A TRUE HERO KEEPS HIS PROMISE!

Apple is a unique company for it’s loved by many and envied too by an equal number of people, especially its competitors. First, every mobile phone company tried to copy the iPhone; and now, taking subtle shots at the iPhone is a gimmick being used by all. However, in November 2011, Apple’s most aggressive competitor Samsung went a step further as it blatantly compared its Galaxy S II model with the iPhone. The advertisements poked fun at the iPhone buyers who were shown as people ready to stand in a queue for days to get their hands on the latest iPhone, while a better phone (meaning the Galaxy) was already there with the smarter ones. The ad mocked the iPhone users for buying the iPhone4S when in fact there was no visible difference between iPhone4 and 4S. Moreover it did not have a great battery life and its screen was not as wide as that of the Galaxy. Whether the Galaxy is better than the iPhone is secondary, the debate is, “Is this kind of advertising going to work for Samsung?” It has managed to get everybody’s attention with its provocative ads; but would this help it sustain in the market place?

Talking of ‘provocative’ advertisements Unilever found itself in a tight spot when its internet campaign for Lynx deodorants was banned by Advertising Standards Authority (US) as it was considered degrading to women. To prevent further damage, on November 25, 2011, Unilever immediately posted a “Sorry from Lynx” video on YouTube, which featured the same model (this time, less provocatively dressed) returning all the props she had used in the ad and saying sorry to the viewers. Sometimes brands lose focus and do things, which appear to give quick results but can actually prove fatal for the brand in the long run. It was named one of America’s hottest brands in 2010. After spending close to $23 million in advertising (in 2009) on its ‘Easy- Tone’ shoes, Reebok was hot property as its shoes sold like hot cakes. Approximately 5 million pairs of ‘EasyTones’ were sold in 2010 alone. Every woman wanted these ‘magic’ shoes that could do wonders to her figure without much effort. It seemed too good to be true. Well, it probably was, for in September 2011, the Federal Trade Commission (US) announced that Reebok had deceptively advertised toning shoes and apparel; subsequently, Reebok was asked to withdraw its advertisements and pay $25 million as settlement charges. The marketer, though still standing by its claims, said that it agreed to pay to avoid a protracted legal battle. For a company that spent $23 million in 2009, then another $31 million in 2010 and add to that another $10 million in 2011 in marketing its ‘toning’ products, this was a big blow. It was after all a brand positioning strategy that was created and nurtured for 3 years. Now the company will not be able to use this strategy anymore.

Yes, the market place is tough and times are even tougher nowadays, but this growing competitiveness should not force marketers (and definitely not the big ones) to succumb to pressure and take recourse to unethical means. Poking fun, using sexual innuendos or making promises that are just not true are not things that the consumer of today likes.

The consumer is very finicky and your unethical means may put him off.

BEWARE OF COMPETITORS

As products get similar, as market shares get reduced, companies are doing what it takes to win in the market place. Even before the consumer responds, it’s your competitor who responds to your marketing strategy immediately. The response could be a counter advertisement or even a complaint. Gone are the days when companies were content to fight on TV through commercials or in the grocery-aisles; today, increasingly, the battle is fought in the courtrooms. Not surprising that the number of complaints to get the competitor’s advertisements withdrawn have increased manifold. In fact, according to an article in the New York Times, never have there been so many complaints been lodged by brands against their competing brands as have been done in the past few years. The number of legal battles has increased dramatically too, especially after the recession. The goal is not to get money, but to snatch away market share. Everybody is keeping an eagle watch on everybody else. Brands are going to any extent to pull the competitor down. Pantene Conditioner challenged Dove on its claim that it ‘repaired’ hair better than Pantene. To prove its claim, Dove did a study which measured the ‘combing force’ required for treated hair, it also provided statistics on number of hair breakages in a 200- strokes-per-tresses test. Finally, it got an expert to defend its decision of using ‘wet combing’ instead of ‘dry combing’.

