Perils of Celebrity Endorsements - The Siyaram Example



Case Code : CLMM028
Publication date : 2005
Subject : Marketing Management
Industry : Textile
Length : 04 Pages
Price : Rs. 100

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Key words:

Hansie Cronje, South African Cricket Team, Siyaram, J. Hampstead, Celebrity Endorsement, Media Plans, Suiting and Shirting Market, Distributor Network, 'Match-Fixing' Scandal, Leander Paes, Mahesh Bhupati, Positioning, Premium Segment, Brand Ambassadors, Cricket, Percept, Brand Endorsements


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Siyaram Silk Mills Ltd. (Siyaram), is one of India's leading textile companies. The company was badly affected by the match fixing controversy involving Hansie Cronje, captain of the South African cricket team in 2000, as he was one of the key celebrity endorsers for Siyaram's J. Hampstead brand of clothing. The caselet discusses the measures taken by the company to reduce the impact of the controversy. It examines the brand building efforts of Siyaram for its J. Hampstead brand of clothing.


   Celebrity endorsements in India
   Marketing of textiles in India
   Pitfalls of celebrity endorsements
   Crisis management in marketing


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 on 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 US$ 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...

Questions for Discussion:

1. As a media planner, comment on the efficacy of celebrity endorsements in general and about their effectiveness in India in particular. Do you think advertisement agencies use these campaigns because they are an easy way of attracting attention?

2. How can a company effectively promote a product using celebrity endorsements?