Celebrity Endorsement: Advertising Agency

Managers’ Perspective 

  ABSTRACT
Celebrity endorsement has been established as one of the most popular tools of advertising in recent
time. It has become a trend and perceived as a winning formula for product marketing and brand building.
It is easy to choose a celebrity but it is tough to establish a strong association between the product and
the endorser. While the magnitude of the impact of celebrity endorsement remains under the purview of
gray spectacles, this paper is an effort to analyze the impact of celebrity endorsements on brands.
Objective of this article is to examine the relationship between celebrity endorsements and brands, and
the impact of celebrity endorsement on consumer's buying behavior as well as how consumer makes
brand preferences. This paper proposes a 20 point model which can be used as blue-print criteria and
can be used by brand managers for selecting celebrities and capitalizing the celebrity resource through
360 degree brand communication which, according to this paper, is the foundation of the impact of
celebrity endorsement. Celebrity endorsement is always a two-edged sword and it has a number of
positives - if properly matched it can do wonders for the company, and if not it may produce a bad image
of the company and its brand.

This paper explores advertising agency managers’ attitudes concerning celebrity endorsement strategy.
Although a number of scholars have written about the strategy, their research centres on the
characteristics of effective celebrity endorsers. They have usually employed deductive approaches in
deriving hypotheses from the communication theory (e.g. Source Effect Theory) and empirically tested
with student samples. This study provides another perspective to the celebrity endorsement strategy by
using semi-structured in-depth interviews with twelve advertising agency managers.

Introduction
Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g. athletes, actors)
in the hope that celebrities may boost effectiveness of their marketing and/or corporate communication
attempts for at least a century. One of the early example is Queen Victoria’s endorsement of Cadbury’s
Cocoa (Sherman 1985). Three of humankind’s greatest inventions, (cinema, radio, and television) have
extended the scope of endorsement as an advertising technique. Today, use of celebrities as part of
marketing communications strategy is fairly common practice for major firms in supporting corporate or
brand imagery. Indeed, according to a Marketing (February 1st, 1996) survey, advertising containing
celebrities proved to be a key to gaining national headlines in 1995 in the UK and the cover story for
Admap in April 1998 was devoted to issues involved in developing a celebrity endorsement strategy.

Scholars, mostly US-based, have explored the celebrity endorsement strategy (e.g. Caballero et al. 1989;
Debono and Harnish 1988; DeSarbo and Harshman 1985; Friedman and Friedman 1978; Kahle and
Homer 1985; Kamins 1989; Misra and Beatty 1990; Nataraajan and Chawla 1997; Ohanian 1990; 1991;
Till and Busler 1998). Their contributions usually tested effective celebrity endorser characteristics by
deductive methodologies with student samples (for an extensive literature review see, Erdogan 1999).
Interestingly, so far no studies have explored what advertising agency managers think of celebrity
endorsement as a specific strategy, what are their reasons for suggesting celebrity campaigns, how they
execute celebrity campaigns, or how advertising agencies select celebrity endorsers. Miciak and
Shanklin’s (1994) study could be seen as an exception although they only investigated factors considered
by practitioners in selecting celebrities. This paper aims to provide some answers to first three questions
as the fourth question is another paper in its own right which has been submitted to elsewhere. To
address these issues we took Brownlie et al.’s (1994) suggestion that marketing scholars should
undertake more in-depth studies of what marketers in different contexts actually do and carried out semi-
structured in-depth interviews with advertising agency managers. The next section details the
methodology used.

Methodology
In the absence of prior research, it was impossible to follow ‘someone else’s footsteps’. Thus, semi-
structured in-depth interviews were deemed as appropriate for this research. An interview schedule was
derived from the literature that identified the key issues to be explored and allowed the researchers
flexibility to let interviews develop naturally and without leading or direction from the interviewer.

When selecting the agency sample, Campaign’s (February, 28, 1997) Top 300 Agencies Report was
utilised and the top thirty advertising agencies ranked by annual sales in 1996 were chosen. It was
thought that advertising agencies with large annual billings were more likely to utilise celebrities in
marcom campaigns as celebrities bear high price tags.

After several phone calls to the agencies, as well as personal contacts, ten managers (two CEOs, three
account directors, two creative directors, a casting director, two planning directors) from nine advertising
agencies and a celebrity director from the Celebrity Group were interviewed. Two fax responses were
also received from two agencies. Interviewing directors from diverse agency departments allowed the
researchers to explore every department’s view on a potential celebrity selection.

The sample was believed to be quite representative of the population, but nonetheless it was a
convenience sample which may be defined as ‘a form of non-probabilistic or purposive sample drawn on
a purely opportunistic basis from a readily accessible subgroup of the population (Baker 1990). Table-1
lists the twelve participating companies.

Table-1 Participating Companies

Abbott Mead Vickers BBDO Ltd. Ogilvy and Mather Ltd.

Bartle Bogle Hegarty Ltd. Publicis Ltd.

Butler Lutos Sutton Wilkinson Ltd. Saatchi and Saatchi Advertising Group

DCA Group of Companies The Celebrity Group

Faulds Advertising Ltd. WCRS Ltd.

Grey Communication Group Young and Rubicam Ltd.

Interviews took place at advertising agencies and at the icebreaking stage of every interview, managers
were specifically informed that this research was concerned with any kind of celebrity utilisation (i.e.
actors, endorsements, testimonials, or spokespersons) in marketing communication activities. Interviews
lasting on average over three-quarters of an hour, were tape-recorded and transcribed.

Before presenting findings it is necessary to summarise the key issues which underpinned the interview
schedule. This research specifically explored;  
  managers’ reasons for utilising celebrities in marketing communications
 managers’ opinions on effectiveness of celebrity campaigns in terms of generating awareness,
recall, positive attitudes towards advertising and brands, purchase intentions, and actual sales
 whether managers perceive there is an increasing usage of celebrities in marketing
communications
 factors considered while selecting celebrity endorsers
 commonality of these considered factors’ importance within the UK and among other countries
 types of media used with celebrity campaigns
 manager’s view on utilising celebrities in integrated marketing communication campaigns
 managers’ opinion on international transferability of celebrity campaigns
 managers’ view on utilising multiple celebrities for a particular celebrity campaign

 The research findings are presented in terms of issues grouped into three sections; Practitioners’
Reasons, Opinions and Trends; Selection Criteria and Their Commonality; and, Executional Issues.

Practitioners’ Reasons, Opinions and Trends

This section embodies three parts and explores: advertising agency managers’ reasons for using celebrity
endorsers, opinions regarding effectiveness of celebrity involved campaigns (e.g. awareness, recall,
positive attitudes towards advertising and the brand, actual sales), and whether advertising agency
managers perceive there is an increasing usage of celebrity endorsers.

Reasons for celebrity campaigns

Respondents indicated that the biggest challenge in marcoms nowadays is how to stand out—break
through ever increasing media clutter. As can be seen in Table-2, consistent with the academic literature,
managers considered that celebrity endorsers enable messages to overcome this challenge due to their
fame and high profile.

Table-2 Managers’ reasons for utilising celebrity endorsers

Standing out or shorthand

Awareness or attention getting

Celebrity values define, and refresh the brand image

Celebrity add new dimensions to the brand image

Instant credibility or aspiration

PR coverage

Desperate for ideas

Convincing clients

 An agency CEO stated that every time advertisements appear in television or press, they interrupt a
program or an article. Therefore, they are an intrusion and very few people positively welcome
advertisements though many do not reject them. People see advertisements as a part of their normal life.
But, as an advertiser you have got to stand out from the crowd and celebrities can potentially achieve this.
It was disclosed that the recent campaign for Ford Puma involving Steve McQueen generated instant
awareness. Actually, the same spot won the best famous person usage award in the 1998 Creative Circle
Honours (Campaign 1998).

Ten out of twelve managers indicated that celebrities could build, refresh and add new dimensions to
brands by transferring their values. They argued that what celebrities stand for enhances brands. Many
managers cited the Bob Hoskins and BT relationship as a great example of celebrity values transferring to
the brand. A planning director claimed that Bob Hoskins brought his charisma, gentleness, and warmth to
BT which had had none of these qualities. Another relationship which was mentioned frequently was
between Jack Dee and John Smiths Bitter. Managers argued that the company has transferred Jack
Dee’s smart, cool, laid back, no non-sense characteristics to the brand.

