Your SlideShare is downloading. ×
0
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
BrandZ Top 50 Most Valuable Indian Brands Report
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

BrandZ Top 50 Most Valuable Indian Brands Report

2,443

Published on

This is the first year Millward Brown and WPP have released the BrandZ Top 50 Most Valuable Indian Brands. We evaluated local and international brands leading in value in the Indian market. This …

This is the first year Millward Brown and WPP have released the BrandZ Top 50 Most Valuable Indian Brands. We evaluated local and international brands leading in value in the Indian market. This newest BrandZ™ ranking and report is an addition to the BrandZ Top 100 Most Valuable Global Brands ranking introduced in 2006, and followed by annual rankings covering both Latin America and China, each to be published later this year.

The results of the ranking and report offer insightful, strategic information highly relevant both to local marketers and international brand leaders growing brands in the Indian markets. The BrandZ methodology now also fully incorporates Millward Brown's Meaningfully Different Framework, which has revolutionized how marketers look at and measure brand equity.

We gathered brand perceptions from consumers across the Indian market, in both urban and rural areas, and asked about brands with all kinds of ownership structures: individual private brands, Indian family owned conglomerates, MNCs (Multinational Corporations), and SOEs (State Owned Enterprises).

We selected brands that met these three qualifying criteria:

They reported positive earnings;
The brand or corporate brand owner was publicly traded in India; and,
In the case of banks, at least 25 percent of revenue came from retail business.
This approach produced a carefully conceived ranking of brands in 13 consumer-facing categories, such as automobiles, home care, personal care, soft drinks, and food and dairy. The ranking does not include any business-to-business brands, regardless of value, because they are outside the scope of this report.

Published in: Marketing
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,443
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
240
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The growing opportunity of India and the changing Indian consumer challenges all brands to remain relevant and different. Every brand has its story. To watch short individual videos about each of the BrandZTM Top 50 Most Valuable Indian Brands stories and unique content about India scan the QR code or go to: www.BrandZ.com/stories
  • 2. 6 7 TOP 50 Most Valuable Indian Brands 2014 India enters new period of widely shared optimism Timing is everything. Just a few months ago, India experienced a transformative moment when voters overwhelmingly rejected the national ruling party in favor of a challenger who promised to reenergize the economy and promote a culture of new possibilities and inclusive opportunity. Now we’re inaugurating the WPP BrandZ™ Top 50 Most Valuable Indian Brands 2014, a groundbreaking study that ranks these accomplished brands, analyzes their success, and points out important similarities and differences among the BrandZ™ brand valuation rankings in India, China, Brazil, Latin America, and the BrandZ™ Top 100 Most Valuable Global Brands. The BrandZ™ Top 50 Most Valuable Indian Brands 2014 is the first edition of an annual study that will chart and anticipate the rapidly changing environment for brands in India and the changing value of India’s most valuable brands. Whether you’re an Indian company or international company, already doing business in India or considering it, I promise that in this report you’ll find knowledge and insights to help create and grow brands in India more effectively. On page 22, Take Aways provide succinct action-oriented prescriptive recommendations from our analysis for brand success. We’ve also included summaries of India’s Top 50 most valuable brands. Brand experts from WPP Companies across India share their market wisdom in sharp insights and extensive thought leadership and best practices essays. And we’ve presented all this with stunning photography and a vibrant design as colorful as India itself. As you read the report, consider this: - India’s consumers like brands and Indian companies are sophisticated brand marketers. In India, 86 percent of brands are private. In China, 45 percent of brands are state owned. - India is home to all kinds of brands. Global brands and national brands thrive, but so do innumerable regional brands that are targeted specifically to particular segments of this diverse country. And because India is home to 1.25 billion people, even a regional brand has scale. - India is both old and young. India is one of the world’s oldest civilizations but a young nation, independent since 1947. The median age of the population is 27, compared with close to 40 in the UK and US. Ecommerce is beginning to boom in India, and the leading global Internet and social media brands are active. - Valuable Indian brands provide solid shareholder ROI. A portfolio of the BrandZ™ Top 50 Most Valuable Indian Brands significantly outperformed India’s SENSEX Index over the past five years. There are challenges, of course. The pace of change is more deliberate and slower in India than in China, for example. That’s in part a consequence of India’s democratic heritage, a fact that also ensures a high degree of political stability. Our timing was not coincidental At WPP, the global communications services leader, our companies have been engaged in India for over 85 years. Today, 13,000 people including associates work across India in Mumbai, Delhi, Bengaluru, Chennai, Kolkata, Hyderabad and many other cities. We provide advertising, marketing, insight, media, digital, shopper marketing and PR expertise. It’s part of our global presence in 110 countries. By linking all this talent, creativity, wisdom, and horizontality, we amplify global trends and insights that help our clients in useful and unique ways. We invite you to access our unrivaled BrandZ™ resource library. Along with the new BrandZ™ Top 50 Most Valuable Indian Brands report, the library includes these annual studies: BrandZ™ Top 100 Most Valuable Global Brands, BrandZ™ Top 100 Most Valuable Chinese Brands, and BrandZ™ Top 50 Most Valuable Latin American Brands. To download these and other reports, please visit www.BrandZ. com. For the interactive BrandZ™ mobile apps go to www.BrandZ. com/mobile. The backbone of all this intelligence remains the WPP proprietary BrandZ™, the world’s largest, consumer-focused source of brand equity knowledge and insight, and WPP’s proprietary BrandZ™ brand valuation methodology. First we analyze relevant corporate financial data and strip away everything that doesn’t pertain to the branded business. Then we take a critical step that makes BrandZ™ unique and definitive among brand valuation methodologies. We conduct ongoing, in-depth quantitative consumer research with more than 170,000 consumers annually, across more than 30 countries, to assess consumer attitudes about, and relationships with, over 10,000 brands. Our database includes information from over two million consumers. It reveals the power of the brand in the mind of the consumer that creates predisposition to buy and, most importantly, validates a positive correlation with better sales performance. At WPP, we’re passionate about using our creativity to create and build strong, differentiated brands that deliver lasting shareholder value. To learn more about how to apply our experience and expertise to benefit your brand, please contact any of the WPP companies that contributed expertise to this report. Turn to page 214 for summaries of each company and the contact details of key executives. Or feel free to contact me directly. Sincerely, David Roth WPP droth@wpp.com Twitter: davidrothlondon Blog: www.davidroth.com Conditions ripe for brand building Welcome Brand Selection Criteria Our proprietary BrandZ™ brand valuation methodology makes the Top 50 Most Valuable Indian Brands the definitive study of brands in India. The uniquely consumer-facing BrandZ™ methodology combines extensive and on-going consumer research with rigorous financial analysis. (See page 206 for full methodology.) We gathered brand perceptions from consumers across the Indian market, in both urban and rural areas, and asked about brands with all kinds of ownership structures: individual private brands, Indian family owned conglomerates, MNCs (Multinational Corporations), and SOEs (State Owned Enterprises). We selected brands that met these three qualifying criteria: - They reported positive earnings; - The brand or corporate brand owner was publicly traded in India; and, - In the case of banks, at least 25 percent of revenue came from retail business. This approach produced a carefully conceived ranking of brands in 13 consumer-facing categories, such as automobiles, home care, personal care, soft drinks, and food and dairy. The ranking does not include any business-to-business brands, regardless of value, because they are outside the scope of this report. To learn more about the BrandZTM valuation methodology, please contact: Elspeth Cheung, Global BrandZ™ Valuation Director, elspeth.cheung@millardbrown.com.
  • 3. 8 9 Part 1. Introduction Overview Themes 12 India Top 50 Portfolio 13 Insights 16 Highlights Key Results 18 Cross Category Trends 20 Take Aways 22 Background Economy and Demographics 28 History 30 Market Structure 34 Media Spending 36 BrandZ™ Analysis Categories and Brands 38 Brand Ownership 42 Brand Age 44 Brand Contribution 48 Brand India 50 Part 2. Thought Leadership Emerging Consumers 54 by Divya Khanna, JWT Millennials 56 by Upasana Roy, Ogilvy Premiumization 58 by Mythili Chandrasekar, JWT Retail Revolution 60 by Rajan Zachariah, Smollan Rural Mindset 62 by Soumitra Patnekar, Grey Worldwide Value 64 by Shaziya Khan, JWT Part 3. The India Top 50 India Top 50 Ranking 68 Category Summaries 70 Brand Profiles 1-10 78 Our Insights 98 Brand Profiles 11-20 100 Our Insights 120 Brand Profiles 21-30 124 Our Insights 144 Brand Profiles 31-40 146 Our Insights 166 Brand Profiles 41-50 170 Our Insights 190 Part 4. Brand Building Best Practices Brand Experience 194 by Gazala Vahanvati, Landor Total Consumer Experience 196 by Vivek Das, Blue Hive Expanding FMCG 198 by Urmi Saha, Millward Brown The Next Generation 200 by Devang Raiyani, Grey Bridging Cultures 202 by Ganapathy Balagopalan, Ogilvy Part 5. Resources BrandZ™ Valuation Methodology 206 BrandZ™ Reports, Apps and iPad Magazines 210 WPP Resources WPP Company Contributors 214 WPP Brand Building Experts 218 BrandZ™ India Top 50 Team 220 BrandZ™ Valuation Contact Details 222 WPP in India 223 Contents TOP 50 Most Valuable Indian Brands 2014
  • 4. Total Value of BrandZTM Top 50 Most Valuable Indian Brands = $70 billion50Brands 13Categories Brands formed since liberalization total the greatest value... %ofTotalValueofBrandZTM Top50MostValuableIndianBrands Rank:1 Value:US$9,425Mil. Rank:2 Value:US$8,217Mil. Rank:3 Value:US$6,828Mil. Rank:4 Value:US$3,536Mil. Rank:8 Value:US$1,882Mil. Rank:9 Value:US$1,721Mil. Rank:10 Value:US$1,636Mil. 1991 1947 19% 37% 44% Brandsestablished beforeIndependence Brandsestablished afterIndependencebut beforeliberalization Brandsestablished afterliberalization FMCG brands lead Brand Contribution The Brand Contribution leaders have long heritage in India. BRAND CONTRIBUTION measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 highest Strong brands outperform the market The BrandZ™ Indian Top 50 Portfolio significantly outperformed India’s SENSEX over the past five years. 201% 74% 09 0%-250% 10 11 12 13 14 BrandZ™IndianTop50Portfolio SENSEXIndia 16% 17% 33% 34% SOEs MNCs Indianfamilyconglomerates Privateindependents Brand ownership among the Top 50 includes private independents, Indian family conglomerates, MNCs (Multinational Corporations) and SOEs (State Owned Enterprises). %ofTotalValueofBrandZTM Top50MostValuableIndianBrands Family conglomerates and private independents dominate BrandContributionValue BrandContributionRanking 5 5 5 5 5 5 5 4 4 4 Alcohol - 4.7% Automobiles - 12.2% Banks - 35.8% FoodandDairy-8.3% Home Care - 3.3% Insurance - 1.1% Jewelry - 1.3% Lubricants - 1.8% Motor Fuels - 3.5% Paints - 4.7% Personal Care - 5.3% Soft Drinks - 1.2% Telecoms - 16.9% %ofTotalValueofBrandZTM Top 50MostValuableIndianBrands 7 of the Top 10 brands come from the Service sector
  • 5. Part 1 Introduction
  • 6. Part 1 // Introduction - Overview India is on the cusp of new optimism and brand growth The BrandZ™ Top 50 Most Valuable Indian Brands 2014 totals $70 billion in value. Service sector brands, banks and telecoms primarily, drive that result. Consumer product brands also contribute, powered by Indian family conglomerates and MNCs (Multinational Corporations). The value of the India Top 50 reflects the efforts of these brands to serve the rising middle class and those who aspire to it, both in India’s cities and countryside. Brand value growth is taking place as India experiences a resurgence of hope following the election in May of Prime Minister Narendra Modi, and a shift from the Indian National Congress party, which ruled India much of the time since independence in 1947. Indians from diverse backgrounds expressed dissatisfaction with the status quo, and their desire for a society based on equal opportunity rather than stratification and entitlements. The immediate impact for brands seems to be that a country market that’s been hospitable is about to become even more supportive and welcoming. And the potential is enormous. Perhaps the world’s oldest civilization, India is among its youngest nations. Its population totals 1.25 billion, with a median age of 27, around 10 years younger than the US, UK, and even China. There is this caveat. As an ancient civilization, the birthplace of Hinduism, Buddhism, Jainism, and Sikhism, the home of 22 regional languages, a place where cultural traditions can change village-by-village, the only definitive statement about India is that nothing is simple. The country has been on the cusp of change before. The optimism following independence ended in failed economic policies and political trauma, including the assassinations of two prime ministers. Change happens slowly in India, modulated by the competing interests of the country’s democratic polity, and an Indian view of time and progress that respects the past while embracing the present. Daily life unfolds in this duality. India is not a teardown nation where infrastructure appears almost overnight even if heritage is obliterated in the process. It’s a place that attempts to advance with material and spiritual needs aligned. If the pace of growth is slow, it’s also inexorable and relatively stable. Growing brand confidence Indian entrepreneurs have become more sophisticated and focused on brand building. Leadership of the Indian family owned conglomerates has moved from the entrepreneurial founding generations to younger family members and professional managers with extensive business education. To satisfy the demands of Indian consumers, Indian brands perfected their value-for-money propositions. And the presence of competitive MNCs forced Indian brands to innovate, certainly in FMCG (Fast Moving consumer Goods), but also in categories like cars, where the Indian brand Mahindra leads the SUV segment. The mobile phone category illustrates the growing confidence of Indian brands. After initially offering low priced imitations of global smart phone brands, Indian brands, such as Micromax, Karbonn, and Lava, improved functionality and gained credibility, in part by using international celebrities as brand ambassadors to suggest parity between Indian and global brands. Micromax scaled up to sell phones internationally at a competitive price. Similarly, Indian motorcycle brands, like Hero, Bajaj, and TVS are expanding into Southeast Asia, Africa, and other developing markets where the experience of Indian brands prepares them to serve the needs of value-focused consumers. For categories, like wellness, Indian brands offer the additional advantage of heritage. Examples include the Parachute brand of Marico and the ayurvedic offerings of Dabur, like its flagship Vatika hair care brand. The Indian family conglomerates most clearly demonstrate the potential power of Indian brands. Having developed respected master brands across disparate categories in India, these dynastic organizations are building international presence. The Aditya Birla Group operates industrial businesses in 36 countries. Over time, Tata companies have acquired brands as different as Jaguar Land Rover and Tetley Tea. 14 15 Overview // Themes May 09 0% 50% 100% 150% 200% 250% May 10 May 11 May 12 May 13 May 14Nov 09 Nov 10 Nov 11 Nov 12 Nov 13 BrandZ™ India Top 50 Portfolio outperforms India’s SENSEX The strong stock growth of the India Top 50 confirms that valuable brands deliver solid shareholder returns, our BrandZ™ analysis shows. We created a stock portfolio of the BrandZ™ Top 50 Most Valuable Indian Brands 2014 and compared its performance over the past five years with the performance of India’s SENSEX. Between May 2009 and May 2014, The BrandZ™ India Top 50 Portfolio appreciated 201 percent compared with a rise of 74 percent for SENSEX. The BrandZ™ India Top 50 Portfolio includes all the brands in BrandZ™ Top 50 Most Valuable Indian Brands. SENSEX is a weighted Index of 30 stocks listed on the Bombay Stock Exchange. Confirming the connection between strong brand power and positive stock market performance, the BrandZ™ India Top 50 Portfolio significantly outperformed India’s SENSEX over the past five years. Sources: BrandZ™/ Millward Brown, Bloomberg 201% 74% BrandZ™ India Top 50 Portfolio SENSEX India TOP 50 Most Valuable Indian Brands 2014
  • 7. Part 1 // Introduction - Overview 16 17 Overview // Themes Trends and countertrends These developments unfold in an Indian way. Trends meet countertrends and change happens in this tension, as these current examples suggest: “Premiumization”/Inclusiveness Driven by rising aspirations and income, brands across categories are introducing more premium products and services. But premium is only a narrow band of the potential. The move to premium alone accrues only short- term results. The larger opportunity is in achieving inclusiveness by making most brands more available and affordable. National/Regional Because of India’s rural character, with languages and traditions that sometimes change within short distances, brand preferences change too. Especially in FMCG, multiple regional brands compete successfully with national brands. Smart local consumers purchase the local brand over the national when they believe they’re getting similar benefits at a lower price. Brands face two clear and opposing opportunities: growth by consolidating regional brands into powerful national brands; and growth by developing regional brands which, in India, can have economic scale. Talent Drain/Talent Pool No consumer technology brands appear in the BrandZ™ India Top 50. In contrast, several of China’s most valuable brands are in technology. This absence of valuable technology brands in India is striking because of the presence of so many Indian entrepreneurs in major tech companies worldwide, but it’s easily explained. Global consumer technology brands – Google, Facebook, Twitter, LinkedIn – operate relatively freely in India, so there’s no gap in the market. The recent rise of India tech brands, particularly in ecommerce, indicates that Indians who may have pursued their technology ambitions abroad in the past, are increasingly contributing their talents at home, a development that should have tremendous impact for the technology category and brands going forward. An expanding opportunity Influenced by the Internet and social media, Indians with widely different income levels share similar aspirations. But the affordability gap remains. Although India is becoming wealthier, even in rural areas, almost 30 percent of the population lived below the poverty line as of 2010, according to the World Bank. Many brands support efforts to help create a country that’s economically and socially inclusive. As a democracy, India depends on organic cohesiveness, rather than imposed order, to keep the nation whole. It has experienced traumatic periods when cohesiveness wore thin. The determination to achieve inclusivity is in the DNA of India’s leading brands across all sectors. They don’t treat CSR (Corporate Social Responsibility) as an add-on, but rather as a relevant business function. FMCG brands that produce laundry products often become involved in hygiene and water conservation initiatives. Banks expand into underserved rural areas where initial ROI may not be significant but the potential of the unbanked is great. Finally, there’s the Indian Diaspora. While 1.25 billion Indians live in India, perhaps another 22 million Indians, almost the population of Australia, live in other parts of the world. These people form a receptive audience for exported Indian brands. And many of them live abroad only temporarily, for study or work, returning to India with knowledge to contribute, money to spend, and brand sophistication that will influence purchasing.
