The Star Effect

Celebrity endorsement is not something new. Corporate houses the world over
have been roping in celebrities-actors, sports­persons-for longer than is
realized. The popular belief is that if a successful celebrity promotes a brand,
it will pep up the brand's acceptability, and thus speed up sales.

The Indian IT industry too has realized this marketing trick which explains
why HP has Shahrukh Khan; Acer has Hritik Roshan; Lenovo brought along Saif Ali
Khan and Soha Ali Khan; Kodak signed Katrina Kaif and Canon is promoted by
Sachin Tendulkar. Even regional brands like Kolkata-based Chirag have not lagged
behind. It has Saurav Ganguli telling the world that nothing burns brighter!

When the stars shine

When HP roped in Bollywood's King Khan in February 2006 to promote Compaq it
was because of Shahrukh's smart-is-successful appeal that went across national
boundaries. The subsequent universal success of the Compaq Presario range was
proof indeed that the company was right in its choice of a brand ambassador.

“Considering Shahrukh's movies move the world, we knew he was just the guy to
take our brand's popularity still further. The number one personal computer
brand in India, Presario scaled undreamed of heights with Shahrukh in the
promo-lead right across India,” informed Shubhodip Pal, Head Marketing-Personal
Systems Group, HP India.

One might well ask, why, considering Compaq is a top-of-the line product, was
an endorser such as King Khan needed? But Pal is quick to point out, “It was a
most conscious choice. We got him on board because he is known to be so
tech-savvy.” HP hoped that customers would relate to this aspect of Khan and
that it would encourage them to choose their brand.

Not long after China-based Lenovo acquired IBM's PC business, it realized the
need to make its brand name known to the masses. This is when it roped in the
celeb siblings, Saif and Soha Ali Khan. The stars' endorsement enabled Lenovo to
gain a substantial mindshare in India.

Would this have happened minus the star ambassadors? Lenovo beli­eves not.
When the firm first forayed into the consumer PC seg­ment in March 2006, it knew
it must find some absolutely novel way of making its brand promise seem as
though it had already been achieved. And that's also when the firm hit on the
Bollywood 'thing'.

Said Prasanna Rai, GM-India Marketing, Lenovo, “We chose Saif and Soha Ali
Khan as our brand ambassa­dors because we felt they were the right fit to take
our USP further. We are passionate and energetic, and so is this pair. The
Lenovo brand is basically about never losing the thirst to experiment, of
staying evergreen in the face of age-old odds. You have to be these to want to
associate with the Lenovo brand. You have to be someone like Saif and Soha.”

Kodak wanted to be acknowledged as a classy and stylish brand, hence it signed up Katrina Kaif

Another company that buys this viewpoint is Acer. By getting Hrithik Roshan
to promote its brand, Acer tried to cement the appeal it had build up over the
years of being young, trendy and sporty. The fact that it was among the most
fashionable brands around was clear in its numerous celebrity tie-ups and
endorsements.

In the Acer brand-view Hrithik Roshan was the perfect fit to give it the
market edge it needed. It was for the same reason that the firm tied up with
Ferrari, Yamaha racing, US baseball and FC Barcelona, among others.

“Our celebrity endorsement in India is part of that continuum. By getting
Hrithik Roshan, the star of such huge successes as Krrish and Dhoom-2, gives us
a huge mindshare among young first time users,” explained S Rajendran, GM-Sales
and Marketing, Acer India. “The Acer-Hrithik tie-up reflects our essential
character; tells this young segment what we stand for: the trendy, the friendly,
the adorable-the aggressive!”

Hrithik Roshan was signed in on March 8, 2007. What Rajendran had long been
aiming for was to position Acer in the consumer's minds as a young, vibrant and
contemporary brand. “And we decided Hrithik Roshan stood for precisely this sort
of stuff, that he would give us the visibility across the country that, in turn,
would benefit the channels aligned with us.”

The other key factor was that Acer's new notebooks-designed by BMW in the
US-were specifically targeted at the young, aspiring, trendy consumer. In the
Indian sub-continental context, these qualities were associated with Hrithik and
hence it would rub off on the brand as well.

By getting Hrithik Roshan to promote its brand, Acer tried to cement the appeal it had build up over the years of being young, trendy and sporty

Different yardsticks

There can't obviously be a single yardstick to settle on the most
appropriate ambassador. While other brands wanted to promote energy and
trendiness as their product USP, Kodak wanted to be acknowledged as a classy and
stylish brand. Ergo, it signed up Katrina Kaif-the modern day cine diva who is
also a stylish and savvy IT consumer.

According to Ravi Karamcheti, MD and Country Business Manager-Consumer
Digital Imaging Group, Kodak India, Katrina has class and attitude, besides her
Bollywood and modeling credentials. He elaborated, “Our stylish range of digital
cameras, launched towards 2005-end, exuded class, performance and a unique and
exquisite user style. Katrina was its very personification, we thought. In order
to reach this wider audience, to establish this style connect, we decided that
getting Katrina as Kodak's face would make the most successful branding shot of
all.”