Although most academics have argued that celebrity endorsements work because celebrities are credible
and attractive, only 50 percent of the respondents mentioned these qualities as reasons. A possible
explanation for this discrepancy between scholars and practitioners could be that most advertising agency
managers may perceive a celebrity as a gestalt, and do not differentiate attractiveness and credibility
characteristics. Indeed, one of the respondents claimed that when a person is famous, people forget
about what the person looks like as everyone knows the face, it is hard to judge whether the person is
pretty or ugly.

Managers believed that celebrities save time in creating the credibility a company has to build into
products. They argued that when consumers see a credible celebrity endorsing a product, consumers
think that the product must be at least ‘OK’. However, it was revealed that Nanette Newman was used by
Fairy Liquid for years because she was perceived as trustworthy, believed in, and motherly.

Four out of twelve advertising agency managers mentioned PR coverage as another reason for using
celebrities. Managers perceived celebrities as topical, which created high PR coverage. Indeed, celebrity-
company marriages are covered by most media from television to newspapers (e.g. The Spice Girls and
Pepsi). This particular reason has not been mentioned in the academic literature previously to the
researcher’s knowledge.

Two managers were quite sceptical about advertising agency motivations for using celebrities. One stated
that when agencies are desperate for an idea or all else fails, they bring in a celebrity. Another argued
that agencies use celebrities because it is easy to convince clients since a successful celebrity campaign
could make clients’ marketing managers famous and keep them comfortable in their position for a while.

Opinions on campaigns involving celebrities

Although managers argued that when used well celebrities could be very powerful and help magnify the
effects of a campaign, at the same time they were very cautious. They emphasised that celebrities alone
do not guarantee success as consumers nowadays understand advertising, know what advertising is, and
how it works. One of the managers argued that years ago celebrity mania prevailed, but has now
dissipated. People know celebrities are being paid a lot of money for endorsements and this knowledge
leads them to cynicism about celebrity endorsements. According to this respondent, people are annoyed
that celebrities are endorsing products.

Specifically, all respondents postulated that celebrities were good at generating attention, recall and
positive attitudes towards advertising provided that celebrities are supporting a good idea and there is an
explicit fit between celebrities and brands. On the other hand, they were not agreed on issues such as
creating positive attitudes to brands, purchase intentions and actual sales.
An account director claimed that the combination of product innovation and celebrity endorsements lead
to absolute success for Pizza Hut. He argued that the product, stuffed crust pizza was a very good
product and had a point of difference to other Pizza’s because it had cheese in the crust. The launch of
the product and other promotional activities involved celebrities (e.g. Ruud Gullit, Murray Walker, Damon
Hill). All the financial modelling the agency had done in terms of the actual contribution to the company’s
business in sales terms indicated a phenomenal growth. Another example for a successful celebrity
usage was the Steve McQueen—Ford Puma campaign. The agency argued that the car was instantly
sold out and second hand models were selling for £1000 more than new ones.

According to another account director, the Hula-Hoops and Harry Enfield relationship generated
phenomenal recall and awareness figures as well as increased sales. Most sports person endorsements
are argued to create positive attitudes towards products and generate sales (e.g. Nike—Michael Jordan,
Dunlop—John McEnroe, Adidas—Prince Naseem Hamed). It was argued that people know they are not
going to be as good as these athletes, but having their equipment makes them feel better.

The issue of a celebrity overshadowing the brand (the vampire effect) was widely known to advertising
managers. They indicated that they were very careful about this phenomenon when deciding which
celebrity to use. One cited that overshadowing is just like an atomic bomb which can blast the campaign
to nowhere. Two specific examples were given; 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 issue was raised as making sure a celebrity endorsing a brand actually uses the brand as well.
Sainsbury’s encountered a problem with Catherina Zita Jones, whom the company used for its recipe
advertisements, when she was caught shopping in Tesco. Managers also suggested that whether the
celebrity is endorsing another brand in the same product category must be investigated.

In sum, managers thought celebrity endorsements could be effective when celebrities were chosen
accurately and campaigns were planned and executed well. Moreover, a good campaign idea and an
intrinsic link between the celebrity and the message were musts for a successful celebrity involved
campaign.

Celebrity usage trend

Nine respondents felt that there was an increasing usage of celebrities as endorsers, but four out of nine
thought that this increase was in line with the overall growth of advertising. The remaining three did not
see an increase in the UK.

Increasing consumer interest in sports and leisure activities was argued to be a reason for the increasing
utilisation, as promotional activities have been simultaneously moving more towards entertainment as well
as product/service selling. Availability of far more celebrities (e.g. footballers, rugby players, and
comedians) who are willing to endorse products because they can make a lot of money and gain fame as
a result of endorsements was another reason.

The snowball effect, which occurs when a company uses a celebrity, as others start to consider using one
was given as another reason. Last, but not least the need to stand out quickly in today’s expensive and
cluttered media environment was mentioned as an additional reason for the increasing usage of
celebrities in marcoms.

Managers observing no increase claimed that personalities come and go. They indicated that certain
products (e.g. female skincare products, shampoos, cigarettes) always had celebrities namely Ronald
Reagan for Chesterfield cigarettes and Ian Botham for Hamlet. They argued that celebrities have got
more expensive and probably more risky since media nowadays digs out the lives of celebrities.
Celebrities were thought to be not enjoying the untouchable status they had in the 60s and 70s.

Even though managers were only asked to give their opinions on reasons for using celebrities,
effectiveness of celebrity endorsements, and whether there was an increasing utilisation, most of them
also commented simultaneously on potential pitfalls of this strategy. These responses could lead to the
conclusion that managers are very cautious in selecting celebrity endorsers. Indeed, as it is presented in
the following part, a range of factors are considered in choosing celebrities to endorse brands.

Selection Criteria and Their Commonality

In this section, factors considered while deciding on a particular celebrity endorsers for a campaign and
whether these factors’ importance may differ within the UK and among other countries are explored.

Selection criteria
According to managers, factors considered while selecting celebrities vary depending on how celebrities
are utilised; celebrity as the central feature, or celebrity for the added interest. In the former case, a
campaign can not work without a particular celebrity (e.g. BUPA Health Centre used Arsenal’s striker Ian
Right who rapidly recovered from his injury). On the other hand, in the latter case an agency can use a
variety of celebrities as the aim is to get added interest (e.g. One-2-One mobile phone company used
such celebrities as Chris Evans—John Lenon, and Ian Right—Martin Luther King, to promote its new
service). Table-3 comprises a list of criteria mentioned in choosing a celebrity endorser for a campaign in
a ranking order.

Table-3 Selection criteria

Fit with the advertising idea

Celebrity—Target audience match

Celebrity values

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

 Celebrity profession

Celebrity Equity membership status

As can be inferred from the table, respondents mostly argued that a celebrity must be right for the
advertising idea though it is ambiguous as to how one decides whether the celebrity is right. It is our belief
that what respondents tried to communicate was that agencies do not start with a celebrity and then build
a campaign around them. Usually the campaign idea would be developed first and then a celebrity search
would start. It is about what suits a campaign rather than using an available and popular personality,
although casting departments occasionally are asked to put forward a list of possible celebrities for
campaigns. In these exceptional occasions, a personality is chosen first and an advertisement is written
around the particular celebrity.

The second most frequently mentioned factors were target audience feelings towards a celebrity, what
the celebrity stands for, and how much the celebrity charges for an endorsement contract. These finding
are similar to academic suggestions put forward by McCracken (1989), Brierley (1995) and findings by
Kamins (1990) and Langmeyer and Walker (1991a, 1991b). The third most cited factor was whether the
celebrity image matched product characteristics, which was widely suggested by scholars (Ohanian 1991;
Bertrand 1992; Callcoat and Philips 1996; O’Mahony and Meenaghan 1997).

Surprisingly, celebrity characteristics such as credibility and attractiveness were only cited by twenty-five
percent of the interviewees whereas in the academic literature (Caballero, et al. 1989; Chawla, et al.
1994; Debevec and Kernan 1984; Klebba and Unger 1982; Ohanian 1990; Patzer 1983,1985) these two
variables were believed to be two of the most important factors in getting a source’s message across.
Again, the earlier given possible reason for this disparity may be that practitioners think of celebrities ‘in
the round’ and so are concerned with the whole person or ‘gestalt’ rather than specific characteristics. A
whole set of variables such as the risk of a celebrity getting into public controversy, prior endorsements,
celebrity availability and willingness, a celebrity’s profession and whether a celebrity is a user of the
product or service was reported to be taken into account in selecting celebrities.

