnetism of celebrities in this country that in the recent general elections,

   major political parties fielded a record number of film stars and cricketers to

             contest from important constituencies around the country.


Attracts Attention:




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Celebrities ensure attention of the target group by breaking the clutter of

advertisements and making the ad and the brand more noticeable.


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.

Psychographic Connect:


Stars are loved and adored by their fans and advertisers use stars to capitalise on

these feelings to sway the fans towards their brand.

Demographic Connect:


Different stars appeal differently to various demographic segments (age, gender,

class, geography etc.).

Mass Appeal: Some stars have a universal appeal and therefore prove to be a good

bet to generate interest among the masses.


Idea First


Celebrity endorsements are very expensive. Therefore their use in an ad should

be justified. In other words, the message strategy for a brand should strongly

warrant the use a known face in an idea. Sadly, very often the celebrity is hired

first and an idea is then weaved around his or her presence. Khan stresses, ―The
                                                                                      23
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.

When Sachin Tendulkar declares, ―Boost is the secret of my energy,‖ it doesn‘t

seem out of context. Internationally, Nike‘s association with Michael Jordan is

legendary and also logical.

When it doesn’t work?

In the last decade or so, there has been a spurt in the use of celebrity endorsements.

And with it, there has been an increase in the number of instances of brands failing

to take off in spite of the biggest and brightest stars endorsing it and consequently

leading to speculation about the soundness of celebrity endorsements as a

communication strategy.

According to leading management thinker ―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.

Often, the finished advertising is at best contrived, and often, simply laughable. In

the end, the brand suffers from a mismatched concept and celebrity, and millions

of dollars are flushed away. If this company is publicly listed, imagine the


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disservice the company has done for its shareholders.‖ [2]

There are several reasons why celebrity endorsements fail to produce the desired

effect, and each of them has to more to do with the core communication strategy

and less with the celebrity‘s pull. ―Celebrities cannot really be blamed if their

endorsements fail to push up the brand sales,‖ says Mendonza. Indeed, for it is

important to recognise that celebrities can create interest - whether that interest

converts into sales depends on various factors such as brand-celebrity disconnect,

improper positioning, clutter of celebrities, or even product life-cycle.


Five causes of letdown

It‘s worth going over some of the reasons why celebrity endorsements may not

work:


1. Improper positioning

Associating with a star, however big he or she may be, in itself does not guarantee

sales. The most it can do is generate interest in the product or create a buzz around

it. Take the case of Maruti Versa, which was launched amidst a lot of fanfare about

three years ago. In spite of Maruti signing up superstar Amitabh Bachchan and his

son Abhishek Bachchan as brand ambassadors for Versa, the brand‘s sales

remained sluggish. To be fair, the Big B magic did work and the ads created

significant interest, drawing people into the showroom. But perhaps the positioning


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   itself was faulty as people were expecting a larger than life car, just like the

   brand‘s ambassador. Last year, we saw Versa being re-positioned as a family car,

   with the core proposition being, ―the joy of traveling together.‖ In the words of

   Ravi Bhatia, General Manager of Marketing at Maruti, Versa has started doing

   well and has witnessed an upswing since the new positioning. Last year, the

   average sales were 80-100 vehicles a month. Now they are selling 450 vehicles a

   month. [3]


2. Brand-celebrity disconnect

If the celebrity used represents values that conflict with the brand values and

positioning, the advertising will create a conflict in the minds of the target audience

who may reject the proposition. Take for instance Toyota, one of world‘s leading auto

companies. Toyota chose teeny-pop singer Britney Spears for its brand Soluna Vios, a

family sedan, which is preferred by married men and women with children. According

to Phan, a youth icon like Britney would‘ve been better used by Toyota for a sleek

sports vehicle and for Soluna Vios, Toyota should choose someone like a mature man,

Harrison Ford for example. [4]


3. Clutter Flutter

In recent times, there has been such a deluge of celebrity endorsements that it has led

to the very clutter that it aimed to break. For instance, Amitabh Bachchan endorses or


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has endorsed Pepsi, ICICI, BPL, Parker pens, Nerolac, Dabur, Reid & Taylor, Maruti

Versa, Cadbury and a few social messages too. Bollywood badshah Shah Rukh Khan

endorses Omega, Tag Heuer, Pepsi, Hyundai, Clinic All Clear and Airtel among other

brands has to his credit more television commercials than feature films since 1992.

