THE DAVID BECKHAM BRAND

1. David Beckham was one of the most successful endorsers in the late 1990s and the early twenty-first century. What were the reasons for his success as an endorser? What values did he signify as a brand and what were the advantages that the companies who used him obtained? Answer with special reference to Beckhams popularity in the Far East.

When a customer or consumer is looking at an endorsement of a product or service, there are only three main reasons why it would like to buy the product or service. First reason, due to the quality, second, due to the quantity and price and third, due to the endorser.

David Beckham was called the hottest marketing machine during the late 1990s and the early twenty-first century after Michael Jordan. There were many reasons why David Beckham was one of the most successful endorser. He was a very talented football player, had good looks, had a good image, attractive style and a husband of a pop star. And David Beckham was used as a life style icon. As he did not appear in the advertisements dressed as a football player but dressed in casual clothes.

When companies hired David Beckham as their brand endorser the result was always positive. Their products/services would be sold out. He would also change the trends of the market. For example Brylcreem hair styling gel was used only by older men before David Beckham became the endorser. And as a result even the potential young buyers started using them.

A brand endorser needs to portray certain values relating to the product/service the endorser is endorsing as well as to the potential buyers.. For example to market boxing gloves, the endorser needs to show respect as well as importance towards the sport of boxing. In the same way David Beckham had a clean cut image of a family man. He did not smoke and was not a frequent alcohol drinker. This was much appreciated by the Far East culture and people. As they gave importance to

family ties, and family values. This is why any endorsement David Beckham endorsed was a complete hit and successful in the Far East.

Advantages companies obtained from him:

Increase in Sales: When companies like Meiji used his face in the advertisement the sales doubled.

Opened New Markets: The endorsements were to be seen by people watching football, following fashion and pop music as he was married to a pop star.

2. Real Madrid paid a huge price to acquire Beckham. However, the club was confident of recovering the amount it paid within a short period by cashing in on his appeal. How did Real Madrid stand to benefit through the acquisition of Beckham? Was the price it paid for him justified?

Real Madrid paid $41.31 million to David Beckham. The price was justified. As David Beckham was an amazing player as well as the best endorser. So Real Madrid had not only the advantage of his amazing football skills but also the advantages of him able to sell products for Real Madrid. For example: T-shirts, Footballs, Pens, Football kits etc.

The price was also justified as most of the Asian football fans watched football only because of their favorite players. As a result there was an enormous transfer of fans from Manchester United to Real Madrid. This not only increased the viewers of their matches but also increased their sales of products. Analysts believed that out of 17 million fans, 5 million fans would shift.

Another reason which justified the price of the transfer was that David Beckhams sponsors and endorsers at individual level matched exactly to the Real Madrids sponsors. This did not happen when he was playing for Manchester United.

To conclude in this case David Beckham was being transferred for his endorsement skills and not more due to his football skills as Real Madrid had bought 3 world class players just before getting David Beckham. Real Madrid needed him to increase its commercial presence in the world. Hence the price was justified as David Beckham got Real Madrid back its investment as well as profits.

3. Celebrity endorsements were the biggest marketing trend in the early twenty-first century. Discuss the phenomenon of celebrity endorsements. What are the the implications of using people as brands? What are the advantages and disadvantages experienced by the company as well as the celebrity?

A celebrity endorsement refers to a form of brand or advertising campaign which involves a well known person using their fame to help promote a product or service. In the past it has been noticed that this phenomenon has been proved very successful to many brands For example: Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $50 million revenue growth. Nike's golf line grossed more than $250 million in annual sales. In 2000 he re-negotiated a five-year contract estimated at $125 million.

Advantages experienced by the company

Increase in Sales Increase in awareness Increases trust with customers

Disadvantages experienced by the company

Have to pay huge price for successful endorser. Change in performance of endorser can result in change in market share for company.

Advantages for celebrity

Increases its popularity. Another source of income.

Disadvantages for the celebrity

Creates a distraction for him/her from his career. If the company does badly. The contract might not be renewed.

-MAYANK SAVLA