Celebrity endorsements are on the rise, and despite the clutter, marketers say successful fits between brand and celeb give them bang for the buck.
Two decades ago, the astute woman-next-door Lalitaji may have been successful in making Surf a household name in the detergent category, but today, most brands turn to celebrity brand ambassadors. Even in a cluttered market, where a single celebrity endorses multiple brands, marketers can bank on celeb power to make an actual difference to the fate of their brands. Celebs not only influence brand image with their personality traits and often become an intrinsic part of the aura of the brand but they can also drive sales.
That India is film and cricket-crazy adds to the importance of the celeb quotient for marketers, who increasingly rely on the combination of a good product, good communication and good brand ambassador to get consumers to connect to their brand.
ICONS AND THE NUMBER GAME
If the brand ambassador is a celebrity, chances of an impact on sales are higher, as in the case of Lenovo. The brand’s purchase consideration scores have increased, according to internal surveys, after getting youth icon Ranbir Kapoor on board. The brand has jumped three ranks in consideration scores. “There is the metro part of India and the hinterland beyond the Top 8 cities. We were No. 3 in Top 8 cities; now we have become No. 2, that too a very close No. 2 with the market leader. The bigger action is in the rest of the market, where there is immense growth for personal computers because of first-time buyers. That is our aim and our strategy behind appointing a brand ambassador. Most of the investment this year has happened in the smaller cities, where we have jumped three ranks from No. 6 to No. 3 in a very short span of time. We launched our campaign in May- June and it has already given us a great jump,” says Shailendra Katyal, Director Marketing, Lenovo India.
This sentiment is echoed by the custodians of brand Sony Vaio. Tadato Kimura, General Manager, Marketing, Sony India, says, “Being one of the most widely-followed youth icons, Kareena Kapoor matches the level of energy, vibrance, passion and fun associated with Sony Vaio, and thereby elevates the aspirational value of the brand. Sony has a very favourable record of Kareena-led Vaio campaigns. Vaio sales doubled during the Vaio X ‘Size Zero’ campaign, Vaio E ‘Go Vivid’ campaign and ‘More Colour. More Style’ campaign which were launched in Nov-Dec 2009, July-Aug 2010 and July-Oct 2011 respectively. This is clear indication that the association with Kareena is a beneficial one. Every time our Vaio campaigns went on-air, we witnessed double sales.”
WILL AN ENDORSEMENT BE A HIT OR A MISS?
THE BUSINESS OF BRAND AMBASSADORS
THE BOLLY-CRICKET CONNECT
At least 80% of whatever is consumed in India is celebrity-driven, and 80% of the media we consume is film-driven. So it helps to get a known name from the field to endorse a brand. Bollywood and cricket are also quite naturally the largest source of brand ambassadors. “It has become a nobrainer for media agencies that if they want to make a client’s product popular, they need a celebrity brand ambassador. There are genuine products in the market, but without a celebrity, it takes longer for them to get recognized. An actor such as Amitabh Bachchan or Shah Rukh Khan, or a sportsperson such as Olympic hero Sushil Kumar, endorsing a good product will entice the consumer to try it for the first time,” says Yusuf Shaikh, Head, Distribution & IPR, Percept Pictures.
H S Goindi, Head, Marketing, TVS Motor Company, which has associated with Virat Kohli, M S Dhoni and now Anushka Sharma, is a firm believer in celebs endorsing the brand. “In today’s competitive marketing environment, a brand ambassador plays an important role in business as he or she adds major value, especially in positioning the brand image, in gaining the confidence of prospective customers and retaining the loyalty of existing patrons. A brand ambassador can speak directly to the target audience, which will create brand awareness and subsequently take the brand a long way. He or she transcends all aspects of the brand and influences the customer’s psychological factors such as motivation, perception, learning, beliefs and attitude,” Goindi observes.
It is no surprise then that even television entertainment these days is centred around Bollywood celebrities, be it Madhuri Dixit swinging the success and TRPs of Jhalak Dikhla Ja or Amitabh Bachchan carrying Kaun Banega Crorepati on his shoulders.
DESPITE CLUTTER, THERE’S BANG FOR THE BUCK
With many brands, many celebrities and scores of ads, the market is a busy place. Within seconds of switching on television, Priyanka Chopra calls out ‘Let’s play Holi this Diwali’ showing off colourful accessories of her Nokia Lumia, while Anushka Sharma is busy clicking for Canon in the ‘What makes us click’ ad. They are joined by Ranbir Kapoor in the latest Lenovo ‘PC –TV’ campaign even as Hrithik Roshan extols the virtues of Acer laptops. Not to forget a happy and dandruff-free Saif Ali Khan and Kareena Kapoor holding up Head and Shoulders, while Katrina Kaif swears Pantene has given her the lovely locks. Kareena returns shortly to showcase the irresistible charms of Lavie handbags and countless other celebs follow – assailing the consumer’s senses.
In such a clutter, do brand ambassadors, who are paid crores of rupees, deliver bang for the marketer’s buck? Gaurav Rajput, Marketing Director, Aviva India, seems to think they do. “Over the last four years, we have seen that the brand’s association with Sachin Tendulkar has led to an increase in brand awareness from 79% to 91%. As per our brand track scores, the brand consideration for Aviva has also grown by 25% over the last four years. What has also worked in our favour is the distinctive way we have used Tendulkar in our advertising and communication – projecting him as a father and not just a cricketer, as is normally done,” points out Rajput, adding at the same time that the insurance industry is a highly regulated and competitive category and hence one cannot wholly attribute an increase in sales to a celebrity brand ambassador.