  • 8. Part 1 // Introduction - Overview Key factors differentiate India and impact brand development Service sector brands dominate in value Service sector brands – the banks, insurance companies, and telecoms – account for the largest proportion of value in the BrandZ™ Top 50 Most Valuable Indian Brands 2014. Many of these brands are relatively young, formed in the last 25 years after the market liberalization of the 1990s. They have invested tremendously in building brand and scale. The strength of this sector is not particular to India. Because financial institutions and telecoms are fundamental to the growth of nations, the service sector generates high brand value across the BRIC countries. However, in India, service brands account for a rising proportion of GDP growth, formerly driven primarily by agriculture. And distinctive to India, these brands primarily are privately owned, not SOEs (State Owned Enterprises). Because of the nature of their businesses, and because they understand that opportunity in a land of 1.25 billion inhabitants is not limited to the expanding middle class – as significant as that is – these brands also organize their offerings to meet the needs and aspirations of the broadest possible market, as they expand both in urban and rural areas. Banks, in particular, articulate the need for inclusiveness, and advance a progressive, and commercially viable, social agenda to meet the needs of the unbanked. Telecoms promote programs to make their services widely affordable. While building scale, however, the service sector brands have not sufficiently developed deep relationships with their customers. BRAND IMPLICATIONS Having built scale, the service sector brands are salient, a BrandZ™ measurement of being familiar on a top-of-mind basis. They’ve have had a meaningful impact on improving the lives of many Indians, opening bank branches in remote regions and empowering small vendors with mobile phones. Consumers, however, don’t see these brands as meaningfully different. Meaningful (meeting functional needs and cultivating emotional attachment) and different (being distinguished, even a trend setter) are, along with salient, the BrandZ™ components of brand equity. Service brands need to invest in building customer relationships. They need to evolve from being providers of products and services to being trusted service partners. Having said that, Indian service brands have been relatively innovative. Three banks appear in the India Top 5, and each scores high in brand contribution, the BrandZ™ measurement of brand influence alone, when all other factors, including financial power, are stripped away. FMCG brands excel in brand contribution Of the Top 10 Indian brands in brand contribution, nine are in FMCG (Fast Moving Consumer Goods) categories. While these brands lack the near monopolistic influence of the service category brands, they score well in the BrandZ™ MDF (Meaningful Different Framework) of brand equity. And the brands are salient, well known to the point that they come easily to mind. These brands achieved MDF strength in a variety of ways, some of which pertain to brand age and brand ownership. Brand age in India divides into three periods: before independence in 1947; after independence but before market liberalization in 1991; and post liberalization. In contrast to the service brands, mostly formed post liberalization, the FMCG brands came into being much earlier. Many have long Indian heritage. They’re all private. Individual Indian entrepreneurs formed a few of the brands. Some brands fit under the master brand of an Indian family conglomerate with a portfolio of brands across categories. Others are brands that MNCs (Multinational Corporations) introduced to India which, over decades of marketing, have become Indian brands in the consumer mind. BRAND IMPLICATIONS Although these brands have achieved strong brand equity, they lack the scale of the service sector brands, in part because the nature of their categories requires reaching market segments rather than the full mass market. Their strong equity enables these brands to build scale without sacrificing their meaningful difference, an important advantage. However, these brands haven’t fully leveraged their equity to pursue new business opportunities and increase earnings. Private brands comprise most of the India Top 50 Brand ownership reveals one of the key distinctions between India and other BRIC markets. Over 85 percent of the India Top 50 most valuable brands are privately owned. In China, valuable brands are much more likely to be state owned. While private brands predominate in Brazil, ownership is not the determinative brand success factor that it is in India. The difference in India is the presence of Indian family conglomerates and MNCs. The family owned conglomerates have succeeded where conglomerates often fail, creating master brands that convey trust and reliability across disparate categories, while at the same time accruing economies of scale. Additionally, the family conglomerates have succeeded where family businesses often fail, in transmitting a sense of mission and business acumen to successive generations. Similarly, the MNCs have achieved an elusive goal of multinationals. MNCs in India have combined the advantages of global scale and expertise with the need to gain deep local market insight and be perceived as a local brand. BRAND IMPLICATIONS The family owned conglomerates need to continue do what they do best, build businesses using their respected master brands. But they need to consider potential shifts in consumer attitude toward master brands. While young people respect tradition, they’re also more inclined look beyond it, for new ideas and experiences. At the same time, the family conglomerates need to prepare for audiences where the master brand has little or no currency – outside of India. Having built world-class marketing competence, some of the family owned conglomerates are ready for new growth stages, with expansion abroad and the acquisition of international brands for introduction in India. The MNCs have done an excellent job of building valuable brands. Of the Top 50 most valuable Indian brands, 34 percent are owned by MNCs. The MNCs now have an opportunity to build scale, in part by leveraging their market presence to rapidly reach groups of consumer who desire – and for the first time can afford – their products and services. Brands face greater potential and competition India’s history, culture, and democratic values make it a tolerant country open to new ideas. It’s also a country that’s hospitable to brands. Indian consumers like brands. They have long experience with brands. These conditions make the market fertile for new brand entries. But it also makes the market competitive. The relative lack of SOEs and the predominance of privately ownership, mean that Indian brands have significant brand building experience. In the BrandZ™ Power Index, a measurement of brand equity, the India Top 50 most valuable brands score virtually the same as the Global Top 50. Both new entrants and existing Indian brands face similar market opportunities. These include: reaching the growing number of consumers now able to purchase products and services; and communicating both to the mass market and to market segments, which have economic scale in India. BRAND IMPLICATIONS Until now, salience has been important. Many Indian brands build top-of-mind awareness with celebrity brand ambassadors, often movie stars or sports stars. Those tactics will go only so far as the Indian market evolves. Consumers will look for brands that promise and deliver meaningful and differentiating benefits that improve life in some way. In part because of government policies, some sectors have been more protected than others from foreign competition. The absence of significant overseas competitors in retailing, for example, has meant that the manufacturer brand owner drives brand building. In countries with more developed modern retail sectors, the brand owner and retailer share brand building power, or compete for it. 18 19 Overview // Insights 1 2 3 4 TOP 50 Most Valuable Indian Brands 2014
  • 9. India Top 50 reaches US$ 70 billion in value The combined value of the BrandZ™ Top 50 Most Valuable Indian Brands reached almost US$ 70 billion. Brand equity is strong In creating a consumer predisposition to purchase, Indian brands performed better than comparable brands in Brazil or China, and equal to the top brands globally. In the BrandZ™ Power Index, a brand equity measurement, the India Top 50 scored 222, compared with a 221 score for the Global Top 50. The average score for all brands worldwide is 100. Mega brands dominate The Top 5 brands account for 45 percent of the total value of the BrandZ™ India Top 50, or US$ 31 billion. This concentration of value at the top of the ranking is similar to other BRIC markets. In contrast, the Top 5 brands in the Global Top 50 account for only about a quarter of the ranking’s total value. Financial services sector leads in brands represented Financial service brands – banks and insurance companies – represent almost a quarter of the brands ranked in the BrandZ™ India Top 50. That level of representation exceeds the proportion of financial services brands in the BrandZ™ Brazil and China rankings, and is equivalent to the Global Top 100. Financial service brands are typically well represented in BrandZ™ rankings because the sector is fundamental to economic health. Banks are the most prominent category Banks are the most prominent category in the BrandZ™ India Top 50, both in number of brands and total brand value. Ten banks account for 35.8 percent of the brand value of the Top 50. HDFC Bank ranked most valuable brand With a brand value of US$ 9.4 billion, HDFC Bank is India’s most valuable brand. When established in 1994, following India’s financial reform, HDFC Bank became one of India’s first private banks. Telecoms exhibit high brand value With only three brands in the BrandZ™ India Top 50, telecoms are number two in total brand value, making up 16.9 percent of the ranking’s total brand value. Airtel ranked second most valuable brand Ranked the second most valuable brand in the BrandZ™ India Top 50, with a brand value of US$ 8.2 billion, Airtel is part of Bharti Enterprises, an Indian family conglomerate, and operates in 20 countries. FMCG brands lead in brand contribution Nine of the Top 10 brands in brand contribution are from FMCG categories. A BrandZ™ metric, brand contribution measures the impact of brand alone on earnings. The result reflects that India has long been is a hospitable market for brands. Many FMCG brands started before India’s independence in 1947. They’ve flourished in a democratic and relatively open market economy. Food and dairy, and personal care brands are well represented Food and dairy, and personal care brands each comprise 14 percent of the brands in the BrandZ™ India Top 50. That’s a high level of representation relative to other BRICs. Personal care comprises only 2 percent of the brands ranked in the Brazil Top 50 and China Top 100. The contrast suggests strong Indian interest in personal care. The food and dairy representation in part indicates MNC (Multinational Corporation) success in introducing and developing FMCG brands. Most of the BrandZ™ India Top 50 brands are private Unlike China, where SOEs (State Owned Enterprises) dominate the BrandZ™ ranking of most valuable brands, private brands comprise 86 percent of the BrandZ™ India Top 50. Indian entrepreneurs and Indian family conglomerates together own over half of the private brands. Others are owned by MNCs. Both the conglomerates and the MNCs have effectively leveraged significant resources and world-class marketing expertise to build scale and develop meaningful brands. Master brands exert influence The Indian family conglomerates have developed powerful master brands that confer trust and authority across categories while simultaneously accruing economies. Unlike many conglomerates, they’ve built brand equity across disparate categories. And unlike many family businesses, they’ve established continuity of mission and competence in successive generations. Brand age tells a lot in India You can tell a lot about a brand by its age in India. The younger brands tend to be banks or telecoms that rapidly achieved scale since market liberalization in the 1990s. They enjoy high market value and salience but consumers are less likely to see them as meaningfully different. Older brands, formed before liberalization, and even before Indian independence, in 1947, often are well known and appreciated FMCG brands. Some started originally in India, while others were established elsewhere and introduced in India by MNCs. Top 50 brands seen as entrepreneurial In a BrandZ™ brand personality analysis, the characteristic “adventurous” distinguished the India Top 50 from the Brazil, China and Global Top 50, suggesting that leading Indian brands are viewed as more entrepreneurial. Part 1 // Introduction - Highlights Findings and analysis frame opportunities and challenges Highlights // Key Results 20 21 TOP 50 Most Valuable Indian Brands 2014
  • 10. Part 1 // Introduction - Highlights Current forces can propel or disrupt brand growth Rural expectations are changing Brands are moving into rural and semirural areas of India. Banks are opening branches and establishing a presence. HDFC Bank opened mini-branches staffed by only a couple of people. Hindustan Lever is increasing small town penetration of its FMCG (Fast Moving Consumer Goods) products. The trend is similar to the brand expansion into China’s lower tier cites. The difference is that the Indian government has not, literally, paved the way. People are moving to cities People from India’s rural areas are moving to the country’s cities seeking opportunity. Growth of the urban migrant population is the same phenomenon as happened in China. And there’s another similarity. People from rural areas who become urban dwellers don’t abandon their roots. When they return to their small towns and villages they potentially become ambassadors for brands they experienced in the city. This possibility is important for brands because in rural areas the recommendations of local leaders can carry more weight than media messages. Value drives consumer spending Chastened by the global recession and the slowdown in the growth rate of India’s economy, Indian consumers are purchasing more thoughtfully. Similar to many of today’s Chinese consumers, Indians prefer to purchase value rather than status. For those who can afford a luxury car, the badge is still important, but not as important as the drive. Less well off Indians have traditionally sought value. That’s one reason for the abundance of regional brands that compete with national names, which usually are more expensive. Premium gains middle class attention Some consumers are willing to pay a premium for certain products, such as healthier foods and beverages. Consequently, companies like Hindustan Unilever, Procter & Gamble, ITC, and Cadbury are adding more premium offerings to their product portfolios. Two leading paint brands, Asian Paints and Berger Paints, introduced initiatives to inspire more elaborate and upscale home decoration. Banks are increasing their focus on wealth management. Even some commodities, like rice, are branding to suggest a qualitative difference that deserves a premium. Affordability reaches across the economy Members of India’s rising middle class, and those who aspire to move up into that group, share the Indian dream, to prosper individually and as a family. Across the economic spectrum people are eager to have that dream realized sooner rather than later. Brands are responding with schemes to make their products and services more accessible. Buying on installment is available both for inexpensive products and luxury cars. Consumers link brand with identity Indian consumers increasingly consider the brands they choose as expressions of who they are as individuals. The connection between brand and identity extends to experiences, as people consider holidays abroad to more aspirational destinations, like Europe. Young generation has different priorities The median age of India’s population is 27. In contrast, people of median age in the US and UK are almost 40. This generational difference is significant for brands. India’s young people were born in the 1990s, post liberalization in a free market period that drove economic growth. Unlike their parents, their priority is not saving for a rainy day. They want nice things. But they’re also struggling to balance their desire to advance with the tug of family and tradition. That’s part of what motivates young people to move to the city. It limits the tensions at home. Brands need to communicate in new ways to reach them. More opportunities open for women The presence of more women in the workplace influences brand products and services and communications. Motorcycle brands have introduced sub- brands aimed at women. Ads for Hindustan Unilever’s Fair & Lovely skin treatments emphasize themes of women’s empowerment, achievement, and transformation. 22 23 Highlights // Cross Category Trends
  • 11. Part 1 // Introduction - Highlights Insights and actions for building valuable brands in today’s India Highlights // Take Aways Meet desire with affordability In India, if you can create a product or service, you can find a market for it. You need to create desire and deliver an affordable price. Don’t assume your market is limited to the wealthy. It’s not only the middle class in the cities who have aspirations. Less well off people in both the cities and rural areas are eager for the good life. Figure out a way for them to afford the piece of the good life that you’re selling. Hair coloring is a big business, and not just for the wealthy. Mobile phones, cars, innovative consumer products, and healthcare are just a few of the categories where marketers need to match product and service affordability with consumer desire. India may be one of the few markets where a consumer can purchase an iPhone with installment payments. Build scale and depth It’s not one or the other in India. With 1.25 billion inhabitants, India clearly offers scale. But to fully realize that opportunity, it’s also necessary to achieve depth, to connect emotionally. Indian service brands, like telecoms, are excellent at building scale. FMCG brands do a better job developing depth or emotional connection. To achieve meaningful differentiation, build both scale and depth. This dual focus is particularly relevant in India because of the diversity of the country. Building scale requires serving the particular interests and tastes of many different consumer segments. For international brands, it’s useful to think of India as Europe, a large geography with states that are both unified and distinctive. For Indian brands, achieving both scale and depth can help sharpen the competencies necessary for overseas expansion. Understand the special role of master brands In many of the world’s markets diversification hasn’t been the optimum path to brand success because too often it diffuses focus, producing more inefficiencies than synergies. That assumption doesn’t work the same way in India, where some of the most successful brand builders are the family owned Indian conglomerates. Their master brands, symbolizing efficacy and quality, enable these companies to expand across dissimilar categories, IT to FMCG, generating consumer trust and accruing economies of scale. These conglomerates have achieved these results over time and with the advantage of Indian heritage, so master brands are not a formula for instant success. However, major MNCs (Multinational Corporations) have demonstrated that master brands, when accompanied by deep market insight and patience, can create brands that Indian consumers view as Indian even if the actual provenance is not. Seek insight in contradictions Indians live surrounded by the artifacts and traditions of their ancient civilization. They also live in the same day-to-day reality as the rest of the developed world. Indians constantly mediate between these realities. The same person may wear contemporary clothing one day and traditional dress another. The balance between old and new depends on time and circumstances. It’s a factor in many purchasing decisions. This balance also means that Indians are receptive to accepting brands whether they are old (Bank of India , established in 1906) or new (Airtel, established in 1995). Set the clock on Indian time This duality of embracing the past while living in the present is one of the reasons, along with political differences, that the pace of change in India is relatively slower than in China, where until recently infrastructure construction took priority over preservation, and consumers faced the future with less equivocation. Brands need to set their expectations in India according to a clock that spans millennia. Paradoxically, progress that seems slower may be faster. When change happens deliberately and incrementally, society’s material, communal, and spiritual needs are more likely to remain aligned. The result can be long-term growth and stability at a deep level. Study the young; view the future India is a young country demographically. The median age is 27. In contrast, the median age in the US and the UK is more than 10 years older. Young people desire the newest and shiniest products. And they’re more likely to purchase them – even with lay away plans – than their parents. The older generations lived through difficult economic periods, without an elaborate social safety net, when the prevailing mentality was about saving for a rainy day. Young people are less risk averse. But there’s a caveat. Although young people are more likely than their parents to challenge tradition, young Indians share with their parents the need to balance the old and the new and don’t reject tradition totally. Question Basic Assumptions 1 2 3 4 5 6 24 25 TOP 50 Most Valuable Indian Brands 2014
  • 12. Highlights // Take Aways “Indianize” Drive Brand Power “Indianize” Don’t expect to simply repackage a global product and sell the same formulation successfully to 1.25 billion Indians. That’s a thrilling idea. But it usually fails. The international brands that have experienced the greatest success in India – and there are many – took the time to understand Indian needs and tastes and adapt to them. When Nestlé introduced Maggi instant noodles, in 1982, it gave them a Masala taste, and today Indians generally think of Maggi as an Indian brand. Even the most iconic of global brands, McDonald’s, did not fully succeed in India until it introduced Indian flavors and vegetarian menu options that would seem out of character for the world’s largest hamburger chain. Along with adapting to the mass market, “Indianizing” can involve another step, understanding the myriad regional and cultural variations within the mass market. That knowledge unlocks possibilities for more focused offerings that, given the overall size of India, can still be produced at economic scale. Think and act regionally Managing India’s diversity remains a challenge for marketers. What sells in one part of the country might not sell well in some other part, so marketers have to constantly customize their offerings for regional needs, taste and sentiments. While people in the north tend to believe claims made by ads, in the south they look for reasons to believe. Even celebrities enjoy different levels of popularity and appeal in various parts of the country. Taste varies immensely from east to west and north to south – in food habits, media consumption or any other way of life. Marketers need to keep in mind these differences in their efforts to create successful national brands in India. The message may be national, but the communication needs to be local market specific. With possibly one exception. Conventional marketing wisdom holds that two things unite the billion-plus people of India – movies and cricket. Maintain focus on traditional retailing Marketers need to distribute in the modern retailing sector, which is expanding slowly as the Indian government incrementally relaxes market entry restrictions. But today, Indian retailing still is dominated by traditional retailing – the local kirana shops, the independently- owned neighborhood general stores, chemists, footwear shops, apparel shops, shops selling paan (betel leaf) and beedi (tobacco), the hand-cart hawkers and pavement vendor. While marketers must use the modern trade format for promoting their brands and gaining distribution efficiencies, they need to continue refining their distribution and promotion strategies through the traditional route – because the modern sector accounts for only about 7 percent of Indian retailing. Define and deliver good value Indian consumers are extremely value conscious. Well travelled and educated, they’re aware of what’s available in the West. They want the latest, most modern technology at a reasonable price. Marketers need to innovate and keep up with the consumers’ constantly changing interests and desires. Perceived good value is pivotal. But the consumer’s understanding of good value varies by category and brand. Marketers need to decode consumer behavior and define good value by category and brand – and deliver it. Help the consumer feel smart While the details of value differ by category and brand, this much is consistent: value no longer means cheap. Consumers are discerning. Especially in poorer rural areas, household budgets require purchasing products that work well the first time and for a long time. That’s why regional brands proliferate in many categories. They offer enough quality at a good price. Consumers feel they’re getting their money’s worth. They feel smart. Offering traditional price discounts and sale periods may help attract these value- driven consumers. But not as much as providing an honest product or service at the right price. Be Meaningful In today’s India, where consumers know what they want and are aware of the different brand offerings, being meaningful and relevant is imperative. As the preference for branded products increases, consumers seek more relevant and personally significant brands. Building affinity, an emotional connection with the consumer beyond the transactional relationship, is critical for marketing success. Some brands, like the bakery and dairy brand Britannia, have connected so strongly with consumers, that in the minds of many Indians the brands actually represent not just particular product ranges, but entire categories. Differentiate Indian consumers today have a strong sense of identity and they want to stand out in the crowd. A me-too brand is not acceptable anymore. A brand needs to have a meaningful USP that differentiates it from competition. Differentiation does not necessarily mean developing a new offering. Marketers can look at differentiating with service, brand experience, ambience or anything else that suits their brand. Build trust Trust and reliability are the most critical attributes for a brand to possess in India, relative to other country markets, research suggests. Closing any gap between the brand promise and the delivery of the promise builds trust. While legacy brands like Tata and State Bank of India have built trust over many years, global brands like McDonald’s and Nokia have also cultivated trust by, over time, finding the right localized approach. For heritage and global brands, the common factor is being true to the consumer and providing authentic products and services. 7 8 9 10 11 12 13 14 Part 1 // Introduction - Highlights 26 27 TOP 50 Most Valuable Indian Brands 2014
  • 13. Market Creatively Crack the value code Consumers have many choices. Find something that makes your brand or service locally relevant, different, and necessary. Make something about your offering – the functionality, delivery, or emotional appeal – superior to the competition. Or make your offering more accessible. And execute effectively. Get social India is the world’s second largest market for social networking sites. Major social media brands, such as Facebook, Twitter and LinkedIn, operate relatively freely in India, in contrast to China. Facebook has approximately 100 million users in India. The country has the world’s third largest Internet base, with 210 million Internet users, according to the Internet and Mobile Association of India. Social networking in India helps improve brand engagement. Social media platforms, detailing the user’s demographics, preferences, social connections and behavior, provide an attractive proposition for advertisers. The high granularity of information allows advertisers to target consumers much more effectively. Get mobile India ranks third among countries for mobile device users. Around 84 million Indian Facebook users access the website using their mobile devices. Mobile marketing is the next big platform for brands in India. Especially in rural areas, where illiteracy and erratic electricity supply sometimes hamper traditional marketing platforms, marketers need to leverage mobile’s advantages. Missed-call ads – ringing and leaving a message to save the recipient the cost of the call – have proved successful for some leading brands in India. With the increasing number of utility transactions – like paying bills, banking, and booking tickets – being made on mobile phones, the medium has huge potential. Implement clever ecommerce strategies Increased trust, low price offers, and the ability to transact 24/7, drive ecommerce growth in India, where there are over 25 million online buyers and over 210 million Internet users. Marketers must explore the ecommerce route more aggressively and adapt it to the particularities of the Indian market. For example, because credit card ownership is limited and customers hesitate to pay for merchandise before receiving it, many ecommerce brands have successfully adopted a cash-on- deliver strategy. Optimize media spending The media industry has changed significantly, driven by the changes of 2001, when liberalized government regulations invited more competition in print, television, radio and eventually social media and out-of-home. Add in the numerous variables like geography, language, religion and socio- economic status, and the Indian media market becomes very complex and challenging for advertisers and media planners. Consumers don’t consume media one medium at a time anymore. They browse websites on mobile devices while watching TV, or notice an out-of-home ad while browsing through the pages of a magazine. Marketers need to optimize their media mix to get the highest ROI. Simplify the route to market Having an efficient route-to- market strategy helps consumer- facing businesses gain market share at an optimal cost. But the route that a product or service needs to travel before reaching its end user remains complex in India. Marketers need to develop more creative strategies to reach the consumer. Combining bricks and mortar retailing with ecommerce is probably the starkest example of this creative thinking. Other strategies include: using unconventional channels, like self- help groups in rural markets; using mobile technology to reach every consumer; and focusing more on modern trade, a less complex channel. 15 16 17 18 19 20 Highlights // Take Aways Part 1 // Introduction - Highlights 28 29 TOP 50 Most Valuable Indian Brands 2014
  • 14. Part 1 // Introduction - Background Key Facts and Figures 30 31 Background // Economy and Demographics Bangalore Bhopal Mumbai Amritsar Hyderabad Nagpur New Delhi Agra Population Total population 1.25 billion Rural population as percent of total population 68% Population below the poverty line1 (2010 estimate) 29.8% Population by age1 Median Age 1 (2014 estimate) Figures from the World Bank and for 2013 unless otherwise noted 1 CIA World Fact Book 2014 estimate Figures from the World Bank and for 2013 unless otherwise noted 2 Internet and Mobile Association of India 65 years and over 55-64 years 25-54 years 15-24 years 0-14 years 5.7% 7% 40.6% 18.1% 28.5% 27yrs 30.7yrs 36.7yrs 37.6yrs 38.7yrs 40.4yrs Economy US$ 24 billion US$ 76.1 billion US$ 295.6 billion US$ 50.6 billion Foreign Direct Investment GDP Per Capita (around the same as Yemen) US$ 1,499 GDP Rate of Growth 5% 71% 89 135 153 Mobile Subscriptions per 100 people 46 213 million (141 urban/72 rural)2 Total Internet Users Internet Users per 100 people 15 6152 Geography 3.1 million sq.km./ 1.2 million sq.mi Land Area (world’s seventh largest nation, about one-third the size of the US) GDP (about equal to Canada) US$ 1.9 trillion Ease of Doing Business 134 (on a scale of 1 to 189, 1 being the most business friendly) TOP 50 Most Valuable Indian Brands 2014
  • 15. 3332 Recent findings suggest that India is possibly the world’s oldest civilization. Compressing this extensive history into a brief timeline produces a limited and inexact glimpse into the formation of a nation. But the summary knowledge is a useful introduction for any brand trading, or contemplating trading, in India. Part 1 // Introduction - Background Ancient civilization absorbs diverse influences, inspires major religions Background // History Pre-History The Dravidians, a group of people who shared a common language, were among the earliest inhabitants of the territory of modern India, starting perhaps 4,000 years ago. But in 2002, scientists discovered an enormous city, dated to 7,500 BCE, 100 feet deep in the Gulf of Cambay, off of the India’s west coast, near Gujarat. The discovery suggests that civilization in India may have formed much earlier. The Beginning 4000 BCE Historians generally believe that the populations of India and much of the West are rooted in the same place, around the Black Sea, with the Indo-European people, who spoke similar languages and lived perhaps in the area of modern-day Turkey or Ukraine. Some of these people moved west into Europe and others migrated south through what is now Iran, arriving ultimately in India. The Indus Valley Civilization 2500 BCE to 1700 BCE In the migration south, the Indo-European language evolved into Indo-Iranian and then Indo-Aryan. Along the Indus River, in what is now Pakistan and northern India, the Indo-Aryans came in contact with what’s considered the largest civilization of the ancient world, with a population exceeding that of Egypt or neighboring Mesopotamia. These people introduced the Vedas, collections of devotions to various gods, written in Sanskrit. A collection of Vedas called the Upanishads influenced the development of Hinduism. The Dravidians may have populated the Indus Valley. The Axial Age 800 BCE to 200 BCE This period of history marks a radical transformation in human consciousness, with the emergence of a new sense of self that changes how people view morality, life, and death. In inventing the term Axial Age, German philosopher Karl Jaspers noted that this change happens almost simultaneously and independently in different parts of the world. In Iran, Zarathustra establishes Zoroastrianism. Hinduism evolves from the earlier Vedic texts. Jainism appears. The Buddha is born. Confucius is born in 551 and Laozi, the founder of Daoism, a few years later. The Hebrew Bible is redacted during the exile in Babylonia. In Greece, Socrates, Plato, Aristotle and others establish the foundation of western philosophy. Successive empires advance human knowledge Conquest and Unification 500 BCE to 185 BCE When the king of Macedonia, Alexander the Great, set out to conquer the known world, he followed roughly the same route as the Indo-European migration south. After conquering the Persians, who had extended their empire into the area that today is Pakistan and Afghanistan, he reached the Hydaspes River in Punjab. But after defeating the Indian armies led by King Porus, Alexander, his troops exhausted, ended his conquest of India. The Golden Age 320 BCE to 550 CE Subsequently, the Maurya Dynasty unified India under the rule of Ashoka the Great. Buddhism flourished during this period. And maritime trade with Rome began. For about three hundred years, much of India enjoyed peace and prosperity during the Gupta Empire. During this period, Hinduism became the major religion and Indians made major advances in science and mathematics, inventing the concept of zero and the decimal system. TOP 50 Most Valuable Indian Brands 2014
