Business Superbrands 1st Edition September 2005

The Superbrand Recipe

The Role of Superbrands in an Evolving Market
By the Business Superbrands Council

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.
 

“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.

 

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.

 

   
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.
 
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.
 
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.
         
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.
 
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.
 
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.
         
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.
 

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.
 
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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