Brand Ambassadors and Brand Endorsers

Oscar Award winner AR Rahman had to grow and maintain his long locks for five years during his association with Sony Music in the late 90’s. The boys, men and uncles of the Indian Cricket team must wear formal clothing only from Pantaloons during their official public engagements. Shah Rukh must wear only a Tag Heuer (even as a local tapori in the movie DON) and Abhishek must use only a Motorola mobile outside his home. No one knows if Big B Amitabh Bachhan actually drinks only Pepsi at home and munches Cadbury chocolates with his grand children and if Sachin drinks only Boost to build his energy levels. Superstar Rajnikanth has endorsed only one campaign – The Polio Immunization in the early 90’s and never supported any particular Brand ever. Apparently, he doesn’t use a mobile phone and a telecom operator’s connection in his own name because he doesn’t appreciate the fact that they may consider his usage as an endorsement!

According to a recent study by Sunday ET-Synovate, the most popular Brand Ambassador in India is the King of Bollywood, Shah Rukh Khan followed by ace cricketer – The Little Master, Sachin Tendulkar. While Khan earns over Eight Crores (USD Two Million) a year, Sachin earns about half of that; quite a lot of money by Indian standards. Not surprising for a movie and cricket crazy country like ours. A number of actors and sportspersons endorse products and services that are required for day-to-day living, many of which are discretionary purchases. The earliest acts were for “Lux” body soaps by erstwhile Bollywood actresses in the 80’s and that of the former cricketer Sunil Gavaskar who appeared for a TV Ad in the 90’s for “Dinesh” suitings. The soaps matched the complexion of the actresses and the formal attire matched the cricketer’s profile – a gentlemanly appearance but a terror on the field. By the late 90s, as many as 50 products were already being endorsed by as many or more personalities!

Actress Madhuri Dixit for Lux and Preity Zinta for Liril, the public noticed Aishwarya Rai, former Miss World, budding actress and future Bollywood queen Rani Mukherjee and the most versatile actor Amir Khan when they appeared together for a Cola Ad. Later on, Pepsi and Coke roped in over a dozen actors and sportspersons from time to time, so did Titan (watches) and many automobile manufacturers. So much so, that most actors are obliged to show (off) their brands even in their movies while sports persons are expected to carry the Brands in public.

However, in the history of Indian advertising, I believe there would be more examples of “ordinary people - aam admi” endorsing Brands than celebrities. Some of such Brands and products have more market share even today, than their competitors who pay hefty fees for their stars. For Ex., Raymond Suiting’s, more famous for its ad jingle than anyone else in its segment, has never used strong celebrities, when compared to Reid & Taylor (BIG B, Amitabh Bachan) and Belmonte (Shah Rukh Khan). Washing Powder Nirma and Surf used and continue to use home-makers and mothers to demonstrate the power of the detergents. So did Glucon-D and Crocin, both medications for daily use for general health care and common ailments respectively. Complan, a premium health drink showed young siblings proudly screaming “I am a Complan boy, I am a Complan girl”. Bajaj Scooters and Luna Mopeds were more popular because they were being shown as used by common people. Bajaj Electricals emphasized on the quality of their bulbs using common households.

The first Indian Retailer to use a celebrity for endorsing the business is The Future Group in the year 2008 when MS Dhoni, presently the captain of the Indian Cricket Team was roped in specifically as a face of “Big Bazaar Fashion” – a vertical that’s most popular among the fastest growing Indian middle-class.

But there is a reason that most Indian Brands and Retailers don’t need an ambassador, rather an endorser. Over 60% of India (largely rural) doesn’t have access to popular media such as TV & Radio while over 30% of India cannot read (newspapers or magazines). What works with this segment is word of mouth popularity and performance of the Brand/Product. Even in the urban areas, I wonder how many including me and you would buy certain Brands because they are endorsed by our favorite actors and sportsmen. For sure, I wouldn’t buy Tag Heuer because Shah Rukh sports one – I just don’t like the collections at the entry level which I can probably afford while the Korean cars that I have are not just because my favorite actor endorses them.

Brands and Retailers should rather focus on the promise for what the product stands for. It would be worth investing the monies on the buyers – the consumers, as they would automatically turn endorsers, vouching for the consistency of the quality of the products and over a period of time, would become Brand Ambassadors. For a nation of a billion people, a million ambassadors is all is needed – for every aspiring Brand to survive in the long run.