  • 16. Part 1 // Introduction - Background Background // History Empires and Invasions 500 to 1500 With the end of the Gupta Empire, India fractured into several kingdoms. Arab Muslims conquered Persia and then the areas now Pakistan and Afghanistan, but Hindu rulers repelled advances further south. Later, Turkic and Afghan invaders established the Delhi Sultanate in northern India and exerted influence in other parts of the country, adding Islam to the mix of religions. Mughal Era 1500 to 1857 Mughal invaders defeated the Muslim rulers of northern India, adding more elements to the country’s cultural mix. Turkic-Mongols from central Asia, the Mughals traced their lineage to Genghis Khan. During the seventeenth and eighteenth centuries they controlled most of India. A Mughal emperor, Shah Jahan, built the Taj Mahal. In 1499, Portuguese explorer Vasco da Gama discovered a new sea route to India, around Africa’s Cape of Good Hope. The Dutch East India Company was established in 1602. Subsequently, the Danish, French, and Portuguese set up similar mercantile businesses. Britain established its East India Company in 1612. British Rule 1858 to 1947 With these developments, India became not only a trading partner for the Europeans, but also another theater of war. Following Britain’s victory in the Seven Year’s War, which broke out in 1756, its East India Company controlled most of India for about a century, until an Indian rebellion against the company in 1857. Then the British government asserted control. It installed modern governance institutions, helped build the economy, and encouraged an emerging middle class. At the same time, much of India remained impoverished. By the early 1920s, the Indian National Congress called for self-government. Relying on principles of non-violent protest, Mahatma Gandhi led a movement for independence. Independence 1947 to 1991 In the global geo-political reorganization following World War II, India achieved independence, on August 15, 1947, and Jawaharlal Nehru became the nation’s first prime minister. Britain partitioned the land into a Muslim state, Pakistan, and a predominately Hindu state, India. Massive migration and violence ensued. Tensions between India and Pakistan deteriorated to the point of war several times. Internal divisions resulted in the assassinations of two prime ministers, Indira Gandhi in 1984, and her son Rajiv Gandhi in 1991. India’s economy neared default in 1991. This trauma forced the government to advance more inclusive policies and loosen its central control of the economy. Rising India 1991 to Today Some sectors, such financial services and telecommunications, experienced reform, while other sectors lagged. Having nationalized banks in 1966, the Indian government allowed more private ownership, in 1996. Regulatory reform of insurance, in 2000, attracted foreign investment. For similar reasons, the telecom sector grew exponentially. In contrast, the retail sector remains highly protected and fragmented. Although GDP grew by over 10 percent in 2010, the economy slowed to half that rate in 2013. The overwhelming rejection of the long-time ruling party, and the vote in favor of Narendra Modi, in India’s national election, in May 2014, signaled impatience with the pace of reform and affirmed a desire for greater opportunity. 3534 Centuries of dynastic and colonial rule end with independence and democracy Modern India strives for inclusive opportunity TOP 50 Most Valuable Indian Brands 2014
  • 17. Part 1 // Introduction - Background Background // Market Structure 3736 Indian family conglomerates own many valuable brands In a distinctly Indian phenomenon, family conglomerates own 26 percent of the BrandZ™ Top 50 Most Valuable Indian Brands, and a significant number of India’s other leading brands across most categories, from industrial products to FMCG. Most of the Indian conglomerates were formed over 65 years ago, before the establishment of India as an independent nation, during the period of British rule, at a time when India’s middle class first expanded and local entrepreneurs found ways to align with the government’s nation-building agenda. When conglomerates worldwide often failed to produce productive synergies among their many holdings, many Indian family conglomerates expanded their holdings and built master brands that confer authority across disparate categories while accruing economies of scale. They’ve also succeeded where many family businesses fail, transmitting a sense of mission and entrepreneurialism to successive generations. There are around 40 prominent Indian family conglomerates. The largest include: Adani Group, Aditya Birla Group, Bharti Enterprises, Essar Group, Godrej Industries, Mahindra Group, O.P. Jindal Group, Reliance-ADA Group, Reliance Industries, Sahara Group, and Tata Group. Indian family conglomerates overall score significantly higher than MNCs (Multinational Corporations) in brand power, the BrandZ™ measurement of brand equity and a brand’s ability to drive market share. Factors driving this result include: Dynasty Prior to British rule, India experienced centuries of dynastic leadership. These family conglomerates adapted India’s traditional governance structure and applied it to commerce. Over time, they leveraged their privilege, knowledge of the system, and access. Family Family is the primary social unit in India, perhaps more than in many other nations. Until recently, individual prerogatives were secondary to the needs of the family. The family dynasties match this cultural characteristic. Trust Trust plays and important role in Indian society. A family name on a product or service assures consumers with promises of quality and reliability even across unrelated categories. Mission The conglomerates are not building family wealth alone, although they’re often tremendously wealthy. They’re also building businesses to serve a nation. This mission provides guidance and continuity for successive generations. Local Roots Local knowledge and connections, important factors for success in any market, are especially critical in India because of complexity and diversity. Success requires getting the subtleties right. Professionalism In culture, Indian conglomerates respect tradition and family; in operations, they adopt the most up- to-date, global best practices. This duality is part of what makes them successful and particularly Indian. Prominent Indian Family Conglomerates Adani Group Established in 1988, the Adani Group focuses on developing infrastructure, logistics and energy to meet the needs of a more prosperous India. The company’s businesses include coal mining, development and operation of seaports and railways, and electric power generation and delivery. The Adani Foundation promotes inclusive growth by focusing on these areas of concern: education, community health, job development for people in need, and rural infrastructure. Aditya Birla Group Outside of India, Aditya Birla is best known for its industrial products, including copper, aluminum, cement, and fertilizer. Indians think of it for fashion, telecommunications, financial and retail. Its brands in India include Idea Cellular. The Aditya Birla Group was formed in 1857, in the village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started a cotton trading business. Today, the Group’s operations extend to 36 countries. Bharti Enterprises Bharti operates businesses in telecom, insurance, retail, digital TV and foods. The telecom business is present in 20 countries across Africa and Asia, and includes a joint venture with Japan’s Softbank. Bharti’s retail operation included a six-year joint venture with Walmart. Founded in 1976, by Sunil Bharti Mittal, the company developed first as a manufacturer of bicycle parts, and started in telecom services by launching a mobile services business in Delhi, in 1995. Essar Group Essar Group operates primarily in steel, energy, infrastructure, shipping, ports and logistics, and services, including tele- communications, in over 25 countries. The company was incorporated in June 1976. Godrej Industries Established in 1897 as a lock company by inventor Ardeshir Godrej, Godrej Industries today includes: real estate; FMCG, particularly home care and personal care products; chemicals; and agribusiness, with products such as animal feed and palm oil. As advocates for inclusive growth, Godrej operates its “Good & Green” program to help more low income people find productive employment and to make more affordable and environmentally responsible products available to them. Mahindra Group Mahindra has a presence in a wide range of industries, including: aerospace, agribusiness, automobiles, automobile aftermarket, construction equipment, defense, energy, farm equipment, finance and insurance, industrial equipment, IT, leisure and hospitality, logistics, real estate, and retail. Two brothers, J.C. Mahindra and K.C. Mahindra, and Malik Ghulam Mohammad, incorporated the original company, Mahindra & Mohammed, in 1945, in Punjab, to trade steel. The company entered automobile manufacturing in 1947. Today, the company is especially well known for its SUV brands and tractors. O.P. Jindal Group An industrial conglomerate, O.P. Jindal Group maintains interests in steel, cement, mining, and power. Founder O.P. Jindal opened the company’s first steel plant in Hisar, in northwestern India, in 1952. The company’s operations today span the globe. Reliance–ADA Group Reliance Anil Dhirubhai Ambani Group is present in many sectors including: communications, infrastructure, financial services, entertainment, power, healthcare, technology, cement, real estate, food, and logistics. The group formed in 2005, when the two brothers running Reliance Industries split that company into two entities. Reliance Industries The business interests of Reliance Industries include: retail, telecommunications, and petrochemical exploration, refining and production. The wide range of retail holdings includes Reliance hypermarkets, specialty stores in both food and non-food, and relationships with major international brands. Founder Dhirubhai Ambani incorporated Reliance Textiles Industries Private Limited in 1966. After an IPO (Initial Public Offering) in 1977, the company focused on vertical integration, connecting its textile business in polyester fibers to the petrochemical business. Sahara Group Sahara India Pariwar interests include: infrastructure and housing, sports, finance, retail, power, manufacturing, IT, media, entertainment, tourism, healthcare, dairy, hospitality, and power. The Group owns several sports teams and major interests in London’s Grosvenor House Hotel and New York’s Plaza Hotel. Tata Group The Tata Group operates over 100 companies, across the world, in seven business sectors: communications and IT, engineering, materials, services, energy, consumer products, and chemicals. Among the companies are: Tata Motors, with brands such as Jaguar Land Rover; and Tata Docomo, the telecom. Formed from a trading company that Jamsetiji Nusserwanji Tata established in Bombay, in 1868, the company entered its first major industrial business, in 1874, with the establishment of the Central India Spinning, Weaving and Manufacturing Company. Over time, the Group entered the airlines and automobile businesses. And it 1952, it created the first popular Indian cosmetic brand, Lakmé, now owned by Hindustan lever. TOP 50 Most Valuable Indian Brands 2014
  • 18. Part 1 // Introduction - Background Background // Media Spending 3938 Digital gains growing share of an expanding media pie Digital advertising investment in India is predicted to grow 35 percent in 2014, following a 30 percent increase a year earlier. This growth would give digital just under 8 percent of total media spending. Digital already is the third largest media sector investment, less than TV and print but higher than out-of-home, radio, and cinema. As digital gains as a percentage of total spending, the share of some traditional media declines. Although print is expected to claim a strong 38 percent of total media spending in 2014, that’s down from 53 percent in 2005. In contrast, TV investment increased over the same period to 44 percent of total media spending from 37 percent. Driven by India’s economic expansion and the brand building requirements of a market economy, the total media pie expanded between 2005 and 2013, even as the slices changed in relative size. And in actual spending, investment in all media increased during this period, even for magazines, which are experiencing the greatest pressure. Total media spending is expected to reach 430.6 billion rupees (US$ 7.2 billion) in 2014, up from 386.0 billion rupees (US$ 6.4 billion) in 2013, and from only 156.3 billion rupees (US$ 3.6 billion) in 2005. FMCG leads media spending... Representing 29 percent of all media spending, FMCG led all sectors, with significant investment also in retail and auto. Media Spending by Sector Ad Spending by Media Source: GroupM and others ...With more spending going to digital Digital spending continued its steady growth, with print investment, especially magazines, predicted to again decline. Source: GroupM and others FMCG 29% Real Estate 4% Services 4% Consumer Durables 5% Financial Services 5% Telecoms 6% Others 22% Retail 12% Automobiles 8% Education 6% 2005 0% 20% 40% 60% 80% 100% 2007 2009 2011 20132006 2008 2010 2012 2014 Estimated TV Print Digital OoH Radio Cinema TOP 50 Most Valuable Indian Brands 2014
  • 19. The value of the BrandZ™ Top 50 Most Valuable Indian Brands 2014 is concentrated at the top of the ranking, among a limited number of categories. Two categories – banks and telecoms – comprise more than half of the brand value of the India Top 50. Banks are the most represented category, with 10 brands. Only three telecom brands appear in the Top 50, but they’re highly valued and each ranks in the Top 10. The Top 5 brands alone – three banks, a telecom, and an automobile brand – produce 45 percent of the Top 50’s total value. The brands are HDFC Bank, State Bank of India, and ICICI Bank, along with Airtel and Bajaj Auto. In counterpoint to the concentration of value and the limited number of categories at the top of the Indian ranking, the rest of the Top 50 is more category diverse, with food and dairy, personal care, and home care also well represented. The value of bank, telecom, and automobile brands results from a couple of factors. Market liberalization, particularly changes enacted in 1991, encouraged more private ownership and resulted in new brands. Heritage and consumer appeal drove growth of existing brands. For example, Punjab National Bank opened in 1895. After several changes in ownership and brand name, the current State Bank of India was established in 1955. Bajaj Auto was formed in 1959. Tata Motors began in 1945. Part 1 // Introduction - BrandZ™ Analysis Value is concentrated at the top, similar to other BRIC markets BrandZ™ Analysis // Categories and Brands 40 41 Top 50 ranking by brand value Top 5 ranking by brand value Brand value is concentrated at the top of the India Top 50... The Top 5 brands account for 45 percent of the total value of the India BrandZ™ Top 50. Source: BrandZ™/ Millward Brown Source: BrandZ™/ Millward Brown Source: BrandZ™/ Millward Brown Top 5 Ranking 6-20 Rankings 21-50 Rankings HDFC Bank 30% Airtel 27% State Bank of India 22% ICICI Bank 11% Bajaj Auto 10% Top 50 by brand value Top 50 by number of brands ...Banks dominate in value, number of brands Banks are the most prominent category in the BrandZ™ India Top 50, both in brand value and number of brands. Banks - 35.8% Telecoms - 16.9% Automobiles - 12.2% Food and Dairy - 8.3% Personal Care - 5.3% Alcohol - 4.7% Paints - 4.7% Motor Fuels - 3.5% Home Care - 3.3% Lubricants - 1.8% Jewelry - 1.3% Soft Drinks - 1.2% Insurance - 1.1% Bank - 10 Brands Food and Dairy - 7 Brands Personal Care - 7 Brands Automobiles - 5 Brands Home Care - 4 Brands Telecoms - 3 Brands Motor Fuels - 3 Brands Alcohol - 3 Brands Paints - 2 Brands Soft Drinks - 2 Brands Insurance - 2 Brands Lubricants - 1 Brand Jewelry - 1 Brand Value concentration consistent with other BRICs The concentration of brand value at the top of the BrandZ™ India Top 50 is consistent with the results in other BRIC markets. In fact, the Indian market, with the Top 5 brands representing 45 percent of total Top 50 value, is somewhat less concentrated than Brazil (48 percent) and China (50 percent). In contrast, only 27 percent of total brand power is concentrated in the Top 5 brands in the BrandZ™ Global Top 50. The dominance of banks in the India Top 50 is also consistent with BrandZ™ rankings across other BRIC markets, where the number of financial services brands exceeds other categories. The Top 5 brands of the BrandZ™ Indian Top 50 account for 45 percent of total value, which makes brand power in India a bit less concentrated than in other BRICs. % Value - Brand value share of top 5 brands The concentration of brand power is consistent across the BRICs... TOP 50 Most Valuable Indian Brands 2014
  • 20. Financial services brands comprise 24 percent of the brands ranked in the BrandZ™ Indian Top 50 compared with Latam (26 percent), and Brazil (12 percent) in other BrandZ™ Top 50 studies. Financial services brands comprise 15 percent of the China Top 100 and 23 percent of the Global Top 100. Similar to other BRIC markets, India also has a strong telecoms category. Unlike other BRIC markets, the Indian automobile category accounts for a significant portion of total brand value. And unlike China, the technology sector does not account for a high proportion of brand value in India. Several factors account for this technology finding, which seems counter intuitive given the large presence of Indian entrepreneurs active in technology worldwide. Most significant, the major global technology players like Google, Facebook, Twitter, and LinkedIn operate without restriction in India, so there is no gap in the market. Also, during difficult economic times Indian entrepreneurs fulfilled their ambitions outside of India. With economic improvement, Indians are finding greater opportunity at home. Consumer technology brands are rapidly developing, particularly in ecommerce. (These brands are not publicly traded and therefore do not meet the criteria for inclusion in the BrandZ™ India Top 50, although many have achieved high value.) Part 1 // Introduction - BrandZ™ Analysis BrandZ™ Analysis // Categories and Brands 42 43 Sector India Top 50 Brazil Top 50 China Top 100 Latam Top 50 Global Top 100 Automobiles 10% 0% 1% 0% 6% Alcohol & Soft Drinks 10% 8% 13% 18% 4% Food & Dairy 14% 8% 7% 6% 0% Financial Services 24% 12% 15% 26% 23% Oil & Gas 6% 2% 2% 8% 5% Personal Care 14% 2% 2% 2% 3% Retail 2% 20% 1% 26% 8% Technology 0% 2% 7% 0% 18% Telecoms 6% 8% 3% 8% 11% Others 14% 38% 49%* 6% 22% ...Financial services are pivotal in all economies... ...The value of automobile brands distinguishes India In the BrandZ™ Top 50 Most Valuable Indian Brands, as in other BrandZ™ BRIC rankings, the financial services category dominates in the number of brands represented. Food and dairy and personal care brands also are well represented in the Indian ranking. Unlike other BRIC markets, local automobile brands rank in the India Top 50. India has no technology brands in its Top 50 ranking, in contrast to China. Financial Services TelecomsTechnology Automobiles Category comparisons across country rankings Implications for brands The structure of the Indian market, with a few categories and brands dominating in brand power, is consistent with the situation in other BRIC markets. The concentration is partially category driven. The service brands, financial services and telecoms, which are fundamental to national infrastructure, drive scale, often with government support. The distinction in India is that the banks and telecoms are mostly privately owned. And FMCG brands generally are part of the brand portfolio of an MNC (Multinational Corporation) or an Indian family conglomerate. These well-funded organizations are capable of driving high brand value.Source: BrandZ™/ Millward Brown Source: BrandZ™/ Millward Brown Note: 49 percent Others in China mainly comprises real estate, apparel, and home appliances. Financial services dominates in number of brands ranked India China Global Brazil Latam 12.2% 36.8% 24% 14.7%38.4% 22.8% 12.6% 1.1% 28.9% 16.9% 4% 0.2% 11.9%19.5% 3.4% 15.8% TOP 50 Most Valuable Indian Brands 2014
  • 21. Part 1 // Introduction - BrandZ™ Analysis Most Top 50 brands are private, although ownership type varies BrandZ™ Analysis // Brand Ownership 44 45 The BrandZ™ Top 50 Most Valuable Indian Brands are predominately private, reflecting a complicated and distinctively Indian brand ownership structure. In all BRICs, including India, high value brands are either SOEs (State Owned Enterprises) or they’re private. In India, however, private ownership includes at least two, and possibly three, variations. Independent entrepreneurial brands drive about half the value of Indian privately owned brands. Family conglomerates, an Indian phenomenon, drive the other half of the value of private brands. In addition, MNCs (Multinational Corporations), essentially private organizations, drive significant brand value. Although MNCs, by definition, are present worldwide, they have an unusual presence in India, where many of their brands are considered local. Private brands –entrepreneurs, Indian family conglomerates, and MNCs – comprise 84 percent of total brand value and 86 percent of the brands in the BrandZ™ India Top 50. SOEs make up 16 percent of the value and 14 percent of the brands. In contrast, ownership of the China Top 50 is 45 percent SOE and 55 percent private. Ownership in Brazil is overwhelmingly private (94 percent), but the Brazilian private sector is monolithic compared with India’s. Several differentiating factors drive India’s more complicated ownership structure: Democracy and free-market economy State ownership doesn’t fit India’s democratic ethos. In the early 1990s, India loosened its centrally controlled economy, enabling private brands to emerge, especially in banking and telecoms. Trading history European powers arrived during the Age of Exploration. MNCs came to India early with brands they deeply embedded in India as local brands. Nestlé set up a factory in 1912. Hindustan Unilever formed in 1933. Dynastic rule Prior to the period of British rule, a series of dynasties governed India. Many large Indian families adapted that model of governance for commerce, establishing family master brands that cross many categories. Implications for brands India is a competitive market. The high percentage of brands owned either by Indian family conglomerates or MNCs means that marketing sophistication is high. The success of both the Indian family conglomerates and the MNCs provide valuable lessons for achieving success in ways that defy usual assumptions. Although conglomerates too often don’t achieve expected efficiencies and synergies, the Indian family conglomerates created strong master brands that confer trust across categories while accruing marketing efficiencies. The MNCs successfully introduced existing brands, “Indianizing” them so that consumers presume that the brands originated in India. Nestlé established a new category in India when it introduced Maggi instant noodles, in 1982. Horlicks, a chocolate malt drink began in 1873, in Chicago, and became a household name in the UK before it’s Indian market entry, in 1930. Indian consumers consider both of these market-leading brands Indian. India is rich in private brands, particularly in FMCG categories, because both the Indian family conglomerates and the MNCs have scale across diverse businesses, reach deep into the Indian market, and implement effective brand- building strategies. Brand ownership is more complicated in India... Brand private ownership in India includes entrepreneurs, Indian family conglomerates, and MNCs (Multinational Corporations). $70bn 67% of Total Value 26 Brand in Top 50 16% 17% 7 17 US$ 23 bil. US$ 11 bil. Private Private with MNCs 84% of Total Value Private 52% US$ 12 bil. US$ 24 bil. Total Value of Total Value of Total Value Brands in Top 50 Brands in Top 50 Indian Conglomerates State Owned MNCs Independent brands Source: BrandZ™/ Millward Brown Source: BrandZ™/ Millward Brown India China Brazil ...SOEs play a larger role in China and private ownership dominates in Brazil... India’s complicated ownership structure distinguishes it from China and Brazil. Ownership structure - by number of brands SOEs 14% SOEs 6% Private 55% Private 94% Independent Brands 26% Indian Conglomerates 26% SOEs 45% MNCs 34% Ownership structure - by brand value Private with MNCs 86% of Total Number of Brands TOP 50 Most Valuable Indian Brands 2014
  • 22. Part 1 // Introduction - BrandZ™ Analysis Age of an Indian brand indicates its challenges and opportunities BrandZ™ Analysis // Brand Age 46 47 The age of every Indian brand corresponds to a particular period in India’s political and economic development. These periods influenced the brands in their formative years and continue to shape them and define their potential challenges and opportunities. Brands under age 23 were established since 1991, after India’s economic liberalization. Brands age 23 to 67 emerged prior to liberalization. And brands older than age 67 came into being during the period before Indian statehood, in 1947. Of the Top 50 brands, 14 were formed after liberalization and 15 were formed before independence. Although roughly the same in number, the brands formed after liberalization account for 44 percent of total brand value, more than double the percentage value generated by the older brands. Twenty-one Indian brands, the greatest number, fall in the middle group, formed in the period after independence but before liberalization. In comparison with other BRICs, the greatest number of Brazil Top 50 brands were formed over 64 years ago, while around three-quarters of the Chinese Top 100 were created less than thirty-five years ago. Two reasons explain the relative youth of Chinese brands. First, the “Reform and Opening Up,” started in 1978, stimulated growth and brand development. Second, the BrandZ™ China analysis includes the Top 100 brands, and the brands ranked 51 to 100 are younger. Brands formed since liberalization total the greatest value... The 14 brands formed since liberalization generate 44 percent of the total value of the BrandZ™ India Top 50. $70bn 14 Brands in Top 50 21 Brands in Top 5015 Brands in Top 50 US$ 31 bil. US$ 26 bil.US$ 13 bil. Total Value Brands established after liberalization 1991 Less than 23 years old Brands established before liberalization 1991 23 - 67 years old Brands established before Independence 1947 Over 67 years old Source: BrandZ™/ Millward Brown Implications for brands The brands formed during this period entered competitive sectors relatively free of protective regulation. They have brand building experience. As more competition enters these sectors, and more sectors open to competition, the need for branding skills will increase. Market liberalization happened over time and today some categories, like telecoms, are more open than others, like retailing. If liberalization can be slow, it also seems inexorable, which means that opportunities await brands as more categories open. Two cataclysmic events shook India’s economy and politics in 1991. Until then, the Indian government had depended on centralized economic control to drive development and protect Indian businesses. The approach limited Foreign Direct Investment and growth. By 1991, India verged on default. The country also was in the midst of contentious elections that intensified ethnic and religious divisions. Assassins killed Prime Minister Rajiv Gandhi while he was campaigning. Emerging from this trauma, India began to implement reforms to encourage a market-driven economy and a more inclusive polity. Brands formed after 1991 developed in this robust outward-looking India working to find strength in its diversity. Economic change evolved slowly, however, with its effects felt unevenly across sectors. Brand examples Recognizing the importance of telecommunications to national development, the Indian government opened the sector to competition in 1994. Several brands formed soon after: Airtel (1995), Idea (2002), and Reliance Communications (2003). The insurance sector opened to international investment in 2000, enabling joint ventures that combined global best practice experience with local insight and access to rising middle class consumers. That same year, several UK and Indian financial services companies created HDFC Life and ICICI Prudential. After liberalization in 1991 - Under Age 23 37% 44% 19% TOP 50 Most Valuable Indian Brands 2014
  • 23. Part 1 // Introduction - BrandZ™ Analysis BrandZ™ Analysis // Brand Age 48 49 Implications for brands Implications for brands Brands introduced during the last half of the past century often are well entrenched in the Indian market and experienced at promoting both the functional and emotional benefits of their products. Many of the brands rely on brand ambassadors, often leading Hindi and local language movie stars. They face the key challenge of success: complacency. Consumers are changing. More women are entering the workforce. Young consumers are challenging societal traditions. In a freer market with more competition, complacency can be fatal. Brands with this kind of heritage probably have more to teach than to learn. With that said, these brands market today much differently than they did when they were formed. That past adaptability is key to their future vitality. As this ancient civilization, with a recent colonial past, transformed into an independent state in 1947, India faced the enormous challenge of building a modern economy able to sustain its population and compete with other nations. Central control of the economy characterized the first 40 years, but government ownership didn’t reach the same level as in China. Other than the State Bank of India, which dates to a predecessor brand formed early in the nineteenth century, most financial institutions operated privately until 1969, 22 years after independence, when the government nationalized the largest commercial banks. In other sectors, many new brands emerged during this period, driven by consumer desire. These brands usually were not established by SOEs (State Owned Companies), in contrast to China. Instead, they typically were powered by the financial strength of large conglomerates, sometimes Indian, sometimes MNCs (Multinational Corporations). This activity created a richer brand landscape across many sectors, with some sectors open and others, such as insurance, banking, and energy, tightly controlled or regulated. Many local FMCG brands flourished. Because regulations prevented most international retailers from operating in India, local brands faced less pressure to cut margins or compete with retailer private labels. Brand examples Maruti Suzuki, an Indian-Japanese joint venture, changed the car market when it introduced the Maruti Suzuki 800, in 1982. United Breweries Group, an Indian conglomerate, founded in 1857, launched Kingfisher, its flagship beer brand, in 1978. The Indian FMCG conglomerate Hindustan Unilever, started in 1933, introduced Fair & Lovely, a leading skin lightening product, in 1975. The period before independence covers the years of British rule, from 1858 to 1947. Several bank brands were established. Less expected, perhaps, is the emergence of brands in FMCG and other categories that are not about establishing fundamental institutions but rather reflect the desires and tastes of ordinary consumers. One of the earliest brands, Punjab National Bank, was established in 1895. But Britannia, a maker of popular biscuits, cakes, and dairy products, started in 1892. It’s owned by Wadia Group, an Indian conglomerate formed around the time that the British East India Company arrived in India, in the eighteenth century. The longevity of the brands established prior to India’s independence suggests that if their survival was aided by government regulation or limited competition, it probably was not due to those factors alone but also the brands’ ability to build deep and enduring bonds with customers. Brand Examples Some brands arrived in India during this period, having been founded earlier in another part of the world. Established in the US, in 1873, Horlicks, a chocolate malt drink become popular in the UK and arrived in India in 1930. Lever Brothers launched Lux soap in 1899 and introduced it to India in 1905. Other brands began in India, such as Asian Paints, formed in 1942, and Tata Motors, which began in 1945. Before liberalization in 1991 - Ages 23 to 67 Before Independence in 1947 - Over age 67 Source: BrandZ™/ Millward Brown Based on the BrandZ™ China Top 100, Brazil Top 50, and India Top 50. ...The Brazil brands are older and the Chinese younger Comparing the BrandZ™ BRIC country rankings, China has more younger brands and Brazil more older brands, with India in the middle. Age of Brands - China vs Brazil Age of brand (% value share) - India 74% of brands 44% - 14 Brands 26% of brands 12% of brands 19% - 15 Brands 36% of brands 14% of brands 37% - 21 Brands 38% of brands Less than 35 years old 35 - 64 years old Over 64 years old Less than 23 years old 23 - 67 years old Over 67 years old China Brazil TOP 50 Most Valuable Indian Brands 2014
  • 24. Part 1 // Introduction - BrandZ™ Analysis Consumer goods brands lead in brand contribution BrandZ™ Analysis // Brand Contribution 50 51 Brand contribution measures the impact of brand alone, without financials or other factors, in the mind of the consumer. A high brand contribution score – on a scale of one to five, five being the highest – suggests that a brand is resilient and likely to produce strong future earnings. India’s Top 10 brand contribution leaders are mostly in FMCG categories. FMCG brands operate in highly competitive, often fragmented sectors and generally lack the level of dominance that can approach the monopolistic levels of service brands. However, FMCG brands often enjoy high brand equity. And many FMCG brands have been present in India for at least 50 years, starting with brand contribution leader, Lakmé (personal care, 1952), and including, Lipton (beverages, 1898), Colgate (personal care, 1937), and Surf Excel (home care, 1959). In contrast, many Indian service brands formed relatively recently, after the economic liberalization in the 1990s. They have rapidly and effectively built scale but not the emotional connections to consumers that drive brand contribution. The BrandZ™ Top 50 Most Valuable Indian Brands 2014 scored an overall brand contribution average of 3.02, only a moderately strong result, in part because of the dominance of service brands that score lower in brand contribution, with financial results driving value. However, the brand contribution results of the service brands are nuanced, with the banks generally scoring higher than the telecoms. The Indian BrandZ™ Top 5 most valuable brands scored an average 3.6 in brand contribution because three banks outperformed category expectations. State Bank of India scored 5, and HDFC Bank and ICICI Bank each scored 4. Indian financial services brands as a group score higher in brand contribution than Brazilian or Chinese brands. Indian telecoms score lower. Implications for brands In strengthening brand contribution, the FMCG brands and the banks and telecoms face different sets of challenges. The service brands have outspent FMCG brands on brand building, in part because they’re newer to the Indian market and needed to build scale. The service brands introduced product innovations that have meaningfully changed the way Indians live their lives. However, consumers don’t see these brands as meaningful. The brands have not transitioned from product providers to trusted service partners. In contrast, FMCG brands, often long established in India, have cultivated emotional affinity with consumers and enjoy consumer trust. But many of these brands have not adequately leveraged those accomplishments for commercial advantage. In terms of the three BrandZ™ components of brand equity, service brands have built salience (top of mind awareness) but are less likely to be seen as meaningful (meeting functional and emotional needs) and different (distinguished and trendsetting). The FMCG brands are strong in the three brand equity components. They need to leverage their strong equity to pursue new business opportunities and to increase earnings. As FMCG brands continue to strengthen equity, they’re better able to build scale and salience without losing the meaningful difference that accrues from serving discrete market niches. Source: BrandZ™/ Millward Brown Source: BrandZ™ Brand Contribution measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 highest FMCG brands lead brand contribution ranking... ...Indian financial service brands outscore Brazil, China ...The India Top 5 score well in brand contribution... The brand contribution leaders have long heritage in India. Indian financial services brands score higher in brand contribution than Chinese or Brazilian brands. The BrandZ™ Top 5 score better in brand contribution than the India Top 50 overall. Top 10 by Brand Contribution Rank Brand Brand Value (US$ Mil.) Brand Contribution 1 Lakmé 297 5 2 Lipton 208 5 3 State Bank of India 6,828 5 4 Berger 451 5 5 Surf Excel 778 5 6 Saffola 450 5 7 Castrol 1,264 5 8 Asian Paints 2,812 4 9 Horlicks 1,018 4 10 Rin 302 4 Top 50 Top 5 Ranking 6 - 20 Ranking 21 - 50 5 4 3 2 1 0 3.02 3.60 2.73 3.07 BrandContributionIndex Financial Services Telecoms Automobiles 2.8 1.3 2.0 India 1.9 3.3 China 1.0 2.6 1.0 Brazil 2.6 2.6 3.3 Global Brands TOP 50 Most Valuable Indian Brands 2014
  • 25. 53 Part 1 // Introduction - BrandZ™ Analysis Brand India’s personality differs from other BRIC country brands BrandZ™ Analysis // Brand India 52 Brand India is similar to the national brand personality of two other BRIC countries, Brazil and China. It’s also different from both in significant ways. Understanding the differences is useful for brands competing in India and for Indian brands with overseas growth aspirations. BrandZ™ country personality profiles are compiled from the descriptions local consumers form of a country’s most valuable brands, using a vocabulary of 20 personality characteristics. Brand India, in other words, is the cumulative impression that consumers have of the country’s Top 50 most valuable brands. Because they’re based on the each country’s most valuable brands, these constructions of Brand India, Brand China, and Brand Brazil are especially relevant for competing in these country markets. A country brand personality helps brand owners understand how a particular brand fits into the consumers’ general view of brands across categories. For exporters, country brand comparisons identify the potential areas of advantage or disadvantage, where a country brand can help propel or slow international expansion. While India, Brazil, and China are remarkably congruent in brand personality characteristics, there are some tonal differences. India is more brave, adventurous and wise, for example. Adventurousness, in particular, points to a degree of entrepreneurialism. The character distinctions are consistent with brand ownership structures in the three country markets. The overwhelming majority of the most valuable Indian brands are privately owned. In contrast, 45 percent of the most valuable Chinese brands are SOEs (State Owned Enterprises), not known for being brave or adventurous. Although Brazil’s most valuable brands are usually privately owned, they’re relatively older. In addition, the private Indian brands are predominately owned by Indian family conglomerates or MNCs (Multinational Corporations). Both kinds of organizations have boldly built brands. The Indian family conglomerates have developed master brands that cross categories and in a way form the basis of Brand India. Rebelliousness is the one characteristic that’s relatively less evident in Brand India, not surprising in a country that values its cultural heritage, and where people constantly mediate between the tug of tradition and the demands of modernity. Source: BrandZ™/ Millward Brown Brand India differs from Brand Brazil and Brand China The three BRICs – Brazil, China, and India – are similar in brand personality, but Brand India differs in certain ways. Being seen as adventurous suggests a level of entrepreneurialism for Brand India. Caring Brave Fun AdventurousCreative KindDifferent WiseRebellious IdealisticIn Control InnocentAssertive FriendlyGenerous StraightforwardPlayful SexyTrustworthy Desirable India China Brazil TOP 50 Most Valuable Indian Brands 2014
