IMPACT Annv Spl: MG Parameswaran on brand development

The latest Census tells us something we have been suspecting for long. The population growth of the country is slowing down, clearly indicating that Indian families want to be prosperous, and if that means lesser kids, so be it. With the economic growth set to be close to 9 per cent for the next decade, we can expect all sectors to grow, and several segments of the market to grow even more rapidly. As the earning capacity of the upper and middle classes increases, their income surpluses will grow and with it the appetite for new products and services. If the last seven years were the years of the mobile phone, the next seven years could be the years of the digital Indian or the globe-trotting Indian, or the car [Nano]-owning Indian.

What would this mean to the brand that is in the mass market? And for those appealing to niche segments?

As a new class of Indians are going to enter the market, the young Indian who has grown up during the liberalisation era, the woman who now wants to do more, and a family that is becoming more and more nuclear. These new Indians will be more urban, more literate and progressively more digital, throwing up new challenges for marketing. Add to that increased competition, knowledgeable consumers and widening media choices, our jobs just got a lot more difficult, challenging and therefore even more exciting.

So what are the seven key aspects of brand development?

The first mantra is innovation. Brands have to constantly innovate. These could be significant innovations involving new technologies, or could be smaller marketing innovations involving packaging and pricing strategies. But innovate, you have to. Just a clever new ad campaign may not do the trick.

Secondly, to address the Indian market better, you need to learn to segment. India may be one country, but it is not one market; brands need to understand how to segment this market: by geography, by town class, by language, by SEC, by shopping habits, by retail formats, by usage occasions, etc. Through better focus on segments, brands can become stronger and build their franchise, cost-effectively.

Thirdly, brands need to connect better with consumers. This does not necessarily mean that you need a Facebook account and a Twitter feed. But the consumer out there is changing rapidly, brands need to be out there talking to consumers and having their hands on the pulse of the consumer. Given the growth of various segments and market dynamics, this is a lot tougher that we can imagine.

Fourthly, brands need to be refreshed at regular intervals. With the influx of new brands, new extensions and new variants, the frequency of brand refresh needs serious review. Many FMCG brands have operated on a once-in-three year refresh model. That may not be valid anymore.

Fifth, brands need to go beyond mass media, television and print. The digital medium is opening up in India, especially with the flood of cheaper web-enabled mobile devices, surfing habits will change dramatically. The primary use of Internet will change from email to information search and recommendation systems. Brands have to find out ways of reaching out to consumers when they are on active search mode. Further, brands need to see how to meet customers in the new melas of India, the shopping malls.

Sixth, brands have to keep in mind the value paradigm that operates in India. Even a Mercedes Benz customer picks a diesel version. The richest of rich homes still buy pouch milk and sell the waste paper for money. Brands will have to understand how different segments react to pricing, in different situations. The pricing paradigm may not be the same in all markets, but Indian consumers will not abandon the value focus any time soon.

Seventh, successful brands cannot forget what made them successful. There is a need to keep the Brand DNA in mind as the above six steps are undertaken. Consumers come to brands because they offer a sense of familiarity, a badge of trust and a guarantee of delivery. Those cannot be abandoned at the altar of change.

As Prof Kevin Lane Keller observes, “Brands take on unique, personal meanings to consumers that facilitate their day-to-day activities and enrich their lives. As consumers’ lives become more complicated, rushed and time-starved, the ability of a brand to simplify decision-making and reduce risk is invaluable”.

(MG Parameswaran is Executive & Chief Executive Officer at Draftfcb Ulka, Mumbai.)