Final Hard Copy

BRAND BUILDING PROJECT
CELEBRITY ENDORSEMENTS

BY

Akash Gupta - 08
Aniveshika Prakash - 25
Dhruv Shah - 29
Noopur Modi - 14
Tejas Narayan - 19
Vidya Bhandari - 03

Under the guidance of
Prof. Sameer Virani

A PAPER SUBMITTED IN PARTIAL FULFILMENT OF REQUIRMENT OF
BRAND BUILDING, SEMESTER V, TYBMM.

August 2008

S.I.E.S. COLLEGE OF ARTS, SCIENCE AND COMMERCE,
SION [WEST], MUMBAI 400022.

Acknowledgements

We thank Ms. Esha Deol and Mr. Hrithik Roshan for giving us time out of their busy
schedules. Their cooperation and time is highly appreciated.

Special thanks to our Professor Mr. Sameer Virani for giving us this project that helped us in
getting practical knowledge on Celebrity Brand Endorsements.

We also thank Saatchi & Saatchi and TBWA for sharing their knowledge and experiences
with us vis-a-vis brand endorsements.

Finally, we thank our parents for providing us with constant support and motivation to keep
up with pressing BMM deadlines.

PROJECT OVERVIEW

If the world were full of all wise men and all wise women; we would have never heard of a
term called "advertisement". And then good products would have found the right customers
and grown to prosperity. Firms would have worked out a mathematical formula to sell and
succeed. But the buying process isn't rational; and so is this world.

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. In this
jet age, people tend to ignore all commercials and advertisements while flipping through the
magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom
goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall
brand is of great significance. In this process, the companies hire celebrities from a particular
field to feature in its advertisement campaigns. The promotional features and images of the
product are matched with the celebrity image, which tends to persuade a consumer to fix up
his choice from a plethora of brands. Although this sounds pretty simple, but the design of
such campaigns and the subsequent success in achieving the desired result calls for an in-
depth understanding of the product, the brand objective, choice of a celebrity, associating the
celebrity with the brand, and a framework for measuring the effectiveness.

Today, the business firms are trying out different ways in advertisement to increase their
sales. 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
project is to analyze the role of Celebrity Endorsement in the process of brand-building by
taking appropriate examples from the advertising landscape and from the celebrities, brand
managers and the creative agencies themselves.

We interviewed Hrithik Roshan and Esha Deol to gauge the celeb understanding of the
brand endorsement’s industry. We also interviewed brand managers at L’Oréal to be au fait
with the necessity of celebrity brand endorsements. And to triangulate the rest of the brand
endorsement specifics, we also interviewed the creative agencies of Garnier and Sony
Ericsson. The transcripts of the interviews are attached herewith.

Celebrity Endorsements

It is a known fact that the best endorsements achieve an eclectic balance between the product
(brand) and the celebrity. Giving a brand a 'face' is more than just a marketing strategy to
increase sales or gain market share, it is a decision that can change the future of the brand
forever.

Choice of the celebrity, hence, is of utmost importance and is usually done based on many
different parameters - appeal, looks, popularity or even just a fantasy figure to endorse a
brand.

In today's highly competitive markets, big brands are at logger-heads when it comes to
products, each having a similar product to that of a rival. Where does one brand gain that
quintessential advantage - advertising, service, promise of trust, or even the all important
price factors? Advertising seems to be the best platform where brands prefer to compete on -
right from hiring the best advertising agencies to getting the biggest celebrities. What would
be the formula to success then? Well, a good creative agency, a large enough promotional
budget and a huge star to endorse the brand would definitely ensure in the minds of a brand
management team a feeling of security, success and a triumph over the competitors brand.

The general belief among advertisers is that brand communication messages delivered by
celebrities and famous personalities generate a higher appeal, attention and recall than those
executed by non-celebrities. The quick message-reach and impact are all too essential in
today's highly competitive environment.

India is a country where people are star-struck by film stars, cricketers, politicians, and even
criminals. Why? Populations of 1 billion and ticking, everyday people need something or
someone to look up to. A sense of security, admiration, comfort, familiarity, and above all,
someone they aspire to be at some hidden level in their lives. And clever marketers leverage
this very celebrity appeal and are successfully carrying out their jobs by giving the bottom
lines of all the brands what they want - profit, market share and even recall. But how much
star power is too much? "Does Amitabh really use Tide," asked a 6 year old to her mother.
Her mother laughs and says, "No way, just a gimmick." What does that do to the brand? Read

on to understand the advantages and risks that are associated with celebrity brand
endorsements.

Celebrity endorsement cannot guarantee fool-proof success. The celebrity endorsement
strategy must be integrated with target market characteristics, and the other elements of the
marketing mix such as product design, branding, packaging, and pricing. The message
execution that will be mouthed by the celebrity must likewise be made clear and single-
minded. One can do this cleverly by aligning the spirit of the brand to the product, or by
using a celebrity because it ensures that people will notice them, and hopefully remember
what the brand is saying.

A well-chosen celebrity endorsement can catapult even the most unlikely product to stardom.

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.

The Need for Celebrity Endorsement

The charisma of the celebrities almost always entices people and their words are worshipped
by a lot of people. Their influence also goes on the political front, where they are invited for
political endorsement. The business firms, thus, resort to celebrity endorsement to perk up
brand recall and product sales. This has now become a trend and is being perceived as a
strategic means of brand building exercise.

Experts suggests that consumers will scrutinize claims more in important situations (say, life
saving drugs) than in unimportant ones. So, for almost similar products like Coke and Pepsi,
it makes sense to use endorsement. Also, Friedman & Friedman have shown that a celebrity
relative to a non-celebrity spokesperson would be more effective for products high in
psychological or social risk, involving such elements as good taste, self-image, and opinion
of others. For example, when actor Shah Rukh Khan endorses Santro-Zip drive; the
consumers are made to think that he is giving his opinion to go for this car.

