Celebrity Endorsements! - Do they work or not

From Humphrey Bogart and Lauren Bacall advertising Robert Burns Cigarillos and Betty Davis selling Lustre Cream Shampoo to Bill Cosby and Jello Pudding, companies have long loved using celebrities to endorse their brands. And who can forget Brooke Shields’ famous line, “You wanna know what comes between me and my Calvins?”

 It’s true: Celebrity endorsements can reap huge rewards for a brand. Yet they have numerous pitfalls that companies should consider before developing an endorsement program.

The Benefits of Celebrity Endorsements

• Build brand equity. Prior to Michael Jordan, Nike primarily sponsored tennis and track athletes. Nike wanted expand into new markets. Who better to sign than one the most electrifying young athletes in sports? The Nike-Jordan partnership has blossomed into its own multibillion dollar subsidiary company, Air Jordan.
• Help people remember ads.Celebrity endorsements can improve ad recall, according to researchers Jagdish Agrawal and Wagner Kamakura. When people would see or hear Dennis Haysbert on the show “24,” they associate his voice with Allstate.
• Make people believe the product contributes to superstar status. Mobile One uses NASCAR superstar Tony Stewart to endorse its brand, which leads consumers to believe that Motor One oil contributes greatly to the performance of his car—and his success.
• Stand out. Research from Charles Atkin and Martin Block suggests that “celebrities may help advertising stand out from the surrounding clutter.” People like watching George Clooney or Natalie Portman more than local dentists and attorneys.

Note: It takes time and repetition for association to occur. Celebrity endorsements are not short-term tactics.

Selecting a Celebrity for a Brand

Brands are important company assets. Advertisers need to select celebrities who represent the image and promise of their brands. (For more information on brand promises, read FrogDog’s article series on branding.) Not all celebrities fit with all brands.
For example, at the height of “Sex and the City,” Sarah Jessica Parker signed on as a face of Gap. However, Parker was so closely associated with her show’s haute couture style that the association didn’t resonate with consumers. In 2005, Gap replaced her with Joss Stone and Keith Urban, who are more likely to wear Gap-style clothing in the public eye. Since then, Gap has continued to use celebrities who align better with their brand, such as the Avett Brothers and Kaki King.

The Risks of Celebrity Endorsement

Yet even if a celebrity is a good fit for the brand, using one for endorsements has its own set of possible risks:

• Images change. Celebrities make mistakes. And when they do, they can affect the brands they endorse. In 2009, Tiger Woods’ public image crumbled after his infidelity with a number of women, including pornography actresses, hit the news. General Motors, Gillette, Accenture, and Gatorade dropped Tiger to avoid negative perception. Nike stuck around and lost customers. And the golf industry as a whole saw a major revenue slow-down with no Tiger on the course.
• Celebrities become overexposed. At the height of Tiger Woods’ popularity, he endorsed over ten companies at once. When a celebrity works with so many companies, the celebrity’s credibility may suffer. People may feel that the celebrity will endorse anything to make a buck.
• Celebrities can overshadow brands. Consumers may focus on the celebrity, not the product. This is a particular danger when celebrities endorse multiple products at a time. David Beckham endorses a number of companies, which feature him prominently in print advertising. However, his image as the focal point of advertising devalues many products. Do you remember the brand or do you remember David Beckham?

Thinking about using a celebrity for endorsement? Not a bad idea. But you might want to think twice—it’s a possible minefield.

Source: http://frog-dog.com

Building Brand Modi on Social Media

Building Of The Brand ‘Narendra Modi’ using Social Media

Recently on his show, Koffee With Karan, Karan Johar asked three celebrity youngsters who's the President of India. Responses varied from Manmohan Singh to Prithviraj Chauhan to pass over. Perhaps, Johar would have received a correct response to the question, "Who is the Chief Minister of Gujarat?"

He's neither a marketing guru nor has he formally studied the Keller's Brand Equity Model; however Narendra Modi has successfully advanced on the brand pyramid starting from creating brand awareness to defining brand purpose to gathering brand response and to building brand advocates.

He's the undisputed Pied Piper (Politician) of the Indian Social Media but the question still remains - will he be able to win the 2014 elections and if he does, how much credit can be given to Social Media? Here's a review on his journey from - being the Chief Minister of Gujarat to a universally accepted National Leader.


Fig: Keller's Brand Equity Model


In 2007, YouTube was the first social platform that Modi befriended. His journey on Twitter and Facebook commenced in the month of Januray 2009 and May 2009 respectively. On 14th April 2009, on the occasion of the 118th birth anniversary of Dr. Babasaheb Ambedkar, Narendra Modi started blogging and he also had a personal website by then.