You need to go to ridiculous heights to stay in business. Most importantly, you need to be alert or else you could get sued and lose out to your competitors. A few months back, Molson Coors was quick to complain that its competitor Heineken’s ads, which showed a man at a party impressing the guests with his stylish moves, was an irresponsible ad because it gave the impression that alcohol could enhance personal qualities and talents. Heinekin managed to prove that this was not so as nowhere was the man actually shown drinking the beer. It saved a good ad from being taken off air by irrational complaints from competitors. The point is, right or wrong, you will have competitors gunning after you, trying their best to pull you down; so just making a good advertisement is not enough. You must have your defenses, your justifications planned even before you release the advertisement, or else you might not be able to save your best campaign and you may lose the market share!

THE REAL LOSERS

It’s true that brands are doing everything possible to pull their competitors down. Is it worth the trouble? In 2008, Campbell Soup claimed that its soups were made with ‘tender love and care’ while those of General Mills were made with MSG (a banned chemical). As expected, General Mills too immediately retaliated. Then both companies went and complained to the advertising review division. The outcome of the complaint and counter complaint is not important. What’s interesting to note is that the sales of the soups of both companies have kept declining ever since. The consumer refused to trust either of them.

When healthy comparisons turn to mud slinging, both parties lose. A brand is a promise and all brand makers should remember this fact and honor it. As consumers, we love our brands and listen to their claims and trust those claims. An intelligent marketer will never ever mess with the trust his consumers put on him. He will not use dirty tricks to outsmart his competitors, as in the long run, it’s the stronger brand that survives and wins. These petty tricks do manage to get attention, but they tend to put the consumer off too. The flip side is that today, the market is a very rough place and you need to be on your toes all the time. One wrong move could be disastrous.

There are better ways of increasing market share. Some of the good old things never get old-fashioned. Dove realized this as this year has seen its sales soar globally. No cheap gimmicks, it just concentrated on giving better products and its advertisements managed to strike an emotional chord with the consumers. Similarly, Chevrolet Cruze this year has become GM’s hottest selling car brand. When it comes to cars today, the consumer is looking for fuel efficiency and that is exactly what the brand promised in its advertisements: “40 miles per litre...”

It was not lawsuits and unethical ads that ensured that the Korean car manufacturer Kia became the most successful car of the year, but rather its focus on the consumer. Its target were young buyers so it focused on things this group liked; for example, an upmarket sound system, a robust engine, good mileage and some hamsters too! It used three cute hamsters in its advertisements to showcase the merits of its car ‘Soul’ – and voila, the car and the company today feature in America’s list of hottest brands! No poking fun at the competitor; but just a serious focus on brand building, and this mobile phone company has beaten the Goliaths hollow. It sold more smartphones in the third quarter than Apple or Samsung! HTC set out on its own just two years back (it used to be a nameless manufacturer that made phones for other brands) and today, this brand tops the US smartphone market.

There is no shortcut to success and nothing succeeds like simple hard work. The laws of business have probably not changed much as all these brands have shown. If you want to win, play with sincerity; for a brand is a promise and those who keep promises are loved the most. As with people so with brands, don’t let the other person lose trust in you. It’s the only way to become a true hero !

IS INDIA REALLY 4 NATIONS?

SO FAR, MARKETERS HAVE LARGELY PAID ONLY LIP SERVICE TO THE CULTURAL DIVERSITY WITHIN INDIA. IT’S TIME THEY DO MUCH MORE TO LEVERAGE IT TO THEIR ADVANTAGE

Companies are worried about the coveted FDI regulations for this market. Economists are worried about its massive poverty indicators and growing inequality. Politicians are worried about their next elections as usual, but perhaps much more today about simply getting caught! Business in general is worried about favourable government policies and reforms and also about the appalling Indian version of the term “infrastructure”. And on top of all these, the common man is worried about (including infrastructure, of course) rising prices on all fronts, corrupt and inefficient systems, uncertain markets, lack of a social security net… the list is quite endless.

