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CELEBRITY ENDORSERS AND ENDORSEMENTS IN INDIA-THE RISE AND THE IMPACT By Suhalka -Presented Garima CELEBRITY ENDORSERS

CELEBRITY ENDORSERS AND ENDORSEMENTS IN INDIA-THE RISE AND THE IMPACT

By

Suhalka

-Presented

Garima

CELEBRITY ENDORSERS AND ENDORSEMENTS IN INDIA-The Rise and The Impact

India is one country which has always idolized the species of the celluloid world.Over three million television commercials are made each year in India.80% people forget information in just 24 hours.Plight of the marketer to make his brand shout over deafening clutter of all brands,leads to celebrity endorsements.However, it is the increasing rate of such endorsements,which forms a huge part of the advertisement industry today.

WHAT

IS

AN

Any advertisement that features an actual

ENDORSEMENT?(IN

expert, celebrity, consumer, or organization expressing support for a company's products

CONTEXT

 

TO

ADVERTISEMENTS)

and/or services is considered as an endorsement which can form of verbal statements, demoe onstrations, or depictions of the name, signature, likeness or other identifying personal characteristics of an individual or the name or seal of an organization.

WHAT

IS CELEBRITY

Celebrity endorsements

 

ENDORSEMENT?WHAT ARE THE TYPES OF CELEBRITY ENDORSEMENTS?

This features individuals who have achieved a certain level of public recognition because of their achievements in the field of sport, entertainment, or some other aspect of media. This type of endorsement is most often employed by major companies engaged in multi-million dollar marketing campaigns. But it can also be utilized by smaller companies varying from a range.

Types Of Celebrity Endorsements

1.Testimonial

 

Celebrity acts as a spokesperson for the brand.

2.Imported

 

Celebrity

performs

known

role

a

to

the

audience.

 

3.Invented

 

Celebrity plays an original,new role.

 

4.Observer

 

Celebrity assumes the role of an observer commenting on the brand.

5.Harnessed

 

Celebrity‟s

image

is

integrated with

the

ad‟s

storyline.

 

DO

ALL

COMPANIES

It is not a compulsion that every brand,which

BENEFIT

FROM

BRAND

has

celebrity

a

to

endorse it‟s product

ENDORSEMENTS?

benefits.There are

which

many

earn

 

huge

profits,for

example,Santro,a

product

of

 

Hyundai motors whose sales sky-rocketed after Shahrukh Khan was signed for the endorsement.It was a revolution in the mass market.On the other hand,when Shahrukh was endorsing Kolkata Knight Riders (KKR) in IPL,Nokia was piggybanking on the success of KKR in IPL,which unfortunately was not a winner.Salman Khan was dropped from the Thums-Up advertisement after an accident in India.

DO

CELEBRITY

Celebrity Endorsements help break the clutter

celebrity‟s preference for a brand gives out a

ENDORSEMENTS BREAK THE CLUTTER OR IS A

and make the brand more noticeable.A

CLUTTER OF CELEBRITIES BEING FORMED?

For instance-Priyanka Chopra‟s perkiness,Sachin Tendulkar‟s credibility.

persuasive message.

On the other hand,in today‟s scenario,the clutter”can also be termed with relevance to a large number of same products tagged in different brands by different celebrities.On the same stage,Amitabh Bachchan,Shahrukh Khan,Kareena Kapoor,M.S.Dhoni,add on to the

list of creating a clutter of celebrity endorsements.

ARE

CELEBRITY

Every advertisement does not require a celebrity

ENDORSEMENTS THE NEED

to endorse it.There are many advertisements which have never felt the need of doing so.For

OF

EVERY

ADVERTISEMENT?

example,Fevicol,Vim,Lifeboy,Amul,Fair and Lovely. Rather,there are a few noted ads where the owner is seen endorsing their own commodity.Such as Mahashay Dharampal of MDH Masala and Rajeev Reddy of Country Club.

WHYARE ADVERTISERS

The primary reason being “Instant Recall”which

READY

TO

PAY

CRORES

FOR ENDORSEMENTS?

immediate profit in sales due to the fact that there are many other brands in competition and higher prices paid in crores to celebrities within the same type of brand.Pepsi,Coca-Cola always share the same field of war,in this case.

ensures immediate focus to the brand.This does not lead to the fact that the product will gain an

WHY DO BRANDS, DURING LOSSES,SIGN CELBRITIES TO ENDORSE?

