Marketing
Ankit Sharma NMIMS Hyderabad PGDM 2012- 14 Do Brand Ambasadors really help the Brand?
easier to remember a product when there is a celebrity associated with it. Basically, the brand recall is higher, but these organisations spend millions on it! Gitanjali Jewels is one of the biggest jewellery brands in the country today. They have a total of 4000+ sales points in the country and around 200 international stores. The total worth of this company is USD 2.6 billion and it has the highest number of celebrity endorsers in the country with 10 brands in their pocket. To name a few are Nakshatra, D'damas, Gili, Asmi, Sangini, Giantti,
For years, we have seen countless celebrities endorsing brands that create an impact on the consumers. The value of brand endorsements this year is pegged at INR 1000 crores, which includes celebrities and sports personnel. M. S Dhoni, the Captain of the Indian Cricket Team holds a brand value of INR 200 crore, and has recently made it to the list of the richest sportsmen in the world. There are numerous brands ready to pay the hefty amount for celebrity endorsements. It has been reported that this year many companies targeted players for endorsements right before the IPL league; to leverage their performance in the business. Advertisers believe that if a celebrity is used appropriately with the brand, it definitely creates value to the consumer. Brands are endorsed by celebrities and these celebrities eventually become the face of the brand, like Sachin is the face of Visa cards, M. S Dhoni for Aircel, Akshay Kumar for Thums Up and Kajol for Whirlpool. They have done a great job and have been successful earlier, but we truly do not know about the return on investment (ROI) made on celebrities. The question is, are these brands safe in the hands of the celebrities? With so much of a celebrity clutter in the market, is it helpful for any company to endorse a product using a celebrity? In the recent past, there was a case of worms being found in a Cadbury bar, and the company decided to get Amitabh Bachchan to mend its brand image. To our surprise, it worked in the favour of the company. In another case, Shah Rukh Khan endorsed Hyundai Santro. This was a massive success, specifically when Hyundai was trying to set its foot in India. Same goes for Aamir Khan, who endorsed Coca Cola, and he became the face of the company. For a it is
@Vamshi @Rohit B. @Priyadarshani @Archana @Jaspreet!World of Solitaire, Shuddhi, Diya, etc. All these brands are endorsed by well known celebrities that include Katrina Kaif, Kareena Kapoor, Priyanka Chopra, Anushka Sharma, Preity Zinta, Shah Rukh Khan, Neil Nitin Mukesh, Salman Khan and Bipasha Basu. The organisation spends around 100 to 150 crores on these celebrities with an advertising budget of 500 crores, which is close to what some of the big FMCG players spend in a year. The question here is about a celebrity's worth in brand building. The target audience of such products are people of the middle or higher socio-economic class. It is true that consumers buy products not due to celebrity endorsements, but because of quality and design. Despite this, money has been flown down the drain on celebrity endorsements. Tiger Woods and Accenture had signed a deal for a few years, but when Mr. Woods scam hit the market, the company’s brand image was at stake and Accenture had to pull out of the contract. Accenture is also struggling with a law suit from Mr. Woods, who has endorsed many premium brands including Tag Heuer and Nike. In the Indian context, we witnessed, Shiny Ahuja who was found to be on the wrong side of H]?[???H?\???? [?[?\??][?[[?????[? ?????[?? H ??[K H??\[?HY ? ?] ?]? H?? ?X? ??[Z[\? K?\?Y[??[? ?\?[??? ?Y[?H?\???X???\?HH?]? YX\??Y?? ?[HH ?\?\????X]Y ?] ????YK??X?[] H\?[??\?XZ??\??YH ?\?H[??[X??]Y\??[\???H?H??[? ?[??\???[? ??X?[?[? [?\? ?\? H??[?[X?\??Y???\ ?H?? H??\? [YK[? ?X?[? H??[? [???? ?X\?? ?Y?Y \ ?]???H??K?[?H\????X]H?X?[? ?]\ ?H?X?]\?H \?\??Y[? ?]??MB??S?H HXY?^?[?B??