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Business Superbrands
1st Edition September 2005
The
Superbrand Recipe
The
Role of Superbrands
in an Evolving Market
By the Business Superbrands Council
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Look
around and you will see people experimenting with
new brands of clothes, new brands of cars, new brands
of electronic goods, new brands of ready-to-eat foods,
in fact new brands of a hundred things.
Established Superbrands are like the powerful beacon
of a light house in a dark and stormy night. They
are icons who have weathered many gales and stood
the test
of
time. They are our fall back when we experiment with
and don’t like what we have
experienced.
Superbrands in an evolving economy are not quiet statues
standing on the sidelines watching the tumult in the
market. They are constantly re-energising themselves,
re-inventing themselves, re-engineering themselves,
recreating their persona. In fact, they became Superbrands
because they have done this all their lives. And to
successive generations have remained young and youthful.
Today is the time for marketers to be alive. |
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“In Life, growth and glory
provides a sense of achievement. Success is the
ability to create
something and develop it into something significant.”
Brand leadership is the single most important
contributor to a long-term competitive advantage.
Superbrands signify meaningful value, trust and
interaction with customers. They guarantee consideration.They
offer an emotional connection.
An interesting marketing metaphysics has occurred
over the last decade in evolving markets; brands
are undergoing the process of transformation from
a “transactional age” into a “relationship
era.”
Superbrands are role models providing meaning and
emotion. They help motivate and guide brand-building
effort in dynamic environments. Superbrands have
to live, learn and lead by raising the bar and
being simple.
In this era, Superbrands will have to become a
perfect symbol for experience and relationship.
They will require being symbols that will lead
and inspire.
In growing markets, Superbrands will have to gain
the customers’ commitment for life.
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I would say that endurance is the Superbrands'
most important characteristic. And by that yardstick,
Mahabharata and Ramayana are the biggest Indian
Superbrands. Although more than two thousand years
old, their stories have a universal, contemporary
quality.They have the ability to make us laugh
and cry, to inspire and even to goad us into action – all
the things that good brands do. They are, thus,
good models for today’s marketing persons.
India is the oldest story-telling culture in the
world, and one of the best ways you can create
a Superbrand is to tell a story, an enduring story
about your brand, and keep repeating it for generations.
This is what the best brands do. Each generation
reinterprets these brands in their own image. They
hold a mirror to our lives in India.They show how
we deceive ourselves at every turn; thinking we
are virtuous, they undeceive us.
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Think
of a hospitality brand called Intercontinental. Think
of a global tea brand called Lipton Yellow Label,
of a chocolate brand called KitKat, of an entertainment
brand called Columbia. Do most of us know which company
manages these brands?
To a philosopher, a brand is like the atma (Soul)
and the company its body.The brand is an intellectual
property; it lives for a long time. It is reincarnated
into different “bodies.” Managers should
know who they really toil for – not for their
company or shareholders which are both physical manifestations.
Great managers advance the atma of their
company, its technologies and processes which get
embedded
into unique customer offerings. Irrespective of ownership
and managements this atma lives on.Well-nurtured,
it grows and develops in different bodies.
This is the true power of branding.The greatest managers
strive to build the great atmas, the Superbrands,
day after day, year after year, consistently and
systematically. |
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Ever
since the liberalisation of the economy the Indian
marketplace has changed dramatically. Competition
is on the rise, more so with the advent of international
brands. It is becoming increasingly clear that
despite the dream, only a very few will be able to
create/sustain
Superbrands, simply because no formula exists.
However, it is indisputable that Superbrands will
most often
emanate only from well-managed companies. A Superbrand
is only the market face; what goes behind it – besides
the four Ps – are the latest technologies,
a motivated staff, prudent financial practices
and now, increasingly, a commitment to corporate
social
responsibility.
Over the years, the Indian marketplace has been witness
to the emergence of a variety of local brands. On the
other hand, while many international Superbrands have
just adopted their international practices, some have
displayed great adaptability in localising their offering.
But all Superbrands have one common thread: value-for-money
leading to customer satisfaction. |
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The
emerging markets pose a striking combination of challenges
and opportunities for Superbrands. For one, the emergence
of strong local players and the prevalence of fakes
and copyright violations pose a strong challenge
to the existence of Superbrands in these markets.
Superbrands can play the role of establishing the
Brand as a bulwark of trust and security for consumers.
Building super strong brands is a particularly significant
opportunity in evolving markets.
Lower brand fatigue, lesser regulations and the emergence
of consumer grievance redressal mechanisms create
an environment conducive for the Superbrands to thrive
in. In fact,
Superbrands play the important role of stimulating
market development and accelerating the growth of
the category in nascent markets.
