1 Rajendra Srivastavac

Branding Indian CompaniesBranding Indian Companies

Raj SrivastavaEmory University

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The Wealth of BrandsThe Wealth of Brands

Fast movingconsumer

goods

Durable consumer

goods

Service Industrialgoods

53%

43%

18%

62%

Brand Value as % of Firm Value

Source: Sattler 2001

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Brand Brand TrustTrust

HYUNDAIHYUNDAI

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Brand Reputation and Performance:Brand Reputation and Performance:Business Competence & Country-of-Origin & Firm Values

High FirmHigh FirmCompetencyCompetencyPerceptionPerception

Low FirmLow FirmCompetencyCompetency

PerceptionPerception

Value AffinityValue Affinity

Questionable ValuesQuestionable Values

Bitter Spot Sour Spot

Sweet SpotWish Spot

Loyalty discountPrice discount

Price &Loyalty Premium

Source: Greg M. Thomas, Emory Brand Institute

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Brand Trust Brand Trust Competence and Competence and ValuesValues

0%0% 20%20% 40%40% 60%60%

12%12%

9%9%

18%18%

5%5%

10%10%

9%9%

12%12%

13%13%

20%20%

Good employee and laborGood employee and laborrelationsrelations

Fair pricing for products andFair pricing for products andservicesservices

Socially responsible activitiesSocially responsible activities

37%37%47%47%

33%33%

3%3%

3%3%

2%2%

2%2%

13%13%

2%2%

2%2%

6%6%

5%5%

14%14%

2%2%

2%2%

3%3%

5%5%

10%10%

A visible CEOA visible CEO

Dialogue with allDialogue with allstakeholdersstakeholders

A familiar or wellA familiar or well--knownknowncorporate brandcorporate brand

Strong financial performanceStrong financial performance

Attentiveness to customerAttentiveness to customerneedsneeds

Quality products and servicesQuality products and services

USUSASIAASIAEUEU

Which ONE of the following factors is most important to Which ONE of the following factors is most important to building your trust in a global company?building your trust in a global company?

7 Rajendra Srivastavac

21%

26%

28%

34%

37%

38%

0% 20% 40% 60% 80% 100%

Russia

Mexico

China

Brazil

France

India

Consumers Trust Companies from Developed Consumers Trust Companies from Developed Countries, Not Emerging EconomiesCountries, Not Emerging Economies

42%

44%

51%

55%

57%

64%

64%

65%

69%

70%

74%

76%

South Korea

Poland

Spain

Italy

Germany

Ireland

Japan

The Netherlands

The United States

Sweden

The United Kingdom

Canada

India # 3 Anholt-GMI Cultural Values Ranking

(behind Italy, UK, tied w/China)

Trust / Corporate ReputationTrust / Corporate Reputation

Marketplace Impact of Brands on Marketplace Impact of Brands on Financial PerformanceFinancial Performance

8 Rajendra Srivastavac

Low Equity Brand

Market Share

Pric

e

Strong brands improve share and margin premiums and help with incremental cash flow

Share Premiumat same price

Price Premiumat same share

High Equity Brand

Revenue Premium

Lower Costs of Distribution

Strong brands with market clout can be leveraged to negotiate lower distribution costs

Higher LoyaltyLower Churn

Higher MarketingProductivity

Strategic Brand Options: Strategic Brand Options: Faster Growth and Lower RiskFaster Growth and Lower Risk

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Tier I Brands

Tier 3 Brands

Tier 2 Brands

How should you leverage brand “time premiums”?Accelerate adoption early in cycle?Enter later, then accelerate (lower risk)?

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Indian Companies as …• Business Partners• Investments• Employers • Innovators & Designers• Component Sources• Best-in-Class Services• Quality (Manufactured, Assembled) Products• People with Culture & Values

Unique Competencies and ValuesUnique Competencies and Values

11 Rajendra Srivastavac

Branding Indian Companies Branding Indian Companies

Market and Brand-Building Investments

Investments in Global Networks, Brands (Build, Acquire), R&D Capability,

Customer Support & Supply-Chain Capabilities

Brand & Corporate Reputation

Perceptions of Product & Service Quality, Innovativeness,

Partnership, Ethics, Ease of Doing Business

BusinessPerformance

Cost CompetitivenessGrowth in Margins, Share of

Global MarketsPatents, New Product

Development Rate

Brand Maintenance &

LeverageExpenses

CommunicationsSales & Customer SupportDistribution and Service

Level Agreements

Shareholder Value

Growth In Market Cap.Direct Investments by

Global Business PartnersPercent of Stock Held By

Global Investors

Benchmark ALL Benchmark ALL Metrics Relative to Metrics Relative to

Emerging AND Emerging AND Developed MarketsDeveloped Markets

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