Go Back   ManagementParadise.com | Management & Business Education Learning Platform Resolve Your Query - Get Help and discuss Projects > Marketing Management ( RM , IM )

Is it smart to use celebrity endorsements for branding?

Discuss Is it smart to use celebrity endorsements for branding? within the Marketing Management ( RM , IM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; Is it smart to use celebrity endorsements for branding? Stars, who are known to shape destinies, cast an enormous influence. ...

Reply

 

Thread Tools Display Modes
Is it smart to use celebrity endorsements for branding?
Old
 (1 (permalink))
Sunanda K. Chavan
sunandaC has a spectacular aura aboutsunandaC has a spectacular aura aboutsunandaC has a spectacular aura about
 
sunandaC
Management Paradise Guru
 
Status: Offline
Posts: 6,680
Join Date: Jul 2010
Is it smart to use celebrity endorsements for branding? - September 20th, 2010

Is it smart to use celebrity endorsements for branding?

Stars, who are known to shape destinies, cast an enormous influence. No, we’re not talking about astrology here. We’re referring to the powerful effect of celebrities on destinies of brands. One approving nod from a famous face can translate into millions in brand sales. Perhaps that’s why the world over, companies have been using stars to endorse everything, from food to food chains, from soft and hard drinks to health drinks, from clothes and accessories to cars (and the tyres on which they run).

Even political parties are awestruck by the charisma of stars. Such is the magnetism of celebrities in this country that in the recent general elections, major political parties fielded a record number of film stars and cricketers to contest from important constituencies around the country.

So what about celebrities drives companies to spend in millions on obtaining their stamp of approval on their brands?

Celebrity Endorsements as a strategy

Signing up stars for endorsements is a time-tested strategy and has been effectively used by some of the top brands in the world including Nike and Pepsi. In India too, HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties. Vimal, Thums Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. And who can forget Kapil ‘Palmolive’ Dev?

Ask about the objective of using a celebrity in an ad and most admen will talk about making an impact on the bottom line. They believe that star endorsements have several benefits, key among them being building credibility, fostering trust and drawing attention… any or all of which can translate into higher brand sales.

So how does one decide whether to put a celebrity in an ad? Ideally, this should be dictated by the communication idea. MG Parmeswaran, Executive Director of FCB Ulka says, “As advertising professionals, we recommend celebrity endorsements when the case is justified. There are many cases where you need to use the celebrity to break out of a category clutter. At times celebrity endorsement is used to build credibility to the brand offer.”

Most experts concur that, when used judiciously, celebrity endorsements can be an effective strategy. According to Mohammed Khan, Chairman of Enterprise Nexus, “Using a celebrity by itself is not a bad idea provided it is done intelligently.” And there are many examples of good and bad use of celebrities.

Take Amitabh Bachchan, who has been used by some companies like Parker Pens and ICICI Home Loans remarkably well while some others have been unable to exploit his Big B status too well. Shah Rukh Khan’s endorsement of Hyundai Santro too seems to have worked well. Parmeswaran adds, “We used cricketers like Rahul Dravid for Castrol in an attempt to break out of the clutter, as well as have an image rub off of ‘dependability’ on to the brand.”
Yet, there are some who don’t have much conviction in star endorsements. Adrian Mendonza, Executive VP and Creative Director of Rediffusion DY&R does not recommend celebrity endorsements because he thinks that to be really successful, a brand needs to have a strong identity of its own.

It should ideally not piggyback on the identity of a celebrity and hope to achieve success. Mendonza adds, “I somehow get this feeling that not much effort is put in to think through an ad with a celebrity. Most times it seems like it is just the celebrity saying ‘I use this product, so why don’t you’ kind of thing and the ad agency thinks it has done its job.”

Celebrity endorsements are capable of manifesting both favourable and adverse effects for the brands with which they associate.
Advertisements

Friends: (0)
Reply With Quote
Re: Is it smart to use celebrity endorsements for branding?
Old
 (2 (permalink))
Jitendra Mazee
jitendra05 is on a distinguished road
 
jitendra05
Student of Bachelor of Engineering at RGTU Bhopal
Bhopal, Madhya Pradesh
Management Paradise Guru
 
Institute: RGTU Bhopal
Status: Offline
Posts: 27,848
Join Date: Jan 2016
Location: Bhopal, Madhya Pradesh
Re: Is it smart to use celebrity endorsements for branding? - December 29th, 2017

Quote:
Originally Posted by sunandaC View Post
Is it smart to use celebrity endorsements for branding?