In 2010, Modi's Twitter follower base increased to one lakh and by December 2011, he had over four lakh followers which finally crossed the one million milestone in October 2012. He's named to be the first Indian politician to use Google Hangout and have an App on his name, 'iModi'. As per FollowerWonk, as on Dec 30, 2013 Modi has about 3,040,192 followers on Twitter and his social authority is 81 (on the scale of 1 - 100; where 1 is lowest and 100 is highest). On Facebook, Modi has 7,549,972 likes and 960,914 people talking about him.

Modi's content strategy changed as per his objectives. In the early days of creating a brand identity, he established his presence on various social platforms. His Facebook posts were simultaneously sent to Twiter; the content revolved around inspirational quotes (his favourite leader is Swami Vivekanand), quotes from scriptures and his daily activities. In this stage, Modi certainly measured the number of posts and also the content; perhaps he was testing the water then!

In the second stage of building the brand meaning, Modi focused on "performance" and in turn built his "imagery." He started taking about his achievements and the developments in Gujarat; his fans and followers had started engaging by liking, sharing and commenting. While he garnered support, he also invited criticism by opposition, media and a few citizens.

In the thirst stage of building brand response, Modi's focus shifted on helping his audience build "judgments" and "feelings." This was the stage where Modi built his credibility, increased his consideration and amplified his superiority. He took to an unusual move by mass following people on Twitter. As on January 01, 2012, he was following 174 people and as on Dec 30. 2013 he is following 885 people.

Apart from following his colleagues in the BJP, international leaders, eminent celebrities, Modi also followed a few of his fans and well-wishers. A top public figure's 'following back' spree indicated that he is as much a people's person; this created an army of advocates. By that time Modi has tweeted 724 tweets and since then the frequency of his tweets and posts increased. Also, there was a notable change in the content strategy; in addition to sharing his credentials, he turned more vocal about the opposition and created strong statements to express his opinions.

He managed to draw attention of many, reinforced confidence in his existing followers and built conviction of those who were neutral about him. Beginning 2012 up to date, Modi has remained the most talked about politicians on the social media creating a Twitter trend every now and then. Those who were pro-Modi helped in elevating his image and those who were anti-Modi coined the term "Feku" for him.

Several questions were raised on genuineness of his fans and followers; controversial stories around he manipulating online poll results to elevate his image were all over. Also, question was raised on how fan following on social media would translate in to a vote for the BJP.

Sentiments on the Social Media clearly signalled appeal for the brand "Modi". In September 2013, Modi was declared the BJPs prime ministerial candidate for 2014. Now begins Modi's final stage of building brand resonance with active campaigning for election.

Jiten Gajaria of the BJP's social media cell said, "We are bringing about convergence of social media with ground-level mobilisation. Although many claim that social media had little penetration among the "masses", who actually come out and cast their ballot, even a minor swing in votes could change fortunes." The party has now set up 12 tables from where volunteers, who are not party members, can tweet minute-by-minute updates on election rallies. Since November 2013, the party has been extensively using SMSes, emails, Twitter and Facebook to garner support for various rallies. All his events are available LIVE on the YouTube.

A survey earlier this year had claimed that social media could influence the outcome in 160 of the 543 Lok Sabha constituencies, of which the maximum — 21 were from Maharashtra. A coincidental fact to support the claim, that social media could influence the outcome of election, is four of five state elections have been won by the BJP. We'll watch and see the outcome in 2014, but certainly Social Media has contributed in the making of the brand "Modi".

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The above article has been contributed by Ami Shah is a co-founder and Creative Director of IntelliAssist.

