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Impact of Celebrity Endorsement IMPACT OF CELEBRITY ENDORSEMENTS ON OVERALL BRAND SUBMITTED BY: ANUSHREE GUPTA GIRISH GIANCHANDANI MANISH SEJWAL SHIVAM SACHDEVA AMIT TAYAL PIYUSH NAGPAL 2 INTRODUCTION The modern world of marketing communication has become colorful and inundated with advertisements, and it is hard to get noticed. It is an uphill task for the designer of an advertising campaign to differentiate itself from others and attract viewers’ attention. Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of an unsuspecting person’s time to inform him or her of the amazing and different attributes of the product at hand. The challenge of the marketer is to find a hook that will hold the subject’s attention.In helping to achieve this, use of celebrity endorsers is a widely used marcom strategy. Aristotle said, “Beauty is a greater recommendation than any letter of introduction.” This could aptly summarize why innumerable products are endorsed by celebrities, with or without a significant need or benefit from the same. Similarly every product has an image. The consumer tries to consume a brand which has the maximum fit with his/her own personality/image. The celebrity endorser fits in between these two interactions, where he tries to bring the image of the product closer to the expectation of the consumer, by transferring some of the cultural meanings residing in his image to the product. Indians are die-hard movie and sport buffs; and this aspect of the consumers has invited the concept of “Celebrity Endorsement” to the world of advertisement. The purpose of this paper is to analyze the role of Celebrity Endorsement in the process of brand-building by taking appropriate examples from the advertising landscape. 3 DEFINING THE MEANING & SCOPE OF THE TOPIC BRANDING & CELEBRITY ENDORSEMENT Today, use of celebrities as part of marketing communication strategy is fairly common practice for major firms in supporting corporate or brand imagery. What is a Brand? The Dictionary of Business & Management defines a brand as: “a name, term, sign, symbol, or design, or a combination of them, intended to identify goods or services of one seller or a group of sellers and to differentiate them from those of competitor”. DEFINITION OF CELEBRITIES Celebrities are people who enjoy specific public recognition by a large number of certain groups of people. They have some characteristic attributes like attractiveness, extraordinary lifestyle or special skills that are not commonly observed. Thus, it can be said that within a society, celebrities generally differ from the common people and enjoy a high degree of public awareness. 4 In this age of intense competition, where capturing a position in the consumers’ mind space is extremely tough, celebrity endorsements give an extra edge to the companies for holding the viewers’ attention. Celebrities can catalyze brand acceptance and provide the enormous momentum that brands require by endorsing the intrinsic value to the brand. Like actors (e.g., Amitabh Bachchan, Shahrukh Khan, Aishwarya Rai,, Preity Zinta, Aamir Khan and Pierce Brosnan). Models (e.g., Mallaika Arora, Milind Soman, Naomi Campbell, etc), Television Personalities (Husain, Smriti Irani), Sports figures (e.g., Sachin Tendulkar, Sania Mirza, Anna Kournikova, Michael Schumacher, Tiger Woods, etc), Entertainers (e.g., Cyrus Broacha, Oprah Winfrey,), And pop-stars (e.g., Madonna, Shakira). But also for less obvious groups like businessmen (e.g., Vijay Mallya, Bill Gates) or politicians.Clebrities appear in public in different ways. Definition of Celebrity Endorsement According to Friedman & Friedman, a “celebrity endorser is an individual who is known by the public for his or her achievements in areas other than that of the product class endorsed.” So, in the Coco-Cola advertisement; actor Amir Khan is the celebrity endorser for the product or brand called Coke, and this process is referred to as Celebrity Endorsement. Celebrities might endorse as a brand ambassador or a brand face. 5 THE PROCESS OF CELEBRITY ENDORSEMENT The process of celebrity endorsement is more of meaning translation & meaning application. A deeper insight into this complex process is provided by the following theory. The Meaning Transfer Model McCracken, the author to this model, has suggested that, “The effectiveness of the endorser depends, in part, upon the meaning he or she brings to the endorsement process.” The celebrities’ effectiveness as endorsers stems from the cultural meanings with which they are endowed. It is a three-stage process of meaning transfer that involves the formation of celebrity image, transfer of meaning from celebrity to the brand, and finally, from the brand to the consumer. 