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