Saturday, April 2, 2016

Celebrity Branding and Endorsements

We have talked a lot about celebrities and their abilities to increase consumer awareness and purchase intentions for every product or company, (Schafer).  But, there are in fact celebrity branding and endorsement negatives.  To make celebrity branding and endorsements work, the celebrity must show a connection to the product and product category.  The relationship between the celebrity and the brand must be “sensible and appealing, believable, appropriate and motivating to the purchase decision,” (Schafer).  Sure, celebrity brands and endorsements can be a great idea, but they can also cause serious trouble for celebrities and companies. 

Tiger Woods is one of the most successful golfers of all time.  As a big name athlete, Woods sold an image publically that was spotless.  He was Mr. Nice Guy with a big TV smile.  In 2009, Woods was exposed as a cheater to his wife, Elin.  Before this scandal, Woods had a six-year contract with EA Sports, and other endorsement deals included Gatorade, Pepsi, Gillette, Buick and the list goes on.  A problem with endorsing many companies at once is credibility can suffer.  Someone so popular as Tiger Woods could be endorsing anything just to make some money.  “Unsurprisingly, the biggest imbalance comes for huge stars in individual sports where there are no salaries but only purses on one hand, plus enormous endorsement deals on the other,” (Oxfeld).  In other words, total earnings are a make up of playing and endorsing, and endorsing comes out to significantly more than playing.  According to an AdWeek article, Woods earns 83 times more money endorsing companies than playing golf.  His total earnings of 2015 came to approximately 50.6 million, 50 million of that came from just three of his sponsors.

In 2009, Woods’ endorsement deals were at $92 million and by 2010 they dropped to $70 million.  That’s a loss of $22 million in endorsements and that’s from his serial cheater reputation and sex scandals.  Sponsors he lost included Gatorade, Gillette, AT&T and Accenture.  "We no longer see a role for Tiger in our marketing efforts and have ended our relationship," a Gatorade spokeswoman said. "We wish him all the best."  Accenture is straight-up saying that based on the events of the last couple weeks, he's no longer a figure they want to be associated with,” (Weisenthal).  All other endorsement deals dropped Woods within a few weeks after his life became tabloid frenzy and nobody wants the face of their product to scream “cheater.”

In this case, the problem is with the person rather than the company.  As of February 2015, Woods’ endorsement deals include Nike Golf, Rolex, MusclePharm, Upper Deck, etc.  Most are catered to golf products and sporting goods since he is still known as being one of the best athletes of all time, regardless of the scandals.  Nike stood by him, but did Nike have not as much to loose since they are a sporting goods brand compared to a product like AT&T or Pepsi?

Jessica Alba’s Honest Company has recently been accused of being not so honest.  The company’s goal is to produce products that are effective, safe, eco-friendly, and affordable.  Products include family essentials like cleaning products, sun care, baby care, etc.  In 2015, the company was sued for being deceptive and misleading on their labels.  Consumers accused Alba of having unnatural and synthetic ingredients in a number of her products.  Specific cases include ineffective sunscreen causing sunburns and most recently, laundry detergent containing sodium lauryl sulfate, which is an ingredient they promise not to use. 

One of the great things about Jessica Alba as a celebrity is that she is credible.  She started this company after being inspired by the birth of her first child, Honor and her childhood illness.  She promised herself that she would deliver natural easiness to doorsteps but customers believe she has broken that promise.  Will these lawsuits, accusations and negative attitudes ruin her credibility?

Through September 2015 to present day, Alba has been bashed on social media sites, newspaper/magazine articles, and through word of mouth.  Fans may choose to believe the rumor even if the famous person chooses to reject it, (Marwick).  Contrary to Tiger Woods, this is a problem with the company products, not the celebrity. Unfortunately, celebrities receive bad buzz when their name is stapled to the company. 

The last celebrity I focus on is Kylie Jenner and her 2015-16 Kylie Lip Kit.  The lip kit is for women and girls who want Kylie Jenner’s big and plump lips, without all of the injections.  Since the lip kit is expensive and sells out in less than 10 minutes, girls will fall to the awful Kylie Jenner Lip Challenge.  The Washington Post describes it as “locate shot glass, insert lips, and suck.”  The effects of this glass-sucking technique leave you with plumper lips for about an hour and then leave you with a bruised ring around your lips for the next few days.  “Women - particularly young women - should not be modifying their bodies in painful, potentially dangerous ways to emulate Hollywood’s notion of what a woman should look like,” (Moyer).  So what does this mean for Kylie Jenner?  There are plenty of rumors and remarks about Jenner’s lips and what she does/has done to make them look the way they do.  In this case, it is both a problem with the celebrity as well as the products.  Clearly, Kylie has done a fair amount of plastic surgery to her face, she’s associated as a “Kardashian/Jenner,” and her sell out’s leave the potential customers angry. 

