These factors have also strongly influenced the thinking, frameworks and processes which brands now have to be built on in India. Gone are the times when a brand could have comfortably relied on a powerful retail presence, endorsement from few celebrity endorsers and competitive price points to make sure its success. Many of those factors are either now hygiene and in many instances redundant. Brand building in India now requires new perspectives, refreshed thinking, holistic approaches and deep understanding of the factors that influence consumer needs. Key changes in India’s business landscape It is important to look at the key factors that have fundamentally changed brand building in India. Although there's still scope for improvement, marketers have taken confident steps towards embracing branding as a discipline (and not a haphazardly put together amalgamation of a logo, some colors and a few advertising). Driven initially by global best practices of multinationals, homegrown brands are now slowly embracing the ability of branding. Patanjali Ayurved, the Indian FMCG founded by spiritual guru Baba Ramdev, had a turnover of quite USD 1 billion in FY 2015-2016 and was getting to overtake multinational giants like Procter & Gamble, Colgate-Palmolive and Nestle in revenues. The success of Patanjali Ayurved showcases the facility of building brands using the influence of an enigmatic founder, who successively has brilliant commercial sense and a deep understanding of the Indian consumer psyche. It also showcases non-traditional and alternative strategies for brand building in India. Here are a number of the foremost significant changes in India’s business landscape: Emergence of storytelling as a holistic brand-building tool: Even the legacy brand building strategy of using ambassadors from glitzy Bollywood and also the hugely popular world of cricket has versed a phase of change. Indian cricketers and Bollywood stars still be ambassadors for a plethora of brands, but there's a powerful emphasis on building brands through storytelling. Storytelling now covers a number of the foremost pressing problems with the Indian cultural and social fabric – empowerment of girls, household roles and responsibilities, child education, community support, sustainability, bridging the gap between the poor and therefore the rich, and therefore the bonds characterizing Indian families. Brands like Surf (from Unilever) are now exporting strategies employed in India to grow and develop the brands in other markets. Startups and disruptive business models: Another trend that has disrupted traditional brand building mindsets is that the rapid emergence of startups in every conceivable industry segment. those that have seen the foremost disruption are retail, transportation, payments and also the on-demand economy. In terms of brand name building, Indian startups are now in an exceedingly state which homegrown Indian brands were in five years ago. Majority of Indian startups don't have a robust brand, a transparent positioning, a powerful differentiated offer, nor medium-term or long-term ambitions of building brands. But because of their alternative business models (which seek to reinforce the convenience consider everyday life), they need been able to disrupt existing businesses. Price as a defining factor of brand name choice: for several Indian startups, price-driven marketing continues to be the first pivot for the organization. thanks to the worth conscious nature of the Indian society (and especially the burgeoning middle class), having an efficient pricing strategy which will appeal to a large range of income groups can go an extended way in driving market share. view as example, the e-commerce battle that's being played out between Amazon India, Snapdeal and Flipkart. it's a classic case of price and delivery (aka convenience) driven strategies influencing market share, revenues and profitability. Amazon carries with it its global brand equity, while Snapdeal and Flipkart still compete on price (with some attempts made to refresh logos and branding colors). Erosion of traditional brand-building models: Brand building in India also requires a deep understanding of the role of technology, channels and platforms. The mobile ownership boom has rewritten the principles of name building in India. Secondly, physical retail and e-commerce have locked horns during a fiercely competitive space. Platform business models are yet to require off within the country, but there are opportunities to be tapped into. The yesteryears brand building model of using distribution strength, some emotional claims, smart use of celebrities and attractive prices is slowly becoming redundant. E-commerce has made physical distribution strength a hygiene factor and not a source of competitive advantage. Proliferation of brands has made effective positioning challenging. The Indian consumer still wants his or her heartstrings to be pulled by a star but has increasingly started using knowledge as a choice driver. Pricing has become a more thorny issue, with rising income levels encouraging brands to become more premium, but risk losing vast segments of the population as potential target groups. Challenges that brands face in India In terms of external factors, successive governments have invested in efforts in pushing India up the worth chain. The success of initiatives like “Make in India” is yet to be fully realized, and its ability to create Indian brands competitive at a worldwide level is circumspect. Investing in and building strong brands continues to be a sporadic activity, with a spectrum that ranges from “world