Do you really want brand icon status?
Brands become iconic when their products are...
Celebrity stakeholders can make a business. When they associate themselves with a brand and promote its products or services, its value and visibility often increase exponentially. The celebrity's followers and supporters become followers or supporters of the brand, and word-of-mouth recommendations drive increased internet and foot traffic, increasing sales and profitability.
However, when a celebrity stakeholder departs from a brand, resigning as a stakeholder or no longer promoting that brand, its products and its services, the opposite happens. Its stock market value can suffer an overnight reduction, while its visibility remains high for all the wrong reasons. When potential customers see a high-profile departure, they assume the worst, and this can have lasting ramifications for a brand.
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Considerations for onboarding a celebrity
Despite the risks, many franchise businesses may see merit in onboarding a celebrity stakeholder. The increased visibility and potential for soaring stock market value is deeply attractive, but before reaching out to every celebrity who may potentially share your vision, you will need to consider which celebrities already frequent your business and whether any of them are adequately respected by your target audience.
Consider the celebrity's interest in your brand and how well your brand aligns with their values and ideals, and develop a strategy to entice them. You may need to pay them or find an appropriate non-financial reward to incentivize them to work with you. When you approach the celebrity, you will need to explain how they would benefit from partnering with you and promoting your brand to their followers.
Finally, after recognizing the impact that a celebrity's misdeeds or departure could have on your brand, implement an appropriate contract and damage limitation strategy to address any negative incidents that could potentially arise while they are associated with your brand.
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Damage limitation for handling a celebrity departure
The brand must maintain regular, open and honest dialogue with the celebrity in which both parties can ensure that they are happy with the ongoing partnership. Should either party express any negative feelings, they should work together to determine the root cause and a treatment strategy. If these negative feelings continue and a departure is the only acceptable method of resolution, both parties must agree on how they will communicate this to the public.
It is essential that both the brand and celebrity agree on who will communicate, on what platform, and when and what will be said. To leave both brands unscathed, a carefully managed PR campaign will need to run that will reassure followers that no bad blood exists between the celebrity and the brand but that the departure is necessary to pursue private interests.
It is recommended that legal advice is sought when onboarding a celebrity or when they wish to depart to minimize liability and increase the likelihood of a successful outcome for both parties.