Two reasons why advertisers need celebrity endorsement are to increase the credibility &
attractiveness of their advertisement. This is solely to affect consumers' attitude towards their
brand. To justify this hypothesis, we can take the example of former Miss Universe Sushmita
Sen who helped the Epson brand of printers achieve instant recognition; even with the
established giants like Hewlett-Packard and Wipro in the running. Similarly, actress Rani
Mukherjee has turned the tables for Bata's ladies footwear brand called Sundrop as sales
increased by a whopping 500%.

Important Celebrity Attributes

While selecting a celebrity as endorser, the company has to decide the promotional objective
of the brand and how far the celebrity image matches with it. The selection is in fact a
collaboration, from which both the company and the celebrity gains.

The most important attribute for a celebrity endorser is the trustworthiness. The target
audience must trust that a celebrity carries a particular image and it must match with the
product.

The second attribute in order of importance is likeability. The celebrity also must be
accepted as a popular icon by a large cross section of the audience. Companies use celebrity
endorser because they are considered to have stopping power, i.e., a celebrity can be a very
useful tool to draw attention to advertising messages in a cluttered media environment. The
overall popular image coupled with exact product-image match enhances the consumer
attention resulting in greater brand recall.

Similarity between the target audience and the celebrity is the third important attribute. A
person well-known in a society can have greater impact than a celebrity of a different world.
If the endorser and receiver have similar needs, goals, interests and lifestyles, the position
advocated by the brand communication is better understood and received.

Certain other parameters that must be carefully considered before engaging a celebrity are:

• Celebrity’s fit with the brand image.
• Celebrity - Target audience match
• Costs of acquiring the celebrity.
• Celebrity - Product match.
• Celebrity controversy risk.
• Celebrity popularity.
• Celebrity availability.

• Celebrity physical attractiveness.
• Celebrity credibility.
• Celebrity prior endorsements.
• Whether celebrity is a brand user.

Compatibility of the celebrity’s persona with the
overall brand image

A celebrity is used to impart credibility and aspirational values to a brand, but the celebrity
needs to 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. On the other
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.

Advantages of a celebrity endorsing a Brand

Brands have been leveraging celebrity appeal for a long time. Across categories, whether in
products or services, more and more brands are banking on the mass appeal of celebrities. As
soon as a new face ascends the popularity charts, advertisers queue up to have it splashed all
over. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a
matter of a few months. The accruement of celebrity endorsements can be justified by the
following advantages that are bestowed on the overall brand:

1. 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.

2. Ensured Attention: Celebrities ensure attention of the target group by breaking the
clutter of advertisements and making the ad and the brand more noticeable.
3. 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 World’s leading pop groups, the Spice Girls, who have not
only appeared in advertisements for Pepsi, but also in product launching and PR
events. Indeed, celebrity-company marriages are covered by most media from
television to newspapers (e.g. The Spice Girls and Pepsi)
4. 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.
5. Associative Benefit: A celebrity’s preference for a brand gives out a persuasive
message - because the celebrity is benefiting from the brand, the consumer will also
benefit.
6. Mitigating a tarnished image: Cadbury India wanted to restore the consumer's
confidence in its chocolate brands following the high-pitch worm’s 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 the Coke
fight back 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.
7. 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.
8. Demographic Connect: Different stars appeal differently to various demographic
segments (age, gender, class, geography etc.).
9. Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet
to generate interest among the masses.

10. 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.
11. Celebrity endorsement can sometimes compensate for lack of innovative ideas.

Brand Image & Celebrity

Research has shown that there are three aspects that influence a customer's attitude and,
hence, the long term impact on the brand - Attractiveness, Trustworthiness and Expertise.
The matrix below shows us the images and the celebrities:

Aspect of Brand Image Celebrity Product
Elegance Renuka Shahane Whisper
Beauty Madhuri Dixit Emami
Attractiveness Classy Saif & Tiger Pataudi Asian Paints-Royale
Fardeen Khan Provogue
Stylish
Amitabh Bachhan Reid & Taylor
Honest Tarun Tejpal Tehelka
Trustworthiness
Reliable Sachin Tendulkar TVS Victor
Knowledge Sachin & Sehwag Reebok
Expertise
Qualified Naina Balsavar Shampoo

Hence, we see, depending on the product and aspect of brand, the choice of the celebrity is
important so that the celebrity can reflect that and not go against the brand.

Celebrity Selection

There are various scientific ways in which the right celebrity is selected for the product
endorsement, which are discussed here after

Stereotyping

Stereotypes are defined as perceptions and depictions of individuals based on simplistic,
biased image of the group to which they belong, rather than on their own individual
characteristics. For example: it’s better to select celebrities who say are teens for chocolate
advertisements and females for detergent ads, etc.

The TEARS Model

The attributes highlighted by the acronym "TEARS" are gauged for celebrity selection. These
are: -

• Trustworthiness: For example - Legendary actor Amitabh Bachchan who is an icon
of trust; promoting ICICI Bank.
• Expertise: For example - Golfer Tiger Woods for a sports brand.
• Physical Attractiveness: For example - Tennis player Anna Kournikova who earns
10 Million dollars per year in just endorsement.
• Respect: For example - Former Miss World Aishwarya Rai and the Eye donation
campaign.
• Similarity: For example - a child artist promoting a chocolate brand.

A celebrity scoring high on all the above attributes can turn out to be a good endorser for the
brand under question.

The No TEARS Model

The "No TEARS" approach is a tool for managers and their advertisers how to go about
selecting celebrities so as to avoid the pitfalls from making an unwise decision. It gauges the
following information: -

1. Celebrity & audience match up,

2. Celebrity & brand match up,

3. Celebrity credibility,

4. Celebrity attractiveness,

5. Cost consideration,

6. A working ease and difficulty factor,

7. An endorsement saturation factor,

8. A likelihood-of-getting-into-trouble factor

Selecting the right celebrity does more than increasing sales; it can create linkages with the
celebrities' appeal, thereby adding new dimension to the brand image. Research conducted by
Katherine Eckel has revealed that celebrities can get people to make a better choice but
cannot influence 'people to make a foolish choice'.

