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--------~I S EC T IO N 2 MARKETING I C HA PT ER 1 4 BRAND CONNECT ~

A LO T HA S B EE N S AID A B O UT T HE G R O W TH O F RE TA IL IN IN D IA A N D T HE

S UC CE SS O F S OM E B R A ND S A N D F OR M A TS . T HE N W H Y D O A LA R G E N U M B ER

O F B R A ND S A N D F OR M A TS F A IL D ES PIT E T HE C ON SID E RA B LE A M O UN T O F

R E SE A R C H A N D V A LID A T IO N D O N E P R IO R T O T H E L A UN C H O F T H ES E IN

V A R IO U S M A R K E TS A CR O S S IN D IA ?

hy has the initial euphoria of brand entries and

announcement of retail expansions in the Indian

market decelerated to some extent today? The

reason is that some of the large-format retailers

and entities have realised that managing brands

requires a larger level of expertise and effort thanusing conventional Above-The-Line (ATU, Below-The-Line (BTU,

reward programmes and digital marketing activities.

Indian consumers while being brand conscious are also judgemental.

If there is a mismatch between what the brand promises and what is

being delivered the consumer is quick to change loyalty. Most brand

and format owners pay greater emphasis "in the store" on aesthetics,

point-of-sale display, product packaging, promotions, et cetera and

less on those who represent the brand at the consumer touch point.With the growth of retail in I ndia having taken off, most brands have

used the same level of engagement whether it's the use of launch

formats, brand ambassadors, publications or even social networking

formats. The lack of brand differentiation has even resulted even in

hiring the wrong kind of people across the various levels from front

end to the operational and top management which is why there has

been a high level of attrition as well as inconsistency in strategic

delivery. While organisations have recognised the fact that points of

sale are more than mere distribution points, they have focused onfactors such as design and technology more than creating a "brand

experience. "

Another trend is the transformation of retail models from company-

owned outlets to franchise outlets, which had slowed down a few

years back because of the high cost of real estate. Initially, because

of the restriction of FDI, most international brands and retailers had

chosen to work with franchisees or small business owners and this

came to a pause in between especially where expansion into tier II

cities and entry into high-cost malls or high streets were concerned.


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This has chang ed since 2009 as most significan t brands have started

converting into franchis e m od els and focusing on branding a nd the

whol esa le business. This has worked out to be a doubl e-edged sword

as the brand custodians have taken on the onus of building the

brand's credibility on themselves. They have left the responsibility of

the retail operations completely with the franchisees who are primarilyinvestors or entrepreneurs who have entered the retail business and

have more operations than brand management experience. There

is a visible inconsistency in client servicing between the consumer

touchpoints or retail outlets as a result of this growing phenomenon,

and further there seems to be a detachment in the mind of the

brand custodian as they l imit their interaction with the franchis ee on

areas related to the retail operations such as store fixtures, location,

ordering stocks, brand signages and visual merchandising, end-of-

season-sale (EOSS), financial terms and other sales and payment-

related issues. The need for the employees at theseretail points to "live the brand" is not articulated

elaborately. Another fallacy is the assumption that the

customer's enthusiasm for the brand will automatically

drive sales. Often the franchise e o r b usiness partner

assumes that the brand wil l sell by itself and they have

been proven otherwise in many recent cases.

The key to the success of any brand is the experience

it gives. While marketing, advertising and promotions

have always acted as agents of enticement, these

have also enhanced the expectations from the

brand and any mismatch perceived by the customer

between what the brand promises and what it delivers can result in

varying levels of emotion from loyalty to indifference to contempt.

Experience is a reality check between the brand's identity or DNA, its

communication (ATL, BTL , promotions , digital media) and its delivery.

In an emerging and rapidly growing market such as India, while there

has been a distinct and perceptible dev elopment of identity andcommuni cation, the lacunae has been on the delivery side especially

at the point of sale. It is the peoples encounter that shapes the brand

perception w hich in turn leads to growth and I::lrofitability rather than

merely creating communicat ion touch points.

Brands and retailers have adapted excellent practices in building

retail environments using design, technology and prese ntations and

to a fair extent brought in employee training programmes. But they

have rarely built up an opportunity fo r these employe es at the front

end to understand, adapt and live the brand to createan experiential environment leading to coherence

between the brand identity, its communication

and what i t needs to deliver. To live the brand the

stakeholders and the employees have to find out how a

positive outcome is bro ught about using a cause-and-

effect sce nario. Som e of the key areas to highlight are

the impac t on the brand's reputation, the imp act of the

delivery o n the employe es growth and future prospects

and how customer engagement is actually m ore of anart than science. If cultivated an d lived upto, this can

enhance the brand experience on an emotional level.

