| Philippine Business Magazine:
Volume 10 No. 8 - Cover |
The Celebrity Factor
The right celebrities can help boost sales of quality products |
In this exciting world of rising consumerism, nothing is probably more important than the brand. At the heart of every marketing campaign is the brand — the seal that communicates everything that the product stands for and is supposed to be to the consumer.
Even in this age of growing customer sophistication, nothing imparts a more powerful message about a brand than a satisfied customer. More often than not, this message achieves greater strength when the satisfied customer happens to be a celebrity.
Celebrity endorsers are nothing new or fancy. For the longest time, companies have used and still continue to use them. Think Michael Jackson and Britney Spears brandishing Pepsi and Michael Jordan flaunting Coke.
In endorsing an item, these celebrities lend a little of themselves to the product — hip stars push hip products, and quirky characters sell quirky products. In the Philippines, the imprimatur of a celebrity can spell the difference between a good and a great brand. Not only does the endorser lend credibility to an otherwise unknown product, it actually gains recognition as the star’s product of choice. In a country where movie personalities are revered much more than politicians and businessmen, this can spell instant success for a product.
Celebrity Boost
Selecta Ice Cream’s strong comeback in the market ten years ago is sterling proof of how celebrities can bring instant life to a moribund product. Selecta was a dying brand when RFM Corporation bought it in a bid to contest Magnolia’s monopoly of the Philippine ice cream market.
It was, for all intents and purposes, a lopsided battle with the odds stacked heavily against Selecta. Magnolia was an established product with a strong distribution network and brand recall that was difficult to match. Selecta, in contrast, was almost like a distant memory with hardly a presence in any of the retail chains.
One advertising feat, however, would change the Philippine ice cream industry overnight. In a stroke of casting genius, Selecta enlisted movie actors Sharon Cuneta and Aga Muhlach, then the hottest stars, to appear in back-to-back commercials for its ice cream collection. The 30-seconders featured each one relishing the richness of Selecta ice cream.
The day after the commercials aired, retail chains saw Selecta Ice Cream flying off the shelves. Within a week from airing, Selecta managed to double sales. So strong was brand recall that, riding on this, the company managed to launch various novelty items that year. Within that same year, Selecta managed to eat up almost half of its competitor’s market share, and gained market leadership in some markets. Today, the ice cream market is evenly divided between the two.
Indeed, celebrity endorsers can be formidable partners for those who are seeking to increase their market share, and even those attempting to build new markets. A case in point is the dynamic feminine wash market, which, for a long time, languished as a very specialized segment of the feminine hygiene market. As early as two years ago, feminine wash was viewed as medicinal in nature and, owing to this, had a limited market. Owing to its delicate nature, feminine wash was hardly advertised.
It took Pascual Laboratories to challenge this mindset by putting a face on feminine wash. Dina Bonnevie came out to declare that she used Betadine feminine wash, a move that enabled Pascual to almost quadruple sales from its low base. “Dina Bonnevie was chosen to endorse Betadine Feminine Wash because we wanted to convey the message that we had a feminine product that was strong and medicated. It is a product that had medicinal and therapeutic value and not a cosmetic. Dina exemplified that intelligent personality of a woman who knows what she needs,” said Marie Claire Carlos of the marketing department of Pascual Consumer Healthcare Division.
More importantly, the advertisement pushed feminine wash into the consciousness of the Filipina consumer. Eventually, United Laboratories (Unilab) exploited this new consciousness by launching a product, ph Care, into the mainstream retail market. A simple tagline delivered by Sharon Cuneta made feminine wash a necessity among females. Thanks to Cuneta, Unilab is believed to have more than doubled ph Care’s market share. It has also built a new product category altogether. Today, shelf space dedicated to feminine products is much greater than what they used to be two years ago, pointing to the viability of the segment.
Beyond creating markets, celebrity endorsers are effective when competition is stiff, even in highly commoditized markets. Pharmaceutical companies are best known for using celebrity endorsers to defend against competitors, almost always with good results. In pushing vitamin C brand Potencee, for example, Pascual Laboratories had to deal with the strength of its competitor, Cecon. To give itself much-needed ammunition, its marketing team turned to Aga Muhlach, who helped sales grow by 60% following his endorsement. The advertising campaign, said Ms. Carlos, “was supported by heavy trade promo activities to provide synergy to the entire campaign.” She added that well after the contract ended, Potencee continued to remain strong in the distribution channels, proof that the right celebrity endorsers can provide a brand the vigor it needs.
