The Siyaram Celebrity Endorsement Experience

            
 
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Case Details:

Case Code : MKTG018
Case Length : 7 Pages
Period : 1995-2001
Pub Date : 2001
Teaching Note : Available
Organization : Siyaram Silk Mills Ltd
Industry : Commodities - Traded Goods
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"We have enough of film stock for a whole year. Unfortunately we can't use them anymore."

- N Gangadhar, General Manager (Marketing), Siyaram Silk Mills, commenting on the withdrawal of the J Hampstead advertisement campaign, in April 2000.

The Cronje Scandal

In April 2000, the New Delhi police unearthed one of the biggest scandals ever to hit the world of cricket. While investigating a local corruption case, officials recorded phone conversations between Hansie Cronje (Cronje), the captain of the South African cricket team, and Sanjeev Chawla, a London-based Indian businessman.

The conversation in the tapes seemed to implicate both men in illegal betting on a match played in February 2000 in India. After initial denials, Cronje conceded that he had accepted $ 15,000 to fix the match . The news shocked both cricket fans and the media alike - Cronje's face was smeared with black paint on posters across the country.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Siyaram Silk Mills Ltd. (Siyaram), one of India's leading textile companies, was also affected badly by this controversy. Hansie Cronje was one of the key celebrity endorsers for Siyaram's J.Hampstead brand of clothing.

The campaign featuring Cronje had been running on the print, electronic and outdoor media from March 2000. Siyaram and its advertising agency, Percept, watched in dismay as their celebrity endorser turned into an internationally hated sportsman overnight.

The issue raised a heated debate in corporate and media circles regarding the perils of using celebrity endorsement. Percept sources commented, "This mess is horrible."Siyaram pulled down all the billboards featuring the entire South African team across the country. The J.Hampstead campaign was completely withdrawn, almost 20 days before it completed its scheduled run on hoardings and television...

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