Ind ian consumerswhi le be ing brand

consc ious are a lsojudgementa l. If there

is a mismatch betweenwhat the brand

promises and what isbe ing de l ivered the

consumer is quick tochange loya l ty . It was traditionally believed that employee engagement

at the front end was more important fo r premium and


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-----------1 SECTION 2 MARKETING I CHAPTER 14 BRAND CONNECT

luxury products and services, but in a market like India experience

has shown that the customer has failed to discern this and has

demanded that the brand deliver more than what it has promised.

Hence while ATL, BTL and other formats of promotions are important,

what is imperative is to focus on ensuring that the front-end

employees are able to build up the emotional connect between the

brand and its customers (prospective, loyal and the targeted).

Building an emotiopal quotient in your customers for your brand

is not just an intense and intelligent activity but requires a

transformation in their thinking using an interaction which can last

T h e k e y t o th e s u c ce s s o f a n y b r a n d i s t he e x pe ri en c e

it gives ... A n y m is m a tc h p e rc e iv e d b y t he c u s t om e r

b e tw e e n w h a t t h e b r an d p r om i s es a n d w h a t it d e liv e rs

c a n r e s u lt i n v a r yi n g l e ve l s o f e m o t i o n f ro m l o y al ty t o

i n d if fe r e n ce t o c o n t e m p t.

from a few seconds to a few minutes. The person delivering the

experience has to build up this emotive connect whether a purchase

is made or not. In other words, this is not just an animated activity

but requires the fine balance between selling and servicing without

being intrusive, overwhelming and rude. Creating an emotional

connect in the mind of the customer without prioritising on a sale

may look challenging but in the long run is more important for the

brand than trying to convert a footfall (regular or otherwise) into

necessarily a sale.

While front-end employees or employees at the consumer touch points

can't be held responsible for bringing in customers in a direct

manner, they are responsible for building brand equity and loyalty,

increasing sales beyond projections, increase in customer base by

word of mouth, creating coherence between brand promises and

delivery and personifying the brand.

Before getting into each one of the above the key is to understand

that a brand is the aggregate of its customer experiences with the

relevant product or service. This experience has to be innovatively

and inventively translated into a positive one for a customer to

build loyalty, which in today's date and time is a challenge even

internationally let alone a lucrative market like India.

Nurturing brand equity and loyalty: One of the first activitiesthat needs to be done, whether in an own store or a franchisee,

before a store is made operational, is to ensure that the front-end

employees understand the brand DNA and what distinguishes

it from the other brands and retailers including its presence in

an exclusive brand outlet vis-a-vis a shop-in-shop or a multi

brand outlet. They have to be groomed to understand their role

and importance in building the brand's credibility and how it

amplifies the brand's equity and results in emotively engaging

the customer inducing loyalty. When a brand eyes expansion in a

diverse market such as India with a large number of languages,

it is important to ensure that the front-end employees learn to

resonate this without diluting the attributes of the brand.

Increasing sales beyond projections: Add-on sales has always

been a challenge as with increased competition brands have

resorted to lowering prices and getting into the sales season

earlier than before. This has lowered the average ticket sizes

across seasons and therefore in both the normal as well as


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EOSS period there is a need for the employees at the customer

touch points or retail outlets to ensure that customers are

influenced to make additional sales beyond what they've decided

to buy (planned or impulse). Conventionally, while sales staff

have been influenced to be motivated by sales incentives, the

better approach would be to

inculcate brand ownership

in them of which incentive

is an outcome rather than

a driver. This distinction

ensures that competent

employees are not weaned

away by a com petitor who

may offer a better incentive.

vent their feelings in a matter of moments on Facebook, Twitter

or blogs (besides c onventional media) deciding the fate o f brands

or their product(s) and services(s) in a matter of seconds or

minutes. When a brand or a retailer has nurtured its employees

at the touch points to interactively engage with the customer so

that the customer is not experiencing

a transaction or a process but an

emotional engagement then they would

like to talk about i t to others. This

could range from new and innovative

practices to thoughtful gestures or even

the manner in which their complaints

are addressed or even if they are given

a feeling that the employee is going

out of the way or beyond the brand's

parameters to make them or keep them happy. The word of

mouth formula also works in enhancing employee retention and

attracti ng the right ta lent.

