How to market fashion & luxury products through celebrities & music bands: endorsement contracts,...
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ialci law of luxury goods & fashion series – 22 July 2014 What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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How brands can protect themselves when celebrities misbehave or breach the terms of their endorsement deals? What behaviour is deemed legitimate or not? Are these misbehaviours of brand ambassadors really impacting the brands?
Transcript of How to market fashion & luxury products through celebrities & music bands: endorsement contracts,...
ialci law of luxury goods & fashion series – 22 July 2014
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Celebrity endorsement: time-tested tradition with advertisers
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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So what’s the big deal?
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Kate Moss’ coke fiend
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Luis Suarez’s biting habit
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Tiger Woods’ womanizing & subsequent messy divorce
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Are luxury & fashion brands really affected by endorsers’ misbehavior?
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Threat of a serious hit on sales volumes!
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Risk especially high in largest luxury-consuming countries
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Other reasons brands may terminate a celebrity endorsement?
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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It does not fit the bill, babe!
Ambassador’s overexposure by constant appearance &
overshadowing of the brand
Lack of coherence between the celebrity’s
personality & the brand’s value & image
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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So what can luxury & fashion brands do to avoid being affected by endorsers’ misbehavior?
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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The winning formula for an endorsement deal
CELEBRITY ENDORSEME
NT
DUE DILIGENCE
CONTRACT TERMS
INSURANCE
ONGOING MONITORING
TERMINATION RIGHTS
PRE-PLANNED “CRISIS
MANAGEMENT” MEDIA
STRATEGY
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Perform due diligence on proposed endorser
•Research whether proposed celebrity has done or said anything in the past that might harm the brand
•Detailed, professional, thorough research
•Request celebrity to disclose all incidents in the past that could affect the endorsement value
•Understand & accept the existing reputation of celebrity
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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The importance of getting the right match
•Choose celebrity endorsers who align with values represented by brand
•Choose celebrity who resonates with 2 audiences:1. Brand’s core demographic (current customers)
2. Brand’s aspirational demographic (target customers)
•Carefully selected celebrity partner + well-structured endorsement deal = massive economic benefits for any company
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Protective & thoughtful contractual terms
ENDORSEMENT CONTRACT
MORALS
CLAUSE
DISCLOSURE
NO DEFAMATION
NO PUBLIC DISREPUTE
NO OFFENCE OF PUBLIC MORALSEXCLUSIVITY CLAUSE
‘REVERSE MORALITY’ CLAUSE
GOOD CORPORATE CITIZEN
SUSPENSION
EXTENDED INJURIES
SUSPENSION BY GOVERNING BODY
‘MORAL CLAUSE’ EVENTS
TERMINATION
MISSED SCHEDULED APPEARANCES
WEARING COMPETITORS’ PRODUCTS
DISPARAGING BRANDCELEBRITY
RETIRES/ABSENTMISBEHAVIOR
CLAW BACK
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Insure yourself!
• Death, disability and disgrace insurance policies
• Emergence of several insurance products to address risks exposures
• “what-if” scenarios
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Ongoing monitoring (offline & online)• Measure the impact of traditional media and digital media • Monitor the press, social medias, blogs for quotes about endorser• Brand damage mitigation measures
Axelle Despiegelaere v L’OrealWhat to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Pre-planned ‘crisis management’ media strategy
• Gain control over how a damaging story is handled
• Establish whether or not the allegations are true
• Decide whether brand stands by the celebrity or terminate the association
Nike v Tiger Woods
Nike v Lance Armstrong
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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Conclusion
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
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ialci law of luxury goods series @ Pullman London St Pancras:
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillageAnnabelle GaubertiFounding [email protected]@Crefovi on Twitter
What to do when celebrities get it all wrong? How brands can protect themselves from ‘damaged reputation’ spillage