  • 26. Part 2 Thought Leadership
  • 27. Part 2 // The India Top 50 - Thought Leadership Seeking a better life, emerging consumers travel on diverse, intersecting journeys Flexible individuality Migration is also the easy way to adopt new values. Rather than stay with the extended family or community and fight daily battles, moving away makes it easier to assert individuality without compromising those relationships. While traditional values are still fiercely defended in rural strongholds, the urban areas are a kind of refuge for those who are weary of ideological debates, physical violence and simply want the freedom to live their own lives. It’s not about choosing between the extremes, just the flexibility to decide which values to hold on to and which to give up from a purely individual perspective. Merging with the mighty middle class With a new prime minister who boasts of a background as a chaiwalla, a humble tea seller, democracy in India is truly coming of age. Political ideology aside, this is the ultimate proof for the emerging consumers that they can base their identity on their ambition in terms of where they want to go and not by where they may be coming from. Ask them to classify themselves and they’ll tell you they are middle class. Only those looking for a handout would say they are poor. And they know that handouts will not get them where they’re aiming to go; only their own efforts will. Fulfilling long-held aspirations As they migrate from being have-nots to haves, emerging consumers are starting to fulfill aspirations that they have long held. They may have not always consumed our products and services, but they have been consuming our brand messages. So assuming they know little or are less savvy than the other consumers could be dangerous. In fact, given their past struggles, they are likely to be more sensitive to disrespect and condescension. Life is to be lived, not just endured Every migration happens by degrees. Only Bollywood movies like to show a helpless country bumpkin transplanted into a big city. Emerging consumers are not so isolated and unaware. They too chart their journeys with care and foresight, trying to learn what they can expect, preparing themselves as best they can. Life is not something to be endured; it is something to be created. From how they dress to how they live, from how they talk to the new kinds of work they learn to do, there are many avenues to explore. They have already subscribed to the credo of most city-dwellers – “my life, my rules.” The attitudes, values and beliefs of the emerging consumers are rapidly shifting, giving a boost to both their consumption ability and preferences. Yet, they are firmly in the driver’s seat. Rather than attempting to wrest control of the wheel or change the direction on their maps, we might benefit from understanding their journeys and where our products might fit in with their agenda. They may spend more on a mobile phone handset but may stop using soap if the brand raises the price by one rupee. It’s up to us to figure out why and what our brands/products can do to be invited along on these journeys. It’s not easy to generalize in a country as diverse and dynamic as India. And emerging consumers, like every other segment, have not one but many different narratives. He’s the young villager trying to find his way in the big city and she’s the slum-mother trying to direct her children’s future. He’s the hard worker who lives for the one month he spends as the big man returning home to his small town and she’s the young college girl trying to mask her humble origins. If the emerging consumer is not one person with one journey but many people with overlapping journeys, it would be good to draw ourselves a map, to identify the points of intersection, where we can be assured of heavy traffic for the messages we need to get out. So, rather than profile a single stereotypical emerging consumer, it might be more useful to profile an emerging consumer mindset – the attitudes, values and beliefs that they are adopting. Thought Leadership // Emerging Consumers 5756 by Divya Khanna Assistant Vice President & Regional Planning Director, South Asia, JWT divya.khanna@jwt.com Mapping the many mindsets and points of intersection Shedding the old attitudes in favor of the new The broadest narrative of emerging consumers is that of migration. This is not just in the literal sense from the village or small town to the city, but also in the metaphorical sense of migrating to newer attitudes and lifestyles. The first traditional belief shed is fatalism. Accepting your lot in life is passé and creating a better life is in. Like the crowds at the escalators in the big shiny malls, emerging consumers are eager to be on their way up, some jumping on and climbing quickly to speed things along, others hesitating and fumbling till they’re pushed forward. Yet all seem equally determined to progress and move forward. JWT is South Asia’s leading and most admired marketing communications agency that offers a truly integrated network across India, Sri Lanka and Nepal. JWT India provides powerful 360-degree total communication solutions to its clients from across its six offices in India. www.jwt.com TOP 50 Most Valuable Indian Brands 2014
  • 28. Part 2 // The India Top 50 - Thought Leadership Large population of young people drives rapid rise of social media Internet penetration in the country may not have crossed 16 percent of the population yet, but in absolute numbers, penetration works out to be more than three times the population of France. And within this colossal figure lies a demographic that demands the lion’s share of attention: The Millennial generation. With 56 percent of our population under the age of 30 (the median age of the population is 27), it’s no surprise that when surveyed about the top reasons for going online, 87 percent of netizens answered communication and 67 percent said social networking. We know that social media sites have achieved critical mass. Indian Millennials are the demographic fueling this engagement on social media today, Facebook being the primary site. The top Facebook pages in India today have accumulated millions of fans. The mobile phone sites, Vodafone and Tata Docomo, and the youth fashion brand Fastrack, each claim over three million Facebook fans. This phenomenon compels marketers to ask, how much do we really know about this Millennial demographic and its online activity? What’s next? Are we simply collecting crowds? With the decline of organic posts on Facebook, marketers are frantically blanketing social media with paid posts, praying that, like some heat- seeking missile, they’ll reach the intended targets. But it’s become apparent that even narrowing the focus according to interests and age groups isn’t enough. We saw the opportunity to deep dive into social media and mine for qualitative behavior discoveries. Thought Leadership // Millennials 58 by Upasana Roy Planning Director, Ogilvy, Mumbai upasana.roy@ogilvy.com 59 Our “Seven Faces of Facebook” study segments India’s most sought-after demographic Identifying types We went back to the basics: behind each target audience you are essentially talking to a real person. Our team conducted independent research to create a segmentation study of consumer profiles on Facebook in the age range of 18 to 24, which is the largest demographic on Facebook today. The research yielded seven distinct profiles of Millennials. Each profile is packed with data around interests, tonality, basic personality traits, and engagement triggers. We used the well-established psychometric assessment called Myers-Briggs Type Indicator to assign a personality type to each of the profiles. Let’s start with the Curator of Cool who is a trendsetter and tastemaker, sitting at the top of the social-ecosystem. Tech-savvy and opinionated, he knows what’s hot and what’s not. Then we found the Homebody who posts on Facebook, but only about family life. On to the Professor, a subject matter expert who believes in quality over quantity. Next, the trigger-happy Live Wire who lives, breathes, eats and sleeps online. We also found The Observer, who is on Facebook because everyone else is. The Observer literally has nothing to say. The Exhibitionist incessantly self promotes. And finally, the Wannabe tries really hard to fit in, but is just not there yet. Predicting behaviors We cross-referenced each profile with the type of content they shared on their timeline to create an extensive list of triggers. For example, the Exhibitionist might respond to customer shout- outs/acknowledgments, while the Professor is likely to respond to cool anecdotes/insider information about a brand. Our discoveries also help to engage audiences and create relevant content. Various trends uncovered in the course of this study made us take a renewed look at how we do things. We’d assumed that Facebook content was all in English, for example. The truth is that a lot of content is in local languages. So maybe it’s about time we start creating content in regional languages. We also dispelled the misconception that Indians don’t create content. We saw that – given the right platform and tools – they do. The explosion of apps like meme generators gave these people the platform they wanted. Their engagement suggests an opportunity for brands to create relevant content. It may not be surprising to learn that urban India is hooked on Facebook. But so is the rest of the subcontinent. When we imagine a Live Wire we immediately visualize kids from big cities fiddling away on their smart phones. Interestingly, our study shows that Millennials from small towns are equally engaged on Facebook. Essentially, what we are saying is that if the Millennials seem like one single faceless demographic cluster to you, it’s time to take a closer look. While some Millennials are Homebodies, others are living and breathing online. If some are Exhibitionists, others are clinging to the value of sharing good content. As marketers, it’s our responsibility to create content that excites each of the types and adds true value to our social campaigns. Ogilvy & Mather is a leading communication network in India. The company comprises strong offerings in: advertising, social media, direct marketing, data analytics, retail marketing, rural marketing, activation, public relations and healthcare. www.ogilvy.com TOP 50 Most Valuable Indian Brands 2014
  • 29. Part 2 // The India Top 50 - Thought Leadership Indian consumers may consider paying more for brands As Indian consumers climb the ladder of aspiration, the marketing communications targeted at them evolve from penetration strategies (use shampoo instead of shikakai, the traditional herbal hair cleaner) to consumption strategies (use shampoo three times a week) to premiumization strategies (choose the costlier shampoo). Indian marketers need to answer a fundamental question. What will make consumers believe that it’s worth paying more for their brands, products and services? The classic JWT brand ladder is a useful tool for answering this question. It provides possibilities for brand propositions that justify greater price premiums as consumers ascend the ladder. A brand proposition that justifies a premium for a product or service can be constructed with components such as these: Crafting the brand story • Who makes it: Extol the benefit of heritage or provenance. • What it’s made from: Focus on differentiating or quality ingredients. • How it’s made: Special production or sourcing can be important. Segmenting by audience • What it’s for: This is the rational benefit and may relate to occasion. • How it makes you feel: This is the emotional benefit, which can be critical. • What kind of person it helps you to be: This is about user imagery. • What values people associate with it: This is about aligning consumer and brand. Thought Leadership // Premiumization 60 by Mythili Chandrasekar Executive Planning Director & Senior Vice President, JWT mythili.chandrasekar@jwt.com 61 Who makes it, what it’s made from, how it’s made These components are about marketers crafting a story around the product philosophy. Examples include Chipotle, which emphasizes quality ingredients in a fast food Mexican restaurant setting, or Body Shop, known for ethical sourcing. Similarly, Fabindia markets quality traditional products sourced from local communities that benefit from the production. Brand philosophy also drives the entire genre of high end Ayurveda, herbal, natural products and services. Roam the shop shelves and you’ll find Organic India ghee, a kind of clarified butter made from tension free cows, charging more, and Keggs eggs charging more for being produced by free range poultry. Brands also derive strength from their place of origin, a factor that drives imported brands in India. Sourcing and quality production can justify a premium, as exemplified by Horlicks Gold, slow roasted, or baked namkeens, because these snack foods are usually fried. In fact, just think of a regular restaurant menu where you pay more depending on whether you are ordering a roti, naan, paratha, lachcha or rumali! It’s all bread. It’s all made from the same atta, or flour, just the cooking process and the form of the end product are different. Recasting ingredients creates premium possibilities for products such as mixed seed edible oils, double refined sugars, multigrain atta, bread and even water when it’s flavored or from a spring or other special source. And premium pricing isn’t just about adding ingredients. Even removing something – oil, fat, sodium, sugar, gluten – may let us charge more. Packaging alone may justify charging a premium by associating the pack design with other premium products or concepts. Marketers can borrow the packaging that signifies premium in another category to overcome consumer preconceptions in their own category. For example, a chips brand may borrow the premium design coding of an alcohol brand. In fact, even removal of packaging – like soaps have done – can produce a premium perception! What it is for, how it makes you feel, how it helps personal image, brand value This is the playing field of segmentation. Consumers are usually willing to pay more for products perceived as tailor made for the needs of their specific demographic group. Among the myriad examples of these groups are: mothers, expectant mothers, athletes, diabetics or others with particular dietary requirements. Key to this approach in India is crafting the benefit proposition. The benefit depends on the product category. In personal care the benefit could be about softness or shine, damage control or beauty enhancement. In paints the benefit could be about durability for exterior paint and texture for interior paint. Most important, the benefit needs to be clearly understood. Indian consumers look for rational explanations to justify their purchases. Occasions – day or night, casual or formal, office or party, regular or festival – are part of this benefit set. At the top end of this set are feelings that rich sensorial experiences evoke. Think of molten chocolate, extra cheesy pizzas, exotic ice creams, silken skin or walls, experiential décor or designer jewelry. User imagery also fits here. The aspiring CEO concerned about the image he or she projects is more likely to pay a premium for the apparel that provides a higher level of self assurance. Finally, the permission to charge a premium price also is related to brand value, the consumer’s perception of what the brand stands for, its philosophy beyond function, belief and badge beyond the rational. Brands that create a high level of desire in the minds of consumer have the opportunity to offer the costlier hotel, the costlier airline, the costlier chips or the costlier shampoo. Indian consumers will indeed climb their own ladders of aspiration. The question is, are our brand ladders ready to assist their assent? JWT is South Asia’s leading and most admired marketing communications agency that offers a truly integrated network across India, Sri Lanka and Nepal. JWT India provides powerful 360-degree total communication solutions to its clients from across its six offices in India. www.jwt.com But marketers need to justify the premium TOP 50 Most Valuable Indian Brands 2014
  • 30. Part 2 // The India Top 50 - Thought Leadership Complicated shopper behavior requires new brand strategies As shopping changes, the shopper’s experience becomes more complex and harder for retailers and brand owners to manage. In other words, the customers want the retailer to manage their “3Ps” (profile, personal history and preferences) and let them have access to it whenever and wherever they want it. This demands that retailers become more smart, agile and clever. Shopping decisions are now framed and managed by aggregators, deal sites, social media and social recommendations. Retailers are in a world where they serve as intermediaries. Finding new and imaginative ways to match shoppers’ desires for value, assurance, mental space, and quality will become priorities for all retailers. Success requires new thinking and fast action Indian retail is in a transition phase as digital technology disrupts shoppers’ expectations regarding how they interact with the world around them. Continued retail success requires rapidly adapting to the new wave and thinking beyond business as usual. For retailers to win in the new environment they must quickly take new initiatives such as these: • Reinvent convenience: Understand what each customer needs to make shopping easier, everything from checkout to ease of pick-up. • Redefine loyalty: Learn how the customer shops in a new non-linear way and engage at every point. • Re-imagine experience: It’s a key to differentiating the brand. • Reposition value: Price is only a starting point. Analytics help achieve these initiatives. The advent of Big Data, captured from the gamut of information available on the shoppers, has thrown open multiple opportunities for the retailers to monitor customer behaviors much more closely, and in real time. By mining Big Data, retailers have a stronger platform to manage existing relationships better and start new ones. Because the shopping process has been diversified, the store needs to extend itself in time and space, beyond a physical location or website, with the aid of technology. All of this new conversation is being shaped and enabled by a surge in personal, portable digital technologies, mostly smartphones, but also tablets. These are already widely used for shopper research and recommendation and are being used for purchase as well, especially by younger shoppers. This intersection between shoppers, retailers and technology has, for the first time, given shoppers the potential to access retailer’s management and information systems – if the retailer is willing to allow it. In the future, providing access will be a source of retail competitive advantage. Leveraging online and bricks and mortar advantages Online retailers can offer very disruptive, fast-moving price points to create more personalized and tailored propositions to woo shoppers. Shopping across all online platforms will be faster; it will be more aimed at the shopper’s personal preferences and choices. Bricks and mortar retailers, on the other hand, need to do things that digital competitors can’t match. They can convert floor space to zones where customers can experience products and offerings. Demonstrations and promotions in these experience zones will enable customers to touch and feel or taste the offering prior to purchase. Bricks and mortar retail businesses need to be backed by digital presence as well. This will involve rethinking strategies and making use of the digital presence beyond the walls of the store, and within them. Loyalty programs have to be redesigned and customized to suit preferences. Information flow has to be made more robust, transparent, and personalized. In this complex shopping environment, brands have their work cut out. Devising strategies to influence reluctant shoppers to try the product, capturing their feedback and addressing their concerns, is equally important. While marketers spend millions trying to convince new customers to try their brands, they often end up ignoring the brand loyalists. Word-of-mouth publicity, and advocacy by these loyal customers, can help brands and retailers gain much-needed momentum. A complicated and worldwide shopping phenomenon is rapidly finding expression in India in ways that will impact Indian retailers and any brand sold at retail. The combination of digital technologies, consumer expectations and socio-economic change is transforming the way we shop and what it means for suppliers, manufacturers and retailers alike. The balance of power has shifted in favor of the consumer who is now more in control than ever. Retailers, on the other hand, are left trying to understand the consumer mindset in this new omni-channel world; how, when, why and where consumers buy, what influences and triggers the purchase decision. Retailers need to know what channels and media consumers are likely to use, and retailers also need to predict consumer demand. Indian retailers and brands can get in front of these changes, which are inevitable because consumerism in India is experiencing unprecedented growth, driven by favorable demographics: a young and working population, rising income levels, urbanization and growing brand orientation. This growth drives the rapid expansion of Indian retailing, a US$ 520 billion category expected to expand at a CAGR (Compounded Annual Growth Rate) of 13 percent to reach around US$ 950 billion by 2018. Meanwhile, the modern retail sector is developing rapidly and should reach 10 percent of the retail market by 2018. The challenge is to devise a model that will help retailers and brands sharpen up their strategies in this challenging and rapidly changing environment. Purchase path becomes more complicated With the emergence of modern Indian retailing, shopping and shoppers are becoming more complicated. The path to purchase no longer is a linear progression that goes from awareness to consideration, preference, purchase, loyalty and, finally, advocacy. Rather, shoppers move much more randomly among a complex combination of physical and virtual touch points that involve search, research and interaction with both the seller and peers. Thought Leadership // Retail Revolution 6362 by Rajan Zachariah Country Head, Smollan India ranjan.zachariah@smollan.co.in Retail winners will perfect omni-channel presence Founded in 1931 by rugby Springbok Fred Smollan, the Smollan Group opened its doors initially as a regional South African based sales agency. With its pedigree in field marketing, the Group has evolved to offer a diverse range of outsourced marketing services to multiple channels across a broad spectrum of industries. www.smollan.co.za TOP 50 Most Valuable Indian Brands 2014
  • 31. Part 2 // The India Top 50 - Thought Leadership New economic development initiatives may narrow India’s rural-urban social gap Access to information aligns rural and urban aspirations Over the last 10-to-15 years, the proliferation of cable television has democratized access to information at an unprecedented scale. In the words of Indian writer Pico Iyer, “Today the aspirations of rural India are not very different from those of urban India as both are consuming the same content. From cars, to fashion accessories, to lifestyles, they have similar desires.” Both rural and urban Indians are exposed to the same popular culture simultaneously. The aspirations of rural Indians are in sync with the larger reality that mainstream India consumes. Brands must communicate with rural Indians in the same language they use for the urban population. Talking to people from rural India as if they’re “small-towners” is patronizing and a business mistake. People seek empowerment not social welfare The preconception about rural India is that it is entrenched in socio-economic inequality and that economic progress depends on quotas for political representation, and government largesse to provide for basic needs like food and shelter. However, the biggest learning from the recent elections is that this social welfare model has irreversibly changed. The rural populace isn’t waiting for mere entitlements. Instead these people are looking for opportunities and access. They want to be part of the development juggernaut, unleashing their potential to join the larger India growth story. Brands need to tap this unleashed individual agency and offer a platform for its expression. Brand communication needs to strike a balance, recognizing this emerging individuality within the context of the ongoing collective Indian identity. Before, time seemed endless; today, time is money The advent of mobile devices has disrupted the idyllic, laidback, self-sustained village ecosystem. Mobile devices have altered the flow of time, punctuating daily life with new moments for personal and business life. People may use their mobile to chat with a friend or to learn the prevailing rates of onions in the wholesale market. Mobile devices also changed the local mentality as people became aware that they were perpetually accessible and answerable to others. A new sense of urgency and accountability accompanied this change. Not long ago time seemed like an endless commodity. Today, time is money. When telecom brands advertise and promote per second billing, they assign time a value. Brands need to ride this growing desire of rural inhabitants to make things happen, to be purposeful and to transform their immediate surroundings. Rural economies have been galvanized by the sheer possibilities the new economy has to offer. With technological and infrastructure development, a lot of people at the margins have started finding their voice in the mainstream. They’re accessing modernity and steadily bridging the gap between the rural and the urban. Brands need to locate themselves in the individualized, opportunity-seeking worldview of the rural consumers who seek a better life, a life equal to that of their urban compatriots. The recent national election results caused not just a disruption, but rather a tectonic shift in how social life is being reorganized in India. Until now the rural and urban economies operated in almost different time zones and eras. Social life in rural and urban India reflected deeply rooted systemic and structural differences. In the hinterlands, where caste and class privileges determine and regulate a fixed social trajectory, any outside influence has been treated as an intrusion and typically faces a lot of resistance. The victory of the Bharatiya Janata Party (BJP), and its focus on vikas, or economic development, suggests that attitudes in rural India are changing. These changes, all of which impact brands, include: The rural Indian economy is no longer dominated by farming In rural India today, 66 percent of income is non-farm. Despite the popular misconception that farming continues to dominate the economy, India’s rural economy today encompasses a range of non-crop agricultural activities, manufacturing activities, trading, shop keeping and professional services. Migrant workers drive the rural economy and are in a sense its brand ambassadors. Brands need to acknowledge this evolving reality rather than limiting their audience to just farmers. Thought Leadership // Rural Mindset 6564 by Soumitra Patnekar Planning Director, Grey Worldwide soumitra.patnekar@grey.com Brands need to understand the changing opportunity Grey is a global advertising network. Under the banner of “Famously Effective Since 1917,” the agency serves a blue-chip client roster of many of the world’s best known companies. www.grey.com TOP 50 Most Valuable Indian Brands 2014
  • 32. Part 2 // The India Top 50 - Thought Leadership Value is the new smart, linking quality and price Budget used to mean cheap. Expensive used to mean classy. The world was divided into cheapskates and spendthrifts. But the old definitions no longer apply. Budget or value is the new smart. (And expensive is the new stupid.) Budget spells not only good value for money, but also pretty good quality. Words like accessible, experiential, affordable and hip describe the new value. The new value consumer rejects excess in favor of responsible spending. Modern India’s enormous geographic, demographic and economic shifts drove this revised perception of value. It’s apparent everywhere: • In the long queues during holiday time, at the budget airline counters, where evidently the upper crust, who travel premium class on business, find it perfectly acceptable to travel budget class on vacation. • With the woman who has the savvy to wait and buy the latest IT item after it’s on sale, or the teen owner of the trendy phone who figured a way to buy it cheaper from the US or Singapore or online from Flipkart. • From street vendors selling look-alike designer label merchandise almost as soon as designers produce the originals, and from fashion forward street customers looking for bargains. Above all, value means smartness, experiential savvy and cultural cool. There is a new language and set of meanings around value. We call them the five new smart codes of value. Opportunity in the smart name As the mass market evolves it requires new names to describe the changes. These names include: the value segment, the strivers, the aspirers, the emerging markets, or even masstige. These names are laced with opportunity and panache earlier reserved for the premium end of the market. The term value now signals inclusiveness and respect, not just low price. The importance of smart timing Among the many factors that drive purchasing today, timing predominates. Consumers and marketers are engaged in a game played in the world of buzz and WOM (Word of Mouth). It’s a world when certain days or weeks, magical time zones, combined with incentives, persuade consumers to spend. The game includes whatever incentives work, such as 25 percent or even 70 percent off, free add-ons, cheaper flights on weekdays and for off- season holidays, frequent flyer points, coupons and interest-free loans. But what works today may not work tomorrow because in value, as in humor, timing is everything. The smartness of playing one offer against another A generation that just a few decades ago first tasted the sweet life of credit has evolved to a more savvy thrill. It’s learned that playing one option against another provides the satisfaction of winning a superior deal. Comparison-shopping reigns! Excel sheets, charts and even apps that help make comparisons are everywhere – from insurance packages and hotel rates to telecom options and employment offers. The catch phrase of this buyer’s market is, Kitna doge? How much will you give? Squeezing out the best buy is the new normal. Service providers, vendors, sales agents, loan officers, even long-time business partners or potential employers are not exceptions. Being responsible and understated is now smart The benefits of value go beyond the transactional and include the relational or emotional. Post- recession prudence has made value conscious thinking not just permissible but almost aspirational and responsible. Down trading, down sizing, down traveling, down housing, down anything has acquired new age minimalist cachet and approval. Value is associated with responsibility, focus, and even social sensitivity. Bling and showing off has made way for more muted, understated purchase behavior. Package lunches, group discounts, cloth carry bags, local instead of foreign holidays, redemption coupons all point to the responsibility associated with being value conscious. Smart, accessible design leads the way Value consciousness has unleashed a burst of creative design solutions. There is a promising segment, across categories, which focuses on providing premium yet accessible quality. It celebrates the good life – for all. Inclusive, edgy and driving volume, this segment attracts the hottest talent, significant investor support and the most innovative designs. Whether in hospitality, home décor, travel, fashion, personal care, technology, music or the environment, accessible design solutions lead the way. The new meaning of value is a fascinating shift. Because it operates at several levels, it has set in motion a virtuous cycle. This follows from a sense of entitlement, brought on via exposure and experience. Once consumers have tasted a “Happy Meal” they feel entitled to similar happy experiences in other purchases. Experience raises expectations and entitlement and it sharpens the skills needed to fulfill new aspirations. Thought Leadership // Value 66 by Shaziya Khan Executive Planning Director, JWT shaziya.khan@jwt.com 67 1 2 3 4 5 Across the economy, shoppers rich and poor seek value JWT is South Asia’s leading and most admired marketing communications agency that offers a truly integrated network across India, Sri Lanka and Nepal. JWT India provides powerful 360-degree total communication solutions to its clients from across its six offices in India. www.jwt.com TOP 50 Most Valuable Indian Brands 2014
  • 33. Part 3 The India Top
  • 34. 70 71 Part 3 // The India Top 50 - The Ranking Brand Brand Value (US$ Mil.) Brand Contribution 1 9,425 4 Banks 2 8,217 2 Telecoms 3 6,828 5 Banks 4 3,536 4 Banks 5 3,034 3 Automobiles 6 2,812 4 Paints 7 2,164 2 Automobiles 8 1,882 1 Telecoms 9 1,721 1 Banks 10 1,636 1 Telecoms 11 1,510 2 Automobiles 12 1,498 3 Motor Fuel 13 1,395 4 Alcohol Brand Brand Value (US$ Mil.) Brand Contribution 27 754 3 Food and Dairy 28 742 3 Personal Care 29 641 3 Soft Drinks 30 570 3 Banks 31 569 1 Automobiles 32 552 2 Alcohol 33 539 3 Motor Fuel 34 520 3 Personal Care 35 511 3 Personal Care 36 491 3 Personal Care 37 451 5 Paints 38 450 5 Food and Dairy Brand Brand Value (US$ Mil.) Brand Contribution 39 416 4 Banks 40 393 2 Motor Fuel 41 372 3 Insurance 42 367 2 Insurance 43 328 3 Food and Dairy 44 302 4 Home Care 45 299 1 Banks 46 297 5 Personal Care 47 273 2 Banks 48 236 2 Personal Care 49 219 4 Home Care 50 208 5 Soft Drinks BrandZ™ Top 50 Most Valuable Indian Brands 2014 *The Brand Value of Indian Oil, HP and Bharat Petroleum includes only their retail business Source: Millward Brown (including data from BrandZTM and Bloomberg) Brand Contribution measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 highest TOP 50 Most Valuable Indian Brands 2014 Brand Brand Value (US$ Mil.) Brand Contribution 14 1,345 3 Alcohol 15 1,264 5 Lubricants 16 1,228 2 Food and Dairy 17 1,196 2 Automobiles 18 1,127 4 Food and Dairy 19 1,059 3 Bank 20 1,018 4 Food and Dairy 21 982 3 Home Care 22 907 1 Personal Care 23 880 3 Jewelry 24 879 4 Food and Dairy 25 778 5 Home Care 26 764 2 Banks
  • 35. 72 73 Part 3 // The India Top 50 - Category Summaries Changing market dynamics shape brand development Alcohol Brands market to women and new young drinkers India is a key focus for global spirits producers seeking sales growth opportunities as their core markets mature. International players are attracted to the substantial size of the Indian market, with about 485 million Indians currently of drinking age. In addition, per capita alcohol consumption is relatively low, but increasing by 10 to 15 percent annually, according to some predictions, with the number of drinkers expected to increase by 150 million over the next five years. Factors driving this growth include the increased purchasing power of the middle class, the growing acceptance of alcohol consumption, and the greater financial and social independence of Indian women. The regulatory environment moderates this growth, however, prohibiting liquor advertising. Restrictions have forced marketers to respond with clever digital campaigns, stealth ads for soft drink mixers branded the same as the liquor, and innovative packaging aimed at new young drinkers. And brands have introduced low-alcohol products to reach women drinkers. Category Summaries The alcohol category includes spirits and beer. The automobiles category includes cars and motorcycles. Automobiles Rebounding car market is one of world’s largest Driven by the size of the market, low penetration, poor public transportation and the car ownership desires of the upwardly mobile and recently affluent, India’s car industry grew rapidly during the past decade and today is one of the world’s largest and most dynamic. The market’s transformation usually is dated to 1982, and the introduction of the Maruti Suzuki 800, the first car designed for middle class aspirations and budgets. Today, the market leaders include a mix of Indian, international and joint venture brands, such as Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors and Toyota. Many brands offer a full range of passenger cars, SUVs, vans, and commercial vehicles, and sometimes motorcycles, although two- and three- wheel vehicle makers also include brand leaders such as Bajaj Auto, Hero MotoCorp, and TVS Motor Company. The Indian automobile category, which fluctuates with the health of the national economy, is about to experience a growth surge after two stagnant years, according to most predictions.