It was pointed out that whether a celebrity is a member of an organisation called Equity, a union for
advertising presenters and industry workforce, must be taken into account in choosing a personality. The
long lasting strike by Equity members because of the fact that everyone involved in shooting
advertisements were not being paid adequate wages was reported to affect decisions. Indeed, sudden
increase in utilising football stars in advertisements is partially attributed to the fact that footballers are not
Equity members (Table-4).

Table-4 Advertisements involving footballers

Footballer Brand

Gary Lineker Walkers Crisps

Ruud Gullit, Steward Pierce Pizza Hut

David Ginola L’Oreal Elvive

David Beckham Brylcreem, Adidas

Eric Cantona Eurostar, Nike

Ronaldo and Brazilian Nationals Nike

 Del Pierro, Zinedine Zidane Adidas

Ian Right BUPA Health Centre, One-2-One

Peter Schmeichel Danepak, Sugar Puffs

Alan Shearer McDonald’s, Braun Razors

This sudden increase in utilising football stars in advertisements can also be explained by the 1996
European Cup and the 1998 World Cup Finals which have enjoyed extensive media coverage.

Criteria commonality
Interviews indicated that considered factors are very much the same in the UK because the advertising
industry has creatively developed to a stage where agencies are often condemned when they use
celebrities as it is seen to be an easy way out. In fact, an agency manager resented the fact that they
utilised a celebrity due to his popularity and fame and as a result the campaign failed.

Six managers believe advertising is more different than similar among countries because of cultural
differences which are assumed to affect the considered factors’ weight in selecting celebrities. According
to an agency CEO, when using celebrities in Germany, there would have to be a very literal connection
between products and celebrities. Utilising Michael Schumacher to endorse motor cars could bring
phenomenal results, whereas an endorsement by him for clothing apparel would not work in Germany.
People need to see a greater association between celebrities and products. That is very different in the
United States where personalities, irrespective of whether they are a basketball player, athlete, or singer,
could endorse virtually any product successfully. They can endorse a product that is outside their
profession. For example, Michael Jordan, whose effect on the whole American economy was calculated
to be around $10 billion in the fourteen years of his NBA career (Fortune 1998), has endorsed a range of
brands from different product categories (e.g. Nike, Coke, Wheaties, McDonald’s, Hanes, WorldCom,
Oakley, Gatorade). The conventional use of celebrity endorsers; "I am a rich, famous, successful person
and I use this product" was attributed as the American way. Interviewees indicated that there were only
few such endorsements in the UK. Celebrities are said to be used not only to bring a lot of fame into
commercials, but also to transfer their fame and meanings to brands.

One of the respondents argued that in British advertising occasionally humour is turned against a
celebrity rather than using the celebrity to say, ‘if you want to look rich and famous use this product.’
According to the respondent, the best Pizza Hut advertisements were ones where celebrities enter in to
the humour of the commercial in the nicest possible way and they laugh at themselves. For instance,
Damon Hill appeared in a Pizza Hut advertisement with Murray Walker just after the season when he
came second and there was a whole joke about him finishing second again. This appeals to the British
sense of humour, but also requires the celebrity to say I am big enough to laugh about myself. On the
other hand, it is much harder to get American celebrities to laugh about themselves, and this is not the
style of American advertising. In the USA, people celebrate success which the British would find
embarrassing.

Execution Issues
This section specifically investigates; types of media used by advertising agencies in campaigns involving
celebrities, opinions of managers concerning utilising celebrities in integrated marcom campaigns,
international transferability of celebrity involved campaigns in managers’ view, and whether to use one or
multiple celebrities in campaigns.
Media usage with celebrity campaigns

Even though respondents indicated that they have used celebrities in all available media, television was
the main form of utilisation. They maintained that an agency had to balance expense items in any given
campaign budget. As celebrities come with high price tags, not using them in television seemed
unreasonable for managers as it would be a waste of money due to the fact that press does not bring
personalities to life. Media such as billboards, sponsorship, cinema advertisements, point of sale, posters,
press, PR, and radio are generally used to support television advertisements. Managers argued that
using celebrities in several media was good for getting a return on investments from celebrity fees.
Managers pointed out that many minor celebrities were used in media such as press and direct mail
pamphlets, but major celebrities are reluctant to commit themselves to media other than television.

Opinions on integrated marketing communication campaigns

Traditionally, marketing communications elements—advertising, personal selling, sales promotion, and

marketing public relations—have been thought about, studied and executed separately, but there has
been a distinct trend to integrate these activities since the late 1980s. Reasons for this integration
includes cluttered media, advancing database technology, changing media buying practices, increasing
importance of below-the-line promotions, and lastly shifting marketplace power from manufacturers to
retailers. This trend of integration has been noticed by many academics as well as practitioners (Fawcett,
1993; Kitchen, 1994; Krugman, 1994; Schultz, 1991; 1994; Schultz and Kitchen, 1997; Shimp, 1997).
Kitchen and Schultz (1997) point out that there are academics who question whether the IMC
phenomenon is just another management ‘fad.’ One response is that most activities in the past have been
focused on breaking down marcom activities into definable categories, but IMC requires companies to
adopt marcoms strategies that co-ordinate various different promotional elements along with other
marketing activities that communicate with consumers. Furthermore, their study, which aimed to discover
attitudes of advertising agencies in the UK toward IMC, showed that 100% of respondents agreed that
campaigns should be integrated in terms of communication, advertising agency staff are spending 25% or
more of their time on integrated programs, and also there is a trend to more, not less, integration.

It appears that there has been a constant move towards integrating marketing communication activities. 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.
Since anything the Spice Girls do is news for the media, in a sense, companies are able to get free mass
media exposure from these comparatively dull marketing communication events. Another example is
Pierce Brosnan’s involvement with Ericsson, the Swedish electronics group. The company has not only
placed its cellular phone and communications technology in the latest James Bond action movie,
"Tomorrow Never Dies," starring Pierce Brosnan, but also used him in its commercials with the headline
"Ericsson Made/Bond Approved" (Matthews, 1997).

As companies invest large sums of money in celebrity endorsement contracts, any celebrity endorsement
relationship must contribute to larger marketing strategies (Erdogan and Kitchen 1998). Accordingly,
campaigns involving celebrities are believed to bring more positive results if they are properly integrated
than traditional non-integrated campaigns (Bertrand and Todd, 1992; Rogers, 1997). In order to discover
what advertising agency managers think about integrating campaigns involving celebrities, they were
asked to give their opinions on the issue.

Ten interviewees responded that integration could be of enormous value for campaigns if agencies can
persuade celebrities. Integration could bring instant recognition of a big idea, but for the reasons
explained later on, celebrities will not always accept endorsement deals requiring them to appear in more
than the main medium—television. According to managers, if an agency can persuade a celebrity to be
involved in a brand’s integrated marketing communication activities, the agency should take the celebrity
through all available media, though the agency not only has to make sure the celebrity is good enough to
be the brand’s front line, but must also justify increased costs. Nike sports wear’s usage of sports
personalities (NBA, NFL players, Brazilian Internationals, and athletes) in an integrated fashion was given
as a successful integrated celebrity utilisation.

On the other hand, two respondents were somewhat sceptical about extending celebrity endorsements to
multi media. They believed that integration was a dangerous word as agencies can try to integrate
campaigns for the sake of integration, but this may backfire. Thus, agencies have to carefully analyse
every kind of communication technique in its own way. Accordingly, they argued that celebrities were
much more effective when they were animated in television than on static media. Of course, if there is a
good reason for a multi media solution, it is essential. They also claimed that the additional cost of using
celebrities in other media might outweigh the additional benefits.

Even though building-up a whole marketing communication campaign around a celebrity(s) makes
complete sense, most celebrities are reluctant to sign such deals for four reasons.

 First, they are very concerned about their exposure. Should they sign a deal for more than the
main media, they know their picture can be stuck all over the place and they would lose control
over their exposure.
 Second, they do not want to be too closely associated with a particular product that may cost
them other potential deals.
 Third, they are uncomfortable with some media, as they are motionless. Comedians work well on
television since it is animated, which allows comedians to present their personality. For instance,
Henry Enfield is only comfortable with television and radio because his humour comes into life in
these mediums.
 Last, but not least they may be unable to sign for some media as their previous deals prohibit
them. For example; a celebrity might be endorsing an alcohol brand in print and his/her deal
prohibits them to endorse any other products in print.

