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Functional Area: Marketing

SAMIT KHANNA SECOND YEAR, FMS DELHI samit-khanna@fms.edu +91 9891 664 003

PUNEET SHARMA SECOND YEAR, FMS DELHI puneet-sharma@fms.edu +91 98719 59659

These commonalities led us to model the consumer behavior model that is the ultimate reason for the existence of any brand. Kevin Keller captures the essence of branding when he says “A brand resides in the minds of consumers”. we start by discussing what a brand is from the perspectives of the organization as well as the consumer. . Next we build a model for consumer decision making process and bring in the perspective of the Indian brands vis-àvis multinational brands. evolution and revitalization that ultimately decides the winners in marketplace. help us arrive at the model. In this paper." – Consumer Insight There is a general agreement that source of prowess of successful companies is the presence of big brands in their portfolio. We conclude the paper by discussing a framework which could help build the Indian brand both domestically and globally. On a careful inspection successful brands show a lot of common threads. This gives us the foundation for building the models subsequently. It’s not just the initial creation of a brand but the reinforcements. Every company wants to create & own the ageless brands & does spend a lot of money towards this objective. We have also conducted a primary survey to analyze the quality perception and understand the consumer behavior and hence. Yet. A brand should move beyond its physical character to acquire a perceptual character hence representing itself as a means to achieve what is sought by a customer. global brands show what we want to be. many top executives are not very comfortable with following a structured approach to branding.Executive Summary "Local brands show what we are. Our research on the past successful and unsuccessful brands says otherwise. We touch upon the importance of various parameters in building the Indian brands and stress upon them with relevant examples.

we have tried to understand why Indian consumers have the perception of global brands as being better in quality and the factors that are determining factors for successful establishment of any product as brand. but the statistic shows that a brand is much more than a mere name or a logo. But most importantly. A Brand to some may be a simple name. reputation or identification. one of the key challenges they face is building global brands. Examples considered for this analysis are mainly from India. They bring together consumers and marketers closer and bind them together. brands are conduits. the company would be able to start up the next day due to the value of its most important asset — the Coca Cola brand. If Coca Cola’s facilities all over the world were to burn overnight. In this paper.Introduction “A Brand exists in perceptual space and is a perceptual entity”. As Indian companies seek to be major players in global markets. competing on cost alone may not be sustainable. Building brands is important — as wages rise with economic development. guarantee. It’s hard to imagine that an intangible can have such value. So what is a brand all about that all the companies spend so much on creating? In today’s scenario brands are the basis of consumer relationship. which in 2005. logo or symbol whereas to others it may be a promise. While brands may not necessarily translate into premium prices.5 billion. was estimated to be worth $67. with all their physical assets going up in smoke. . they help companies gain higher market share in a crowded market place as they convey an assurance of quality and reliability.

When Mahindra & Mahindra went for a blitzkrieg for Scorpio it was to create a minimum level of awareness. The products that fail to maintain the awareness go into pavilion. all strong brands are differentiated and command a lot of awareness in mind space of consumers. Of course. Strong brands have a distinct place for themselves in the minds of the consumers. still the attribute that actually results in increased sales hence generating billions of dollars is the powerful appeal these brands generate. Create awareness Blitz Differentiation Generate Appeal Study Consumer Behavior Perspective High Involvement Low Involvement Experiential Extensive information Establish superiority Appeal to Reason Focus on one attribute Concentrate on problem solution Short & frequent visual messages Appeal to toned down reason Communicate feelings High Visual Content Appeal to Emotions Global Brands Bastion Global Brands Bastion Indian Brands Bastion Figure 1: Model for Marketer .Consumer Buying Behavior Marketers first have to create and then maintain a minimum level of awareness about the brand.Consumer Buying Behaviour: The Model “The product can be copied. . but a brand in its totality can not be”.

