research assignmnt cb final.docx

8/10/2019 research assignmnt CB final.docx

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Question 1

Read the case study given below and answer the questions at the end of the case.

Brand ambassador: employing real customers to get the word around.

People love talking about things that make them happy - including their favorite products and

brands. For example, if you really like an airline - they fly with flair and get you there at a reasonable

price or you just love your recently acquired Sony camera - it is too good to keep the knowledge of

the experience to yourself. In the old days, you would have chatted up these brands with a few

friends and family members, but these days technology allows you to spread the word about

products and brands experiences to thousands of other consumers.

In response, Marketers are now working to harness the new found communications power of their

everyday customers by turning them into influential brand ambassadors. Companies like

Sony, Microsoft and McDonald's are now developing a new breed of brand ambassador programs

that organize and multiply consumer to consumer interactions about their brands.

These programs employ everyday consumers who are passionate about their products to act as part

PR agents and part sales reps. Marketers select their brand ambassadors very carefully, based on

customers' devotion to a brand and the size of their social circles.

Once selected, the ambassadors are trained with real brand knowledge to go along with their

passion for the brand. The ambassadors then tap into friends, family groups and wider audience

through personal conversations, blogs, and online social media.

For the ambassador, rewards include product samples, gifts, discounts and token cash payments.

Perhaps most important to many brand enthusiasts, they get inside access to company's information

about new products and services about to be launched.

Brand ambassador programs leverage the power of peer to peer communication. Consumers hear

about products and brand experiences from others just like themselves - people they trust - ratherthan from commercial marketing sources. Sony used brand ambassadors to jumpstart the launch of

its new GPS camera, a high tech device that draws on satellite tracking technology to let you record

the exact location of every picture you take and later map them out using

Google maps. Sony selected customer ambassadors who like to travel, take pictures and

use online communications. "This is a product with emerging technology and we really need to

let consumers see people using it' says Sony's director of digital imaging.

Out of 2000 or more online applicants, Sony picked only 25 brand ambassadors. The ambassadorswere given a free camera and other equipment along with lessons on how to use them. They were


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encouraged to show the camera to friends, associates, and anyone else who asked; handout

discount coupons and blog weekly about their travel and picture taking adventures on a dedicated

Sony micro site.

College campuses are traditional fertile ground for ambassadors. Marketing companies identify and

manage college student ambassadors for diverse products and services. The brand ambassador

approach has its critics. For example, some view the practice as underhanded or deceptive, most

firms advise their ambassadors to openly reveal that they are representatives. Others worry that

brand ambassadors may be perceived as pressure agents who promote products because they get

free stuff - or worse, as annoying interfering people best avoided.

The best ambassadors, however, it has been found, are people who are seen as friendly, everyday

brand loyalists for love to talk to people about their own experiences.


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Question a: In your view, in the Indian marketing context, is the concept of brand ambassadors

likely to succeed? Justify your answer.

Answer (a): Brand Ambassador

A Brand Ambassador is someone who embodies the brand he/she is endorsing, providing thebrand with credible promotion and visibility. The need of a brand ambassador is very high in

todays competitive marketing environment as a Brand Ambassador plays a very important

role in the business. A brand ambassador is usually actresses, actors, sports players, singers

and similar celebrities who symbolize a brand in a positive manner and carries the message of

the brand out to the public. Brand ambassadors endorse products for which they get huge

amount of money. They also participate in marketing and launching campaigns of the

product. The management board of a company connects its product with certain qualities of

the celebrity figure and selects one of them as the brand ambassador for further

advertisement. Brand ambassador serves as the face of the company and offers an opportunity

to the company to make an excellent impression on prospects. Brand ambassador describes

the qualities of the product with an impressive personality and magnetic charm as well as

shape the fortune of products. The success of a brand relies on customer satisfaction, quality,

marketing, and somewhat on brand ambassador. So the companies select famous

personalities to endorse a product which help in building brand demarcation and rapid

awareness as well as connect with the consumer.

Good brand ambassadors know the product, they know the competition, and they know the

market. These are people that are constantly present and building up the reputation of the

company and stirring up the interest of the general public. Part of their job entails helping

potential customers discover the brand, so their role also has a bit of a sales function.

Fundamentally, though, their task is to keep the image positive and to help others learn aboutthe brand.

Whenever we think of kurkure, the image of Juhi Chawla comes before our eyes with a tag

line masti bole to kurkure. There are more than hundred examples like this as we connect

the products with the people who are the brand ambassadors of the products. The companies

go for celebrity brand ambassadors as the patron gets excited when they see their dream star

endorsing the products. To market product, some companies go for one brand ambassador

while some go for numerous.