“There are many factors. Tendulkar endorsing the Aviva brand does increase credibility and consideration amongst customers, leading to a positive impact on sales. If we look at our figures from 2010-2011 and compare them with 2011-2012, we see that while the private players declined by 18%, we registered a growth of 15% (on Weighted Premium Income basis) in FY 2011-2012. This is despite the market conditions and significant challenges faced by the sector,” explains Rajput .
If utilized well with correct communication tools and messaging, a brand ambassador only adds value to a brand. Over a period of time, he or she builds much-desired brand equity, and acts as an important visual differentiator for the brand. But above everything, brand ambassadors actually influence the consumer and often convert interest into sale. The marketer couldn’t ask for more.
BRANDS BUILT ON BRAND AMBASSADORS
Amid the clutter, some brands have leveraged the presence, Credibility and characteristics of their brand ambassadors To the optimum, making them gel with the brand and Create a winning combination.
KENT WATER PURIFIER AND HEMA MALINI
Hema Malini was the face of the brand and was joined later by her daughters Esha and Ahana. The actor showcased trust and reliability, whereas her daughters added the family’s trust for a brand being passed down through generations, a concept that struck a chord with traditional Indian families as well as the younger lot.
TAJ MAHAL TEA AND USTAD ZAKIR HUSSAIN
Ustad Zakir Hussain symbolizes excellence in the field of music. Him playing the tabla, taking a sip of tea and saying ‘Wah Taj’ became synonymous with the brand. He remained the brand ambassador for Taj Mahal Tea for nearly two decades and built great brand equity before they appointed Saif Ali Khan his successor.
KURKURE AND JUHI CHAWLA
The bubbly and chirpy personality of actor Juhi Chawla has been leveraged to the optimum by the brand. Whether announcing a new flavour or just promoting the snack, Juhi has used her comic timing adeptly and taken brand recall to the next level with her presence.
THUMS UP AND AKSHAY KUMAR
A man among the boys with his daredevil stunts, Akshay Kumar personified the Thums Up tagline ‘Taste the thunder’ with aplomb for nearly eight years. The brand has now brought in its initial brand ambassador, Salman Khan, again.
CUTTING ACROSS CATEGORIES
When it comes to brand ambassadors, every category has a specific trend. For Instance, let us look at the following five categories...
BEAUTY
Within the cluttered beauty products category, having a celebrity is fast becoming a hygiene factor. L’Oreal has Aishwarya Rai Bachchan, Head and Shoulders has Saif Ali Khan and Kareena Kapoor, Pantene has Katrina Kaif and Shilpa Shetty and Lux, positioned as a soap of the film stars, has had actors from Madhubala to Kareena Kapoor to Asin, and so on. Also, Sunsilk has Priyanka Chopra, Fiama di Willis has Deepika Padukone, and the King Khan of brand endorsements is not left behind either, endorsing Emami’s Fair and Handsome for Men. With the exception of Dove, which has adapted the strategy of using experiential marketing and consumer testimonials to reach their target audience, all major players in this category have used the celebrity route to reach their target audience.
AUTOMOBILES
Among the leading players, Nissan and Hyundai are the only brands that have taken the celebrity route. Nissan has youth icon Ranbir Kapoor, and Hyundai started its association with Shah Rukh Khan with Santro and has extended it to Hyundai i10. Volkswagen has chosen the innovation route instead of celebs; and Renault too does not use celebrity power. Sachin Tendulkar does have a ‘goodwill’ association with BMW, but is not their brand ambassador.
PERSONAL COMPUTERS
In this category, having a brand ambassador is fast becoming a norm - be it leading PC maker Lenovo with Ranbir Kapoor, Acer with Hrithik Roshan or Japanese giant Toshiba with Sachin Tendulkar or most visibly Sony Vaio taking aspirations to the next level with Kareena Kapoor. Dell has made a conscious effort not to take the celebrity route.
SOFT DRINKS
Having a celebrity brand ambassador is a norm in this category. Marketers are left with no choice but to have a known face for their brand. Limca with Kareena Kapoor, Mango Slice with Katrina Kaif, Pepsi with Ranbir Kapoor, Coke with a milieu of stars from Aamir Khan to Hrithik Roshan, Thums Up with Akshay Kumar and now Salman Khan and Mahesh Babu. Mountain Dew also created an initial buzz with Salman Khan. The beverages category follows suit, with Deepika Padukone endorsing Nescafe, Saif Ali Khan and Chitrangada Singh replacing Ustad Zakir Hussain for Taj Mahal Tea, and Bru bringing in Priyanka Chopra and Shahid Kapur.
MEN’S INNERWEAR
Interestingly, this is another category which seems incomplete without a celebrity harping its benefits, be it Akshay Kumar with Dollar Club proclaiming ‘Fit hain boss’, Saif saying ‘Bade aaram se’ wearing Amul Macho, or Hrithik Roshan in a uber cool avatar urging men to ‘Live like a Macroman’.
Tadato Kimura
General Manager, Marketing, Sony India
Sony has a very favourable record of Kareena-led Vaio campaigns. Vaio sales doubled during the Vaio X ‘Size Zero’ campaign, Vaio E ‘Go Vivid’ campaign and ‘More Colour. More Style’ campaign which were launched in Nov-Dec 2009, July-Aug 2010 and July-Oct 2011 respectively. This is clear indication that the association with Kareena is a beneficial one. Every time our Vaio campaigns went on-air, we witnessed double sales.”
Gaurav Rajput
Marketing Director, Aviva India
“Over the last four years, we have seen that the brand’s association with Sachin Tendulkar has led to an increase in brand awareness from 79% to 91%. As per our brand track scores, the brand consideration for Aviva has also grown by 25% over the last four years. What has also worked in our favour is the distinctive way we have used Tendulkar in our advertising and communication – projecting him as a father and not just a cricketer
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