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Saturday 24 August 2013

Celebrity Endorsements: A Gimmick for Product Pricing

Dear Readers,

I was fortunate to skip my exam today (It was Maths. Don't judge me). But instead I had a wonderful representing my college St. Andrew's at the Debate Competition organized by Rotary Club. Incidentally I won Runner-up Best Speaker. The cherry on the cake was that our Senior College team won Best Speaker as well as Best Team. Kudos guys and huge thank you to our beloved Raina Miss!
  
What I want to share with you guys today is the speech that helped me win 2nd place. Hope you guys like it!

Celebrity Endorsements: A Gimmick for product pricing
Good morning Ladies and Gentlemen. Today I shall speak against the motion at hand and emphasis the need that brands have for Celebrity Endorsement. And this is a dire need mind you. Ever since the Mad Men days, the ad industry has been using celebrities to endorse products. Chanel had Marilyn Monroe, Nike had Michael Jordan, Pepsi had Britney Spears, You may ask for deals closer to home so I’ll cite Amitabh Bachchan and Cadbury. Aamir Khan and Coke, and the list go on... Companies put in millions of dollars to get these famous and well-liked sponsors, but are it really worth it? Well since they have made billions in sales, don’t you think something was done correct?

The concept goes back to using credibility and attractiveness to persuade a point of view. Simple psychology tells us that if someone is appealing and trustworthy, it's easier to relate to them and be on their side. What an endorsee, the brand, is trying to do is transfer the positive traits associated with a celebrity to the product that the celebrity is endorsing. Also a brand is seeking to connect on a personal level with consumers to get them to identify with the brand by employing the celebrity status of “Stars” that the consumer holds in high regard.

But what I hear often is that Celebrity endorsements are a gimmick just to spike short term sales to boost stock prices. As you surely must have heard, “Every little move in the market is the cause for losing or earning million on the market each day”. I see the point respected proposition and I will counter with one question. What if a celebrity endorsement can earn you 1.75 billion dollars globally? And what if this endorsement is not a mere couple of years but is in fact 25+ years in existence? Will that convince you? Because that is exactly the stats by chosen example will display.

The best way to highlight this is to put before you perhaps the greatest endorsement partnership in sports, nay the entire marketing world is the evergreen Nike- Michael Jordan partnership. Jordan partnered with Nike after being drafted by the Bulls out of North Carolina in 1984. The original five-year deal was worth $500,000 annually, plus royalties.  

And He came along at a time when Nike, a struggling company, was suddenly willing to gamble millions, far more than had ever been gambled, on an untested NBA player, giving him an unprecedented deal before he had even played an NBA game.
“Nike turned its full efforts to marketing Jordan. Then suddenly he emerged as this amazingly athletic figure, wearing a shoe that was banned by the NBA.
People sometimes forget that part of the story. David Stern and the NBA banned the first pair of Air Jordan’s in 1985, just weeks before the start of the season, because they were completely Bulls red and black with no white on them. There is no better marketing endorsement than having the man say, “you can’t have it.” That shoe and that moment spawned today’s sneaker head cultureJordan’s play was the key. It started because of his athleticism, his “jumpman” dunks that went on to become the Jordan Brand logo. He could fly, and Spike Lee was yelling “It’s gotta be the shoes.” But everything grew exponentially as Jordan started to win and win big. He became the best player in the game and owned his generation, booming the popularity of the NBA.Also booming the sales of Nike and his shoes. Because everyone wanted to “Be Like Mike.” They paid Jordan so much, and his shoes sold so well that he essentially became a partner in Nike long before they officially recognized it. He became enmeshed in culture like no athlete before or after.And with him, so did Nike.

But I didn’t forget the stats I promised you’ll! The terms of Jordan’s current deal with Nike are a closely guarded secret, but royalties now generate more than $60 million annually for MJ. Nearly 30 years later, Nike owns the basketball shoe market. Owns it. When you factor in all the Nike brands — Nike, Jordan, Converse — you are talking nearly 95 percent of the basketball shoe market. Nike signed up current NBA stars Carmelo Anthony, Blake Griffin and Chris Paul, as well as non-NBAers like Derek Jeter and Nascar’s Denny Hamlin for the Jordan Brand. But the star is still Jordan and the Air Jordan franchise.
Celebrities are a short term thing? LeBron James is the top-seller among current NBA players with signature shoe deals, but Jordan outsold James by a 6 to 1 margin in 2012 in the U.S. That warrants an “in your face”!



