How to create a circle around a selected game object?

[22210-photo+2.png|22210]I’m creating a simple board game. I have my player (gameObject). I want to create a circle around my player when the player is touched. I’ve tried to create an quad object and applied a circular texture which i’ve created in photoshop. But the problem is when I drag the png file onto the game object the entire gameObject is set to the color of my circle.png

What should I do? Any alternatives? And I want to make the circle to have a heart beat kind of effect.

Please Help. Thank You.

You can try projecting a projector.