How to Sell with Celebrities, (especially Tiger Woods)
University of Navarra
Sanjeev Nath
“One approving nod from a famous face can translate into millions in brand sales.”
www.etstrategicmarketing.com
What do they Advertise?
• David Beckham
– Vodaphone, Pepsi, Real Madrid
• Annika Sorenstam
– Calloway Golf, Mercedes Benz
• Michael Jordan
– Nike, Gatorade, Hanes
• Tiger Woods
– Buick, EA, Nike
Why do Stars Make Sense?
• What do you think?
Why do Stars Make Sense?
• Establishes credibility for target audience
– Creates a sense of trust – Great for new products, especially from an established company
• Attracts attention
– Breaks through hundreds of advertisements making the brand more easily visable
Why do Stars Make Sense?
• Associative Benefit
– If the celebrity uses the product and improves, so will the consumer
• Psychographic Benefit
– Since stars are loved, the feeling toward them may translate to the product
• Imitating the favorite sports or movie star
– “I am Tiger Woods.”
Why do Stars Make Sense?
• Demographic Connect
– Reaches a specific target audience based on… – Age, gender, wealth, geography
• Mass Appeal
– Universal, able to reach more demographic audiences
Critics Against Celebrity Ads
• Why do you think celebrities are sometimes a bad idea?
Critics Against Celebrity Ads
• Brands need to have an identity
– The product must stand for something, and the celebrity should sell what the product stands for
• “I use this product, and so should you,” does not work
– Customers are now receiving more information from a variety of sources: – Internet, consumer awareness groups, competitors
Why Celebrity Ads Fail
• Improper Positioning
– Relying on the celebrity name only does not work:
• “Just because I use it, everyone should. No matter what the product is.”
• Brand Celebrity Disconnect
– The celebrity does not match the product – E.g. Britney Spears for a Toyota family car Soluna Vios.
Why Celebrity Ads Fail
• Clutter Flutter
– Too many celebrities doing advertisements reduces the advantage of this technique – The same celebrity advertises many products
• Dissatisfaction with the Product Quality
– Quality is more important than style – No celebrity can sell a flat soccer ball
Why Celebrity Ads Fail
• Confusion Skepticism
– Remembering what the celebrity is advertising
• Celebrity is so funny/interesting, the product is lost
• Skeptical Questions:
– Is it possible that the celebrity was helped this much by the product? – How much did the company pay the person to join?
Risks with Celebrities
• Celebrity Mistakes
– Trouble with the law/drugs, scandals – E.g. Magic Johnson HIV issue
• Company Reaction to mistakes
– Continuing w/celebrity may affect the image (Guilty by association) – Finding a new celebrity is very expensive
• Company may already be defined by celebrity
Hedging the Risk
• Look for perfect criminal and personal record • Try to use more than one celebrity
– Pepsi: Several Cricket, Basketball, and Film stars
• Avoid the Force-Fit
Avoiding the Force Fit
• Choose the celebrity based on the product
– Never choose the celebrity and design the message around them – The celebrity is not the ad, rather the means of communicating a specific message
• Add a celebrity after developing identity
– Avoid using advertising to create the identity – Protects against celebrity failures
So Why a Tiger?
• Why is Tiger Woods a marketers dream?
So Why a Tiger?
• Many believe that Tiger Woods is a Marketers Dream • Let’s look at his strong relationships with the products/companies that he sponsors. We will focus mainly on Nike Golf
Tiger plays golf...
• Golf
– Number 1 Player in the world for many years – Recognized as one of the best players in history – Well respected by his competitors
• Player of the Year Title is chosen by the players
Tiger works with good people...
• Companies
– Contain own strong identities:
• Buick, EA, Nike
– Nike: More than one celebrity
• If he fails, the company may not
– Tiger’s association with one company helps sell products for other companies (association)
• E.g. Wears a Nike hat in other commercials
– Companies are all associated with Golf
• Buick Classic Golf Tournament • EA Sports Golf Game
Tiger’s Product Mix
Age 5
Age 45
Age 95
Tiger hits the rich and poor...
• Good two parent family
• Father African American, Mother is from Thailand • Family was not wealthy
• Beautiful Wife
• Model from Swedan
• Good looking, very smart
• Attended Stanford, • Writers often comment about his intellect
• Name and face are easy to recognize • Clean criminal & personal record
Tiger is liked by bad golfers...
• Tiger supports a high quality product • Poor golfers (golfers starting out)
– Will try anything to improve their game – Do not know what brand to choose between 30 – Became interested in golf because of Tiger Woods – Tiger Woods products are stylish – May own the Tiger Woods video game – May want to “be like Tiger.”
Tiger is liked by good golfers...
• Tiger supports a high quality product • Strong golfers (great players)
– Often look for a new edge – May own a Buick or other Tiger sponsored products
• Feel of a champion (emotional connect)
– Tiger’s clubs and ball are customized but…
• Not everyone knows this fact
Everyone likes our Tiger...
High Wealth
Poor Golfers
Strong Golfers
Low Wealth
Nike Golf Ball Market Share
• How much ($) is Tiger worth? • Assume
– 1€ = $1.30 – .77€ =$1.00
Nike Golf Ball Market Share
Nike Golf Ball Market Share Percentages 10 8 6 4 2 0 0 6.3 Market Share 9.5
1999 0
2001 6.3
2003 9.5
Market Share
Nike Golf Ball Market Share
• Golf balls contain the 2nd most lucractive industry margins ($500 million annually) • Since Tiger joined, golf balls have earned Nike $72 million GM on a $100 million contract
• Note: Tiger sells other Nike products besides golf balls
Assumption: 60% Gross Margin 6% Nike Market Share
Conclusion: It’s about...
• Celebrities can communicate, but not save a product! • Tiger is a fit for his products, better than anyone else out there today.
Major Sources
• • • • • www.estrategicmarketing.com www.forbes.com www.money.cnn.com www.espn.com www.indiantelevision.com