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WTITTEN REPORT

OF

SEMINAR ON ISSUE OF MARKETING

TOPIC- Celebrity Endorsement

Submitted to- submitted by-Mrs. Kuljeet minhas parmjit singh

10801893

Q1809a22

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Defining a 'Celebrity'

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

The term Celebrity refers to an individual who is known to the public (actor, sports

figure, entertainer, etc.) for his or her achievements in areas other than that of the product class

endorsed This is true for classic forms of celebrities, like actors (e.g., Amitabh Bachchan,

Shahrukh Khan, Rani Mukherjee, Preity inta, Aamir Khan and Pierce Brosnan), models (e.g.,

Mallaika Arora, Lisa Ray, Aishwarya Rai, Naomi Campbell, Gisele Buendchen, etc), sports

figures (e.g., Sachin Tendulkar, Zaheer Khan, Sourav Ganguly, Anna Kournikova, Michael

Schumacher, Steve Waugh, etc), entertainers (e.g., Cyrus Broacha, Oprah Winfrey, Conan

O'Brien), and pop-stars (e.g., Madonna, David Bowie) - but also for less obvious groups like

businessmen (e.g., Donald Trump, Bill Gates) or politicians.

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Celebrity Endorsement

Celebrity endorsement is a special type of advertisement which includes a famous person from

film fraternity, athletes, and sports, modeling world etc. it helps in promoting the product brand

and also increasing the sales of the product.

McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoys public

recognition and who uses this recognition on behalf of a consumer good by appearing with it in an

advertisement (marcoms), is useful, because when celebrities are depicted in marcoms, they bring

their own culturally related meanings, thereto, irrespective of the required promotional role."

Friedman and Friedman (1979) found empirical evidence that, in the promotion of products

high in psychological and/or social risk, use of celebrity endorser would lead to greater

believability, a more favorable evaluation of the product and advertisement, and a

significantly more positive purchase intention.

Thus, companies use celebrities to endorse their products, however, there are deeper attributes

that are involved in celebrity endorsement. Celebrities might endorse as a brand

ambassador or a brand face

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Selection of Celebrity

Anyone who is famous may be the right celebrity. However, the appropriateness of the celebrity

largely depends on the product or service. Most advertisers insist that their celebrity

spokespeople have charisma and current popularity. That is why we see more movie and

television stars, athletes, real-life heroes, and musicians acting as brand ambassadors in the

market.

The choice of celebrity is critical for the success of the advertisement. The celebrity should have

high recognition, high positive affect, and the image of the celebrity must match with that of the

product. For this reason, famous sportsmen are used to endorse sporting goods: Michael Jordan

& Nike, Tiger Woods and Nike, David Beckham endorses Adidas, etc. While it is totally

inappropriate for movie stars to endorse a sports products.

Celebrity endorsements must be used judiciously. If the celebrity is too famous or too popular,

then the celebrity will overpower the product - i.e., people will remember seeing only the

celebrity and forget the product. This happened when Britney Spears came in a Pepsi

Commercial in 2001. Britney Spears was at the height of her popularity - viewers saw the

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advertisement to see Britney Spears and forgot all about Pepsi. The cost benefit analysis of using

celebrity in marketing communications is bit tricky. But the general belief is that using celebrity

is a lot cheaper in building a brand. For example, S.Kumars built the brand "Reed & Taylors"

as a premier suiting material by having Amitab Bachan in its advertisements. To achieve the

same without a celebrity would have taken longer time & more money. In a span of less than two

years after launch, the brand Reed & Taylors" has become the second largest seller of cloth for

mens suits in India.

Selection of the right celebrity is crucial. The needs of the brandrather than the fame of the

celebrityshould be the primary criteria when selecting a celebrity spokesperson. The celebrity's

physical attractiveness, values, and credibility also matter tremendously. However, it would be

suicidal to forget about the target audience.

Match between celebrity and brand image

The celebrity needs ot match the product. A good brand campaign idea and an intrinsic link

between the celebrity and the message are musts for a successful campaign. Celebrities are no

doubt good at generating attention, recall and positive attitudes towards advertising provided that

they are supporting a good idea and there is an explicit fit between them and the brand. hand,

they are rendered useless when it comes to the actual efficiency of the core product,creating

positive attitudes to brands, purchase intentions and actual sales.

Celebrity-Target Audience Match

Smriti Irani endorsing the WHO recommnded 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

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connect with the target audience since mothers medicate their children with ORS. The inserial

placement of the campaign in "Kyunki Saas Bhi Kabhi Bahu Thi" has won it an award from PR

Week. Similarly, Irfan Pathan endorsing Hero Cycles has gained the brand immense recall and

embarked through the positve association between the consumer and the brand.