We have seen a lot of positive outcomes with celebrity branding and endorsements.  I believe there are negatives that can have substantial effects on companies and the celebrities.  Reputation and credibility is important when branding and endorsing.  Companies and celebrities want to maintain positive public opinions and overall image, but here we see that is not always the case. 



Work Cited:

Marwick, Alice. "To See and Be Seen: Celebrity Practice on Twitter." To See and Be Seen: Celebrity    Practice on Twitter. Sage Publications, 19 May 2011. Web. 02 Apr. 2016.

Moyer, Justin Wm. "Kylie Jenner Lip Challenge: The Dangers of ‘plumping That Pout’." Washington Post. The Washington Post, 21 Apr. 2015. Web. 02 Apr. 2016.

Oxfeld, Jesse. "Tiger Woods Earns 83 Times More Money Endorsing Things Than Playing Golf." AdWeek. N.p., 30 June 2015. Web. 02 Apr. 2016.

Schafer27, Henry. "The Value of Celebrity Endorsements." Q Scores Blog. N.p., 27 Jan. 2014. Web. 02 Apr. 2016.

Weisenthal, Joe. "Accenture Completely Dumps Tiger Woods." Business Insider. Business Insider, Inc, 13 Dec. 2009. Web. 02 Apr. 2016.


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5 comments:

  1. Celebrity endorsements can be a risky choice for a company, even though they are sometimes beneficial. The risk of having a celebrity endorsement comes from the image of that celebrity, which then becomes the image of that company. I agree that the relationship between the celebrity and brand is important, but I think that the image and reputation of that celebrity is even more important. As you mentioned in your post, Tiger Woods serves as a great example of a celebrity whose image could have a negative impact on a company. The companies that dropped his endorsement deals after his cheating scandal were smart in doing so. I find it interesting that Nike chose to stay with Tiger Woods after the scandal, and think that much of this has to do with the relationship between the celebrity and the brand. In this case Nike still believed they benefited from endorsing Tiger Woods because he is “perceived to be compatible with the brand and the product category” (Schafer). Although there is a relationship between Woods for being a professional golfer and Nike for being a sports brand, I think that his negative image is the most influential factor for motivating purchase decisions.

    Sometimes companies can truly benefit from an endorsement deal with a celebrity whose image is credible. However this can be risky because the image of celebrities is occasionally subject to change overtime. I think Jessica Alba shows that a company can benefit from her credible image, but that it can also be hurt when that credibility is gone. As you mentioned this case is different because Jessica Alba’s image was negatively affected by the loss of credibility in her company. I think this is an interesting case because it shows that not only does the company put themselves at risk with endorsements, but so do the celebrities. This example is similar to the current complaints that have arisen about the company Fabletics, which is endorsed by Kate Hudson. Since Fabletic’s has been under fire for scamming customers, I wonder if customers have linked this negative image with Kate Hudson as well. Even though both Jessica Alba and Kate Hudson are credible, their endorsement deals could end up having a negative impact on their image.

    Since we have seen two cases where endorsement deals can negatively affect a company and a celebrity, it’s difficult to determine when endorsement deals are beneficial for both parties. I think it’s most effective when you have both a reliable and credible celebrity and company. I’m not surprised that in a study done by Billboard Taylor Swift was singled out “as the most marketable musician among young Americans.” Taylor Swift has always had a good and credible image, so she is great for marketing, and would be great to have as an endorsement. This might be different for someone like Kylie Jenner who doesn’t have the same image as Taylor Swift. Like you mentioned, Kylie Jenner has been in the media for her lip injections, which has influenced young woman to plump up their lips as well. Although this isn’t necessarily a negative image for Kylie, she may be more of a risk compared to Taylor Swift for an endorsement deal.