In sum, agency managers believed that if a celebrity is good enough for a firm’s front line, benefits from
integration exceed costs. If the celebrity is willing to be involved in an integrated campaign, integrating
campaigns involving celebrities would bring better results than traditional campaign execution tactics.

International transferability

In the literature, it has been argued that celebrities with world-wide popularity can help global marketing
communication attempts (Kaikati, 1987). In order to discern what advertising practitioners think about
transferring campaigns involving celebrities globally or internationally, they were asked to comment on the
subject. It should be noted that the academic dispute on the difference between the terms ‘global’ and
‘international’ was dismissed in order to prevent confusing practitioners. Therefore, responses should be
treated as answers for transferring campaigns to another nation or nations.

All respondents argued that celebrities were as transferable as their fame world-wide. With celebrities,
agencies try to bring instant shorthand for campaigns. In this respect, a planning director believed that
celebrities with international recognition were more valuable internationally than nationally as the need for
instant shorthand is greater in the international arena. Of course, transferring campaigns to countries
where celebrities are not known does not make any sense. For example, Jack Dee and John Smith’s no
nonsense straight-talking pint of beer campaign would not make sense in countries where Jack Dee is not
known due to the fact that Jack Dee would be seen as an ordinary consumer. Most transferable
celebrities are suggested to be film stars because everybody around the world sees their films.
Campaigns involving sports people in world sports such as football, basketball, car racing and athletics
(e.g. Ronaldo, Michael Jordan, Damon Hill, Michael Schumacher, Carl Lewis), pop stars (e.g. Spice Girls,
Paul McCartney, Michael Jackson), and supermodels (e.g. Cindy Crawford, Linda Evangelista, Naomi
Campbell) are also argued to be transferable. Television stars like all the cast of Friends, and Seinfeld
may transfer to countries in which their series are run. It was claimed that Ford Puma’s McQueen
advertisement worked well in the western world.

Respondents contended that in deciding to transfer a campaign to other countries the brand subject of the
campaign is an important factor. The more a brand is international/global, the easier it is to transfer
campaigns for the brand. If a brand is not internationally known and an international celebrity is endorsing
the brand, it is more likely that consumers would remember seeing the celebrity in an advertisement, but
could not remember what the advertising was for (the vampire effect).

Another important point raised was the campaign objective. In order to execute campaigns internationally,
they needed to be developed keeping global objectives in mind. Developing international campaigns was
deemed to be a difficult task because of cultural differences. International advertisements are about pure
endorsement rather than humour. With international campaigns the cost of acquiring celebrities increases
and the number of suitable celebrities decreases. Agencies have to work out to which countries a
celebrity’s fame transfers and consider the brand’s business within those countries. For example,
because Australia and South Africa buy their television coverage from the UK, Damon Hill and Murray
Walker are well known in these countries, but Pizza Hut only ran its advertisement with these two
celebrities in Australia and did not run it in South Africa because Pizza Hut’s business was not enough in
this country to justify television coverage. An accounts manager argued that if the goal is to save money,
which is the most often given justification for global/international campaigns, with global endorsement
deals, agencies had better not use a celebrity unless the celebrity is entirely global.

Use of multiple celebrities

It was argued that answers to the following questions would help agencies in deciding how many
celebrities to utilise for a campaign. Is it better to have different celebrities who appeal to different people
within the target audience? Is one celebrity enough? How long is the campaign supposed to run? How
much money is going to be spent? What media it is going to be run in?

Using multiple celebrities or a single celebrity partially depends on the time scale a campaign is using to
have impact. If the campaign has a long-term strategy, agencies would be more careful because potential
downsides are much more than potential upsides. The longer the time scale, the more substantial the
brand, and thus, the less likely a campaign would stay with a particular celebrity. In the case of using
multiple personalities, none of the celebrities may be specifically associated with the endorsed brand or
vice versa. An interviewee claimed that if a campaign has a large advertising and media budget, multiple
celebrities would be introduced in order not to bore target audience. According to the same manager,
people change and the way they relate to brands also changes. Therefore, the sort of personality used to
endorse a product should be different for different age groups. For example, two celebrities may be used
to give slightly different attitudes to brands. In a lot of cases a brand has a wide range of consumers and
sometimes the use of multiple celebrities is needed to cover the whole target audience, though it must be
made sure that each celebrity’s values reflects core brand values. What this interviewee seems to be
implying is that the audience/market segments that exists in the target audience/market. More specifically,
following Baker’s (1996) footsteps, the manager accepts differences in the target audience/market and
tries to adjust promotion strategy accordingly.

On the contrary, another manager believed that a celebrity is the mouthpiece for a brand in
communicating messages to target audiences rather more effectively than any other voice. The
personalities of celebrities are very strong and they can rapidly change perceptions of a brand. If a
campaign has two or three celebrities, then whose personality is the brand trying to take? In this case,
there is a great chance of confusing consumers about the brand’s identity. In order to prevent this
possible confusion, when managers have genuine reasons and means to utilise more than one celebrity
for a particular campaign, they should make sure every and each celebrity must possess compatible
meanings that are sought for brands.
marketing communications strategy for firms in today’s competitive environment. For practitioners, the
findings highlight some of ‘dos and don’ts’ of celebrity endorsement strategy. For example, managers
should not suggest celebrity campaigns just because it is easier to get clients to accept them or they are
out of creative ideas, but they should have genuine reasons. In a way, these findings provide guidelines
for managers planning to utilise and execute celebrity-based campaigns.

Since this research was exploratory and had a relatively small sample size, there is a need for
confirmatory research with a larger sample testing hypotheses derived from the findings presented in this
paper. Moreover, because the research involved managers working within large advertising agencies,
further research involving managers from all sizes of advertising agencies is needed in order to
confirm/revise/reject the findings. Researchers interested in the subject may wish to duplicate the
research in other countries which may provide a basis for cros-cultural comparisons of managers
attitudes towards celebrity endorsement strategy.

Celebrity endorsements are impelled by virtue of

the following motives:
 Instant Brand Awareness and Recall.
 Celebrity values define, and refresh the brand image.
 Celebrities add new dimensions to the brand image.
 Instant credibility or aspiration PR coverage.
 Lack of ideas.
 Convincing clients.

The scope of a celebrity on the incumbent brand:

Simply stating, a brand is a differentiated product and helps in identifying your product and
making it stand out due to its name, design, style, symbol, color combination, or usually a mix of
all these.

Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have to
ferret the implicit nuances that act as sources of strong brand images or values:

 Experience of use: This encapsulates familiarity and proven reliability.

 User associations: Brands acquire images from the type of people who are seen using
them. Images of prestige or success are imbibed when brands are associated with
glamorous personalities.
 Belief in efficiency: Ranking from consumer associations, newspaper editorials etc.
 Brand appearance: Design of brand offers clues to quality and affects preferences.
 Manufacturer’s name & reputation: A prominent brand name
(Sony,Kellogg’s,Bajaj,Tata) transfers positive associations

The celebrity’s role is the most explicit and profound in incarnating user associations among
the above-mentioned points. To comprehend this, let us analyze the multiplier effect formula for
a successful brand:
S=P* D*AV --the multiplier effect
Where S is a successful brand,
P is an effective product.
D is Distinctive Identity
and AV is Added values.

The realm of the celebrity’s impact is confined to bestow a distinctive identity and provide AV to
the brand; the celebrity does not have the power to improve or debilitate the efficiency and
features of the core product. Thus, we are gradually approaching an evident proposition
claiming,

“The health of a brand can definitely be improved up to some extent by celebrity endorsement.
But one has to remember that endorsing a celebrity is a means to an end and not an end in
itself.”

An appropriately used celebrity can prove to be a massively powerful tool that magnifies the
effects of a campaign. But the aura of cautiousness should always be there. The fact to be
emphasised is that celebrities alone do not guarantee success, as consumers nowadays
understand advertising. They know what advertising is and how it works. People realize that
celebrities are being paid a lot of money for endorsements and this knowledge makes them
cynical about celebrity endorsements.

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.

Certain parameters that postulate compatibility between the celebrity and brand image are:

 Celebrity’s fit with the brand image.

 Celebrity—Target audience match
 Celebrity associated values.
 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.
 Celebrity profession.