This over-exposure can be bad for the brand. Khan adds, ―We seem to have just 2 ½

celebrities in a country of 1 billion people which is a terrible tragedy. Consequently,

each celebrity is called upon to push maybe a dozen brands or so. Which is great for

the celebrity but I think it is pretty daft for the brand because the impact of the

celebrity reduces as the number of brands he endorses increases.‖ Parmeswaran

agrees, ―Unfortunately in India, we have too many brands chasing too few celebrities.

And the recall value drops by a huge margin when you move from an A Class

celebrity to a B Class.‖


4. Dissatisfaction with product

quality/performance

You cannot sell an ordinary product just by making a celebrity endorse it. In fact, if

anything, the product will fail faster because the presence of the celebrity will create a

buzz and more people will know about the ―ordinariness‖ of the product.

Parmeswaran says, ―Unfortunately using a celebrity seems to be the easy way out of a

parity product situation.‖ Sachin Tendulkar‘s endorsement of Fiat Palio was quite a

success initially. But as word about the poor fuel efficiency of Palio spread, its sales

                                                                                           27
took a beating. In this case, Sachin‘s presence could‘ve worked wonders but for the

poor performance of the car in a market that is highly performance conscious.


5. Confusion/ Scepticism

   The use of celebrities can be confusing. Some viewers forget brand that a celebrity

   is approving. Others are so spellbound by the personality of the celebrity that they

   completely fail to notice the product/brand being advertised. The brand is

   overshadowed in the overwhelming presence of the star. In some cases, a celebrity

   can give rise to scepticism because it might be a bit too much for the masses to

   believe that the celebrities who are rich and can afford the best in the world are

   actually using a mass product being advertised on television. On the contrary,

   people might speculate about such things as ―how much did the brand pay to rope

   him/ her in as the brand ambassador?‖


   Risks associated with Celebrity Endorsements


   Fame is a fickle and fleeting companion and can ditch the famous at the slightest

   provocation. Celebrities, being human, make mistakes. But their mistakes get as

   much attention as their celebrity status and this can adversely affect the brands that

   they are endorsing. There are a number of examples, both Indian and International,

   where scandals and scams involving celebrity endorsers have caused

   embarrassment to the brands they endorse. Companies have to make quick

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decisions when one of their endorsers comes under fire or their own image could

be tarnished. Guilty by association in a consumer‘s eyes describes it best.

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.


It‘s a tricky situation for marketers. If a brand continues with the celebrity, it may

adversely affect the image of the brand and consequently, brand sales. If the brand

chooses to distance itself with the tainted celebrity, the huge costs spent on roping

in the celebrity and making of the ads may go down the drain and even then the

association of the brand with the celebrity might by then be so ingrained that the

damage is already done. ―It‘s a two-way street. One way it shows the strength of

the brand promotion. But it is also fraught with risk if your brand ambassador fails

to perform in the related field,‖ says Reliance India Mobile (RIM) marketing head

Kaushik Roy. RIM uses Cricket star Virendra Sehwag as its brand ambassador.

Roy added, ―We want to try and avoid celebrity endorsements as much as possible.

Over-dependence on them will create problems in future so we should stand on our

own legs.‖


Celebrity endorsement can be key to marketing success



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There's no denying the fact that marketing chiropractic can be challenging. The

public has long been exposed to negative reports about it from the medical and

drug industries, as well as from well-meaning but uninformed consumer advocates.

They've heard chiropractic jokes on sit-coms and warnings on the nightly news.


To market chiropractic in general — and your practice in particular — you must

first overcome lingering fears, ignorance and skepticism that keep people from

coming to your office. One of the most powerful ways to surmount these obstacles

is to use a celebrity endorsement.


When you tell people that chiropractic can help them, they may or may not believe

you. After all, you have a vested interest in selling your services.


But when celebrities say that chiropractic has helped them, and it could help

others, people tend to listen — and believe. After all, most people assume "he

wouldn't say it if it weren't true."


"When you get a celebrity to endorse your company or sign a licensing

agreement, you benefit from customers' awareness of the property, [which]

could include the perception of quality, educational value or a certain image."




                                                                                  30
After researching the impact of celebrity endorsements, Melissa St. James, a

doctoral fellow and marketing instructor at The George Washington University

concluded,


"Studies show that using celebrities can increase consumers' awareness of the

ad, capture [their] attention and make ads more memorable" (quoted in

"Celebrity Endorsements," by Kimiko L.)




