Celebrity Endorsement article

IMPACT OF CELEBRITY ENDORSEMENT AND THEIR ROLE IN CREATING

BRAND AWARENESS

V.Harini1

Email: hariniy.edu @gmail.com.Ph:9985530400.

P.Ramya2

Y.Prashanth Rao3

___________________________________________________________________________________________________________________________________

Abstract

Indians adore their loving stars (celebrity) .The advertisers see this as an opportunity to grab and work on so

as to expand their products. The celebrity endorser is a panacea for all marketing woes. Despite the cost and

the risks involved with this technique of advertising, it is been used quite extensively in the present era.

Exploit of Celebrity in advertisements adds new edge and dimension to the brand. To be 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. The star appeal however needs to be perfectly blended intelligently and strategically

to reap the benefits and make brands. The verdict of the study reveals impact of celebrities endorse in

creating awareness of the brand to the customers also unearth the relationship between celebrities, the

brands they endorse which make the customers to snatch the brand.

Keywords: Celebrity, Endorsement, Brand Awareness, Customer, Advertisement.

___________________________________________________________________________________________________________________________________

V.Harini1Assistant Professor Dept. of Business Management, Vaageswari Institute of management sciences, JNTU (H),

Karimnagar. Email: [email protected]:9985530400.

P.Ramya2 Assistant Professor Dept. of Business Management, Vaageswari Institute of management sciences, JNTU (H),

Karimnagar. Email:[email protected]:9966132211

Y.Prashanth Rao3 Dept. of Business Management, Kakatiya Institute of Management and Sciences, KU, Karimnagar. Email:

[email protected]. Ph:9985540400

INTRODUCTION

Celebrity endorsement is increasingly being employed across various industries regardless of the

product type. As it is playing the role of a signaling strategy. (Pappas, 1999) examined the value of star

power in an endorsement and pointed towards how a well-designed advertising helped celebrities convert

their star power into brand equity. Various advertising styles are used by advertisers to influence consumer

brand choice behavior and among these different available choices one very popular choice is Celebrity

Endorsements. (Alsmadi,2006). A person who enjoys public recognition from a large share of a certain group

of people and uses this recognition on behalf of a consumer good by appearing with it in advertisements is

known as a celebrity. (McCracken, 1989). According to (Reynolds, 2000) celebrity endorsement can give a

brand a touch of glamour. Majority people of the country are speckled in terms of beliefs, traditions, states,

culture, language, dialects, norms and values.

Indian advertisement has been placing a vital amount of importance on both recall and persuasion as

brand differentiating messages.(Dixit,2005). Some people are seen to admire, imitate, and become infatuated

with their favorite celebrities, which forms the root for the celebrity endorsement being quite a sought after

advertisement technique.(McCutcheon et.al 2003). Today celebrity endorsement is being seen more and more

as an integral part in an integrated marketing communication strategy. The three main principle factors in the

market today justify the validity of celebrity endorsement as a promotional strategy. The first factor is

increasing opportunity for interactivity between brands and their consumers. The “era of consent” situation

presents today where consumers have more control over the messages they receive. And lastly is the

increasing media fragmentation and commercial communication disorder.(Temperley and Tangen, 2006).

The Root of the Concept in India: In India from late1970’s and early 80’s brands started being

endorsed by the celebrities. One of the first sports endorsements in India was when Farokh Engineer became

the first Indian Crickets to model for Brylcream. The Indian cricket teams now earn roughly Rs. 100 crore

through endorsements. Also Endorsing Late Jalal Agha in Pan parag, Tabassumi the ad of Prestige pressure

cooker, Sunil Gavaska for Dinesh suiting’s, and Kapil Dev to the Palmolive shaving cream are some of the

examples for brand endorsement at the time.

The first brand that comes to the Indian mind is that of Lux, the Beauty Bar of the Stars HLL has

used Hindi film stars to endorse their beauty soap. Since its inception, Lux the brand has grown positioning

itself through celebrity endorsement. Also Lux tried to change its positioning from being a woman’s soap to

being soap for men as well by introducing Sharukh khan as one of the ambassador in the year 2010.

However, the positioning is not at most success.LUX since the fifties.

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Theory and practice proves that the use of superstars in advertising generates lot of publicity and

attention. (Ohanian, 1991). 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. Advertising that uses celebrity endorsers enjoys high popularity among brand managers

(Amos et al., 2008). The billions of dollars spent on celebrity endorsement contracts show that celebrities

from Sports, Film Industry, and Models play an important role in the advertising industry. (DaneShvary and

Schwer, 2000, Kambtsis et al.2002).

Known products and names are sold more than unknown ones.Each year, companies spend vast

amounts of money to convince celebrities to endorse their products and brands (Jaiprakash, 2008; Klaus and

Bailey, 2008; Lee and Thorson, 2008); for instance, the below Table-1 show celebrity brand endorsement

2012.