  • 36. 74 75 Part 3 // The India Top 50 - Category Summaries Home Care Normally staid category draws interest in India Typically a fairly staid category, home care products in India are experiencing a surge of interest. That’s mostly because, as purchasing power rises, more households own washers and dryers and have the disposable income necessary for value-added products. Growing awareness and concern about health and hygiene also is expected to drive category sales and product innovation. At the same time, both rural and urban consumers, regardless of income, remain concerned about value for money. Innovation will need to be accompanied by affordability. The home care category consists predominantly of dishwashing bars and liquids, detergents, and household supplies. It developed over the past century as MNCs (Multinational Corporations), such as Hindustan Unilever and Proctor & Gamble, introduced, new products and educated users about benefits, which often included added convenience. Jewelry Sector shifts to branded mass market merchandise Jewelry is one of the fastest growing sectors of India’s economy, driven by increasing demand and the ongoing transformation of the industry from a fragmented collection of family-run businesses to a more modern retail structure where large companies produce branded merchandise for the mass market. The Indian government is expected relax restrictions on the import of gold, which traditionally has been an investment medium in India. Intended primarily to curb excessively smuggling, the government action should lower manufacturing costs, potentially making gold jewelry more affordable in the Indian market and more competitive for export. India’s main jewelry specialties are gold, which has cultural and religious resonance, and diamonds. One of the world’s largest diamond exchanges is located in Mumbai. Insurance Penetration level low in growing category India’s insurance business has grown rapidly since government reform opened the sector to private companies in 2000. Liberalization recognized the potential need for insurance products by an expanding middle class concerned with protecting recently acquired assets. Penetration, still relatively low, is expected to increase because of steady demand and further relaxation of government regulations, which would permit a higher level of Foreign Direct Investment and also expand the role of banks as insurance providers for multiple insurance brands. Meanwhile, operators in all sectors – property and casualty, life, and health – are improving their distribution methods, increasing online presence and attempting to analyze their client data to better anticipate needs and improve sales and retention. A total of 52 insurance companies operate in India, more than half in life insurance, according to India’s Insurance Regulatory and Development Authority. Dominated by the state-owed Life Insurance Corporation of India, the sector also includes private and joint venture operators such as HDFC Life, ICICI Prudential, SBI Life, and Bajaj Allianz. Food and Dairy Tastes evolve in world’s second largest market India is the world’s second largest producer of food after China. Food store shelves are filled with local brands, often made by divisions of FMCG conglomerates owned by Indian companies or MNCs (Multinational Corporations). Nestlé India introduced Maggi, an instant noodle brand that promoted both taste and health, in 1982. Today, Indian consumers consider Maggi an Indian brand. An Indian brand, the dairy cooperative Amul formed in 1946, just prior to the country’s independence, created the country’s modern dairy business and a direct link between dairy producers and consumers. Today Amul produces a wide range of dairy products. Increasing income and urbanization are triggering a rapid change in food consumption patterns and variety. As more affluent families eat out more often, they expand their food repertoires. With more women in the workplace, the need for convenience has also introduced new food options, such as pasta sauces and packaged soups. And in the world’s largest vegetarian country, the number of non- vegetarians is growing. Rising demand for variety and quality creates opportunities for the food processing and agriculture industries. Fully realizing these opportunities will require adding production facilities and improving the roads and other infrastructure that links supply in rural regions with the demand in urban centers. Ecommerce Rapid growth rate expected to increase India’s booming ecommerce sector has a lot of growing room. Although India ranks third in number of Internet users, after the US and China, Internet penetration remains relatively low. The number of Internet users totals around 213 million, according to the Internet and Mobile Association of India (IAMAI). That means only about 15 percent of Indians are online, compared with half the population in China, according to the World Bank. The ecommerce category reached around $13 billion in revenue in 2013, and is expected to grow rapidly as more Indians shop online and more retailers compete for their spending, according to IAMAI. Leading those retailers are Indian brands such as the online mall Flipkart, started by former Amazon employees, and Snapdeal, with about 20 million users, which hopes to replicate the success of China’s Alibaba. Amazon entered India in 2012. Two years later, just days after Flipkart raised $1 billion in funding, Amazon announced plans to invest $2 billion in India. Walmart plans to open an ecommerce site in India during 2014. About one-third of ecommerce sales in India happen over mobile phones and that proportion is expected to increase. Category Summaries The banks category includes public sector and private banks. The ecommerce category is growing rapidly, but no brands appear yet in the BrandZ™ India Top 50 because none are publicly traded, an eligibility criterion. The food and dairy category includes cooking oil, biscuits, health food drinks, instant food, and dairy and milk products. The home care category includes laundry products and household supplies like mosquito repellents. The insurance category includes companies offering life, property and casualty, and health insurance products. The jewelry category includes jewelry retailers. Banks Banks add services and more branches The banks category grew rapidly over the past decade, driven by the strength of the Indian economy and the relaxation of government regulation, which encouraged more competition. Banking in India today includes SOEs (State Owned Enterprises) and private institutions, both Indian and international. Three of the top four most valuable Indian brands are banks. HDFC Bank, one of India’s first private banks, established in 1994, leads the ranking. Ranked third, State Bank of India formed the brand in 1955, prior to liberalization, although its earliest predecessor bank opened in 1806. ICICI Bank, which started in 1994, ranks fourth. Banks are improving services, adding technology and opening new branches to serve the affluent middle class. They’re also expanding their presence in rural and semi-rural areas to serve the unbanked, driven by the financial inclusion policies of the Reserve Bank of India, the nation’s central bank. A set of new regulations may soon increase the number of foreign banks operating in India and also impose standards to protect India’s banks from the kind of systemic problems that fomented the global financial crisis in 2008. Modern banking in India began in the eighteenth century. Following India’s independence, in 1947, private banks functioned under government regulation. The government nationalized most banks in 1969, but relaxed some control with liberalization that started in 1992. TOP 50 Most Valuable Indian Brands 2014
  • 37. 76 Part 3 // The India Top 50 - Category Summaries 77 Mobile Phones Many brands compete for smartphone growth India ranks second after China in number of mobile phones. Of India’s roughly 907 million wireless subscribers, perhaps only 10 percent own smart phones. However, driven by the interest in data consumption, and aggressive marketing by many phone brands, smartphones are the fastest- growing segment of the mobile phone market. The Indian smart phone market includes many strong international brands, such as Samsung, Apple, Nokia and LG, competing with a range of models, including their least expensive. Among the Indian mobile phone brands are: Micromax, Karbonn, Xolo, and Lava. Having entered the market as low-price imitators of multinational brands, the India brands have achieved credibility, advertising features and emotional appeal as well as price, and implying their parity with global brands by engaging well-known brand ambassadors, like the actor Hugh Jackman, who has represented Micromax. This more international image helps some of these brands build their export businesses, which are focused particularly on Southeast Asia, Russia and Africa. Many Chinese handset brands have entered India and sell affordable smartphones. These brands include: Gionee, Lenovo, OPPO, Huawei, ZTE and Konka. In overall mobile sales, including feature phones, Samsung again enjoys a strong presence, along with Nokia, which is expected to benefit from investment by corporate parent Microsoft. Paints Middle class aspirations fuel steady expansion The decorative paints industry continues to grow by double digits, fueled by middle class aspirations, real estate expansion, and higher price points as paint companies introduce more premium products. To further stimulate demand, paint companies have introduced initiatives to both inspire customers with new décor possibilities and instill confidence that they can complete more complicated home improvement projects. Asian Paints recently opened retail outlets called the Colour Ideas Store, showrooms where designers offer free consultation. Berger Paints introduced Lewis Berger Design Stories, a collection of home decoration ideas presented as full solutions with professional advice. Other key industry players include Kansai Nerolac, a subsidiary of a Japanese company, present in India since 1920; Shalimar Paints, formed in 1902; and Dulux, a subsidiary of Akzo Nobel, the global paint and coatings company based in the Netherlands. Category Summaries The motor fuel and lubricants category includes brands that make and market lubricants, and the retail businesses of oil and gas companies. The mobile phones category is growing rapidly, but no brands appear yet in the BrandZ™ India Top 50. The paints category includes makers and retailers of decorative paint. Motor Fuel and Lubricants India imports crude oil and exports refined products India ranks fourth among nations in total annual oil consumption. It remains dependent on imported crude oil to meet its energy needs, but has surplus refining capacity, making India an exporter of petroleum products. Two SOEs (State Owned Enterprises) lead the industry: Oil and Natural Gas Corporation (ONGC) primarily focuses on oil exploration and production; and Indian Oil Corporation (IOC) operates most of the Indian refineries that produce petroleum products. The Indian government opened these companies to partial public ownership when it liberalized the economy in 1991. The Indian government still holds a majority stake in the companies. Price controls on the public sector companies impacts their results. Since 1991, independent oil and gas companies also operate in India. Following further relaxation of regulations, the Indian government allowed 100 percent Foreign Direct Investment in many industry segments. Stricter standards apply to private partnerships with SOEs. Over 1,200 Indian and international companies market petroleum and gas products. Most are small or medium size Indian firms. Three public sector firms dominate manufacturing: Bharat Petroleum, Indian Oil Corporation and Hindustan Petroleum. Foreign firms such as Shell, ExxonMobil, Elf, Castrol and Veedol also enjoy a presence in the Indian lubricants market. Most of these companies exist on their own, through wholly owned subsidiaries, which are companies incorporated in India. Castrol leads the automotive lubricants sector, followed by Servo, the Indian Oil brand.
  • 38. Telecoms Relatively low penetration points to growth opportunity India is the world’s second largest telecom market after China, with a total of around 935 million subscribers as of mid 2014, according to the Telecom Regulatory Authority of India (TRAI). Landline telephone subscribers totaled only 28.5 million in 2000. Still one of the fastest growing telecom markets, the number of telecom subscribers experienced a 35 percent compound annual growth rate (CAGR) between 2001 and 2011, according to TRAI. Only about 75 of every 100 Indian adults is a phone subscriber, however, a high level but less than the density of China or Brazil, and below the world average, indicating strong prospects for future growth. The vast majority of the telephone subscriptions, 907 million, are for wireless service. Urban density is higher, indicating that many individuals have multiple subscriptions, in contrast to the rural areas where density is rising but the opportunity remains large. In the decade of 2002 to 2012, rural density increased from 1.2 million to 38.5 million, according to TRAI. Private players dominate over 90 percent of the telecom market. They include: Bharti Airtel, Vodafone, Idea, Reliance Communications, Aircel, and Tata Docomo. Some of these brands are also leading providers of broadband service. All are attempting to increase revenue with data consumption, competitive rate plans, and new customer services. Soft Drinks Low consumption levels signals large opportunity The Indian soft drink market includes a range of non- alcoholic beverages, including colas, juices, energy drinks, tea and coffee. Similar to the dynamics shaping the category in developed markets, health concerns are moderating the growth of CSDs (Carbonated Soft Drinks). In contrast to more developed markets, however, per capita consumption remains relatively low, and distribution is fragmented, with much of it going through the traditional retail trade. Global leaders Coca-Cola and PepsiCo, and several Indian brand leaders compete, introducing new products to stimulate demand. India is one of the markets where the Pepsi brand leads the Coke brand, although one of the country’s favorite drinks, Thums Up, is an Indian cola brand that Coke purchased in 1993. Pepsi entered India in 1989. 78 79 Category Summaries The personal care category includes hair care, hair oil, female beauty, male grooming, oral care, and personal wash. The soft drinks category includes carbonated drinks, juices, tea and coffee. The telecoms category includes brands that provide landline, cellular and broadband services. Personal Care Rising income, changing attitudes propel sales Personal care enjoys healthy growth in India, driven by cultural regard for ideals of beauty, increasing disposable income, rising consumer demand in rural areas, and changing male grooming attitudes, which opens new marketing opportunities. The category includes a wide array of products, such as hair care, skin care, and oral care. Among the key players are: Hindustan Unilever, Procter & Gamble and its Gillette brand, as well as the Indian brand, Dabur, which specializes in health and wellbeing. Companies continue to introduce products specifically designed for the needs of Indian consumers and often market with an emphasis on beauty as a quality that can be enhanced, but which emanates within the person. Some of the leading Indian brands, already present in various parts of Asia and Africa, are looking to strengthen their position in those markets, while others are looking to enter them. TOP 50 Most Valuable Indian Brands 2014
  • 39. 8180 Part 3 // The India Top 50 - Brand Profiles Rapidly growing HDFC Bank has created a distribution network of over 3,400 bank branches and 11,250 ATMs in more than 2,100 cities across India. The bank offers a wide product range in wholesale banking, retail banking, and treasury. The bank’s customers, numbering over 28 million, primarily live in rural and semi-rural areas, positioning HDFC Bank to grow as these regions develop economically. To reach deeper into rural India, the bank opens mini-branches staffed by only a couple of people. And to keep pace with the younger, tech-savvy generation and make banking easier, HDFC Bank introduced mobile apps that support diverse operating systems. These apps enable HDFC Bank customers to stay up-to-date about their account activities and pay bills, book tickets, and transfer funds via smart phones. As part of its Corporate Social Responsibility activities, the bank has initiated literacy, education, and skills- training programs across rural India. Notable among these are the Sustainable Livelihood Initiative, an endeavor to empower rural women by providing them with access to financing and occupational training. Established in 1994, following India’s financial reform, HDFC Bank was among the first private banks approved by the Reserve Bank of India, the country’s central bank. India’s Housing Development Financial Corporation (HDFC), a financial company started in 1977, was instrumental in setting up HDFC Bank and remains a substantial stakeholder. Company HDFC Bank Brand Value US$ 9.4 Billion Headquarter City Mumbai Industry Banks Year Formed 1994 Private bank expands, mostly in rural India HDFC Bank TOP 50 Most Valuable Indian Brands 2014
  • 40. Part 3 // The India Top 50 - Brand Profiles Airtel is India’s leading wireless telecommunications brand, with operations in 20 countries. The company serves almost 200 million mobile customers in India and over 75 million abroad. It is expanding its 3G and 4G networks. In addition to mobile, the brand operates in two other consumer businesses: telemedia, including high-speed broadband, and digital TV. Airtel business serves the telecom needs of business and government customers. And the brand is also India’s leading provider of telecom tower infrastructure. Leveraging its mobile platform and customer reach, Airtel offers a mobile wallet called Airtel Money, in India and 17 African countries. Airtel markets itself as a brand that connects people. Its taglines include “Power to Keep in Touch” and “Live Every Moment.” Oscar-winning Indian musician A.R. Rehman composed the brand’s popular ad jingle. Airtel is part of Bharti Enterprises, a leading Indian business group with interests that include agriculture, financial services, retail, and manufacturing. The brand also is part of the Bharti Foundation, which works through public–private partnerships to improve education. Company Bharti Airtel Limited Brand Value US$ 8.2 Billion Headquarter City New Delhi Industry Telecoms Year Formed 1995 Leading mobile provider present across Africa Airtel 8382 TOP 50 Most Valuable Indian Brands 2014
  • 41. 8584 Part 3 // The India Top 50 - Brand Profiles India’s largest commercial bank, State Bank of India is a government-owned institution that operates almost 16,000 domestic branches, more than 43,000 ATMs, and 190 international branches across 36 countries. The bank’s businesses include consumer and corporate banking, investment banking, insurance, wealth management and credit cards. Formed in its current incarnation around 70 years ago to fund rural economic development, the bank’s heritage dates to the early nineteenth century. Among its forward-looking initiatives, the bank introduced OnlineSBI, an Internet banking portal to make banking convenient for its customers, enabling them to carry out banking activities, such as money transfer and bill payment, online. The bank was established in 1806 as Bank of Calcutta, which was later merged along with two other banks to form Imperial Bank of India. The Indian government renamed the Imperial Bank of India the State Bank of India in 1955. Company State Bank of India Brand Value US$ 6.8 Billion Headquarter City Mumbai Industry Banks Year Formed 1955 Government bank offers range of services State Bank of India TOP 50 Most Valuable Indian Brands 2014
  • 42. Part 3 // The India Top 50 - Brand Profiles India’s second largest bank in assets, ICICI Bank offers a wide range of banking products and financial services, including retail banking, corporate banking, insurance, and asset management. ICICI Bank delivers its products and services through a multi- channel network of branches, ATMs, call centers, Internet banking, and mobile banking. The bank operates over 2,790 branches and 10,020 ATMs. To keep pace with the online generation, ICICI Bank has been integrating social media with its Internet banking platforms. ICICI Bank recently launched a Facebook app. Called Pockets by ICICI Bank, it enables customers to conduct banking transactions on the social media site. In collaboration with Vodafone, ICICI Bank launched M-Pesa, for mobile money transfers and payments. The bank is expanding its reach to rural and semi-urban markets. ICICI Bank also funds the ICICI Foundation, which focuses primarily on improving elementary education, healthcare, and sustainable livelihoods for rural families. ICICI Bank is present in 19 countries. The bank was established in 1994 by ICICI Limited, which was incorporated in 1955 by the World Bank, the government of India, and representatives of Indian industry to provide financing for commercial projects in India. Company ICICI Bank Brand Value US$ 3.5 Billion Headquarter City Mumbai Industry Banks Year Formed 1994  Internet and social media complement branches ICICI Bank 8786 TOP 50 Most Valuable Indian Brands 2014
  • 43. 8988 Part 3 // The India Top 50 - Brand Profiles Bajaj Auto Limited is a leading manufacturer and marketer of motor scooters, motorcycles and commercial three-wheel vehicles also known as auto-rickshaws. Established in 1945 as a marketer of imported vehicles, the brand launched its manufacturing business in 1959. Today, Bajaj exports to 57 countries, with Africa generating almost half of international sales. The brand sold over 3.7 million motorcycles in India and abroad in 2013. It operates assembly plants in Africa, Asia and Latin America. Bajaj manufactures popular Indian brands like Pulsar and Avenger and also serves as the India distributor for Kawasaki, the Japanese brand, with which it also has a distribution agreement in Indonesia. Bajaj owns a major stake in the Austrian motorcycle brand KTM. Headquartered in Pune, Bajaj Auto Limited has three plants in India, located in the states of Maharashtra and Uttaranchal. The Bajaj Group, an Indian conglomerate, owns the brand. The Group’s holdings span diverse businesses including sugar, power, and infrastructure development. Bajaj Auto Limited is listed on the Indian and Bombay Stock Exchanges. Company Bajaj Auto Limited Brand Value US$ 3.0 Billion Headquarter City Pune Industry Automobiles Year Brand Formed 1959 Brand markets vehicles in India and worldwide Bajaj Auto TOP 50 Most Valuable Indian Brands 2014
  • 44. Part 3 // The India Top 50 - Brand Profiles India’s largest paint company, Asian Paints operates 23 manufacturing plants in 17 countries, in the Middle East, the Caribbean, South Pacific, and Asia. The brand’s offering includes decorative and industrial coatings and chemicals. The consumer business attempts to motivate consumers to undertake home improvement projects and stresses the brand’s home décor credentials. Asian Paints recently opened retail outlets called the Colour Ideas Store, showrooms where designers offer free consultation. Famous Indian cartoonist R.K. Laxman created the widely recognized Asian Paints mascot, a man with a paintbrush. Asian Paints introduced a new logo a couple years ago, a ribbon of color intended to represent the easy flow of paint and inspire consumer creativity. The brand tagline, “Every house has a story to tell,” encourages consumers to decorate. Asian Paints engages in a variety of social responsibility initiatives, including helping to improve the infrastructure of primary schools and promoting disease prevention with better health and hygiene practices. Headquartered in Mumbai, Asian Paints is listed on the National and Bombay Stock Exchanges. Company Asian Paints Limited Brand Value US$ 2.8 Billion Headquarter City Mumbai Industry Paints Year Formed 1942 Paint brand attempts to inspire with color Asian Paints 9190 TOP 50 Most Valuable Indian Brands 2014
  • 45. 9392 Part 3 // The India Top 50 - Brand Profiles The Indian motorcycle and scooter brand Hero MotoCorp is the world’s largest two-wheeler producer. The company manufactures at three Indian facilities and operates a sales and service network of over 6,000 outlets located throughout the country. The brand is adding production and R&D capacity in India and also looking abroad for growth, starting with Nepal, Sri Lanka and Central America. While focusing on its core customer group, affluent young and middle-age men, the brand also markets to women with a recently updated sub-brand called Pleasure. The brand tagline, “We have a hero inside us,” articulates the brand’s emotional appeal, that it helps people achieve their potential. Brand ambassador, Indian actor Ranbir Kapoor, has appeared riding a Hero motorcycle in commercials with action adventure themes. The brand associates with sports, including hockey and golf. It has sponsored events with the International Cricket Council. Hero MotoCorp evolved from Hero Cycles, a bicycle manufacturer that merged with Japan’s automobile manufacturer, Honda, in 1984, to form Hero Honda. The company was renamed Hero MotoCorp in 2011, the year after Honda left the joint venture. Hero MotoCorp is a public company listed on India’s National and Bombay Stock Exchanges. Company Hero MotoCorp Limited Brand Value US$ 2.2 Billion Headquarter City New Delhi Industry Automobiles Year Formed 1984 Major motorcycle brand gears up for global growth Hero TOP 50 Most Valuable Indian Brands 2014
  • 46. Part 3 // The India Top 50 - Brand Profiles Idea Cellular is India’s third largest mobile operator by revenue. The brand provides over 135 million subscribers with 2G and 3G service. It’s present across most of India and is expanding into several new territories including West Bengal, Kolkata and the Northeast. Determined to continue its steady growth in a competitive but consolidating industry, Idea raised over $500 million from the financial markets during 2014, to invest in adding spectrum and building infrastructure. To support its national presence and raise visibility, Idea introduced an ad campaign called, “Idea rings all India.” An earlier ad campaign had promoted progressive social messages with taglines like, “Education for all.” Idea Cellular was incorporated as Birla Communications Limited in 1995. After several corporate hook-ups involving Tata Cellular and AT&T Wireless, the company was renamed Idea Cellular Limited in 2002. It is owned by the Aditya Birla Group, an Indian multinational conglomerate with businesses in various sectors such as telecom, chemicals, retail, and apparel. Idea is listed on India’s National and Bombay Stock Exchanges. Company Idea Cellular Brand Value US$ 1.9 Billion Headquarter City Mumbai Industry Telecoms Year Formed 2002 Brand promotes national presence IDEA 9594 TOP 50 Most Valuable Indian Brands 2014