Brand Modi vs Brand Rahul

The cover story in the issue of Open Magazine dated 29 April 2013 sports this headline: ‘The real challenge to Modi’. The text features Bihar CM Nitish Kumar of the JD(U) riding a Royal Enfield Bullet, with BJP’s L K Advani seated in the side car. Flagging them off, or perhaps holding the chequered flag at the end of the ride, is the Samajwadi Party’s Mulayam Singh Yadav. Besides capturing the complex political scenario that is unfolding ahead of the 2014 elections, the cover symbolically indicates that the real challenge for the BJP’s Narendra Modi is not from the Congress-led ruling UPA. This echoes the general sentiment that the Congress has missed out on projecting what could be a counter to ‘Brand Modi’: the young ‘Brand Gandhi’.
The Gujarat Chief Minister is active on social media, while also making the right noises at public forums. To be fair, ‘Brand Modi’, or ‘NaMo’ as he has come to be called, has been built over time. On a parallel, Congress vice president Rahul Gandhi is hitting the road across States, surprising dhaba owners on the one hand and addressing industry leaders with ease on the other. Signs here, that the countdown to 2014 general elections has well and truly begun.
Both Modi and Gandhi carry with them pros and cons. From a brand perspective, which has greater salience? Which is stronger? Which is more reliable? Both have their followers born of political affiliations. What is the role of each brand in increasing the base of followers – and voters – in the democratic mandate? Will Brand Modi’s positioning led by development score over Gandhi, whose political lineage is among many inherent advantages he enjoys as a mass brand?
Deconstructing the brands
Brand Modi comes with a track record of having won three consecutive elections in Gujarat, which is no small feat. He is positioned on the plank of ‘walking the talk’ and is associated with development and achievement. At a time when ‘policy paralysis’ and ‘decision deficit’ are buzzwords, Modi seems to be the perfect antidote for the many malaises that ail India.
R Sridhar, founder and chief executive officer, Integrated Brand-Comm, explains, “Modi is clearly talking about development. As we say in advertising, you must have a unique single minded proposition. This (development) proposition works in the case of educated people and that is probably why a lot of his stuff is online. Further, Gujarat is the case study for business segments and has received vociferous support from the captains of the industry who have spoken of their support for Modi.”
On the other hand, Rahul Gandhi is the scion of the famed Nehru Gandhi dynasty whose governance of India has been celebrated by aam India. He is Congress party’s potential candidate for the 2014 elections. Santosh Desai, chief executive officer and managing director, Future Brands, says, “Apart from the fact that he has dynastic lineage, there is a feel of reassurance and pedigree which works for Gandhi. There is an inherent sense that he is somebody who wants to engage with the complexity of the real India.”
But has the brands’ positioning been communicated effectively? Experts believe that Brand Modi has been very clearly positioned and this has been communicated to people as well. The same cannot be said for Brand Gandhi. Harish Bijoor, chief executive officer, Harish Bijoor Consults, says, “Brand Modi has been very clearly positioned as there is a clear definition of purpose and there’s a very clear definition of will. The moment you think of brand Na Mo, you typically associate it with colour saffron, you think achievement orientation and a successful Chief Minister. If you look at brand Rahul Gandhi, it does not have such a clear definition and you associate it with the colour white and with secularism. But the colour white also comes across as weak as opposed to saffron which comes across strong. A more clearly positioned brand is Na Mo vs. Ra Ga.”
This ‘weak’ positioning could be attributed to the fact that apart from political lineage there is not much that Brand Gandhi stands for and is hence is also viewed with scepticism. Ramesh Natarajan, managing partner, Curiosity Road, opines, “For Brand Gandhi, one doesn’t know what is there in that as he is quite fuzzy. The first and the most important point for a brand is that he must exhibit some interest and initiative to showcase himself as an efficient leader but brand Gandhi has nothing in the cupboard - the cupboard is bare in terms of achievement. Lack of purpose or any proof that he is a strong leader is his single largest drawback. A personality brand needs to be decisive.”
Experts believe that Gandhi has the potential to be a powerful brand but for that he needs to prove himself and do that quickly. He needs to accept party responsibilities, and actively participate in politics. Natrajan states, “He needs to say ‘look I am going to be the leader’ and he has to state a vision. He’s got to bring in the communication element, and create platforms where he can communicate better through social media etc. He has got to become a lot more visible and significantly improve in communication. Everyone in Congress needs to rally behind him speaking the same language.”
Does popularity translate into votes?