class” to “barely existent”. But there has been strong progress in terms of consciousness towards brand building as a strategic asset and therefore the evaluation of a robust brand’s impact on an organization’s bottom line. The primary challenge for brand builders in India (both multinational and home-grown) is that the indisputable fact that “copy and paste” brand building strategies are doomed for failure. Even a large like Unilever, with proven ability for building global brands, has admitted that they have to extend the “localization” element in their brand building strategies. This realization is slowly spreading across the company world and India isn't any exception to the current. during a rich and diverse country like India, brand building requires extra sensitivity to regional tastes and preferences. Nestle India understood and revered these sets of needs when it launched Nescafe Sunrise Premium to cater to the strong preference for filter coffee in Southern Indian states. The success that global cosmetics and sweetness products giant L’Oréal has achieved in India, is strongly driven by its localization strategy and a deep long-term commitment by the management to the Indian market. Just like in the other nation, the Indian consumer grows up with a powerful affinity towards a collection of brands. the massive change is that 10-15 years ago, an Indian consumer would have grown up with an affinity towards homegrown brands, while in current times he or she grows up with a powerful affinity for global brands. Brands like Godrej (white goods, appliances), Britannia (food products), Haldiram’s (snack foods), Maruti (automobiles), Parle (food and beverages), Bisleri (mineral water), Thums Up (soft drinks), Nirma (detergents), Amul (dairy products), Bajaj (automobiles), Nalli (traditional Indian women wear) and Tanishq (time wear, jewelry) are samples of homegrown brands with strong legacy, longevity, adaptability and long-term vision. These brands still enjoy strong appeal, preference and loyalty levels in spite of the onslaught from global brands, rising levels of consumer knowledge, higher levels of exposure to foreign markets and rapidly shifting needs and preferences. Principles for brand building success in India There is nothing mystical about building a powerful brand in India. The place to begin is around understanding the importance of “emotion” and “belonging” during a collectivist society like India’s. The Indian society, even with all the influence from global cultures, still places a powerful emphasis on one’s roots, the importance of family and religious/ cultural/ communal bonds. Whether it's a startup, a homegrown brand looking to determine itself or a world brand entering the Indian market, there's a standard set of principles for brand building success: Build on trust: The importance of building trust is commonly an underrated element of brand name building. Compared to anywhere else, trust is prime for building strong brands in India. The Indian consumer isn't pleased very easily, but once pleased, tends to display strong loyalty and affinity levels. The case of Maggi’s resurgence after Nestle India was cleared of any misconduct may be a case in point. a mean Indian grows up with Maggi as an omnipresent snack item within the household. It didn’t take long for Maggi to travel back to category leadership status after being absent from supermarket, grocery and kirana store shelves for quite a year. Another case in point is Tata – with all its top management doldrums and legal wrangles, the Tata name still enjoys strong appeal. Trust may be a multidimensional element from the purpose of view of promoting and branding in India. Not only does a brand must elicit trust from the tip consumer, but also equally from the consumer’s “recommendation machine”. Word-of-mouth is incredibly important as a driver for brands in India. This machine consists of members of the family, friends, relatives, the local kirana storeowner, online reviews, testimonials from older members of the family etc. Gain deep understanding of cultural and communal values, beliefs and traditions: The Indian consumer has been able to maintain a balance between having aspirations to use world class brands and displaying unflinching loyalty towards brands that have provided consistent, enjoyable and fulfilling experiences. Food, which could be a favourite pastime and topic of conversation, may be a category where this balance is exemplified quite nicely. Majority of Indians who sleep in the key cities and towns have experienced global food brands (both in terms of restaurants and also branded food products), but this has not led to the decline of any homegrown Indian food brand. The continued success of Britannia, Haldiram’s, MDH Foods, Parle and Sunfeast validates the actual fact that brands that are built on platforms of diversity will have sustaining power. The success of Unilever’s Bru and Nestlé’s Nescafe Sunrise Premium also are great samples of brands built on regional tastes and preferences. Analysis of growth across multiple categories indicate that regional brands have began to challenge national brands on market share and revenues. Flamboyance has its place, but not for everything: With all the speak about the Indian consumer’s must exhibit flamboyance and flaunt status and wealth, the “Big Fat Indian Wedding” and therefore the glitz and glamour related to Bollywood, brand choice decisions are unsurprisingly driven by needs that are highly emotional. Brand equity in India has an emotional bias, with functional attributes working as hygiene or superficial factors. Building a robust brand in