The success of celebrity endorsement in India can be sought from a market research
conducted earlier which found that 8 out of 10 TV commercials scored the highest recall
were those with celebrity appearances. A few examples: Sachin Tendulkar - Adidas, Sourav
Ganguly - Britannia, Leander Paes & Mahesh Bhupati - J. Hampstead, Shah Rukh Khan -
Pepsi, Sushmita Sen - Epson, and Aishwarya Rai - Coke.

Celebrity Endorsement –
Do they always work the magic?

No! Despite the potential benefits derived from celebrity endorsements, they increase a
marketer's risk manifolds and should be treated with full attention and aptitude. A brand
should be cautious when employing celebrities to ensure promise believability and delivery
of the intended effect. The most important thing to remember is that putting a celebrity in an
ad is not an idea in itself. Unfortunately, this is how most celebrities are being used in Indian
advertising, where they just become a prop. Ideally, there should be an idea that makes the
celebrity relevant to the product and the consumer. A celebrity's presence in the ad should be
contextual.

There are cases where brands are not able to take-off even after the backing of celebrities.
And this leads to speculations in the Ad World on the soundness of celebrity endorsement as
an effective communication strategy.

The Reasons

According to leading management thinker, Dr. Seamus Phan, "Many celebrity endorsements
fail because they identify a celebrity they like in an emotive and un-researched manner and
then try to create advertising to force-fit the celebrity into the creative concept." Therefore,
the advertisers must associate the celebrity to the advertisement and not vice versa. Thinking
on the similar lines, the advertisers shouldn't identify the brand to associate with the celebrity
but do vice versa. The success of celebrity endorsement also depends upon the capacity,
knowledge, experience, and qualification to talk about the product. Failure may be attributed
to improper positioning (Example: Amitabh Bachchan, Abhishek Bachchan & Maruti Versa),
negative perception after use of product / service (inferior products), misapprehension of the
meaning of the endorsement, etc.

Another reason for the celebrity endorsement to turn against the brand is due to
"Overshadowing". This happens when the celebrity is larger than the brand being endorsed.

And unfortunately, though the celebrity generates higher levels of attention among viewers,
the impression is not always strongly linked to the advertised brand.

Finally, brand may also fail to get noticed given a recent negative publicity of the celebrity
endorser. Example: Michael Jordan lost his endorsement deals when he announced in 1991
that he's HIV-positive. It wasn't until July 2003 that he landed his first endorsement deal
since the announcement.

The Solutions

As previously mentioned, celebrity management is very crucial to avoid the brand-celebrity
disconnect, and subsequently, brand failures. Proper market research should be carried out
and right positioning strategies should be in place. If the consumers have questions in their
minds regarding the quality or performance of the product then even God cannot save the
brand. There shouldn't be any ambiguity or confusions when showing the celebrity in the
advertisement. The obvious solution to the problem of overshadowing is to make sure that
both the advertisement and the celebrity are focused on the brand or product. To avoid any
bad publicity arising out of celebrity defames, companies may resort to multiple celebrity
endorsement. For Example: Pepsi while capitalizing on the popularity of cricket and films in
India used several cricketers and film stars in their ads. So when Azharuddin and Jadeja got
embroiled in the match-fixing controversy, Pepsi severed its association only with these stars,
but its relationship with cricket continued.

Disadvantages of a celebrity endorsing a brand

1. 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.
2. 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 French - Cable Association and Leonard Rossiter - Cinzano.
Both of these campaigns were aborted due to celebrities getting in the way of
effective communication. Another example could be the Castrol commercial featuring
Rahul Dravid.
3. 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
4. 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.
5. Celebrities endorsing one brand and using another (competitor): Sainsbury’s
encountered a problem 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.
6. 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’
7. Negative publicity: If the celebrity is strongly associated with the brand then the
occurrence of the negative publicity can spill over the brand. This can harm the
trustworthiness and credibility in the mind of the consumers. E.g., Salman Khan lost
his endorsement deal with Thumbs-Up after his infamous incidents like buck-killing
and rash-driving.
8. 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.
9. Overuse: Sometimes the company can use many different celebrities to appeal to
different market segment. But multiplicity of endorser might blur the image of the
brand and reduce the effectiveness of the means of persuasion.
10. Extinction: The favourable 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.
11. 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 work effectively there are some fundamental
ground rules: -

• The brand promise and the brand personality should be clearly articulated.
• The communication objectives for the campaign should be frozen.
• Focus must be on the synergy between the brand and the celebrity image

• Establish explicitly what the celebrity is going to communicate

Once these criteria are met, endorsements can work as a force multiplier. A deeper insight in
the impact of celebrity endorsement on consumers' minds can be explained by the meaning
transfer model, explained in the next section.

Celebrity Endorsement: The Issues Involved

There are several factors to consider before resorting to celebrity endorsement. There is no
single formula to win in the world of marketing. A company must analyze the prospect of
endorsement from 360 degrees, prior to product promotion.

Price vs. Profit

The most important issue is that of return on investment (ROI). Companies need to perform a
cost-benefit analysis prior to endorsement. The process of gauging the effectiveness of
endorsement on the overall brand is but difficult. The companies expect to bring, in the long
run, future sales, revenues and profit from the present investments on celebrity endorsement.
Celebrity endorsement is an expensive means of brand promotion and the price burden
almost always shifts on to the consumers; if not, then it narrows the companies' profit.

Multiple Brand Endorsement vs. Multiple Celebrity Endorsement

In the advertising landscape, we find either a celebrity endorsing multiple brands or multiple
celebrities being used to endorse a single brand. Sachin Tendulkar, for example, in 2002
endorsed 12 brands (including Pepsi, Boost, Colgate Total, Gillette, Britannia Tiger, Fiat
Palio, TVS Victor, Fiat Sienna, MRF, Adidas, Visa Cards and Home Trade). It is said that
endorsement of as many as four products negatively influences the celebrity spokesperson's
credibility and likeability.

Also, the use of multiple celebrities to endorse a brand may hinder the meaning transfer
process, and thus, lead to confusion among the consumers.