Del ivering the exper ience is to bui ld u p this emotiveconnec t whe ther a purchase is made or not .. . i n t h e

long run [ i t ] is more important for the brand thantry ing to conver t a footfa l l ( regular or otherwise) into

necessarily a sale ...

Increase in customer base by word of mouth: The sustenance

and growth of brands over a longer period is influenced more

by word of mouth than any other factor. The adage that a happy

customer will tell a hundred others and an unhappy one will

tell a thousand others stands true in how influential the word of

mouth can be in widening the customer base. With the advent

of powerful social media, disgruntled or happy customers can

Creating coherence between brand promises and delivery: Brands and

retailers use a variety of mediums to make promises and each medium

has a certain way of conveying emotions. An illustration would be that


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----------1 S E CT IO N 2 MARKETING I CHAPTER 14 BRAND CONNECT ~

[ M ak e ] i nc e nt iv e a n o ut co m e r at he r t h a n a d riv e r.

Th is d ist in c tio n e n s u re s th a t c o m p e te n t e m p lo ye e s

a re n ot w e an ed a w ay b y a c om p e tito r w h o m a y

of fe r a be t te r incentive .

print medium is not an appropriate format to exemplify emotions that

are conveyed by voice and where there are multiple facial and bodygestures to be read by the audience a radio advertisement would

be the least preferred. These mediums build up anticipation and

expectation and like all products and services whether it is FMCG,

durables, electronics, apparel, food, beauty and cosmetics or hard

goods, the validation of the promise commences at the point of sale.

Creating the coherence is one of the most challenging aspects as most

often brands assume that the power of the media and the product or

services strengths are enough to ensure sales and profitability without

using the people at the touch point to create the coherence. There are

several scenarios arising out of this which if it is not addressed can

result in brand disillusionment. The push culture that most brands

have employed hav e often resulted in brand deficits and while it takes

time, brands that hav e used their front-end or touchpoint resources

sagaciously in creating the coherence between promise and delivery

have seen significant growth in their brand equity.

Personifying the brand: Brands have a personality and brand

custodians need to explain this to the every employee, partner

and vendor that plays a role in their brand's existence, growth

and success. The brand custodians have to outline a detailed

and descriptive brief on their brand and the expectations of

both the brand and the customer and how the role of those at

the touchpoints or the front end, as an interface, is principal to

the success of the business. One of the key areas that brand

custodians need to focus on, largely because of the diverse (and

inconsistent) pool of talent, increased emphasis by brands on

franchising and high attrition, is instilling a culture of training at

regular frequencies in these resources to personify the brand

attributes and ensure consistency in brand delivery.

The culture of engagement has to be nurtured by the brand

custodians. Those who own or run the consumer touch points or

retail points should do so in a methodical, prudent and creative way

as customers have not only become discerning but demanding,

intolerant and expressive. It requires a careful study of the prevalent

culture, a diagnosis and training to ensure consistency across

the brand's touch points. While it is important to understand the

competitor's practices, the drivers of your brand could be different

and the distinct positioning needs to be outlined uniquely. It requires

engaging with excited, content, disgruntled and indifferent customers

and also with those who have the potential to become customers if

not immediately then in the near future. Living the brand ensures that

there is ownership and that the resources are able to deliver on the

brand's DNA, its promises, and guaranteeing satisfied customers.

Brand building is a complex activity, and unless the consumer

touch point resources learn to engage the customer innovatively and

liv e the brand, the brand will find that expending resources on ATl,

BTl, digital and other promotional activities can be more wasteful

and counterproductive than what they had envisaged as an outcome

of their initiatives. On the other hand if the culture of engagement is

nurtured assiduously then these brand ambassadors can be gradually

transformed into brand assets that can be continuously capitalised

and creatively utilised .

About the Authors

Joseph Sam is the managing director at Vedact Advisors P Limited, India. He is

also an advisor (corporate relations) at Pearl Academy of Fashion.

Priya Mary Mathew is a management graduate and currently associated

with Pearl Academy of Fashion, Delhi as associate professor (Business and

Technology Department). She teaches subjects such as Marketing, Research,

Consumer Behaviour etc.

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