  • 47. 9796 Part 3 // The India Top 50 - Brand Profiles One of India’s largest banks, Kotak Mahindra Bank offers a complete range of financial services, including consumer and commercial banking, asset management, investment, and life insurance. The bank is rapidly expanding throughout India, providing access to financial service to more of the population, which it views as under-banked. Over the past four years, Kotak Mahindra Bank doubled its number of branches to 600 and increased ATMs to over 1,000. Other recent initiatives to serve more of the population with financial services include Kotak Samridhi, an effort to make banking easier for dairy farmers, and Kotak Jifi, connecting banking services with social networks including Facebook and Twitter. Kotak also introduced a mobile app. Recognizing India’s growing prosperity, the bank is expanding its wealth management business. In addition to India, the bank maintains offices in London, New York, Dubai, Mauritius, San Francisco, and Singapore. Kotak Mahindra Bank was established in 2003, when, Kotak Mahindra Finance Limited, formed in 1985, became a commercial bank. Kotak Mahindra Bank is a part of Kotak Mahindra Group, one of India’s major financial conglomerates. Kotak Mahindra Bank is traded on the National and Bombay Stock Exchanges. Company Kotak Mahindra Bank Brand Value US$ 1.7 Billion Headquarter City Mumbai Industry Banks Year Formed 2003 Bank brings financial access to underserved Kotak Mahindra Bank TOP 50 Most Valuable Indian Brands 2014
  • 48. Part 3 // The India Top 50 - Brand Profiles Reliance Communications is one of India’s largest telecommunication brands. It serves 150 million customers and offers a full range of mobile and Internet services, including a portal called R World. As the Indian telecommunications industry consolidates to five national players, and the regulatory environment becomes clearer, Reliance intends to rely on several strategies to solidify its leadership. These strategies include: accelerating acquisition of new customers by allowing them to keep their current phone numbers; gaining more revenue from existing customers with upgrades to smart phones; and benefiting from the increase in data consumption. Underscoring its determination to be a leading national player, Reliance introduced the “One India, One Rate” plan, which offers customers the same flat rate for calls and texts made from anywhere in the country. The brand also expects to expand its web-based, international calling product called “Reliance Global Call,” which has 2.5 million users globally. To develop its enterprise business, the brand positions itself as a one-stop source for Internet and web services and solutions. Owned by the Reliance-ADA Group, an Indian conglomerate, Reliance Communications is listed on both the National and Bombay Stock Exchanges. Company Reliance Communications Limited Brand Value US$ 1.6 Billion Headquarter City Mumbai Industry Telecoms Year Formed 2003 Telecommunications leader pursues national strategies Reliance Communications 9998 TOP 50 Most Valuable Indian Brands 2014
  • 49. Part 3 // The India Top 50 - Our Insights 101100 NO BORDERS Marketers must be more nimble than consumers VISUAL MERCHANDISING Merchandising helps brands make a lasting impression Rajan Zachariah Country Head Smollan India ranjan.zachariah@smollan.co.in Reny Thomas Planning Director Ogilvy & Mather reny.thomas@ogilvy.com Prasun Basu Managing Director Millward Brown South Asia prasun.basu@millwardbrown.com SUSTAINABILITY Embracing sustainability is a matter of self-interest While the West strongly advocates the philosophy of green living, this imperative has evolved after years of persistent environmentalist advocacy. With one of the highest GDP levels among fast growing countries, in India, the concept of sustainability is understandably alien. On one hand the affluent are just beginning to taste contemporary extravagances, while on the other, the underprivileged still suffer from illiteracy and poverty. Everyone is simply trying to maximize life today, which is why worrying about a better tomorrow for the planet is incomprehensible. Indians are unlikely to adopt environmentalism en masse out of a sense of good citizenship. What will work for Indians, however, are practical demonstrations that sustainable practices yield personal benefits. For example, energy conservation would lead to lower utility bills. A green conscience could be the new social currency for the affluent, like eco-weddings. CELEBRITY ENDORSEMENTS Clutter of celebrity endorsers makes distinction difficult As more brands sign celebrities as brand representatives, it becomes increasingly difficult for brands to achieve the distinction that celebrities are expected to confer. The limited number of celebrities endorsing brands further compounds the problem. To derive full benefit from associating a brand with a celebrity, the brand must cut through the “celebrity clutter.” Ironically, one solution to this problem is for brands to showcase the celebrity more, rather than less, but in a variety of media. Presenting the brand across multi-channels both helps to strengthen brand awareness and makes celebrities seem more interesting as they constantly reinvent themselves for each role as spokespersons, brand characters and experts. First impressions are critical. Recent research shows that 80 percent of the decision to purchase is emotional, while only 20 percent is rational and considered. This distinction illustrates the impact that an attractive and well executed merchandising program can have on sales. Visual merchandising is not an isolated and one-off phenomenon but rather forms a significant component of retailing. Besides the window displays, which are designed to attract walk-ins, there are also in-store activities that enhance the shopper’s experience and convenience while shopping. Effective visual merchandising increases awareness of a company’s most important assets, its brands. Merchandising will enhance a brand’s exposure and increase sales. It is also extremely important for protecting and growing market share. In an increasingly intensifying marketplace, growing market share requires brands to consistently differentiate from their competitors. But success and growth make it harder to ensure brand consistency at every point of the consumer journey. Visual merchandising inserts the brand and reinforces consistency at key points on this journey. Deep Singh Account Planning Manager JWT deep.singh@jwt.com Our Insights Today we listen to books and watch music. Thank you, Kindle and YouTube. Audiobook sites like BooksTALK and Reado are increasingly popular. Viral videos connect the world. Today we sit in a comfortable chair to shop. Thank you again, Amazon, and thank you, Snapdeal, Flipkart, Myntra, and all the other ecommerce sites. The traditional patterns of consumption, across categories, seem turned upside down. And today’s Indian consumers seem fine with this disruption. They’re open, flexible and adaptable, not bound by old school thinking and actions. To reach these consumers marketers need to be equally nimble. Adjust your brand for this new consumer. Think no borders. Question old assumptions. Indians today enjoy cornflakes for breakfast rather than the traditional parathas bread. A small detail, perhaps, but if that’s how Indians start the morning, imagine how their lives have changed for the rest of the day. TOP 50 Most Valuable Indian Brands 2014
  • 50. 103102 Part 3 // The India Top 50 - Brand Profiles Maruti Suzuki is one of India’s largest car brands, producing a range of vehicles including hatchbacks, sedans, SUVs and MUVs, or mini- vans, at various price points. When the first Maruti Suzuki 800 arrived in India from Japan, in 1982, it was designed to meet the aspirations and budgets of middle class Indians. Today, the brand produces more than 1.5 million cars annually across 15 models. The sporty SX4 sedan and the Ertiga SUV are especially popular with individuals and families. With a presence in almost 1,500 Indian towns and cities, Maruti Suzuki also offers a menu of sales-related services, such as financing, insurance, and driving instruction. Several brand initiatives promote driving safety. To improve driving habits in the state of Haryana, Maruti Suzuki set up road safety knowledge centers in partnership with the state’s police force. Maruti Suzuki has collaborated with many NGOs to encourage its employees to engage in social action and community work. Maruti Suzuki India Limited is a subsidiary of the Japan-based automobile and motorcycle manufacturer Suzuki. The brand exports to over 125 countries. Company Maruti Suzuki India Limited Brand Value US$ 1.5 Billion Headquarter City New Delhi Industry Automobiles Year Formed 1982 Range of car models meets growing demand Maruti Suzuki TOP 50 Most Valuable Indian Brands 2014
  • 51. Part 3 // The India Top 50 - Brand Profiles Indian Oil Corporation Limited is India’s national oil company. It’s a publicly traded corporation in which the Indian government owns a majority stake. The company divides its business into three parts: refining, pipeline distribution, and retail marketing. It owns and operates 10 of the country’s 22 refineries and accounts for over one-third of India’s refining capacity, producing a variety of petroleum products. The brand’s pipelines carry both crude oil and refined products. Indian Oil operates an extensive network of 23,900 petrol and diesel stations, around 100 aviation fuel stations, and propane filling stations across India. More than half of all Indians receive their cooking gas, usually in cylinders, from Indian Oil. To drive international growth, the company established subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates. Indian Oil also ventured into alternative energy, with several solar and wind power projects currently active. The brand runs the largest bio-fuel production plant in India. Starting operations in 1959 as Indian Oil Company Limited, Indian Oil Corporation was formed in 1964 in a joint venture with Indian Refineries Limited. Indian Oil is listed on the National and Bombay Stock Exchanges. Company Indian Oil Corporation Limited Brand Value US$ 1.5 Billion Headquarter City New Delhi Industry Motor Fuel and Lubricants Year Brand Formed 1959 National oil company positions for growth Indian Oil 105104 TOP 50 Most Valuable Indian Brands 2014
  • 52. 107106 Part 3 // The India Top 50 - Brand Profiles McDowell’s is a leading Indian alcoholic drink brand with a portfolio that includes whiskey, brandy, and rum. Positioned as a brand associated with celebrations, McDowell’s continues to introduce new variants to keep pace with changing consumer preferences. The brand launched the premium McDowell’s No. 1 Platinum as an aspirational option. Similarly, the brand added premium rum to its lineup with McDowell’s No. 1 Cariba. And it introduced its Celebration Spiced Rum, in two flavors, to reach younger drinkers looking for a new taste experience. Several years ago, McDowell’s launched a diet whiskey, Diet Mate. Challenged by the entry of international whiskey brands during the past decade, and restricted from advertising because of Indian law, McDowell’s refined its packaging to create a more sophisticated appeal that strengthened it competitively against imports. The brand enjoys international popularity across the world. McDowell’s No.1 Celebration Rum is sold in 13 countries. McDowell’s sponsors concerts and sports. Mahendra Singh Dhoni, captain of the Indian Cricket team, is the McDowell’s brand ambassador. McDowell’s is owned by United Spirits Limited, a subsidiary of the United Breweries Group, an Indian conglomerate with businesses in various industries, such as aviation, airlines, engineering, fertilizers and brewing. Company McDowell’s Parent Company United Spirits Limited Brand Value US$ 1.4 Billion Headquarter City Bengaluru Industry Alcohol Year Brand Formed 1963 Alcohol brand segments to broaden its appeal McDowell’s TOP 50 Most Valuable Indian Brands 2014
  • 53. Part 3 // The India Top 50 - Brand Profiles Kingfisher is the largest selling beer brand in India and is marketed in 52 countries. It’s the flagship beer brand of United Breweries Group, which produces Kingfisher in many varieties, including Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, and Kingfisher Draught. United Breweries positions Kingfisher as the beer for “Good Times.” Reflecting this spirit, United Breweries associates Kingfisher with major Indian sports, fashion, music, and food events. Sponsorships include: cricket’s Indian Premier League; some of India’s biggest fashion festivals, such as Lakmé Fashion Week; and major music festivals like Great Indian Oktoberfest. For about a decade, the brand has published the Kingfisher Calendar, with each month illustrated by female model in a swimsuit. The models are selected on a TV reality show called Model Hunt, which draws an audience for the brand and the models, often- aspiring actresses. The Heineken Group, the global brewer based in the Netherlands, owns a 37.5 percent stake in United Breweries. The arrangement helps Kingfisher implement global best practices and it provides Heineken with access to the Indian market United Breweries invests in the communities it serves, focusing on educational advancement and water conservation. An Indian conglomerate with businesses in various industries, such as aviation, engineering, fertilizers, pharmaceuticals, and airlines, United Breweries entered the brewing business about 100 years ago with the purchase of five breweries in southern India. It introduced Kingfisher in 1978. Company United Breweries Group Brand Value US$ 1.3 Billion Headquarter City Bengaluru Industry Alcohol Year Brand Formed 1978 Popular beer brand promotes good times Kingfisher 109108 TOP 50 Most Valuable Indian Brands 2014
  • 54. Part 3 // The India Top 50 - Brand Profiles Castrol India Limited is one of the country’s largest manufacturers of lubricants across three market segments: automotive, industrial, and marine and energy. Along with its consumer-facing business the brand supplies industries including mining, shipping, aviation, and energy. Products span a range of uses. They lubricate motorcycles, scooters and cars as well as the deep-water drills for oil and gas exploration. In the automotive sector, Castrol has identified a new opportunity among people who for the first time can afford a two-wheel vehicle or a car. The brand creates products for this customer group, which it reaches mostly on social media. Castrol sports sponsorships include the Cricket World Cup and the FIFA World Cup of Football. It also sponsors many auto and motorcycle racing events. Cricket star Sachin Tendulkar is among the brand ambassadors. The brand takes a strategic approach to Corporate Social Responsibility (CSR), supporting causes that are brand-relevant including, training for mechanics and driving safety, as well as health and education projects. Castrol India Limited is a subsidiary of Castrol, the UK-based lubricant manufacturer that started in 1899, does business in about 140 countries, and is part of the BP Group. Company Castrol India Limited Brand Value US$ 1.3 Billion Headquarter City Mumbai Industry Motor Fuel and Lubricants Year Brand Formed in India 1919 Lubricant brand makes the world spin smoothly 111110 Castrol TOP 50 Most Valuable Indian Brands 2014
  • 55. 113112 Part 3 // The India Top 50 - Brand Profiles Nestlé is one of India’s leading food producers and marketers. It derives almost half of its revenue in India from a category it calls milk products and nutrition. The company also manufactures products in these other categories: prepared dishes and cooking aids, chocolate and confectionery, and beverages. In this BrandZ™ ranking, the Nestlé valuation pertains to the dairy business alone. When the company established Nestlé India Limited, in 1961, it was among the first companies to introduce modern dairy methods to rural areas, establishing a milk- processing factory in Moga, Punjab. Today, Moga is a district known for producing high-quality milk. Nestlé works to advance the prosperity of the communities in which it’s present. Among its many social welfare initiatives, Nestlé promotes programs to build awareness of nutrition, healthy eating and water conservation. Nestlé is a part of the Nestlé Group, headquartered in Vevey, Switzerland. The company traces its history in India to 1912, and the importing company Nestlé Anglo-Swiss Condensed Milk (Export) Limited. Today, Nestlé is present across India, with eight manufacturing locations and four sales offices, in Maharashtra, Delhi, Tamil Nadu, and West Bengal. Company Nestlé India Limited Brand Value US$ 1.2 Billion Headquarter City Gurgaon Industry Food and Dairy Year Brand Formed 1912 Food marketer promotes health awareness initiatives Nestlé TOP 50 Most Valuable Indian Brands 2014
  • 56. 115114 Part 3 // The India Top 50 - Brand Profiles One of India’s major automobile manufacturing brands, Mahindra & Mahindra is known for sports utility vehicles, including its Bolero and Scorpio models. The company also produces trucks and buses, pick-ups, passenger cars, and tractors. Mahindra distributes in India through over 2,700 showrooms of varying sizes, with rural areas contributing about 25 percent of sales. Brand recognition is high throughout South Asia. Nepal, Bangladesh, Peru, and Tunisia lead the list of export markets. The company acquired a major stake in South Korea’s SsangYong Motor Company, in 2011, to strengthen its pick-up truck and two-wheeler sales, while extending its global reach. An earlier acquisition of India’s Kinetic Motors expanded Mahindra’s two-wheeler business. Mahindra connects the brand with the idea of adventure using the tagline, “Live Young, Live Free.” To help expand the customer base for its cars and strengthen customer relationships, Mahindra operates an off-road driving school. It began building cars in 1947, two years after corporate parent, Mahindra Group, started as a steel business. Mahindra Group operates in 18 industries. Among its other business sectors are aerospace, agriculture, insurance, IT, real estate, and retail. Company Mahindra Group Brand Value US$ 1.2 Billion Headquarter City Mumbai Industry Automobiles Year Formed 1947 Carmaker is known for its SUV models Mahindra & Mahindra TOP 50 Most Valuable Indian Brands 2014
  • 57. Part 3 // The India Top 50 - Brand Profiles Maggi is a food brand best known for its instant noodles, ketchups, sauces, seasonings, pasta and soups. The brand is owned by Nestlé India, which introduced a new food category to the Indian market when it launched Maggi 2-Minute Noodles in 1982. Since then, Maggi has developed a product range promoting the twin benefits of taste and health. Advertising and marketing showcase the emotional satisfaction that customers associate with the brand. With tag lines such as “Fast to Cook, Good to Eat” and “Tasty and Healthy,” Maggi markets itself as purveyor of quick and nutritious snacks. Indian movie star Amitabh Bachchan is the current brand ambassador. Nestlé is an Indian subsidiary of the Nestlé Group, the global FMCG company. Established in 1961, today Nestlé India has a wide presence across the country, with eight manufacturing facilities and four branch offices. Its head office is located in Gurgaon. Company Nestlé India Brand Value US$ 1.1 Billion Headquarter City Gurgaon Industry Food and Dairy Year Brand Formed in India 1982 Taste and health go hand in hand Maggi 117116 TOP 50 Most Valuable Indian Brands 2014
  • 58. 119118 Part 3 // The India Top 50 - Brand Profiles Established just 20 years ago, IndusInd Bank operates a network of over 600 branches and 1100 ATMs spread across more than 400 Indian cities and towns. It maintains offices in London and Dubai as well. The bank plans to add density to its branch network as part of a larger strategy to establish a presence as a “High Street” brand. A multi-media marketing mix, including TV, radio, digital, cinema, and out-of-home helps build awareness. And the bank gained naming and branding rights for a metro station in Gurgaon. To help personalize the bank-customer relationship, Induslnd introduced its “My Account, My Number” program, in which customers can select 10 digits of their 12-digit account number, choosing numbers they believe are lucky or just easy to remember. With a program called “Cash-on-Mobile” customers can use their phones to send money. The Induslnd brand name was selected to fuse the past and future, evoking the ancient civilization of the Indus Valley while also suggesting innovation. IndusInd Bank is owned by the Hinduja Group, a global conglomerate with businesses in automotive, oil and gas, and financial services industries. Company IndusInd Bank Parent Company Hinduja Group Brand Value US$ 1.1 Billion Headquarter City Mumbai Industry Banks Year Brand Formed 1994 Young brand seeks to build awareness IndusInd Bank TOP 50 Most Valuable Indian Brands 2014
  • 59. Part 3 // The India Top 50 - Brand Profiles India is the world’s largest market for Horlicks, a brand best known for the chocolate malt drink it sells as a powder. Horlicks also produces a range of other drinks, snack bars, and various foods, all positioned to provide nutrition in a tasteful, convenient way. Leveraging this heritage, Horlicks is expanding its range in India, adding items like breakfast cereals to position the brand as a provider of both health foods and drinks. It recently introduced a product for women called Horlicks Women’s. Originally a children’s food brand, Horlicks for over a decade has organized Horlicks Wizkids, an annual event that promotes educational excellence. School children from across South Asia compete for prizes, in subjects including art, music, and literature. The Horlicks brand was established in 1873, in Chicago, as a baby food alternative. The Beecham Group, now the UK-based GlaxoSmithKline, acquired the company in 1969. The brand has been present in India since the 1930s. The first Indian factory opened in 1960, in Punjab. Company Horlicks Parent Company GlaxoSmithKline Brand Value US$ 1.0 Billion Headquarter City Mumbai Industry Food and Dairy Year Brand Formed in India 1930 Malt drink expands offering and brand Horlicks 121120 TOP 50 Most Valuable Indian Brands 2014
  • 60. Part 3 // The India Top 50 - Our Insights 123122 ECOMMERCE Tap into emerging online culture, not just its transactional benefits ACCESSIBLE LUXURY Luxury market grows as desire meets access Binata Banerjee Senior Research Executive Millward Brown binata.banerjee@millwardbrown.com Our Insights PERSONALIZATION Versatile tool boosts marketing effectiveness Sandeep Pandey Practice Leader, South Asia Consulting, Analytics and Intelligence Mindshare sandeep.pandey@mindshareworld.com Aparna Jain Planning Director Ogilvy & Mather aparna.jain@ogilvy.com Yes, the urban Indian woman is venturing into the working world traditionally dominated by men. In the beginning, she dreams about joining the workforce, even aiming to reach the very top. But often she falters at the threshold. Societal expectations, safety concerns and her own guilt are just some of the challenges holding her back. For her, the focus on family, kids and husband has not diminished, nor will it ever. So often she finds herself taking a step back, allowing herself to seamlessly slip into the very shadows from which she dreamt about emerging. Brands have an important role to play in this journey. Brands can support her and stand by her choices. But here is an opportunity for brands to do what most family members don’t. To help her slowly change the expectations she has for herself. Brands can help her bridge the gap between hesitation and determination. They can inspire her, show her what she can do and encourage her with myriad wonderful ideas stemming from identity and independence. In the last decade, the concept of personalization has witnessed a phenomenal evolution. A term adopted and formalized in management practice in the mid-nineties, personalization has been used, overused, and even abused to describe any offering that targets the individual consumer’s preferences and interests in any manner – big or small. Now digital marketing, born just yesterday, has already inspired many more personalization initiatives. Clearly, much experimentation still lies ahead. Personalization can assume amazing forms and shapes across channels. Amidst all the innovations that technology is making possible, however, the most basic, ancient, and stripped down definition of personalization will always hold – talking to your consumer one-to-one; interactions from me to you, from you to me, and not once but through a lifetime. WOMEN AT WORK Brands can encourage women to realize work world potential Indian ecommerce brands are still stuck in barrier mitigation mode – promoting the advantages of ecommerce over offline shopping, of convenient shopping, on-time deliveries, attractive discounts and more. While these are relevant pain points, online shopping in India is much more than a feature-driven transaction that is mim- icked in our advertising. Instead, it’s a rich palette of new habits and rituals waiting to be explored. For some, the pleasure of online shopping is opening a parcel at the office, which may lead to conversation and a welcome break from work. For others, online shopping is therapeutic, for some it’s compensating for time away from loved ones, etc. With over 25 million early adopters, there is an emerging culture of online shopping in India that remains untapped. Brands need to look beyond the transactional value of ecommerce and recognize this emerging culture to create a distinct proposition in this increasingly competitive space. Devang Raivani Assistant Vice President Planning Grey devang.raiyani@grey.com TOP 50 Most Valuable Indian Brands 2014 An undergrad owning a MacBook or the sight of a college girl with an Armani bag doesn’t raise eyebrows anymore in India. We are in the age of instant gratification. Nobody is ready to wait. Everyone wants everything and they want it now. And everyone means everyone. People across income levels aspire to luxury and have greater access to it. Easy financing options and a robust market for second-hand merchandise are among the factors driving this trend. Therefore, luxury brands need not target only the highest income group anymore. They also can focus on the Indian middle class with its rising aspirations and affluence. The growing number of HENRY (High Earning Not Rich Yet) individuals who have started spending on luxury brands are key contributors to this growth story.