    Schafer27, Henry. "The Value of Celebrity Endorsements." Q Scores Blog. N.p., 27 Jan. 2014. Web. 02 Apr. 2016.

    "Taylor Swift Wins 'Most Marketable' in New Study, Followed By Justin Timberlake." Billboard. Billboard, 14 Jan. 2016. Web. 03 Apr. 2016.

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  3. I found your blog extremely interesting, especially in your beginning statements. I completely agree with you that celebrity endorsements are a great idea but that they can also cause problems with celebrities and companies.

    As you mention in the cases of Tiger Woods, celebrities can promote great products and people will be even more compelled to buy them because they see a familiar face. But a scandal like his affairs cannot only ruin their own reputation but a companies if they stand by the celebrity. This made me think of the scandal that happened a few year later involving Paula Deen when she went through a racism scandal. Despite having a previously great reputation and being an extremely talented cook and putting out good products she was was dropped from her endorsements. Her show was pulled from Food Network and cookware was taken off store shelves.

    It is important for companies to keep their image in good shape for business reasons. To keep it in good shape and increase sales getting a celebrity with a great reputation and large fan base is extremely important. They take looking to see how people view celebrities importantly. Billboard said, “Repucom scores celebrities on something called the Davie Brown Index, or DBI, which measured consumer views on 8,000 celebrities around the world.” (Billboard Staff) Celebrities with the best scores are the most marketable so one of the best moves is to get a great celebrity to with a good score to endorse them.

    Just having a popular celebrity as the face of a brand or product can increase sales immensely. As you mentioned Kylie Jenner who is famous for her full lips and great taste in makeup came out with her lip kit so that her fans could get the same look as her. Kylie has a good reputation and large following which is the key to her lip kits success. I have not heard great reviews of the product but no it continues to sell out as you mentioned.

    Another celebrity who is coming out with a new product line that will most likely be extremely successful based off her huge fan base is Beyonce. “Beyonce continues to run the world, this time decked out in athleisure threads from her new clothing line Ivy Park.” (Platon) Beyonce has come out with successful products in the past such as fragrances and brand deals with cosmetic companies. Despite Beyonce coming under some criticism recently for her Super Bowl halftime performance, I don’t think that has had a really negative effect on her. She is still going on tour to which people still bought tickets. Also I have seen a lot of hype about the new Ivy Park line so I will not be surprised if it sells out extremely quickly like the Kylie lip kits.

    Billboard Staff. “Taylor Swift Wins 'Most Marketable' in New Study, Followed By Justin Timberlake.” Billboard. 14 Jan. 2016. Web. 3 April. 2016.

    Platon, Adelle. “Beyonce Debuts Ivy Park Clothing Line.” Billboard. 31 Mar 2016. Web. 3 April 2016.

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  4. Markella Damianos

    Celebrities represent various ideals in society. When people look at them, they expect them to represent the ideals and not falter. Some of these ideas alone are beauty, trust, and status. Beauty is a very important representation of celebrities. People rely on this ideal and do everything in their power to look like these celebrities. Trust is another important representation. People trust celebrities because they are famous: “Taylor Swift has been singled out in a new study on live music partnerships as the most marketable musician among young Americans. According to London-based sports and media research outfit Repucom, millennials (and younger) like and trust the "Blank Space" singer more than any other artist out there, making her especially attractive to brands and marketers” (Billboard). Status is also important. People are more likely to buy something if a celebrity is endorsing rather than someone who is not famous. Advertisers and marketers know this and constantly use celebrities for their companies gain.
    If celebrities have these qualities, endorsers then continue to look for more. They want to ensure that their products will be represented well: “In effect, the objective is to determine the best possible "compatible fit" between the personality attributes of the celebrity and the image attributes of the brand -- yielding high awareness and impact against the intended consumer target” (Schafer). Companies from there look for celebrities who are “sensible and appealing, believable, appropriate, and motivating to the purchase decision” (Schafer). These qualities are known as the Q score. The Q scores help companies to make the right decision: “Q Scores identify the most enthusiastic consumers of a personality, character or licensed property, program, or brand. Derived from our data collection model of the Favorites Concept, the Q Scores measure of likeability is an important predictor of greater consumer involvement. Understanding how these consumers are impacted, enables clients to make the most informed decisions regarding their marketing, advertising, and media efforts” (Schafer). The Q Scores do not take into account that celebrities are humans too.
    Celebrities are just like everyday people in many ways. The biggest way is that they are human; they make mistakes. After Tiger Woods’ cheating scandal many companies kept him as an endorsement like Nike Golf, Rolex, etc. Other companies did not want their reputation to be tarnished or their profits to go down: “We no longer see a role for Tiger in our marketing efforts and have ended our relationship” a Gatorade spokeswoman said and “Accenture is straight-up saying that based on the events of the last couple weeks, he’s no longer a figure they want to be associated with” (Weisenthal). Tiger Woods is not the only celebrity who has faced backlash over their own actions or the actions of others when it comes to branding.

