Tuesday, May 11, 2010

Are Brand ambassadors necessary?



Today there has been much debate whether celebrities are necessary to promote a brand.the entire debates surrounds around whether it really contributes to the brand building process or whether it is just another lazy tool to make the brand more visible in the minds of the consumers.consumers perceive a brand as having superior quality when it is endorsed by a credible source. On the other hand, the over popularity of the celebrity sometimes overshadows the brand.

Next is the most interesting one.
Multiple product endorsement----

If the celebrity is involved in multiple endorsements, it tends to create confusion among consumers and hence negatively affects the perception of the advertisement and the brand. Hence, to say clearly whether the practice of celebrity endorsement impacts positively or negatively to the brand still remains a debate.
And also if the celebrity endorses in the same segment category multiple times ,the situations become much worse,
( MS dhoni ,the Indian captain endorsed Aircel, Micromax in the mobile segment category at the same time(IPL season 3 for Micromax & previously for Aircel). Genelia d souza endorses Garnier,Virgin mobiles,Margo,Fanta et al.Superstar Amitabh Bachchan endorses multiple brands like Pepsi, Mirinda, ICICI, BPL, Parker pens, Nerolac, Dabur, Reid & Taylor, Maruti Versa, Hajmola, Tide, Cadbury and a few social messages.


In the above examples, are the brand ambassadors really endorses the product? Are they money-minded? Are they not true to what they are doing? Are the marketers or the company (fools) to give hefty money to them?
the answer will be" YES"

It has worked in some cases, while in some cases it has not.
Cost spent-
The budget or cost is an important factor for celebrity endorsement21. Depending on the status of the celebrity, remuneration could run into millions of rupees for several years or may also include a profit sharing plan. Imagine An AD featuring Aishwarya Rai & Abhishek bachan ? How much will it cost?

A Perfect Lesson

HUL never had a brand ambassador to endorse its products. only NOT-SO-POPULAR person appear and endorse the product( Lifebuoy, Wheel, Dettol, Close Up, Fevicol et al)
Did Apple have any brand ambassadors? Certainly not. And they wont.
Steve Jobs is a great marketer. he starts with customers in the mind. he designs products which makes life easier for them.

Positive Impacts
Approval of a brand by a star fosters a sense of trust for that brand among the target audience. This is especially true in case of new product
The re-entry of Cadbury---
cadbury was once protested by millions of people in the world due to its Nickel presence. the company did some aggressive marketing strategies to come out of the dark. they apponinted Amitabh bacchan as brand ambassador and succeeded in it.

The question of the hour is whether brand ambassadors are required. the answer is simple . Marketers have to think whether to follow the footsteps of steve jobs,HUL or the failed Micromax. Before investing lots of money in selecting& paying money to celebrities, think of customers.what will make their lives better? what tools can we create to make their lives better?

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