Similarity between the target audience and the celebrity is the third important attribute. A
person well-known in a society can have greater impact than a celebrity of a different world.
If the endorser and receiver have similar needs, goals, interests and lifestyles, the position
advocated by the brand communication is better understood and received. Similarity is also
used to create a situation where the consumer feels empathy for the person shown in the
commercial. The bond of similarity between the endorser and the receiver increases the level
of persuasiveness.

The companies have to first clarify their business objectives, brand values and then decide
who the celebrities are who can carry them forward. Otherwise, there can be unnecessary
investments without proper return. So the celebrity endorsement cost has to be weighed up
against the return on marketing investment.

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 values that display themselves in regrettable behavior could
transfer themselves to the brand. 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.

A Few Facts

1. Approximately 60-70% of all television commercials feature famous people.

2. Aishwarya Rai had once endorsed 'Fuji-Film' camera rolls. The company made an
agreement with her to endorse their camera rolls. But, Aishwarya's magic did not
work there and they had to terminate the contract.

3. Amitabh Bachchan (AB) was seen endorsing Maruti's Versa Car. The AB factor
worked wonders as far as generating curiosity was concerned but the actual product
couldn't meet the expectations of people, and hence, the endorsement strategy didn't
work. He has been used very effectively by Parker Pens, ICICI Bank and Cadbury's to
name a few.

4. Bata’s sales doubled soon after they adopted Rani Mukherjee as their brand
ambassador.

5. Magic Johnson lost his endorsement deals when he announced in 1991 that he's HIV-
positive. It wasn't until July 2003 that he landed his first endorsement deal since the
announcement.

6. Ticket sales at Wimbledon are known to have shot up significantly for all matches
featuring the latest 'sex-symbol' on the circuit - Anna Kournikova. An average player

who is yet to win even a single tennis tournament, Anna is known to have earned far
more from endorsements than her tennis career could ever have given her.

Conclusion

Celebrity endorsement can be a goldmine or a minefield for a company's brand building
process. There have been extensive studies relating to the process of celebrity endorsement
and brand-building. These studies indicate that celebrity endorsement has worked well in
some consumer segments while failing in others. Few celebrities have been more successful
than those with almost parallel fame. So the role of celebrity endorsement in the advertising
space is equivocal and cannot be seen as an assured strategic tool to win profits, market share,
revenues, etc.

Consumers can identify the clear difference between a good script and a good brand idea. For
example, while Pepsi's Sachin and Bachchan (kite flying) ad was seen as one with a good
script, Coca-Cola's Thanda Matlab... was seen as an insightful and strong brand idea. For all
the flak it drew in its vainglorious attempts to run down competition, Thumbs-Up was seen as
the only example of seamless linkage between brand positioning and brand celebrity.

"Brand" is the most valuable asset of any company; building its image is, thus, of paramount
importance. Any thoughtless adventure can be like the Sword of Damocles upon the
marketers head. Celebrities do not make brands but ideas do. If the former were true then
brands would have vanished when the hype and hoopla around the celebrities faded.
Celebrity endorsement is also one of the ideas. But, it’s easy to come up with new ideas; the
hard part is letting go of what worked for you two years ago, but will soon be out-of-date.
Therefore, it is imperative to invest in good ideas; which will bring good returns. Thus, the

need of the hour is to focus less on Return-on-Investment’s, and think more in terms of
Return-on-Idea’s.

Using a celebrity in advertising is no panacea and the success of this process depends on
several factors as discussed above. The careful selection of celebrity, matching the target
segment and brand values, should be inherently stressed upon. The advertisers could use
factors like awareness and likeability while evaluating a celebrity. Another important factor is
the flexibility with which the companies can go in for hedging the risks associated in hiring a
celebrity. They choose personalities from various fields or even appealing to various
consumer perceptions, so that they can minimize the damage in cases of negative publicity
due to any celebrity mistake. The cola brands spread their endorsements across a wide
'variety' of celebrities such that even if one falls, the others are still holding the fort.

In terms of the future, celebrity endorsements are here to stay. Their ability to cut across the
classes, caste barriers and apprehensions are simply too important to be sidelined. They have
been time-tested and delivered results repeatedly, given good hands. One could continue to
wonder if these celebrity-hawkers are worth the money and the tantrums, but in a world of
brand clutter and product muddle, celebrities seem to hit the nail on the head, more often than
not. And to be honest, let's look around ourselves, aren't we all in a little appreciation of those
stars gazing back at us!

CELEBRITY INTERVIEW

OUR CELEBRITY: AISHWARYA RAI

Aishwarya Rai now known as Aishwarya Rai Bachchan needs no introduction. After
becoming Miss World in 1994 she entered Bollywood and she has never looked back since
then. The start wasn’t that good for her but after her performance in Hum Dil De chuke
Sanam, she is known as one of the best actresses in Bollywood. Not only India is she
appreciated for her beauty but internationally too she is famous for her ravishing looks and
her beautiful eyes.

The Brands she endorses: L’Oréal, Lux, Coke etc.

The brand Manager we interviewed is L’Oréal Paris India.

The L'Oréal Group is the world's largest cosmetics and beauty company and is
headquartered in the Paris suburb of Clichy, France. L'Oréal has developed activities in the
field of cosmetics, concentrating on hair colour, skin care, sun protection, make-up, perfumes
and hair care. L'Oréal is active in the dermatological and pharmaceutical fields. L'Oréal is
also the top nanotechnology patent-holder in the United States.

History

In 1907, Eugène Schueller, a young French chemist, developed an innovative hair-colour
formula. He called his improved hair dye Auréole. With that, the history of L’Oréal began.
Eugène Schueller formulated and manufactured his own products, which he then sold to
Parisian hairdressers.

In 1909, Schueller registered his company, the Société Française de Teintures Inoffensives
pour Cheveux ("Safe Hair Dye Company of France"), the original L’Oréal. During the early
twentieth century, Schueller provided financial support and held meetings for La Cagoule at
L’Oréal headquarters. La Cagoule was a violent French fascist-leaning and anti-communist
group. L'Oréal hired several members of the group as executives after World War II.

In 1920, the small company employed three chemists. By 1950, the research teams were 100
strong; that number reached 1,000 by 1984 and is nearly 2,000 today.