INFLUENCE OF CELEBRITY ENDORSEMENT ON

CONSUMER BUYING BEHAVIOR IN IN INDIAN CONTEXT




Towel-clad models can sell just about anything. Soaps shampoos, body lotions,

safety razors, electric hair removers, men's toiletry even ceramic tiles and

bathroom fittings. And if the model happens to be a television icon who enjoys a

huge fan following among youngsters, the product will sell like hot cakes. So when

the Kerala-based S.V.Products launched its new brand of sandalwood soap. It hired



                                                                                   31
a celebrity to endorse the soap, Result: A towel-clad Cyrus Broacha was hawking

Chandrika soap on the idiot box.


When bollywood heartthrob Revenna Tandan featured in the ad for Rotomac pens

some years ago, many people wondered whether it was a good idea to hire such a

high-priced model. But the strategy paid off and Rotomac today is a name to

reckon with in the writing instruments industry.

Using celebrities to peddle wares is not new for the Rs. 5,000 crore Indian

advertising industry. After all, it's easier to influence people if a celebrity is

endorsing the product. Says Imam Siddiqui, model coordinator, Ammirati Puris

Lintas: "The strategy helps because a celebrity is instantly recognizable and brand

recognition becomes easy".

But that's where the similarity with the past ends. Now, even small and medium-

sized companies are roping in big names to sell their products. For instance, one of

the highest paid celebrity models, Sachin Tendulkar features in the Today's pen

ads. That's not all. Rani Mukherjee, who features in the high profile Pepsi ad along

with Shah Rukh Khan and Kajol is also endorsing the humble bicycle.

Also, many companies realize that the bigger the celebrity the better is the impact.

Instead of hiring smaller models at a lower price, they prefer to splurge on high-

paid models. Signing Shah Rukh Khan over Milind Soman makes better business


                                                                                 32
sense, they feel. For instance, when the Rajasthan-based textile manufacturer BSL

Ltd. found that its sales graph was not moving upwards, it decided to sign up

model-turned-actress Sonali Bendre. "Our previous campaigns lacked glamour.

Now that short-coming has been set right." Says BSL Marketing Manager R.P.

Jhanwar. The company is confident that the campaign will be able to boost sales

during the oncoming festive season.

When S.V. Products wanted to reposition its Chandrika brand of sandalwood soap

for the younger generation, it did the same. Instead of going in for female models

that would have reinforced the belief that Chandrika was used only by women, it

hired Broacha for its advertisement campaign. "Since we were targeting the youth,

we decided to bring in a youth icon. Broacha fitted the description perfectly," say

V.Krishnana, managing director of Asap advertising which handled the advertising

of Chandrika soap.

Broacha, who was paid over Rs. 50,000 for the campaign, was able to convince the

happening generation that the Chandrika brand was not merely something that

fuddy duddy housewives used. Sales have jumped 25 per cent since the

advertisements first appeared in July 1998.

Similarly, Manish Makhija a.k.a. Udham Singh it's trying to breathe life into the

Kanchan brand of home appliance. Jatland contribution to the world of pop must is

endorsing the low-priced range from the Mumbai-based Kanchan International.
                                                                                33
But celebrities to do not come cheap. The sticker price can range from Rs. 10 lakh

for 10 second zapper to Rs. 5 crore for an extended tie-up.

Some big companies are also realizing the benefits of celebrity endorsements.

Computer education major NIIT has signed on chess grandmaster Vishwanathan

Anand for its ads. Till now the company was using only ordinary models.

With companies rushing to hire celebrities, the regular models are feeling the

pinch. Says Sohail Mohammed, a model who has worked on campaigns for

Lakhani shoes and Moov Ointment: "Previously we used to be called for tests.

Now even that has stopped." For this ilk the future is tense


Why do brands use celebrities?

    Brand may use celebrities for a variety of reasons. Getting attention may be

      one of the reasons to use a celebrity in a category, which is very "crowded"

      or in a category where involvement levels are low. Cema, a brand of bulb

      used a well-known celebrity to gain attention in a category where a number

      of brands existed and where differentiation is hard to achieve. Attention

      getting leads to recall especially when the consumer is in need of the

      product. This recall may lead to trial especially in categories which are low

      involvement and which have low unit cost (bulbs, commodities). Jams have




                                                                                34
   a low penetration in India and involvement levels have been low. NLL uses

   a sport celebrity for its 'Jammy' TV commercial.