Marketers use number of techniques in this competitive market to boost awareness of the

product and to detain the attention of new customers. Now-a-days brand ambassador hasbecome very famous sales and marketing technique. Brand ambassador is very important for

the success of business as consumers like to purchase products that are sanctioned by the

celebrities. Models are hired by the companies to be brand ambassadors for their products or

services which increase the opportunity to boost revenue. The brands and products that are

launched newly get the utmost publicity and attention of the public when they have shining

celebrity as brand ambassador. The brand ambassadors positive trademarks get relocated to

the brand as the patrons begin to view the brand in connection with the brand ambassador.

Brand ambassadors guarantee the patrons to trust in the reliability of the brand. Brand

ambassador endorse names of brand and products through interacting with sales prospects,

business partners, customers and the media.


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Having brand ambassadors is another way of saying there are people who are passionate

about your brand. This passion cant be bought, sold or dictated it must come organically

from the person who is endorsing your brand. Otherwise, the testimonial wont be authentic

and people will see straight through it like a senators latest excuse. An authentic brandevangelist is more effective than paid ads, company sponsored blogs and social media

business pages.

Aim of a Brand Ambassador

The aim of the brand ambassador is to give information regarding brand and product, to

generate sales opportunities as well as build consumer inclination of a brand name. A good

brand ambassador is the one who is interested in the product that they are endorsing. Good

brand ambassador also connects with the product without difficulty. The brand or product

that has less competition and enjoys a good market share then their need for a brand

ambassador is less while the product which has high competition and its presence in multiple

sections will have high need of a brand ambassador.

Role of a Brand Ambassador in Business

Be outgoing and friendly:

Brand ambassador must be extroverted along with looking smart. If the brand ambassador is

shy about endorsing his/her product then he/she would not achieve tasks. Brand ambassador

must show energy and excitement for the brand as energy will encourage the customers to

purchase the product

Increase awareness of the brand to the public:

Brand Ambassador increases the awareness of the brand to the general public and detains the

attention of the customers. Brand ambassador helps the patron to notice the charm of the

product by his/her own good looks.

Help the potential customer feel comfortable with the brand:

For customers, purchasing a new brand is confusing so brand ambassador can help the

potential patron to feel comfortable with the brand by personal discussion.

Increase the public's knowledge of the product:

Brand ambassador helps to increase general public knowledge of the product, brand or

service. They may be requested to give pamphlets and if they can answer questions it is even

better.

Direct further inquiries to the company:

Brand ambassador can direct the customers from where to get more information if they have

questions which are further than the scope of the promotion. As the brand ambassador showpersonal interest in the customers problems they will feel appreciated by him/her.


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Present a targeted image of the product:

Brand ambassador should be chosen carefully. If the brand ambassador is wrongly selected

then the targeted result will not be attained and the product will fail to connect with the

customer.

Work at trade shows or other promotional events when required:

Brand ambassador must complete the project by staying at the event for which he or she was

appointed.

Benefits of Brand Ambassador:

Excellent for morale.

Help to boost the sales.

Support the brand of the company.

Make customers and clients satisfied.

They have enhanced self confidence and self esteem.

Provide the company a defined competitive boundary.

They are supporters for the business and as a result staff churn is decreased.

So what is necessary for your brand ambassadors to succeed?

To make sure your brand ambassadors are the key to your success, it is important to arm them

with the knowledge necessary to spread the word about your products and services. Yourcompany's influencers and representatives should have a strong working knowledge of your

products and should be able to discuss your products as they relate to needs in the

marketplace. They should also have success in experiencing or using your product, either

firsthand or by watching someone else. And finally, they must be able to speak passionately

about your company and share their belief with others

You might feel overwhelmed by the notion of building your circle of brand ambassadors. Butit's easier than you might think:

You've already got a strong product or service. Now, make sure you have product literature

or other sales collateral that quickly and concisely describes the key features and benefits or

your company and its products.

Motivate your employees to assume their role as representatives of your company. Give them

the motivation and, if necessary, incentives to spread the word to friends and colleagues.

Tap your satisfied customers. Find those customers who are thrilled with their experience.

Get them to provide you with an endorsement or testimonial you can use with customer


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prospects and in your marketing and communications materials and arm them with the tools

necessary to spread their success stories with others.

Conclusion

The concept of Brand Ambassador is very successful and increasing the business of thecompanies in India. Now days, all companies are applying this concept to increase their

business in the market. They are hiring Brand Ambassador for launching their new products.


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Question b : Comment upon Sony's strategy of using brand ambassadors to launch its cameras.

What can be the possible dangers of using this approach?