If brands can take cognisance of the opportunities,
take measures to overcome the challenges, and build
a powerful Superbrand identity that is relevant and
compelling to consumers, there is no playfield more
rewarding to win in than an evolving market. |
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Evolving
market consumers are increasingly becoming more
powerful.They have better knowledge, greater curiosity,
are more
discriminating and exercise their right to choose
more intelligently than ever before. Brands that
are steadfastly patronised by a large and growing
group of such consumers, over time become Superbrands.
Often these brands become synonymous with the category
itself; classic examples of which are ‘Xerox’ for
photocopying and ‘Surf ’ for detergents.The
fierce brand loyalty of consumers towards Superbrands
creates a virtuous cycle in which companies get
consistent and growing demand for their product.The
Brand then
becomes the key for long-term survival and growth
of companies.
The power of brands to command significant premiums
is even more noticeable in evolving markets where there
are several lower-priced options available to consumers.
The multiples of tangible asset value that acquiring
companies pay for a target that owns a good brand bears
testimony to this. |
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It
is generally accepted that the basic strength of
a brand lies in its ability to develop a profitable
relationship with the customer. A Superbrand goes
beyond this paradigm. A Superbrand needs to transform
a profitable relationship into an endearing one.
A Superbrand needs to align the customer, employees,
partners, society and communities to the core value
of the brand. A Superbrand needs to fill people’s
lives with a certain emotive dimension that will
live through generations. A Superbrand does not
only exist to make profits, but often makes a difference
to economies, lives and humanity as a whole.
Finally, the future will belong to Superbrands who
are high on values like integrity....those who deliver
what they promise not just to their customers but to
all their stakeholders. |
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Evolving
markets require role models and Superbrands fulfil
that role.
Superbrands demonstrate that it’s possible
to be successful without compromising on ethics.
This
is important to gain the trust of your customers,
investors, employees and the society you operate
in and have a
strategic long-term relationship with each one of
them.
The softest pillow, Infosys has always believed, is
a clear conscience. This is a message, and a practice,
that the entire market needs to internalise and incorporate
into its corporate governance, so that its business
is built on solid ethical foundations.
Superbrands also demonstrate that it’s possible,
and profitable, to benchmark against the best in
the world and be globally competitive. They set the
example
for the rest of the market in speed, innovation and
excellence-in-execution.
Evolving markets need the confidence to set the bar
at a high level and avoid the trap of mediocrity. Superbrands
provide that confidence.
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One
world, one market and a bandwagon full of brands
on a shelf. Building a brand today is a complex affair
with commoditisation, ferocious competition and price
wars all the way. The job of a Superbrand tomorrow
therefore needs to be multi-faceted. With hundreds
of promises hammering the consumer's mind hundreds
of times a day, homogeneity only adds to the confusion.
For a Superbrand to stand tall in a crowded arena,
it needs to transcend its rational offering and transform
into an emotional experience. After all, it’s
the larger than life reflection of a company’s
core philosophy and values. A Superbrand should be
holistic and evolving. But more importantly, it should
stand as a symbol of trust. Values are the bedrock
on which companies will continue to grow and prosper
for
all times to come.Today, the Superbrand has the power
to unite people across the world.
To me, a Superbrand is raw Superpower.
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A
Superbrand can be decisive in differentiating products
and services from an even larger array of competitors.
A great brand is a promise, a pact with a customer
about quality, reliability, innovation and even community.
Brand development comprises three constituent end-benefits.
Brands can provide a springboard for new products,
contribute to stable, long-term demand and maximize
profitability. This translates into a strong corporate
constituency. By clearly and frequently articulating
those products and vendor qualities that differentiate
them from the competition and which stress customer-oriented
benefits, brands can enhance their perceived value,
quality and satisfaction of customer experiences. This
translates into a strong customer constituency. Finally,
brands also help to attract and motivate quality employees
and build the value of the company. This translates
into a strong co-worker constituency.
Given the current market scenario, only those corporates
that can build strong brand values will thrive over
the long-term. Compelling strategies – and time – can
turn brands into dynamic entities, called Superbrands.
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Superbrands
emanate mostly from superideas. In India the term
Superbrands may be new and novel, but not the concept.
The basic characteristic of a Superbrand will remain
intact, despite the changing needs and perceptions
of a Superbrand user. Clearly, Superbrands echo a
personality that is different, dynamic and discerning.
In today’s businesses, nurturing brands and,
therefore, Superbrands is a task that keeps many managers
busy. In fact, “managing” Superbrands
is recognised as one of the top management functions
of
successful businesses today. This is no easy task
given the fierce competition in an evolving market.
Brands may come and go but, like a marathon race,
only Superbrands can take on the ‘long hauls’ of
the market place.The Formula 1 is certainly fast, swift
and exciting, but it is the long and arduous rally
that gives birth to Superbrands. Only time will tell
how today’s Superbrands manage to remain the “Super-evergreens.”
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