Boot on the other foot?

Whenever a celebrity is courting controversy, brands cut off any association with them without sparing a second thought. Globally, golfing sensation Tiger Woods is the biggest example that comes to mind. He was dropped by many of his sponsors after his name cropped up in sex scandals. Closer home, there are cricketers who were stained by allegations of match-fixing (Azharuddin, Jadeja, Sreesanth) or film stars who stood accused of charges ranging from doping scandals or taking the law into their hands (Fardeen Khan, Sanjay Dutt). These celebrities saw brands deserting them en masse when their names cropped up in one controversy or other.

What about brands, though? When brands find themselves in a soup, like Maggi did in recent times, is it time for the boot to get on to the other foot? Do celebrities cut off any relationship they might have with the brand that’s facing turmoil?

Last year, Hindi film mega-star Amitabh Bachchan caused an uproar when he reportedly told a group of B-school students that he decided to stop endorsing colas after a school girl in conversation with him described it as poison. Remember, this was the same superstar who had endorsed PepsiCo for eight long years, from 2002-10.

A few years ago, there is the case of film director Shyam Benegal and actor Gul Panag, who decided to take their respective names off the jury from a film competition hosted by mining major Vedanta, as the company was facing a barrage of protests in Orissa.

But in the recent case of Maggi, where FIRs were lodged even against brand ambassadors including Amitabh Bachchan, Preity Zinta (who endorsed the brand a few years ago) and Madhuri Dixit-Nene (the current ambassador), such reactions were not forthcoming.

In fact, Dixit did just the opposite. She took to micro-blogging site Twitter to take up the cause of Nestle, the foods giant that makes the Maggi brand. Through a series of messages Dixit said, “Like most of India, I have enjoyed Maggi noodles for years. I was very concerned after recent reports and met with the Nestle team. Nestle has reassured me that they adhere to stringent testing for quality and safety and are working with the authorities closely. Nestle explained that they always place the consumer first and have the highest quality standards.”

Bachchan opted for a milder response this time around. He reportedly told the media that his contract with the Maggi brand is over and he does not endorse it anymore and added that he is very careful about the clauses in his endorsement contracts.

That brings us to another question. If a celebrity is not quick to cut off all links with a brand that is in trouble, will it hurt the prospects of other brands endorsed by the same celebrity? After all, both brands and celebrities derive mutual benefits from their associations. Nalin Khanna, CEO, brand advisory firm, Vertebrand, said endorsements give visibility to the celebrities and helps them in other areas of their career. “Brand and celebrities both feed off each other. Celebrities have in the past decided not to lend their names to certain brands to protect their image. But if a celebrity lends his or her name to a brand that is found to be misleading later, it definitely impacts their credibility. Brand endorsement is all about perception. If tomorrow, consumers won’t believe in the celebrities, it will impact their future celebrity endorsement deals as well as current brand endorsement deals.”

Shailender Singh, Joint MD at entertainment, media and communications agency Percept, agrees. He says, “Being associated with a controversial brand definitely rubs off on the celebrity and impacts their entire future financial prospects. Celebrities are protected through clauses in their contracts and are not liable. However, Madhuri Dixit for instance went a step further by being vocal on social media supporting the brand at a time when regulatory authorities are investigating the company, which has put her in a negative light.” But Singh is quick to add that this can be corrected through better media management. He says, “Focusing on celebrities who have endorsed Maggi, seems to have been a sort of a decoy in this scenario. There is a bigger liability on the regulatory authorities and the government besides the company rather than the celebrities.”

There are others who feel that celebrities are insulated from a brand’s image. Indranil Das Blah, Partner at celebrity and sports management firm CAA-Kwan says, “I don’t think a single brand can impact the celebrity’s overall brand endorsements. I think the celebrity’s brand image is insulated as the celebrity’s name is helping a brand get eyeballs, but the brand attributes do not rub off on the celebrity.”

Celebrity managers say, though, brand ambassadors need to be more careful about the claims that they make in the campaigns. Khanna says that in the West, celebrities do not endorse 10-20 brands like in India. They usually endorse one or two brands for longer term, and therefore the brand credibility also rubs off on them. He said that as a fall-out of the current controversy, celebrities are likely to be more careful before signing on, especially food brands. Bachchan has already been quoted saying so. Will others follow?

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