This statement is a research proposal which handles the marketing region of brand management. In brand management we have selected this issue from the movie star endorsement tool and advertisements. Our theme of research is "Impact of celebrity endorsements on consumers' brand conception and buying habit. " We would take a product similar product from sports area and evaluate the affect of having super star endorse one product and what the other product comparative performance without celebrity endorsement.
We also analyze consumers' behavior, impact on sales, and brand collateral for the same. The present research gives us insight in to the consumer tendencies to the merchandise acceptance with movie star impact on its perception. Review gives the layout of strategy that could be implemented in taking decision about advertising a brandname with or without having super star in it. We will also explore dangers vs. dividends, advertising goals what an advertiser are thinking about, and movie star and brand image in the literature review section.
In today's cut-throat competition the marketing industry has been revolutionized. The past brand communication was predicated on storytelling and mouth area of term. Nowadays, brands have been revolutionized to represent customers' wants, developments, and responsiveness. On the other hands new strategies have been introduced to increase sales, effect customers behavior, brand collateral, and income. Customers have adopted the bands as fashion for self applied expression, realization, and identity. As the trends have changes so does indeed the strategies to package with the same by the brand managers.
A Star is a popular figure in the general public which is well known of having some area of expertise or skill. They enjoy the public acknowledgement and largely skilled in their respected fields. The examples of such personalities are; sports activities statistics, entertainers, and singers etc. they have got particular qualities like; special skills, attractive personality, standard life-style, larger than the image life, and even demigod status at some places. Celebrities generally change in social norms and life style and enjoy higher-level of identification and fanfare.
An Endorsement is channel of communication in which a celebrity acting as brand's spokesperson and certifies brand's promise giving his support to validate it. It uses its personality, popularity, status, and appeal to endorse the merchandise. In a wide spread local and international fighting brands, superstar endorsements are believed to provide differentiation or border needed (Martin Roll, 2006). Therefore the movie star endorsement is the use of superstars with a target to boost the sales/value of your brand.
Examples of star endorsements are: Tiger Woods for Tag Heuer; Edu Manano for Blessed Me; Britney Spears for Skechers; Alicia Silverstone for Kamiseta; Bata Reyes for San Minguel Ale. According with an estimate 20% of all commercials use some form of super star endorsement. Bryant is reported to obtain signed a package with athletic boots giant Nike worthy of $45 million over the five years. Various other sponsors ready to pay mega money are Spalding, Coca Cola, and McDonald's. On the other hand sponsors are skittish about endorsers who choose controversies (Ong, 2003).
After Hollywood superstar Tom Cruise wore a set of Ray-ban 1952 'Wayfarers' in the blockbuster, Risky Business, the gross annual sales of Wayfarers rose from 18, 000 to 260, 000 in 1983. Similarly it was anticipated to his endorsement that Ray-bans are actually the best selling sunglasses in the world (Ltd, 2007).
The writer (KHATRI, 2006) concludes that celebrity endorser is a indeed solution to all marketing problems. He feels that it's today's popular procedure in advertising that ought to be carefully combined to strategically taking its benefits and making brands. It mainly works but could also be catastrophe even having pleasing stars in advertising campaigning if it lacks powerful or workable idea. It present excerpts from Cyber media research which concludes;
Over 80% of the viewers remembered the movie star but overlook the brand,
Different endorsers charm to different sections or geographic groups of customers,
Research presented that advertising without celebrity possessed good chance of being successful as against those having them.
This field of study lacks the frameworks or models in practice so we main focus will be theoretical constructs.
Before decide to contact a movie star for your ad campaigns it's important to judge merits and demerits of such a move.
People remember movie star not Brand: Celebrity overshadows the brand as a person will remember superstar not product or brand.
Endorser reliability: Knowledgeable customers are well aware of celebrity's trustworthiness, having indicted or notorious behaving endorsers do more damage than good.
Celebrity attachment: Once a brand is well known by or attaches a star it becomes quite difficult to promote it in the future without that superstar.