Fit with the Advertising Idea

Marketers now seek to adopt 360 degree brand stewardship in which the brand sees no limits

on the number of contact points possible with a target consumer. Advertising ideas, thus,

revolve around this approach, and the celebrity endorsement decisions are made through

these startegic motives

Richard Gere's recent endorsement for VISA in India has gained acclaim due to

itsinnovativeness and consumer connect. Brand marketers say that research reveals that Richard

Gere was the most popular face across the Asia Pacific region, and would also fit into the

persona of the brand meeting their communication objective to enhance VISA's brand leadership

and consumer preference, and the motive to continue the "All it Takes" empowerment platform

featuring international celebrities

Celebrity Values

Celebrity branding is all about the transfer of the value from the person to the product he endorses or

stands for. There are two concerns here. The first is how long this could last. Can he person maintain

his popularity.The lifecycle of celebrity popularity varies a lot. The second concern is his private life

-personal integrity. If he is implicated in any kind of scandal, that would ruin the brand. 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.

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Costs of Acquiring the Celebrity

Consequently, companies must have deep pockets to be able to afford the best available

celebrities. 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-

1.Sachin Tendulkar's price is believed to bebetween Rs. 2.0-2.5 crore per endorsement

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

crore.

3. Film-star Hrithik Roshan was rumored to have picked up Rs. 2 crore for the Fly With Hrithik

campaign to push Close-Up

4. Shahrukh Khan's rate seems to be between Rs. 2.5-3.0 crore.

5. Aishwarya Rai apparently picks up Rs. 1.25 crore for an endorsement

6.the Indian cricket captain Saurav Ganguly is believed to get between Rs. 90 lakh to Rs. 1.5 crore

7.film-star Aamir Khan apparently makes Rs. 1.5 crore per endorsement.

Successful Celebrity Endorsements for a Brand -

Hindi film and TV stars as well as sports-persons were roped in to endorse prominent brands.

Advertisements featuring stars like Tabassum (Prestige Pressure Cooker), Jalal Agha (Pan

Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) became

common. Of course, probably the first ad to cash in on star power in a strategic, long-term,

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mission statement kind of way was for Lux soap, a brand which has, perhaps as a result of this,

been among the top three in the country for much of its life-time.

Advantage of celebrity endorsement

Establishment of Credibility: Approval of a brand by a star fosters a sense of trust for that brand

among the target audience- this is especially true in case of new products. We had the Shah Rukh-

Santro campaign. At launch, Shah Rukh Khan endorsed Santro and this ensured that brand

awareness was created in a market, which did not even know the brand.

Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter of

advertisements and making the ad and the brand more noticeable.

PR coverage: is another reason for using celebrities. Managers perceive celebrities as topical,

which create high PR coverage. A good example of integrated celebrity campaigns is one of the

Worlds leading pop groups, the Spice Girls, who have not only appeared in advertisements for

Pepsi, but also in product launching and PR events.

Time saving: Celebrity is able to build brand credibility in a short period of time.

Higher degree of recall: People tend to commensurate the personalities of the celebrity with the

brand thereby increasing the recall value. Golf champion Tiger Woods has endorsed American

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

007 Pierce Brosnan promotes Omega, BMW, and Noreico.

Associative Benefit: A celebritys preference for a brand gives out a persuasive message - because

the celebrity is benefiting from the brand, the consumer will also benefit.

Mitigating a tarnished image: Cadbury India wanted to restore the consumer's confidence in its

chocolate brands following the high-pitch worms controversy; so the company appointed Amitabh

Bachchan for the job. Last year, when the even more controversial pesticide issue shook up Coca-

Cola and PepsiCo and resulted in much negative press, both soft drink majors put out high-profile

damage control ad films featuring their best and most expensive celebrities. While Aamir Khan led

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the Coke fightback as an ingenious and fastidious Bengali who finally gets convinced of the

product's `purity,' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a

television commercial which drew references to the `safety' of the product indirectly.

Psychographic Connect: Celebrities 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.

Providing testimony: Another benefit of using celebrity endorsers is that s/he can provide

testimony for a product or service, particularly when the product has contributed to their celebrity.

The more familiar an endorser, the more likely consumers are to buy the endorsed product.

Rejuvenating a stagnant brand: With the objective of infusing fresh life into the stagnant

chyawanprash category and staving off competition from various brands, Dabur India roped in

Bachchan for an estimated Rs 8 crore.

