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Slide 1: How to Sell with Celebrities, (especially Tiger Woods) University of Navarra Sanjeev Nath
Slide 2: “One approving nod from a famous face can translate into millions in brand sales.” www.etstrategicmarketing.com
Slide 3: What do they Advertise? • David Beckham – Vodaphone, Pepsi, Real Madrid • Annika Sorenstam – Calloway Golf, Mercedes Benz • Michael Jordan – Nike, Gatorade, Hanes • Tiger Woods – Buick, EA, Nike
Slide 4: Why do Stars Make Sense? • What do you think?
Slide 5: Why do Stars Make Sense? • Establishes credibility for target audience – Creates a sense of trust – Great for new products, especially from an established company • Attracts attention – Breaks through hundreds of advertisements making the brand more easily visable
Slide 6: Why do Stars Make Sense? • Associative Benefit – If the celebrity uses the product and improves, so will the consumer • Psychographic Benefit – Since stars are loved, the feeling toward them may translate to the product • Imitating the favorite sports or movie star – “I am Tiger Woods.”
Slide 7: Why do Stars Make Sense? • Demographic Connect – Reaches a specific target audience based on… – Age, gender, wealth, geography • Mass Appeal – Universal, able to reach more demographic audiences
Slide 8: Critics Against Celebrity Ads • Why do you think celebrities are sometimes a bad idea?
Slide 9: Critics Against Celebrity Ads • Brands need to have an identity – The product must stand for something, and the celebrity should sell what the product stands for • “I use this product, and so should you,” does not work – Customers are now receiving more information from a variety of sources: – Internet, consumer awareness groups, competitors
Slide 10: Why Celebrity Ads Fail • Improper Positioning – Relying on the celebrity name only does not work: • “Just because I use it, everyone should. No matter what the product is.” • Brand Celebrity Disconnect – The celebrity does not match the product – E.g. Britney Spears for a Toyota family car Soluna Vios.
Slide 11: Why Celebrity Ads Fail • Clutter Flutter – Too many celebrities doing advertisements reduces the advantage of this technique – The same celebrity advertises many products • Dissatisfaction with the Product Quality – Quality is more important than style – No celebrity can sell a flat soccer ball
Slide 12: Why Celebrity Ads Fail • Confusion Skepticism – Remembering what the celebrity is advertising • Celebrity is so funny/interesting, the product is lost • Skeptical Questions: – Is it possible that the celebrity was helped this much by the product? – How much did the company pay the person to join?
Slide 13: Risks with Celebrities • Celebrity Mistakes – Trouble with the law/drugs, scandals – E.g. Magic Johnson HIV issue • Company Reaction to mistakes – Continuing w/celebrity may affect the image (Guilty by association) – Finding a new celebrity is very expensive • Company may already be defined by celebrity
Slide 14: Hedging the Risk • Look for perfect criminal and personal record • Try to use more than one celebrity – Pepsi: Several Cricket, Basketball, and Film stars • Avoid the Force-Fit
Slide 15: Avoiding the Force Fit • Choose the celebrity based on the product – Never choose the celebrity and design the message around them – The celebrity is not the ad, rather the means of communicating a specific message • Add a celebrity after developing identity – Avoid using advertising to create the identity – Protects against celebrity failures
Slide 16: So Why a Tiger? • Why is Tiger Woods a marketers dream?
Slide 17: So Why a Tiger? • Many believe that Tiger Woods is a Marketers Dream • Let’s look at his strong relationships with the products/companies that he sponsors. We will focus mainly on Nike Golf
Slide 18: Tiger plays golf... • Golf – Number 1 Player in the world for many years – Recognized as one of the best players in history – Well respected by his competitors • Player of the Year Title is chosen by the players
Slide 19: Tiger works with good people... • Companies – Contain own strong identities: • Buick, EA, Nike – Nike: More than one celebrity • If he fails, the company may not – Tiger’s association with one company helps sell products for other companies (association) • E.g. Wears a Nike hat in other commercials – Companies are all associated with Golf • Buick Classic Golf Tournament • EA Sports Golf Game
Slide 20: Tiger’s Product Mix Age 5 Age 45 Age 95
Slide 21: Tiger hits the rich and poor... • Good two parent family • Father African American, Mother is from Thailand • Family was not wealthy • Beautiful Wife • Model from Swedan • Good looking, very smart • Attended Stanford, • Writers often comment about his intellect • Name and face are easy to recognize • Clean criminal & personal record
Slide 22: Tiger is liked by bad golfers... • Tiger supports a high quality product • Poor golfers (golfers starting out) – Will try anything to improve their game – Do not know what brand to choose between 30 – Became interested in golf because of Tiger Woods – Tiger Woods products are stylish – May own the Tiger Woods video game – May want to “be like Tiger.”
Slide 23: Tiger is liked by good golfers... • Tiger supports a high quality product • Strong golfers (great players) – Often look for a new edge – May own a Buick or other Tiger sponsored products • Feel of a champion (emotional connect) – Tiger’s clubs and ball are customized but… • Not everyone knows this fact
Slide 24: Everyone likes our Tiger... High Wealth Poor Golfers Strong Golfers Low Wealth
Slide 25: Nike Golf Ball Market Share • How much ($) is Tiger worth? • Assume – 1€ = $1.30 – .77€ =$1.00
Slide 26: Nike Golf Ball Market Share Nike Golf Ball Market Share Percentages 10 8 6 4 2 0 0 6.3 Market Share 9.5 1999 0 2001 6.3 2003 9.5 Market Share
Slide 27: Nike Golf Ball Market Share • Golf balls contain the 2nd most lucractive industry margins ($500 million annually) • Since Tiger joined, golf balls have earned Nike $72 million GM on a $100 million contract • Note: Tiger sells other Nike products besides golf balls Assumption: 60% Gross Margin 6% Nike Market Share
Slide 28: Conclusion: It’s about... • Celebrities can communicate, but not save a product! • Tiger is a fit for his products, better than anyone else out there today.
Slide 29: Major Sources • • • • • www.estrategicmarketing.com www.forbes.com www.money.cnn.com www.espn.com www.indiantelevision.com