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Tag: brand endorsements

  • Urban Indians are most likely to notice endorsements of mobile phones and clothes on social media

    Urban Indians are most likely to notice endorsements of mobile phones and clothes on social media

    Mumbai: Among the various categories of products and services endorsed by social media influencers, YouGov’s new research found that urban Indians are “a lot likely” to notice endorsements for mobile phones (46 per cent) and clothes (45 per cent).

    In comparison to this, each of the 38 per cent think they are a little likely to notice such endorsements, while 12 per cent and 14 per cent, respectively, think they are not at all influenced by such testimonials.

    25- to 34-year-olds are most likely among the different age groups to notice mobile phone endorsements by social media influencers (53 per cent); those in the age group of 35 to 44 years are most likely to take notice of endorsements for clothes (at 54 per cent).

    When it comes to groceries and food items, 39 per cent urban Indians claim they get influenced a lot by influencer endorsements, while for 37 per cent the influence is a little.

    For other categories, such as tech devices, media streaming services, healthcare products, out-of-home entertainment, cosmetics, air travel, and financial investments, the influence is more likely to be little than a lot.

    Data shows there is some polarity visible for categories such as video games and tickets for sporting events. While 24 per cent of urban Indians say they are very likely to notice such endorsements for each of the categories, just as many (28 per cent each) say they do not get influenced at all.

    Gambling and bookmaking services are the only categories where 42 per cent respondents are more likely to say they do not get influenced at all than the respective 31 per cent and 16 per cent say they get a little or a lot.

  • How brand Dhoni will fare post-retirement?

    How brand Dhoni will fare post-retirement?

    NEW DELHI: Former Indian cricket team captain, Mahendra Singh Dhoni, announced his retirement from international cricket last week via an emotional video on Instagram.  

    As soon as the news broke out, social media was abuzz with his name trending on top, not only netizens but brands also paid tribute to the iconic cricketers in their style. 

    Brands bid farewell to MS Dhoni for making India proud

    The ‘Captain Cool’ has always been a darling of brands and been able to attract audiences. He has endorsed brands across all categories. These include soap, insurance, two-wheeler, engine oil, used cars, and others. However, his brand value has taken a slight dip in the last few years. The announcement of Dhoni’s retirement brings us to the next big question – What will be the impact on the equity of brand Dhoni? Will this be the end of an era, or brands will continue to invest in Dhoni? 

    As per reports, between January 2019 to November 2019, Dhoni associated with 44 brands. If going by this year trend from January to March, Virat Kohli regained the top spot, while Mahi bagged the second spot in the list.

    Several experts believe that his brand value might not be affected as he will continue to play IPL. The former captain also has plans to associate himself with the international leagues, which may increase the brand value, depending on the situation.

    Dhoni was excluded from the Board of Control for Cricket in India’s (BCCI’s) annual contract list for October 2019 to September 2020.

    Even though he retired from Test cricket in 2014, but it never impacted his brand value.

    Let us closely look at how brand Dhoni has fared in the advertising world. In 2010, he topped the chart for celebrity endorsements on television during the first six months. According to the Adex survey of TAM Media Research, during the January to June period of 2010, Dhoni endorsed 24 brands on TV. As per Forbes data, Dhoni made $26.5 million (about Rs 200 crore) in 2010, and only a small portion of that payout, about $3.5 million (about Rs 26.4 crore), came directly from Dhoni's on-field play.

    In 2016, his net worth was at $31 million, and brand endorsements comprised a large part of this value. His total annual earnings from brand endorsements were between Rs 120 crore to Rs 150 crore at that time. 

    In 2018, the Duff & Phelps’ Celebrity brand value ranking valued Dhoni at $26.9 million placing him at 12th spot in terms of celebrity brand value.

    According to the same report, Dhoni was at the 9th spot with a brand value of $41.2 million in 2019. In the same year, he managed to retain the 5th spot on the Forbes India celebrity 100 lists.

    TRA Research CEO N. Chandramouli feels that whenever a sportsperson retires, their brand equity does fall as they have a limited shelf-life, both on and off the field. “This will not be very different for MS Dhoni also, but he still has a successful IPL career, which will give him a continued presence on the sporting field. His endorsement value started seeing a dip about six months ago, but he will still command a strong value till his IPL days.”

    Dhoni, earlier reportedly used to charge between Rs 8 – 12 crore for each endorsement. However, now experts feel this may come down to Rs 3.5 – 4 crore. 

    Chandramouli states, “As his visibility reduces on the field, with lesser engagements, a brand will calculate the ROI of his field presence, and associate if the ROI is justified. It is a cut-throat business and a difficult market. The endorsement value of a player is correlated to his success and presence.”

    There will be brands that would want to associate with the cricketer because of the trust he has built on and off the field, and this will pay off with more extended brand associations. 

    According to a report by ESP Properties, sports sponsorship in India grew a healthy 17 percent to Rs 9,000 crore in 2019. As per the last year's report, there were 70 new brand endorsement deals, of which cricketers clinched 50 deals. Dhoni pulled 63 per cent of the total brand endorsements. 