Coins and Consumption!

There is something very close to coins and consumption – the ubiquitous small round ones that could buy many things in this country. “Annas” moved away from the system before I was born, but I still remember seeing and using the aluminum 5 paise and 10 paise coins – have actually bought toffees outside my National English School in the erstwhile Madras! And then there were the 10, 25, 50 paise and Re. 1 coins. A lot could happen with this One Rupee Coin those days, and probably even now. In the ‘90s, telecom companies used this opportunity very well – to urge people to make calls from the PCOs – Re.1 for a three minute call... One could see the colorful “weighing machines” in public places – for a coin, a one rupee coin, you could check your weight and the weighing slip would have a nice message on its reverse! And then the Confectionary companies used them so well too – chocolates, toffees and bubble gums and more for just Re. 1. A lesser known South Indian company launched “Halo” Shampoo sachets, for just Re. 1. And then the world biggies in India followed suit. Rest is history, that sachets were part of mainline production for most Indian and International FMCG companies in India. A Rupee was almost the bare minimum, whether it was given to someone seeking alms or to the Almighty inside places of worship.

By the late ‘90s, this was slowly being replaced by the Two Rupee coins. Not for too long, as they were soon replaced with the new Rs. 5 coins in the new millennium. The economy was growing well, people were earning more than in the previous decade and there was basically more money in the system – more coins under circulation. Product manufacturers started to market their products around this price. The most memorable one was the famous Bollywood Khan endorsing a Cola and emphasizing on “Paanch” meaning, Five in Hindi. Needless to say, competition and complementary products followed suit. From confectionary to tooth paste sachets, from magazines to chips. Nestlé’s MAGGI, the most popular ready to cook noodle brand in India has been selling its smallest SKU for just Rs. 5, for many years now; only the quantity inside has been steadily reducing. Tea and Coffee at Fast food joints, including a plate of Idly or Vada Pav were following suit and so were telecom companies – this time around, placing ISD call rates at Rs.5 per minute!

Today, a five rupee coin is almost the same as a one rupee coin was 15 years ago! Almost everyone carries this around. While getting air filled for car tyres, people were shy of asking for return change and would thereby give a five rupees coin! I used to wonder, if this small boy who was filling air at the fuel stations was servicing 100 cars a day, that’s a lot of money!! To save and spend, of course.

Am sure many of you would have heard that there is a new Rs. 10 coin under circulation for some time now. I saw one today. Looks nice. Couldn’t dissect in detail; neither am I a metallurgist nor a numismatic. But was just wondering what the new Rs. 10 coin could do. Where would this lead to, say, five years from now. I would like to call this basic denomination as “easy currency” – something that doesn’t pinch while you spend, easy to carry and gets good value for the money spent. Let’s see what all this coin could do to Retailers – with the same examples as above.

Chocolates, could well go up the ladder in pricing, to the new “easy currency”. Keep more of the Dairy Milk and Kit-Kat near the cash tills and see them flying off the shelves. Chips and Wafers, that are already priced at this level, would see more throughput, especially nears schools and colleges – kids and adolescents would probably pick them up more than before. A host of other easy to consume products, from ice cream to jams, from tooth brushes to soaps, could be priced at this point. Easy Currency reigns.

The most famous and freshest natural beverage found in India, the Tender Coconut, will fit very well at this price point. Higher sales for this hawker; he gets to sell more than before and his family earns more than before. Milk, that’s currently priced between Rs. 6.50 and Rs. 8.00 per 500 ml would sooner than later move into this price point. And so would be the smallest SKUs of Cola companies. Ready to eat curd and tetra pack juices would see higher sales as people would see one coin per person. Intra-city transport companies (Buses and Metros) would have their fares in multiples of Five, thereby Rs. 10 being the average for city travel. Examples abound.

If making people consume more than before was so easy by introducing a new denomination, that too as a coin, then why didn’t the Government contemplate this much earlier – after all, the currency note in the same denominations has been there for years! My guess is as much as yours. Its common mentality, that the thicker one’s purse is, the more secure they feel. It’s quite common to see that most people around us change their wallets only when it starts to wear off – I mean, currencies start to spill out or coins fall off. Given the case, people carry small change always handy, and that’s where the “easy currency” plays the most important role. And most often, people hate carrying them, yet they must carry. And love to get rid of them as soon as possible. Only to carry some more. And the cycle continues.