Disadvantage of Celebrity Endorsement

The reputation of the celebrity may derogate after he/she has endorsed the product : Pepsi

Cola's suffered with three tarnished celebrities - Mike Tyson, Madonna, and Michael Jackson.

Since the behaviour of the celebrities reflects on the brand, celebrity endorsers may at times

become liabilities to the brands they endorse.

The vampire effect: This terminology pertains to the issue of a celebrity overshadowing the

brand. If there is no congruency between the celebrity and the brand, then the audience will

remember the celebrity and not the brand. Examples are the campaigns of Dawn FrenchCable

Association and Leonard RossiterCinzano. Both of these campaigns were aborted due to

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celebrities getting in the way of effective communication. Another example could be the Castrol

commercial featuring Rahul Dravid.

Inconsistency in the professional popularity of the celebrity: The celebrity may lose his or her

popularity due to some lapse in professional performances. For example, when Tendulkar went

through a prolonged lean patch recently, the inevitable question that cropped up in corporate

circles - is he actually worth it? The 2003 Cricket World Cup also threw up the Shane Warne

incident, which caught Pepsi off guard. With the Australian cricketer testing positive for

consuming banned substances and his subsequent withdrawal from the event, bang in the middle of

the event, PepsiCo - the presenting sponsor of the World Cup 2003 - found itself on an uneasy

wicket

Multi brand endorsements by the same celebrity would lead to overexposure : The novelty of a

celebrity endorsement gets diluted if he does too many advertisements. This may be termed as

commoditisation of celebrities, who are willing to endorse anything for big bucks. Example, MRF

was among the early sponsors of Tendulkar with its logo emblazoned on his bat. But now

Tendulkar endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has scaled

down.

Celebrities endorsing one brand and using another (competitor): Sainsburys encountered aproblem with Catherina Zeta Jones, whom the company used for its recipe advertisements, when

she was caught shopping in Tesco. A similar case happened with Britney Spears who endorsed one

cola brand and was repeatedly caught drinking another brand of cola on tape.

Mismatch between the celebrity and the image of the brand: Celebrities manifest a certain

persona for the audience. It is of paramount importance that there is an egalitarian congruency

between the persona of the celebrity and the image of the brand. Each celebrity portrays a broad

range of meanings, involving a specific personality and lifestyle. Madonna, for example, is

perceived as a tough, intense and modern women associated with the lower middle class. The

personality of Pierce Brosnan is best characterized as the perfect gentlemen, whereas Jennifer

Aniston has the image of the good girl from next door.

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Types of Celebrity Endorsements

Celebrity branding has many aspects. A slight change in the type of branding used can result in

either a great success or a dismal failure. Celebrity branding falls into five general categories:

y Testimonial: The celebrity acts as a spokesperson for the brand.y Imported: The celebrity performs a role known to the audience.y Invented: The celebrity plays a new, original role.y Observer: The celebrity assumes the role of an observer commenting on the brand.

Harnessed: The celebrity's image is integrated with the ad's storyline.

Objectives of celebrity endorsement

1. Establish the product needThis is more important in new-to-world category of products In Indian context, consider the

advertisement for Polio Immunization drive - the TV advertisement featured Amitab Bachan

telling that immunization is a must for every child - while people suffering from polio are

shown in the background along with healthy kids. This advertisement used a celebrity to

create the need for polio immunization.

Another good example is Toyotas advertisement of Innova in India. The TV advertisement

prominently shows Amir Khan playing different roles while traveling in an Innova. The

different roles - establish the need for such a big car in India.

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Create Brand Awareness

Once the need for a product is established, customers must be able to associate the brand

with the product category. For example iPod is strongly associated with portable MP3

players, Nike with sports shoes etc..

A classic example of this is Nikes use of Michael Jordan advertising for Nike. This

advertisement instantly created a strong association of Nike with basketball shoes.

2. Set customer expectations

Brand value comes from the customers experience with the product. If the product meets orbeats his expectations, then a positive brand image is created, else a negative brand image is

created. Therefore it is essential to set the customer expectations accordingly.

This is most common in established consumer products - Beauty products, household

cleaning products, food products etc.

3. Create a purchase intention

These are marketing promotion advertisements - Buy one, get one free, or get additional

discounts if you buy within a particular date etc.. The sole purpose of such communication

messages is to encourage customers to buy immediately or within a short period after seeing

Use of celebrity endorsements to create a purchase intention has been very limited. This is

mainly because such advertisements adversely affect the personality brand value of the

celebrity. Being associated with a discount deal is not favorable image for the celebrity and

the customer.