Answer (b): Sony's strategy of using brand ambassadors

Sony India:

One of the most recognized brand names in the world today, Sony Corporation, Japan,

established its India operations in November 1994, focusing on the sales and marketing of

Sony products in the country. In a span of 16 years, Sony India has exemplified the quest for

excellence in the world of digital lifestyle becoming the countrys foremost consumer

electronics brand. With relentless commitment to quality, consistent dedication to customer

satisfaction and unparalleled standards of service, Sony India is recognized as a benchmark

for new age technology, superior quality, digital concepts and personalized service that has

ensured loyal customers and nationwide acclaim in the industry.

Sony India is one of the most recognized consumer electronics brand in the country, with a

reputation for new age technology, digital concepts and excellent after sales service. In India,

Sony has its footprint across all major towns and cities in the country through a distribution

network comprising of over 10,400 dealers and distributors, 270 exclusive Sony outlets and

23 direct branch locations. Sony India also has a strong service presence across the country

with 255 service outlets. Manned by customer friendly and informed sales persons, Sonys

exclusive stores Sony Center are fast becoming the most visible face of the company in

India. A distinctive feature of Sonys service is its highly motivated and well -trained staff

that provides the kind of attentive and sensitive service that is rare today.

Sony is committed to ensuring that both the products and the marketing activities employedtruly make a difference to peoples lifestyles and offer them new dimensions of enjoyment.

Relentless commitment to quality, continuous dedication to customer satisfaction and

unparalleled standards of service is what differentiates us from countless competitors and

reflects a true image of all that is Sony.

Sony's strategy of using brand ambassadors:

Sony has built a highly favorable brand image in India, which continues to see remarkable

economic growth, and is working to enhance its presence. This special feature looks at Sony

in India from a variety of perspectives, including the strength of Sonys electronics business

in the country, its local entertainment business initiatives and its growing role as a center forsoftware development.

Indias economy continues to grow. Sonys electronics sales are growing faster than the

countrys electronics market. In fiscal year 2010 (the year ended March 31, 2011), Sonys

market share increased in a number of high-growth product categories.

As India is geographically large, it is critical to operate in the most suitable way that fits each

city and region. Sony classifies the Indian market into three categories, ranging from small

cities to large metropolitan areas. Our 19 sales branches cover a total of 450 cities. To ensure

our customers can use Sony products without concern, we have also developed a network of

250 service centers across the country. As transport can be difficult due to the state of manyroads and taxes on interstate sales, we have established 30 warehouses nationwide, ensuring


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our ability to manage our supply chain effectively. Building on this robust operational

structure, we are accelerating efforts to expand our marketing activities beyond our

traditional customer baseIndias 40 million affluent citizensin an assertive bid to attract

consumers in the countrys middle class, which is expected to see further growth in the years

ahead.

Sony used brand ambassadors to jumpstart the launch of its new GPS camera, a high tech

device that draws on satellite tracking technology to let you record the exact location of every

picture you take and later map them out using Google maps. Sony selected customer

ambassadors who like to travel, take pictures and use online communications. "This is a

product with emerging technology and we really need to let consumers see people using it'

says Sony's director of digital imaging.

Out of 2000 or more online applicants, Sony picked only 25 brand ambassadors. The

ambassadors were given a free camera and other equipment along with lessons on how to use

them. They were encouraged to show the camera to friends, associates, and anyone else who

asked; handout discount coupons and blog weekly about their travel and picture takingadventures on a dedicated Sony micro site.

In March 2011, Sony launched a major advertising campaign for its products featuring

Indiasnational team captain, Mahendra Singh Dhoni, as Sony Brand Ambassador. The

highly effective multi-media campaign, which coincided with the Cricket World Cup,

included approximately 3,000 television spots and more than 150 outdoor billboards, as well

as in-store promotional campaigns.

India is going to be 5th Largest Contributor to global sales by FY12. Sony India achieves

sales of Rs. 6,313 crore in FY11 and aims 30% growth in sales in FY12. Cyber-shot is No.1

in Compact Digital Camera market with 34% share in FY11. Sony India announced its Sales

achievement of Rs. 6,313 crore in FY11 in Delhi on 22 May, 2012.

Sony's Plan in India:

Enhance existing distribution network from 10,400 in FY11 to 12,200 in FY12

Boost after-sales service with 285 service touch points across India in FY12

Allocate marketing budget of Rs. 450 crore in FY12

Plan headcount increase by 500, to take the total no. to 3,800 in FY12

Cyber-shot Digital Camera

With Cyber-shot, Sony retains its No.1 position in Compact Digital Camera market with an

unbeatable market share of 34% (In Qty.) in FY11 (As per Import Data), which is much

ahead of the nearest competitor.

