is the indian consumer brand ready
TRANSCRIPT
Is the Indian consumer
brand-ready?
BEEEEEEEEEEEEEP!Wrong question!
Does she have an alternative?
In fact, the key issue confronting today’s Indian consumer
can be summed up in one word
Look at the number of cars marketed in India
todayAudi IndiaBentley Motors LimitedBMW IndiaFiat IndiaFord MotorsGeneral MotorsHindustan MotorsHonda IndiaTata MotorsToyota India
Hyundai MotorsLamborghini IndiaMahindra & MahindraMarutiMercedes India Nissan MotorsPorscheRevaRolls-RoyceSkoda Auto IndiaSports Cars India
The market is flooded with brands
In the last 12 months alone we’ve seen the launches of . . .
20 new brands of toilet soap
Source: TAM
12 new brands of creams and moisturizing lotions
8 new face packs and astringents
Source: TAM
40 new brands or models of kitchen appliances
Source: TAM
55 new models of cars or motorcycles
Source: TAM
Source: TAM
72 new brands/models of mobile phones
To add to the confusion,By end 2007 there will be
Source: Technopak
10,000 exclusive retail showrooms
50 hypermarkets
1500 supermarkets
305 department stores
There are just too many options in every category
And if that’s not enough . . .
Life has become busierThe average commuting time of an urban Indian has increased exponentiallyWorking hours have increased drasticallyWork timings have changed - now we must work when the US or Europe does
Need to get actual figures
The Indian consumer has more choices and less time
to choose
So how does she choose?
? ???
?
? ?
She chooses a brandand sticks with it
It should be simple.
After all . . .
Our consumer doesn’t know and cannot process the totality of a brand or product– Nobody has the time to figure out what’s
absolutely right in a purchase decision. So she would infinitely prefer to have a brand she can trust and with which she can develop a relationshipA brand she can pick up blindly - without wasting too much time
Why should she think about which soap to buy?
Lux works
Pick up Lux!
Hey, it’s easier, doesn’t waste time and is altogether more relaxing
But . . .
Here comes the glass teat . . .
The current Size of the entertainment industry is Rs 40,230 Crore– With an estimated growth rate
of 20 % over the next 4 years
There are already 300 television channelsAnd the ad spend in India is just 0.48 % of GDP versus a global average of 0.96 %!
Source: Association of Indian Magazines
We haven't the ability,time or desire to absorb even
a fraction of all this
And everybody’s wooing the consumer in the same way . . .
Ford says, “Go Fida!”
And shows a car
SX4 talks about ‘real men’
And shows a car
Indica says, “You gotta be dumb!”
And shows a car
Verna talks about 250 horses
And shows a car
Isn’t this getting boring?
BRANDSLL??
‘The word brand is over-used, sterile and unimaginative’
Michael Eisner,CEO, Disney
In fact, the Indian consumer isn’t just brand-ready . . .
she’s brand hungryStarving . . .
Famished . . .Ravenous . . .
Moment of truth:
She’s ready –but are we?
Are marketeersdifferentiating
brands sufficiently?
Do all brands have a unique value proposition?
Do they have a unique emotional
proposition?
Are they based on a
unique insight?
Do they have anything uniqueunique
about them at all?
That’s why there’s a crying need for scientific, process-
driven brandingBecause there’s a crying need
for brands that consumers relate to and choose automatically
Question:
How do you establish a brand relationship?
Answer:
How do you develop a relationship with anybody?
First you’re attracted by his or
her looks and personality
But what maintains the relationship?
An appreciation of each other’s intelligence
A likeability and consistency of behavior
Two dimensions, in short
Both of which apply to brands as well
Branding today needs to be more sophisticated
and cannot be restricted to the single dimension of personality
A postulate
•Scope•Attributes•Uses•Quality/Value•Functional benefits
After all, a brand is much more than a product
Organizational Associations
Brand personality
Symbols
Brand/Customer relationships
Self-expressive benefits
Emotional benefits
User imagery
Country of origin
Brand
Product
It is the business as a whole
Hence, it is critical for marketers to first evolve a strategic Brand Identity And it must be done before spending the big bucks in creating the physical identity.The strategic identity evolution needs to necessarily take into account the macro- organizational perspectiveAnd the business’ internal strengths and weaknesses This means that Brand Identity must be based on a dimension beyond conventional personality.
So what can be the other dimension?
Brand Intelligence
When Hindustan Lever launches a soap, the basic intelligence of the brand will be very different from a soap launched by Marico or ITCThat intelligence is inextricably linked to the brand owner’s core strengths and weaknessesErgo, that intelligence must be reflected in the way the brand behaves
Unfortunately this is something most brand-builders ignore
We believe, while creating a brand, we must take into account . . .
1. Brand Intelligence:
1. This reflects your brand’s fundamental abilities and internal competencies: that is, your brand’s DNA.
2. It tells you what your brand can do
2. Brand Personality:
1. Expresses your brand’s behavior: that is, how it reacts to environmental factors and upbringing
2. It tells you how your brand will do what it does
INTELLIGENCE + PERSONALITY
By taking into account two dimensions,
a brand incorporates . . .
Realistic marketpotential
Consumer attitudes
The environment
A company’s internal strengths
In short, the whole picture
Internal
Market
Consumer
Environment
So your brand identity becomes more than just a branding tool
It becomes abusiness
governance tool
One that gives you clear directions for:
Product Portfolio ManagementNew Product DevelopmentRetail & Channel strategySales Organization Structure and training requirements Complete communication plan (both above and below the line)Detailed briefs for Ad Agencies, Designers and Merchandisers to create appropriate creative products
Some examples
TVS Tyres - where brand identity became the brief for tyre designNamdhari Fresh - where brand identity dictated the way the store brand’s products were designedGreenlime Tissues - where brand identity decided the distribution strategy
Implications for the marketer
Since the consumer decision making process is complex and most of the times an irrational one, it is a common belief across marketing and branding professionals and consultants that there is no science behind it. We at Vertebrand hold a contrarian view. For us, marketing and branding is as much a science as it is an art form. – The entire approach to understanding the minds of the
consumer and developing the brand identity and essence needs to be scientific.
– While this needs to artistically and creatively translate into communication and market activity that is captivating.
Finally, all brands have only one raison d’etre
Right?