L’Oréal got its start in the hair-colour business, but the company soon branched out into other
cleansing and beauty products. L’Oréal now markets over 500 brands and many thousands of
individual products in all sectors of the beauty business: hair colour, permanents, styling aids,

body and skin care, cleansers and fragrances. They are found in all distribution channels,
from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets,
pharmacies and direct mail.

L’Oréal's famous advertising slogan is "Because I’m worth it". It has recently been replaced
by "Because you're worth it".

Brands

Brands are categorized by their targeted markets, which are mass market, professional,
luxury, and active.

L'OREAL GROUP BRANDS
(as of 2006)
Professional Consumer Active
Luxury Products
Products Products Cosmetics
Division
Division Division Division
•L'Oréal •L'Oréal Paris • Biotherm • Dermablend
Professionnel •Garnier • The Body Shop • La Roche-Posay
•L'Oréal •Maybelline • Cacharel • SkinCeuticals
Technique NewYork • Diesel Perfumes • Vichy
•Matrix •SoftSheen- • Giorgio Armani Parfums and Laboratoires
•Mizani Carson Cosmetics • Innéov
• Redken • Guy Laroche • Ombrelle
• Helena Rubinstein
• Kérastase
• Kiehl's
• Lancôme
• Paloma Picasso
• Ralph Lauren (fragrances)
• Shu Uemura
• Victor et Rolf parfums
• Vichy

Spokes-models

L'Oréal has hired hundreds of actors, actresses, models, singers, and sport figures for its TV
commercials and print ads:

• Jessica Alba

• Jennifer Aniston

• Pierce Brosnan

• Priyanka Chopra

• Jennifer Lopez

• Aishwarya Rai

L'Oréal got in to the value of the South Asian beauty market and signed up Bollywood
star Aishwarya Rai to join its "dream team" of some of the world's most beautiful women.
The flagship brand of the world largest cosmetics company, L'Oréal Paris is delighted to
have the Indian movie superstar as one of its international ambassador. Aishwarya Rai is
a part of the L'Oréal Paris dream team that includes some of the world's most beautiful
and inspirational women such as Laetitia Casta, Andie MacDowell, Milla Jovovich,
Noemie Lenoir, Virginie Ledoyen, Agbani Darego, Gong Li and Catherine Deneuve.

L'Oréal enthuses that "Aishwarya Rai truly personifies the L'Oréal Paris woman
displaying beauty, sophistication, charm, modernity, confidence and a reluctance to settle
for anything less than the best. She also adorns the values of today's woman: intelligent,
self-assured and decisive. Be it her mesmerising blue-green eyes, her inherent talent and
grace, or her obvious intellect, Aishwarya is undoubtedly one of the most admired
actresses on Indian cinema."

On becoming an Ambassador for L'Oréal Paris, Aishwarya commented, "I am absolutely
delighted and very excited to be associated with L'Oréal Paris. The brand's tag line
"because you're worth it" has always been very close to my heart".

L'Oréal thinks that Aishwarya is a perfect symbol of L'Oréal Paris's understanding of the
diversity of beauty. She will represent L'Oréal Paris Demo-Expertise, hair colour and
cosmetics.

Interview with Mona Lisa –
Marketing Manager for L'Oreal

1. What is your general view on brand endorsements by celebrities?

I think it's a fantastic way to reach out and connect with your audience. Your brand gets
immediate recall. The celeb also adds credibility to the brand. It does of course depend on the
popularity of the celeb, but if you do your research well they can be used very well. Using
celebrities makes the brand more real, especially when they say something like, "I use
L'Oreal" At L'Oreal, we're all about 'Diversity of Beauty'. We wanted to establish a connect
with our audience telling them the main point," we have a solution for your problems"
through the brand ambassador.

2. Why did you choose Aishwarya Rai?

L'Oreal is such a huge brand, having many sub-brands under it. One of them is L'Oreal Paris.
L'Oreal Paris, which is what Aishwarya endorses, needs a woman of substance, somebody
who can stand tall on their own. That person doesn't necessarily have to be young. For
example we have Jane Fonda and Pierce Brosnan as our brand ambassador in the U.S. and
they're in their sixties! Aishwarya does an excellent job of adding her style to the brand. She
was a total brand fit and a culture fit. Aishwarya is glamourous and will continue to be, we
didn't just because she is beautiful. People remember her as a strong person.

3. Were there any other choices before you chose Ash?

I'd prefer not to talk about that but I think Diana Hayden was shortlisted.

4. How effective has Ash been for L'Oreal?

Aishwarya is an achiever in her own right. She's super glamourous and beyond pretty. She's
very complex and this just strengthens what L'Oreal stands for. She's been very successful for
us. And unlike one of L'Oreal's other brands like Garnier which is very much a "girl next
door" product, L'Oreal required more star value.

5. What would you say is the Indian L'Oreal woman?

Well, she is a woman of substance, she is determined and a decision maker. She is also a
demanding woman who will work hard to reach the top.

Celebrity Interview

We interviewed Esha Deol and Hrithik Roshan who endorse Garnier and Sony Ericsson
respectively. We also interviewed the creative agencies of Garnier India and Sony Ericsson.

Esha Deol, daughter of hema Malini and Dharmendra, did not have a very good start in
Bollywood. But she made her own way and was appreciated in her movie Dhoom and since
then she has become the sexy Esha deol and is continuing to do so. She has been appreciated
for her performance in Ankahee and was nominated for her role. As Esha is a young girl and
has a really pleasant look she has endorsed only youth oriented products which include
Garnier, Provogue and she also endorses Kent with her mother Hema Malini.

Garnier:

Garnier is a division of L'Oréal that produces hair care products, including the Fructis line,
and most recently, skin care products under the name, Nutritioniste, that are sold around the
world. One of their key ingredients is a fruit concentrate used in all their products. It is a
combination of fruit acids, vitamin B3 and B6, fructose and glucose.