  • 61. Part 3 // The India Top 50 - Our Insights 125124 MOBILE Mobile helps boost marketing effectiveness NEW MENTALITY Aligning with awakened social consciousness will build trust Indians have been in a breathless chase to prove a point to themselves and others. One important consequence of this dynamic is that individual desires took priority over the collective welfare and personal gratification became more important than social progress. This shift was reflected in governance and businesses, two bastions of a society that indulged in selfish gains at all costs. Decades of broken political promises resulted in an inherent cynicism that until now was brushed under the carpet with indifference. But there is a tipping point for everything and we have come to ours. Numbness has been replaced by angst, apathy by responsibility and words by acts. Indians are now looking to create symbiotic, wholesome relationships that can both build and sustain progress. Brands that align with this awakened social consciousness will be trusted, respected and endorsed. With the smartphone boom and increased mobile Internet access, mobile has become an enormous repository of data. Here are three ways for marketers to leverage this data: Engagement with stakeholders With mobile, one medium can economically reach multiple stakeholders with a targeted and relevant message. Mobile as a media channel Content is easily accessed anywhere through mobile, either as an app, mobile video, or SMS text. In addition, with the “missed call” tactic, marketers can reach more financially constrained rural consumers who receive messages without paying for the calls. Shopper marketing Mobile can disseminate product and promotion information in real time, alerting customers with personalized offerings that drive sales. Mobile is part of the marketing portfolio, a medium that can boost awareness and response at each touch point. Clever marketers must find new ways to use this versatile tool. CUSTOMER SERVICE The voice of the brand is as important as its face Riddhi Shah Research Executive - Client service Millward Brown riddhi.shah@millwardbrown.com Priti Murthy National Director Insights Maxus India priti.murthy@maxusglobal.com Aniruddha Khandekar Senior Planning Director Ogilvy & Mather, Mumbai anirunddha.khandekar@ogilvy.com Noor Samra Senior Planner JWT noor.samra@jwt.com RURAL MARKETING Four strategies can help unlock rural potential Our Insights Ever wondered what the person on the other end of the call looks like? While the front-end executives play an important role as the face of the brand, the call center operators play an equally important, if less appreciated, role as the voice of the brand. Their behavior and tone influence how customers think and feel about the brand. Consider a situation where a customer loses a credit card or mobile phone. Responding with understanding and concern can help strengthen the customer bond and form the basis of a long-term customer-brand relationship. One comforting sentence from the representative can reassure the customer that the company is going to be there in such times of crisis. While marketers must continue to invest in improving their front-end services, they also must not neglect the less apparent – but impactful – customer service provided by phone. TOP 50 Most Valuable Indian Brands 2014 One of the most important aspects of changing India will be unlocking the potential of its rural population. Several daunting roadblocks await, however. Variations in rural population density make uniform logistical planning difficult. Because of the high illiteracy rate, many rural consumers are unable to identify brands, making them susceptible to counterfeits. Low income usually limits large, one-time investments. And rural consumers are swayed by local influencers and traditional media intervention has low impact. To overcome these roadblocks when marketing to rural consumers, consider these strategies, the four A’s: 1. AFFORDABILITY Offer items in smaller sizes and lower prices and products that cost less to produce. Help consumers save money with DIY product kits, when appropriate. Offer loans for financing options to facilitate larger investments. 2. ACCESSIBILITY Instead of targeting organized retail, it is important to consider targeting 47,000 weekly markets, called haats, the nerve centers of rural commerce where products worth roughly 50,000 crore rupees (US$ 8.4 billion) change hands annually. 3. AWARENESS use vernacular language, integrate local cultural inferences, and design packaging with memorable visual cues to improve brand recall. 4. ACCEPTABILITY Market through word of mouth recommendations from opinion leaders with high credibility.
  • 62. 127126 Part 3 // The India Top 50 - Brand Profiles Not simply one of India’s most popular household detergent brands, Wheel is among the country’s best selling products across all FMCG sectors. Hindustan Unilever introduced the brand, almost 30 years ago, to segment the detergent market and protect its Surf brand from price competition. Wheel later expanded its value position by adding claims that the product produces cleaner results and takes some of the tedium out of doing laundry. Ads that feature one of Indian cinema’s leading male stars suggest that the product’s fresh and fragrant scents have emotional appeal. In an innovative mobile campaign, Wheel reached consumers in rural areas less exposed to traditional media. Adapting a widely used money-saving tactic, the brand rang mobile phone numbers but disconnected before the call was picked up, saving the recipient the cost of the call. Consumers who dialed a free callback number heard a joke, told in the caller’s language, by Wheel’s movie star brand ambassador. Supported in traditional and digital media, the campaign enabled Wheel to associate the brand’s value proposition with the rural population’s respect for frugality. A brand of Hindustan Unilever, the large MNC, Wheel comes in powders, bars and soaps. Company Hindustan Unilever Limited Brand Value US$ 982 Million Headquarter City Mumbai Industry Home Care Year Brand Formed 1987 Clever mobile campaign reaches rural consumers Wheel TOP 50 Most Valuable Indian Brands 2014
  • 63. Part 3 // The India Top 50 - Brand Profiles One of India’s leading Indian consumer goods companies, offering over 400 products, Dabur is distinguished by its focus on health and wellbeing and an extensive range of ayurvedic remedies. It’s particularly prominent in health supplements. The brand’s business entities include consumer care, food, and international, which drives about one-third of revenue. The company is present in about 60 countries with its Dabur and Vatika health and personal care brands. In India, Dabur relies on a network of over 5,000 distributors and 5.3 million retail outlets. In the past couple of years Dabur doubled its reach in rural India and now is present in over 38,250 villages. The company operates four Internet portals to promote its oral care, skin care, hair care and health care brands. As the home and personal care category continue to grow, driven by rising incomes and aspirations, Dabur has added men’s grooming products. Its social agenda includes encouraging adults and children to strengthen their immune systems. The brand traces its origins to a Calcutta pharmacist in 1884. Incorporated in 1936, the company is listed on India’s Bombay, National and MCX Stock Exchanges. Company Dabur India Limited Brand Value US$ 907 Million Headquarter City Ghaziabad Industry Personal Care Year Brand Formed 1884 Health and wellbeing distinguish FMCG brand Dabur 129128 TOP 50 Most Valuable Indian Brands 2014
  • 64. 131130 Part 3 // The India Top 50 - Brand Profiles One of India’s most recognized jewelry brands, Tanishq offers a wide range of traditional as well as trendy jewelry designs in gold, diamond, and platinum. The brand pioneered the concept of branded jewelry and ornaments in India when it challenged the established industry structure of family-owned jewelry businesses and added order to a fragmented sector. To make jewelry affordable to more people, Tanishq runs its Golden Harvest savings scheme that enables the customers to buy Tanishq jewelry at a reasonable price and on an installment plan with favorable terms. A pioneer in selling jewelry online in India, Tahishq offers its collections on its website. Many popular Indian movie actors have endorsed the brand. Tanishq is owned by Titan Company Limited and is the flagship line of jewelry. Titan Company Limited launched Tanishq in 1994. Titan is a joint venture of Tata Group, one of India’s largest conglomerates, and the Tamil Nadu Industrial Development Corporation, based in Tamil Nadu, and responsible for industrial development in that state. Titan operates in four product areas: watches and accessories, jewelry, eyewear, and precision engineering. Company Titan Company Limited Brand Value US$ 880 Million Headquarter City Bengaluru Industry Jewelry Year Brand Formed 1994 Brand markets trendy jewelry that more people can afford Tanishq TOP 50 Most Valuable Indian Brands 2014
  • 65. 133132 Part 3 // The India Top 50 - Brand Profiles Britannia Industries Limited is a major Indian food provider. Focused primarily in the bakery and dairy sectors, Britannia manufactures and markets biscuits, breads, cakes, and dairy products including milk and butter through over 3.5 million retail outlets. To meet the changing values, tastes and growing affluence of Indian consumers, the company expanded from its bakery roots and entered the dairy business in 1997, updating its brand identity with a focus on health, captured in the slogan, “Eat Healthy, Think Better.” Britannia Industries Limited also activates this focus on health through the Britannia Nutrition Foundation, which increases awareness for the issue of child malnutrition. In partnership with Global Alliance for Improved Nutrition, an international NGO, the foundation distributes the brand’s Tiger biscuits in public schools. The brand was established in 1892 as a biscuit bakery in Calcutta. Today, Britannia Industries Limited is headquartered in Bengaluru, and is owned by the Wadia Group, one of India’s oldest conglomerates, dating to the period of the British East India Company in the eighteenth century. Company Britannia Industries Limited Brand Value US$ 879 Million Headquarter City Bengaluru Industry Food and Dairy Year Brand Formed 1892 Food provider focuses on bakery and dairy Britannia TOP 50 Most Valuable Indian Brands 2014
  • 66. Part 3 // The India Top 50 - Brand Profiles Hindustan Unilever introduced Surf detergent powder to India around 55 years ago, when most Indian homemakers washed clothes with soap bars. Since then, the mass-market detergent has constantly innovated new products to meet changing consumer needs. While the brand initially stressed rational, value-for-money benefits, Surf Excel today depends on the more emotional appeal of “Dirt is Good,” a natural result of an engaged life. Commercials show children at play, enjoying fun and freedom, and getting dirty in the process. The brand offers a range of products for cleaning dirt, along with extensive commentary and insights about child development and why getting dirty can indicate curiosity and a need to explore, critical ingredients for growth and self-confidence. A recent brand initiative called the Kid’s Today Project, offers a multi-media compilation of parenting tips, activities for kids, how-to instructions for doing laundry, advice for operating washing machines, and advocacy for conserving water and protecting the environment. Unilever introduced the brand in 1948. Known then as Surf, the brand was one of the earliest in the conglomerate’s portfolio. Subsidiary Hindustan Unilever launched Surf Excel in India in 1959. Company Hindustan Unilever Limited Brand Value US$ 778 Million Headquarter City Mumbai Industry Home Care Year Brand Formed in India 1959 Emotional spin says dirt is good 135134 Surf Excel TOP 50 Most Valuable Indian Brands 2014
  • 67. Part 3 // The India Top 50 - Brand Profiles Punjab National Bank is one of India’s largest and oldest public sector banks, providing financial services for over 120 years. On the strength of that legacy, the bank emphasizes relationship building and trust. The bank advances its stated mission, “Banking for the unbanked,” with a countrywide network of over 6000 branches and close to 7000 ATMs that mostly serve customers in rural and semi-urban areas. Punjab National Bank intends to extend its global reach, which currently includes a combination of company branches, joint ventures, and representative offices mostly in Asia, but also in London and Sydney. PNB’s active social responsibility agenda aims to nurture the aspirations of small entrepreneurs, farmers, and young people. The bank also promotes personal health and environmental sustainability. Founded during the period of British rule, in an effort establish Indian-owned institutions and fund national growth, Punjab National Bank began operations in April 1895. The Government of India owns a majority stake in the bank, which it nationalized in 1969. Company Punjab National Bank Brand Value US$ 764 Million Headquarter City New Delhi Industry Banks Year Brand Formed 1895 Historic legacy supports relationships and trust Punjab National Bank 137136 TOP 50 Most Valuable Indian Brands 2014
  • 68. Part 3 // The India Top 50 - Brand Profiles Since its introduction just over a decade ago, Sunfeast has become a leading biscuit brand, its rapid rise driven by the marketing power of corporate parent ITC, a leading Indian conglomerate. Sunfeast continuously introduces new biscuit variations across market segments, most prominently at the premium end with lines named Dark Fantasy and Sunfeast Delishus, and in the health segment with Sunfeast Farmlite. For Farmlite, Sunfeast launched an innovative consumer engagement program at the airport in Bengaluru, offering free samples in a farm-like setting and even from a basket that preceded baggage moving along the conveyor belts. Sunfeast built its brands on the promise of new taste pleasures and indulgences, using brand ambassadors, integrated promotion including TV, print and outdoor, and presence in social media like Facebook. Established in 1910, ITC Limited is present in a range of FMCG categories and also operates in other business sectors including: hotels, packaging, agriculture, and IT. ITC launched the Sunfeast brand in 2003. Company ITC Limited Brand Value US$ 754 Million Headquarter City Kolkata Industry Food and Dairy Year Brand Formed 2003 Brand races to top in about a decade 139138 Sunfeast TOP 50 Most Valuable Indian Brands 2014
  • 69. Part 3 // The India Top 50 - Brand Profiles A leading oral hygiene brand, Colgate has been present in India for over 75 years. The Colgate range includes toothpastes, toothbrushes, mouthwashes, and teeth-whitening products. The brand is distributed in over 4.6 million retail outlets throughout India. It is driving additional growth by increasing penetration, especially in rural areas, and introducing new benefits and occasions for using the brand. Colgate also continues to segment its offerings and add more premium products. In an effort to build and sustain consumer trust, the brand’s ad campaigns stress the need for consistent oral hygiene and dental care. The brand markets actively with in-store merchandising, social media, and mobile apps. To increase oral health awareness among school children in both rural and urban areas, Colgate has worked in partnership with the Indian Dental Association since 1976. The brand offers free dental check-ups and distributes dental health care information and product samples. Colgate-Palmolive India Limited markets the Colgate brand. A subsidiary of US-based company Colgate-Palmolive, a manufacturer of household, oral care, and health care products, Colgate-Palmolive India Limited was incorporated in 1937. The Colgate brand began in 1806, in New York. Company Colgate-Palmolive India Limited Brand Value US$ 742 Million Headquarter City Mumbai Industry Personal Care Year Brand Formed in India 1937 After 75 years in India, brand growth continues Colgate 141140 TOP 50 Most Valuable Indian Brands 2014
  • 70. 143142 Part 3 // The India Top 50 - Brand Profiles India’s oldest tea brand, Brooke Bond includes these major sub-brands: Brooke Bond Taj Mahal, Brooke Bond Taaza, Brooke Bond Red Label, and Brooke Bond 3 Roses. Brooke Bond Taj Mahal, introduced in 1966, is the premium brand of tea in the Indian market. Brooke Bond promotes its product range based around freshness and as a healthy beverage for the entire family. The only Indian tea brand sold in vacuum-sealed packs to protect product freshness, Brook Bond was also the first to introduce tea bags in India. Many celebrities have endorsed the brand, including Ustad Zakir Hussain, an Indian musician, and a variety of popular Hindi movie actors. The brand’s current brand ambassador is actor Saif Ali Khan. The Brooke Bond Red Label Tea brand was launched in 1903. Brooke Bond & Company India Limited was formed in 1912. Hindustan Unilever Limited, the large multinational conglomerate acquired the company in 1984. Company Hindustan Unilever Limited Brand Value US$ 641 Million Headquarter City Mumbai Industry Soft Drinks Year Brand Formed 1903 Tea emphasizes health and freshness benefits Brooke Bond TOP 50 Most Valuable Indian Brands 2014
  • 71. Part 3 // The India Top 50 - Brand Profiles Bank of India is a financial SOE, (State Owned Enterprise) publicly traded but two-thirds owned by the Indian government. Its core offerings include commercial banking, retail banking, private banking, and asset management. The bank operates over 4,600 branches, with almost 2,000 in rural areas, and over 4,200 ATMs. It focuses on developing its relationships with corporate and small and medium business customers, as well as with wealthy retail clients. Bank of India attempts to differentiate from the competition by emphasizing customer service, a theme communicated in ads and expressed in the tagline, “Relationship beyond banking.” It recently introduced a facility that enables customers to send money using their mobile phones. The bank supports medical and education programs for India’s under-served populations and it funds rural infrastructure improvement. Established in Mumbai in 1906, the bank remained private until 1969, when the government nationalized any banks it didn’t already control. With its headquarters still in Mumbai, the bank today is present in 20 countries including major financial centers, such as New York, Tokyo, Singapore, Hong Kong, London, and Paris. Bank of India is listed on the Bombay and National Stock Exchanges. Company Bank of India Brand Value US$ 570 Million Headquarter City Mumbai Industry Banks Year Brand Formed 1906 Relationship banking distinguishes the brand Bank of India 145144 TOP 50 Most Valuable Indian Brands 2014
  • 72. Part 3 // The India Top 50 - Our Insights 147146 WOMEN AND FINANCIAL INDEPENDENCE Drop old assumptions for new opportunities Marketers seeking to connect with modern Indian women will encounter a major opportunity if they look beyond old assumptions and stereotypes. Women today seek financial independence. Work and career is a high priority. In a recent JWT study, a whopping 85 percent of middle class women in their 20s, 30s and 40s said that career defines a successful woman. (We surveyed women in Indian SEC Groups A and B.) When we asked younger women, ages 20 to 24, “Thinking about your generation compared to your mothers, which of the following do you think have been most influential for women?” they cited opportunities for work and career (53 percent) and financial independence/spending power (43 percent) as the most influential drivers for change for women. The also listed financial independence and career advancement as a top goal (65 percent). Older women, in their 30s and 40s, also revealed similar desires for financial independence. Their priorities included wanting to advance a career (40 percent), start a business (36 percent), travel the world (45 percent), as well as buy a home (37 percent) and a car (36 percent). This deep desire for financial independence offers a fresh platform for brands to forge connections with an audience it viewed mainly through an emotive lens. Brands can play newer roles in women’s lives – as enabler, catalyst, educator, sponsor, benefactor, and advocate for their financial independence. SEEKING BALANCE Individual aspirations rising in family-comes-first-culture Shaziya Khan Executive Planning Director and Vice President JWT shaziya.khan@jwt.com Dilip Garga Group Head Planning Ogilvy dilip.garga@ogilvy.com CULTURAL LANDSCAPE Brand communication options grow in more egalitarian culture Sumant Bhattacharya Assistant Vice President & Planning Director Grey sumant.bhattacharya@grey.com Our Insights NEW BOLDNESS New edgy ads differentiate brands, but risk alienating core customers Ritesh Shetty Account Manager Millward Brown ritesh.shetty@millwardbrown.com The sheer number of customs, dialects, foods, beliefs and gods in India are enough to create the most challenging probability problem ever, or as a marketer would call it, the perfect nightmare. To understand how average Indian consumers process all the cultural and commercial stimulation, it’s necessary to understand the core values through which they filter all these choices. In India, family takes precedence over everything else. Children grow up and continue living with their families to repay all the years of hard work that their parents put into raising them. For every decision, family comes first before any personal consideration. But there is another side to India today, a more enterprising side that wants more with every passing moment. In this India, people seek to balance traditional loyalty to family with the pursuit of individual aspirations. TOP 50 Most Valuable Indian Brands 2014 In India, notions of power, authority and popularity have always converged on a select few. The cultural landscape also was ruled by a small coterie of mass- market icons. At last count, M. S. Dhoni, the captain of the Indian cricket team, had 20 endorsements. But Indian youth, exposed to more influences and given to manic sharing, are making India far more egalitarian. A video called Bollywood Aam Aadmi Party, a political satire by The Viral Fever, enjoyed more than 3.5 million views on YouTube. Little known stand-up acts are popular at tony joints in Gurgaon, Mumbai, and Bengaluru. The indie music scene is thriving with talented artists like Sehaj Bakshi and Tajdar Junaid. So when it comes to choosing a cultural territory or an ambassador, the fate of brands isn’t tied to a select few. Brands can now attach themselves to a cultural force in the beta-phase and be the part of a cultural movement right from scratch. In 1994, using the term “sexy” in Bollywood songs created such a huge backlash it had to be replaced by a more socially acceptable word. Fast-forward 20 years. Today, Big Boss, the Indian TV reality show introduces Sunny Leone, a renowned “adult movie” star, and audience accepts her, not only as a reality show participant, but also as a mainstream actor in Indian cinema. The Indian audience has really grown up! Even advertisers have changed their communication style, connecting their messages with themes that until recently were considered taboo. These themes include: infidelity (a husband finds his wife’s lover hiding in the closet with VIP Skybag luggage); remarriage (a bride and her daughter wear Tanshiq wedding jewelry); and sexual freedom (two young women emerge together from a closet in an ad for Fastrack watches). Being bold helps a brand stand out as different – more so in today’s India. However, care should be taken that boldness doesn’t contradict the brand’s ethos or risk alienating its core audience.
