Effectiveness of celebrity endorsement

Pages: 15 (3547 mots) Publié le: 26 février 2011
Celebrity Endorsment Strategy |
How to re-enhance the public’s confidence through the use of celebrities? |
de Chauliac Olivier

Table of Content

Introduction 2
Aim 4
Objectives 4
Literature review 5
Brand Management 5
Celebrity Endorsement 7
Methodology 9
Research Method 9
Data Collected 11
Data Analysis 12
Discussion 12References 14
Appendix 1 19

Throughout history, people create products and then try to sell it. The approach to sell a product differs from everyone, but the fact is that “before a product can be bought by anyone, it has to find a place on a scale of fame” (Pringle, 2004, p. xix). Companies realize that without a brand, an advertisement or a famousreputation, a product will never be sold.
The image of a brand is one of the major parts in the customers’ behavior regarding their choice of a product. Actually “consumers view a brand as an important part of a product, and branding can add value to a product” (Kotler, Armstrong, Wang & Saunders, 2008a: 511). Indeed a product without a brand is nothing less than a common product. For example,consumer would see a bottle of Coca-Cola as a high product, with a sure reputation. On the contrary, the same drink in an unmarked bottle would be perceived as a common drink with a lower quality, even if the taste were identical. By adding value to a product the desire and the want of the consumers are increasing.
While celebrity spokespeople were once in the shadow, companies see them as aprerequisite to raising money and to attract consumers and media. Indeed “celebrity endorsement acts as a signpost to quality and can significantly enhance the reputation of a brand” (Pringle, 2004: xxii). Nike and Michael Jordan are a good example of collaboration between a brand and a celebrity. “So successful was the collaboration that Nike and Jordan launched a new brand variant called the AirJordan line of sport shoes” (Roll, 2010, para. 1). This successful collaboration is one of the best examples of how the use of celebrity endorsement is working and how the consequence of using endorsers has an impact on the brand through the brand image.
Indeed companies use celebrity endorsement because they know that “celebrities can build, refresh and add new dimensions. When consumers see acredible celebrity endorsing a product they think the company must be OK” (Lindeberg, 2004: 3). For example, during “Michael Jordan’s first full season under the Nike logo, the Air Jordan line produced more than $153 million in revenue” (Vancil, 1991, para. 33). This means that in only 9 months of production Nike did in revenue $153 million. But the uses of celebrity endorsement for a new product donot affect only the product but also the entire brand. The endorser is therefore the starting point of the brand credibility and equity.
As an independent consultant for Nike, this study will identify, through the branding process strategies, the relationship between celebrity endorsement and consumers’ behaviour. This study will take evidences on an analysis of others companies that have usedcelebrity endorsement in order to demonstrate that the use of celebrity endorsement is an appropriate tool of strategy for re-enhance the public’s confidence towards a company.

The aim of this study is to analyze the impacts of celebrity endorsement as a marketing tool in the branding process of a Nike when this one want re-enhances the public’s confidence towards their brand

Objectives1. Determine the effectiveness of the use of celebrity endorsement by a Nike in order to improve their image and reputation through brand and marketing theory.

2. To analyze the relationship between celebrities, who play the role of an endorser, and the consumer’s purchase decision.

3. To analyze some different case study (Sales report, Profit report) of companies who used...
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