A mismatch: Some stars are better off with products they look naturally related with; in any other case a mismatch will not give a strong meaning.
Poly-endorsements: multiple endorsements clutter something with volume of celebrities as the product itself looks empty or vulnerable.
Awareness: Research shows that consumers have higher recall of the message endorsed by the celebrities.
Brand commitment: Customers having loyalty to the super star also attached emotionally to the brands they promote.
Quick Recall: Customers will hasten up for the merchandise with superstar endorsements and can associate the brands with endorsers and propagate the message with their area of impact.
Imitation: Celebrities have grown to be the role models for duplicating them by fans in every facet of their lives. So they start using products as fashion as they them doing the same.
In order to comprehend the role of star endorsements we need to understand the goals of communication of the advertisers which they seem of try to talk about their brands to the customers (Pad, 2010).
Firstly, advertisers are tasked to promote market growth which is usually used as zero.
Second, promoters have to persuade the consumers to buy a certain product or avail an supposed service.
Third is the business enterprise perspective goal, which is to choose a relevant celebrity for concentrate on product to be promoted.
Celebrities add new proportions to the brand image and could help convincing the clients of the brand.
Lastly, promoters see celebrities as a way to obtain free promotion. They include local or home heroes in their endorsement portfolio. For instance when an sportsman becomes champ, will be accompanied by media and press and thus becomes free source of publicity.
Advertisers have been using movie star endorsements in advertising, prints promotions and promotions because if properly done they sell the products. They get visitors or consumers attention however the selling of product depends upon the right selection of the superstar and idea which works and have masses appeal. Ideal this would be the individual in whom the consumers of product or service have trust plus they want to believe. But the situation is the superstars like other customers of the population do not have integrity and charm that the consumers or marketers have expected from it. Celebrities in ad are generating vehicle and are anticipated to continue to be so in the next millennium as well. You will see no lack of the expertise to fill in the old ones but carrying it out right is the largest challenge. The proper answer is the one which could result in better consumers' response, higher sales, and revenue (Jeney, 2010).
In order to choose a star for a given product, there should be an optimal match between movie star and brand image. Below are a few parameters which should be looked at for the same (Katyal, 2010):
Celebrity personal identity is not controversial
It suits with the image of the product
What is the price of acquiring a superstar and if it's worth it
Is there any controversy risk attached after the advertisement campaigns launched
How much the superstar is popular?
Does celebrity appeal is local or regional and what is service or product charm in the same context as local or regional
Is the superstar credible? Provide with the statesmanship so that consumer of the merchandise tend to consider him/her.
If the star is a brand user?
What is superstar profession? Does it matches to truly have a natural match to the merchandise and charm to the consumers. For instance, celebrity shape from sport is natural to promote sports related stuff and boots.
Are you concerned about celebrity previous endorsements, for example; recently endorsed rival brands or have endorsed multiple products in the same product line?
What values superstar is from the product? If a celebrity is put in a job to propagate the human service cause does he/she be social worker or number.
Does market want to believe in the superstar for the prospective product to be promoted or meaning to be conveyed.
After advent of television, cable television, and internet, advert industry received revolutionized. New tendencies and format were launched for immediate and complex way to impress the general public and numerous items, products and services became family members names. Tv set though created in 1920's became commercial medium in 1950's. This happen when a price of the television sets started out to address affordable selection of average person. Printing and Radio had to take back seats to give ways to the new systems. Now the commercials could be broadcasted with look, sound, and movement. First-time in the history advertisers saw huge potential of multimedia technology which could give higher benefits in profits provided right tools and ideas were chosen. Cable television route introduced stations like MTV for young music lovers, ESPN for athletics fans and Food Networks for people with love of cooking food. These new programs were attractive and fun for promoters who wish to target certain audience for example; entertainment, activities, or food (Sample, 2010).