Katrina has a dreamy, innocent look that takes most lookers almost unawares.
For Kodak she became the very stuff that makes for the success of its stylish
range of digital cameras. Karamcheti added, “Our aim was focused on creating the
right kind of association with the brand image our V series seeks to project:
Compact, companion­able and chic. Katrina fit the bill to a T.”

Canon India, which is celebrating its 10th anniversary this year, has for the
past nine years been working overtime to launch new products, appoint more
channel partners and expand its already formidable base. All of Canon's
employees reflect this yearning to be on a firm wicket. So who better than the
great Sachin Tendulkar to shoot for Canon and raise the titan's marketshare in
India still further?

Said Alok Bharadwaj, VP, Canon India, about Sachin being the celeb mascot for
the company since 2007, “Canon stands for performance, care and reliability — a
mix that Sachin, the Indian cricket hero with universal appeal perfectly
internalizes. We too are found trustworthy and innovative; like Sachin the
innovator with the bat, we are recognized world­wide for launching novel
products in a cluttered, seamless market. Sachin's consistency and
cross-sectional appeal reflect our own dependability and excellence. What Sachin
stands for, Canon does too.”

Local brands too have started following the footstep; the Kolkata-based RP
Infosystem uses much the same arguments for hiring Saurav Ganguly to back its PC
Chirag brand, which is all

set to go national. Said Probir Majumdar, VP-Sales and Marketing, Chirag,
“Saurav Ganguly is an international figure and has led the team from the front.
He is a cricketing icon and the young adore him. Most vendors are hooked on film
stars. We would rather have a sportsman in the Ganguly mould.”

Who signed whom
Compaq: Shahrukh Khan, Feb 2006	Lenovo: Saif Ali Khan, Soha Ali Khan March 2006
Acer: Hritik Roshan: March 08, 2007	Chirag: Saurav Ganguli, May 2007
Kodak: Katrina Kaif, End of 2005	Canon: Sachin Tendulkar, Beginning of 2007

Strategy benefits

Roping in Shahrukh has reaped rich dividends for HP. “With Shahrukh Khan we
have been able to build our image that seeks people's empowerment, and universal
literacy. We are glad that our message has helped foster trust worldwide. All of
this has translated into higher sales for our brand,” informed Pal.

Lenovo too is gaga about the brother and sister duo. According to an
independent survey done by AC Neilsen Lenovo's brand awareness, which was 38
percent in March 2006 when it had introduced Soha and Saif Ali Khan, rose to 74
percent within just six months.

Acer is no less thrilled to have Hrithik on board as brand ambassador.
Remarked Rajendran, “After Hrithik came in we saw 50 to 60 percent growth in the
standalone business for monitors. We found Acer registering an exponential
growth in just a little over five months.”

According to the company's estimates the growth across products categories
like note­books and TFTs nearly tripled. On desktops, the numbers have doubled
from Q1 07.

“Part of the credit for this goes to Hrithik who was a major factor in our
increased brand recall and connecting with the target audience. A significant
part of this growth is also due to the new product lines, which we have
introduced, streamlining of our channel operations and claims processes,
expanding and consolidating our retail operations and running focused programs
like the SMB/SME Star VARs,” added Rajendran.

The two Ks-Kodak and Katrina, have generated tremen­dous synergy. “It is not
the nature of the business that matters so much as the association, so long as
it is sensible and gels with the company's persona. If the celebrity reflects
it, the product gets the push it needs to stay on top.”

Saif and Soha Ali Khan's endorsement enabled Lenovo to gain a substantial mindshare in India

Sachin has hit sixer upon sixer for Canon. Said Bharadwaj, “Our objective in
partnering with Sachin was to create an enduring brand appeal for Canon among
all sections of Indian society. And I am glad to report that we have done so
most successfully. In our one year of association with the little master, we
have not only raised our brand recall to Olympian levels, we have found our
business growing in unprecedented ways and directions. All our digital imaging
products have profited from this remarkable association.”

For Chirag, the new kid on the block, it is too early to say exactly how much
it has benefited from the Ganguly tie-up. All the company will acknowledge at
this stage is that it has made 'a great deal of difference'. Yet sales have
risen, and there are no long faces.

Soaring sales are the outcome of several complex factors, and not just some
narrow marketing gambit. But brand endorsers play a major role in pulling it
off.

Does the channel care?

The channel is less sanguine about the supposed endorsement magic. Bharat
Bhushan of Delhi-based RR Systems said, “Roping in celebrities does indeed
heighten awareness about the product, but that's about all. India is a
price-sensitive market and the marketshare depends on the price tag. People in B
and C-class cities might get affected, but this rarely makes a difference in the
metros.”

SN Prasad of Patna-based Cygnet Computers thought otherwise. According to
him, in B and C-class cities too people go in for configuration and price.
Celebrity endorsement could have a mild impact on the marketshare, and also
raise awareness of the product, but the bottomline is pricing and
configuration.”