Well,very obviously,most of them do so, to come out of losses.There come,such times,when brands need a lift up to come out of low sales.For example,One of the companies which broke their bank,was the Amrapali group Group which went from being a Rs. 3,400-crore

 

start-up to a fledgling Rs. 7,000-crore firm in just nine months of being associated withDhoni. So was the case with,one of the largest selling brands of chocolate in India,Cadbury Dairy Milk,who received a facelift after signing Amitabh Bachchan at a time of crisis(When FDA claimed that it had worms,in one of its

DO

CELEBRITY

inspections). Most of the Celebrity endorsements fail to reach

cellphones like those

of

ENDORSEMENTS REACH THE POOR SECTION OF THE SOCIETY?

the poor section of the society ,yet endorsements those pertaining to easily accessible schemes of mobile connection and

Airtel,Idea,Reliance,Vodafone and Tata are beneficiary.Also the government backed ones,in which celebrities encourage people to ensure Polio drops (Do Boond Zindagi Ke)for children upto five years in which Amitabh Bachchan was seen prominently,or Aishwarya promoting donation of eyes.

WHERE DO THE CURRENT CELEBRITY ENDORSERS STAND?

According to the research by TAM Media,Adex India Analysis 2010,for the first half of 2010,Lists Kareena Kapoor as the leading

female endorser possessing 45% of Bollywood‟s

 

most sought after. Whereas Mahendra Singh Dhoni is declared as the leading male endorser in the first half of 2010.Ahead of a difference of 8 ads from Shahrukh Khan and 3 ads from Sachin Tendulkar. According to Adex India Analysis,bollywood celebrities accounted for 80% celebrity endorsement TV ad volumes in 2009, TV actresses -2%

TV actors-2%

Sports-15%

Film Actresses-43% Film Actors-37% According to an IPAN-IMRB Research(2008), 86%-Remember celebrity ads 3%-Feel celebrities effect buying decision 84%-Believe quality and price is the input factor. 2%-Consider celebrity importance 5%-Believe stars endorse brand for money 22%-Believe celebrities use products they endorse.

WHY

IS

IT

OFTEN

Celebrity Endorsements carry huge amounts of

CONSIDERED

AS

A

FORM

money with them.

OF “DUPLICITY”?

45% of Tv ads volume in 2009, 4oo crore celebrity endoersements are figures

 

enough to convey why a celebrity would be ready to sell a product,simply for the reason that he or she earns treasures of money,endorsing it. However,this does not mean that the entire foundation of a celebrity endorsement is a form of duplicity. Else,the brands of products would not exist,for

example-

Kareena Kapoor endorsing Boro Plus ,Salman Khan endorsing wheel, Amitabh Bachchan endorsing Navratna Oil seem to be

such „forms‟.

DO

CELEBRITY

This depends upon the “Brand Recall”, “Unique

ENDORSEMENTS

LEAVE

A

Selling Point”, “Target Audience”,of the

MARK?

 

commodity endorsed.It also relates to the number of endorsements done by a particular celebrity,and is subjective to the customers.

DO

YOU

SEE

SHIFT

A

THE

IN

Certainly,there is a huge shift in type of celebrity

A term known as „Celebrity Vamping‟ which

TYPE

OF

CELEBRITY

endorsements where every other celebrity is

ENDORSEMENTS?WHERE

 

DO

seen endorsing some or the other

YOU

SEE

THE

ROAD

HEADING

commodity.However,previously,the celebrity

TO?

was to bring in credibility, trust and realism.

Today,what we see is an increasingly intelligent and conscious range of consumers who are not willing to believe anyone other than themselves. And hence the role of celebrities has now been reduced to bringing in glamour and noticeability.

means over-use of a celebrity in selling

products.They don‟t like it because they figure

that if the same celebrity is used to endorse

multiple products,the public will become

suspicious of celebrity‟s authority and expertise.

The way ahead seems to lead towards saturation

point of celebrities seen endorsing products.There seems a good need to have the celebrities fit into the relevant frame of the commodity being endorsed.

While celebrity endorsements are on the rise,many in the industry believe that celebrities can build brands, some consider celebrity branding a misuse of millions of

dollars. Whether celebrities create credibility for companies or risk the identity of brands is a concern that will continue to baffle advertisers.On the other side,it also continues to impact the audience with the monotony of their presence and their

ability to make a difference to customer‟s opinions.