Successful celebrity endorsements for a brand- An Indian perspective

The latter part of the '80s saw the burgeoning of a new trend in India– brands started being
endorsed by celebrities. Hindi film and TV stars as well as sportspersons were roped in to
endorse prominent brands. Advertisements, featuring stars like Tabassum (Prestige pressure
cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar
(Dinesh Suitings) became common. Probably, the first ad to cash in on star power in a strategic,
long-term, mission statement kind of way was Lux soap. This brand has, perhaps as a result of
this, been among the top three in the country for much of its lifetime.

In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigating the
impediment that an unknown Korean brand faced in the Indian market. The objective was to
garner faster brand recognition, association and emotional unity with the target group. Star
power in India can be gauged by the successful endorsement done by Sharukh for three honchos-
Pepsi, Clinic All Clear and Santro. Similarly, when S Kumars used Hrithik Roshan, then the
hottest advertising icon for their launch advertising for Tamarind, they reckoned they spent 40 -
50 per cent less on media due to the sheer impact of using Hrithik. Ad recall was as high as 70
per cent, and even the normally conservative trade got interested.

In the Indian context, it would not be presumptuous to state that celebrity endorsements can
aggrandize the overall brand. We have numerous examples exemplifying this claim. A standard
example here is Coke, which, till recently, didn't use stars at all internationally. In fact, India was
a first for them. The result was a ubiquitously appealing Aamir cheekily stating Thanda matlab
Coca Cola. The recall value for Nakshatra advertising is only due to the sensuous Aishwarya.
The Parker pen brand, which by itself commands equity, used Amitabh Bachchan to revitalize
the brand in India. According to Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL),
post Bachchan, Parker's sales have increased by about 30 per cent.

India is one country, which has always idolized the stars of the celluloid world.
Therefore it makes tremendous sense for a brand to procure a celebrity for its endorsement. In
India there is an exponential potential for a celebrity endorsement to be perceived as genuinely
relevant, thereby motivating consumers to go in for the product. This would especially prove true
if the endorser and the category are a natural lifestyle fit like sportspersons and footwear, Kapil-
Sachin and Boost or film stars and beauty products.

Some Global Examples:

Globally, firms have been juxtaposing their brands and themselves with celebrity endorsers.
Some successful ongoing global endorsements are as follows:

 Celebrity endorsements have been the bedrock of Pepsi's advertising. Over the years,
Pepsi has used and continues to use a number of celebrities for general market and
 targeted advertising, including Shaquille O'Neal, Mary J. Blige, Wyclef Jean, and Busta
Rhymes, who did a targeted campaign for their Mountain Dew product.
 George Foreman for Meineke. He has also sold more than 10 million Lean Mean Fat--
Reducing Grilling Machines since signing with the manufacturing company.
 James Earl Jones for Verizon and CNN.
 Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $50 million
revenue growth. Nike's golf line grossed more than $250 million in annual sales. In 2000
he renegotiated a five-year contract estimated at $125 million.
 Other successful endorsements like Nike—Michael Jordan, Dunlop—John McEnroe,
Adidas—Prince Naseem Hamed, and so on.
 Venus Williams, tennis player and Wimbledon champion has signed a five-year $40
million contract with sportswear manufacturer Reebok International Inc.

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:

 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.
 Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter
of advertisements and making the ad and the brand more noticeable.
 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)
 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.
 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.
 Mitigating a tarnished image: Cadbury India wanted to restore the consumer's
confidence in its chocolate brands following the high-pitch worms 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
fightback 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.
 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.
 Demographic Connect: Different stars appeal differently to various demographic
segments (age, gender, class, geography etc.).
 Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to
generate interest among the masses.
 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.
 Celebrity endorsement can sometimes compensate for lack of innovative ideas.

Disadvantages of a celebrity endorsing a brand:

The celebrity approach has a few serious risks:

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’.
Famous brands benefit from
celebrity endorsement
SIGNING FILM PERSONALITIES and famous sportspersons for product endorsement by some
of the top brands has been in practice for a long time now. Celebrity endorsement is a frequently
used approach in marketing for the purpose of brand building. In India too Hindustan Lever
Limited has roped in Bollywood stars to endorse their beauty soap Lux since the 1950s. Vimal,
Thums Up and Gwalior are some of the other brands that have used star appeal during their early
days of mass advertising. Companies pay huge signing amount to the celebrities to make them
endorse product.

 
Celebrity endorsements have several benefits, like building credibility and getting attention of
the public, which can translate into higher sales. Basically, celebrity endorsements are being
preferred for almost every kind of product categories, like toiletries, telecom, readymade
garments, razor blades, hotels, soft drinks and hard drinks among others. The most of the big
companies have developed a new strategy to enrol celebrities and make them brand ambassadors
of their products to increase the product sale.
 
Whether it is Rehaan of Fanna for Coke or King Khan of Bollywood doing a Navaratan hair oil
advertisement, one approving nod from a celebrity face can translate into millions for the
company. For instance, the famous sports star Sachin Tendulkar endorses everything from tyres,
Palio car to Pepsi, Visa, Adidas, stock trading portals and music systems.
 
But, many risks have also been associated with such celebrity endorsements. The brand will flop
as quickly as it moved up in the market despite well-known celebrities endorsing them. The film
personalities who are well known to shape destinies cast enormous influence on customers. The
companies like Parker, ICICI and Dabur have used Amitabh Bachchan remarkably well, while
some others have been unable to exploit his ‘Big B’ status. The endorsement of Hyundai Santro
or Airtel by Shah Rukh Khan has worked well for the actor as well as for the brands. Khan also
canvassed the image of a metro-sexual man when he was seen endorsing Lux soap, which was
usually treated as a women’s soap earlier. Celebrity endorsement is, therefore, capable of
manifesting both favourable and adverse effects for the brands with which they associate.
 
When a celebrity is on the ascent it makes sense to hook the product to the star and derive
maximum benefits before the star status fades away. The returns of celebrity endorsements, like
any other advertising, are not easy to measure. The benefits accrue over a period of time, with
the celebrity campaigns and other factors contributing to the overall increase in the brand value.

Search

Celebrity endorsement market back on tracK

A fter a lull of over eight months when virtually no new endorsement deal of any significant value was signed, the

Rs 400-450 crore (Rs 4-4.5 billion) celebrity endorsement business is back on the recovery path.

Celebrity management firms like Globosports and World Sports Group say the celebrity endorsement market is
estimated to clock a healthy growth in 2009. Senior executives at these firms say while there is no organised agency
to track the deal size of the endorsements, the market size is expected to grow 15 to 17 per cent in 2009.

Endorsements by film stars, estimated at around Rs 150 crore (Rs 1.5 billion) and growing at 25 per cent, have
displaced sports personalities from the top slot.

Image: Actress Kareena Kapoor models for a cosmetic brand.

 The Impact of Celebrity Endorsements on
Consumer Brand Preferences

The crescendo of celebrities endorsing brands has been steadily increasing over the past 20 years or so.
Marketers overtly acknowledge the power of celebrity in influencing buyer's purchase decision. They have
firm believe that likeability or a favorable attitude towards a brand is created by the use of a celebrity. The
crore of rupees spent per year on celebrity endorsement contracts show that celebrities like Amitabh
Bachchan, Sharukh khan and Sachin Tendulkar play an important role for the advertising industry. It is an
established fact that celebrity endorsement can bestow unique features or special attributes upon a product
that it may have lacked otherwise.

In India from late 1970's and early 80's the new trend in advertising started. Brands started being endorse
by celebrities. Hindi film and TV stars as well as sportspersons were roped in to endorse prominent brands.
Advertisements featuring stars like Late Jalal Agha (Pan Parag), Tabassum (Prestige cookers), Sunil
Gavaskar for Dinesh Suiting, Ravi Shastri and Vivian Richards (Vimal), Persis Khambhata and Kapil Dev
(Palmolive Shaving cream) became common.

Though marketers should remember that celebrities are mere living beings like us and if they can highlight
the benefits or advantages of a brand they can also have some uncanny negative impact. Theory and
practice suggests that the use of stars and their unleashing power in advertising generate a lot of publicity
and attention from the public but the underline questions are, do these stars really help a brand by
increasing its sales? On the other hand, can they really have an Impact on the person's consumption
pattern, thereby changing his brand preference? How an advertisement featuring a celebrity can influence
consumers buying decision and can create an association between a brand and a common man.

To answer these questions, the article will examine the relationship between celebrity endorsements and
brands, and the impact of celebrity endorsement on consumer's buying behaviour as well as how consumer
makes brand preferences.

