content 3 tiger woods - celebrity in ads
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How to Sell with
Celebrities, (especially Tiger Woods)
How to Sell with
Celebrities, (especially Tiger Woods)
University of NavarraSanjeev Nath
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One approving nod from a famous face
can translate into millions in brand
sales.
www.etstrategicmarketing.com
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What do they Advertise?What do they Advertise?
David Beckham
Vodaphone, Pepsi, Real Madrid
Annika Sorenstam
Calloway Golf, Mercedes Benz
Michael Jordan
Nike, Gatorade, Hanes
Tiger Woods
Buick, EA, Nike
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Why do Stars Make Sense?Why do Stars Make Sense?
What do you think?
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Why do Stars Make Sense?Why do Stars Make Sense?
Establishes credibility for target audience
Creates a sense of trust
Great for new products, especially from an
established company
Attracts attention
Breaks through hundreds of advertisements
making the brand more easily visable
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Why do Stars Make Sense?Why do Stars Make Sense?
Associative Benefit
If the celebrity uses the product and improves, so
will the consumer
Psychographic Benefit Since stars are loved, the feeling toward them
may translate to the product
Imitating the favorite sports or movie star I am Tiger Woods.
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Why do Stars Make Sense?Why do Stars Make Sense?
Demographic Connect
Reaches a specific target audience based on
Age, gender, wealth, geography
Mass Appeal
Universal, able to reach more demographic
audiences
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Critics Against Celebrity AdsCritics Against Celebrity Ads
Why do you think celebrities are sometimes
a bad idea?
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Critics Against Celebrity AdsCritics Against Celebrity Ads
Brands need to have an identity
The product must stand for something, and the
celebrity should sell what the product stands for
I use this product, and so should you, doesnot work
Customers are now receiving more information
from a variety of sources: Internet, consumer awareness groups,
competitors
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Why Celebrity Ads FailWhy Celebrity Ads Fail
Improper Positioning
Relying on the celebrity name only does not
work:
Just because I use it, everyone should. No matterwhat the product is.
Brand Celebrity Disconnect
The celebrity does not match the product
E.g. Britney Spears for a Toyota family car
Soluna Vios.
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Why Celebrity Ads FailWhy Celebrity Ads Fail
Clutter Flutter
Too many celebrities doing advertisements
reduces the advantage of this technique
The same celebrity advertises many products
Dissatisfaction with the Product Quality
Quality is more important than style
No celebrity can sell a flat soccer ball
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Why Celebrity Ads FailWhy Celebrity Ads Fail
Confusion Skepticism
Remembering what the celebrity is advertising
Celebrity is so funny/interesting, the product is lost
Skeptical Questions: Is it possible that the celebrity was helped this
much by the product?
How much did the company pay the person tojoin?
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Risks with CelebritiesRisks with Celebrities
Celebrity Mistakes
Trouble with the law/drugs, scandals
E.g. Magic Johnson HIV issue
Company Reaction to mistakes
Continuing w/celebrity may affect the image
(Guilty by association)
Finding a new celebrity is very expensive Company may already be defined by
celebrity
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Hedging the RiskHedging the Risk
Look for perfect criminal and personal
record
Try to use more than one celebrity
Pepsi: Several Cricket, Basketball, and Film
stars
Avoid the Force-Fit
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Avoiding the Force FitAvoiding the Force Fit
Choose the celebrity based on the product
Never choose the celebrity and design the
message around them
The celebrity is not the ad, rather the means ofcommunicating a specific message
Add a celebrity after developing identity
Avoid using advertising to create the identity Protects against celebrity failures
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So Why a Tiger?So Why a Tiger?
Why is Tiger Woods a
marketers dream?
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So Why a Tiger?So Why a Tiger?
Many believe that Tiger
Woods is a Marketers
Dream
Lets look at his strongrelationships with the
products/companies that
he sponsors. We willfocus mainly on Nike
Golf
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Tiger plays golf...Tiger plays golf...
Golf
Number 1 Player in the
world for many years
Recognized as one of thebest players in history
Well respected by his
competitors
Player of the Year Title is
chosen by the players
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Tiger works with good people...Tiger works with good people...
Companies
Contain own strong identities:
Buick, EA, Nike
Nike: More than one celebrity If he fails, the company may not
Tigers association with one company helps sell
products for other companies (association)
E.g. Wears a Nike hat in other commercials
Companies are all associated with Golf
Buick Classic Golf Tournament
EA Sports Golf Game
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Tigers Product MixTigers Product Mix
Age 5 Age 95Age 45
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Tiger hits the rich and poor...Tiger hits the rich and poor...
Good two parent family Father African American, Mother is from Thailand
Family was not wealthy
Beautiful Wife Model from Swedan
Good looking, very smart
Attended Stanford, Writers often comment about his intellect
Name and face are easy to recognize
Clean criminal & personal record
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Tiger is liked by bad golfers...Tiger is liked by bad golfers...
Tiger supports a high quality product
Poor golfers (golfers starting out)
Will try anything to improve their game
Do not know what brand to choose between 30
Became interested in golf because of Tiger
Woods
Tiger Woods products are stylish May own the Tiger Woods video game
May want to be like Tiger.
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Tiger is liked by good golfers...Tiger is liked by good golfers...
Tiger supports a high quality product
Strong golfers (great players)
Often look for a new edge
May own a Buick or other Tiger sponsored
products
Feel of a champion (emotional connect)
Tigers clubs and ball are customized but Not everyone knows this fact
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Everyone likes our Tiger...Everyone likes our Tiger...
Low Wealth
High Wealth
Poor Golfers
Strong Golfers
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Nike Golf Ball Market ShareNike Golf Ball Market Share
How much ($) is Tiger worth?
Assume
1 = $1.30
.77 =$1.00
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Nike Golf Ball Market ShareNike Golf Ball Market Share
Nike Golf Ball Market Share Percentages
6.3
9.5
00
2
4
6
8
10
Market Share
Market Share 0 6.3 9.5
1999 2001 2003
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Nike Golf Ball Market ShareNike Golf Ball Market Share
Golf balls contain the 2nd most lucractive
industry margins ($500 million annually)
Since Tiger joined, golf balls have earned
Nike $72 million GM on a $100 million
contract
Note: Tiger sells otherNike products
besides golf balls
Assumption: 60% Gross Margin 6% Nike Market Share
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Conclusion: Its about...Conclusion: Its about...
Celebrities can communicate, but not save a
product!
Tiger is a fit for his products, better than
anyone else out there today.
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Major SourcesMajor Sources
www.estrategicmarketing.com
www.forbes.com
www.money.cnn.com
www.espn.com
www.indiantelevision.com