Welcome to “Incredible India”, the term itself a perfect fit for this country, and not just because the words are catchy and rhyme well. It’s also because of their meaning. Not great, or awesome; but ‘incredible’, in simple terms, hard to believe. And that’s how intellectuals at different points of time have described the ascent of the Indian economy.

Nevertheless, marketers love stories, and the Indian story attracts them like few do. Goldman Sachs’ BRIC report laid the groundwork followed by many others. Another exhaustive report by McKinsey in 2007 gave some important indications of where India could potentially be. It projected, with an assumed CAGR of 7.3%, that India would triple its income levels by 2025. That will bring around 291 million people out of poverty and the middle class will rise by ten times over the period to around 500 million. What’s more, 23 million people would count among the wealthy, which would be more than Australia’s current population (around 22.7 million, Australian Bureau of Statistics, October 17). And the most exciting part, of course, is that the country has a combined young & working age population (14-60 years of age) that comprises nearly 54% of the total (UN, 2009 figures). Another 31.3% are in the wings to enter this group (age 0-14 years). India’s working age population is expected to edge out China by 2028.

This is a brief of the larger India story that marketers across the globe have grown to believe; and all it seems to say is that – unless you want to be a bit player on the global stage a few decades from now; it’s imperative that you invest in India. Of course, it’s a great story for shareholders of a number of MNCs as well, who have been terribly short of good news lately. However, before you hop on to the India bandwagon, you have to understand the fact that although the macro picture makes a valid case, it’s very easy to get lost in a maze if you are unable to grasp the intricacies unique to this market.

One of the most critical and overlooked aspects of this market is culture. Generally, marketers and analysts have attempted to either club the entire India as one (using economic segmentation) and look for a unifying theme, or considered it just too diverse to really merit the time and energy in segmenting it in this manner. Either approach is dangerous. In fact, my ongoing research provides compelling logic that supports the existence of India as 4 nations – North, South, East & West – and this has profound implications for today’s marketers. These divisions have a strong historical context and continue to be extremely relevant even today.

CONSUMER PARADIGMS

Art is a very apt reflection of life. And if you look at our movies, there are a number of stereotypes that have been used to define Indians in different zones. A Punjabi is often pictured as brash, impulsive, imposing and ready to pick up a brawl, or even join an ongoing one for company sake! Conversely, a person from Tamil Nadu is pictured as relatively submissive and also deeply rigid about his style of living. Mumbai residents are typically shown as immensely practical and down to earth. And a person from the city of Kolkata will be portrayed as too passionate about his state, ready to revolt at the slightest excuse and be ready for an intellectual solution to every problem, if not a practical one.

While extreme, these stereotypes are not without basis! Some research into consumer buying habits also brings out some vital differences in the four zones. A small perception-based survey across 4 metros revealed some interesting characteristics. West Bengal, for instance, has a strong history of revolution, and they harbor a fierce sense of pride in their culture. They are highly intellectual and able to achieve their goals (financial or otherwise) through proper planning. Purchases made by them are skewed towards long term assets like real estate. New Delhi has been an epicenter of power and also attracted a mix of cultures from across India, with a larger influence from the neighbouring states of Punjab and Haryana. There is a great obsession with earning money, and perhaps an even greater one with flaunting it. Down south in Chennai, one sees a conservative society that has a deep sense of traditionalism as well as a bit of a colonial hangover. Higher education rates and rise of industries like IT here have attracted wealth to a great degree from abroad, and people here do invest in certain luxuries as well. But customs and traditions are strong influencers, visible with the amount of jewellery they buy; an integral part of traditional attire. When you look west in a city like Mumbai, there is a very strong influence of the British Raj as well as of the traders that frequented the city’s shores. The city works strongly on the ‘time is money’ mentality and is tremendously practical and pragmatic; a vivid barometer of which are the local trains, used by people of all economic classes.

