Advertisement and Airtel

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IMPACT OF ADVERTISEMENT ON BRAND & REVENUE

A

CASE STUDY ON

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SUBMITTED TO

CONTENTS

1. Introduction

2. About Airtel

3. Positioning Of Airtel Through Celebrity Endorsement

4. Effect of Advertising Expenditure On Sales

5. Questionnaire

6. Questionnaire Survey Findings

7. Conclusion

INTRODUCTION

Brands all over the world use celebrities to advertise their products. As early as 1890, actress Sarah Bernhardt appeared on posters for La Diaphane, a famous brand of rice powder at the time (Lehu, 1993). The use of celebrities in advertising is not, therefore, a new phenomenon, but it has become increasingly widespread. Brands like Pepsi have featured stars such as Michael Jackson, Madonna, or even the Spice Girls, with varying impact (Erdogan,1999). Pizza Hut launched its restaurants on the international market with icons that are almost universally recognized, such as Cindy Crawford, Linda Evangelista, and Pamela Anderson. Some stars have several contracts with different brands: it is estimated that Michael Jordan, who appears in advertisements for Nike, Coke, Wheaties, Mc Donald's, Hanes, Oakley, and Gatorade, has an impact worth about 14 billion dollars on the American economy (Erdogan & al., 2001). Similarly, in a single week, French footballer Zinedine Zidane appeared on posters for Dior perfume and Leader Price hard-discount supermarkets, as well as TV ads for Dannon yoghurt. Stars have become a vital component of advertising for certain categories of products, like perfume and cosmetics. While celebrity endorsement in advertising is not a new phenomenon, it has certainly become much more widespread over the past twenty years. It has even become common practice for some companies. In fact, consumers have become increasingly keen on celebrities (Masse-Stamberger, 2005): they are interested in people who are well-known simply due to the fact they have appeared on television, — like the stars of reality shows —, and celebrity magazines are tremendously popular, as people always want to know more about stars' lives. The number of celebrities in advertising increased by 60 % between 2000 and 2004 (Neumann, 2006). As a result, in 2004, nearly 700 television advertisements featured celebrities. Alongside this phenomenon, research into the role of celebrities in advertising has also increased since the 1990s (Pringle and Binet, 2005; Erdogan, 1999; Ohanian, 1991). This research more specifically investigates the concept of congruency between celebrity and brand, which is apparently a crucial factor. We shall start by defining terms such as "celebrity” and "endorsement" and presenting the main models in this field then introduce a two-dimensional analysis of congruency. We shall attempt to define this concept and its antecedents in more detail. We shall then propose a scale for measuring perceived congruency between celebrities and brands.

We must first define what we mean by celebrity endorsements in advertising. Firstly, we consider advertising according to an extremely broad definition, in agreement with Pringle and Binet: "Everything that has a name on it is advertising". This definition corresponds to consumer perception of advertising. It covers media advertising, as well as sales promotion, sponsoring, direct marketing, etc. As consumers do not generally make any distinction among these forms of communication (Ford-Hutchinson and Rothwell, 2002), it was appropriate to adopt this premise in our study, as we are examining the issue from a consumer standpoint.  The term "celebrity" needs to be defined: according to the "Encyclopédie de l’Agora", "celebrity is measured by the number of press cuttings and broadcast time devoted to a person and is thus distinguished from fame, which is generated by a person's outstanding work or exemplary life. Of course, a celebrity may be worthy of fame, as was the case of Lindbergh, but the connection is accidental...
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