Celebrity Endorsement :

A Strategic Promotion Perspective

DR. PU1A KHATRI`
The celebrity endorser is a panacea for all
marketing woes. It is today a frequently
used approach in marketing for all brand
building exercises. The star appeal
however needs to be perfectly blended
intelligently and strategically to reap the
Introduction
Strategic Positioning and eIIective communication are the two most
important 'mantras guiding brand success in today`s competitive
marketing environment. Corporate are ensuring all possible eIIorts to
promote their brands and to grab the customer`s mind share. The impetus
is on attracting the customer`s attention and developing positive
associations not just to inIluence recall but also to induce trial and
eventually eIIect purchase decisions.
In a market where advertising plays a vital role in coordinating
consumer purchases, it becomes pertinent Ior companies to induct all
possible measures to inIluence motivate and inculcate desire to purchase,
in the customer through an eIIective advertising campaign. Theory and
practice proves that the use oI superstars in advertising generates lot oI
publicity and attention. (Ohanian,1991).
The billion oI dollars spent on celebrity endorsement contracts show
that celebrities like LIZ Hurley, Britney spears and Tiger woods play an
important role in the advertising industry. (DaneShvary and
ABSTRACT
benefits and make brands .It serves as an
aid to expedite recall and influence
purchase. But can also be a nightmare
unless accompanied by a powerful idea,
effective and impeccable positioning

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26
Dr. Puja Khatri
Schwer,2000,Kambtsis et al.2002). It is estimated that the companies in
US spent $800 million in 1998 to acquire talent entertainers, athletes and
other high proIile personalities -to spot light in advertising, promotion
and PR campaigns (Clark,Hastmann, 2003) In India advertisers pour crores
oI rupees every year into celebrity advertising. Think oI Sachin Tendulkar
-he means PEPSI in soIt drinks, Boost in malted beverages, Fiat Palio in
cars, TVS victor in two wheelers, Colgate Total in toothpaste, Britannia in
Biscuits, Visa in credit cards, Airtel in mobile services and many more
brands.
The underlying question is iI and how the lively interest oI the public
in ' The rich and the Iamous 'be eIIectively used by companies to promote
their brands and consequently increase their revenues. (Schlecht,2003)
As a Iirst step to answer this question, this paper will examine the
relationship between endorsements and brand there by unearthing risks
and returns related to this strategy. In order to draw the relationship
between celebrities, the brands they endorse and the perception oI the
people related to the two, models and concepts like source credibility,
match up hypothesis ,model oI meaning transIer and multi product
endorsement would be discussed. The Iollowing paragraph will give a
brieI introduction into the topic oI celebrity endorsement to provide a
Iramework Ior later discussions.
o is a celebrity ?
Celebrities are people who enjoy public recognition by a large share
oI a certain group oI people whereas attributes like attractiveness,
extraordinary liIestyle are just examples and speciIic common
characteristics cannot be observed though it can be said that within a
corresponding social group celebrities generally diIIer Irom the social norm
and enjoy a high degree oI public awareness (Schlecht, 2003).(Anonymous,
Business Standard, Dec,2003)This is true Ior classic Iorms oI celebrities
like actors (ex Sharukh khan, Amitabh Bachhan), models ( John Abraham,
Malaika Arora, Diya Mirza) Sports athletes (ex. Sachin Tendulkar, Sania
Mirza) entertainers (Barkha Dutt, Shekhar Suman) And Pop Stars (Mika,
Dailer Mehndi) but also Ior less obvious groups like businessmen (ex
Dirubhai Ambani) or politicians (Laloo Prasad Yadav) Besides these there
are Iictional celebrities like Ronald McDonald, Fido dido, gattu, Amul
Girl, Pillsbury doughboy and the like. Celebrities appear in public in
diIIerent ways. First, they appear in public when IulIilling their proIession
ex Sachin Tendulkar is loved by millions Ior his wonderIul perIormance
in the cricket Iields. Further more, celebrities appear in public by attending