India requires a relentless endeavor to drag emotional chords through genuineness of purpose, values and promises. In addition to normal day-to-day life, customs, traditions, festivals and key life events provide additional opportunities for brands to have interaction with consumers. These occasions are highly emotional in nature and makes have to display sensitivity to stay relevant and appealing. A general scan of Indian advertising reveals significant emphasis on different situations and moments of life, their impact on an individual’s perceptions, family situations, relationships between parents and their offspring, empowerment themes, realizing one’s ambitions in life, struggles and therefore the ability to deal with them and celebrations of moments of joy. the only line of thread running through such a good style of themes is that of “emotion”. this can be why an emotional connect could be a pivotal element of any brand building strategy in India. Clear articulation of the worth perception: India could be a land of diversity, but also disparity. Income levels vary widely, with a majority of the country’s population still living beyond the personal income. But the positive side of the story is that the burgeoning middle and lower class with rising income levels. This ascent in consumer spending prowess (and the associated increase in consumer base) is that the primary factor attracting global brands to the Indian growth engine. But it comes with its own unique set of challenges. one among the key challenges is to grasp the worth perceptions of the Indian consumer. Brand proliferation and fragmentation has exposed the Indian consumer to a bewildering array of choices (that are available in all shapes and sizes). These choices are available different varieties, pack sizes and formats with associated price points. To strengthen brand equity through emotional bonds, brands must have a transparent articulation of their value proposition. It must transcend “being cheaper”, “being at par” or “being expensive”. Consumers, driven by aspirations, are receptive trading up but not at the expense of being fooled. Successful Indian brands have clear value propositions. Britannia’s slogan “eat healthy, revitalize your body and mind” positions it as a company with a wholesome range. Challenged by Patanjali Ayurved, Dabur India (the pioneers of Ayurvedic products in India) has gone back to its roots with a change in slogan from “Celebrate life” to “Science based Ayurveda”. On the same vein, MTR Foods, a national player with near 100 years of history within the pre-packaged vegetarian meals segment, includes a simple but powerful value proposition of “tasty and convenience driven meal solutions”. Innovation isn't only about product launches: Innovation includes a strong role to play during a market like India, characterized by a fancy maze of tastes and preferences which shift joined travel across state borders. Nonetheless, brands should use innovation as a tool to spot growth opportunities or tap into unmet needs. Branded cafe chains don't seem to be a replacement concept in India, with brands like Barista and Café Coffee Day existing for an extended time. The success of Starbucks within the country is characterized (no doubt by the Starbucks brand pull) by a robust specialize in a premium customer experience. Innovation doesn't have to be just new product launches – communication and delivery of the brand experience is an often forgotten area for innovation. To be a national player in India, brands need to constantly manage the pressure of bloated portfolios to cater to regional preferences. Without adding to their portfolios, brands can innovate to deliver excellent customer service and superior brand experience, which are ripe for innovation. Conclusion: Brands must understand the Indian customer The old rules of name building in India have gradually become redundant within the face of a change of the Indian society driven by various micro and macro-level factors. One pillar that has not changed, and actually, has become more important, is that the have to have a deep view of consumer needs. In India, this must have a regional lens to be effective. The new Indian consumer is pushing and pulling at two ends of the spectrum – rising consciousness and knowledge about global brands and standards of excellence, combined with openness towards homegrown brands that have gotten their positioning and value articulation right. National Highway 44 runs from Srinagar within the extreme north of India and terminates in Kanyakumari within the extreme south. The highway passes through 11 states, each with its own vibrant set of customs, traditions, beliefs, tastes and preferences. If a brand considers this highway as a metaphor of a thread that runs through the country but changes color and evolves along the way, then the brand must embrace this thread to achieve success. Technology has significantly altered the way the Indian consumer lives his or her life and shops, but the key drivers of brand name equity still be rooted in deep emotional brands. Establishing these bonds became more complex and challenging. Building a robust brand in India requires a deep understanding of the factors that have directly or indirectly shaped purchase and consumption behavior in recent times, which are associated with how consumers think and feel about brands. There has been a conscious try to stamp a more individualistic viewpoint on brand choice and preferences, but the underlying connection to the family and also the broader society continues to be strong.

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