How Can Celebrities Take Advantage of Their Name to Setup A Retail Brand?
Celebrity entrepreneurship is not a rare phenomenon in the world of business, especially retail business. Many celebrities from around the world from diverse fields and professions went on to test the might of their brand persona as business entrepreneurs; with some coming out with flying colors while many celeb-owned brands having disappeared into the thin air. Although these celebrities do not need any introduction few such popular celebrity entrepreneurs include Oprah Winfrey, Sachin Tendulkar, Jennifer Aniston, Shahrukh Khan, Robert DeNiro, Jessica Alba, Kendall and Kylie Jenner, Deepika Padukone and so on. [(1), (2), (3), (4)]
However, coming together of celebrityhood and entrepreneurship does not automatically imply that a celebrity’s business brand will shine at par with his/her professional success. Even celebrity-owned businesses need to work on leveraging their brand name. Some of the key considerations which can prove to be effective in leveraging the brand name of celebrity-owned businesses are highlighted here.
Coming together of celebrityhood and entrepreneurship does not automatically imply that a celebrity’s business brand will shine at par with his/her professional success
Use of Popularity for Brand Recognition
One of the greatest strength possessed by a celebrity is his/her widespread popularity. And one of the toughest hurdles faced by a business enterprise is getting the attention of its targeted customers for brand recognition. When a celebrity comes up with a brand of his own and promotes it with his visual presence/association with the product, it immediately grabs the attention of the viewers. Clearly, celebrity entrepreneurs have an upper hand over competitors when it comes to achieving brand recognition within a short span of time. Usually, it takes years of toils and efforts for a regular business to get brand recognition in the market.
Celebrity entrepreneurs have an upper hand over competitors when it comes to achieving brand recognition within a short span of time
Brand Acceptance Through Product Performance
Getting the attention of customers through popularity is one thing; keeping them interested and encouraging them to buy and use the products is quite another. The celeb-role-model thing is almost obsolete now especially when it comes to business. Gone are the days when people used to buy a product just because of its association with or endorsement by a popular celebrity. Customers are smart enough to know that it is not the celebrity they admire but the businessman in the celebrity who is trying to sell his products and services. And this puts everything back to the regular course of customer decision-making process. Even celebrity-owned ventures cannot bypass the basics of business management to achieve brand acceptance and business success which has to be substantiated with rock-solid product performance.
Even celebrity-owned ventures cannot bypass the basics of business management to achieve brand acceptance and business success which has to be substantiated with rock-solid product performance
Finances to Keep the Brand Floated
Finance is one such area where most startups struggle with. It is not easy for startups to acquire requisite funds for establishing a business. Celebrities with strong finances can fuel their business investment requirements without bothering about the hassles of attracting investors. While at the same time, with a strong popularity and financial credibility, it is relatively much easier for a celebrity to attract investors and investments. Availability of funds helps ensure that the brand name does not take a beating when business is temporarily down or not going as expected by absorbing losses or by bringing in the necessary small and big changes.
Availability of funds helps ensure that the brand name does not take a beating when business is temporarily down or not going as expected
Celebrities may have such a strong image or appeal that they may eclipse the brand itself. This necessitates that the presence of the celebrity is kept to the optimum or balanced out by the co-presence of other stage actors in the advertisements especially in the moving formats. The other means of achieving this include highlighting or stressing more about the products, values and emotions and less on the celebrity.
Celebrities may have such a strong image or appeal that they may eclipse the brand itself
Choosing the Right Business
Psychological affiliation plays a crucial role in the brand positioning of the celeb-owned brands. Every celebrity is associated with a profession in which he/she has made a name. While choosing a business, celebrities must take utmost care to ensure that the chosen business or brand is relatable to their profession if they wish to reap the benefits of quick brand recognition and long-term brand acceptance. For example, a celebrity athlete with startup business of fitness centre/gym stands better chances at eliciting positive response from customers.
While choosing a business, celebrities must take utmost care to ensure that the chosen business or brand is relatable with their profession if they wish to reap the benefits of quick brand recognition and long-term brand acceptance
Use of Social Media
With widespread popularity and usage of various social media platforms, celebrities enjoy a considerably high degree of fan following. With a single upload, a celebrity can reach out to millions of fans. This is a vanity not granted by customers even to some of the most renowned companies in the world. The sheer numbers speak how vast a target audience a celebrity can reach out to in order to promote their brands.
With a single upload, a celebrity can reach out to millions of fans
Coming from a different profession or occupation, business and brand management is a completely different ball game. Brand management has evolved as a separate field of business specialization. The smartest way to effectively manage and leverage brands is by engaging skilled, qualified and experienced professionals.
The smartest way to effectively manage and leverage brands is by engaging skilled, qualified and experienced professionals
Being a celebrity entrepreneur gives a mighty head start from a business perspective. But celebrityhood is not a substitute for brand management. Brand-building is a continuous exercise that involves meticulous execution of carefully chalked out brand promotion activities. However, it is natural for celebrities to have a strong brand leverage emanating from their professional success.
YRC is an “Expert Service Division” of Mind-A-Mend Consultancy Pvt. Ltd.
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