03 cleb endorse

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he Ifs & Buts of Celebrity EndorsementsApr 29,2013

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Globally, ‘celebrity endorsement’ is a very powerful marketing tool, employed by

firms to build their brand equity. In India, the Lux soap is known to have been

endorsed way back in 1941 by the then famous film actress Leela chitnis.

The introduction of celebrity endorsement in Indian TV advertising is marked by the

commercials of 80’s featuring Kapil Dev, Sunil Gavaskar and Tabassum endorsing

various consumer products. So, the potential of this concept has been wellacknowledged, and tried and tested on the Indian soil for over 70 years now.

Why Endorse?

The compelling reasons for companies to yield a strategic position to celebrity

endorsement in their marketing schemes vary. Very frequently celebrities are roped in

during new brand introductions.

The basic idea remains to cash on the popularity, credibility and mass appeal of the

celebrities which is expected to help raise awareness of the brand, generate positive

associations for it, and build purchase intention among its prospective customers.

Sometimes, it’s merely a reactionary step meant to nullify the impact of celebrity

endorsement exercised by a competitor. The last decade also witnessed a novel

application of celebrity endorsements for crisis management, manifested brilliantly in

the Cadbury case to weather the ‘worm’ storm.

What are Frequently Endorsed?

Among the industries that have generously employed this marketing tool, and have

reaped healthy dividends are those representing FMCG, consumer durables,

automobile, construction, healthcare and gems and jewellery among others .

Top 10 Categories in Celebrity Endorsements on TV during Jan-Dec 2010

Rank Top Categories

1 Shampoos2 Toilet Soaps

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3 Cellular Phone Service

4 Soft Drink Aerated

5 Fairness Creams

6 Cellular Phones7 Branded Jewellery

8 DTH Service Providers

9 Washing Powders/Liquids

10 Televisions

Note: Ranks are based on Secondages

Source: AdEx India (A Division of TAM Media Research)

Who Endorses?

Among the public figures, cinema and TV actors, artists and sportspersons are said to

be the first choice for endorsements in India, followed by politicians, journalists,

activists and some others who have been, or, promise to be very successful in their

niche areas. It is also true that a number of ordinary faces also gained celebrity status

with their appearance in some iconic ads, like Surf’s Lalitaji, the Complan boy and the

Rasna girl to name a few.



Note: Figures are based on Secondages Source: AdEx India (A Division of TAMMedia Research)

Choice of a Celebrity

The ‘consideration set’ of personalities for endorsement must be guided by the nature

of customers a brand serves. Its target market or segment can be broadly identified on

the following parameters: geographic, demographic, psychographic and behavioural.

A company needs to feel the pulse of its customers, as the heart of a successful

celebrity endorsement lies there. It decides the avatar a celebrity personifies, the

message she communicates and the medium through which it is conveyed. The lingo,

accent, dressing and props used in an ad that may appeal to urban customers may not

be the most popular and effective ones in rural settings. Similar is the case with

distinct genre of celebrities appealing to different members in the same family, say,

children, teenagers, housewives and elderly.

The role a celebrity plays in an ad depends on the kind of brand being endorsed. When

it comes to lifestyle, fashion and luxury products, the entire aura and cult figure of the



celebrity needs to be accentuated. In the minds of consumers, this kind of product is

usually placed as an aspirational one and the focus is more on emotional appeal. But

when there is a repeat purchase or low involvement product, the functional benefits

tend to be highlighted more. Hence, to add to the believability factor, the celebs areusually made to resemble a common citizen representing shared points of pain and

happiness.

Rocketing Endorsement Fees

Financially, celebrity endorsement is a costly proposition for most companies. With

contract fees crossing Rs 1 crore for top celebrities in India, due diligence needs to be

carried out to closely estimate the expected returns on investment (ROI). It is thus

better advised to take professional help before a company takes a call on celebrity

endorsements.

How are Celebrities Valued?

In the US, the brand value of a celebrity is indicated by some popular indices

like Q score (a function of favourite and familiarity) and Davie-Brown Index

(DBI) (a function of appeal, influence and trust.).

In addition, a number of renowned publishing houses like TIME, Forbes and

Businessweek also come up with their Power & Influence lists every year. In

India, several publications like Filmfare and India Today release similar lists

valuing celebrities on expertise, likability and trustworthiness factors. After

valuation, most of the endorsement deals are carried out through celebrity

agents and expert ad agencies.

Top Celebrities Expertise Endorsement Fee Aamir Khan Actor Rs 3♦5 crore

Shah Rukh Khan Actor Rs 1♦5 crore

Amitabh Bachchan Actor Rs 1-1♦2 crore

Kareena Kapoor Actress Rs 2♦5-3 crore

Priyanka Chopra Actress Rs 2-2♦5 croreDeepika Padukone Actress Rs 1♦5-2 crore



Endorsement Risks

Celebrities attract the maximum glare of today’s 24x7 media. Even a minor

aberration on their part draws censure from all corners of the society. The

fallout for the brand she endorses may be devastating in some cases if theperson over a period of time has become a synonym for the brand. There is

another risk for the brand getting permanently associated with the personality

of the celebrity, popularly known as the ‘celebrity trap’ .

In the case of sports celebrities, betting entirely on the performance of the

endorser may have a more severe impact on the brand popularity than in the

case of artists and actors endorsing the brand. Also, as a rule of thumb,viewing endorsements as a mere substitute for good products would only

tantamount to a strategic blunder.

In Celebrity’s Shoes

From a celebrity’s point of view, the more offers for endorsement she gets, the

more she becomes a household name. The subsequent offers only promise a

better deal for her. But with every contract signed, she is restricted in her

choice and the exercise of her free will is curtailed to some extent, at least in

public appearances .

It would also be interesting to study the impact on celebrities switching their

endorsements for rival brands (most of them doing so in the wake of their

being dumped by the previous brand owners). They are sometimes signalled

in the media as no-more-good-enough and when they switch loyalty they are

berated for chasing only money.

Top Celebrities Expertise Endorsement Fee

M S Dhoni Cricketer Rs 8-10 crore

Sachin Tendulkar Cricketer Rs 3-5 crore

Vijendra Kumar Boxer Rs 1 crore

Saina Nehwal Shuttler Rs 80 lakhAbhinav Bindra Shooter Rs 80 lakh

Sushil Kumar Wrestler Rs 40 lakh



Its immediate consequence is a loss of face, which may hit the lesser mortals

more critically than the very established ones.

Celebrity Proliferation The onslaught of mass media is churning out celebrities every day from a

plethora of domains. Leveraging web 2.0 platforms , they have been able to

garner, engage and entertain their bevy of fans and followers quite effectively.

Many of them seem to be mere a flash in the pan, but their impact in

influencing consumers is nevertheless felt. So, the relevance of celebrity

endorsement is not the heart of the debate today, the crux is, who should we

call a celebrity?

03 cleb endorse

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