The Siyaram Celebrity Endorsement Experience

The Celebrity Endorsement Issue Contd...

Another peril associated with celebrity endorsement is the 'vampire effect,' when the celebrity overshadows the brand. Also, whether the celebrity endorsing a brand actually uses the brand or not is an issue of concern. For instance, if a celebrity endorsing Pepsi is seen drinking Coke, it can reflect very badly on the brand being endorsed.

The Aftermath

Cronje had to resign from the South African team and was barred from playing cricket ever again. In South Africa, the Spur Restaurant Chain in Johannesburg ended a multi-million rand⁴-advertising contract with Cronje. The controversy heated up in the next few weeks, with many more Indian and international cricket players being named as parties to illegal match fixing. It was reported that the Board of Control for Cricket in India (BCCI) and the Mumbai/Dubai underworld were also involved in the scandal.

There were even rumors of South Africa and India suspending diplomatic ties. The Indian companies who sponsored cricket matches and utilized cricket players as endorsers were however, reported to be unfazed by the developments. Asserting that the J.Hampstead association with sports (and cricket) would continue, Singh commented, "Let's not kill the sport for one moronic guy."

By the end of the year, the Cronje scandal seemed to have died a natural death and cricket sponsorship by Indian corporates continued. Siyaram meanwhile, revealed its plans to achieve a turnover of Rs 4 billion for the fiscal 2001-02. J.Hampstead's contribution to the turnover was expected to rise from Rs 400 million in 1999-00 to Rs 750 million.

In September 2001, the company launched a new campaign for J.Hampstead, with the new baseline 'One World One Fabric.' The campaign did not feature any sport or celebrity. Instead, international models were featured to reinforce the fabric's global appeal. Media analysts were quick to point out that having learnt its lessons from the Leander/Bhupati and Cronje issues, Siyaram was deliberately trying to 'play it safe' this time around by avoiding celebrity endorsements for J.Hampstead.

4] The currency of South Africa.

Case Details

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

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