CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL

CONSUMER BEHAVIOUR EXECUTIVE BRIEFING

March 2014
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An advertisers canvas
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
A CELEBRITY'S
BODY IS AN
ADVERTISER'S
CANVAS.
Mokokoma Mokhonoana
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A-listers:
Actors
Singers
Models
Athletes
VIPs
Royalty
Politicians
Tycoons
TV experts
Celebrity chefs
Chat show hosts
Doctors, etc
Types of Celebrity
Reality
TV
stars
Internet stars
Self-made
The different types of celebrity
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
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The Worlds 10 Most Powerful Celebrities in 2013
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
1. Oprah Winfrey
2. Lady Gaga
3. Steven Spielberg
4. Beyonc Knowles
5. Madonna
6. Taylor Swift
7. Jon Bon Jovi
8. Roger Federer
9. Justin Bieber
10. Ellen DeGeneres
Source: Forbes Celebrity 100
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Celebrity marketing strategies
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
Strategy Examples
Celebrepreneurs (brand empires) Oprah Winfrey, Brand Beckham, Jamie Oliver
Licensing of name The George Foreman grill
Brand ambassadors (celebrity
spokespeople)
Tiger Woods (Nike), Jane Fonda (LOral), Beyonc (Pepsi).
Celebrity-branded products
Lady Gaga Fame (fragrance), Beats by Dr Dre (headphones),
Ken Hom (woks)
Brand collaboration Sean Combs (P Diddy)/Diageo, Rihanna/River Island
Assuming a company title
Jay-Z (co-brand director for Budweiser Select), Alicia Keys
(global creative director for Blackberry)
Co-advertising partnerships Samsung/Jay-Z
Social media (paid mentions) Kim Kardashian, Justin Bieber
Lending celebrity voices Kevin Hart/Waze
Promoting charitable causes
Angelina Jolie & Brad Pitt (Maddox Jolie-Pitt Foundation), Elton
John (Elton John AIDS Foundation)
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Greater emphasis on personal appearance and self-image.
Age blurring: children growing up too quickly and adults trying to
prevent signs of ageing, in order to conform to the glamorous or
youthful images portrayed by celebrities and the media.
Growth in sales of a range of products, from cosmetics, anti-agers,
tanners, false eyelashes, hair colourants and mens grooming to
fitness and weight loss products, fashion accessories and cosmetic
surgery.
Huge popularity of celebrity fragrances, thanks to frequent high profile
launches by numerous celebrities.
Booming market for cosmetic procedures to emulate celebrities
especially in Asia.
Huge publicity accorded to celebrity moms (eg the royal birth in
2013) has been a major driver in the market for pregnancy and baby
products.
Impact on consumer behaviour and markets
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
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Global sales of fashion and beauty-related products 2007/2012
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
US$ billion
0 100 200 300 400 500 600 700 800
Anti-Agers
Men's Grooming
Fragrances
Colour Cosmetics
Hair Care
Childrenswear
Sportswear
Men's Clothing
Women's Clothing
2012
2007
Source: Euromonitor International
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0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
15-29 30-39 40-49 50-59 60+
Film/television stars
Celebrities
Musicians/performers
Younger consumers are most likely to look up most to celebrities
Only 10% of global respondents said they look up most to celebrities.
Younger consumers hold celebrities in far greater esteem than older ones. For the teenager subgroup (15-
19), the figure was 18% for celebrities,16% for film/TV stars and 23% for musicians/performers.
Chinese consumers have most regard for celebrities
Chinese consumers were the most likely say they look up to celebrities most in their life (29%).
When it came to musicians and performers specifically, Brazil ranked highest, with 25% looking up most to
this type of celebrity.
In the Global Consumer Trends Survey 2013, as many as 26% of respondents in India were prepared to
pay a lot more for an endorsed product, compared with a global average of just 16%.
Role models (To whom do you look up most in your life?)
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
Source: Euromonitor International Global Consumer Trends Survey 2011
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Recommendations for companies
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
Compatibility is crucial: The image of the celebrity must be a good fit
with the identity of the brand he or she is endorsing.
The behaviour of the celebrity reflects on the brand: Endorsers must
be well-liked and reliable, as they may become a liability if their
reputation is tarnished.
Transient celebrities should be avoided: Celebrities must be
enduring if they are to be long-term brand partner.
Less is more: Multi-celebrity endorsements for the same brand may
lead to confusion or misinterpretation by consumers.
Social networks (eg, Twitter, Facebook or Instagram) enable
companies to tap into a celebritys fan base to help them sell more
products and reach a wider audience.
Mutually beneficial partnerships, such as a smartphone brand
buying temporary exclusivity on a popular singers new album
release, are win-win for both the brand and the celebrity.
Big name celebrities can help charities and NGOs bring attention to
their causes and thus encourage more donations.
Persuading celebrities to use their products in public can provide
brands with buzz and exposure (eg celebrity mothers seen to be
using particular pregnancy or baby products).
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Recommendations for celebrities
CELEBRITY POWER AND ITS INFLUENCE ON GLOBAL CONSUMER BEHAVIOUR
Celebrities do not necessarily need to be an expert in endorsing a
particular product. However, they must believe in the brand they are
promoting, since authenticity is key to success.
They must be careful not to be seen using competing brands if they
are a spokesperson for another. This could destroy the credibility of
the endorsement.
A celebrity must become involved in creating and promoting their
signature brands. Success is usually down to a combination of
celebrity input, a large fan base and quality of product.
Celebrities could seek out endorsement opportunities in new markets,
such as China, where the concepts of consumerism and celebrity
endorsement are relatively new and growing.
Use of social media is an excellent way to connect with fans, build up
a bigger fan base and promote celebrity brands.
Pushing for a strategic role within a partner company (eg, creative
director) allows more control over the brand and adds to a celebritys
personal credibility.
Philanthropic work gives celebrities a positive image (eg, acting as a
spokesperson for a charity or donating proceeds of a product to a
cause).
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