At
a
time
when
several
recession-hit
producers
are
keeping
ambitious
projects
on
hold,
brand
endorsements
once
the
biggest
source
of
income
for
stars
too
seems
to
have
taken
a
hit.
Not
only
is
there
a
major
cut
in
the
endorsement
fees,
but
also
there
is
also
little
demand
for
renewals
of
existing
contracts.
Though
the
huge
slump
in
the
advertising
budgets
and
a
drastic
cut
in
celebrity
endorsements
fees
is
inevitable,
the
situation
may
actually
help
advertisers
convince
stars
to
sign
endorsement
contracts
at
lesser
fees
over
the
next
year,
according
to
Prahlad
Kakkar.
Explaining
the
current
advertising
scenario,
he
says,
"The
dynamic
rise
in
endorsement
fees
was
being
fuelled
by
corporates
and
MNCs
who
wanted
to
flaunt
the
growth
of
their
business.
But
now,
the
scenario
is
different.
Advertising
budgets
are
being
slashed
and
this
will
be
passed
on
to
endorsement
fees
as
well." Kakkar
said
that
the
brand
endorsement
business
functions
on
the
economics
of
supply
and
demand.
According
to
him,
as
of
now,
there
are
few
takers
for
brand
ambassadors.
However,
in
the
next
few
months,
advertisers
may
realize
that
it
is
a
major
opportunity
to
sign
new
brand
endorsement
contracts
at
lesser
prices
and
that
too,
for
longer
durations!
A
likely
offset
of
the
trend
is
also
reduction
in
number
of
public
appearances
made
by
the
stars.
Translated
literally,
it
means
busy
actors
will
have
the
option
of
signing
more
brands
for
lesser
time
commitment.
As
such,
bulk
brand
endorsements
signed
at
lower
fees
may
well
be
the
silver
lining.
In
fact,
Kareena
Kapoor,
who
is
reported
to
have
charged
a
whopping
Rs
7
crore
for
endorsing
Pepsico's
snack
food,
is
looking
at
signing
a
few
endorsement
contracts
in
January,
according
to
a
source
associated
with
her
business
decisions.
On
the
other
hand,
Emami,
which
is
said
to
have
roped
in
the
actress
for
Boro
Plus
two
years
ago
at
a
fee
of
Rs
2
crore,
has
not
yet
renewed
their
contract
with
the
actress.
Replying
via
email,
Devadeep
Ghosh,
Emami
spokesperson
said
that
though
most
of
the
company's
celebrity
endorsement
contracts
are
signed
for
a
period
of
four
years,
they
couldn't
divulge
the
actress's
contract
renewal
date
since
it
can
lead
to
'unnecessary
speculation'.
Meanwhile,
responding
to
whether
recession
will
see
Emami
replacing
their
current
brand
ambassadors
that
include
Shahrukh
Khan
and
Amitabh
Bachchan
as
well,
Ghosh
answered
in
the
negative
with,
"Since
stars
are
brand
ambassadors
themselves,
our
association
with
them
reinforces
the
communication
of
trust,
the
power
of
brand
and
image
recall."
It
may
be
recalled
here
that
the
company
has
just
renewed
its
contract
with
both
the
brand
ambassadors
earlier
this
year
in
July
for
a
period
of
two
and
a
half
years.
However,
this
is
definitely
not
a
universal
strategy.
For
new
entrants
in
the
Indian
market,
there
seems
to
be
hesitation
in
going
ahead
with
the
best
of
Bollywood
brand
ambassadors.
For
instance,
J.Hampstead
whose
contract
with
Priyanka
Chopra
is
valid
only
till
early
2009
has
not
yet
initiated
talks
for
renewal,
confirmed
Ajay
Chandwani,
Executive
Director,
Percept
H,
the
advertising
agency
that
created
the
campaign
starring
Chopra.
It
is
clear
that
brand
endorsement
contracts
will
continue
to
be
signed
as
well
as
renewals
scraped
over
the
next
one-year,
each
having
its
set
of
recession-sparked
terms
and
conditions.
As
to
which
stars
will
use
them
to
survive
the
recession
wave,
is
something
only
time
will
tell.
Story first published: Monday, December 8, 2008, 16:04 [IST]