We will apply a wide range of accepted principles of how consumers brand attitudes and preferences can be
influenced, how buyer's behavior can be influenced, how buyer's behavior can be molded. We will use the
principles of credibility of source and attractiveness, the match-up hypothesis, the consumer decision-
making model and the communication model to understand this phenomenon.

Brand- A layman perspective

Brand is the proprietary visual, emotional, rational and cultural image that you can associate with a
company or the product. Few examples will bring home the meaning i.e. Amul - utterly butterly delicious;
Coke – thanda matlab coca-cola; Pepsi – Yeh dil mange more; Kurkure- Masti bole to kurkure and
Daewoo ka India.

These examples convey one message that when people watch advertisement a connect is being created an
result is that people go for experience of buying. People feel by using the brand they will portray certain
traits or characteristics that otherwise they do not have. This generates a certain level of emotional
affiliation and a sense of fulfillment. It is this emotional relationship with brands that make them so
powerful.

Advertisements enforces what exactly the brand stands for and what to expect by its consumption and
above all what factors, features and attributes makes it better from competition. Advertisements along with
other marketing efforts generate expectations and feelings in a customer and force them to think when the
see or hear the brand name. This Thinking process and emotional bonding gets more mature and relevant
when a celebrity endorses the brand. The subjective intangible feelings of a customer become objective and
tangible in the form of celebrity and the level of expectations will rise.  The customer will start to perceive
himself in the reference frame of the celebrity after the brand or the advertised product has been purchase
or consumed by him.

Celebrity

Celebrities are people who enjoy public recognition and mostly they are the experts of their respective field
having wider influence in public life and societal domain. Attributes like attractiveness, extraordinary life
style or special skills, larger than life image and demigod status can be associated with them.

It is safe to deduce that within a corresponding social group celebrities generally differ from the social norm
and enjoy high degree of public awareness.
Celebrities appear in public in different ways. To start, they appear in public when fulfilling their professiona
commitments example: Mahendra Singh Dhoni, who played cricket in front of an audience in Twenty-Twent
World Cup. Furthermore, celebrities appear in public by attending special celebrity events, example: the
movie award nights; special screening; world premiers of movies or for social causes. These celebrities hav
universal presence and appeal, they are present everywhere, in news, fashion shows and magazines,
tabloids and above all advertisements.

Celebrity and a Brand

Star power in India can be gauged by the successful endorsements done by Sharukh Khan (Pepsi, Hyundai
Santro, Sunfeast, and Navratan etc.), Amitabh Bachchan, Sachin Tendulkar, Rahul Dravid, Hrithik Roshan
and the others. The inevitable question is, if and how the lively interest of the public in the rich and famous
can be efficiently and effectively used by companies to promote their brands and consequently to increase
their sales revenues.

This fact can be brought out by using certain examples i.e. Mr. Amitabh Bachchan promoting Cadbury
chocolates after the fiasco of infestation when the image of Cadbury India went very low in the eyes of
people. Soon the company found a perfect fit and a reliable celebrity to transmit the correct message and
help regenerating the lost trust. The fit between the product and celebrity is evident as Mr. Bachchan and
Cadbury chocolates both have tested troubled times and still they stand tall and the love and trust they bot
share with the people all across India. This is a live example of how a celebrity brought certain attributes to
a product like chocolate.

Actor Sharukh khan has also endorsed diversified products. His endorsement basket is ranging from Hyund
Santro to Sunfeast biscuits on one hand and from Compaq computers to Videocon electronics on the other.

According to Advertising research companies both the actors are doing well and the ad spent on both by th
companies is increasing at a phenomenal rate, so does their basket of endorsements. These actors bring
reliability and trust in the brand and above all, they help in increasing the sales revenues.

Celebrity endorsements are powerful, has become evident from the above two examples but, why is it so?
This power is offered by the following elements, which also creates a 'Top of the Mind Position'.

* Instant Awareness, knowledge about the brand and easy recall.

* Values and image of the brand is defined, highlighted and refreshed by the celebrity.
* The celebrity adds new edge and dimension to the brand.
* Credibility, trust, association, aspiration and connectivity to brand.
* Belief in efficiency and new appearance that will result in at least trial usage.

Understanding Consumer Behaviour

Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. I
blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to
understand the buyer decision-making process, both individually and in groups. It studies characteristics of
individual consumers such as demographics, psychographics, and behavioral variables in an attempt to
understand people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general.

The study and knowledge of consumer behavior helps firms and organizations to improve their marketing
strategies and product offerings. Following are the important issues that have significant influence on
consumer's psyche and their ability to take decisions:

 The psychology of how consumers think, feel, reason, and select between different alternatives (e.g
brands, products);
 The psychology of how the consumer is influenced by his or her environment (e.g., culture, family,
signs, media);
 The behavior of consumers while shopping or making other marketing decisions;
 Limitations in consumer knowledge or information processing abilities influence decisions and
marketing outcome; 
 How consumer motivation and decision strategies differ between products that differ in their level of
importance or interest that they entail for the consumer; and
 How marketers can adapt and improve their marketing campaigns and marketing strategies to more
effectively reach the consumer.
 Their Age, Religion, Culture, Income, informal group and Referent Group.

Understanding these issues helps us adapt our strategies by taking the consumer into consideration.

Consumer Decision-making process

The given process is very complicated though on first sight it does not look so. Process starts with problem
recognition or with an unsatisfied need. Something that a consumer would like to have or purchase in order
to attain satisfaction. This need can be Psychological, attitudinal or Physiological but yes it should have the
capacity to be fulfilled by consuming a particular product or service.

To satisfy the given need what all are the components that should be taken into consideration and how we
can maximize the satisfaction is the next stage. In this stage, we will cover ability to purchase, level of
involvement, people whose opinion will count and other relevant details that will help us in optimizing
satisfaction.

Based upon information search we will generate various alternatives i.e. which brand or product is affordab
for me, where will it be available comfortably and above all in comparison to other brands or products how
better or economical it is.

Evaluation stage will look like cost benefit analysis and based upon maximum value or utility per rupee
spend, we will decide or shortlist the product or brand. This is the decision and confirmation stage where th
consumers prepares himself for the purchase of a particular brand and give preference to one and only one
over and above the others.

Next comes the purchase when the consumer will finally go to the market and look for the brand or the
product, physically verifies it and purchases it.

Last is the post purchase Evaluation in which the customer wants to justify his consumption or purchase
decision. He tries to find out whether his purchase decision was right or not. Companies make lot of effort t
tackle this situation successfully and they want the customer to be satisfied with their product.

This stage may result into three situations, first is satisfaction where customer is satisfied and he got
expected results but this does not necessitates the repeat purchase by the consumer. Second is dissonance
where the consumer is not satisfied as he got less utility or less than expected result from the consumption
or product performance. Third is Delight, here the consumer gets more than expected satisfaction and utilit
and this will assure the repeat purchase and creation of brand loyalty.

Traditional Factors affecting consumer decision making

There are several factors that affect consumer's decision to purchase a brand and a product. These factors
though at time are not very much visible but they make an impact and affects sales of a product or brand u
to a great extent. The table below shows some of these factors.

Impact of a Brand on consumer purchase decision

Research studies have proven that known products and names are sold more than unknown ones.
Therefore, a known brand or an optimally exposed brand will find more recognition and buyers in the marke
in comparison to completely unknown or unexposed brand. Recognition of brand and its significance along
with the traditional factors plays a very significant role in consumer decision-making process.

 More or less every consumer has a brand preference and given the affordability and societal norms, each
buyer would like to buy and consume one of the highly acceptable, recognizable, and reputed brands.

The above given model explains the important role that a brand plays in three different stages of consumer
purchase decision making. A consumer start collecting data or information about his favourite brand than h
keeps his favourite as one of the alternatives and he evaluate his selected brand against all available option
and on finding it suitable or best among all options based upon a qualitative and quantitative evaluation he
will ultimately purchase the selected or favourite brand.
The diagram above explains how various traditional factors along with brand preference interact during
purchase decision process and finally results into a consumer's final product choice or ultimate purchase.

