Will SRK become the king of brand endorsements post Jawan’s success?

One of the most visible celebrities in this country, actor Shah Rukh Khan (SRK), has experienced a few hiccups in his decades-long career. This is apparent through a dip observed in TAM AdEx’s recent Celebrity Endorsement report. While the actor continues to retain a 3% share in celebrity endorsements, brand SRK has strayed down to the eighth position as one of the most visible endorsers during the period of January to June 2023 compared to his 6th position in TAM AdEx’s 2022 report.

King Khan made his acting comeback with the film Pathaan in January 2023, which grossed a worldwide collection of US $130 million. Now, his latest release, Jawan’s record-breaking spree, saw a gross domestic collection of Rs 88.2 crore on its very first day. The opening day collection in Hindi itself was Rs 65.5 crore, 19% higher than the record set by Pathaan.

The SRK-starrer film is expected to receive a lifetime net box office collection in the range of Rs. 3.5 to 4.5 billion, as per Elara Capital’s Diet report on Jawan. 

How will brand SRK fare through this momentum?

Karan Taurani, Senior Vice President - Research Analyst (Media, Consumer Discretionary and Internet), Elara Capital, comments that Jawan gaining reasonably healthy box office numbers after Pathaan will only help propel SRK’s brand further.

“This will enhance his overall brand value as a star. He has actually been one of the most consistent actors today – since the 90s in terms of delivering success at the box office. He definitely will get that premium selection in terms of the advertising endorsements versus other actors or colleagues in the film industry,” says Taurani. 

Following Jawan’s success so far, Khan has already landed many one-time collaborations with brands such as Zomato, Bisleri, Astral Ltd, Bharat Petroleum Corporation Ltd, and more. 

Evolution of Brand Endorsements

SRK has worked with over 40 brands as an endorser including Coca-Cola, Realme, BYJU’S, Reliance Jio, Vishnu Packaging, LG TV, Pepsi, and many more. In fact, in the period of Jan to June 2023, the actor has endorsed products and services across 17 categories with Aerated Soft Drink, Pan Masala and Perfumes/Deodorant taking up the top three portions. 

As per an exclusive report shared with Social Samosa by TAM AdEx, endorsements done by the actor for Coca-Cola and Vishnu Packaging account for more than 80% of the ad share volume.

When asked about the major reason for the drop in the ad volumes in the first half of this year, TAM analysed that it is due to the 100% drop in the ad volumes of three brands that contributed to 33% of the ad volume figures from Jan to July 22 - Hyundai Alcazar, Streax Insta Shampoo Hair Colors and BYJU’s.

SRK first began his endorsement journey in 1988 with the sportswear brand Liberty Shoes. Since then, the categories he has endorsed have evolved. 

Elara Capital’s Karan Taurani comments that the era between 2005 to 2008 might have been the turning point for SRK’s brand value where he came up with multiple films that did well. The people who consume his content range from the early 90s to right now, and Taurani says he has a very strong appeal for today's youth.

Strengths and weaknesses of Brand SRK

As per Ashish Bhasin, Founder, of The Bhasin Consulting Group, SRK has managed to be endearing to the audiences over decades. 

“Usually, actors come in and are very popular for a short period of time but then they crash after some time. SRK has consistently managed to retain that end with his audience. He is also loved by a vast universe of people, and I think those qualities have put him in a good state.”

LV Krishnan, CEO, TAM Media Research believes that some of the strengths SRK brings to the table are mass appeal, charisma and likeability, global recognition, versatility and his engagement on social media. 

However, he mentions that celeb associations sometimes lead to overexposure, brand associations are also sensitive to negative news or controversies that can affect the brand value. 

“Over a period of time due to changing customer preferences, he may not be focal for extremely young audiences as he once was due to competition and the introduction of newer celeb endorsers with similar values”, he continues.

Shah Rukh Khan has a brand value of $ 55.7 million standing at the 10th position as per Kroll’s Celebrity Brand Valuation Report 2022. He has recently secured brand deals with Realme, Sunfeast Dark Fantasy and more. 

Apart from that, his candid conversations with his fans on X (Twitter) with the hashtag #AskSRK, also position him as an approachable star. This format is also leveraged before his movie launches. He has gathered 43.7 million followers on X and 41.1 million followers on Instagram. These massive and loyal fans on social media are also make for an attractive proposition for brands. 

Why SRK is the King of ads…

Ali Harris Shere, Chief Operating Officer, Biscuits and Cakes Cluster, ITC Foods Division says that one of the key criteria for choosing a celebrity ambassador is their ability to connect with the brand’s target audience.

“Onboarding Shah Rukh Khan as Sunfeast Dark Fantasy brand ambassador was a result of a thoughtful and strategic process, aimed at increasing brand love and resonance among our consumers.

Owing to his charisma and power to captivate and engage with audiences, Sunfeast aimed to leverage his star power and integrate our brand values through the Dark Fantasy ‘Har Dil Ki Fantasy’ campaign. 

“So far, social media interactions, customer feedback, and participation in brand-related activities have all seen a noticeable increase. Consumers feel a stronger bond with the brand due to his involvement,” Shere continues.

However, King Khan also shines with his shared chemistry with other actors, so much so that brands tend to partner him with fellow stars and friends. Recently, spice brand Everest reunited SRK with veteran actor Amitabh Bachchan for a quirky ad. 

This comes at a time when brands are aiming to leverage the attention the actors are bringing to their respective movie (Jawan) and hosting deals (Kaun Banega Crorepati). 

Shubho Sengupta, Marketing Consultant says, “SRK is the new Amitabh Plus. Plus, SRK seamlessly transformed into a hero for the digital generation, which AB could not.”

SRK has also been in advertisements with Alia Bhatt and film producer and interior designer Gauri Khan, who happens to be his wife. The actor has been a brand endorser for D’Decor and Gauri Khan debuted in advertisements with him through this association. 

The brand has recently launched an ad campaign with SRK and Alia Bhatt for a new brand FabriCare by D’Decor.

Nikita Desai, VP – Strategy, Brand and Business Excellence, D'Decor Home Fabrics notes, “We has seen a very positive impact in terms of customer engagement, by virtue of having them as our brand ambassadors, we have also seen increased positive engagement with our consumers.”

TAM’s LV Krishnan observes that due to the selection of brands that he endorses, the public view of SRK as a brand also gets influenced. 

“Brand associations like Tag Heuer and Hyundai, D’Decor will affirm his luxurious lifestyle. Certain Philanthropic brand associations like KidZania portray him as a well-mannered, socially responsible celebrity. His association with both National and Regional brands like Lux and Emami showcase him to be able to connect to geographically diverse audiences. Wide-ranging category choices like Paints, Beverages, Ecommerce/Education, Smartphones, showcase his mass appeal and support this public persona of being the ‘king of Bollywood’ which he is usually referred to.”

It is safe to say that Shah Rukh Khan might have struggled to receive box office collections during the last few years but the love he receives on his social media is immense and that shows how ‘Picture abhi baaki hai’ for brand SRK.