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?