Promoters As Brand Ambassadors: Does The Strategy Really Work?

Can a company’s promoter be an effective brand ambassador? Will people accept what he/she says at face value? This thought crossed my mind when I saw Krishna Shriram, Executive Chairman of Usha International’s promo playing at high frequency on NDTV.

Yoga guru look alike Shriram who hails from an illustrious business family (Lala Shri Ram-Charat Ram) was talking about his company’s initiative. Curious, I looked up at the company’s website to learn that the Usha Silai School in partnership with NDTV seeks to empower rural women through skill development in sewing and tailoring, thereby transforming them into entrepreneurs to create self-sustaining micro-businesses to uplift their communities.

Shriram was inspired by the Gujarat government of then CM Narendra Modi. The state then placed an order for 60,000 Usha electric sewing machines and distributed it for free. This had a big impact in each and every taluka of Gujarat.

Impressed by this achievement, Shriram then replicated it across all talukas in India. And the series Kushalta Ke Kadam on NDTV showcases Usha Silai School’s initiative.

When a chairman of a 90-year old company gets personally involved in spreading this message it means they are very serious about women empowerment. It shows honesty of purpose. Call it CSR activity or social entrepreneurship. Kushalta Ke Kadam is now into Season 10 indicating brand ambassador Shriram is demonstrably effective.

The other person who is vigorously promoting CSR and philanthropic activities and leading from the front as brand ambassador is Nita Ambani, Founder & Chairperson of Reliance Foundation. The foundation has partnered with the Bill and Melinda Gates Foundation to empower one million women entrepreneurs across the country to help them achieve an annual income of at least Rs 1 lakh.

Nita Ambani is credited with one too many initiatives that empower women. The Foundation, set up in 2010, focuses in several areas including healthcare and education. What she brings to table is scale, size, deep pockets and execution capabilities -- that’s Reliance Group’s DNA. These combinations along with her passion to reach out to the under-served has created a big impact – Reliance Foundation has helped 86 million people so far.  That’s a big number indicating her magic is working.

Surprisingly, in the corporate world the number of promoters doubling as brand ambassadors are far and few in between. But two people stand out – Vijay Mallya and Baba Ramdev.

When yoga guru Baba Ramdev started endorsing Patanjali products. Nobody doubted it! After all, he was a living embodiment of good health and fitness. He did not become brand ambassador overnight. He built a connect with people across the country by organizing and conducting large yoga camps in a structured manner since 2002, and started broadcasting these sessions over TV channels.  Over the years, he has gained in heft and gravitas

As a brand ambassador all he had to do was say… he uses Patanjali’s products. Result -- Patanjali products have been flying off the shelves. His range of products --cosmetics, ayurvedic medicines, personal care and food products – has disrupted the FMCG market. It has given nightmares to MNCs and established FMCG giants. So much so that all of them started emulating it. Set up in 2006, Patanjali became a household name in a short span of time. Now the 60-year old brand ambassador is literally laughing all the way to the bank.

In the case of Vijay Mallya too, a connect was established between his lifestyle and his company’s brands.  Everybody aspired to be like him. Brand Vijay Mallya represented good life and people could relate with his group’s line of business – liquor, beer, airlines, IPL and even the Derby. His parties, Kingfisher’s calendar, top end cars, yachts, sartorial taste earned him the title -- King of the Good Times. He was the perfect brand ambassador.

But he just did not burst into the scene one fine morning. It took a longer while. His father Vittal Mallya who had built a tidy liquor business suddenly passed away and Vijay had to take over as Chairman of United Breweries in 1983 at the age of 28. Under his leadership the group then grew into a conglomerate of over 60 companies.

So, when he launched Kingfisher Airlines it took off from day one as it sported Vijay Mallya’s typical signature style. It became a different experience…passengers felt pampered. People say he was mirroring Richard Branson’s Virgin Atlantic, maybe so. But brand ambassador Vijay Mallya had delivered.

But in the case of Lalithaa Jewellery, a South India-based retail chain, the chairman Kiran Kumar Jain was the brand ambassador by choice. That was quite a bold move, given the fact his competitors had roped in top stars -- Kalyan Jewellers (Big B), Malabar (Alia Bhatt), Jos Alukkas (Dulquer Salmaan) to name a few.

Jain decided to swim against the tide by personally featuring in all ads. It was an unusual move. He was not a celebrity but felt the only way to build credibility and trust with his customers was becoming his company’s brand ambassador. It did yield dividends; from a single store in 1985, Lalithaa Jewellery has grown to 56 stores across 46 cities in South India today.

Interestingly, in the eighties what Sunil K Khaitan of the Kolkata-based Khaitan Electricals did was also unique. Khaitan Electricals, which made fans and other electrical appliances ran a print campaign with the headline saying “I have put everything into my business — including my name.” The promoter here did not put his mug nor his full name but only his family’s surname Khaitan.  Marketing experts call it “reputation-led branding”. The messaging that came out loud and clear was Khaitan’s commitment to deliver goods that meet with customer’s satisfaction. Post that they adopted the tagline: ‘Name is enough’.

Who can forget the promoter of MDH Masala Mahashay Dharampal Gulati, the brand ambassador of the company for decades before he passed away in 2020?  Now, his son Rajeev Gulati has stepped into his father’s shoes. In the initial stage Byju Raveendran of BYJU’S fame featured in the promos as teacher founder. So too did Sunil Mittal when Airtel was launched.

Globally, the owners/promoters are in favour of institutional branding from continuity point of view as also reputation risk. But there are exceptions. In the technology space we have seen Steve Jobs (Apple), Elon Musk (Tesla), Mark Zuckerberg (Facebook initially) and Jeff Bezos (Amazon early years) endorsing their products.

In the luxury and fashion segment Ralph Lauren, Giorgio Armani comes to my mind. Of course, there is this maverick Richard Branson (Virgin Group), Howard Schultz (Starbucks) and investment guru Warren Buffett (Berkshire Hathaway).

The general tilt is towards external brand ambassadors. But, a promoter as brand ambassador is a good idea as it builds trust, credibility and accountability and above all, it signals the promoter’s skin in the game instilling confidence among people.