In FY11, Sony sold 11 lac Cyber-shot cameras, which is expected to go up to 14 lac units by

end of FY12.


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Not only this, Handy cam has approximately 90% share of the camcorder market, and Sony is

the only player to drive this market in India.

Brand Equity

As per Customer Equity Tracking Study done by Nielsen in March 2012, Sony has beenranked as the No. 1 brand that comes to consumers mind, when prompted with the word

General Electronics. Not only this, Sony obtained highest satisfaction scores with the

biggest gap noted for Retail Price Stability, from the competition. This is a result of our

Dealer Satisfaction Study done by Nielsen, where selected dealers were asked to give an

overall satisfaction rating from a scale of 1 to 10 for each company.

Business Strategy

To strengthen its business operation, Sony India follows its core business strategy,

comprising of the following strong pillars:

Sales Channel Expansion:

Sony has its footprint across all major towns and cities in the India through a very wide

distribution network. Currently Sony has 10,400 sales channels including brand shops,

national chain stores and distributors. Sony plans to aggressively increase the network to

12,200 channels by FY12.

Service Operation Enhancement:

Customer Centricity is part of Sonys DNA. Over the years, customer service has evolved

from just repairs to providing fast, flexible, affordable and comprehensive solutions to

customers. Sony currently has 255 conveniently located service touch-points, which it plans

to step-up to 285 by FY12. As per a survey done by Nielsen on Dealer Satisfaction, Sony has

gained No. 1 position for after sales support, which is a reflection of Sonys excellent service

quality provided to its customer.

Aggressive Brand Promotion:

Sony followed a strong brand promotion strategy and invested Rs. 360 crore in FY11. All the

brand campaigns were supported with extensive Above-the-line and Below-the-line activities,

including print and television commercial, Web, PR, cinema and shop-front. In FY12, Sonyplans to pump up an investment of Rs. 450 crore, which will be in sync with the business

growth. Sony India has a very favorable presence over the digital domain as well and the

website (www.sony.co.in) is a ready reckoner for product information, retail outlets and help

guide and tutorials for product usage. It receives very heavy traffic throughout the year, with

about 3 crore visit in FY11 alone. Sonys Facebook page has more than 6.5 lakh fans and

over 5 lakh channel views on youtube.

Local Talent Development:

Developing local Indian talent is a very crucial element of Sonys growth story in India. Sony

plans to increase its manpower by 500 employees in FY12, to match the growing businessrequirement. As per a survey conducted by Tower Watson across Sony Group companies,


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when compared to other high technology companies in India, Sony India has the highest

score based on parameters such as Talent Management, Innovation, Collaboration,

Empowerment, Leadership, Values & Objectives etc

Sony India also has a very low attrition rate, which is again a testimony to the fact that

employees are comfortable with the work environment. While vacancies are quicklyreplenished with fresh talent, Sony India works towards creating a strong career development

programme for existing employees which helps limit the attrition. This includes various Sony

University programmes that staff have the opportunity to participate in. Sony has also

facilitated Indian employees with international career opportunities to work in Sony Group

companies across the world.

Outlook for FY12:

Sony plans to increase its sales turnover by 30% in FY12

FY12 Marketing Calendar:

Sony Indias brand campaigns for Cyber-shot (with Brand Ambassador Deepika Padukone)

and Handy cam are currently on-air. They started from last week of April and will be visible

till end of May, 2012. VAIO campaign, with Brand Ambassador, Ms. Kareena Kapoor, is

expected to hit in June, 2012 followed by BRAVIA campaign in the month of August, 2012.

Possible Risk of using Brand Ambassador Approach

Fear of the Rogue Customer

Giving up brand control is a difficult proposition because companies are terrified that their

customer may turn on them at some point and have a large following theyve established with

the companys support. I want to say its a valid fear, but it really isnt. Real customers who

truly believe in your products are far less likely to turn against your brand, in my opinion.

This is evidenced by the fact that I couldnt find a single example of a real customer going

rogue for this article.

Concern over losing a brand ambassador because they move on.

This is a reasonable concern. As you work with customers and they develop their own

following, it can be tough to manage a transition if they decide they dont have time for itanymore. I would recommend that you structure your brand ambassador channels in a way

that allows for multiple customers to participate in a single channel so you arent too strongly

aligned with an individual personality.

Fear of not controlling the brand message.

The best we can do as marketers is to influence our brands message and perception, but the

reality is that its largely controlled by our audience. The sooner we embrace the massive

word-of-mouth network that has been magnified through social networks, the more chance

we have of being a positive influence on it.


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