Now take a look at how this reflects on purchases. The benchmark J.D. Power Asia Pacific 2011 India Escaped Shopper Study talks about how regional patterns affect purchases. Exterior designing and style dominates in the North, while the West looks for acquisition costs as well as total running costs. The South in comparison looks for utility, is extremely sensitive on price and even considers opinions of friends and family before taking a purchase decision. The Vizisense New Age Shopaholics survey analysed the trends of users on group buying sites and saw West and South leading over the North when it came to online shopping. An eBay India study showed that South Indians were the most active buyers at the site at 41% followed by West at 27%. North seems more skewed towards offline buying. Divisions in the zones also reflect in reading habits. The National Youth Readership survey 2010 reveals that the southern region leads with 24% youth readers, followed by the west and east with 22%, the north with 13%, central with 12% and north-east with 7% readers. Food patterns are a very obvious differentiator across regions. For instance, mustard and soya oil is preferred in the north, sunflower oil is used commonly in the west and cottonseed/groundnut oil is used in the south.

Besides, there is a definite distinction in terms of the kind of advertising. Milward Brown studied nearly a thousand advertisements across markets in India and concluded that only one in seven had a pan-Indian appeal. Leading advertising agency Ogilvy launched a unique initiative Ogilvy Dakshin, in recognition of the marked differences in which North and South India perceived advertising and the observation that brands who were simply doing language translations were only spending money on further disconnecting from customers. By using local actors, dialects, songs, et al, Ogilvy Dakshin campaigns have successfully delivered visible growth for brands like Coke, Thums Up, Asian Paints & Fortune Sunflower Oil. One campaign worth discussing is the Fortune Sunflower campaign, since the brand was totally out of consideration for Tamil Nadu and Karnataka. The agency devised a series of campaigns showing south Indians confessing on their issues with eating restrictions and the advertisements talked about how having food cooked in Sunflower Oil was light and one could eat to his/her heart’s content. The campaign took Fortune Oil to number 2 in Tamil Nadu. The characters were so successful that the agency created a kind of serial (actually a series of ads with them). They also held roadshows that honoured women and gave them free snacks and had other entertainment activities. But the killer was the shuttle service they organised from one music sabha to another (Chennai has a plethora of these sabhas playing Carnatic music towards the end of the year). They distributed snacks cooked in Fortune oil in the buses, roped in caterers at these sabhas to use Fortune Oil and promoted all this through a media campaign. When you get that much into the local flavor, success can’t be far away.

MAKING CULTURE WORK

When it comes to success stories, there are in fact three broad categories that you can define – Indian companies successfully adopting regional positioning, regional Indian players becoming national/ global brands and MNCs leveraging regional diversity.

In the first category, one brand that comes to mind is The Times of India (TOI). Till a little over a decade back, the English daily market in India was broadly defined as TOI in Mumbai, Statesman in Kolkata, Hindustan Times in Delhi and Hindu in Chennai. It is said that changing newspapers is as difficult as changing your cup of tea/coffee. But within a few years, TOI raised the stakes with its invitation pricing strategy and became the leading English broadsheet of not just India, but also the world (readership of 7.47 million by June 2011 as per IRS). Its success mantra to a large extent was also customisation of content to suit local audiences. Rahul Kansal, CMO, Bennett, Coleman & Co., affirms, “Kolkata for example, is a group with a highly eclectic set of interests. So we have kept an eclecticmix of contents in our Calcutta Times. We may have, on the other hand, a far more Bollywood-oriented mix in some other markets like Delhi for instance; as I don’t think it is as wide (the readership orientation). Chennai is a city where even the English reader seems far more comfortable with his own traditions. The newspaper there reflects that.” Dabur is another instance, which successfully forayed into South India using local branding, marketing strategy and brand names. For instance, it renamed its ‘Dabur’s Lal Dant Manjan’ as ‘Dabur Sivappu Pal Podi’ (red toothpowder in Tamil) for the South Indian market. It launched Dabur Herbal Toothpaste in Kerala and Tamil Nadu due to their preference for Southern products and Dabur Shwaasamrit in Karnataka and Kerala as it provides relief from cough, cold and bronchitis that’s quite common in these regions. TV advertisements were also customised to provide a more rational appeal since that works more with South Indian audiences. Parle acquired Tops and the brand successfully took around 10% of the market in West Bengal & Assam in direct competition to a strong regional brand like Bisk Farm. It also took its Jhalmuri flavoured wafers national. Similarly, ITC launched Bingo Masala Chips for North India and then took the flavour across India. Local flavours in general do have a certain appeal across the nation. Apollo Tyres used the concept of diversity as well. Company Chairman O. S. Kanwar emphasised on this thus, “North Indian truck drivers tend to overload their trucks as compared to South Indian drivers. So we researched and developed different tyres for the two segments!”

