The Siyaram Celebrity Endorsement Experience

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Themes: Advertising and Promotion
Period : 1995-2001
Organization : Siyaram Silk Mills Ltd
Pub Date : 2001
Countries : India
Industry : Commodities - Traded Goods

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Case Code : MKTG018
Case Length : 7 Pages
Price: Rs. 200;

The Siyaram Celebrity Endorsement Experience | Case Study

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Table III
Celebrity Selection Criteria

Celebrity availability Fit with the advertising idea
Celebrity physical attractiveness Celebrity-Target audience match
Celebrity credibility Celebrity values
Celebrity prior endorsements Costs of acquiring the celebrity
Whether celebrity is a brand user Celebrity-Product match
Celebrity profession Celebrity controversy risk
Celebrity popularity
Source: www.cjsm.com

In India, celebrity endorsements are believed to be particularly useful as the average consumer reportedly identifies more strongly with celebrities than in other countries. Film stars and sports personalities (especially cricket players) are immensely popular among the masses. This has encouraged the widespread use of celebrities in advertisements over the decades.

However, celebrity endorsements could become a 'double-edged sword' for most companies. A popular star can help immensely in improving brand image and recall. But the same star can cause major problems for the brand if he or she lands in trouble - either in their careers or in their personal lives. Pepsi faced this problem with two of its most popular celebrity endorsers - pop singers Michael Jackson and Madonna. In 1989, right after Pepsi aired the first Madonna commercial, the singer released her sexually explicit and reportedly anti-Christianity music video 'Like A Prayer' on Music Television. The video led to widespread protests against the singer and Pepsi had to pull out the advertisement after airing it just twice. Michael Jackson was signed by Pepsi in 1983 in what was the largest individual sponsorship deal in history. In 1993, Michael Jackson was charged with child abuse. Though the charges were not proved, Pepsi had to pull out of the contract after unprecedented media outrage against the brand's association with the singer.

Another peril associated with celebrity endorsement is the 'vampire effect,' when the celebrity overshadows the brand. Also, whether the celebrity endorsing a brand actually uses the brand or not is an issue of concern. For instance, if a celebrity endorsing Pepsi is seen drinking Coke, it can reflect very badly on the brand being endorsed.

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