Ajaya Kumar of Delhi-based Park Groups said, “When Shahrukh was roped in it
was a huge success, yet a very transient one. I don't think it affects anybody
anymore.” He felt that it has just become fashionable for vendors to have some
major heartthrob to root for them. He does not think that such gimmicks work the
wonders they are supposed to.

Partners in the South felt that roping in stars is pumping adrenaline into
the trade. Noted Susheel Chouhan, CEO, ACME Business Solution, “The move has
caught on and for very good reasons. When popular stars recommend a particular
brand, people take it as wholesome advice and go and buy it.” Yet what is the
internal consumer combustion engine that is activated when a star presses the
accelerator?

Answered Chouhan, “It is the confidence that people have in their stars that
makes the mare go, what runs the show. When Amitabh Bachchan or Shahrukh Khan
recommend a product to the user the general reaction is: Such a person will not
betray me. He must be right about what he is saying about the product.”

Kusal Jain of SB Infotech felt likewise. “Promotion through endorsements
certainly take sales upwards,” he affirmed.

What else sells?

There is a lot more than roping in of stars that vendors are engaged in
these days. In their attempt to increase their marketshare and brand recall
power they have been cashing in on getting celebrities to grace their events.

For instance HP recently organized an event to unveil its new Comapq
logo-along with new product offerings under the Comapq portfolio. For it,
Shahrukh Khan did the magic with his Kal Tumhara Hai performance.

Added Pal, “We are led by our vision here. We will stay true to it, and make
Compaq synonymous with the 'Kal Tumahara Hai' promise.”

To lure customers HP Pavilion desktops have also been offering free Reebok
fitness kits that include tracksuits, swift LP shoes and mid-grip traveling
bags. Not to be left behind, the Compaq Presario desktop scratch card offers
gifts to every buyer. The lucky scratch could fetch you a Samsung MP3 player,
DVD player, connectivity bundle, Reebok sunglasses, an Adidas gift hamper or a
brilliant holiday package replete with return tickets and the rest.

In the Acer ad, Hrithik writhes then sighs, 'Life is busy, Acer makes it
easy.' The popular TV commercial has made Acer live up to the first three
letters of its name. It's the ace runner in its own slot.

Acer is further offering attractive prices, back-end schemes, enabling local
bundling of goodies, merchandising and branding at retail stores, selling easy
finance options and partnering promotions in aid of BTL promotion.

About other promotional programs, he said channel partners could participate
in various ingenious schemes, as well as consumer-oriented contests for specific
products. Product promotion remains a strong element in Lenovo's marketing
strategy. 'Lenovo and Radio Indigo Audio DJ Console' -an event in partnership
with Radio Indigo-was recently held in Bangalore to great applause. “It was a
unique marketing initiative wherein we set up a life size replica of our Lenovo
Y410 laptop, topped by a DJ, console station. For a whole week Radio Indigo's
RJs aired live music from the Audio DJ console and held various exciting
contests for the audience, giving Bangalore one of its most novel and exciting
sound events. Said Rai, “We also created an animated viral featuring the Lenovo
Y410 laptop and its unique Audio DJ feature. Viral campaigns form an important
part of our interactive marketing.”

Katrina did the formal launch over a press conference and was the model of
the print campaign of the latest M series launch of Kodak digital cameras.

“We recently had an interesting promotion in association with Om Shanti Om.
Said Karamcheti, “Consumers can go to any participating Kodak Express outlet and
make prints for Rs 250 or more, after which they get scratch cards. The lucky
winner gets to meet Shahrukh Khan in person. We also run countrywide
festival-led promotions, such as during Diwali, Ganesh Puja and Christmas.”

Speaking about the association between Canon and Sachin, Bharadwaj said,
“Right since the beginning Sachin has been a part of different Canon advertising
campaigns, corporate events, 10th anni­versary celebrations, as well as retail,
press and outdoor campaigns. We have also leveraged this association for our
distributors and trade colleagues. Sachin is a brand and essentially it is a
long-term association that we are looking at.”

Canon is currently concentrating on city-centric campaigns. It was towards
that end that the firm began the year with a program called 'Aamchi Mumbai'.
Launched in Mumbai, with both above and below the line marketing thrusts, it
proved to be a rave. Encouraged by the response Canon launched 'Hamaari Delhi'
in the nation's capital. Now under this capital venture Canon will be investing
in the Delhi and NCR regions, using Mumbai-like strategies. The campaign will
focus on Canon's Consumer Systems Products (CSP) division that deals with the
entire range of IT peripherals from Canon's stable.

Sanjeev Soni of Amconics, like several of the aforemen­tioned, is very much
all for roping in of celebrities. He recalled an incident where he was part of
The DQ Week's IT Panchayat and a partner asked him whether he had laptops
featuring Shahrukh Khan. That made him wise to the suggestion. And now he says
he keeps eyeing the moment when he can get a celebrity to hoot for him too. That
could happen, he says, when his company launches its full range of LCDs.

Manisha K

manishak@cybermedia.co.in