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World Cup remains a win-win strategy, assert market-movers

Muhammed Ash'ar Khan in New Delhi

India's defeat in its opening match against South Africa in the World Cup has dampened the mood of millions of cricket-lovers-cum-consumers -- the CLCCs -- and unleashed doubts whether the team will reach the knock-out stage.

The corporate dream-merchants, however, remain hopeful.

Not necessarily of India's chances, but sure that the Rs 10 billion multi-media blitz let loose by them on the CLCCs will pay rich dividends.

Ravender Zutshi, vice-president (sales), Samsung which has been hardselling its colour televisions, says, "The whole campaign is not based on the assumption that India will win. In the 1998 soccer World Cup, India was not playing, but the Indian people watched the matches all the same. It's true that we all want India to win, but it doesn't stop us from appreciating the cricket played by other countries. So even if India were to lose, there wouldn't be any loss of sales."

And so, greeting cards, paints, soft drinks, cold medicines, contraceptives, scooters, music systems, car tyres, pan masala, television sets, bank deposit schemes... anything seems fit to be hitched on to the World Cup brandwagon.

The blitz is marked by ads of discounts, surprise gifts, contests, quizzes, interest-free financing, spot-this-spot-that games, slogan competitions, dream team selections, free trips to England, road shows, new model launches, good luck events, gold medallions.

More than 100 companies in India are collectively splurging Rs 10 billion on advertising and marketing their products during the World Cup. Mobike major Hero Honda's ad spend is Rs 120 million, Samsung's Rs 220 million, Britannia's Rs 300 million.

Pepsi, the main sponsor on television channels ESPN/Star Sports and Doordarshan, is shelling out more than Rs 300 million while consumer goods supremo Hindustan Lever has earmarked Rs 150 million. LG's ad spend in India is Rs 100 million and $ 12 to $ 14 million at the global level. Samsung's ad budget for 1998-99 is Rs 600 million; Rs 260 million will be spent between April and June.

Suhel Seth, CEO of Equus Advertising, is not impressed. He says, "Most Indian companies suffer from a lack of imagination. They don't understand brand promotion. Everyone is trying to drink from the same cup, so to say. They don't realise that there may not be any brand relevance. There is too much money chasing a very bad deal in promotional terms."

Not everyone thinks so. Rajeev Karwal, vice-president, marketing and sales, LG Electronics, the Korean white goods giant, says, "Companies can get back value for the money spent on the ads from the first three matches."

Agrees Umesh Kumar, client servicing director, Mudra Communications. He says, "Even if India doesn't reach the Super Six phase, almost 80 per cent of the World Cup fixtures will be over by then. Most of the marketing companies who have invested in the event would have got their returns. Even otherwise, that is a calculated risk the companies are ready to take."

Seth disagrees, "Today, it is easy for every manager to say that the World Cup will ensure high viewership. But what happens if India gets knocked out? You may suddenly have televisions switched off. Many people switch off their sets once Sachin Tendulkar is out. So you can imagine what others would do when the team loses."

However, Seth concedes: "I don't think that if India loses, people who buy Samsung will say their television sets have half a picture tube. By that logic, if Pepsi sponsors and India wins, it doesn't mean that we're going to bottle-feed Pepsi to our babies!"

'Marketers like what consumers like. And consumers like cricket'

Business News