Snapdeal: Risks and Rewards of Celebrity Endorsement

            

Details


Case Code : CLMM118
Publication date : 2015
Subject : Marketing Management
Industry : E-commerce marketplace
Organization :Snapdeal
Length : 02 Pages
Teaching Note : Not Available

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The case discusses the backlash faced by the India-based e-commerce company, Snapdeal, in the wake of its brand ambassador, film actor Aamir Khan (Aamir) expressing his concern and despondency over the rising intolerance in India. Outraged by Aamir’s comment, many Indians tagged the comment as blasphemous and demanded that Snapdeal disassociate itself from Aamir Some people also downgraded or deleted the app from their mobile devices. But the whole incident had an unexpected outcome, with a spike in the number of downloads of the Snapdeal app.

Issues:

Understand the association of the brand with its endorsers
Learn about the vulnerability of brand image to the personal views of its endorser


Introduction

In 2015, the Indian e-commerce industry was on a steep growth trajectory. Analysts speculated that it would grow at 35% CAGR, crossing the US$100 billion mark by 2020. Backed by a slew of investors, the e-commerce companies were more focused on aggressive growth and the industry as a whole had not turned profitable till then. The industry was characterized by aggressive pricing and the deep discount model, which resulted in analysts questioning its sustainability. Top e-commerce companies splurged huge amounts on advertising and on signing up renowned celebrities from the Indian film industry to endorse their brands. It was estimated that the 2015 festive season triggered a cash burn of Rs. 20 billion in advertising expenses...

Key words:
Brand endorsement, E-commerce, advertising, brand image, celebrity endorsement





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