Bijoor opines that translation of popularity in to votes is a different calculation as the strength of the brand does not automatically translate into a meaningful number of votes. Experts believe that though both these brands enjoy great popularity, there could be many a slip between popularity and votes.
The Congress party projects Rahul Gandhi as the youth icon as he represents ‘Generation Next.’ So, would the youth be voting for Gandhi?  MG Parameswaran , executive director and chief executive officer, Draftfcb-Ulka, Mumbai, does not think so. He says, “I am not sure that the young will vote for the young and the old will vote for the old. By that logic, women should vote for women candidates and men for men candidates. This does not happen that automatically.”
According to Dilip Cherian, consulting partner, Perfect Relations, the youth instead of falling for Gandhi’s appeal are far more impressed with the work done by Modi. He explains, “When it comes to age, the voter is not enamoured by how old the politician is but rather by the methods of the politician and his image. Modi’s biggest support is from the ranks of ‘Young India’. I would say what really is a matter for today’s voters is how clean is the politician’s image, how transparent it is and how global it is. These are things voters look at.”
Modi’s largest target audience is said to be the aspiring middle class of India. But statistics prove that this class is not electorally dominant and generally stays away from the elections when it actually comes to voting. Nakul Chopra, chief executive officer, Publicis South Asia, reasons, “The media often carries reports of Modi going to rallies or some top level corporate events and giving very impressive speeches there. But this is the media that you and I watch. It can con us into believing that he has become a national phenomenon. But the voter that we know is the guy on the road and he is not watching CNBC and NDTV. According to me, the guy in UP and Bihar is still not aware of Mr Modi.”
High profile handicap
Brand Modi also comes with its own sets of disadvantages. He has been reported to be known for his autocratic style of functioning which does not go down well with a lot of his contemporaries. Desai explains, “Modi lacks humility. And I think currently he lacks the ability to build consensus that he is the effective leader for all. He lacks the universal appeal. There is a large customer segment out there who says this is not the brand for me. There are people who are clearly anti Modi; in brand terminology, I think the rejectors are a lot in terms of the people who reject the brand Modi.”
Experts believe that Modi must make amends to reach out to a far wider base of voters across geographies and religion to ensure that he has a successful run in the elections. Cherian feels, “Modi needs to project a more accommodating image because he is seen as a polarising figure, even within his own party. He will also need to, sooner or later, have to deal with the controversies surrounding him and his administration in Gujarat. The rest of India is not Gujarat, and we need to see how he plans to connect with voters in other parts of the country.”
Indian politics is not about brands
There have been strong political brands like Indira Gandhi, Rajiv Gandhi and AB Vajpayee in the past. For long, the government at the centre is an outcome of a coalition of regional and national parties. And that is likely to continue, if political pundits are to be believed.
Natarajan explains, “If there was a Federal structure like the one in US and we were talking about elections in which Modi is pitted against Gandhi, it is a no brainer that Modi will ace it. Unfortunately, we are a country of coalition politics and lots of local brands creating the overall structure. That’s why it is not Brand Gandhi vs. Brand Modi battle so much as it is still the UPA vs. NDA.”
It will be easier for the political formation that has maintained a ‘middle of the road’ positioning than a rightist view to come through, point out analysts. Sridhar concurs, “We are comparing two groups which are not really going to make it absolutely, as either of them is going to come to power with the support of many partners. From that perspective, Congress having lobbied since years, is better placed. The ability to reach out to wider and more disparate elements will work and there are many people who are actually anti-BJP. The Congress party is probably better geared than the BJP.”
Road to 2014
So while ‘Na Mo’ seems to be marketed better than ‘Brand Gandhi’, the Congress’ legacy is expected to work better at the hustings. If that can be leveraged further through Rahul Gandhi, Brand Gandhi might make a significant difference, believes a senior observer of the Congress who did not wish to be named. It is an agenda that several party loyalists have been waiting to see driven home, he adds.
On the other end, Natarajan believes it is time Modi reaches out to the minorities to widen his core audience and that BJP must announce Modi as its Prime Ministerial candidate, leveraging his brand equity.
Bijoor surmises the road taken by these two brands, and the road ahead: “Rahul Gandhi needs to step up his decibel of talk and Narendra Modi has to step down from his decibel of talk. Fundamentally, one is oversold and the other is undersold.”
The article appeared in the issue of Campaign India dated 3 May, 2013
Source: http://www.campaignindia.in