Revive. As we move up the value chain to the high involvement and experiential products. High visual content is consistent with passive nature of consumer. In such categories. Brand communication should attack the problem and establish brands as problem eliminators. Premier had a lot of awareness and differentiation with respect to Maruti or Ambassador. As emphasized earlier. the advertisements should arouse feelings in the consumer. are bought for their affective delivery or satisfaction. Ensuring this differentiation has become a major objective of communication. So focus on one or two attributes will fall with in their limited cognitive inclination. Also point to note here is that. . cards. Omega’s ‘sign of excellence’ ignites same appeal to emotions. etc.‘instant starch’. hence generating an appeal to his emotions.The prospects should be able to differentiate the product offering from the others in market. there is a dearth of Indian brands and the global brands are more prominent and have consumer acceptance. For high involvement products. as it lacked the appeal. a brand has to generate a powerful appeal to customers to be successful in market. hence facilitating the brand at point of purchase. Disprin. it is the Low Involvement products where Indian brands have been doing exceedingly well and being accepted by the consumers. Short and frequent messages increase the top of mind recall. Hyundai ran a series of advertisements that compared Santro’s features to those of competitors to establish its brand superiority. Some products like flowers.‘fast relief’ etc. but still it went out of market. marketers should provide extensive information to the user and establish their brand superiority over the rival brands. are some instances. Consumers in low involvement conditions tend to be problem solvers rather than satisfaction maximisers.

Gone are the days when a company could be assured of its success in its strong hold bastion. on society’s well-being. So. People like global brands because they usually offer more quality and better guarantees than other products.Global Vs Indian Brands “To remain domestically competitive. Global brands have a certain amount of aspirational value associated with them which makes them more desirable. Perhaps the biggest differentiator and inhibitor for the domestic or local brands in context is the perception of quality. it becomes more accessible to multinationals with their proven track record can displace any domestic brand. what is it that sets them apart from the Indian brands. Transnational companies therefore compete not only to offer the highest value products but also to deliver cultural myths with global appeal. Hence. both positive and negative. That perception often serves as a rationale for global brands to charge premiums. They expect them to address social problems linked to what they sell and how they conduct business. ! Symbolic Value: Owning and using a global brand has more symbolic value than that presented by an Indian brand. ! Social responsibility: People recognize global companies wield extraordinary influence. it is becoming increasingly important for the Indian brands to establish their superiority in India and globally. Today with the economy opening up. ! Perceived Quality: Consumers watch the fierce battles transnational companies wage over quality and are impressed by the victors. a brand has to be globally competitive”. Let’s discuss this in greater detail to come up with a solution to the problem. . ! Global Citizen: Consumers look to global brands as symbols of cultural ideals. They use brands to create an imagined global identity that they share with like-minded people. The following factors are considered as important and ratified by the primary survey (refer to annexure): ! Customer Focus: The Indian companies rank poorly on this aspect. Global players have a perception of better focused strategy towards the consumers and work towards satisfying the consumers rather than just selling the products.

So what creates a favorable perceived quality for these brands: ! ! ! ! ! Global success Functional Expertise Financial Might Strength in research Flexible The advantages rendered by a favorable perceived quality can be seen in the diagram below: Perceived Quality Reason to Buy Channel Member Interest Differentiation/ Positioning Price Premium . It is a perception created overtime by the customers and hence cannot be objectively determined. relative to alternatives. Global brands score higher than the Indian brands in perceived quality.PERCEIVED QUALITY Perceived quality is defined as the customer’s perception of the overall quality or superiority of a product or service with respect to its intended purpose.

Warrior and Wealth”. the company and brand may actually need to dissociate themselves from the country of origin. Sometimes good brand . The gradual integration of the Indian economy with the global economy marks the dawn of competition which is favorable for the customers. We suggest the following strategies for Indian Brands to fight it out with the Global brands: 1. 2. Have a Vision for the Brand and Develop the Brand Essence Build a Brand Arrow for your brand and understand what the value for your brand is. In other cases. This further enables to an understanding towards the subsequent brand extension and creating a stretch map for the brand. a brand name and a communication strategy that emphasize this origin are helpful. The brand arrow is as shown below: An understanding of the brand arrow enables a more focused strategy for the brand.Strategies for Indian Brands: The Way Ahead “Competitive Marketing is all about 3 W’s – War. Choosing the Right Brand Name In cases where the country of origin is closely associated with the product being sold.