Products:

Garnier sells an array of products ranging from styling products to shampoos and
conditioners. Some of the products currently sold by Garnier are:

• Sleek and Shine shampoo and cream conditioner

• Body and Volume shampoo and cream conditioner

• Normal shampoo and conditioner and 2-1 Normal shampoo/conditioner

• Dry or Damaged shampoo and cream conditioner

• Sleek and Shine anti-frizz serum

• Sleek and Shine deep conditioner

• Anti-Dandruff shampoo and 2-1 Anti-Dandruff shampoo and conditioner

• Fortifying deep conditioner

Garnier also produces beauty products. The beauty products are branded under the name
Garnier Skin Naturals due to their natural components. Some of these include:

• Garnier Pure Range (For Oily/Blemished Skin)

• Garnier Lift Range (Firming & Anti-wrinkle)

• Garnier Light Range (Whitening/Brightening)

• Garnier Fresh Range (For Normal/Combination Skin)

• Garnier Soft Range (For Dry/Sensitive Skin)

Taglines across the world

• Australia, UK: Take care

• Portugal, Italy, Russia, Serbia: Take care of yourself

• USA, India, Poland: For hair that shines with all its strength (Fructis)

• USA: Great skin from the inside out (Nutritioniste)

• Spain: High natural technology

Why Esha Deol?

According to the executives at Garnier India, Esha is a perfect fit for the brand as this brand
is aimed at the youth and Esha Deol is an appropriate match for the same. Garnier has always
been introduced as new, different and better product for their consumers.

Esha is a style icon as she endorses clothing brand Provogue and has been flaunting her sexy
self in most of her films which include Cash and her upcoming film Darling.

Esha Deol is the brand ambassador for a fairness cream by Garnier. Before Esha many pretty
faces like Kareena Kapoor, Simone Singh and Isha Koppikar have endorsed Garnier brand.

Interview with Esha Deol –
Brand Ambassador for Garnier

1. What is your general view on brand endorsements?

I think it's really nice that you can sell a product that you believe in and also increase your
visibility. But it's personally very important to choose anything that comes my way. I am very
choosy about brands. I need to believe in the brand, I need to feel good about endorsing it. So
I think you have to be very clear about your morals and the fact that I am endorsing Garnier,
it's a brilliant skin product. Even with Provogue, I love their clothes, very young and
energetic and that suits my image so I am for it.

2. What conditions would a brand require for you to endorse it?

I guess if something is going to be harmful to the public I wouldn't do it. Like I was once
offered a deal by an alcohol company and I said no. I personally don't say that drinking is bad
or something. And I would never endorse a tambaku like Pan Parag or something. I don't
want my image to be portrayed as a person who endorses that. It doesn't matter how much
money they pay me, I need to be comfortable about endorsing that brand.

3. Do you always use the products you endorse?

If it's nice, then yes I do and that's how I choose my brands. That way I think am lucky to
have Garnier, I love their products. I actually use the Non-Sticky Matte Cream. It's real useful
in the monsoon.

4. Outside the campaign requirements say in a social or personal situation, do you
recommend the products you use?

Oh yes I do. If I don't believe in the product I would never endorse it. In the case of Garnier,
I do tell my friends to use it.

5. Ever since you started working with Garnier how well has your campaign done
for you?

I got a lot of appreciation for the ad. And they really took a lot of care with me, especially
while shooting; they were very professional and wrapped the shoot up in 4 days. They've
even told me that sales have increased with my ad.

6. Do you think Garnier required a celebrity?

Garnier, all over the world makes use of celebrities. I think that's how they make the public
aware. It definitely adds to the product. So I think using me, just fits in with their idea.

7. When Garnier came to you, what did they say they were looking for in a brand
ambassador?

Well, first of all, they wanted a celebrity with good skin. And they wanted to hit the youth
even with a skin product that was saying remove oily skin. And they liked my complexion, I
mean am neither very fair nor dark, am slightly whitish. A lot of Indians have my kind of
complexion.

8. In any of the products you've endorsed, have they ever imposed any strict rules
or regulations on you?

Sometimes, when your shooting a scene they kind of prefer if they're product was there
somewhere in the background. Since I am the brand ambassador, they would like it even if it
placed anywhere. But no one's really told me I can't do certain things.

9. From the celebrity's point of view, how does brand endorsing benefit them?

You get good money. Apart from that, there's definitely more visibility for you when ads are
played. You’re selling something in a very nice way and you’re creating awareness about that

particular product. It also adds to your image. If it's a good product, then it does of course
raise your image.

10. Do you think that these days there's a trend among celebrities to just sign
anything for the money?

I don't want to comment on anyone that way. As far as I am concerned am very clear about
what I would endorse and what I wouldn't.

Interview with the Creative Agency of Garnier, India

1. What is your general take on Brand Endorsements?
I personally don't like brand endorsements. It's a shortcut, it's the easy way out. People
use them when there is a lack of a better idea. Agencies use celebrities hoping it will
work, many a times it doesn't. Some people do it just to follow the current trend. And
many times, the brand gets hidden and only the celebrity is remembered. In the olden
days, when I just started working, there were not many celebrities doing too many
products. Back then you could believe what a celeb had to say. Now it's become just too
cluttered.

2. Then why did you choose Esha Deol?
Actually Garnier does not believe in celebrities at all. Garnier is about approachable
beauty. Unlike L'Oreal Paris which is all about glamour. Garnier is about the girl next
door. Esha is not a very famous celebrity that way. She is not a diva, which is why
L'Oreal chose Aishwarya. But Esha was chosen for her excellent personality and for the
fact that people remember her face. Esha is not seen as a goddess who is untouchable,
she is very real. She may not be a bollywood queen but she certainly has her own
success. She is a very fit lady who is into sports and dancing. She has a famous lineage.
Garnier recognized the fact that she was happy being herself.

3.How does Esha Deol fit into Garnier?
She's perfect because she seems so real that the brand actually becomes the hero,

without the celebrity overshadowing the brand. She was used more like a model than a
celebrity.

4. When and how would Garnier shift from Esha?
Garnier is not stuck with one single ambassador. There are many people connected with
Garnier so we can leave any ambassador or they can leave us without Garnier being
affected. In that way Garnier never falls in a trap.