 Brand may use celebrities to convey an upmarket image. Pataudi, the cricket

   celebrity with the regal touch has endorsed Royale, an upmarket brand from

   Asian Paints. This celebrity also endorsed Gold Café (an instant coffee

   launched in the 80s), Gwalior suitings and Kohinoor rice. All these brands

   have targeted upmarket consumers, not the masses. Currently the same

   celebrity endorses Kohinoor brand of basmati rice along with his spouse, a

   former actress.




 Brand may use celebrities to enhance the brand image in niche markets.

   Omega is an upmarket brand of watches known for its classic appeal all over

   the world it has only premium ranges. The Indian contest after the launch of

   titan is currently in a phase is marked by the entry of a number of foreign

   brands. The upper end is also getting crowded with brands like Rolex,

   Cartier, Raymond Well etc. Titan has also entered the global market with its

   premium offerings. It is interesting to observe Omega using the well known

   and glamorous Cindy Crawford with gift proposition and a jingle similar to
                                                                             35
   the Mozart background score used all along by Titan. The background score

   of Titan is almost its brand property. The Omega commercial is frequently

   telecast on CNN, a niche channel, besides being flashed in a few upmarket

   Indian magazines. Omega has a classic image nurtured over decades. Titan

   advocated the gift proposition for a durable in India. It may be difficult to

   make use of the proposition of Titan to become a brand for the masses. But a

   well-entrenched proposition could be made use of by a very strong brand to

   create an impression on a small niche of upmarket consumers. Is Omega

   attempting to make use of the 'anchored perception" to compete with

   formidable world-class brands (if not directly with titan)?




 In low-involvement products, it has almost become a trend to use celebrity

   appeals. This may be more effective if the brand pioneers celebrity usage.

   Though consumers are getting use to the celebrity clutter, there is always a

   novelty appeal that a celebrity could generate by being the first to be

   associated with a brand in the category. But is a leader in instant coffee

   (chicory-based) and all along it has been using the filter taste as its

   proposition. BBIL's Gre



                                                                             36
 CHAPTER-III


 RESEARCH
METHODOLOGY




               37
          RESEARCH METHODOLOGY



Objective of the study

To identify influence of celebrity endorsee on consumer buying behavior and

brand building.

Type of research

The research was exclusively exploratory in nature. The research design was

characterized by flexibility in order to be sensitive to the unexpected and to

discover insight not previously recognized.

Secondary and Primary data was extensively analyzed. Secondary data was

essentially journals, magazines, academic books etc., to understand consumer

behavior and role of celebrity endorsee primary data was collected from jury

survey (Persons from Advertising Agencies) and directly through the customers.




Method of Conduct

Personal interviews were conducted, which included persons from advertising

agencies and customers.

Research Interment

                                                                                 38
The research instrument used for primary data collection was questionnaire.

The questionnaire was structured and most of the questions were closed ended.

The entire questionnaire was divided into three parts.

a. Ownership based

b. Buying behavior based

c. Role of celebrity endorsee based.

For the jury survey personal interviews were conducted.

Sampling Plan / Size

The entire study covered the following two respondent segments:

a. Persons from advertising agencies-10.

b. Customer - 40.

Total sample size was 50 and the sampling used is judgement.




Limitations

    The researcher used judgement sampling.

    Time allotted to carry out the study was merely four weeks including

      holidays.


                                                                                39
 Some of the responses might be biased.

 Most of the survey was carried out in and around Delhi only

 It was not possible for the researcher to meet more creative directors of the

   agencies.

 It was not possible to collect the opinion of the celebrities who are endorsing

   brands.




                                                                              40
  CHAPTER-IV

 ANALYSIS
AND FINDINGS




               41
                       SURVEY


Q1. What are the motivating factors when you plan to buy mobiles or
cars?