And if you are not the type who is impressed with numbers but by sentiments and feelings, Michael Jordan turned 50 recently and yet his legacy and his shoes are such that when you talk to players coming out of college about their goals in the NBA, becoming part of the Jordan Brand family still comes up a lot. I mean with most of them. Players who were in kindergarten the last time Jordan won a ring.

What does this teach us? It is clearly not about just sticking a celebrity in a commercial. Just having a Ranbir Kapoor in your ad will not guarantee the Nissan Micra becoming the next Maruti 800. There is a need to build a brand and not just a commercial around the celebrity. Nike signed up Jordon before all his exploits in the NBA and sponsored him through hell and high water.

Sinking brands have been revived by the Midas touch of celebrity endorsers. Cadbury was given CPR by Mr. Amitabh Bachchan.  Coca-Cola decided to begin celebrity endorsements in India and the result was a ubiquitously appealing Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra advertising was only due to the sensuous Aishwarya. The Parker pen brand, which by itself commands equity, used Amitabh Bachchan to revitalize the brand in India.


I have let the facts speak for themselves (Using my mouth of course!) Brands do owe quite a bit to Celebrity Endorsements and it is the same the other way around. In this jungle of cluttering information being hurled at us from all directions, it is posters of David Beckham at Times Square that get more ogling eyes than most. Thank you.


Hope that wasn't very boring. Until next time, Hast La Vista!
Yours Truly, 

Friday 23 August 2013

Disaster Management: India’s Preparedness

Dear Readers,

I have been away, busy with exams and competitions. So it is only fair that I share with you one of the reasons I was busy. In this post I will share with you a speech that won me 2nd place at an inter collegiate elocution competition this week. Hope you like it. And as usual feedback is more than welcome, it is appreciated.
Here goes.

Disaster Management: India’s Preparedness

We are not ignorant of what happened of what happened in Uttarakhand. We all know what a tragedy that was. I, Merwyn D’souza, will shed more light on the probability of such events in the future and how our Nation and the Government is most likely to deal with it.


Let me first say that the crux of my opinions here on in are based on a 3rd July article by the Times Of India Group titled, “Disaster management plans in a mess, govt admits”. This article was an absolute shocker in terms of absolute government negligence with regard to disaster management. It speaks of plans being submitted by the National Disaster Management Authority (NDMA) as far back as 2007 but the Home Ministry gave its usual lame excuses and blamed on a bureaucratic procedure.

But my dear audience, is this the kind of response we want to the horrific scenes we witnessed on TV during the Uttarakhand tragedy?  Is this the kind of attitude we want toward essential relief mechanisms. The issue is political of course but I feel the need to highlight an aspect that is often left unexplored. The social aspect. 

I experienced a tragedy myself in the form of the 2006 Mumbai floods. I was a kid in the 4th standard back then but it has left a last impression in my mind. I witnessed then a side to Mumbaikars that only manifests itself when we are in a spot of trouble. The caring Mumbaikar was on display on 26th July 2006 and I have seen glimpses of this caring side of the city even during the Terror attacks.



The issue at hand is of disaster management. Of how we can mitigate the damage in the aftermath. But before any government mechanism kicks in, it us - The caring neighbours, strangers, newfound Uncle, Aunty, Bhai and Bhen - Who comes to the rescue first. I have seen how ground floor residents in my building were driven to the upper floors of our 3 story building. We ourselves had not plenty in stock. After all nobody expects a floody out of nowhere, do we? But the improvised “Peas Pulav” that the Aunties of our building cooked up that night was a testament to how resilient a Nation we are.
In conclusion, NO WE ARE NOT PREPARED. not in the least for the natural disasters that Mother Nature throws at us. We are not relying on the Government to awake from its slumber being all drunk with its lust for power and money. But we the citizen are prepared to cook up our “Peas Pulavs” as loving fellow humans even though our Government doesn’t care.
Thank you.