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00-rity Endors020nt : A Strat0ic Pro2otion P0rsp0ctiv0
special celebrity events ex. IilmIare star awards, Videocon screen awards
etc. In addition they are present in News, Fashion magazines and tabloids,
which provide second source oI inIormation on events and private liIe oI
celebrities through mass media channels. Last but not the least celebrities
act as spokes people in advertising to promote products and
services.(Kambitsis et al, 2002, Tom et.al. , 1992)
A Iirm that decides to employ a celebrity to promote its products or
services has a choice oI using the celebrity as :
Testimonial. II the celebrity has personally used a product or service
and is in a position to attest its quality ,then he or she may give a testimonial
citing its beneIits. For instance Aishwarya Rai endorses Lux by testiIying
the quality oI the product as it Iorms a part oI her consumption basket.
Endorsement. celebrities oIten lend their names to ads Ior product or
services Ior which they may or may not be the experts For instance Sachin
Tendulkar has been endorsing the Palio brand oI Fiat.
Actor. A Celebrity may be asked to present a product or service as a
part oI character enactment rather than personal testimonial or
endorsement. For instance Sweta Tiwari oI 'Prerna Iame (Kasuati Zindagi
ki ) enacts as a housewiIe Ior Nirma`s ad campaign. It has nothing to do
with her on screen or oII-screen image In Iact she just enacts the character
and expectations oI a normal housewiIe Irom a detergent bar.
Spokesperson. A celebrity who represents a brand or company over
an extended periods oI time oIten in print and TV ads as well as in personal
appearances is usually called a company`s spokesperson. (SchiIIman and
Kanuk,1997)The reason Ior using celebrities a spokesperson goes back to
their huge potential inIluences. Compared to other endorsers, types,
Iamous people achieve a higher degree oI attention and recall. They
increase awareness oI a company`s advertising create positive Ieelings
towards brands and are perceived by consumers as more entertaining
(Solomon, 2002) Using a celebrity in advertising is thereIore likely to
positively aIIect consumer`s brand attitude and purchase intentions

ndia nk - Do Celebrities Create Brands?

by Ramesh Thomas
December 31, 2001

Michael Jordan is Nike's "Air" and Pierce Brosnan is Omega's "Seamaster." s this really true?
Across the world, celebrities have been used for a variety of brands, big and small, new and old, winners
and losers.
ndia has opened its markets only recently and is witnessing an era of competition that its industry never
imagined. Many venerable old organizations are now clutching at expensive straws to survive.
Consequently, one of the most noticeable trends over the last five years has been the plethora of
celebrity endorsements. Across product categories, from toiletries to telecom, hi-fi's to hotels, ready-
mades to razor blades, everyone seems to be roping in a "Brand Ambassador" to sell their products. f
we take a look at the set of brand ambassadors who have been contracted so far, they are all either from
the world of film or cricket. This is because ndia produces and consumes vast quantities of both.


So, our most celebrated cricket icon (perhaps our most celebrated personality), Sachin Tendulkar
endorses everything from radial tires and the Palio car to Pepsi, Visa, Adidas, stock trading portals and
music systems. The branding question is "Will the real Tendulkar please stand up?" Can he really be
all of these?
Which brings us immediately to the term "endorsement." By definition we must be endorsing some trait
or character of the brand. Theoretically, anybody can endorse anything if he carries credibility. But like
the old advertising adage says, "the medium is the message." Shouldn't it apply to endorsements as
well? After all celebrities are who they are for a strong streak they possess. So, James Bond is
dashing, Michael Jordan breaks limits and Andre Agassi doesn't give up. By this logic, could we ever

visualize Sean Connery endorsing the Rolls-Royce or John McEnroe as a brand ambassador for the
Four Seasons?
Don't get me wrong, am not advocating a ban on celebrity endorsement. Because celebrities can
catalyze brand acceptance and provide the enormous momentum that brands require. However, as the
term suggests, 9ey mus9 endorse some9ng. And that something must be intrinsic to the brand.
But for celebrity endorsements to work, they should work on some fundamental ground rules:
a. Articulate with clarity on the brand promise (What am ?) and the brand personality (Who am ?)
b. Create consensus among the brand team on what the communication objectives for the campaign
are
c. Focus single-mindedly on the characteristics the chosen celebrity should possess, in order to
provide synergy with the brand to be advertised
d. Overtly establish what the celebrity is going to communicate
Once these criteria are met, endorsements can work as a force multiplier. On the flip side, the greatest
danger is that because celebrities already carry a strong brand character, a mismatch could be
counterproductive to the brand. t is very tempting to be carried away by the short-term exposure and
interest that an endorsement could generate.
Finally, given the huge outlay that a celebrity presence demands, isn't it time that shareholders began
asking fundamental questions on brand investments too?




#amesh J. Thomas is a principal executive officer at Equitor Management Consulting, based in
Bangalore, ndia. As a brand consultant, he has spent the last two decades advising on brand
development and strategy worldwide.