7/31/2019 Celebrity Commerce

1/4

Celebrity Commerce

A Report

Submitted

By

Team B-Square

Deepak Kataria

Kuldeep Kumar

Rakesh Singh

Subrajit Majumdar

Tage Nobin

To

Prof. H.C Chaudhary

Faculty of management studies

Banaras Hindu University

7/31/2019 Celebrity Commerce

2/4

Introduction:

Commerce is the whole system of an economy that constitutes an environment for

business. This is in contrast with business, the value-creating activities of an organization

for profit. The system includes legal, economic, political, social, cultural, and technological

systems that are in operation in any country. Thus, commerce is a system or an environment

that affects the business prospects of an economy or a nation-state. We can also define it as

a second component of business which includes all activities, functions and institutions

involved in transferring goods from producers to consumer.

Who is a Celebrity?

Celebrities are people who relish unambiguous public recognition by a large number

of people. They have some charismatic attributes that are not commonly observed like

attractiveness, extraordinary lifestyle or special skills. Thus, we can say that that within a

society, celebrities usually differ from the common people and enjoy a high notch of public

cognizance.

Celebrity branding is a type ofbranding, or advertising, in which a celebrity becomes

a brand ambassador and uses his or her status in society to promote a product, service or

charity, and sometimes also appears as promotional model. Celebrity branding can take

several different forms, from a celebrity simply appearing in advertisements for a product,service or charity, to a celebrity attending PR events, creating his or her own line of products

or services, and/or using his or her name as a brand. The most popular forms of celebrity

brand lines are for clothing and fragrances. Many singers, models and film stars now have at

least one licensed product or service which bears their name.

More recently, advertisers have begun attempting to quantify and qualify the use

ofcelebrities in their marketing campaigns by evaluating their awareness, appeal, and

relevance to a brand's image and the celebrity's influence on consumer buying behaviour.

Celebrity branding is a global phenomenon and it assumes paramount importance in

countries like India where celebrities are given the status of demi Gods by the masses. There

is a certain correlation between successful celebrity branding and brand endorsements.

The crescendo of celebrities endorsing brands has been steadily increasing over the

past years. Marketers overtly acknowledge the power of celebrities in influencing

consumer-purchasing decisions. It is a ubiquitously accepted fact that celebrity

endorsement can bestow special attributes upon a product that it may have lacked

otherwise. But everything is not hunky-dory; celebrities are after all mere mortals made of

flesh and blood like us. If a celebrity can aggrandize the merits of a brand, he or she can alsoexacerbate the image of a brand.

http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Profit_(economics)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Celebrityhttp://en.wikipedia.org/wiki/Brand_ambassadorhttp://en.wikipedia.org/wiki/Promotional_modelhttp://en.wikipedia.org/wiki/Celebritieshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Celebritieshttp://en.wikipedia.org/wiki/Promotional_modelhttp://en.wikipedia.org/wiki/Brand_ambassadorhttp://en.wikipedia.org/wiki/Celebrityhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Profit_(economics)http://en.wikipedia.org/wiki/Business

7/31/2019 Celebrity Commerce

3/4

Celebrity endorsements are impelled by virtue of the following motives:

Instant Brand Awareness and Recall Celebrity values define, and refresh the brand image Celebrities add new dimensions to the brand image Instant credibility or aspiration PR coverage Lack of ideas Convincing clients

The risks associated with celebrity commerce:

1. Negative Publicity

If the celebrity is strongly associated with the brand then the occurrence of the negative

publicity can spill over the brand. This can harm the trustworthiness and credibility in the

mind of the consumers. E.g., Salman Khan lost his endorsement deal with Thumbs-Up

after his infamous incidents like buck-killing and rash-driving.

2. Overshadowing

When celebrity endorser is used, the risk of consumers focusing on the celebrity and not

on the brand exists.

3. 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, Addidas, Visa, Pepsi, Fiat, Boost, etc.

4. Overuse

Sometimes the company can use many different celebrities to appeal to different market

segment. But multiplicity of endorser might blur the image of the brand and reduce the

effectiveness of the means of persuasion.

5. Extinction

The favorable response obtained by a particular brand may weaken over time if the

brand gets significant exposure without the association of the celebrity. If the celebritycontract is for a considerable period of time, then it can lead to draining out capital

without proper return.

6. Financial Risk

The decision for hiring an expensive endorser may not be always feasible if there is a

poor brand fit. Therefore, for celebrity endorsements to work effectively there are some

fundamental ground rules: -

The brand promise and the brand personality should be clearly articulated.

The communication objectives for the campaign should be frozen.

Focus must be on the synergy between the brand and the celebrity image. Establish explicitly what the celebrity is going to communicate.

7/31/2019 Celebrity Commerce

4/4

Conclusion:

Celebrity commerce can be a goldmine or a minefield for a companys brand building

process. Celebrity commerce has worked well in some consumer segments while failing in

others. Few celebrities have been more successful than those with almost parallel fame. So

the role of celebrity commerce in todays scenario is equivocal and cannot be seen as an

assured strategic tool to win profits, market share, revenues, etc. Consumers can identify

the clear difference between a good script and a good brand idea. For example, while

Pepsis Sachin and Bachchan (kite flying) ad was seen as one with a good script, Coca -Colas

Thanda Matlab was seen as an insightful and strong brand idea. It is imperative to invest in

good ideas; which will bring good returns. Thus, the need of the hour is to focus less on your

Return-on-Investment, and think more in terms of your Return-on-Ideas.