NEW DELHI, November 22: Greeks bearing gifts are traditionally suspect, but it is important to remember that every gift is not a Trojan horse loaded with dubious intent. There is always the gentler example of the gift of the Magi, of frankincense and myrrh for infant Christ.

Though common, corporate gifting has never been a specialised activity and was routinely tackled by the organisation's staff. Over the years, however, specialised agencies, mostly small entrepreneurs eyeing a lucrative opportunity, have aggressively marketed their expertise to match the occasion to medium and large corporates.

This has spawned a breed of consultants who specialise in corporate gifting. Working in close association with the company's public relations advisor, they devise a gift programme customised for the various target group. Some consultants also source the gifts and design the packaging.Another reason to subcontract it is that the rates offered by these units are competitive as compared to the market bought-out rates and the package is comprehensive.

Says Sanjay Lohia of Signature Leather: "There are no organised manufacturers for corporate gifts. Small manufacturers have taken the lead. Corporates purchase a lot of gift items, and most of the purchasing is on cash basis. It provides great opportunities to enterprising individuals."The occasion for corporate gifting are many-the festive season, corporate milestones, national anniversaries.

Says Venkata Somaya of Perfect Relations: "Corporate gifts are distinguished from other types of commercial interaction in that they seek to give the company a human face. They are an expression of existing social relationship or aims to establish a new one that differs from an impersonal market relationship. Digital technology may have facilitated communication but it is no substitute for direct personal contact." And this is a reason why corporate gifting is an integral part of corporate culture.

N Gopinath of DSSI Export says: "Depending on the type of the client we are gifting, we customise our service. Generally, we have two type of clients-Indians and foreigners. For the Indian clients, gifting is based on our analysis of the customers' psychographic status. For foreigners, who mostly are from western Europe or the United States, we prefer giving a piece of Indian art as a gesture of goodwill. Finally, the mission of the exercise is to have a feeling of appreciation for our client."

The gift can be anything -- cash awards, holiday packages, small items, jewellery.

Anil Moti of Uptime Electrical Co says: "Gifts not only cater to the suppliers and customers but also to the star performers of the organisation's own staff. At the higher end of the spectrum, corporates don't really care how much they spent to make their employees and clients happy. That is the specific reason why prominent holiday destination have emerged as very exclusive presents."

Corporate gifts are an extremely elegant cost effective way of reaching the right people and serve to enhance and maintain the company's image and goodwill.

Says Somaya: "Corporate gifting complements the company's advertising by building a relationship which lead to greater recognition and acceptance for the company among its target public. A gift should therefore be part of an integrated communication strategy, a mix of public relations and marketing, since it ensures greater acceptance of the service or product the company is offering. A gift also gives a commercial organisation the opportunity to acknowledge the role played by different people in its areas ofoperation."

The initial start-up investment can be anything from zero investment to up to Rs 10 lakh. It is low if it is being sourced from any other party. This is specially the case if one is dealing in art pieces. But if the person is aiming to set up his own manufacturing unit, then the cost element is higher.The economies for a corporate gift vary depending on the nature of the target person. The margins for the small-time operator varies depending on the scale. Says Lohia, a supplier of leather gift items: "As the quantum for any specific style is more, we can break even even by having small margins. So, the bids are quite competitive."

But whatever the case, an entrepreneur has minimum 15 per cent as margin. If the gift item is a piece of art like a painting or a dummy model, then the margins are as high as 40 per cent.

According to Lohia: "Quality is not an important factor. But when quality comes, the quantum is very less."

The final decision of selecting the gift vests with the decision maker in the company with help from the consultant. Says Somaya: "Everything cannot go well with everyone. It is here that the role of the consultant comes to the fore."

Says Somaya: "Corporate gift giving in a digital world is a highly technical subject requiring careful segmentation of target groups into primary and secondary groups. Detailed research is required into the lifestyle and consumption pattern of these groups, as well as the analysis of recipient profiles. All the factors will determine the choice of gifts which have to be relevant to the image a company seeks to project."

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.