The latest ‘easy currency” could get much more than what its predecessor could get and at a greater value for money. This is sure to succeed for some time to come now. Atleast in the Metros and larger cities. That the Re. 1 and Rs. 2 coins are still valuable in the rural and upcoming places is so true. They would take some more time, but will surely come to this pedestal soon. This blog came up when I saw the new coin this afternoon at office. Just seeing, was so tempting to use it as much. After all, coins increase consumption. And am looking forward to more of this; with me and those around. And see them spending. As always that I believe, consumprtion leads to growth.

Blame it on the Bell Boy!

It’s quite interesting for me to discuss two cases in the Service Business who are almost on the verge of going off the radar – one in a real sense and the other, almost gone. I am referring to Air India and Subhiksha – the former, India’s oldest airline and the other, India’s first Retailer to say so. Both were built by individuals and then handed over to the best brains in the country. Both were known for the inherent value that was promised, and to some extent offered to their customers. And something interesting and common to note in both the cases – Customer Service! Or probably the lack of it! If only the front-end staff took good care of their customers, would this situation have arisen? Especially the housekeeping boys – popularly known as the Bell boys – as in hotels. I guess they are the main reason for the collapse of these companies, which were also Institutions in some sense. The staff didn’t perform their jobs well and thereby the business collapsed. A common saying to be remembered: If you don’t take care of your customers, someone else will.

So, now that customers have shunned these companies and have gone to other alternatives, the bell boys and the front end staff must take the hit. Some must be sacked, some must forego salaries; and many others must agree to delayed payments. Good. Atleast now, they must realize how important customer service is in our business.

Well, having said that, should it really stop there? If a student fails in the exam, the school delays his promotion to the next class, and does not punish the teacher. Coz, the Teachers did their job so well, that they are not to be held responsible for the result of students. Sounds logical and is usual too, atleast in our country. I wonder how many in this society would accept the same with the student’s parents – they would be held responsible for the student’s failure. And if the student succeeds too, then they are praised. That too sounds logical. Naah. Both can’t be.

In the above business cases, all of us agree that Customer Service went for a toss. Projecting an imaginary “Maharaja” and promising a royal service and advertising worldwide was just not enough. And projecting a “Homemaker” and promising savings was also not enough. The promises must be kept up. And the promises must be kept up by those who made such promises - The Management and Investors who kept promising despite knowing that they wouldn’t come close to achieving it.

The need of the hour seems to be pulling up the business to reality, into action. And this can be won only by superior Customer Service. You would see that customers are not really missing these businesses – probably because they don’t remember them anymore. I have been a big fan of many authors and writers who propagate Customer Service. But I have my take on it. It’s not just enough to convert your customers as raving fans and the brand’s ambassadors. It is important to create a “love affair” between your Customer and your Business. Just the way customers love their spouse, their family, friends and pets. Customers must yearn to be associated with the Brand – to experience the service and to visit the store so often – probably because the staff is friendly and warm-hearted (no matter how old they are – pun intended).

Coming back to punishing – is it fair to punish those who just did what they were asked to do? Many in these two companies know inside stories and my blog is not a “chat-pata” filled Page 1 story ala the country’s largest gaspaper, err… newspaper. Is it correct to delay salaries of hundreds of innocent staff who acted upon the orders of the superiors? Some who were lackadaisical at work and handling passengers and some who did not order the right merchandise due to poor cash flow management. What about the decision makers? Foregoing a month’s salary or still being on LinkedIn with the previous company’s name in their headline is just not enough. Those who erred in these cases must be brought out in public. Hasty decisions that were taken in intoxicated mood must be revealed and tabled. And these persons must apologize publicly – to its shareholders, staff and most importantly, to its Customers.

Blame it on the Bell Boy was a classic comedy of Jerry Lewis – one of the best comedy artists the world has seen. Sounds nice for a movie, but not in real life. If the business succeeds, it’s because of the Team, its employees and mainly due to its Customers and if it fails, it’s because of a few individuals – those decision makers.

Long Live the Decision Makers. Let’s wish they take the right decisions. And for sure, not to blame anyone, but to apologize.