So until next time, cheerio!
Yours Truly, 


 


Thursday 8 August 2013

Doctors v/s Businessmen

Dear Readers,

I'm back after a little break with something that I find interesting. I have had a longstanding debate (more like argument) with my friend from Podar, Miss Palak Sharma about who is more important, Doctors or Businessmen. This argument (I might as well drop the act of it being civil) has been so intense that we even quizzed random people at a Dominoes joint and that round went to Palak (There I said it!)

So as I was running out of topics I thought- Why not have this argument on a more public platform? So now I shall present the debate to you, dear Readers. Palak shall represent Doctors (being a medical aspirant) and I shall represent Businessmen (Being a Commercial aspirant){Is that even correct?}

So here is Palak's side-

Ahoy readers,Being a medical aspirant I’ve always had this protectiveness for my chosen career path. So, when one fine day some commerce kid comes along and questions its nobility and importance (referring to you here Merwyn), I consider it my duty to fight to uphold its dignity and honor.So now after hours of debating and arguing with no conclusion at all as both the sides are equally stubborn we leave it to you, dear Readers to settle our long standing argument.We’ve all heard of the saying “Health is Wealth”.One may have all the comforts and luxuries in life but it may all seem purposeless if one doesn’t have sound health.A doctor is the one who cures the ailing and distressed with utmost devotion, care and love. He/she is a savior and God to millions (Yes Merwyn, ‘God’). Hence, it is one of the most noblest and respected professions.A doctor studies for about 10-15 years because a scared look and a “let me Google that” isn’t what you want to hear from your doctor. But after so much of hard work including zombing through night shifts, enduring hours and hours of lectures, coming to peace with the idea of having absolutely no social life and accepting the company of disgusting, (hopefully) dead bodies, isn’t it a doctor's right to wish for, rather deserves, a more comfortable and luxurious lifestyle. So, why can’t he/she earn a little extra?In such a situation they become a doctor by profession but a businessman by necessity.“You may not be able to read a doctors handwriting on prescriptions, but you’ll notice his bills are neatly typewritten.”My point here is that commerce is everywhere and is a very integral part of our society.But the role of a doctor is also important as doctors ensure that you’re healthy enough to spend the money you earn.But finally, a doctor is a healer who extends his/her services selflessly and without any bias regardless of the apprehension about himself/herself catching up the infection. That’s why – The one in need is your doctor indeed (not a business man :P).And lastly here’s a suggestion to all,Never get on the bad side of doctors, as when they do turn evil they are the first among criminals, as they have the nerve and the knowledge.With that I rest my case



*Cue applause*
That was wonderful by Palak but my turn now.


"Doctors are God"
Leaving aside the sheer blasphemy in that sentence let me point out that I get it. Doctors play an integral part in society. The need for medical professionals is beyond reproach. The Hippocratic oath that they take is worthy of a standing ovation. But are Doctors in our modern time really keeping true to the oath that they take?
The Doctors have forgotten their roots. The personal touch in the doctor-patient relationship has evaporated. There were the times when we had "Family Doctors". Now the Doctor knows not the family by face but by the cash they are willing to spend. Where has their conscience regarding "carrying the profession forward" gone? It is part of their oath for heaven's sake! At least a businessman is consistent.
The sole aim of business is to earn profit. Though it may seem a selfish goal at first glance, we must remember that it all boils down to the money. These businessmen are the ones who rack it in. They maybe sitting in their mansions but they sprinkle around the joy in the form of jobs, charity and overall market stimulus.
Consider this- A nation full of sick businessmen is not going to be good but a nation full of health people with nobody leading them in the financial sector will be equally disastrous.
Lets me conclude with, a doctor spends all those years studying medicine but in the end he turns into a businessman and tries his best to rake in the money! Might as well be open about it, embrace the Dark Side.


This, my friends, is where we leave it for your consideration. Expect more of Palak Sharma's craziness on the blog because she is hilarious, is she not? So till I'm back next time to bore you again, Peace out.
Yours Truly,