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These figure show us top 5 BRANDS ENDORSED in2009 and Dhoni is at topof list.

CELEBRITY: DHONI

The young, handsome, self controlled, composed, autonomous cricket captain of Indian

young Brigade is one of the most famous images in Indian market. In India cricket is religion and

cricketers are placed among the33 crore gods of Indians and obviously the cricket Captain is the

king of Gods. So Dhoni has his appeal to Indians in general. Dhoni is a brand in himself and a

attractive choice for the marketers as a brand endorser. Dhoni has been successfully used

indifferent advertisement as a brand ambassador. Few of the brands that Dhoni is endorsed are,

the famous Youngastan advertisement of Pepsi, Rebooks ad of Your Move and funky ad of

Lays with Saif Ali Khan.

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BRANDS ENDORSED BY DHONI

1. PEPSI: YOUNGISTAN MERI JANPepsi has always tried to tap the young segment of India through their promotions. Beginning from

the famous Ahaa series of ads to the Yah Dil Mange More to todays Youngistan Meri Jann,

Pepsi has always made ads to attract the youth. They have always chosen the young stars, may not be

established, as a face of young India. So the main reason of using Dhoni is same in case of the latest

Youngistan Meri Jann ads.

BRAND PERSONALITY:

1. The brand is vibrant, energetic. It doesnt want to be looser.

2. Pepsi is a intelligent brand which attach itself with fun and enjoyment.

3. It also shows its daring attitude, mischievous behavior and outgoing nature.

4. There is nothing opaque about the product and brand.

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ENDORCERS PERSONALITY

1. Dhoni is a youth with dareing personality.

2. He is intelligent yet humble and full of life.

3. He is the leader of young team, fun loving young gentleman with transparent

character.

Celebritys fit with the brand image

The virtue of Dhoni matches with the embedded traits of the soft drink. Either of the personalities, be

it Dhonis or be it Pepsis, joins as two consecutive part of a jigsaw puzzle. So Dhoni is a perfect

match for Pepsis brand image

CelebrityTarget audience match

The person has achieved one post which is called next to president in India. Young

generation of India love Dhoni, warship the man, Salute his virtue and get thrilled to

experience his presence. The young generation nowadays prefers to be like Dhoni if

not Sachin. So Dhoni is a idle to the young generation of India and using Dhoni as a

brand endorser is a master stroke by Pepsi.

Celebrity associated values

The value associated with Dhoni is very high. Even the parents wants their offspring

to be as prudent, as smart, as performer as Dhoni. Dhonis attitude, his transparency,

maturity acted as a magnet which attract not only the youth but also the older

generation. So Dhonis presence in an advertisement creates a positive vive for the

product in the mind of consumer which force them to think about the endorsed

product.

Costs of acquiring the celebrity

Cost to use Dhoni as the endorser of Pepsi is very high but as a multinational

company it is insignificant if they consider the gamut of brand awareness they are

creating through Dhoni.

Celebrity controversy risk

It is nil as Dhoni is known as good boy among the celebrities. So low controversy

level increase the brand image of self as well as of Pepsi.

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Celebrity popularity

It is already mentioned that Dhoni is one of the most popular person oIn India. One

can find a man who might not know how Prativa Patil looks like, but he must be a fan

of Dhoni. This popularity reduce Pepsis half of job as an advertiser.

Celebrity physical attractiveness

As a sportsman he possesses an athlete type of physic. But in addition to that he is

manly looking and with a macho image and a deadly smile, which make him more

attractive and appealing.

2. REEBOK: YOUR MOVE

Reebok is the most visible and remarkable sports brand of all time. it makes innovative products

which are making a lot of difference to consumers and athletes worldwide. As all the persons related

to sports are its target market, reebok has been using different sport celebrities for its promotion.

DHONIs YOUR MOVE is a famous advertisement of reebok. LAYS

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BRAND PERSONALITY:

1. The brand is related to sport wear.

2. Reebok attach itself with an active & athletic image.

3. An sport person is uncomplete without Reeboks products.


1. Dhoni is a young sport personality.

2. He has a fit & healthy body as well as attitude..

3. He is the leader of Indian cricket team.

4. He has achieved a remarkable position in cricket in a young age.

Now, Reebok chose Dhoni for this advertisement for following reasons..

