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 - rather
than 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 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 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.

















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 the
brand 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 about
the 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 has
become 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.


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 brand
evangelist 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 show
personal interest in the customers problems they will feel appreciated by him/her.
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. Your
company'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. But
it'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
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 the
companies 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.





















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 employed
truly 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 for
software 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 many
roads and taxes on interstate sales, we have established 30 warehouses nationwide, ensuring
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 taking
adventures on a dedicated Sony micro site.
In March 2011, Sony launched a major advertising campaign for its products featuring
Indias national 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.
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 been
ranked 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, Sony
plans 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 business
requirement. As per a survey conducted by Tower Watson across Sony Group companies,
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 quickly
replenished 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 it
anymore. 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.