When it comes to regional brands going national, the telecom sector is full of them. Bharti Airtel itself started from New Delhi and went into more circles across India and went global through a spate of acquisitions. The most recent case of a regional brand going national is Aircel. Till around four years back, it was limited to South India. With aggressive national intent, it launched simultaneously in eight new circles. Then it made a bid for 3G licences and did a national branding for itself by using Indian cricket team captain M. S. Dhoni. It has also brought customised offers for various regions. In Odisha, it launched the Rs.30p/min. call for STD from Aircel to any other operator and a balance transfer facility for its pre-paid subscribers in Odisha and unlimited free Aircel to Aircel calling in Bihar and Jharkhand for 30 days at a price of Rs.349/-. Its 3G services are now available across India barring 3 circles. The company, which had around 31 million subscribers by end-2009, crossed 50 million in January this year. Cavincare’s story is well known, which started from founder C. K. Ranganathan’s initiative of selling Chik shampoo satchets through bicycle vendors. He later took the brand to overseas markets like Bangladesh and Sri Lanka. Another instance is Amrapali Jewels, which started with one retail store in Jaipur. Rather than being conservative, they selected the most unique pieces of jewellery from across India and set up a luxury jewellery business, which has a presence across India and in UK, US, Sri Lanka, Spain & Nigeria (they designed the entire jewellery for the Hollywood flick Troy, which really launched them on the global stage). Waghbakri tea and MTR Foods are other instances of brands that leveraged their regional strengths to go national and global.

Some MNCs have also got equal to the task. Unilever’s India arm has understood it only too well after a number of setbacks from regional players like Wipro’s Santoor, Anchor Health & Beauty, Godrej’s No.1, Ghadi & Sasa. Now it wants to act like a regional player. An interesting instance is HUL’s launch of Brooke Bond Sehatmand tea, a tea they developed for the regional (more specifically rural) market with vitamins fused into each granule, positioning it as a health supplement. They further ensured that they customised tastes to regions, like catering to South Indian taste for strong flavours and dark colours. The Bharti-Wal-Mart venture, rather than go pan-India at the outset, decided to start with Amritsar in Punjab and then go further to North India with its cash & carry stores as it found the agri-rich state to be a lucrative starting point where it could start building a strong supply chain. Actually, the company strongly believes that supply chains have to be regional in India at least for now, since national supply chains aren’t so strong yet. Nestle’s Maggi has been a traditional success story of launching regional flavours from time to time and so has Lays from Pepsico.

There have been instances of failures or setbacks for major brands too, like HUL mentioned above. Wipro’s Santoor overtook Lux in south India while Godrej No.1 overtook Lux and Lifebuoy in the north in 2009. It’s amazing how Maruti, which is considered more apt for conservative and tradition loving customers, was not accepted too well in the South as it was perceived as a North Indian firm (south just accounted for around 20% of national sales till a few years back). Through innovative campaigns like the annual Dakshin Dare rally and launch of more economical diesel variants, the company claims to have improved its standing. Coca Cola faced a different kind of failure when it refused to acknowledge or appreciate local farmer concerns over water shortages in Plachimada, Kerala, and had to shut down its plant.