Celebrity and a brand

Surveys suggest that compared to any other types of endorsers, famous people achieve a higher degree of
attention and recall. They increase awareness of a company's advertising as well as help in retention of
message in the psyche of the audience. They can also help the company in reducing their expenditure on
Media and other forms of publicity. An example will bring more clarity, When S Kumars, a known textile
brand entered into readymade garments business they used Hrithik Roshan, then the hottest advertising
icon for their launch advertising for TAMARIND, now one of the premium readymade brands. They reckoned
that they have spent 40-50 percent less on media due to sheer impact of using hottest star like Hrithik. The
Ad recall was as high as 70 percent and the campaign can be termed as a great success.

Celebrities also create positive feelings towards brands, connect user to brand and are perceived by
consumers as more entertaining.

Using a celebrity in advertising or for any, other type of communication for brand building is likely to
positively affect consumers' brand preference, brand attitude, brand association and purchase intentions. T
ensure positive results, however, it is critical for advertisers to have a clear understanding of consumer's
reactions and reinforcement of celebrity endorsement. The impact of celebrity endorsement on any brand a
well as on consumer's purchase decision is very critical.

Source Credibility

Central goal of advertising is the convincing of consumers and persuasion to purchase, the ultimate
objective, though not openly spoken, is to some how attract consumers to the market offering of the
company, generating positive attitude, reinforce positive association and ultimately to generate sales, may
be a trial purchase. At later stages, the sponsor may work towards creating a brand loyalty but generating
initial sales or increasing the existing sales is the primary objective. In this respect, the credibility of an
endorser along with advertisement plays an important role in convincing the target audience of the
attractiveness of the company's brand and generates sales. Pursuing a celebrity endorsement strategy
enables advertisers to project a credible image in terms of expertise, persuasiveness, trustworthiness, and
objectiveness.

To create effective messages, celebrity advertisers also have to consider the attractiveness of the
spokesperson. Source attractiveness refers to the endorser's Physical appearance, Personality, Likeability
and Similarity to the receiver, thus to the perceived social value of the source. This behavior mainly goes
back to halo effect, whereby persons who perform well on one dimension example: physical attractiveness
or top professional performance, social status are assumed to excel on other levels as well i.e. happiness
and coolness. This is evident from the use of Fardeen Khan, modern, dynamic, outgoing and smart
personality for Provogue; he translates the modernism of the brand well. Titan uses Aamir Khan in his
different avatars for communicating to the public that their watches are as reliable and passionate as Aamir
is for films. Both Fardeen and Aamir carry the message well and enhance the credibility of the brand they
endorse.

Establishing a Perfect Match

Research proves that a spokesperson especially for a service product or organization (ICICI- First Amitabh
Bachchan, now Shahrukh Khan) interacts with the type of brand being advertised. These stars communicat
the value of the product and transform an ordinary service into a miracle solution for all problems of an
ordinary customer.

According to Friedman and Friedman (1979), a famous relative to a 'normal' spokesperson is more effective
for products high in psychological or social risk, involving such elements as good taste, self-image, and
opinion of others. Several research studies have examined the congruency between celebrity endorsers and
brands to explain the effectiveness of using famous persons to promote brands.

In India, a brand called Reid & Taylor presented its perfect example when they first launched their
advertising campaign featuring James Bond fame of the time Mr. Pierce Brosnan along with the tagline
'BOND WITH THE BEST' but the James Bond idea did not worked and the company was not happy with the
results.

After the debacle of the first campaign, company introduced a family ad where children are celebrating ther
parents silver wedding anniversary and they are out with their father to purchase a suit for him. Even this
commercial did not work and it was taken off the air. As a last resort, company introduced Mr. Amitabh
Bachchan as Reid & Taylor man, a man propagating the brand for special occasion and for very special
people in life. The commercial from the initial days got good response and did extremely well as people wer
able to connect with Mr. Bachchan and the values he was propagating.

 For the masses, there was a perfect match of an ideal Indian family man, a star and a good quality but bit
highly priced brand reserved especially for special occasions and for very special people.

Second example that can be quoted is of Vishwanathan Anand, who endorsed NIIT. NIIT adopted a very
smart strategy by roping in Vishwanathan Anand an international chess wizard for their advertising
campaign. As chess is considered to be a game full of strategies and a game for smart people and when on
of the greats of the game is asking people to join NIIT it was suppose to have a positive influence on the
people and actually it had. There was complete congruency and compatibility between the celebrity
endorser, the product and the message.
Contrary to only favorable outcomes, there are several examples where the product, even the entire
campaign collapsed due to heavy weight celebrity as the agency or the ad failed to establish the relationshi
between the endorser and the product. Keeping the focus only on success, where the product and the
celebrity were a perfect match, following are few examples:

Company / Product
Celebrity Endorser
* Dabur
* Cadbury
Amitabh Bachchan
* Reid and Taylor
* Parker
* Santro
* Videocon
Shahrukh Khan
* Sunfeast
* Pepsi
Juhi Chawala * Kurkure
Ustad Zakir Hussain * Taj mahal tea
* Titan
Aamir Khan * Coke
* Toyota Innova
* Nakshatra
Aishwarya Rai
* Lux
* Fanta
Rani Mukherjee
* Nestle Munch
* Whirlpool
Kajol and Ajay Devgan
* Tata Indicom

The campaigns are not only basking with the glory of success stories, but there is considerable number of
failures as well. Assuming that a person just have to be famous to represent a successful brand, however,
would be incorrect and may turn out to be a very dangerous preposition resulting into a big calamity for the
entire advertising campaign or the brand.

Very well accepted and attractive super stars like Abhishek Bachchan and Amitabh Bachchan failed in
turning their endorsements into success i.e. Maruti Versa similarly Virendra Sehwag also failed to deliver
Reliance Telecommunication with the master stroke of his cricketing genius.

Among the possible reasons identified by several authors, including overexposure and identification, the
'match-up hypothesis' specifically suggests that the effectiveness depends on the existence of a 'fit' betwee
the celebrity spokesperson and endorsed brand.

Empirical work on the congruency of brand with the celebrity often has concentrated on the physical
attractiveness of the endorser. Results show that an attractive spokespersons are more effective in terms o
attitude change when prompting brands that enhance one's attractiveness i.e. cosmetics; health drinks or
fashion wear.

Primary data states, for celebrity spokespersons to be truly effective, they should be knowledgeable,
experienced, mature, and a bench mark in their respective field and qualified to talk about the product.

Transferring the Meaning

After watching an advertisement the consumers try to find the meaning of the advertisement and associate
the same with the endorser and eventually transfer to the brand. To understand this phenomenon Mc
Cracken (1989) suggested a comprehensive model known as Meaning Transfer Model. This three-stage
model suggests how the meaning associated with the famous person moves from the endorser to the
product or the brand. Thus, meanings attributed to the celebrity become associated with the brand in the
consumer's mind. Finally, in the consumption process, the customer acquires the brand's meaning. The thir
stage of the model explicitly shows the importance of the consumer's role in the process of endorsing brand
with famous persons.

In contrast to anonymous endorsers, celebrities add value to the image transfer process by offering
meanings of extra depth and power, what is complemented by their life style and personalities. Therefore,
transfer the correct meaning to the consumer the company should select a celebrity that will produce the
most favorable response for consumers and for the purpose the celebrity should have, the appropriate set o
characteristics and the public should be able to visualize and comprehend the same. The company should
consider the consumer's needs while developing their communication strategy and selecting an appropriate
celebrity to transmit the same, i.e. Kurkure used actress Juhi Chawala with the punch line 'Masti Bole To
Kurkure' and the actress on screen and off-screen personifies the masti and helps the brand in
communicating the same easily.

Compatibility of the celebrity's persona with the overall brand image is very important, as a celebrity
imparts credibility and inspirational value to a brand and his or her image should perfectly match the brand
image. A good brand campaign idea and an intrinsic link between the celebrity and the message are must
for a successful campaign.

Certain elements that generate a perfect match or compatibility between the celebrity and brand image are

* Celebrity's fit with the brand image along with celebrity-target audience match.
* Celebrity associated values and celebrity-product match.
* Costs of acquiring the celebrity and his or her popularity along with controversy risks associated with the
celebrity.
* Credibility, availability and physical attractiveness of celebrity.

The above points can be put to perspective by using two examples, first Kapil Dev's 'Palmolive da jawaab
nahin' and second Nakshatra's brand recall due to its endorser, the gorgeous Aishwarya Rai Bachchan. Both
brands have edged out and carved out their niche in consumer's mind due to image and credibility of their
endorsers. These were the cases of perfect match between the brand image and the image or persona of th
celebrity endorser.
Celebrity Endorsements Raise Company Profiles
IN 1994, a company called InterHealth Nutraceuticals brought supermodel Kim Alexis on board
to endorse its new diet ingredient CitriMax. The launch was a huge success and the product can
still be found in many formulas in the dietary supplement industry.