Celebritys fit with the brand image

As Dhoni is the captain of Indian cricket team, he leads the cricket society in india

these days. Reebok needed a sport personality who has a remarkable position in sports

world as well as different image than predecessors. So it completely match to fulfill

the need of promotion of a brand having speciality in sport products.


The target market of Reebok is sport persons. Its products price are also high because

of high quality. As Dhoni is a benchmark for new entrants in sports, so he totally

match to the audiences dreams. They will supposed to buy reebok products becausethey want to reach to the level of Dhoni. And according to him, it is difficult without

sport products of as much quality as Reebok have.


The value associated with Dhoni is very high. Because Dhonis image is of a big sport

celebrity as well as youngest Indian cricket teams captain. If audience thinks Reebok

as Doni is, then it shows that Reebok has as much quality as Dhoni has. Dhonis

leading capacity reflects Reebok leading behavior in quality and standards.


Cost to use Dhoni as the endorser is very high but for a multinational company it is

insignificant. And when the profit to brand image of Reebok is measured because of

Dhoni, then the cost seems very less in comparison of that profit.

Celebrity controversy risk

It is nil as Dhoni is known as good boy among the celebrities. So low controversy

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level increase the brand image of self as well as of Reebok.


In India, cricket is most famous sport and it is played and watched by a big portion of

whole population of india. As cricketers comes just after god for Indians, so it can be

3. LAYS: Use your tongue

The ad shows Dhoni showing his tongue to the audience to confirm that the new variant of

Lays is to satisfy the taste of consumers. The crazy ad created to gain the attention of the

customer and to let the consumer aware about the new variant from the famous brand.

BRAND PERSONALITY:

1. The brand is vibrant, energetic. It some time portrait itself as a crazy personality.

It doesnt want to be looser.

2. Lays is an intelligent brand which attach itself with fun and enjoyment.3. It also shows its daring attitude, mischievous behavior and outgoing nature.

4. The product i.e. the new variant is a new launch in the market. Hence people lack

any idea about the new variant that Lays is launching.


1. Dhoni is a youth with dareing personality.

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2. He is intelligent yet humble and full of life.

3. He is the leader of young team, fun loving young gentleman with transparent

character.

TARGET AUDIENCE

Target segment is mainly youth section of India. The youth means the young generation of

both urban and rural setting. The advertisement shows the battle between politicians with

rural accent, which was meant to attract the rural segment also.

Celebritys fit with the product image

The virtue of Dhoni does not match with the embedded traits of the brand. The

Advertisement did not show the main strength of Dhoni, i.e. confidence, self

motivation and performance. Dhonis character does not match with these types of

crazy things as it matches with Saif or Srisanth. So it is a perfect mismatch with the

product campaign and endorsers personality.


The person has achieved one post which is called next to president in India. Young

generation of India love Dhoni, warship the man, Salute his virtue and get thrilled to

experience his presence. The young generation nowadays prefers to be like Dhoni if

not Sachin. He is also from small city of Jharkhand. So Dhoni is a idle to the young

generation of India and using Dhoni as a brand endorser is a master stroke by Lays.

But the for crazy youth or crazy people Dhoni may not be the perfect choice.

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The value associated with Dhoni is very high. Even the parents wants their offspring

to be as prudent, as smart, as performer as Dhoni. Dhonis attitude, his transparency,

maturity acted as a magnet which attract not only the youth but also the older

generation. So Dhonis presence in an advertisement creates a positive vive for the

product in the mind of consumer which force them to think about the endorsed

product. But the question with the ad campaign is whether the celebrity associated

value is properly encashed in the campaign or not.


Cost to use Dhoni as the endorser of Lays is very high but as a multinational company

it is insignificant if they consider the gamut of brand awareness they are creating

through Dhoni.


It is already mentioned that Dhoni is one of the most popular person in India. One can

find a man who might not know how Prativa Patil looks like, but he must be a fan of

Dhoni. This popularity reduce Lays half of job as an advertiser.

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CONCLUSION

Celebrities have always been the easiest way for a new product launch (consumer goods) and will remain

to do so in the near future on account of their mass appeal and a world full of star stuck loyal fans. But the

impact on the brand is much greater than just an advertisement showing a celebrity. We have seen that thecorrect choice of a celebrity can surely increase sales but when it comes to long term loyalty and impact

on the brand. The effect is yet somewhat debatable. In the end, the product must deliver for the customer,

no matter who endorses the product, if the customer does not see himself getting value from his purchase,

he will not buy it. But yes, celebrities over time can influence the loyalty and make a person friendlier to a

brand

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Defining a