• Discounts and offers
• Fewer prices
• Latest models and trends
• Celebrity endorsing the product




                                                     Discount& Offer
                                                     Lesser price
                                                     Latest trend & model
                                                     Celebrity endorcement




                                                                             42
Q2. Do you believe products specifically advertised by the celebrities
are of good quality?

• Yes
• No
• 50%
• Not sure




                                                               Yes
                                                               No
                                                               50%
                                                               Not sure




                                                                          43
Q3. What is the most persuading factor to purchase the following
products?

a) MOTOR VEHCLE

• Brand Name
• Celebrity
• Luxury
• Self Esteem




                                                          Brand name
                                                          Celebrity
                                                          luxary
                                                          self esteem




                                                                        44
b) CLOTHING

• Brand Name
• Celebrity
• Status
• Cost




                Brand name
                Brand name
                celebrity
                status
                cost




                             45
c) FOOD PRODUCTS

Celebrity
Attractive Package
Quality
Brand Name




                      Brand name
                      celebrity
                      Attractive packaging
                      Quality
                      Brand name




                                             46
Q4. Companies are investing large amounts of money for using
celebrities; do you think its helping them to increase their total
revenue?

Yes•
No•
Don’t know•




                                                               Yes
                                                               No
                                                               Don’t know




                                                                            47
Q5. What type of celebrity endorsement persuades you personally to
purchase products?

• Film star
• Famous personalities
• Cricketer
• Politician




                                                     Film star
                                                     Famous personality
                                                     Cricketer
                                                     Politician




                                                                          48
Q6. Does the presence of celebrities like Shahrukh Khan, Amitabh
Bachan or Aishwariya Rai in an advertisement encourages you to
purchase the product or service?

Yes•
No•
Not sure•




                                                            Yes
                                                            Not sure
                                                            Not sure




                                                                       49
Q7. Do you believe the celebrities also use those products which they
themselves endorse?

Yes•
No•
Not sure•




                                                              Yes
                                                              No
                                                              Not sure




                                                                         50
Q8. Please rate the following celebrities as a brand endorser:-

a) Aishwariya Rai for L’Oreal

Excellent•
Average•
Poor•
Unsure•




                                                                  Excellent
                                                                  Average
                                                                  Poor
                                                                  Can't rate




                                                                               51
b) Amir Khan for coca cola

Excellent•
Average•
Poor•
Can’t rate•




                             Excellent
                             Average
                             Poor
                             Can't rate




                                          52
c) Sushmita Sen for Olay creams

Excellent•
Average•
Poor•
Can’t rate•




                                  Excellent
                                  Average
                                  Poor
                                  Can't rate




                                               53
Q9. What do you value the most when purchasing a product?

Price of the product•
Celebrity endorsement•
Quality of the product•
Value for money•




                                                  Price of product
                                                  celebrity endorcement
                                                  Quality
                                                  value for money




                                                                          54
Q10. Does celebrity endorsement help in brand promotion?

Yes•
No•
Not sure•




                                                           Yes
                                                           No
                                                           Not sure




                                                                      55
Q11. What means of advertisements persuades you the most to
purchase a product?

• Television
• Radio
• Newspaper
• Magazines
• Internet




                                                        television
                                                        radio
                                                        newspaper
                                                        magazine
                                                        internet




                                                                     56
Q12. What do you think is the reason for the companies to choose
celebrity endorsement for promoting their products?

Easy recognition of product•
Can’t generate new ideas•
to be able to increase sales and profit•
To compete strongly•




                                                   easy recognition
                                                   can't generate new ideas
                                                   increase sales & profit
                                                   compete strongly




                                                                              57
 CHAPTER- V

CONCLUSION




              58
                          CONCLUSION



Celebrity spokespersons in advertising to endorse brands. A brief assessment of

the current market situation indicates, that celebrity endorsement advertising

strategies can under the right circumstances indeed justify the high costs associated

with this form of advertising. However, as several failures show, it is essential for

advertisers to be aware of the complex processes underlying celebrity

Endorsement, by gaining an understanding of the described concepts of source

credibility and attractiveness, match-up hypothesis, meaning transfer model,

multiple product and celebrity endorsement. While these concepts can help to

answer the question if and when celebrity advertising investments pay off, it has to

be the goal of further research efforts to develop an extensive, consistent and user-

friendly tool to avoid arbitrary decisions and enhance the strategic character of

celebrity sponsorship decisions.Understanding buying behavior of customer is the

toughest task for a marker, we can identify the factors, which influence purchase

decisions, but it is next to impossible to know which factor influence when. We

have countless permutation and combination for it, each individual has different

behavior and different influencing factors. Marketers spend millions of dollars on

advertising and especially on celebrities. Hoping that the stars will bring their

magic to the products and services they endorse and make them more appealing a

                                                                                    59
successful. But, all that celebrity glitter is not gold, but it can be. It appropriately

used celebrity advertising has pay off and definite influenced the purchase

decision. Celebrity endorsement does a premium in term of impact and

memorability. There is also a position influence on persuasion, though less strong.

