Endorser Actions, Brand Value and the Ousting of Salman Khan

Every brand today wishes to forge a connection with its consumers. A strong connection leads to higher brand recall, and there is no simpler way to do this than by hiring a celebrity Brand Ambassador. Celebrities, by virtue of their public personalities, have distinct imagery and associations pre-formed in the consumer mind; and when consumers see these celebrities endorsing a certain brand, they form mental connections between the attributes of the star and the attributes of the brand. MS Dhoni for Lava mobiles, Ranveer Singh for Ciaz, Akshay Kumar for Honda, Shahrukh Khan for Jio are all examples of Brand Ambassadors.

Another good example is that of Joy, a brand of skincare products, which has recently hired the television comedian Bharti Singh as its celebrity endorser. Joy being a relatively new brand wishes to position itself along the lines of ‘beautiful by nature’, i.e. as a brand that relates to internal beauty and not the external image. The decision to hire Bharti breaks general convention in the skincare segment as she, unlike endorsers of other similar brands, is clearly overweight. But her strong and confident persona, transfers those qualities to the imagery of Joy in the consumer mind. This transfer of attributes from the celebrity to the brand is the reason why paying such high fees to these stars is justified. Any other lesser known face would not have evoked these pre-developed associations that a famous star can, and hence would be less effective.

Image result for salman khan removed from thums up endorsement

The connect that a consumer feels with a celebrity is dependent on something called the self-concept, the perception that the consumer has of himself. A consumer or a fan will identify with the celebrity when he perceives his own self – his values, attitudes, behaviour -to be similar to those of the star. Celebrities appeal to the self-actualization goals of aconsumer. Based on his self-concept, a consumer places the celebrity into either an aspirational group (he wants to be like the star) or an associative group (he believes his qualities are already similar to the star). Virat Kohli, Rafael Nadal, Ranbir Kapoor are all role models for the young men in our country. Similarly, Saina Nehwal, Kareena Kapoor, Alia Bhatt are role models for the women.

Associated with the self-concept are the feelings of pride and shame. Pride is defined as a positive emotion that is experienced following a positive evaluation of one’s competence or effort in achieving a goal. Shame is be defined as a painful feeling of guilt, wrongness,inability or failure. These two emotions can be visualised as forming a continuum. Just as at home, when a child scores good marks, the family experiences pride and vice versa, similarly if a brand endorser that we adore does a good deed, we would experience pride.Image result for tiger woods accenture

 

This pride enables us to feel good about the brand as well. For instance, Akshay Kumarvoiced his ‘nation-first’ opinion against actors from Pakistan, lending nationalistic associations to the brands he endorses, notably to Honda. His opinions enhanced the consumer’s pride in use of Honda vehicles. However, the opposite is also true, and consumers may experience shame on being related to the brand ambassador.The brand manager’s task, therefore, does not just end on hiring an appropriate celebrity.

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Companies must continuously monitor the activities and statements of its endorsers to minimize incidents that cause shame. As the celebrity loses his credibility, the brand risks losing the trust that consumers place in it as well. The incredible India campaign faced this issue with Aamir Khan, Accenture with Tiger Woods, and very recently Thums up with Salman Khan. They were all promptly fired, and wisely so.

Contributed by Harleen Kaur (my doctoral student at FMS)

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Brand Endorsement, Influence, Amrapali, Dhoni and Misrepresentation

The Amrapali Sapphire and Indian cricket team captain MS Dhoni’s role as its brand ambassador has brought to the fore the issue of brand endorser and consumer attitude manipulation. In India use of celebrities is very common.  All kinds of celebrities are used by brands. If there  Alok Nath  who endorses Link locks on the one hand there is SRK who promotes Fair and Handsome.  For instance, Aamir Khan stood for brands including Titan, Coke, Snapdeal and Tata Sky, Amitabh’s kitty included brands such as Cadbury, Pepsi, Parker, Reid and Taylor, Dabur Honey and Navratana Oil; Katrina Kaif’s portfolio includes Slice, Veet, Pentene, Panasonic and L’Oreal.  One of the current high profile campaigns is that of Tata Motors in which football icon Lionel Messy is employed as global brand ambassador.

