Use of Celebrities in Endorsements Essay

5633 Words Sep 23rd, 2012 23 Pages
RESEARCH includes research articles that focus on the analysis and resolution of managerial and academic issues based on analytical and empirical or case research

Executive
Summary

How Celebrities are Used in
Indian Television Commercials
Varsha Jain, Subhadip Roy, Aarzoo Daswani and Mari Sudha

The usage of celebrities by the Indian advertising agencies has experienced a phenomenal increase in the last five years. Effective communication between the marketer and the consumers is the need of the hour and celebrity endorsement is a strategy that is perceived as making full use of this opportunity. Most of the countries have adopted this strategy as an effective marketing tool and even India is carving out space for
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The trend of celebrity endorsements boomed, however, in the late 1990s. Generally, film actors and cricketers enjoy the status of a celebrity; Indians love talking about their favourite celebrities and look up and aspire to be like them. A report by the Federation of Indian Chambers of Commerce and Industry
(FICCI) stated that 60 per cent of the Indian brands used celebrities in some form in 2008 as compared to 25 per cent in 2001. Celebrity mania is such that even small brands with low marketing budget decide on signing celebrities for endorsement purposes (Shashidhar, 2008).
The phenomenon is consistent with the global trend of celebrity endorsments. The perceived benefit derived is to rise above the ad clutter and build an effective marketing communication strategy. Research findings have indicated that in some countries, 25 to 30 per cent of the advertisements feature celebrities (Agrawal and
Kamakura, 1995; Choi, Wei-Na and Hee-Jung, 2005).
However, celebrity endorsements involve a large sum of money and the risk keeps varying with the latest happenings in the professional life of the celebrity (sometimes even personal life). According to the Director of the
College Sports Management, a celebrity management firm that has managed some top celebrity cricketers in
India, the endorsement fees has a direct relationship with the performance of the

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