Stars, who are known to shape destinies, cast an enormous influence. No, we’re not talking about astrology here. We’re referring to the powerful effect of celebrities on destinies of brands. One approving nod from a famous face can translate into millions in brand sales. Perhaps that’s why the world over, companies have been using stars to endorse everything, from food to food chains, from soft and hard drinks to health drinks, from clothes and accessories to cars (and the tyres on which they run).

Even political parties are awestruck by the charisma of stars. Such is the magnetism of celebrities in this country that in the recent general elections, major political parties fielded a record number of film stars and cricketers to contest from important constituencies around the country.

So what about celebrities drives companies to spend in millions on obtaining their stamp of approval on their brands?

Celebrity Endorsements as a strategy

Signing up stars for endorsements is a time-tested strategy and has been effectively used by some of the top brands in the world including Nike and Pepsi. In India too, HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties. Vimal, Thums Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. And who can forget Kapil ‘Palmolive’ Dev?

Ask about the objective of using a celebrity in an ad and most admen will talk about making an impact on the bottom line. They believe that star endorsements have several benefits, key among them being building credibility, fostering trust and drawing attention… any or all of which can translate into higher brand sales.

So how does one decide whether to put a celebrity in an ad? Ideally, this should be dictated by the communication idea. MG Parmeswaran, Executive Director of FCB Ulka says, “As advertising professionals, we recommend celebrity endorsements when the case is justified. There are many cases where you need to use the celebrity to break out of a category clutter. At times celebrity endorsement is used to build credibility to the brand offer.”

Most experts concur that, when used judiciously, celebrity endorsements can be an effective strategy. According to Mohammed Khan, Chairman of Enterprise Nexus, “Using a celebrity by itself is not a bad idea provided it is done intelligently.” And there are many examples of good and bad use of celebrities.

Take Amitabh Bachchan, who has been used by some companies like Parker Pens and ICICI Home Loans remarkably well while some others have been unable to exploit his Big B status too well. Shah Rukh Khan’s endorsement of Hyundai Santro too seems to have worked well. Parmeswaran adds, “We used cricketers like Rahul Dravid for Castrol in an attempt to break out of the clutter, as well as have an image rub off of ‘dependability’ on to the brand.”
Yet, there are some who don’t have much conviction in star endorsements. Adrian Mendonza, Executive VP and Creative Director of Rediffusion DY&R does not recommend celebrity endorsements because he thinks that to be really successful, a brand needs to have a strong identity of its own.

It should ideally not piggyback on the identity of a celebrity and hope to achieve success. Mendonza adds, “I somehow get this feeling that not much effort is put in to think through an ad with a celebrity. Most times it seems like it is just the celebrity saying ‘I use this product, so why don’t you’ kind of thing and the ad agency thinks it has done its job.”

Celebrity endorsements are capable of manifesting both favourable and adverse effects for the brands with which they associate.
Many many thanks my friend for sharing such a nice information on celebrity endorsements for branding and i am sure it would help many other people here. BTW, i am also sharing some useful information for sharing more related content to your thread.
Attached Files
File Type: pdf brand management.pdf (3.75 MB, 0 views)
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
branding, celebrity, endorsements, smart
Related to Is it smart to use celebrity endorsements for branding?
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
Celebrity Endorsements Milind Gandhi Public Relations Management . 45 January 27th, 2016 03:52 PM
celebrity endorsements Shambhavi Pednekar Marketing Management ( RM , IM ) 2 January 13th, 2016 05:36 PM
Celebrity endorsements Ankit Gokani Marketing Management 17 August 12th, 2010 09:13 PM
Celebrity Endorsements Ankit Biyani Marketing Management ( RM , IM ) 21 May 31st, 2010 06:34 PM
Is it smart to use celebrity endorsements for branding? Vijith Pujari Articles !! 4 December 21st, 2008 10:13 AM
 


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off


ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.



Search Engine Optimization by vBSEO ©2011, Crawlability, Inc.