"100 Pipers" conjures up naturally pictures of Scotland to a normal consumer and it adds to the mystique and strength of the brand. The name was a great starting point for a brand with an attitude. intrusive marketing' that highlights its history.road brand appealing to diverse audience with little fashion connotations. it captured the imagination of a younger audience. through 'gutsy. it was just middle-of-the. 'Ambo'. "Taaza" tea is a case in point -. When the brand was re-launched in 1997. non-conventional. has the potential to quickly expand its export sales by a conservatively estimated 1. The drama of the re-launch started with the name -. Not surprisingly. Create a different category Scan Competition Be opposite of leader Create a Brand Personality Create a Brand Identity Unique & Relevant Figure 4: Model for Blue Ocean Strategy Indian mangoes can also fly India's flag high in international market. Creating Blue Oceans rather than fighting in Red Oceans The Indian brands should focus on creating uncontested space rather than trying to enter the already cluttered market. which are the qualities that connect with today's young drinkers. a value consumers seek from tea. And a good name can give a brand a "head start" rather than just a "start".it instantly communicates "freshness". . 3.names can add intrinsic value to the product being promoted and make the task of the other elements easier. India's dark colored Old Monk rum should take on the mighty white colored liquor.someone very cleverly recombined the initials of the company to come up with an interesting name. Bacardi. as has been the rule in the past. "French Connection" in the UK is a great example. toughness. With its huge textile exports India can become the 'fashion apparel centre of the world' within a decade. the Alphonso mango brand of an Indian farmers' cooperative. color and irreverence of a challenger. FCUK.000 per cent.

brand manager can set his eyes on deciding the pricing strategy. Palio had strong functional and symbolic benefit package but the image of parent company Fiat played major spoilsport in the brand’s downfall. . it is fresh. Functional Value Symbolic Value User Image Company Image Perceived Value of the benefit package Govt Regulations Market Factors Pricing Strategies Figure 5: Pricing Model & Strategy The first step towards deciding pricing is to measure the perceived functional and symbolic benefits of the product. Skimming or Penetration strategy can be decided upon. Maruti Swift scales high on functional benefits and symbolically. Pricing Strategy Well established brands ensure that the price they charge is not too high or too low. youthful & attractive. Once we measure the perceived value of the brand.4. User image plays an important role in determining the perceived value of a package. The market factors like the pricing of rival brands in market and government regulations on margins play their own part in determining the ultimate pricing strategy. Psychological. In fact base price should be based on the perception of the perceived value instead of delivered value. Mont Blanc may not be the best pen around technologically but the user image attached with the brand increases the premium that can be charged. Pepsi may score very high on every parameter but it can’t charge more than Coke does.

Brand Evolution and Revitalization Brand extension has found favors with modern marketing world because of the advantages it has over the other product launch options. . to forge relationships with customers.5. hence making them loyal to the brand. Product Oriented Process oriented Relationship oriented Experience = Perceived value Manager Customer touch points Get Retailers. Brand extension is not as simple as attaching an established brand name to a new product. Bonding with Customer Marketer must first understand the nature of his brand and opportunities it has. willingness and commitment of customers. Brands like Pizza Hut follow more of a process oriented strategy when they try to create a unique experience for the customer. The ultimate objective of building bonds with customers is to get the trust. 6. Sunflame follows relationship oriented strategy when it takes its dealers on a cruise ship trip. Be Socially Responsible Trust Willingness Commitment Affinity Figure 6: Model for Bonding with Customers In product oriented strategy. Ponds in eighties tried with Ponds Toothpaste. the delivered value should be greater than or equivalent to expected value as was done by Chetak which established itself as a major brand just on the basis of its product superiority. What determines the success of extension is character of brand which continues to evolve over time. only to disappear from the market.