All in all, it’s time marketers understood the relevance of cultural diversity in India and bring it into this ‘4 nation’ framework. And like their environment keeps telling them everyday, they cannot rest at that, as they have to also then look at diversity within regions! Besides, the post-1991 generation, which accounts for over 50% of India, is confronting traditional values as well as getting exposed to modern, global ways of living. Not much research has been done on what kind of cultural orientations this youth market will display in the coming time and whether the diversity of previous generations will diminish or get stronger. Food for thought, isn’t it?

MOVE OVER CRICKET, HERE COME THE CARS

We are a nation that lives and breathes cricket, yet many feel that they are now getting an overdose of it. The 15-20 year olds today do not identify so much with cricket. They want something different, something fast and something trendy. Formula One seems to be the answer.

CARS VS CRICKET FOR SPONSORS

Kingfisher went ballistic with the promotions of its beer at the Indian Grand Prix held in Noida last month. Airtel was the title sponsor of the event. It ended its sponsorship of the Champions League Twenty-20 cricket even before the three-year deal ended. For a nation that is obsessed with cricket and for a sport that dominates advertising in India, when a big sponsor like Airtel backs out, is it an indication that things are changing? Is cricket facing boredom? Is there oversaturation of cricket? Perhaps. Think about it, Neo Sports, the official broadcaster of the India-West Indies series gave a 40-60% discount for a 10 second ad spot; add to that the falling viewership rating of the sport and you have your answer. Today, advertisers are looking for big sports properties other than cricket. Agreed, cricket was and will remain a religion in India, but the youth wants something more, and F1 is the sport that’s fashionable to follow and appeals to the young and restless. In spite of initial scepticism, the inaugural Formula One race was a success. To the surprise of many, the 3-day event drew a crowd of 95,000 spectators on race day.

FORMULA FOR SUCCESS

When it comes to sports, India has never really left a lasting impression. Except for cricket, there is hardly any other sport where it stands out. When it comes to international sporting events, then most often we have been left red-faced. Take the Commonwealth Games for instance, which generated a lot of bad publicity for India, and showed us in shoddy light. In contrast, the inaugural F1 race was loved by all. Finally, an international event was executed flawlessly by India. With only private players and with no government support, the event did well.

It makes complete business sense to be a part of the Formula One event. It offers global reach to both sponsors and fans alike. F1 is a far more lucrative sport than cricket. It has a reach that is much wider than cricket. The Indian Grand Prix was telecasted to 550 million viewers in 200 countries. It provides a global platform to brands, which events like T20 cricket fail to do. Consider this, there is zero audience for cricket in major economies like France, Germany, Italy, Brazil and Russia. At the end of the day, it is imperative for any sport to reach out to more people and F1 has that mass appeal.

Today, growth in businesses is going to come from emerging market like Brazil, China etc, and cricket does not excite many of them. If a global sponsor has to reach them, he needs a sport like F1 with a more global appeal. Indian companies are going global too. Many of our home-grown brands are growing fast and becoming big players in the new emerging markets.

Bagging the ‘title’ sponsorship was definitely a big deal for Airtel. For a game like Formula One, where team title sponsorships are rarely available, this was a golden opportunity for Airtel. Being the title sponsor gives one the maximum branding presence. The advantages are huge. Petronas, the international oil and gas corporation, last year renewed its title sponsorship of the Malaysian round of the Formula One and will hold the rights till 2015. In fact, this year the championship will be known as the ‘Petronas Malaysia Grand Prix’ (just as the Indian one is known as the Airtel Grand Prix). Not only will the event give Petronas huge visibility and global appeal, but will position Malaysia as a major motorsport hub and tourist destination.

In fact, that is why it is so difficult to get the title sponsorship, and it is usually contracted for a minimum of five years. The big title sponsors of Formula One have been, Vodafone, Renault, Virgin, DHL, Etihad Airways and Red Bull.

