With inspiration from Hannah Martin’s Blog.
http://www.smartmoney.com/spend/family-money/do-celebrity-endorsements-work-1300481444531/
As Hannah Martin had stated in her blog, Jane Lynch is the Healthy Choice, celebrity endorsements do help companies reach out to consumers. In fact, many companies have done this; Adidas, Nike, Pepsi, to name a few have all utilized celebrity endorsements to help drive sales. And it works, to a certain extent.
As stated in a recent research study, if a celebrity endorses a product, sales will increase, by an average of 4%. Though this may not seem like much, the celebrity’s brand resonates in the consumers mind.
Take Nike for example.
Tiger Woods has long been a celebrity brand for Nike, and their products are often associated with the pro golfer. Nike has always been a big brand, but because Tiger Woods is the face of it, consumers feel the need tobe part of the “rich and famous” culture, as stated in the article.
But what if there was something that happened to the Celebrity? Say Tiger Woods is accused of being a part of some sort of scandal. What would happen? Nike knows that Tiger Woods is the most followed golfer on earth, and if something were to hurt the celebrity that endorses their products, the company must act. And quick.
Consumers do not want to buy into a brand that is associated with negative publicity. As such, Nike pulled their sponsorship from Tiger shortly after the incident had occured back in 2010. This move barely moved Nike’s sales numbers, as they acted fast and knew what to do in the market. (http://www.thestreet.com/story/10705842/tiger-woods-barely-dents-nike-sales.html)
So what is the answer in terms of celebrity endorsements? What should a company do to increase sales? I believe that Celebrity endorsement really does work, and that as long as a company (like Nike) is smart about it, they can take advantage of a large increase in sales because of it.
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