The Hindu Business Line : Sporting plan

LIVING in the fast lane. That is Narain Karthikeyan. And Sania Mirza. And the Tata Group. All three are Indian entities who have made a splash globally. In their chosen arenas, they are convinced about being on the threshold of becoming big ticket players globally. All three have recorded meteoric growth in recent times. It has been a few years since Ratan Tata's global ambitions started gathering momentum, the economic downturn of the '90s accentuating the need to look across the seas for growth. So what better strategy than to pick on potential world-beaters in the sporting arena to endorse some of its brands?

Naturally, there was a need to bond this shared appetite for international acclaim by way of a contract, giving rise to a powerful brand equity. Karthikeyan has become the first Indian to race in Formula One, Sania Mirza is pretty much on her way to making it big in international women's tennis, pushing her way into the top 75. Both are Indian icons who are beginning to matter in the world theatre.

The Tata Group, meanwhile, has chosen to announce its arrival on the world stage by taking over a clutch of global companies: Tyco Global Network (VSNL), NatSteel (Tata Steel), Tetley Tea (Tata Tea), Daewoo Commercial Vehicle Co (Tata Motors) and Phoenix Global Solutions (TCS). According to Tata Sons' executive director Alan Rosling, the Tata acquisitions so far are nothing compared to what is coming up. Clearly, Tata is raring to go, as seemingly is the case with Karthikeyan and Mirza.

Romit Chaterji, Vice-President (Corporate Affairs), Tata, says there are a number of parallels between the group's business focus and a sport like motor racing. For a group that has been quick, aggressive and on the fast track for some time now, the strategy of backing an Indian aspirant to F1 was a perfect fit. "For the last 3-4 years, aggression has been the key to Tata growth plans, just as is the case in Formula One. We have been backing Karthikeyan for over three years now. Rarely have we picked anyone after they made the grade," says Chaterji.

This is part of the process that has been on for a while where the group has tried to zero in on potential world champions. Thus, Tata began backing Sania Mirza much before she really made the cut, points out Chaterji. Tata may soon look at institutionalising this process, which right now is being done at random. Quite natural that Karthikeyan and Mirza are set to stay brand ambassadors of the Tata Group for some time to come.

But that is only half the story, about those who have already come good. Consider this: The Tatas are backing Karun Chandok, Irfan Pathan and Yuvraj Singh and may soon look at putting in place a system to replace the `intuitive' spotting of world champions. And that may be the time to get some of the big names in Indian sport who have had a brush with the Tata magic - Leander Paes, P. Gopichand, Viren Rasquinha - to share experience with veterans such as Saurav Ganguly and Dilip Vengsarkar, who are still Tata employees.

Says Sanjay Lal, CEO, Percept D'Mark, a brand communication solutions company, "Tata is apparently playing a parental role by foraying into tennis and Formula One. Tata could have sponsored at least three cricket series with the kind of money it invested in Narain Karthikeyan."

Clearly, more and more business groups such as Tata are seeking innovative ways to touch their customers, and sports management is one aspect with better delivery on investments. One of the unwritten rules is to go where the consumer is heading. Formula One is an acquired taste for Indians, but Tata is betting on it staying fresh for some time to come. "Only established brands can take up new sports as return on investment takes time. If the Tata group is pitching on a global strategy with Formula One and tennis, the corporate has to become a familiar name amidst the international community. This can be only possible if these initiatives are followed up continuously through international ad campaigns," adds Lal. As was done by energy drink major Red Bull which now owns a team in Formula One racing. Such an initiative from the Tata fold may take a while. The question is whether Tata will remain satisfied for long being seen as a global brand only from the Indian perspective.

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