Volney B. Palmar was first advertising agency were only available in 1841 in Philadelphia. Advertisement became endemic mainly with the dedicated sections of ad in the newspaper publishers and magazines. For the basic need to build selling material, the advert companies were born. The trend multiply like a crazy fire in only NEW YORK alone there were 20 advertising companies by 1861. Radio became a commercial medium in 1920s. Later on television evolved everything which became commercial medium in 1950's. For the first time commercials were telecasted with Look, Sound, and Action (Test, 2010).
Lot of talk have been made on the value of brand management in an progressively competitive and diverse multimedia marketplace. From the last two decades celebrity endorsements are being used just one more tool for brand communication. In the past Newspapers, Periodicals, Radio, Television, Cable tv, and Outdoor advertising have been popular for the same.
Advertising industry is multibillion dollar market. It can also make fortunes for the company promoting the merchandise for business profits, making brand names, huge earnings, and public recognition. The best exemplory case of this is JORDAN whose endorsements have added $10 billion to the market in advertising campaigns for Cock, Nike, and McDonald's (Pad, 2010).
In 2000 Tiger Woods negotiated a five years contract with Nike well worth $125 million. Golf player and Wimbledon champ, Venus Williams, has authorized a five years deal worthy of $40 million. Various other successful endorsements have been; Dunlop - John McEnroe, Adidas - Prince Naseem Hamed etc (Katyal, 2010).
The aim of the research is to review the impact of movie star brand endorsements on consumers' brand conception and buying behavior. We intend to compare two close to equivalent companies/brands with and without star brand endorsement. We assess and study the impact of such a situation on companies' sales and brand collateral in each circumstance.
What is the impact of superstar endorsements on consumers' brand perception?
How the superstar could impact an individual buying behavior and so the sales?
The objectives of the research are:
To review the impact of star endorsements on the brand image
To study the impact of star endorsements on the purchasing behavior
To determine its impact on sales
To find the impact of superstar endorsements on brand equity
The brand endorsement is one of the business section of brand management. It further down belongs to the broader portion of marketing research. Brand management is an software of marketing ways to a specific product, product line, or brand. It is designed to increase product's perceived value to your client and thus enhance the brand franchise or brand collateral. It may also increase the sales as contrast to the competing products with similar features. Additionally, it may enable maker to ask for more for the merchandise so as a result increasing the sales but also profit percentage and higher go back to the stakeholders at exactly the same time.
In this section we will explain the research method we will follow throughout the research. Mainly we gives our two types of data options to be used for research and four phases of the info research method. The proposed approach to research would help us proceed in a organized way. This is designed in such a manner that will assist us obtaining our research aim and objectives. This task by step research would also help us to divide our objectives in subtasks. Their mappings as time passes line will observe allow us to be versatile with subtasks and achieving our aims within time limited.
An approach based on mixture of both qualitative and quantitative research methods will be utilized for this research at exactly the same time ensuring a degree of triangulation.
Secondary data options will comprise of Brand book writers and marketing guru; (Jordan McAuley, 2010), (Lynn R. Kahle, 2006), (Jordan McAuley, 2010), and (Pringle, 2003).
Selected electronic Articles and Publications, relating to Brand management and Marketing will also be sourced from writers' homepages and electronic digital databases. However reports articles and encyclopedias resources would be ignored to guarantee the quality and integrity of the research. This will help us meeting the quality and research aims accordingly. You will see two main data options to carry out our research in a organized way. First data sources would be most important and would consist of raw data by means of input extracted from the questionnaire. The second data source is supplementary data sources centered upon natural data from key data sources. Both of these data sources are discussed below.
Primary data will be accumulated by making use of carefully designed questionnaire to comprehend the customer views on variables of celebrity endorsements on sales, customer tendencies, brand perception, buying behavior, and brand equity; with or without superstar endorsements. Advertising on tv set and news papers would be viewed as brands being endorsed. The exact same variables would be analyzed for brand endorsement from a pop performer or a activities figure to study the effect they have got on specific segments of customers. We objective to choose tv set commercials for the purpose of studying the merits and demerits of the celebrity endorse advertisement in the sports activities industry.
