When the Indian-owned multinational technology behemoth, Infosys announced on Thursday that it had signed up Spanish tennis star Rafael Nadal as brand ambassador for a three-year period, it didn’t come as a surprise. This was not the first time an Indian corporation was onboarding an international celebrity as ambassador.
Byju’s had hired Lionel Messi as brand ambassador amid layoffs and a massive cost cutting drive last year; gutkabrand Pan Bahar had roped in Pierce Brosnan in 2016, and almost a decade ago, Micromax had roped in Hugh Jackman for a whopping Rs 100 crore and Hero Motors had signed up golfing legend Tiger Woods for a record Rs 250 crore.
But why would Infosys — which posted consolidated revenues of Rs 146,767 crore in FY23, has 343,234 employees spread across 274 locations in 56 countries, and which has never felt the need to enlist the services of a brand ambassador – want to pay crores on the 22-time grand slam champion who has just dropped out of the world’s top 100 for first time in 20 years?
In today’s world, says Indrajeet Mookerjee, president (South and West), Dentsu Creative India, there are no boundaries for brands and celebrities. “Brands hire global celebrities for a variety of strategic reasons, including increasing visibility and reach, improving brand image, improving recall and recognition, and expanding international operations by leveraging the celebrity’s popularity.”
But none of these factors would have moved the needle for Infosys. What would have is the desire to build an appeal that cuts across boundaries. Aahana Mehta, director, Talent Partnerships Pollen (Zoo Media), points out that premier global sports such as football, tennis, and cricket have the power to unite diverse cultures worldwide.
Adds Harikrishnan Pillai, CEO and co-founder, TheSmallBigIdea. “When a brand has the ability and the willingness to spend for an A-list cricketer or a global star, it is certainly not looking at direct ROI. They are looking at a brand rub-off — they already have enough equity to grab eyeballs on their own, so they are looking at borrowing some equity or certain specific qualities from the star.”
Nadal, who counts Emporio Armani, Babolat, Heliocare, Telefonica, Banco Sabadell, Tommy Hilfiger, Mapfre among his endorsement partners, is the epitome of speed, consistency and respect for his craft. “These might be some of the qualities Infosys wants to highlight as it fights challenges such as slowing growth, supply chain disruptions, soaring inflation while it scouts for new ways to gain market share,” says an analyst.
While such deals can help build an “aura”, it’s important to keep in mind the potential risks. The reputation of the brand may suffer as a result of controversies or unfavourable celebrity behaviour. Tiger Woods lost several sponsorships in the wake of his infamous SUV crash and coming to light of his numerous affairs outside marriage.
Gatorade was one of the first to drop him, followed by AT&T, Accenture and Gillette. Indian audiences were shocked by Pierce Brosnan’s recommendation of pan masalaproducts, resulted in a huge public uproar, with both the brand and the celebrity deciding to quietly exit the partnership.