Technically, celebrities are only one of the various types of people who could be present in ads like created characters which may be humanized like Amul girl/ ZooZoos Vodafone or real people representative of a particular group like Surf’s Lalitaji and Nirma’s Jaya and Shushma (commoner)   or outdoorsy in Woodland or fashion inclined in Mango or shape conscious in K Special or expert in Lux shampoo ad or doctor in Colgate.

On theoretical note celebrities and brand ambassadors are different in terms of their expected role and contribution to the brand. The celebrity contributes to a brand by simply appearing in its ads (physical presence). For instance, Thums up used different celebrities including Akshay Kumar and Salman Khan and same was done by Pepsi which included SRK, Saif, Amitabh, Ranbir , Virat Kohli and Dhoni. The brand ambassador on the other hand plays a much serious role by becoming animated face of the brand in all its communication. Brand ambassador tangibilizes the invisible values and culture. He or she is expected to make deeper transformation in the way brand is perceived and felt by the audience. The value congruence between what an endorser epitomizes and company / brand values are essential.  For instance, Tag Heuer’s core value ‘don’t crack under pressure’ went well with SRK. The current intent of Tata Motors to portray itself as makers of great cars is done by Lionel Messy.

The question arises why companies pay hefty fees to get these celebrities or presenters to be present in their brand communications. Their value stems from the contribution that they make. Imagine the consumer effects that an ad would have with or without a presenter. To put simply, a known presenter can contribute to a brand’s success by lending awareness at the base level (imagine awareness of Navratna oil shot through the roof due to presence of Amitabh Bachchan in its ads).  Much deeper impact is made when the attitude toward the endorser is transferred to the advertised brand. The presenters in ads can predispose or prompt audience to view, think and feel a brand in a particular way. They may create a bias by influencing the consumer attitude, especially by creating a subtle jump over critical thinking to feelings. Presence of a liked source in ads may have retarding effect on thinking. So ads that make use of liked and loved characters activate emotional side of brain and thereby hasten judgments.

Attention effect:  the customers these days are bombarded with messages causing them to experience information overload. One common strategy for them is to screen out a large number of incoming messages. In this regard, celebrities provide an easy route to brands to capture customer attention. It is based on the understanding that consumers pay attention to what they like or interested in.

Awareness effect: typically celebrities enjoy high recognition and recall because of their popularity in their domain of work.  An ad typically ties together to independent stimuli (brand and celebrity like Pavlov’s bone and bell) and with repetition ceases their independence. As a result the awareness is transferred to the brand. It is an easy way to make an initial cut into an otherwise resistant mind.

Amplification effect: consider an ad which simply announces ‘Amrapali Sapphire 2/3/4 BHK flats Sector -45 Noida’ and its effect on consumer and when the same information is provided along with the presence of MS Doni. The two stimuli would not separately get processed in different hemispheres independently in isolation. Rather both will amalgamate into message which may have multiplicative or exponential effect. Now the address is not simply is an address rather it is multiplied with everything MS Dhoni stands for.  The cricket captain brings his traits like achievement, sincerity, dedication, leadership, endurance, success and commitment gets them to multiply with simple matter of fact ‘address’. This may have predisposing effect on attitude of even high involvement customers (due to risk associated).  In similar way when an ad proclaims ‘pure honey’ in the presence of Amitabh Bachchan, a huge difference is accomplished between what is said and what is actually received by customers. Here combining one with one creates eleven not two.

The message amplification also is achieved when a brand uses real or lookalike experts. For instance Castrol ads use a mechanic lookalike to promote lube superiority. Colgate for long used man in doctor’s uniform to amplify the brand’s superiority.

Differentiation effect: commodities suffer from lack of differentiation due product similarity. For instance, salt and battery cells may be identical in their construction. In such cases, the presenter or celebrity used in brand’s communication may become the only differentiating attribute. For instance, in honey market, both Dabur and Patanjali claim their honey to be pure and natural. In such a situation, the differentiating attribute between two brands is Amitabh and Baba Ramdev.

Why do endorsers command high prices? What sits at the core of their price is their ability to influence awareness, attitude and behavior. Their power relies on a complex and subtle process by which inference is drawn by consumers themselves. Advertisers ensure that facts are not misrepresented by knowing or unknowingly. It is this behavior of drawing conclusions (we didn’t say that you concluded yourself) insulates brands from being legally charged. Consider, all the surrogate ads like Carlsberg (glasses) or Bacardi (music) technically do not promote liquor but liquor gets promoted, glamorized and desired. In this context, the communication industry cannot be regulated by law entirely. The only option is conscience. But conscience often gets defeated by wealth.