    On the other hand, Samsika Marketing Consultants chairman and managing director Jagdeep Kapoor has a distinct view as he believes Dhoni as a brand goes beyond cricket. His core values reflect life. “He is a unique brand property. The attributes, the passion, the zest for life are traits that good brands would like to associate with,” adds Kapoor.

    However, the audiences will miss the long-haired cricketer on the ground who can hit helicopter sixes and entertain them.

  • Saina Nehwal’s brand value set to soar with World No. 1 title

    Saina Nehwal’s brand value set to soar with World No. 1 title

    Soon after being crowned with the international title of World No. 1 badminton player, Indian shuttler Saina Nehwal went on to bag her maiden India Open Super Series title by defeating former world champion Ratchanok Intaton from Thailand.

     

    The two titles have indeed placed the Hisar born player on the global map as the game receives its due in the country. A swell up of her performances is also likely to contribute to her existing brand value, say sports marketers and celebrity marketers. However, not without adding a word of caution. Nehwal will have to continue with her existing pace to command a fat paycheck in the endorsement world.

     

    While prior to her consecutive wins, Nehwal commanded a price of Rs 70 lakh- 80 lakh for a one period deal according to industry experts, it could now easily touch up to Rs 1 crore–Rs 1.5 crore depending on how deep the brand’s pockets are.

     

    Celebrity and sports management firm, CAA KWAN COO Indranil Das Blah says that it is not just becoming the World Number one but also winning the Indian Open, which is a pinnacle no Indian born woman has achieved. “If you look at the current crop of female sports persons, there is no one remotely close to her in terms of achievement. So it will have a significant impact on her brand value, pricing and overall brand image,” he says.

     

    According to Blah, Nehwal has a strong story to tell because of her middle class back ground and therefore brands with a pan India appeal would latch on to her. “I don’t see her endorsing glamorous and niche brands but it could be brands that have a national interest and look at achieving women’s empowerment or women’s issues in the country,” he opines.

     

    Nehwal currently endorses and has been a part of brands across segments like Yonex, Fortune Cooking Oil, Indian Overseas Bank, Whisper sanitary napkins, Emami Fast Relief ointment, Herbalife health products, Top Ramen Noodles and Airtel 3G.

     

    According to media reports, Nehwal was signed by the telecom Airtel when she was world number three for less than Rs 1 crore. She had then won the Gold medal in the Commonwealth Games in 2010.

     

    Asset managing director at assetfzc.com Sanjay M Lal, a veteran with over 20 years of expertise in the field of brand building and sports management, says that in order to have a reasonably impactful brand value, Nehwal will have to maintain her present status for the next nine to 12 months. “While she has been consistently performing and is a star in Indian badminton, but to be world number one is a different ball game altogether,” informs Lal.

     

    For brands that are fence sitters and were wondering to choose between female sports persons like Sania Mirza or Saina Nehwal, the wins will make it easier to settle and close the deal for Nehwal. However, some feel that the cash jump will not be very significant unless a large brand that has not matured comes into play. This will be the first step for Nehwal on the brand value chain.

     

    Impact of her win on the game? Olympic Gold Quest (OGQ) CEO and former captain of Indian Hockey team Viren Rasquinha states that OGQ has been supporting the champion since 2009 and looked after the training aspect of Saina Nehwal. “Obviously its important to have  a role model and a great figure like Saina in every field. Because of her acheivement we hope that thousands of parents across the country will encourage  their kids, especilally their daughters to take to badminton.”

     

    Eureka Mobile Advertising senior vice president Viswanathan Ganapathy says, “There will definitely be a jump in the brand value. In the last few years, she has given global recognition to the game, which has happened after Prakash Padukone in 1980. Saina is a very good mix for an international and local brands as well and would be an ideal fit for a fitness product.”

     

    Ganapathy is of the opinion that Nehwal could ideally endorse brands like Complan and Horlicks, where the brand fit is perfect. Her consistent winning performances including the bronze medal at the 2012 London Olympics could make her as a relevant face for insurance brands too.

     

    It is important to note that when sports athletes and players sign an endorsement deal, they also ask the brand the kind of visibility they would gain. While Nehwal has placed Indian badminton on the global map, the domination of cricket continues as former cricket players like Kapil Dev still bag endorsement deals. It’s akin to how an industry expert, having worked with the likes of Yuvraj Singh and Zaheer Khan and was associated with Percept India, puts it, “Anything other than cricket is like a great Bollywood movie breaking even. But it will not belong to the Rs 100 crore club that the Khans belong to. She was signed with Herbal Life, which is American brand but what have they advertised? For a player other than in the field of cricket, you need an advertiser who gives you Rs 5 lakhs but does promotions worth of Rs 50 lakhs.”

     

    When the visibility falls flat, it goes against the marketing grain of celebrities. However, on an optimistic note, Lal adds that her winning titles consistently have proved that brand ‘Saina Nehwal’ holds great promise. Only time will tell the brands that will sign Nehwal for her promise in the future. For now, take a breather girl. You deserve it and thank you for giving India its due recognition.