1. How to Sell with Celebrities, (especially Tiger Woods) University of Navarra Sanjeev Nath

2. “One approving nod from a famous face can translate into millions in brand sales.” www.etstrategicmarketing.com

3. What do they Advertise? David Beckham –V–Vodaphone, Pepsi, Real Madrid Annika Sorenstam –C–Calloway Golf, Mercedes Benz Michael Jordan –N–Nike, Gatorade, Hanes Tiger Woods –B–Buick, EA, Nike

4. Why do Stars Make Sense? What do you think?

5. Why do Stars Make Sense? Establishes credibility for target audience –Creates a sense of trust –Great for new products, especially from an established company Attracts attention –Breaks through hundreds of advertisements making the brand more easily visable

6. Why do Stars Make Sense? Associative Benefit –If the celebrity uses the product and improves, so will the consumer Psychographic Benefit –Since stars are loved, the feeling toward them may translate to the product Imitating the favorite sports or movie star –“I am Tiger Woods.”

7. Why do Stars Make Sense? Demographic Connect –Reaches a specific target audience based on… –Age, gender, wealth, geography Mass Appeal –Universal, able to reach more demographic audiences

8. Critics Against Celebrity Ads Why do you think celebrities are sometimes a bad idea?

9. Critics Against Celebrity Ads Brands need to have an identity –The product must stand for something, and the celebrity should sell what the product stands for “I use this product, and so should you,” does not work –Customers are now receiving more information from a variety of sources: –Internet, consumer awareness groups, competitors

10. Why Celebrity Ads Fail Improper Positioning –Relying on the celebrity name only does not work: “Just because I use it, everyone should. No matter what the product is.” Brand Celebrity Disconnect –The celebrity does not match the product –E.g. Britney Spears for a Toyota family car Soluna Vios.

11. Why Celebrity Ads Fail Clutter Flutter –Too many celebrities doing advertisements reduces the advantage of this technique –The same celebrity advertises many products Dissatisfaction with the Product Quality –Quality is more important than style –No celebrity can sell a flat soccer ball

12. Why Celebrity Ads Fail Confusion Skepticism –Remembering what the celebrity is advertising Celebrity is so funny/interesting, the product is lost Skeptical Questions: –Is it possible that the celebrity was helped this much by the product? –How much did the company pay the person to join?

13. Risks with Celebrities Celebrity Mistakes –Trouble with the law/drugs, scandals –E.g. Magic Johnson HIV issue Company Reaction to mistakes –Continuing w/celebrity may affect the image (Guilty by association) –Finding a new celebrity is very expensive Company may already be defined by celebrity

14. Hedging the Risk Look for perfect criminal and personal record Try to use more than one celebrity –Pepsi: Several Cricket, Basketball, and Film stars Avoid the Force-Fit

15. Avoiding the Force Fit Choose the celebrity based on the product –Never choose the celebrity and design the message around them –The celebrity is not the ad, rather the means of communicating a specific message Add a celebrity after developing identity –Avoid using advertising to create the identity –Protects against celebrity failures

16. So Why a Tiger? Why is Tiger Woods a marketers dream?

17. So Why a Tiger? Many believe that Tiger Woods is a Marketers Dream Let’s look at his strong relationships with the products/companies that he sponsors. We will focus mainly on Nike Golf

18. Tiger plays golf... Golf –Number 1 Player in the world for many years –Recognized as one of the best players in history –Well respected by his competitors Player of the Year Title is chosen by the players

19. Tiger works with good people... Companies –Contain own strong identities: Buick, EA, Nike –Nike: More than one celebrity If he fails, the company may not –Tiger’s association with one company helps sell products for other companies (association) E.g. Wears a Nike hat in other commercials –Companies are all associated with Golf Buick Classic Golf Tournament EA Sports Golf Game

20. Tiger’s Product Mix Age 5Age 95Age 45

21. Tiger hits the rich and poor... Good two parent family Father African American, Mother is from Thailand Family was not wealthy Beautiful Wife Model from Swedan Good looking, very smart Attended Stanford, Writers often comment about his intellect Name and face are easy to recognize Clean criminal & personal record

22. Tiger is liked by bad golfers... Tiger supports a high quality product Poor golfers (golfers starting out) –Will try anything to improve their game –Do not know what brand to choose between 30 –Became interested in golf because of Tiger Woods –Tiger Woods products are stylish –May own the Tiger Woods video game –May want to “be like Tiger.”

23. Tiger is liked by good golfers... Tiger supports a high quality product Strong golfers (great players) –Often look for a new edge –May own a Buick or other Tiger sponsored products Feel of a champion (emotional connect) –Tiger’s clubs and ball are customized but… Not everyone knows this fact

24. Everyone likes our Tiger... Low Wealth High Wealth Poor Golfers Strong Golfers

25. Nike Golf Ball Market Share How much ($) is Tiger worth? Assume –1€ = $1.30 –.77€ =$1.00

26. Nike Golf Ball Market Share

27. Golf balls contain the 2nd most lucractive industry margins ($500 million annually) Since Tiger joined, golf balls have earned Nike $72 million GM on a $100 million contract Note: Tiger sells other Nike products besides golf balls

28. Conclusion: It’s about... Celebrities can communicate, but not save a product! Tiger is a fit for his products, better than anyone else out there today.

29. Major Sources www.estrategicmarketing.com www.forbes.com www.money.cnn.com www.espn.com www.indiantelevision.com