Brand architecture, Endorsement, Shadow and Sanjay Dutt, Kumar Gaurav and SRK

Lets run a brief check: how do you view Sanjay Dutt, Kumar Gaurav and SRK from brand architecture perspective?

Well, it is not difficult for anybody to know that Sanjay is son of great actor Sunil Dutt. It takes a little digging to find out that Kumar Gaurav is son of legendary actor Rajendra Kumar. But SRK does not enjoy benefit of belonging to an established Bollywood family. How branding strategy affect consumer/audience response? Success at the market end requires credibility, knowledge, consistency, heritage and above all trust. And if someone can stand behind and backup, the job is greatly facilitated. In Sanjay’s case, Dutt name endorses him directly. SRK did not have any endorser/supporter/advocate in  Bollywood. However, in case of Kumar Gaurav, the support become indirect/shadow (his name was new yet people eventually discovered his lineage which came in handy to drive audience behavior.

Consider the following cases and discover the branding strategy:

  • Anchor by Panasonic or Reveal by Calvin Klein or Courtyard by Marriott
  • Kinley / Cheverolet/K-Special/ Maggi/ Cinthol/ Sunfeast
  • Pulsar watch
  • Tudor

In all of the above cases there are two brands (endorser/supporter and endorsed/supported) but as we move down the endorser brand becomes increasingly invisible. The decision about the degree of visibility or connection that an endorsed brand would have is a critical decision. It involves a trade- off between differentiation/independence on the one hand and dependence/linkage on the other. The issue that must be sorted out is how well the new brand is equipped to stand on its own without the support of the master/established brand. And how different or unrelated is the category of the new brand.

  1. In the first case category (Anchor, Reveal, Courtyard) the organization or established by directly endorses the new brand. When a consumer is confronted with these brands alone the response is likely to be uncertainty and doubt. But the moment ‘by’ is coupled with an established name is added the attitude is transformed in a big way. The established brand facilitates the new brand in driving consumer behavior. Simultaneously it also avoids confusion for the consumers of main brand by telling them that if you are Marriott customers the new brand is not Marriott (in terms of service/price/luxury level) but something other than Marriott. The usage of new (rather than one name) is necessitated by the need to convey difference in product or market domain of the new offering (but proximate).

2. In the second group of cases (Kinley, K-Special, Chevrolet), the connection between the new brand and corporate/established brand is made less prominent. This is done when a marketer wants the new brand to convey its own identity for a customer (segmentation) and competitive reasons (positioning). This is often the case when a firm begins to operate in multiple product categories and segments. We have discovered on our own that Kinley is Coca Cola’s product, K-Special is Kellogg’s and Chevrolet is GM’s line & Sunfeast is ITC) by looking at their communication or product packages. By making its link or connection less obvious, the endorsement is make but in a token manner.

3. In the last two cases, Pulsar and Tudor the connection with the endorser brand is made even more indirect and less evident. Can you name the companies linked with these watches? Probably not, it is because company intentionally does not want you to know. But the customers who own these watches do they know of the brand behind these brands? Answer would be yes. Pulsar is a brand of Seiko (a web search of website would reveal that) and Tudor is a brand of Rolex. But in this case Tudor website does not create any link with Rolex but in a strange fashion the pop up Rolex appears on alongside the listed websites.

The connection here is even more indirect and in shadows. Lexus brand was created by using this strategy (Toyota endorsed Lexus in an invisible ghostly manner). When do you resort to this strategy? Here the brand is made is assigned its own individuality/identity and linking it with the established name is likely to be counterproductive. Imagine the prestige damage Rolex would suffer its brand participates in lower price point or similarly the rub off Toyota brand would have on Lexus’s luxury customers. Discovery of endorser in these cases creates eureka feelings. The idea is not to let the endorsed brand to contaminate the established brand.

So SRK in the absence of endorser had to prove his mettle but in other cases the mettle was assumed. People laid their faith on Abhishek again and again for the endorsement advantage he enjoyed for a long time.