Celebrity Endorsement Essay

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EFFECTIVENESS OF CELEBRITY ENDORSEMENT IN PASSENGER CAR SEGMENT I have always wondered if celebrity endorsements really work or should work in case of automobile companies in India. A car purchase in India is the second biggest investment that anyone makes after his/her home and unlike a home, a car is a depreciating asset, hence the decision of buying a particular car or a brand will come after a lot of deliberation, consulting and discussions. It is also the reason that most of us overlook many a things just to play safe and stick with a particular brand, something which has worked really well for Maruti Suzuki. Celebrity endorsement involves astronomical amounts of money and that money can be well spent in pricing the car even more competitively or improving the infrastructure and the after sales support. One might also argue that celebrity endorsement worked in favour of Hyundai for its small hatchback Santro. The success of the Santro is partly attributed to the fact that it was endorsed by Shahrukh Khan but then we also have examples like Yamaha India which used John Abraham, Bajaj using Jackie Chan for its Discover campaign and Chevrolet India who must have spent huge amounts to take Saif Ali Khan and Rani Mukherjee on board. The Shah Rukh Khan and Hyundai is a one off case. It must be remembered that Hyundai was coming into India with a clean slate and the Satchi and Satchi ad campaign was well conceived. If we remember it was all about convincing SRK to endorse their product in the first case. LML roped in the same SRK to sell their products at the time when they were trying to push sales with their Freedom and CRD 100 models. They did not sell. Obviously the Hyundai success cannot be put down to SRK alone. GM, LML and Yamaha have been underperforming companies and none of the celebrities could do anything about it. Sachin Tendulkar could do nothing

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