If I ask you to name a brand of each of the following categories – Soft Drink, Wrist watch, Detergent powder and Motor Bike. Answer this before you read ahead. Now check whether anyone of it matches given hereunder.
Thums up, HMT, Nirma, Honda – These are not preferences of Consumers. They just indicate the probability level of brand consciousness in the respective product category. With global brands around in most product categories, there is an interesting ‘battle of brands’ in the marketing area. Battle of not just brands but a battle based on how effectively they have ‘penetrated’ into the psyche of consumers.
The Indian scenario provides challenges of all kinds to brand managers who have to conceptually figure out how they ‘can place and sustain’ their brands in the minds of consumers. It is simply not warfare between mega-brands. For established brands, it is a question of enhancing their equity. For others it is a matter of building up the brand image and these will have to be done in a country which is replete with regional, social, cultural and linguistic variations where the governing marketing parameters for a given product/market situation cannot always be predicted.
As you must have studied in the Consumer buying behavior (with regard to any product or service, especially in consumer products) the consumer is influenced by the ‘brand-pull’. This may be because of several reasons and could vary across product categories (from footwear to pagers) but certain generalization could be drawn for the kind of behavior. They may be –
- Historical presence of the product category
- Type of product category
- ‘Social signaling’ value associated with the product
- Efforts put in by specific brands to build equity
- Past experience with a brand
Each of the above factors is not mutually exclusive from this viewpoint of the ‘brand-pull’. There are traditional product categories like toothpastes, footwear, audio products, balms, cigarettes and scooters, which have been in the Indian market (as compared to products like pagers, personal computers, shampoo in a sachet, electric shavers and credit cards).
Now just think of 5 very old brands in any of the segment like FMCG or Electronics? There have been brands which have carefully built up their brand equity for a number of years – Colgate, Bata, Vicks, Philips, Bajaj and these brands are likely to enjoy a higher consciousness in the consumer’s mind in the respective product categories. This has a ‘rub-off’ effect on their relatively recent brand extensions.
There may be a number of brands, which have not built up their equity despite of their long presence in the market. These brands have gone out of the ‘mind-set’ of consumers. Again think of 5 such old brands that exist since last 20-30 years but have not been able to create impression in consumers mind????
Following can be the various aspects of nature of relationship of brand with customers
Product Category
In a new product or service categories, which could be associated with liberalization, global brands may create a higher level of brand consciousness among consumers. This may be because of ‘perceived premium’ associated traditionally with foreign brand names. Examples could be Motorola in cellular phones, McDonald’s in food chains and Citibank in credit cards or you can name many more in the list.
Social Value
In product categories which are relatively old like ready-made garments (this category has been in existence for a long time but has exploded in the recent years), an audio products and household appliances, global brand names may make a greater impact on the customers. In this context, the social signaling value of products (the visibility a product ahs in the eye of the other customers- consumer durables are placed generally in the room where visitors are received at homes and cars which are bought for personal use have more of signaling value than the geyser, water purifier or contact lens) provides the symbolic association which consumers look for in attempting to give a spur to their ego. Even in the case of non-durables (like cigarettes and pens), consumers look for brands which reflect their lifestyles to the society in general (examples could be 555 cigarettes, Parker pens, Arrow shirts and Pepsi. Brand building is extremely important in product categories where the signaling value is high. These are products, which are in the premiums/ super –premium category and hence the personality of these brands makes a significant impact on the brand consciousness of the respective segment of customers.
A good example of the application of mega-marketing (advocated by Philip Kotler) in the Indian context is the case of Japanese brands. Mega-marketing helps a brand to overcome marketing barriers when they attempt to enter international markets. Sony. Sharp, Akai and National brands started advertising in India and built their brands even before the liberalization process was formulated .As a result they enjoy a better level of consciousness than brands like Goldstar, Samsung and Electrolux which are also international brands. Apart from the quality, brand building ensures the emotional linkage and this plays an important part in consumer decision- making.
India, with its markets fragmented in most product categories, has offered enough scope for brand building in the respective segments if marketers have had the inclination to build brands. Vicks very carefully built up it brand from the fifties and carved a niche for itself as a cold remedy in a balm market where segmentation was totally absent. This enabled the brand extension over a period of time (to adults and headaches). Bajaj strongly built a ‘value for money’ image and this could be very stressful for the brand if it starts scanning the lower –end of its passenger car market which has been left untapped. (Marti was successful and now it is building up-market brands).
Philips has an interesting brand development history in India- it has been around for sixty-five years and in a closed economy (not much of specific brand personality was required). During recent times, its brand development has been in tune with its product development introduction of a spate of TV models for the up market and entering into household appliances and pagers, to reinforce the technological prowess that the brand has in global markets in the minds of consumers. This is a brand which is already on the ‘top of the mind’ consciousness level and its trying to create a position even at this level as there are a number of competitive brands which have an equally good equity.
In the non-durables category, brand consciousness has to be viewed differently. Colgate, Horlicks, Lifebuoy, Sunlight, Ponds, Lux, Farex are all global brands but they have been very much a part of the consumer psyche because of their time frame association.
Any brand cannot be successful without consumers support. Success of any brand depends on brand loyalty showed by consumers. Just think how many brands of Bath soap or toothpaste you have changed during last 5 years.
Concept of Involvement and Branding
In this era of brand personality, brand extensions and brand equity, marketers are attempting to raise the emotional level of consumers not only with regard to brands but also with regard to product categories which were till recently perceived as commodities. Imagery, positioning styles and a host of behavioral concepts are being attempted. The conflux of branded products in the market overwhelms the consumers and makes the buying choice difficult. Each brand is trying to outdo the other by attempting to create different images for itself.
- Yesterday’s consumer went to the shop and asked for a new tyre for replacement purposes. Today, the same consumer is faced with a ‘long playing radicals, anti – skids and wider ones as choices, thanks to the elevated levels of association with the product category of tyres.
- The routine change of oil as Lubricants for two and four- wheelers has become an area of consumer’s decision – making with consumers asking for specific brands.
- Bathrooms have become glamour rooms; pepper and salts are ‘Catching up with customers; ‘Thirty plus’ citizens are becoming fitness conscious.