    As Sarah points out, there are many positive outcomes of celebrity branding and endorsements. There also many negative outcomes. Personally, I think that if you do not agree with a celebrity who is endorsing a product or the product just do not use it. You do not need a celebrity to guide you, but everyone is not me. They like knowing that a celebrity uses a product; they feel closer to them. I think when it comes to celebrity endorsements that companies and people cannot only rely on a celebrity’s reputation and credibility. They need to remember that they are human.


    Works Cited:

    Billboard Staff. "Taylor Swift Winds 'Most Marketable' in New Study, Followed by Justin Timberlake." Billboard. Billboard, 14 Jan. 2016. Web. 4 Apr. 2016. .

    Schafer27, Henry. “The Value of Celebrity Endorsements.” Q Scores Blog. N.p., 27 Jan. 2014. Web. 04 Apr. 2016.

    Weisenthal, Joe. “Accenture Completely Dumps Tiger Woods.” Business Insider. Business Insider, Inc, 13 Dec. 2009. Web. 04 Apr. 2016.

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  5. Sarah, you point out the flaws in the system of celebrity endorsements and how things can go wrong in two ways: A celebrity who is involved in a scandal inevitably projects their inappropriate actions and reputation on a brand. This steers consumers to associate a negative person and idea to a company that did nothing to deserve it, and vice versa. If a company messes up, the celebs who are linked to them by endorsements will be pin-pointed as having some involvement or for possessing the dishonest/corrupt qualities, even though they had nothing to do with the issue. Because when one of these things happens, like the Tiger Woods example you mentioned, everyone knows about it and it is exploited to the extreme. Another example would be the Subway Scandal; when the infamous (ex) Subway spokesman Jared Fogle was charged with child pornography offenses, everyone was talking about it! But what about the companies and the celebrities that do the endorsement deals extremely well?

    Pop singer Katy Perry is a great example of a celebrity endorser. This year Perry is sitting pretty at number three on Forbes 100 Top Highest-Paid Celebrities list, earning a total of $135 million (Bacardi). Her Prismatic World Tour can be attributed for most of her earnings but her strong and perfectly assembled endorsement deals probably helped out too!

    She signed with CoverGirl in 2013, and then her increased popularity allowed her many other endorsements. She has an OPI nail polish collection, she was featured in H&M holiday ads last year, and she of course has her own perfume (what famous celeb doesn’t?). What makes this line-up of endorsements acceptable is the commonality of product categories and personality congruence. Just like QScore.com explains, “the objective is to determine the best possible ‘compatible fit’ between the personality attributes of the celebrity and the image attributes of the brand” (Schafer). Every company Perry represents has to do with beauty, fashion and cosmetics. These all work well with one another, making each endorsement more credible. What makes each deal even more successful is the alignment with Perry on a personal level. Katy Perry is known to be this outgoing and bubbly girly-girl with a unique fashion sense. When I think of her I think bright lipstick, neon clothes, funky costumes, and a fun time. The collections she endorses always match her energetic and colorful personality (literally). The line of OPI nail polish features colors that are named after her songs, such as “Teenage Dream,” and “Last Friday Night,” and just like you’d picture, they are bright and full of sparkles! Now let’s hope Perry can stay out of trouble, or else these deals may end up like that of Tiger Woods (although only earning $70 mill after all the bad publicity isn’t much to complain about).

    Works Cited:
    Bacardi, Francesca. "Forbes' Top 100 Highest-Paid Celebs List Might Surprise You." E! Online. N.p., 29 June 2015. Web. 05 Apr. 2016.

    Schafer, Henry. "The Value of Celebrity Endorsements." Q Scores Blog. N.p., 27 Jan. 2014. Web. 05 Apr. 2016.

    ReplyDelete