How Scandals Affect Celebrities Endorsements Essay

Earlier this year, Kellogg dropped its sponsorship of Michael Phelps, the gold-medal swimmer, after he was photographed using a marijuana pipe at a party. In 2003, Nutella and McDonald’s ended their deals with Kobe Bryant after he was accused of sexual assault in Colorado; the charges were eventually dropped. Now how will tiger woods actions affect his endorsements? Will they drop him or put him on the back burner? How will his situation affect other celebrities endorsements?

In business, credibility means a lot and honesty means a lot, and Accenture wants to be a company that can be trusted. Obviously Tiger Woods did some things that betrayed the trust of people who were close to him, and now organizations would surely distant themselves from him. Accenture, the giant consulting firm, ended its 6 year marketing relationship with Tiger Woods on Sunday, showing once again that in advertising as in sports, there are no sure things after the exposure of his series of extra marital affairs.

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Following Accenture, it seems now other companies have also started ending their contracts with Woods. Companies like Gillette, AT&T, PepsiCo, EA Sports and Nike have also stopped their contracts with Woods. celebrity endorsements wont actually take any hit just due to tiger wood scandal. Every celebrity is associated with certain aspect of quality and that is how people perceive them. Since we have an assortment of celebrities to admire, endorsement companies will choose the hottest celebrity at the time that fits their product image.

This is called the mass appeal approach. This in turns mean that if the celebrity isn’t the most popular any more the endorsement companies will move on to the next celebrity. And due to this corporate also keeps on changing its endorsements as and when required therefore celebrity endorsement will not take a hit because of one celebrity. This isn’t the first celebrity scandal it wont be the last. We can put all the blame of Woods actions on himself but a trusted company like Accenture should have first enquired about the personal life style before going for the endorsement.

As far as the example of Kellogg and other companies are concerned, it is a part and parcel of celebrity endorsement. Ideally the Caleb endorsements should not be based on a long term contract and can be renewed if found genuine for the benefit for the company. It depends upon their organization, if you are a highly ethical company and you give more importance to values and business ethics then surely your association with these kinds of celebrity and partners hampers your organization’s brand image when they do something which is unethical or unacceptable to society.

If their organization’s brand image has been build upon values & ethics and consumer and society feels your associations with others are also on the same line. It is just like how consumers is giving more importance to environment. If they know that company’s business process and manufacturing process spoils environment then they will boycott by not buying products manufactured by these kinds of organization. After emergence of Social Network consumers are more aware and they give more value & importance to business ethics.

In conclusion I don’t think it will “effect” the celebrities endorsements because scandals are just a part of their life… whether its true or just a rumor that’s not a big deal for celebs cause they are prepared for it. The universal truth is that celebrities do effect the market value of any commodity and if the image of the celebrity is clear the market will worship like anything and if it has something like “confirmed controversy” like Woods then the market will make itself aloof of the matter and will seek for better options. ne more thing that fans and those who follow these celebrities like anything have nothing to do with what these people are associated with because for them they are the role-models. Everything will be fine again as before. An apology for what has happened and the market is ready for the endorsement by the controversial celebrity like woods again. Now only time will tell.

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