Multiple Brands at VOLKSWAGEN

Volkswagen Group (parent company Volkswagen Aktiengesellschaft) is a German multinational automotive company headquartered in Wolfsburg, Lower Saxony, Germany. It designs, manufactures and distributes passenger and commercial vehicles, motorcycles, engines, and turbomachinery and offers related services including financing, leasing and fleet management. In 2012, it produced the third-largest number of motor vehicles of any company in the world, behind General Motors and Toyota. It has maintained the largest market share in Europe for over two decades.As of 2013, it ranked ninth in the Fortune Global 500 list of the world's largest companies.
Volkswagen Group sells passenger cars under the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda and Volkswagen marques; motorcycles under the Ducati brand; and commercial vehicles under the MAN, Scania, Neoplan and Volkswagen Commercial Vehicles marques.It is divided into two primary divisions, the Automotive Division and the Financial Services Division, and has approximately 340 subsidiary companies. The company has operations in approximately 150 countries and operates 100 production facilities across 27 countries. It holds a 19.9% non-controlling shareholding in Suzuki and has two major joint-ventures in China (FAW-Volkswagen and Shanghai Volkswagen).

Volkswagen was founded in 1937 to manufacture the car which would become known as the Beetle. The company's production grew rapidly in the 1950s and 1960s, and in 1965 it acquired Auto Union, which subsequently produced the first post-war Audi models. Volkswagen launched a new generation of front-wheel drive vehicles in the 1970s, including the Passat, Polo and Golf; the latter became its bestseller. Volkswagen acquired a controlling stake in SEAT in 1986, making it the first non-German marque of the company, and acquired control of Škoda in 1994, of Bentley, Lamborghini and Bugatti in 1998, Scania in 2008 and of Ducati, MAN and Porsche in 2012. The company's operations in China have grown rapidly in the past decade with the country becoming its largest market.

Volkswagen Aktiengesellschaft is a public company and has a primary listing on the Frankfurt Stock Exchange, where it is a constituent of the DAX index, and secondary listings on the London Stock Exchange, Luxembourg Stock Exchange, New York Stock Exchange and SIX Swiss Exchange. As of September 2012, the government of Lower Saxony holds 12.7% of the company's shares, granting it 20% of the voting rights

VOLKSWAGEN REPORT
http://www.volkswagenag.com/content/vwcorp/info_center/en/talks_and_presentations/2004/01/CHEUVREUX_3rd_German_Corporate_Conference_.bin.html/binarystorageitem/file/20040121_kronberg_handout.pdf

TOP 10 MEDIA Agencies 

SOURCE:MATCHBOX

The advertising market is increasing like fire at present. Especially in India, a drastic change is measured in the last decade.Here is the list of top ten advertising agency in India 2013-

1. Ogilvy and Mather (www.ogilvy.com) With its presence in over 100 countries, Ogilvy is one of the top advertising agency in the world. Its Indian operations are headed by Mr. Piyush Pandey. Ogilvy & Mather has given life to India's most successful and renowned brands such as utch (Vodafone), Cadbury, Asian Paints and Fevicol.

2. Mudra Communications (www.mudra.com) Headquatered in India, Mudra communications is one of the top advertising agencies in India 2013. Giving tough competition to others, it holds the account of renowned brands like McDonalds, Tourism Australia, Colgate and PolicyBazaar.com.

3. JWT (www.jwt.com) With its six offices in various cities of india, JWT is next in the queue. It has bagged in many awards at cannes india festival.It is behind many famous ad campaigns like Listerine, Good night, and Teach for India.

4. McCann Erickson India (www.mccann.com) Headed by Prasoon Joshi, a revered ad personality in India, McCann Erickson is an award winning global advertising company. Its holds the account of some famous brands like MasterCard, Coca Cola, and Greenlam Laminates.

5. Lowe Lintas (www.lowelintas.in) Lowe Lintas is among the most trusted brands in the country. Its headquarter is in Mumbai along with various offices all over India. Lowe Lintas is responsible for ad campaigns like Idea, ICICI Prudential and Tata Tea.

6. Leo Burnett (leoburnett.co.in) The creative team of Leo Burnett India Pvt. Ltd. has, successfully offered consumers with powerful brand experiences using ads like McDonald's, Heinz, Complan, Bajaj, HDFC and samsung to name a few.Its Indian operations are headed by Arvind Sharma and the company has offices in Gurgaon.

7. Matchboxindia (www.matchboxindia.com) Matchboxindia is growing to be the top advertising agency in India 2013. It is headed by J. B. Sahu. It is well known for its Event Management, Printing - Services, Digital Advertising, and Creative ad creation, Ad promotion in central India. it deals with well known brands.

8. Dentsu India (www.dentsu.in) Dentsu is a Tokyo based advertising agency. It has a number of wholly owned subsidiaries in India, including Dentsu Marcom, Dentsu Creative Impact, Dentsu Media and Dentsu Communications. Its subsidiary also include one of the budding advertising agency i. e. Taproot India.

9. Contract (www.contractindia.co.in)Contract Advertising India Ltd. is successful in delivering great results to its high-profile clientele including Tata Indicom, Religare, Asian Paints, Domino's Pizza, SpiceJet, Samonsite and American Tourister.It is headed by Jagdip Bakshi.

10. Rediffusion DY & R (www.rediffusiondyandr.com) Rediffusion is India's 5th largest advertising company.It focuses primarily on integrated PR services and media relations. Its has set a benchmark in the field of creativity.