Using a famous celebrity, whether a model, sports figure, actor or political activist, can raise the
profile of a company in several ways. It can help with consumer awareness of a brand, endorse
the effects of a particular product or ingredient, or drive sales of a long-standing product that
needs a boost. More companies in the natural products industry are hitching their brands to stars,
and seeing increased consumer awareness. However, the majority of these endorsements are for
brand awareness, vs. specific product sales. What does it take to line up working with a celebrity,
and how does it benefit retail sales?
Working With a Star

Once a company makes the decision to seek out a celebrity to endorse its brand or a specific
product, it's time to figure out who fills the need. "Selecting a celebrity spokesperson is a
subjective and sometimes lengthy process," said Sheldon Baker, principal with Baker-Dillon
Public Relations. Everyone has their own opinions--perhaps the president wants a celebrity with
blonde hair because it reminds him of his daughter, or an executive wants a figure skater for the
endorsement because he enjoys ice skating. However, of paramount importance is whether the
celebrity speaks to the demographic market the company is trying to reach.

Eric Anderson, director of marketing for Missoula, Mont.-based Technical Sourcing

International (TSI), said his company specifically chose to work with Linda Evans because she
filled several of its needs. "I support using a celebrity if that person speaks to your target market,
believes in the product and has an established reputation with consumers," he said. In Evans'
case, she had been speaking for the past few years to audiences about women's health issues. TSI
originally hired Evans to speak at a seminar at last year's NNFA trade show; the positive
response by consumers and manufacturers prompted the company to move forward on an
endorsement deal for its Ostivone product.

In other cases, a middle man or the celebrity himself approaches a company about an
endorsement. Nature's Way started working with mountaineer Ed Viesturs in 1998 after a third
party learned that Viesturs was interested in working with a dietary supplement company.
According to Craig Sanders, senior vice president of marketing for Springville, Utah-based
Nature's Way, the endorsement has been more a validation of what the company says elsewhere
rather than a commercial venture. "It's a fit because in his line of work, everything he does is
very meticulous and the choices he makes are calculated to attain the best result," Sanders said.
"It's an implicit endorsement that he chooses reliable equipment and that's enough for us."

Similarly, EAS, the Golden, Colo.-based sports nutrition company, was originally approached by
Denver Bronco Bill Romanowski when he was traded to the team in 1997. "Basically, Bill came
to us and said he used our products and wanted to work with us," said Jim Nagle, EAS marketing
director. Romanowski's teammate Shannon Sharpe later ran into EAS president Bill Phillips at a
Denver mall and started talking about the products and working together. More players signed on
as they saw results with the products, and in 1998, EAS became the official sports supplement
provider to the team.
Cost/Benefit Analysis

Regardless of how the relationship begins, there is always an element of give and take.
Depending on the profile of the endorser, the amount of publicity desired and how the
relationship started, cost to a company varies widely.

To line up most major celebrities, companies work with talent agents to scout availability.
According to public relations companies that have helped put together deals, the cost usually
runs $300,000 to $400,000 for a one-year contract. The cost varies depending on what a
company wants. If it's just public relations, it might be lower, while including the celebrity in
advertising would be higher. There are aggregate costs as well. "The sponsor company also picks
up all travel expenses, including first class air travel, top-of-the-line hotels, and more," Baker
said. New photography, advertising placement costs, developing a media tour, etc., are all
additional costs on top of the baseline. And naturally, products are included in hopes that the
celebrity will use them.

Nature's Way said it does provide Viesturs with a retainer, but it is more to support his climbing
than to do marketing or advertising. The company also provides Viesturs and his family with
whatever Nature's Way products they desire. Similarly, Green Foods in Oxnard, Calif., has been
working with marathon runner Jerry Dunn; the company supplies Dunn with products and also
compensates him for time or major exposure events.
According to Dennis Harris, vice president of public relations and advertising with Green Foods,
the money question is a difficult one. "Does the fact that you offer substantial financial rewards
to someone, even if they use the product, in some way taint the relationship?" he asked. Instead,
working with celebrities who use the product and believe in it, even if they weren't signed on to
endorse it, can prove more of a benefit.

In the case of EAS and the Broncos, Nagle said the company provides the team with all the
sports supplements they need, plus any company clothing that players are interested in (you may
have seen a Bronco in EAS gear during playoff season). EAS did an ad recently with Terrell
Davis and the product MyoPlex, which Nagle said is the first time the company has really
marketed the association through advertising.
Retailer Reaction

What can a retailer do to bring this consumer recognition into the store and turn it into sales?
Some companies make available to retailers a variety of POP materials, such as shelf talkers and
brochures, that include the celebrity's photo, information about the product and an endorsement.
"These types of materials carry the message that this person believes in the product and you [the
consumer] can be comfortable believing in the product," Anderson said. "With so many products
available in the dietary supplement industry, a celebrity can help act as a carrier for a product's
message to consumers."

Linda Evans

Whatever happened to Krystal Carrington? Her portrayer, Linda Evans, is still active,
particularly in the area of women's health and fitness. She has been speaking around the country
for a few years, including a trip to the NNFA show in San Antonio in 1998 to speak at a seminar
sponsored by Technical Sourcing International (TSI), producer of the branded ingredient
Ostivone. Evans said after the seminar that she started taking the product and loved the results.
So when she was contacted at the end of 1998 about coming on board as a spokesperson, she
didn't hesitate. "I had tried it and loved what it did for me," she said.

Evans has been taking Ostivone for better than six months now and no longer has to take the
prescription she was taking for potassium deficiency. "I was looking for this product," she said.
"It fills a need I knew I had and one I didn't know I had." The product inhibits bone loss and also
creates more bone density.

A celebrity as well known as Evans is certainly a catch for any company, and she said she is
very selective about the endorsements she chooses to do. "I would never sell myself out for
money," she said. "And because of Dynasty, I don't have to. I have not endorsed a lot of things,
because I really have to love a product to do an endorsement. I have to be honest and love
myself, and if I lie to others, I can't love myself."

Jerry Dunn

Jerry Dunn has been known as the Marathon Man since he established a world record in 1993 for
running 104 marathons in one year. That was also the year he began his long association with
Green Foods Corp. and using its product Green Magma. He said when he began using the
product, he was able to stop taking 3,200 mg of Ibuprofen daily to keep down the inflammation
from running and was soon the only supplement he was taking. "I've used Green Magma daily
since February of 1993 and believe in the product," he said.

In fact, Dunn has not been consistently working with the company in an endorsement capacity
for the full six years, but has recently come back to doing endorsement work with Green Foods.
He was set to appear at the Natural Products Expo in March, and has been wearing Green
Magma apparel while being interviewed on various television appearances. In the past, Dunn did
an infomercial for the product and was interviewed on the Today show, which mentioned his
taking Green Magma.

However, Dunn emphasized that his endorsement is secondary to his personal belief in the
product. "The products I endorse I actually use," he said. "I get press and the temptation could be
to endorse anything, but I don't." Currently, in addition to his work with Green Foods, he also
has endorsement deals with Power Bar and Breathe Right nasal strips.
Ed Viesturs

Everest was a stunningly beautiful IMAX film. It also featured a man on a quest--Ed Viesturs.
He's aiming to climb the 14 highest peaks in the world without supplemental oxygen; so far he's
topped 10 and is heading off to Nepal this spring to attempt two more. To help in his quest,
Viesturs takes dietary supplements. In particular, he's been working with Nature's Way since
1998. "I only endorse things that I use and believe in," he said. "If I can't use it and don't believe
in it, then it's really not worth it for me."

Viesturs uses Nature's Way's Daily Multivitamin, Ginkgo, Echinacea and Antioxidants. He said
his wife also takes supplements, particularly to keep healthy while chasing after their new
daughter. Nature's Way also offers sponsorship money to support his climbs. "I can't buy a plane
ticket with a box of vitamins," he laughed. In return, Viesturs has done speaking engagements at
trade shows and conferences, focusing primarily on his adventures more than the company or
products.

His explanation for choosing to use dietary supplements is a familiar one: preventive care. "It's
not like you take a supplement and see the result the next day. It's a long-term health benefit. For
me, when I'm on an expedition and abusing my body and climbing hard, supplements help me
perform better and stay healthier."