5.Is there any global requirements that Garnier needs to be fulfilled in their brand
ambassador?
Globally, Garnier does not use ambassadors. Except in rare cases. Eg. Sarah jessica
Parker was used for Nutritionist. Even the anti-ageing creams, do not use known faces.
There is no set rule like that but yes, for Matte we were looking for a girl who has good
skin, a good attitude and can act well. Esha met this very well.

6. To whom is the Matte Effect cream targeted at?
It's targeted to the girls between 18-25. It's specifically not a youth oriented product.
The product is directly matched against Fair and Lovely which leaves a sticky feeling.

Celebrity Interview 2

We have also interviewed Hrithik Roshan and the brand we chose is Sony Ericsson.

Sony Ericsson:

Sony Ericsson is a joint venture established in 2001 by the Japanese consumer electronics
company Sony Corporation and the Swedish telecommunications company Ericsson to make
mobile phones. The stated reason for this venture is to combine Sony's consumer electronics
expertise with Ericsson's technological leadership in the communications sector. Both
companies have stopped making their own mobile phones.

The company's global management is based in Hammersmith, London, and it has research &
development teams in Sweden, Japan, China, Germany, the United States, India, Pakistan and
the United Kingdom. Sony Ericsson has, as of July 18, 2008, approximately 9,400 employees
and 2,500 contractors worldwide.

Hrithik Roshan

Hrithik Roshan born on 10th January 1974 is the hottest star in India. He is amongst the
biggest stars in India which includes Amitabh Bachchan, Shah Rukh Khan and Aishwarya
Rai. He has been a Star since his first movie. The audience went mad for him after watching
him in his debut film Kaho Naa Pyar Hai. His other hits include Koi mil gaya, Dhoom 2,
Krrish and Jodha Akbar which faired well on the box office, Currently he has taken a break to
be with his loving wife and his elder son Hrehaan and he new born Hridhaan.

Why Hrithik Roshan?

Hrithik Roshan’s popularity is growing by the day and of course many new endorsements are
coming his way. Hrithik has now become a brand ambassador of Sony Ericsson for India and
the SAARC countries.

Hrithik will be endorsing all the Sony Ericsson products and will be part of the company’s
marketing initiatives.

According Sudhin Mathur, General Manager, Sony Ericsson India, Hrithik will contribute in
creating a brand connect and enhancing its brand recall with the local audiences in India.
Association with Hrtihik offers instant entertainment, instant identification, star power and it
strongly influences popular culture. Mathur adds that Hrithik was the ideal choice for Sony
Ericsson as it connects with audiences at an individual and collective level.

Interview with Hrithik Roshan –
Brand Ambassador for Sony Ericsson

Interviewer: Akash Gupta and Ms. Vidya Bhandary
Interview Duration: 25 minutes
Venue: Roshan Residence, Juhu

1. What conditions would you require in a brand before endorsing it? On what
basis would you endorse a brand?

...Before signing an endorsement contract, I make sure that the brand under question shares
an identical or atleast favourable image to complement mine. It wouldn’t make any sense if I
start endorsing hair dying products tomorrow... Besides, the reputation that the brand
commands is of primary concern, too... A lot of hard work and dedication goes into building
credibility and the last thing one could ask for is undoing all that by associating themselves
with a disliked brand... I also make sure that the brand I’m endorsing doesn’t contradict or
compete with any of my previous campaigns or associations...

2. Do you consider promoting your brand in other social or personal affairs,
apart from the campaign?

(Chuckles) Well, that biscuit in your hand? It’s a ‘Hide & Seek’ (points to the biscuit in
Vidya’s hand) and that phone on the table; it’s a ‘Sony Ericcsion’ (points to the table on
which an Apple iPhone and a Sony Ericcsion handset are kept)... So, when I endorse a
brand, I tend to use it in my off-screen life too. Doing so only adds to our credibility and
value in the industry... Basically, it doesn’t make sense endorsing a brand you yourself can’t
or won’t use in public...

3. Would you consider doing the same personally?

It depends; we have a lot of options to choose from. Nevertheless, I do use the products that
I endorse and I endorse them only if they are worth it and I would use them myself... See, I
like hide & Seek very much and I eat it too (chuckles, picks up a Hide & Seek biscuit from
the tray and eats it).

4. How well did the ‘Hide & Seek’ campaign fared?

The best people to answer this question are the marketing guys at Hide & Seek... The
currently running campaign is one of my favourites... I think it’s doing great. Hide & Seek
told me that their sales have surpassed their expectations and targets in past 1 year.

5. Does your endorsement contract impose any stringent usage guidelines on
you?

Hmmm... Sometimes; for example, Sony Ericcsion requires me to carry a SE handset
around... Magic Moments imposed no such restrictions... Though, I still prefer having Magic
Moments against any other competitor brand when I’m in a social gathering... Contracts say
a lot of things; however, it never comes down to referring to it ever again once it is signed.
There’re more of a formality and less of a legal watchdog these days.

6. What are your general views on brand endorsements? Do you thing they really
necessary?

See, any successful brand is 50 % product features coupled with 50 % brand ambassador. In
today’s cut-throat market competition, when a celebrity stakes his or her credibility with the
brand and shares opinion with the public, only then can a product achieves a top of mind
recall and recognition and desirability... I personally feel that a brand with a high celebrity
appeal would do substantially better than the one without it...

7. Your opinion on the qualities required by a celebrity brand endorser.

... First and foremost, the brand image and the celebrity image should complement each
other. If you expect a TV Soap actress to endorse a multinational brand and elevate it to the
next echelon, you’re mistaken, my friend. Similarly, a globally acclaimed celebrity
endorsing an underwear brand also doesn’t goes down too well... Secondly, the brand
ambassador must a highly credible and liked personality. The more successful celebrity a
brand engages, higher are the chances that it will capture the market... In short, the brand
ambassador must be a dynamic, highly successful, credible and respected personality in the
industry and in the market alike.