                                     It is not enough that the celebrity is the

advertising be remembered, more important, the brand must be. In using celebrities

as endorsed, advertisers need to understand not only how to choose celebrities but

also how to use them in advertising. The strategy and creative execution should

reinforce strongly and consistently the celebrity brand association. And the

celebrity should not only evoke positive retains, but helps focus attention on the

brand in the advertising. Thus the product will be made more desirable because of

its association with the star.




                                                                                           60
CHAPTER-VI

ANNEXURE AND

BIBLIOGRAPHY




               61
                      QUESTIONNAIRE


Name:
.
Email address :

Gender:
• Male
• Female

Age:
• 13-19
• 20-30
• 30-40
• 40-50
• 50 and Above

Occupation:
• Service Business
• Housewife
• Student
  Others (Please Specify) _________


Q1. What are the motivating factors when you plan to buy mobiles or cars?
• Discounts and offers
• Fewer prices
• Latest models and trends
• Celebrity endorsing the product

Q2. Do you believe products specifically advertised by the celebrities are of
good quality?
• Yes
• No
• 50%
• Not sure



                                                                           62
Q3. What is the most persuading factor to purchase the following products?

a) Motor vehicle?

• Brand Name
• Celebrity
• Luxury
• Self Esteem

b) Clothing

• Brand Name
• Celebrity
• Status
• Cost

c) Food Products

Celebrity•
Attractive Package•
Quality•
Brand Name•

Q4. Companies are investing large amounts of money for using celebrities;
do you think its helping them to increase their total revenue?

Yes•
No•
Don’t know•




Q5. Does the presence of celebrities like Shahrukh Khan, Amitabh
Bachan or Aishwariya Rai in an advertisement encourages you to purchase
the product or service?
Yes•
No•
Not sure•

                                                                        63
Q6. Do you believe the celebrities also use those products which they
themselves endorse?
Yes•
No•
Not sure•
9. What type of celebrity endorsement persuades you personally to
purchase products?
• Film star
• Famous personalities
• Cricketer
• Politician

Q7. Please rate the following celebrities as a brand endorser:-

a) Aishwariya Rai for L’Oreal
Excellent•
Average•
Poor•
Unsure•

b) Amir Khan for coca cola
Excellent•
Average•
Poor•
Can’t rate•

c) Sushmita Sen for Olay creams
Excellent•
Average•
Poor•
Can’t rate•


Q8. What do you value the most when purchasing a product?
Price of the product•
Celebrity endorsement•
Quality of the product•
                                                                        64
Value for money•

Q9. Does celebrity endorsement help in brand promotion?
Yes•
No•
Not sure•

Q10. What means of advertisements persuades you the most to purchase
a product?
• Television
• Radio
• Newspaper
• Magazines
• Internet

Q11. What do you think is the reason for the companies to choose celebrity
endorsement for promoting their products?
Easy recognition of product•
Can’t generate new ideas•
to be able to increase sales and profit•
To compete strongly•




                                                                        65
                  BIBLIOGRAPHY


 Brand Equity (Economic Times)

 Advertising and Sales Promotion strategy by Gerard J. Thellis.

 Advertising Excellence by Bovee, Thill Dovel and Wood.

 Advertising Principles and Practice, 2nd Edition by Williom wells, Vohn

   Burnett, Sandra Muriarty.

 Advertising Promotion and supplemental Aspect of Integrate marketing

   Communication, 4th edition, by Shimp.

 Brand management by YLR Moorthi

 Building strong brands by David A. Aaker.

 Consumer behavior by Robert East

 Consumer Behavior, 6th Edition, by Lean G. Sehiffman and Leslic lazan

   Kanuk.

 Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.

 Managing Brand Equity -by David a Aaker




                                                                       66
 Marketing management ,3rd Edition by V.S. Ramaswami and S. Nama

  Kumari

 Marketing management by S.A. Sherlekar

 Marketing Management 9th Edition by Philip Kotler

 Marketing Nuggets by Dr. S. Ramesh Kumar

 Strategic marketing -July-August 1999

 What's in a Brand by Johm Philip Jones

 www.google.com




                                                               67
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