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Table-1:

Celebrity Endorsements In 2012

Celebrity Multi-Brand Endorsement Estimated Amount

Kareena Kapoor Sony Vaio, Alpenliebe Eclairs, Head & Shoulders, Philips Hair Curlers, AirTel, Lavie, Boro Plus, Lux, Pepsi, Sangini Diamonds, Limca & Mahindra Rodeo! Phew!

Rs 1-1.5 crore per day

Saina Nehwal Top Ramen Rs 40 crore 3-year deal

Salman Khan Tiger biscuits, Thumbs Up, Yatra.com (in which he is also a stake holder), Ranbaxy’s Revital & Relaxo, Hawaii chappals

Rs. 1.5-7 crore

Mahendra Singh

Dhoni

TVS Bike, Pepsi ad with Ranbir, McDowell's No 1 Soda, Airtel - Keep Believing & Maxx Mobile.

100-crore deal signed in 2010.

Anoushka

Sharma

TVS Scooty, Sofy sanitary napkins, Reliance Communications Ltd, Elle 18 Cosmetics, Nivea, Canon & Geetanjali Jewellery.

Rs 80 lakhs

Priyanka Chopra Nikon Cool Pix, Dabur Amla Hail Oil, Dabur Vatika, Blender's Pride Fashion Tour 2012, Asmi & Garnier Cream.

Rs 3-3.5 crore per deal

Shahrukh Khan Mahagun, Pepsodent, Navratan oil, Tag Heuer & Lux.

Rs 5-7 crore per brand / Rs.

1.5-2 crores per day

Katrina Kaif

Relaxo Hawaii Chappals, Nakshetra Diamonds, Titan Raga Watches, Yardley & Lux.

Rs 1- 1.25 crore per day

Ranbir Kapoor Pepsi, Lenovo, Tata Docomo and Nissan Micro.

Rs 1.5-2 crores per day

Amitabh

BachchanLuxor Nano Clean, Just Dial, Kalyan Jewellers and Maggie Noodles.

Rs 1-1.5 crores

Deepika

PadukoneNescafe, BSNL , Yamaha Scooty Rs 6-crore deal with Garnier

Source: www.buzzintown.com

Literature Review:

Indian advertisement has been placing a vital amount of importance on both recall and persuasion as

brand differentiating messages. (Dixit,2005). According to (Friedman and Friedman ,1979), a "celebrity

endorser is an individual who is known by the public for his or her achievements in areas other than that of

the product class endorsed”. Various advertising styles are used by advertisers to influence consumer brand

choice behavior and among these different available choices one very popular choice is Celebrity

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Endorsements. (Alsmadi, 2006). “Traditional celebrity endorsements are as well established as the concept

of celebrity itself.”(Anonymous, 2007). According to (Tom, 1992) results endorsers were more effective in

creating a link to the product than celebrity endorsers based on the classical conditioning paradigm.

In the light of company news and academic writing it is safe to argue that celebrity endorsers are

more effective than non celebrity endorsers in generating desirable income.(Erdogan, 1999). Marketers

make use of celebrity endorsements as they lead to better information storage in the minds of the consumers

which can be readily retrieved when the purchasing situation dose arise. All these lead to the conclusion that

celebrity endorsements is likely to have a positive effect on product choice behavior.(Goldsmith, Lafferty

and Newell, 2000)

A Celebrity may be asked to present a product or service as a part of character performance rather

than personal testimonial or endorsement.

On the concept and application of celebrity endorsement (Agarwal and kamakura, 1995) cite industry sources

who estimate that approximately 20% of all television commercials feature eminent people..They studied all

endorsement contracts over the period 1980-1992. In their sample 60% of the endorsement deals involve soft

drink companies and athletic shoes manufacturers. They also provide an event study that examines abnormal

stock returns on the day that a company announces the signing of a celebrity for product and endorsement

purpose. Experiments suggest that in certain situations, celebrity endorsement can enhance recall and

consume assessment of the products. (Clark & Horstman, 2003). (Mishra and Beauty, 1990) (Petty et al,

1983) and (Menon et al, 2001) indicate that celebrity endorsements enhance brain recall.

It is believed that using celebrities can also turn out to be an unnecessary risk, unless there appears to

be a very logical relation between the endorser and the product.( Erdogan, 1999).The following Table-2 show

some advantages and disadvantages of celebrity endorsement.

Table-2

Celebrity Endorsement Advantages and Disadvantages

Potential Advantage Potential Hazards

Increased attention Overshadow the brand

Image Polishing Public Controversy

Brand Introduction Image Change Over Exposure

Brand Repositioning Image Change and Loss Of Public

Recognisation

Underpin Global Campaigns Expensive

Source: Erdogan 1999

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Objective of the Study:

The Present study mainly attempts t examines:

To study Impact of celebrities endorsement in creating awareness of the brand to the customers and

To unearth Customers Preference towards celebrity endorsed brands.

Sources of Data:

The present study is based on both primary data and secondary data

Primary data were collected by asking simple questions.