The Right Appeal
Of course, some celebrities are more bankable than others. A few appeal specifically to a certain segment of the market. Teeny boppers Jolina Magdangal and Judy Ann Santos, and lately, Christine Hermosa and Bea Alonzo, generally pull in the mass market, the biggest audience of their soaps and TV shows. Among themselves, they have managed to endorse computer universities and schools, sanitary napkins, sardines, sunglasses, clothes, bags, footwear— and the list goes on.
Few, though, have a universal, timeless appeal. These are the celebrities who manage to sell all sorts of products because they are not boxed in by trends or eras. Being so, they can successfully reach out to all segments of the market, from the AB crowd all the way to the mass market, who seem to put weight on what it is they have to say.
Aga Muhlach, Sharon Cuneta, and Kris Aquino fall into this category. These artists are known for their golden touch that somehow gets shoppers to opt for the products they endorse. Apparently, the audience perceives them to be credible, wholesome, intelligent, and trustworthy enough to believe them.
So great is their appeal that the largest companies in the Philippines see them as partners in their marketing campaigns. Jollibee, McDonald’s, Coca-cola, Procter & Gamble, Unilever, San Miguel — almost every company among the top 100 in the country has, at one time or another, turned to a celebrity to give it the marketing boost it needed.
“Aga Muhlach has a very strong appeal for the broad C and D markets; he is highly credible especially among mothers,” said Ms. Carlos, who believes in the power of celebrities to reach out to reach the broad market.
The belief in Muhlach is shared by several other companies, among them Jollibee, which inked a multimillion peso deal with the talent, said to be among the biggest deals in the industry. Basic Advertising President Tere Filipinia continues to be amazed at Muhlach’s unmatched appeal to children who look at him as an uncle. An advertisement showing Muhlach bringing toys to kids has obviously endeared him to both mothers and children who listen to what he says.
Almost every company battling for market leadership would have either Muhlach or Cuneta as endorser. McDonald’s manages to engage Jollibee in a strong war with the endorsement of Sharon Cuneta, probably the only one who can go head-on against Muhlach. The telecommunications war also has celebrity endorsers on both ends. As always, Aga Muhlach is on one side, pushing Touch Mobile – a Globe Telecom company – alongside wife Charlene Gonzales. He goes up against veteran comedian Dolphy, who endorses Smart’s Talk and Text mobile service.
Other products Muhlach endorses are Argentina corned beef, Moo (Selecta’s chocolate drink), Bobson jeans, and AGFA film.
Cuneta, on the other hand, has a strong appeal among women. Most of the products she endorses are those that would have mothers as primary target market, among them, Tide detergent and Alaska condensed milk. This does not, in any way, diminish her credibility with other market segments. In fact, she has also endorsed Coke and WG&A.
Another celebrity worth looking at is Kris Aquino, daughter of former President Corazon Aquino, who seems to be well on her way to being another top endorser despite the many controversies surrounding her. Unlike Muhlach and Cuneta with more wholesome and subdued images, Aquino is seen as a dynamo, a trailblazer, and an adventurer. Such candor and spirit have earned her a good place in consumer’s hearts, and today she is the face behind Smart, Purefoods’ chunky corned beef, Greenex tile cleaner, Purefoods chicken nuggets, Swatch watches, Eurotiles floor tiles, Leonardo bags and Kissa papaya soap.
Quality still a Factor
There is no question that celebrity endorsers can effectively push a product. “The risk is high on our part whenever we get a talent; but the benefits outweigh the costs involved, provided we get the right talent,” says Ms. Carlos.
Much as they can add fire to any marketing campaign it would be naïve, however, to think that a celebrity is enough to make a product. No celebrity can lend credence to a bad product or a poorly executed plan. The fit between the endorser and the product will also have to be evident. It will probably be foolhardy to let Muhlach endorse guns. The best advertising campaigns will always take into consideration the fundamental concerns of marketing — product, place, people, and price. But, among those products that offer the client a good value proposition, celebrity endorsers are heaven-sent.
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