It isn't very often that a human resources (HR) service provider goes big on advertising spend. But the Euro 17-billion firm, Randstad, has done exactly that with its association with Formula One (F1) in India.
"Since we are only one-year old in India, people don't know much about us. To address this challenge, we need an effective brand building exercise. Just like any consumer brand, constant brand-building initiatives will be required to sustain our leadership position," says Robert Jan van de Kraats, chief financial officer and vice-chairman of the executive board.
Why F1? The company has been the official partner of Williams F1 team since 2006. Two years back, when F1 came to India, Randstad continued its association. "F1 is among the most well televised sports and it is all about engineering, perfection and excellence, which are our manifesto too," explains Kraats. In sports, participants have the maximum ambition which motivates them. That is why the company also supports Dutch Olympics and has its own academy.
These activities have increased the visibility of the company substantially. The number of people (candidates) who visit the company's Facebook page has gone up dramatically - from 450 per month in April 2012 to 26,000 after it started the F1 activities. "There has been an increase of 20-30 per cent, in case of clients in the younger age group of 20-30 years," adds Balaji.
The target is to become the leading human resource brand in India, and globally. In 2012, the brand was ranked 181, up from 185 in 2011, according to Brand Finance's global 500. "When the brand reaches 150, it will become the number one HR firm globally," says Kraats, adding that traditionally, the company has advertised in radio and television as it wants to be seen as a consumer brand.
While it is still initial years for the company, its market share is 5.1 per cent and revenues of Euro 200 million. In comparison, it has 50 per cent market share in the Netherlands and about 35 per cent in Belgium.
Though the Indian operations are yet to contribute to its global profits, the firm already has 2,000 employees and has opened 43 offices - the highest number of people in a single centre, globally.
Founded in 1992 as Ma Foi Management Consultants by K Pandia Rajan, the company was acquired in 2004 by Vedior. Ma Foi became a part of Randstad in 2008 as part of global acquisition of Vedior by Randstad and Ma Foi was renamed Randstad in 2012 with a new set of management team.
As Kraats puts it, "Today, I am not looking for dividends from the Indian operations. At present, there is no cash out of India. Randstad India will retain the cash which it earns. But 10 years from now, things will change," says Kraats.
"Since we are only one-year old in India, people don't know much about us. To address this challenge, we need an effective brand building exercise. Just like any consumer brand, constant brand-building initiatives will be required to sustain our leadership position," says Robert Jan van de Kraats, chief financial officer and vice-chairman of the executive board.
Why F1? The company has been the official partner of Williams F1 team since 2006. Two years back, when F1 came to India, Randstad continued its association. "F1 is among the most well televised sports and it is all about engineering, perfection and excellence, which are our manifesto too," explains Kraats. In sports, participants have the maximum ambition which motivates them. That is why the company also supports Dutch Olympics and has its own academy.
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F1 is a good opportunity as the company uses this event to improve its interaction with clients. For instance, it invites its pay-up club customers to races. It's not just the races. Members can also witness how the cars are being assembled. It also holds an online Randstad F1 contest for candidates in which the winner gets to see the race. "The idea is to raise the profile of the company and to build a strong relation with our premium customers, engage with our candidates and employees," says E Balaji, MD & CEO of Randstad India.
These activities have increased the visibility of the company substantially. The number of people (candidates) who visit the company's Facebook page has gone up dramatically - from 450 per month in April 2012 to 26,000 after it started the F1 activities. "There has been an increase of 20-30 per cent, in case of clients in the younger age group of 20-30 years," adds Balaji.
The target is to become the leading human resource brand in India, and globally. In 2012, the brand was ranked 181, up from 185 in 2011, according to Brand Finance's global 500. "When the brand reaches 150, it will become the number one HR firm globally," says Kraats, adding that traditionally, the company has advertised in radio and television as it wants to be seen as a consumer brand.
While it is still initial years for the company, its market share is 5.1 per cent and revenues of Euro 200 million. In comparison, it has 50 per cent market share in the Netherlands and about 35 per cent in Belgium.
Though the Indian operations are yet to contribute to its global profits, the firm already has 2,000 employees and has opened 43 offices - the highest number of people in a single centre, globally.
Founded in 1992 as Ma Foi Management Consultants by K Pandia Rajan, the company was acquired in 2004 by Vedior. Ma Foi became a part of Randstad in 2008 as part of global acquisition of Vedior by Randstad and Ma Foi was renamed Randstad in 2012 with a new set of management team.
As Kraats puts it, "Today, I am not looking for dividends from the Indian operations. At present, there is no cash out of India. Randstad India will retain the cash which it earns. But 10 years from now, things will change," says Kraats.