Role of celebrity endorsement in luxury brand management

By Priya Chetty on April 1, 2012

An important practice for promoting luxury brand is the celebrity endorsements. It is very necessary because the celebrity endorsements are a big awareness of brand developing tool for new brands. This endorsement helps the brand marketers to re-position and position their occurring brands.

The celebrities are used to restore viability and return to permanent brands. The celebrities are also used to develop extensive opportunities for luxury brands and also promote appeal and brand’s products. There are many ways which the celebrities can be used to either show some connection to the brand or endorse a luxury fashion brand (Moor, 2007; Kevin, 2008). When the luxury brand marketers use a celebrity it portrays a different brand personality and it must be for a strategic need such as new launch of product, brand re-positioning and extension of brand. When the personality of a celebrity matches that of a brand the result is always a brand image enhancement. The most important thing for upcoming and new luxury brands is that the celebrity must not overshadow the brand. Already many established luxury brands have powerful personalities of brand making it a challenge for celebrities to brighten the brand. However some other brands that are yet to ascertain a high level of strength of brand have to be careful in selecting a celebrity whose strength does not go beyond the brand. The celebrity must have lasting and fixedness appeal. This means that the celebrity must maintain the sustainability and maintain their career and image successfully.

The success of a celebrity endorsement strategy is always based on how successful a celebrity’s role and career as a star is projected to be. This is related to the projections of sales forecast which the companies make using current and previous flows of cash. Many stars who have been successful in their careers for many years at the same time lack appeal and constancy which cannot be avoided if they are to endorse a luxury brand (Belch, Belch and Purani, 2009). Thus celebrity endorsement facilitates an increased expectation level of customer and this expectation must be met and exceed constantly

References

  • Moor L (2007), The rise of brands, Oxford International Publishers, USA.
  • Kevin K (2008), Best Practices Cases in Branding, Pearson Education , New Delhi.
  • Belch M A, Belch G E and Purani K (2009), Advertising and Promotion, Tata McGraw Hill, New York.

Priya is the co-founder and Managing Partner of Project Guru, a research and analytics firm based in Gurgaon. She is responsible for the human resource planning and operations functions. Her expertise in analytics has been used in a number of service-based industries like education and financial services.

Her foundational educational is from St. Xaviers High School (Mumbai). She also holds MBA degree in Marketing and Finance from the Indian Institute of Planning and Management, Delhi (2008).

Some of the notable projects she has worked on include:

  • Using systems thinking to improve sustainability in operations: A study carried out in Malaysia in partnership with Universiti Kuala Lumpur.
  • Assessing customer satisfaction with in-house doctors of Jiva Ayurveda (a project executed for the company)
  • Predicting the potential impact of green hydrogen microgirds (A project executed for the Government of South Africa)

She is a key contributor to the in-house research platform Knowledge Tank.

She currently holds over 300 citations from her contributions to the platform.

She has also been a guest speaker at various institutes such as JIMS (Delhi), BPIT (Delhi), and SVU (Tirupati).

 

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