Questions are framed to justify the at most objective of the research.

Secondary data were collected from various books, news papers, magazines, related articles from

journals, related data from internet.

Sample Design:

The present study has followed the convenient sampling method. The study is confined to karimnagar district

only and due to time constrain the following information was collected from 45 respondents which includes

all categories of demographic profile.

Limitations of the Study:

The study is based on a sample of 45 respondents only.

The generalization made in the study is applicable only for karimnagar district, Andhra Pradesh.

The inferences are based on the assumption that the data provided by the respondents is true and

correct.

The findings of the study are based on simple percentage analysis.

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Analysis and Interpretation:

Table-2:

Demographic Profile

Demographic Factor No of

respondents

Percentage

(%)

GENDER

Male 17 37.77

Female 28 62.22

Total 45 100

AGE

Under 18 1 2.22

18-25 14 31.11

26-35 21 46.6

36-50 5 11.11

Abov50 4 8.88

Total 45 100

OCCUPATION

Students 25 55.55

Business Class 12 26.66

House Wives 8 17.77

Total 45 100

EDUCATION

Under Graduate 05 11.11

Graduate 11 24.44

Post Graduate 17 37.77

Professionally Qualified 12 26.66

Total 45 100

Source: Primary data

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Inference:

The above demographic profile of the respondents primarily reveals the category of gender of 37.77%

is male respondents and 62.22% are the female respondents. The age category shows 46.66 are under the age

group of 26-35 the rest indicates the other age groups. Occupation expose 55.55% percent of students and

others are business class and housewives 26.66% and 17.77%.finally the education qualification of the above

respondents are 37.77% of post graduates, 26.66% are professionally qualified, 24.44% and 11.11% are

graduates and under graduates.

Table-3:

Impact of Celebrity Endorsement on Product/Brand

S.No Response No of respondentsPercentage of

respondents (%)

1 Yes 37 82.2

2 No 08 17.7

Total 45 100

Chart: 1

82.22%

17.77%

Yes No


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Interpretation:

There are 37 respondents who accepts that celebrity endorsement have impact on creating awareness

of the product & brand out of which 8 respondents disagree with the above statement.

Conclusion:

It is observed that celebrity endorsement reflect on the Product/Brand.

Table-4:

Celebrity Endorsement in Creating Brand Awareness


respondents (%)

1 Yes 31 68.88

2 No 11 24.44

3 Can’t say 3 6.66

Total 45 100

Chart no: 2

68.88%

24.44%

6.66%

YesNoCan't say


Interpretation:

Respondents of about 68.88% accept that celebrity endorsement create more brand awareness to the

product/brand where as 24.44% disagree and that they do not have any effect of celebrity in choosing their

brand and 6.66% revels that they can’t say anything about it.

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Conclusion:

Most of the respondents accept that it is essential to endorse a celebrity in creating brand awareness.

Table-5:

Customer Perception towards celebrity Endorsement


respondents (%)

1 Indicate quality of the brand 18 40

2 Creates awareness of the

brand to the new customers

17 37.77

3 Both 10 22.22

Total 45 100

Chart no: 3

40.00%

37.77%

22.22%Indicates QualityAwareness to new customersBoth


Interpretation:

Respondents of about 40% accept that endorsing of a celebrity for a product or brand indicates quality

of a brand/Product.37.77% belive that celebrity endorsement create awarenes of the brand to the new or

existing customers.Only few of the respondents say that Celebrity Endorsement indicates quality of the brand

as well as create awareness of the brand to the new or existing brand is accepted by 22.22% .

Conclusion:

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The perception of customers towards celebrity endorsement indicates quality of the brand and the

respondents also accept that it creates awareness of the brand to the new and existing customers some of the

respondents agree for both.

Table-6:

Preference/Demand to brand/Product in view with celebrity endorsed

S.No ResponseNo of

respondents

Percentage of

respondents (%)

1 More 20 44.44

2 Average 15 33.33

3 Less 8 17.77

4 no 2 4.44

Total 45 100

More Average Less No0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%44.44%

33.33%

17.77%

4.44%


Interpretation:

Above data explain that Product/Brand which are endorsed by the celebrities will be given more

preference and have more demand in the market when they are purchasing 44.44% and 33.33%.Customers

believe that they review the celebs when they purchase their product or brand. Only few customers say that

they give less preference /demand or no preference/demand to the brands or products which are endorsed by

the celebrities.

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Conclusion:

Product/brand has more demand and given more preference when they are endorsed by the

celebrities.

Conclusion:

The research study concludes that celebrity endorsement create awareness to the customers about the

product or brand. It is observed that customer prefer and believe in those products which are endorsed by the

celebrities as well the product endorsement by the eminent personalities indicates quality of the product to

the existing as well as to the new customers which in turn creates demand to the product in market. Finally,

Beauty and popularity in the society creates money to themselves and to marketers.

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Websites:

www.buzzintown.com.

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