Red Bull in fact is an interesting case study. The sports drink manufacturer has spent more than $600 million in the last five years on F1 sponsorships and has its logo emblazoned on two teams’ cars. It was worth the money and effort for last year Red Bull received more than four hours of ‘free’ television airtime during the first fifteen F1 races. No one even came close to that amount of coverage save LG (LG incidentally did not invest much in cricket in India this festive season in spite of being a key player in IPL 4). More than being seen, it’s also important to be seen in the right places and F1 is ‘the’ place to be seen at for everybody. No wonder the US company Gulf Oil, which believes in being at the right place at the right time, decided to make its presence felt at the Indian F1 too.

F1 is bigger in all terms. Be it the money involved, the viewership, or even the duration of the event , it beats all sports including cricket or football. Many sports events finish in a day. F1 is a three day event where the biggest of sponsors, the biggest of companies and the biggest of business leaders hobnob. It’s a sport of big monies. Delta 3 is a company that receives all its revenues from fees that TV stations pay to screen F1 as well as the fees paid by circuits and sponsors of the sport. Despite facing the worst recession in living memory, in 2009, Delta 3 saw its revenues grow 6.4% to a record of $1.1billion. Bernie Ecclestone the founder of F1 and the CEO of Delta 3’s ultimate owner Delta Topco sure knows what will work and he definitely has a winner in his hands.

F1 NEEDS ASIA

However, with Europe reaching its saturation, with France backing out from the GP, Bernie needs a new and thriving market. Add to this the fact that UK has abolished tobacco advertising, along with the European Union , that has banned tobacco companies from sponsoring or advertising within sporting events, leaving Marlboro (from the Philip Morris International group), one of the biggest sponsors of F1, looking for new places to advertise. In fact, Marlboro had to remove its logo from the F1 Ferrari cars due to this ban. However, so high is the advantage of being associated with this sport that neither Ferrari nor Marlboro want to end their association. So they have found a new way to get out of this tricky situation. The Ferrari cars now do not (or rather cannot) carry the Marlboro logo but they now carry a ‘bar code’ design which is exactly like the bottom of the Marlboro cigarette pack! The team, after all, has a contract with Marlboro till 2011 worth a total of $1 billion and the team’s official name even now is “Scuderia Ferrari Marlboro”. Seems like a tough association to break.

Though F1 was primarily a European sport, the last decade has seen a shift ,with half the races being held in Asia (Korea, Japan, Bahrain, Abu Dhabi, India, Singapore and China) as many of the Asian countries are moving from the developing to developed nation status.

For the F1 organizers too, it makes business sense. India is a big market andits middle class is finally getting introduced to global brands. India is on the fast lane today, with its trillion-plus-dollar economy, it is Asia’s largest after Japan and China.

If F1 has helped improve India’s image on the international stage (after the debacle of the CWG), then on the flip-side India is a market with a vast potential that cannot be ignored by F1. According to a survey conducted by TAM Sports, the Indian Grand Prix garnered six times more average TRPs (television rating points) than any other Grand Prix ever held. Bookmyshow.com in three hours sold tickets worth Rs.1.5 crores.

The sponsors for long have been investing in cricket and there seems to be a fatigue creeping in. With such excitement around F1 among the Indian audience, sponsors have suddenly found new avenues to advertise in and diversify their portfolio. Not surprisingly, Amul decided to sponsor the Swiss F1 team Sauber. The sponsors are slowly warming up to the idea as is visible from the number of local brands that have associated with the sport. Red Bull and Tag Heuer have been old loyalists of the sport, but now we have Reebok, Gitanjali, Lifestyle, JK Tyre and many others joining in.

The sport is here to stay and slowly but surely it will develop a strong foothold in this market too, and give cricket a run for its money.

Be it the viewers, or the sponsors or the organizers, suddenly everybody is talking about and is excited about a new player in town. Move over cricket, the cars are here!