Questions For Discussion:
Why do you think Siyaram did not opt for the celebrity endorsement route for its September 2001 J. Hampstead campaign?
“The roles of celebrities play in people’s lives goes beyond a voyeuristic form of entertainment, but actually fulfil an extremely important research and development function for them as individuals and for society at large”.
Siyaram Silk Mills Ltd recognized as one of India's leading textile companies collaborated with J.Hampstead a very popular suiting brand in Europe in 1995. With match fixing scandal of Hansie Cronje, a South African National Cricket Captain tarnished Siyaram's image very badly. This was the main reason why Siyaram did not opt for the celebrity endorsement route for its September 2001 J. Using a role model and celebrities in our lives is very effective because from an informal IPA survey shows that 84% of them had one time or more, been told that they remind someone famous. And perhaps a lot of people empathize themselves with some sort of celebrities. (Pringle 2004). Therefore companies must consider about the solutions of using celebrity endorsement and must be careful about the overshadowing or overexposing which can effects the consumer’s reception (Belch & Belch, 2001).
Due to the illegal issues of Hansie Cronje being involved in a match fixing allegation and later found guilty, Siyaram had to face a lot of problem and South African team as a celebrity endorser, they had to face the problem of negative image being formed of the company along with the illegal issues of match fixing. So they realized that when the endorser does anything or fails it will have a direct impact upon the brand image.
Moreover Company could not meet their expectation of return from the endorser. So they didn’t choose the celebrity endorsement route for its September 2001 J. Hampstead campaign. When a brand is used by a well known celebrity, they came to realize that, there are chances of their brand identity being dissolved with the celebrity identity and personality of the endorser. After the Cronje Scandal, Siyaram noticed the issue raised a heated debate in corporate and media circles regarding the perils of using celebrity endorsement as it was a horrible mess.
Associating celebrity with the brand is a great risk and the risk turned into a disaster to Siyaram. They also faced problems with tennis duo when they decided to break their partnership of Leander Paes and Mahesh Bhupati that also affected the company negatively.
They also realized that it was not only with their case of celebrity endorser but also with Pepsi which used Madonna and Michael Jackson as their Brand endorser. They also had to face the similar problem. In addition to this there are some other potential problems about using celebrities because in long term relationship between the celebrity and the brand can affect the audience's behavior and can have an impact on the consumers. And if the celebrities positive image changes and there would be some problems occur on the consumers perception of the brand because there are some evidences that a company’s sales can decline by the negative images of the celebrity who endorsers the brand. For example Kate Moss and H&M. After pictured taking drugs in Daily Mirror newspaper, a lot of brands she endorsed such as Chanel, H&M cancelled their campaigns and contracts with her. Chanel didn’t renew the contracts with her whereas H&M completely cancelled it. Because the H&M Company argued that most of their clients are young people, and any association with drugs can damage the chain's image. Another example of this, Air Jordan's generated revenue sales of $130 million in the first year. But after Jordan missed 62 games, the sales dropped miserably in the second year. As we can see celebrities can affect the brands image easily.
Another problem is the overshadowing the brand which means that consumers may only give attention to the...
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