The questionnaire would be sent out on locations at London College of Business & Money (LSBF) and UK shopping malls. For participant to be eligible to be a part of the process he/she must have one heard or observed the advertisement. An example of 100 potential buyers at both locations with total of 200 is designed to attain. The samples would be carefully determined for having both young and old age purchasers. Interviewer will administer questionnaire to guarantee the validity of the data.
From collection of natural data of questionnaire and interviews, to the info research using SPSS Deal would be completed in four levels. Each stage is gives a specific task which is to carry out research in a organized way. This technique would be help us in dividing each responsibilities in subtasks so the important period of research research could be completed in an appropriate way possible which is less erratic to the amount possible. These four levels of your research method are highlighted below with related details as well of every task.
Now every one of four phases of the research method are described below in step wise manner:
In the first stage data is to be produced by the questionnaires includes personal data such as age and job etc. Furthermore in order to build a profile of these who observed or seen the advertisements at least once we use Microsoft Excel pass on mattress sheets. We will than develop behavioral data on two types; one on the product and company itself and on the sports activities celebrity used relate advertising campaign and without super star. Second would comprise of buyers background on purchasing the merchandise and the future behavior to get the similar product in the questionnaire form. In devising the questions for all these questionnaire SPSS program and consumers give food to would also be utilized according to need.
Data from the above questionnaire with purchasers with positive gesture towards product in term of earlier preference of the merchandise or future objective to buy the same will be picked for the next level of the analysis. This will give us the filtered data for the grade of the further research. In order to further decrease the biasness we will ask filtered consumers for his or her willingness to take part in the interview. Volunteers would provide contact details and their contribution for even more proceedings.
In level three an additional test of 30 respondents would further are attracted to take part in the semi set up interviews. The selection of semi structured interviews method is performed due to the fact that it'll allow us to ask questions other than written pre-determined questions in the questionnaire form. This give researcher the overall flexibility to explore some concern in additional information if needed while administering the questionnaire. These interviews are likely to keep going for 15-29 minutes. This allows us to create a very useful data which is relative to the outline set in the goals and targets section. This flexibility would produce a high quality data from the prior level as respondents will be absolve to give their view and thoughts in greater detail on the relevant area of the research. This will also help us explore their individual accounts of their experience with exactly like well as their determination to buy the product.
In the final level of data research we use the SPSS program to investigate the questions produced by the questionnaire. This may also help us making concentrate on questions in the questionnaire which stand for the aims of the research and are based on the research format.
So by following above research strategy into undertaking research we hope to enter the complexity of the study buyer habit with certain degree of precision and quality. We suppose to get insight into the movie star endorsement driven advertisement in specifically UK and getting together with our research targets at exactly the same time. This can answer our research questions and explore the way the way the research methods can be used to perform the same.
This research gives us information into standard consumer action and impact on the sales of a specific brand which could be further broadened in specialized research area in the foreseeable future. In future research someone can dwelling address the limitations of your research by considering much larger data test and covering wide variety of other factors as well.
In this section we present week-wise job set of our research. We will try to follow this schedule using its spirit but we also expect unwanted delays. For unexpected delays we can allocate or deduct time from other responsibilities and incase of their time likely to run short we shell start some task in parallel with another. It is also to be highlighted that literature review is continues process which may change or improve our duties and particular time. The full total duration is expected to be 6 months and plus 2 weeks for unexpected delays at the end of conclusion. Thus a tentative outlines of jobs with expected time considered by each is given in table 1:
The possible resources would be helpful in research can be called for from our school administration. These resources can include catalogs highlighted in the study methodology to be obtained by the catalogue and SPSS offer for the intended purpose of the research from the supervision. In case there is books and publications that are not available in hard backup we are available to explore gadgets copies in case provided otherwise. We would need our teacher's continues direction in this regards.