8. What product category would you never endorse?

I am very very particular about the brands I endorse. As I mentioned earlier, a lot of efforts
and hard work goes into making of a celebrity and last thing any celebrity would want is
losing his or her credibility and trustworthiness by endorsing a sub-standard product. I will
never endorse any brand that may put any community or individual in the harm’s way. This
apart, I also take care that the brand I’m endorsing suits and compliments my image. It would
be ridiculous Hrithik Roshan endorsing hair dye products (Laughs)... In the end, no wrong
vibes should be passed on to my fans and I make sure it doesn’t happen...

Interview with the Creative Agency of Sony Ericsson -
Saatchi & Saatchi

Interviewer – Akash Gupta
Interviewee – Mr. Sumit Mathur
Designation – Senior Account Director, Saatchi & Saatchi, Delhi
Interview Duration – 15 Minutes

1. What are your general views on brand endorsements by celebrities?

Brand Endorsements by celebrities is very important, particularly in places where the
brand is relatively unknown or if the brand is being re-launched or repositioned. To grab
the attention of your TG, your product needs a face; so your brand ambassador becomes
that face. Otherwise advertisements come and go, nobody’s got time or interest to notice
them. It is only because of the famous faces that people give ads their time and attention.
Hence, celebrity endorsements primarily exist to gain the attention of your target
audience for a few seconds and their recall thereafter.

2. When a brand engages a personality, what are the qualities that a brand looks
for? Example Sony Ericsson. Why do you think Sony Ericsson engages Hrithik
as a brand ambassador?

See, a brand looks at a person who can be communicated having similar values and
imagery and brand identity. If a brand has been projected as youthful and young, then
somebody who has the kind of persona should get well with the brand. Sony ericcson
wanted to project that it was for music, for youthful dancing and pop kinds. So, uss image
mein, jo celebrity aate hain, un mein se choose karna tha. Hrithik Roshan was the
Obvious choice because he is popular, he is an easily recognized face by the people.
Secondly kissi bhi brand ke liye jis area mein unhe launch karna hai uska
appeal,endorser should have an appeal in the area. If some fashion designer say Ritu
Kumar is taken as a face she might be a big person in the design industry but usko koi
pehchanta nahin hai, koi dekhega nahin. She might have a good face but koi collection
value, recall value nahin hogi. Brand ambassador ki appeal honi chahiye ki woh
attention garb kar sake, recall value honi chahiye. That means peple shoulkd recognize
and associate him/her with something.

2. And that something should be your brand?

Haan Something as in a video commercial or a radio commercial aaya, unki voice use ki
gayi hai.toh logon ko recollection ho, ki uski awaaz use ki gayi. Attention grab kiya suna
and they should be able to recall. If hrithik Roshan ka ad flash hota hai, toh people should
know it is an sony ericsson ka ad. Thirdly, ambassador should not be larger than the
brand. If you take Brad Pitt or Hrithik for a small brand, uss mein people will say Hrithik
ka ad and no Brand ka ad. What will happen if people will remember the celebrity, but
they will forget the product eventually, it will result in loss and failure of campaign.
Brand ambassador should not to be larger than the brand.

3. How would have Sony Ericsson faired without Hrithik Roshan?

We have actually gone and telecast an ad without Hrithik Roshan. So when you see it you
will feel the difference so Hrithik has an eye catching factor. When he dances everyone
sees and because of his fan following people will emulate and buy that phone. Now in the
new ad there is no Hrithik Roshan, Stadium mein dance ho raha hai, dekha bhi hoga

tumne ad. Par recall nahin ho raha. This ad was on air from 8th august lekin recollection
nahin hai. The new ad doesn’t have the kind of appeal naa log dekh rahen hai naa recall
kar rahen hain, now there is a new model in the new ad we are hoping there will be
collective visibility.

11. Do brands really gain big from engaging celebrity Brand Ambassador’s?

Yes, many a times, they do, especially if the brand under question is an unknown brand.
For example, Wal-Mart is planning to launch itself in India in the coming year. However,
hardly anyone know what Wal-Mart is all about in India, nevertheless, it’s very big
player on a global scale. As a result, when they enter India, they will have to use
celebrity endorsements to penetrate the market that has just too many similar players in
business. Consequently, people will not be able to remember, recollect and recall Wal-
Mart in such a hostile market. So what’s the solution to this problem? The solution is that
when they enter the Indian market, they will engage the biggest of celebrities to endorse
their products, thereby, ensuring a top-of-line recall among it TG. This will also facilitate
them create a certain set of value around their brand name that they to be associated with.
Correspondingly, their ads, celebrities, scripts, themes, backgrounds, etc will be based on
these values. Today, it can be said that a big brand name warrants a big celebrity
endorsing it. This helps the brand to penetrate the market rapidly which otherwise would
have taken a lot longer through the word of mouth publicity. For example, if Wal-Mart
launches itself in Mumbai, who’ll know it in Delhi if they solely depend on word of
mouth publicity? In such a case, television commercials ensure huge consumer reach and
celebrity endorsements will ensure high consumer recall. This high pan-nation is likely
to convert to high sales and thus, higher profits.

12. Do you think celebrity brand ambassadors reciprocally benefit by endorsing
brands?

Celebrities are celebrities as long as they are on television. The moment they are out of
sight, they are out of mind too. They too require continuous publicity and limelight to
stay afloat... At no cost of their own they can achieve this through brand endorsements.
All they have to do is shoot an ad for 7 days and enjoy the national visibility for a year,
throughout all forms of media. So, in minimalistic efforts, they garner fan-following

throughout the year. This fan-following directly converts to movie ticket sales when their
movies are released.

13. When do you think, would be the right time to move on from Hrithik?

As long as Hrithik is able to garner sales for Sony Ericsson, he’ll be the preferred choice;
however, when he’ll fail to move the audience and pursue them to buy SE handsets, it’ll
be the time to move on. Anyways, in my opinion, that’s not going to happen anytime
soon...

Bibliography

Marketing Management, 12 ed. – Philip Kotler

Principles of Marketing – Philip Kotler

Building Strong Brands – David A. Aaker

Wikipedia

Microsoft Encarta

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