6 The Meaning Transfer Model To explain it with the help of an example, we can take the case of Amitabh Bachhan and Polio Drops Campaign. He connects very well with every segment and every age, so there was a huge possibility of Mr. AB being able to convince the masses and in which he has succeeded. Culture The celebrities deliver meanings with extra subtlety, depth and power than anonymous models. Celebrities offer demographic information with special precision and configurations of range of personality and lifestyle meanings. They evoke the meanings in their persona with greater vividness and clarity. Celebrities actually own their meanings because they have created them on the public stage by dint of intense and repeated performance. They pass these meanings into advertisements through meaning transfer process. Preity Zinta, for example, is perceived as a fun-loving, vivacious and modern Indian woman. Endorsements The meaning transfer model proposes that the marketing / advertising firm at first should determine the symbolic properties sought for the product. Thereafter, they should consult a host of celebrities and their associated meanings. Finally, after considering budget and availability constraints, the celebrity should be chosen to represent the appropriate symbolic properties. The chosen celebrity will have some meanings associated with it which is not sought after for the product. The advertisement program should take care about keeping the unwanted meanings out of the evoked set and capture only the salient meanings. The advertisement must be designed to highlight the essential similarity between the celebrity and the product. Consumption Consumers constantly search for the object world which gives them access to workable ideas of demography, personality, lifestyle and culture. McCracken suggests that this stage of the model is most complex, as consumers must claim, exchange, care for and use the consumer goods to appropriate its meanings. Celebrities play a major role in this stage as they have created their own self, which makes them exemplary and inspirational figure to the consumers. Consumers try to emulate the celebrities admired by them and try to find out the meaning in the similar fashion. Celebrities bring the dramatic roles, fashioning cultural meanings into a practicable form. 7 RISKS ASSOCIATED WITH CELEBRITY ENDORSEMENT The concept of “Total Branding” is slowly emerging and many companies are focusing on that. They are emphasizing on their best practices, customer relationship management, and employee training and knowledge management. Internal brand management, under which the company ensures that employees and channel partners are convinced about the brand, is becoming particularly important, for they are the ones who have to deliver. Thus, the celebrity endorsement can be considered only as a carrier of what’s inside. Besides, while designing an ad campaign, one should also keep in mind that the overuse of some extremely popular celebrities often tends to confuse consumers and reduce the utility of celebrity endorsement. Another argument against celebrity endorsement involves the behavior of the celebrity. The marketing function of a company should also understand that brands should assume a much greater space than the celebrities, because their association may be temporary but the brands are permanent. The various risks associated with celebrity endorsements are as follows: - •Negative publicity - If the celebrity is strongly associated with the brand then the occurrence of the negative publicity can spill over the brand.. E.g., Salman Khan lost his endorsement deal with Thumbs-Up after his infamous incidents like buck-killing and rash-driving. •Overshadowing - When celebrity endorser is used, the risk of consumers focusing on the celebrity and not on the brand exists. •Overexposure - This risk arises when the celebrity chooses to endorse several different products simultaneously which might leave the consumers confused. E.g., Sachin Tendulkar endorses several brands such as MRF, TVS Victor, Pepsi, Fiat, Boost, etc. •Overuse - Sometimes the company can use many different celebrities to appeal to different market segment. But multiplicity of endorser might blur the image. 8 •Extinction - The favorable response obtained by a particular brand may weaken over time if the brand gets significant exposure without the association of the celebrity. If the celebrity contract is for a considerable period of time, then it can lead to draining out capital without proper return. •Financial Risk - The decision for hiring an expensive endorser may not be always feasible if there is a poor brand fit. Therefore, for celebrity endorsements to
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