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Case David Beckham

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Chusheva Anna, 1307 Case about David Beckham 1) 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? Main reason for success as an endorser is that David Beckham was a great football player with a lot of trophies; he is famous because of his perfect skills and special style of playing. He played for Manchester United which is one of the most famous team all around the world, which is also important. Moreover, David Beckham had good looks, charisma and social lifestyle, so-called paparazzi lover. Media showed him as the icon of youth and always reported everything that was happening in his life. In addition to this he was a good character - a family-oriented person, always showing up at the events with his beautiful wife Victoria and their sons. That is important to many people in different countries, when star and all of his family is handsome and photogenic. Values: successful stylish family man. He does not smoke, drinks very little and shows his commitment to his family. He was a trendsetter for a long time - whatever he did immediately became a trend (clothes, hairstyles, brands he choose etc). One more value for people who loved him all around the world is that he reached everything by himself – from being an ordinary boy in a working-class family -> he became the richest footballer. Advantages for company: Everything that David Beckham endorsed automatically increased sales, brand equity and awareness, attracted new customers. People identified the products to a superstar status and wanted to have them. Advertisements with David Beckham were memorable and beautiful.

2) How did Real Madrid stand to benefit through the acquisition of Beckham? Was the price it paid for him justified? Real Madrid is a competitive club with best football players. Speaking not about football, but concerning personal endorsements Beckham shifted to Real Madrid really well. Moreover, his popularity in Asia increased awareness and support of Real Madrid, as about 5 millions of Asian people shifted loyalties from MU to Real. His charisma and popularity let Real Madrid to attract people that were not interested in football. That extended the market for the club’s merchandise. At last, Beckham generated between 6 and 10 millions of pounds per year for the club. However, it created a lot of criticism for paying such a price for one player. Demand for soccer and soccer stars decreased in Britain after negotiation with Real Madrid. The viewing figures plummeted; clubs laid off number of players so Manchester United lost more money (and fans) than they received. It could be stated that price that was paid for Beckham was unjustified. 3) What are the implications of using people as brands? What are the advantages and disadvantages experienced by the company as well as the celebrity? Advantages: * Build brand equity * Attract new customers, find some new audience * Rememberable advertisement * People believe the product contributes to superstar status Disadvantages: * Celebrities can overshadow brands * Celebrities become overexposed/ overpaid * Image of a brand can change * Unexpected failure of an endorsement Successful brand endorsement: David Beckham for Adidas, Michael Jackson, later Britney Spears for Pepsi, Nicole Kidman for Chanel, Julia Roberts for Lancome, Daniel Craig as 007 for Heineken and Omega,
Unsuccessful brand endorsement: Nicole Kidman and Etihad Airways, Andrey Arshavin for Lays, Sarah Jessica Parker for Gap. And one more example – Paris Hilton took $3.5 million to endorse a certain brand of hair extensions (Hairtech International), but then allegedly wore a competitor’s extensions. She missed the brand’s big 2007 launch party since it occurred during her brief jail stint. Company sued her for $35 million, but a judge dismissed the case.

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