bags and pens which are not related with one another functionally. It has successfully used this association to launch soap. shaving cream. jewellery. style. image & soul to the products that carry its name. there is close approximation between brand and product. the brand can lend character. The brand may begin to signify expertise in a particular field. . status and opulence. Dettol has a long time association as effective protection against germs.e.e. It successfully goes with a variety of products like watches. it implies that a set procedure is used to create the product.Evolution of Character of Brand with TIME Brand Evolution Know How Brand Formula Brand Product Brand AMUL MILK AMUL MILK Type I Type II Type III AMUL EXPERTISE IN MILK PROCESSING Milk Ghee Butter Condensed Milk Time Intangible Brand AMUL SYMBOL OF PERSONALITY Indianness Love Taste Fun Brand identifies the product Products are manifestations of brand Look for fit with brand character Figure 7: Model for Evolution of Brand Many brands start as product brands i. plaster and talc in market. Cartier has strong associations with prestige. Sustained efforts and investments in the brand endow it with intangibles that get accumulated Over the time product brand goes on to become the formula brand i. At this stage. MDH is a product brand for masalas. This expertise may lend itself to related products & brand may be extended to products related with its field of expertise.

With ever increasing customer awareness levels. We have to understand the credibility. The way forward for the Indian brands is to go global themselves. Successful branding needs a structured approach with due attention to what seem to be very minor details. . We have to measure its customer-connect. Understanding the differences of perceptions of customers is the key to unlocking the market potential. It becomes difficult for Indian brands to create a niche for themselves because of the abundance and proven credibility of the global brands. evolve it and consistently revitalize it to keep it relevant to the ever changing consumers.Conclusion “A brand is the most valuable asset that a company can own”. marketers can no longer afford to be complacent about their brands & branding strategies. Indian brands become competitive globally they can not sustain their domestic dominance because sooner or later they would be over taken by the global majors. The perception of quality that is associated with the global brands is difficult to unlock but it’s easier to create a blue ocean of opportunities for Indian brands. Branding needs a shift of tactics and thinking on the part of marketing executives. positive associations and additional valuation that customer attaches with the successful brands. Unless and until. Finally the task doesn’t stop with the one time creation of a successful brand.

Education: Literate/School (4 yr)/School (5-9 Yr)/SSC/HSC/Graduate/Post graduate/Postgraduate professional 7. Age: 3.Annexure We conducted a small primary survey to find out the perceptions of people regarding the global and Indian brands. Position of responsibility: 6. Phone:--------- . What are the qualities of good brand. Name: 2. Occupation: Student/Private service/Govt. Gurgaon Malls. Kamala Nagar Market Target Segment: o Males Age group 25-50 o Females Age group 25-40 o SEC Classification: A1 + A2 ! Methodology: In Depth Personal Interviews Consumer Qualitative Questionnaire 1. service/Business/Self-employed 4. Dwarka Main Market. Details: ! ! ! Sample Size: 58 Customer Contact Points: CP. Family chief occupation (If student): 5. The questionnaire as well as the findings are attached below. as perceived by you? Kindly mention some of them in the table below.

Maruti Baleno f. Hier 12. Others d. Hyundai Accent e. Rate the following needs on a scale of 1-10. Rexona (Refer the need list above for the respective numbers) Rank 1 Deodorant 10. Adidas. Which car would you prefer? a. Videocon e. Others Rank 2 Rank 3 . Price b. An Indian brand compared to global brand on the following parameters: a. Cannot Say 13. Tata Indigo b. Yes b. Indian or Global 9. Chevrolet Optra c. Honda City 11.8. LG f. Onida b. Name makes a difference in the choice of brands a. Status 5. Price 3. Quality 2. Which of the following Deodorants would you prefer and rank them in a order – Axe. Quality d. No c. 10 Most wanted 9 10 Least wanted Importance for you Most wanted 1. Service 4. Which consumer durable brand would you prefer? a. Samsung c. where 1 2 5 1 Least.

Status e.c. Service f. Availability d. Aspirational Value g. Variety/ Assortment As per the survey we could spot the following trends in the results: Indian Vs Global Brands 50 45 40 35 30 25 20 15 10 5 0 e Tr en dy Pr ice lity ce Av ai la bi Indian Global Perception of Brands 200 180 160 140 120 100 80 60 40 20 0 Quality Price Service Status Indian or Global As pi ra tio na lv al u Se rv i Q ua l Va rie ty ity St at us . Trendy h.

Prefernce for Consumer Durables Onida Samsung Hier Videocon LG Others Deodorant Preferance Axe Rexona Adidas Car Preferance Tata Indigo Chevrolet Optra Honda City Hyundai Accent Maruti Baleno Others .

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