IMPACT OF CELEBRITY

ENDORSERMENT ON THE BOTTOM

LINE OF THE COMPANY
Dharti Gandhi
Priyanka Modi
INTRODUCTION

 Advertising in India, started with hawkers.

 
 Then Indian advertising got converted into a
strategic tool.
 
 Celebrity endorsement – tried to benefit
from emotional attachment of the fans.
 MEANING OF CELEBRITY

 Celebrities are people who enjoy specific

public recognition by a large number of
certain groups of people. They have some
characteristic attributes like
attractiveness, extraordinary lifestyle or
special skills that are not commonly
observed. Thus, it can be said that within a
society, Celebrities generally differ from
the common people and enjoy a high
degree of public awareness.
THREE STAGE PROCESS
 
 Endorsement: meaning from Celebrity to the
brand
 Consumption: from the brand to the consumer
 Culture : formation of Celebrity image
DIFFERENT TYPES OF
CELEBRITY
 Actors (e.g., Amitabh Bachchan, Shahrukh Khan,
Aishwarya Rai, Preity Zinta,and Aamir Khan ).
 Models (e.g., Malaika Arora, Milind Soman, Naomi
Campbell, , etc), 
 Television Personalities (Hussain, Smriti Irani)
 Sports figures (e.g., Sachin Tendulkar, Sania Mirza,
Tiger Woods, etc)
 
 Pop-stars (e.g., Madonna, Shakira) 
 Businessmen (e.g., Vijay Mallya, Bill Gates)
 Politicians. (e.g., Atal Bihari Vajpayee , Sonia
Gandhi)
PROCESS OF CELEBRITY
ENDORSEMENT
 It is more of meaning translation & meaning
application 
 
  
MEANING OF ENDORSEMENT
PROCESS
 McCracken, the author to The Meaning
Transfer Model, has suggested that, “The
effectiveness of the endorser depends, in
part, upon the meaning he or she brings to
the endorsement process.”
SELECTION OF CELEBRITY
 
 The selection is in fact a collaboration, from
which both the company and the Celebrity
gains.
 There are various scientific ways in which
the right Celebrity is selected.
 TEARS MODEL  

Trustworthiness: For example - Legendary actor Amitabh Bachchan who is an icon of trust; promoting
ICICI Bank.
  
Expertise: For example - Golfer Tiger Woods for a sports brand.
 
Attractiveness: For example - Tennis player Anna Kournikova who earns 10 Million
dollars per year in just endorsement.
  
Respect: For example - Former Miss World Aishawarya Rai and the Eye donation
campaign.
 
Similarity: For example - a child artist promoting a chocolate brand
 
NO TEARS MODEL
 Celebrity & audience match up.
 
 Celebrity & brand match up.
 
 Celebrity credibility.
 
 Celebrity attractiveness.
 
 Cost consideration
 DISADVANTAGES OF CELEBRITY
ENDORSEMENT
 Negative publicity - If the celebrity is strongly associated with the
brand then the occurrence of the negative publicity can spill over
the brand.. E.g., Salman Khan lost his endorsement deal with
Thumbs-Up after his infamous incidents like buck-killing and rashdriving.
 Overshadowing - When celebrity endorser is used, the risk of

consumers focusing on the celebrity and not on the brand exists.

 Overexposure - This risk arises when the celebrity chooses to

endorse several different products simultaneously which might

leave the consumers confused. E.g., Sachin Tendulkar endorses
several brands such as MRF, TVS Victor, Pepsi, Fiat, Boost, etc
 Financial risk: hiring a celebrtiy is very expensive for the company

So if the product fails company will have a huge loss.

THE INFLUENCE OF IT ON
CONSUMER BUYING
 Advertisements along with other marketing
efforts generate expectations and feelings in a
customer.
 
 Celebrities create positive feelings towards
brands, connect user to brand and are
perceived by consumers as more entertaining.

 Consumers who are particularly knowledgeable

about a product may be less influenced by a
Celebrity than those with little knowledge.
VOLUME GROWTH OF CELEBRITY
ENDORESMENT ON T V
CONCLUSION
 
 
 There is a gradual shift from the traditional approach of showing
Celebrities in advertisement to making them the “spokes-person”
of the brand.
 
 Celebrity endorsements do work in the Indian scenario.
 
 The consumer looks for a variety of aspects from the endorsement
like the credibility and likeability of the endorser.
 
 Multiple endorsements do clutter the minds of the consumer.
 
THANK YOU.