  • 73. Part 3 // The India Top 50 - Brand Profiles Tata Motors introduced the first Indian-made light commercial vehicle in 1986, and first SUV, in 1991. Today, the company is a leading manufacturer of personal and commercial motor vehicles, including passenger cars and SUVs; vans, trucks and buses; and police and military vehicles. Appealing to all segments of the Indian market, Tata Motors offers micro cars, like the Nano, for budget-constrained consumers and the premium brands Jaguar and Land Rover, which Tata acquired in 2008, for customers more concerned with performance and status than affordability. Tata sells products through 250 dealers in almost 200 Indian cities, as well as through a distribution network in 180 countries. It produces cars at six Indian plants and with partnership arrangements it also operates assembly plants in Kenya, Bangladesh, Ukraine, and Senegal. To promote inclusive economic growth, the company’s social action commitment spans initiatives devoted to health care, safe drinking water, education and vocational training, sustainability, and environmental protection. Formed in 1945 as Tata Engineering and Locomotive Company Limited, Tata entered the car business in a joint venture with Daimler-Benz. The name changed to Tata Motors Limited in 2003, and the company was listed on the New York Stock Exchange the following year. Tata Motors is part of the Tata Group, a major Indian conglomerate. Company Tata Motors Limited Brand Value US$ 569 Million Headquarter City Mumbai Industry Automobiles Year Brand Formed 1945 Car pioneer serves all vehicle segments 149148 Tata Motors TOP 50 Most Valuable Indian Brands 2014
  • 74. Part 3 // The India Top 50 - Brand Profiles One of India’s most prominent whiskeys, Bagpiper exports to 10 nations. It’s positioned as an aspirational brand, offering the taste appeal of Scotch at an affordable price, in two varieties, Bagpiper and Bagpiper Gold. The brand communicates its positioning, and the idea of social drinking, through its well-known tagline, “Three will be company: You, me, and Bagpiper.” A pioneer in celebrity endorsements, Bagpiper was the first whiskey brand to sign Hindi movie stars as brand ambassadors. And Bagpiper was one of the first brands to introduce the Guala international capping system to assure tamper-proof bottles. In a cost-saving innovation, Bagpiper also was among the first brands to sell an alcoholic beverage in the cardboard TetraPaks normally associated with milk products. Bagpiper is the flagship brand of United Spirits Limited, formed in 2006 from the merger of several companies, including Herbertsons Limited, which introduced the Bagpiper brand in 1976. Company United Spirits Limited Brand Value US$ 552 Million Headquarter City Bengaluru Industry Alcohol Year Brand Formed 1976 Prominent whiskey exports to 10 nations Bagpiper 151150 TOP 50 Most Valuable Indian Brands 2014
  • 75. 153152 Part 3 // The India Top 50 - Brand Profiles Hindustan Petroleum is major integrated oil and gas SOE (State Owned Enterprise) that’s active, directly or through subsidiaries, in petroleum exploration and the refining and distribution of petroleum products. The company maintains over 12,100 retail outlets, all under the brand identity Club HP to signify a commitment to customer service and excellent care. HPCL recently introduced a premium version, Club HP Star, with service improvements including automated pumps and electronic payment. To strengthen the brand’s position as a supplier of liquefied petroleum gas, the propane Indian’s generally use for cooking, the brand expanded its distribution network to around 3,200 distributors. In addition, as the operator of India’s largest lubricant refinery, HP created a network of over 200 distributors who serve the almost 40,000 shops where Indians buy lubricants. The company also continues to expand its R&D, pipeline network, and refinery infrastructure. Social action activities span health care, childcare, education, and programs for professional training or job skills building in an effort to increase employment among economically or socially disadvantaged young people. Incorporated as Standard Vacuum Refining Company of India Limited, in 1952, the company became Esso Standard Refining 10 years later and subsequently Hindustan Petroleum Corporation Limited in 1974. Company Hindustan Petroleum Corporation Limited Brand Value US$ 539 Million Headquarter City Mumbai Industry Motor Fuel and Lubricants Year Brand Formed 1974 Petroleum brand adds premium retail service HPCL TOP 50 Most Valuable Indian Brands 2014
  • 76. 155154 Part 3 // The India Top 50 - Brand Profiles Fair & Lovely is a skin-fairness product designed to lighten skin color. The brand is available in a range of creams and face washes for skin issues such as sun tanning, dark circles and dullness. Primarily aimed at women customers, the brand recently introduced a product line for men called MAXFairness. Ad campaigns for Fair & Lovely advance themes of women’s empowerment, achievement, and transformation. They usually present stories where women challenge unpleasant social realities and discover their potential with the help of the Fair & Lovely brand. An Indian film actress is the current brand ambassador. To support issues around women’s empowerment, the brand established the Fair & Lovely Foundation in 2003. Foundation support helps women from low- income rural and urban backgrounds pursue higher education and acquire professional skills. Every year, the foundation awards scholarships based on academic performance and financial need. Hindustan Unilever Limited owns Fair & Lovely. Launched by Hindustan Unilever in 1975, Fair & Lovely expanded internationally in 1988, and now is available in over 30 countries. Hindustan Unilever is a subsidiary of Unilever, one of the world’s leading FMCG companies. Company Hindustan Unilever Limited Brand Value US$ 520 Million Headquarter City Mumbai Industry Personal Care Year Brand Formed 1975 Skin cream brand adds product line for men Fair & Lovely TOP 50 Most Valuable Indian Brands 2014
  • 77. 157156 Part 3 // The India Top 50 - Brand Profiles India’s largest selling soap brand, Lifebuoy is sold in over five million outlets throughout the country. The brand is positioned as healthy and affordable soap for the entire family, available as soap bars, liquid hand wash, hand sanitizer, and talc. The brand advocates improving health and hygiene standards and affordability. Through its advertising campaigns, Lifebuoy educates the public about the importance of hand washing and other hygiene habits. The brand’s many social action initiatives reflect this mission. Lifebuoy has collaborated with the Maternal and Child Health Integrated Program, a global effort to improve hygiene behavior among new mothers and reduce child mortality rates. The brand is one of the founding members of the Public-Private Partnership for Hand Washing with Soap, which promotes Global Handwashing Day observed on October 15. And Lifebuoy has partnered with more than a hundred restaurants and cafés at the Kumbh Mela festival, a Hindu pilgrimage in India that attracts devotees from around the world. Lifebuoy is marketed by Hindustan Unilever Limited, India’s largest FMCG company. It was established in 1894, in England, to fight bacteria and prevent disease, and appeared in India the following year. Company Hindustan Unilever Limited Brand Value US$ 511 Million Headquarter City Mumbai Industry Personal Care Year Brand Formed in India 1895 Soap brand delivers affordable hygiene Lifebuoy TOP 50 Most Valuable Indian Brands 2014
  • 78. Part 3 // The India Top 50 - Brand Profiles Lux is one of India’s oldest and best-selling soap brands. Positioned as an affordable indulgence, primarily aimed at women, the brand is available in a variety of forms including soap bars, shower gels, shampoos and deodorants. Many leading Indian actresses have endorsed the brand over the decades, including former Miss World Aishwarya Rai. Lux was the first soap brand in India to be endorsed by a male actor, as well. The brand’s ad campaigns emphasize beauty and glamor. The UK manufacturer Lever Brothers – now Unilever – launched Lux in 1899 and introduced Lux flakes to India in 1905. Today Lux is a $1 billion global brand sold in over 100 countries and marketed in India by Hindustan Unilever Limited, India’s largest FMCG company. Company Hindustan Unilever Limited Brand Value US$ 491 Million Headquarter City Mumbai Industry Personal Care Year Brand Formed in India 1905 Global brand offers affordable luxury Lux 159158 TOP 50 Most Valuable Indian Brands 2014
  • 79. Part 3 // The India Top 50 - Brand Profiles India’s second largest decorative paint company, Berger Paints offers interior and exterior wall coatings for professional and industry users and middle and upper class homeowners. The brand is moving more up-market as Indian consumer purchasing power increases. The professional business covers several segments including industrial, automotive and coatings. But the faster growing decorative business drives the majority of revenue, and Berger promotes its premium brands, including Breathe Easy, Silk, and Weathercoat. To inspire customers and instill confidence, the company recently launched its Lewis Berger Design Stories, a collection of home decoration ideas presented as full solutions, including recommended paints, furniture and accessories, along with professional advice. Involvement in important landmark architectural projects also helps publicize the brand. The company operates 11 manufacturing plants and 170 sales offices. It distributes through 15,000 dealers and is also present in Russia, Poland, Nepal and Bangladesh. From its origins in West Bengal in 1923, the company has been operating steadily in India for almost 90 years. After several name changes, the company became Berger Paints in 1983. It’s named for the eighteenth century UK paint pioneer Lewis Berger. Company Berger Paints India Limited Brand Value US$ 451 million Headquarter City Kolkata Industry Paints Year Brand Formed 1983 Paint brand moves further up-market 161160 Berger Paints TOP 50 Most Valuable Indian Brands 2014
  • 80. 163162 Part 3 // The India Top 50 - Brand Profiles Launched during the 1960s as a cooking oil to help lower the risk of heart disease, Saffola has broadened its appeal to promote healthy living and help combat cardiovascular disease and diabetes. The broader brand proposition, launched around a decade ago, reflects the values and increased affluence of India’s rising middle class. An expanded product range includes more edible oil options, each with a different mix of beneficial ingredients like antioxidants, molecules known fortify health; breakfast foods like muesli and oats; and low-sodium salt. To cultivate an audience devoted to healthy living and to raise awareness about the risk of heart disease and other illnesses, Saffola introduced Saffolalife.com, an educational website that offers recipes, expert advice, and Saffola product suggestions. Saffola has sponsored other initiatives, including free cholesterol checks for the general public. Bombay Oil Industries introduced Saffola Oil in the 1960s. Today, it’s marketed by Marico Limited, an Indian FMCG company, which specializes in beauty and wellness, and is present in 25 Asian and African countries. Marico was established in 1990 and listed on the India’s National and Bombay Stock Exchanges in 1996. Company Marico Limited Brand Value US$ 450 Million Headquarter City Mumbai Industry Food and Dairy Year Brand Formed 1960s Broader mission aims at improving health Saffola TOP 50 Most Valuable Indian Brands 2014
  • 81. Part 3 // The India Top 50 - Brand Profiles IDBI Bank is a pubic sector commercial bank with a differentiating focus on infrastructure financing, dating back to its origins as a Development Financial Institution (DFI) 50 years ago, established by the Indian government to help underwrite the country’s growth. The bank divides its businesses into corporate and retail. Key areas of focus include agriculture and infrastructure. IDBI believes that its younger and more female workforce provides a competitive advantage as it attempts to project a warm and friendly attitude. The bank serves more than 3,000 corporate customers and over 6.5 million retail customers with over 1,390 branches and 2,400 ATMs located across India. IDBI Bank also operates in Dubai and plans further international expansion. The bank’s social action priorities include extending banking to underserved parts of the population and improving the financial literacy of both school children and adults. Other programs foster entrepreneurship. IDBI was formed in 1964 by the Indian Parliament as a subsidiary of the Reserve Bank of India, the nation’s central bank. It transitioned from a DFI to a full-service commercial bank in 2004. The government’s stake exceeds 70 percent. Company IDBI Bank Brand Value US$ 416 Million Headquarter City Mumbai Industry Banks Year Brand Formed 2004 Expertise, attitude differentiate bank 165164 IDBI Bank TOP 50 Most Valuable Indian Brands 2014
  • 82. 167166 Part 3 // The India Top 50 - Brand Profiles Bharat Petroleum Corporation Limited engages in energy exploration and in refining and marketing of a wide range of petrochemicals, solvents, aircraft fuels and specialty lubricants. It conducts much of its activities through subsidiaries and joint ventures. One of India’s largest energy companies, BPCL explores for oil and gas in six countries and operates a network of over 11,600 retail outlets in India. The ad campaign “Energizing Lives” positions Bharat Petroleum as innovative, introducing its branded fuel, Speed, and loyalty cards. As an SOE (State Owned Enterprise) in which the Indian government owns a majority stake, Bharat Petroleum’s priorities include not only growing its business, but also helping to drive the development of India and build public awareness about energy efficiency. Bharat Petroleum engages in a full agenda of social responsibility initiatives, mostly to improve living conditions for impoverished people, with a particular focus on education, water conservation, health, work skill development and the empowerment of women. The company was formed from Burmah Shell Refineries Limited, which the Indian government took over in 1976 to create Bharat Refineries Limited. The name changed the following year to Bharat Petroleum Corporation Limited. Company Bharat Petroleum Corporation Limited Brand Value US$ 393 Million Headquarter City Mumbai Industry Motor Fuel and Lubricants Year Brand Formed 1977 Brand finds, refines and sells petroleum Bharat Petroleum TOP 50 Most Valuable Indian Brands 2014
  • 83. Part 3 // The India Top 50 - Our Insights 169168 WOMEN IN NEW ROLES Brands lag in portraying women as multi-dimensional Despite its melodrama, Bollywood is quite revealing in its portrayal of the metamorphosis of the Indian woman. The 50s and 60s saw women portrayed as good and evil, the heroine and vamp. Heroines were pure, silent pillars of strength, self-sacrificing lambs. They were the respectful daughters, dutiful wives and loving mothers. In contrast, vamps were sexually expressive, wore revealing clothes, smoked and drank. True love and happiness eluded them. Then came economic liberalization and the lines blurred between the two stereotypes. Today’s Bollywood heroine uses her sexuality to get ahead, plot revenge, go alone on her honeymoon and steal her dad’s money. But unlike Bollywood, most brands continue portraying women as defined by their relationships. It’s time to acknowledge and celebrate women’s independence and depth of character (artful negotiator, ambitious professional, tiger mom, hedonist) and even help them negotiate their new roles successfully. Rasika Fernandes Vice President Planning Ogilvy & Mather rasika.fernandes@ogilvy.com Indian youth are coping with the dramatic shift from boom times to gloom times that happened over the past few years. They’re reacting to a troubled economy and job market, social decay, political corruption and the paralysis of development policies. A study from the National Institute of Mental Health and Neurosciences characterized eight out of 10 Indian youth between ages 15 and 16 as angry. Youth have adopted these coping strategies: 1. OFFENSE STRATEGY Unrestrained expressions of anger as seen in protests and agitations, on the streets and on the digital media, across the country and especially in the overwhelming defeat of the United Progressive Alliance party. 2. DEFENSE STRATEGY Unique and engaging experiences including interest in new technologies, live music, novel drinking and dining out experiences, exploring exotic cooking, and high- adrenaline travel adventure. 3. RESILIENCE STRATEGY Unleashing potential in innovation and creativity, launching start-ups, posting online content, and performing in bands and as stand-up comedians. For brand marketers who want to reach today’s Indian youth, the following themes are likely to resonate with them: advocating for positive social change, indulging in unique and engaging experiences, and expressing creativity in pursuit of success. YOUTH MARKETING To reach Indian youth know their coping strategies Rinku Roy Choudhury Assistant Vice President Strategic Planning Director JWT rinku.ray@jwt.com DIVERSITY Make sense of the “many Indias” to succeed in complex market The Indian market is composed of a number of distinct socio-economic clusters, each different from the other. These clusters are characterized by homogeneity in tastes and culture across different demographic strata – probably caused by the deeply embedded codes of India’s ancient civilization. Street food is a great example. The same street food, balls of deep-fried bread with various fillings, can be called golgappa, panipuri or phuchka, depending on the region, yet they’re equally popular across income classes. This complexity applies to festivals and movies too. Marketers have had great ideas to leverage this diversity – whether it is Frito Lay’s regional innovation centers to develop local snack foods or Asian Paints’ attempt to win over the Bengali consumer through deep and meaningful association with the annual Hindu Durga Puja Festival. More such ideas are needed to win in the complex Indian marketplace. Soumitra Sengupta Group Account Director Millward Brown soumitra.sengupta@millwardbrown.com Our Insights TOP 50 Most Valuable Indian Brands 2014
  • 84. Part 3 // The India Top 50 - Our Insights TOP 50 Most Valuable Indian Bands 2014 171170 DIVERSITY In diverse India, ads that win in Delhi may fail in Mumbai ECOMMERCE Even low-interest products, like tires, now sold online Women shocked us when they went all out and ordered clothes and shoes online. A huge change considering that they forsook the fitting room and relied on what the online retailer’s website promised. Now we see a smaller change, but with large implications – buying car tires online. Despite having a wide choice of tires to choose from, the consumer, more often than not, ends up buying a tire that a dealer wants to sell. A tire purchase is probably the lowest involvement decision made when it comes to a car. However, we see this changing. More and more websites are attracting both consumers making their tire purchase decision online, and auto enthusiasts keeping track of new tire-related products and technologies. Through a website one can choose and compare prices and buy tires and select a convenient time slot for a fitting service. Tires can be delivered – and installed – at the consumer’s home, place of work or parking spot. Fad or trend? Only time will tell. However, the rules of selling tires in India will be rewritten. And those new rules will impact the online presence of other low-interest product categories. There are many Indias. MNCs (Multinational Corporations) entering India often learn this fact the hard way. The country splits into six roughly homogenous geographic clusters that inform how consumers respond to advertising. While the appeal of children in slice-of- life situations is universal across clusters, celebrity appeal differs. TV personalities work in Mumbai but not in parts of Uttar Pradesh in the North. Similarly, appeals to the heart work in Delhi, but an appeal to the head is necessary for an ad to work well in the South. Glamour and style works well in Delhi, but a more subtle expression of sensuality, perhaps a dewdrop on parched skin, works in West Bengal. Understanding this phenomenon is critical for brand success in India. Having analyzed the implications for TV commercials, Millward Brown continues to examine and codify the challenges and opportunities for print and other media. YOUTH MARKETING To gain respect of youth, offer reality, not fantasy Shriya Sengupta Group Planning Head Ogilvy & Mather shriya.sengupta@ogilvy.com Mayank Agarwal Marketing and Business Development Director Millward Brown mayank.agarwal@millwardbrown.com Zubin Tatna National Director, Integrated Planning MEC zubin.tatna@mecglobal.com RURAL MARKETING Urban migrant workers influence choice in rural India Marketers have often resorted to “influencer” marketing in rural markets by reaching out to the clichéd, easy to identify Sarpanch, the elected community leader. However, in the last decade influence of the Sarpanch has been diluted by several factors, including NGO outreach, women’s education, regional language media, improved marketing infrastructure, and “pester power” – the influence of children on their parent’s purchasing. The migrant worker is the new influencer. Driven to cities in search of a livelihood, the rural migrant young person represents a hero archetype, a breadwinner braving the unfamiliar to provide for the family back home. As rural insiders who have personally experienced urban India, their opinions and brand choices carry significant weight. This phenomenon also highlights a shift in social perspective. While the Sarpanch represents a keeper of keys who helps keep out external influences, the young migrant is seen as a curator of urban experiences, helping rural India take a peek into the urban life, made aspirational by media exposure. As marketers, targeting this small, localized and receptive community of migrant workers is a powerful means of delivering brand advocacy and generating demand in the rural markets, without even stepping on rural soil. Mehul Shah Head – Strategic Planning Contract Mumbai mehul.shah@contractindia.co.in Our Insights You’re 22 already and you haven’t been to Egypt yet? Along with the usual peer and family pressures, youth today are facing an added expectation called, “Twenty- somethings must do this.” And they must do it – test their options and experience many adventures – by the self-imposed deadline of age 30. To an extent, young people feel compelled to live the fantasies their favorite brands create. Brands need to be sensitive to the stress these fantasies potentially produce. Brands have an opportunity to help young people aspire to become their genuine selves, not a media-created ideal. Brands can tell the youth that it’s okay to be dependent on your parents for a while, or it’s okay to have only traveled only a limited amount or to focus on building career. Such brands will achieve differentiation and respect.
  • 85. Part 3 // The India Top 50 - Brand Profiles A major private provider of life insurance, ICICI Prudential is a joint venture of India’s ICICI Bank and the international financial services company Prudential plc, based in the UK. The partners formed the company in 2000, the year India reformed its insurance regulations, opening the sector to private companies. They recognized an opportunity to meet the insurance needs of India’s rising middle class with a combination of local market knowledge and insurance industry expertise. With the tagline, “We are changing, too,” ICICI Prudential attempts to communicate that it is keeping pace with the Indian insurance market, which is rapidly evolving with new products and players as consumers have more disposable income and view insurance as part of their financial planning portfolio. To serve the needs of these consumers, the brand developed a flexible menu of products that can be customized according to life stage. And to improve sales and renewals, and speed claims, ICICI Prudential simplified interaction with customers and has its representatives conduct much of their business using tablets. The company’s social action agenda focuses on these areas: financial inclusion; health, education and job training for children and young people; and encouraging company employee volunteerism. In a partnership with Teach for India, ICICI Prudential keeps employees on the payroll during their two-year teaching assignments. Company ICICI Prudential Life Insurance Company Limited Brand Value US$ 372 Million Headquarter City Mumbai Industry Insurance Year Brand Formed 2000 Life insurance brand grows with the market 173172 ICICI Prudential TOP 50 Most Valuable Indian Brands 2014
  • 86. 175174 Part 3 // The India Top 50 - Brand Profiles HDFC Life is among India’s leading life insurance providers, offering both individual and group coverage that includes life and health policies; savings and investment products, and specialized offerings for women and children. The company markets through a network of almost 500 branches across over 900 cities and towns, and with bankassurance partners and Non-Banking Financial Corporations (NBFCs). To reach younger consumers, HDFC Life maintains a growing presence in social media. HDFC Life recently standardized the visual look of its brand to more effectively communicate, and it improved the comfort of branch offices with an initiative called Branch Health. The brand also made it easier for customers to transact business, even initiate a claim, on its website. Although the financial needs of India’s middle class drives the business, HDFC Life makes its products accessible to individuals living in rural areas, as part of the corporate commitment to the development of India, which it also manifests in myriad philanthropic endeavors. HDFC Life is a joint venture between Housing Development Finance Corporation Limited (HDFC), an Indian financial services company started in 1977, and Standard Life plc, a financial services provider based in Edinburgh, Scotland, and established in 1825. The partners formed HDFC Life in 2000, the year India opened the insurance sector to private investment. Company HDFC Life Brand Value US$ 367 Million Headquarter City Mumbai Industry Insurance Year Brand Formed 2000 Insurer keeps brand visible on social media HDFC Life TOP 50 Most Valuable Indian Brands 2014
  • 87. Part 3 // The India Top 50 - Brand Profiles Kwality Wall’s makes and markets frozen desserts and snack products distributed in India and neighboring countries. Products come in cones, cups, and as pops and in many flavors. A wide range, including Carte D’or, Cornetto and Paddle Pops, appeals to adults, teens, and children. To reach an audience of young and health conscious consumers, Kwality Wall’s introduced a product called Fruttare, in 2012, positioning it as India’s first ice candy made with real fruit juice and pulp, and promoting the product with a Facebook campaign. Kwality Wall’s reinforces its presence in major Indian cities with vendors selling from Kwality Wall’s carts, and with Swirl’s frozen dessert parlors, where the core concept is, “Create your own Happiness.” Kwality Wall’s positions itself as a brand that spreads happiness, symbolized by the brand’s heart-shaped logo that corporate parent Unilever uses for a variety of dessert and snack brands in over 40 countries. Founded in 1956, Kwality was the first Indian company to make and sell ice cream on a commercial scale. When the brand became part of Hindustan Unilever in 1993, the corporate parent added the name of Unilever’s UK ice cream, Wall’s, making the Indian brand Kwality Wall’s. Company Hindustan Unilever Brand Value US$ 328 Million Headquarter City Mumbai Industry Food and Dairy Year Brand Formed 1993 Frozen desserts sell as taste of happiness 177176 Kwality Wall’s TOP 50 Most Valuable Indian Brands 2014
  • 88. Part 3 // The India Top 50 - Brand Profiles Rin is an Indian laundry soap and detergent brand. Its positioning as a cleaner that produces brighter whites dates to the brand’s market introduction, in 1969, as a soap bar with concentrated whitening ingredients. The brand now is available in several forms including bars, washing powder, and bleach. It continues to emphasize the ability to produce whiter results. Recent brand extensions, such as Rin Matic, for washing machines, and Rin Perfect Shine also extol this functional benefit. Adding emotional appeal, Rin emphasizes the symbolic importance of clean clothes in enhancing self-image, confidence, and social stature. The brand communicates its whiteness positioning with its logo, a white lightning flash, and its slogan, “Super Whiteness.” Another slogan, “Just a Little Rin,” implies that the concentrated cleaner goes a long way, a price benefit. Rin is a brand of Hindustan Unilever Limited, India’s largest FMCG conglomerate. Company Hindustan Unilever Limited Brand Value US$ 302 Million Headquarter City Mumbai Industry Home Care Year Brand Formed 1969 Soap promotes functional and emotional benefits Rin 179178 TOP 50 Most Valuable Indian Brands 2014
  • 89. 181180 Part 3 // The India Top 50 - Brand Profiles ING Vysya Bank is a leading private multinational bank that operates retail, private, and wholesale banking businesses throughout India, primarily in urban areas, with a network of over 550 branches and 640 ATMs, serving over two million customers. Through its three business sectors the bank serves consumers, farmers and businesses of all sizes, and clients requiring wealth management services. The bank recently launched a mobile platform and is active in social media and brand promotion using outdoor media in particular. When the Dutch ING Group acquired a major stake in the India’s Vysya Bank in 2002, it became the first foreign company to hook up with a private Indian bank, soon after India liberalized regulations. ING gained access to the Indian market. Vysya increased its financial strength. ING Vysya Bank channels most of its public service activities through the ING Vysya Foundation, which focuses on improving education for economically disadvantaged children and is part of the worldwide Chances for Children initiative of the ING Group. India’s Vysya bank was formed in 1930. ING Group, the company’s largest shareholder, is a global financial institution present in over 40 countries. ING Vysya Bank is listed on the National and Bombay Stock Exchanges. Company ING Vysya Bank Limited Brand Value US$ 299 Million Headquarter City Bengaluru Industry Banks Year Brand Formed 2002 Global institution powers locally connected bank ING Vysya Bank TOP 50 Most Valuable Indian Brands 2014
  • 90. Part 3 // The India Top 50 - Brand Profiles Lakmé is one of India’s leading cosmetic and skincare brands. It offers a complete range of beauty products and operates a network of 225 salons in over 50 cities offering services that include hair styling, make-up and spa treatments. Kareena Kapoor, a renowned Bollywood actress, is the current brand ambassador for Lakmé. The brand also is one of the title sponsors of Lakmé Fashion Week, a premier Indian fashion event that takes place twice a year. The event is produced in partnership with IMG Reliance, a joint venture between Reliance Industries Limited, one of India’s largest private sector companies, and IMG Worldwide, the global sports marketing and entertainment agency. Lakmé is owned by Hindustan Unilever Limited, India’s largest FMCG company. Established by a subsidiary of the Tata Group in 1952, Lakmé became the first major cosmetics brand produced in the recently independent India. Tata sold the business in 1996. Company Hindustan Unilever Limited Brand Value US$ 297 Million Headquarter City Mumbai Industry Personal Care Year Brand Formed 1952 Event sponsorship communicates beauty Lakmé 183182 TOP 50 Most Valuable Indian Brands 2014
  • 91. Part 3 // The India Top 50 - Brand Profiles One of the India’s largest public sector banks, Union Bank primarily operates as a lender, extending loans to individuals for home, auto, and education; to small- and medium-size business; and to farmers and other agricultural enterprises. The bank serves around 50 million customers through a network of over 3,900 branches and over 6,400 ATMs, predominately in the northern part of the country and spanning both rural and urban areas. It operates two international branches, in Dubai and Hong Kong, and five representative offices, in Abu Dhabi, Beijing, London, Shanghai, and Sydney. To improve customer service as a point of competitive differentiation, the bank recently introduced several initiatives. The Union Family Scheme, for example, attempts to strengthen the bank’s relationships with families that include multiple customers of the bank. To better reach the unbanked, Union Bank plans to deploy 20 vans that will serve as mobile branches. The bank also operates 24 Financial Literacy and Counseling Centers. And Union Bank adopted 60 villages to help advance their socio-economic wellbeing. Union Bank traces its commitment to helping build the nation to the bank’s origins in 1919, and the dedication of its first building two years later, where Mahatma Gandhi spoke. The Indian government nationalized the bank in 1969. Company Union Bank of India Brand Value US$ 273 Million Headquarter City Mumbai Industry Banks Year Brand Formed 1919 Programs attempt to build customer service advantage 185184 Union Bank of India TOP 50 Most Valuable Indian Brands 2014
  • 92. 187186 Part 3 // The India Top 50 - Brand Profiles Since entering the Indian market in 1984, global personal care brand Gillette has gained market share with a range of shaving and oral care products, and with Duracell batteries and flashlights. But it got off to a slow start. Ironically, the brand’s enormous success in developed markets slowed progress in India because of the different shaving priorities of Indian men. Particularly in rural areas, they have less access to water, may use a hand-held mirror, and are more concerned with safety. After gaining these insights, Gillette developed an affordable, lightweight, simplified razor specifically for Indians and other men with similar needs and concerns. Called Gillette Guard, the razor has gained a large following. Clever marketing helped. Gillette created the tongue- in-cheek group called Women Against Lazy Shaving. A social media campaign encouraged women to lobby their boyfriends and husbands to give up their stubble and adopt a clean-shaven look. Gillette introduced the first safety razor in 1901. Procter & Gamble bought the brand in 2005, about a decade after Gillette entered India. The Gillette experience in India reflects Procter & Gamble’s determination to drives sales in fast growing markets. Company Procter & Gamble Brand Value US$ 236 Million Headquarter City Mumbai Industry Personal Care Year Brand Formed in India 1984 Insights accelerate penetration in India Gillette TOP 50 Most Valuable Indian Brands 2014
  • 93. Part 3 // The India Top 50 - Brand Profiles Good Knight is a leading household insecticide brand. It reaches consumers throughout India and across all demographics with a full range of products to repel and kill insects, including vapors, coils, lotions, aerosols, and electrified mats. The brand differentiates not only with product functionality, but also with attitude. Rather than promoting the deadly effectiveness of its products, Good Knight uses more gentle language to emphasize their benefits. Taglines like, “Protecting happy moments,” and advertising that features family situations illustrate these benefits. And Good Knight continuously innovates to penetrate deeper into the Indian market and reach Indian households that do not use insecticides, particularly in rural areas. To achieve that goal, Good Knight recently introduced Fast Card, a small paper tent that burns slowly and emits a mosquito repelling smoke. It’s priced at one rupee per card. Besides India, the brand is available in Sri Lanka, Bangladesh, Nepal and other South Asian nations. Good Knight plans to enter the African market. Launched in 1984, by Transelektra Domestic Products, Good Knight today is part of the consumer products division of the Godrej Group. Founded in 1897, the Godrej Group is one of India’s largest and oldest conglomerates. Company Godrej Consumer Products Limited Brand Value US$ 219 Million Headquarter City Mumbai Industry Home Care Year Brand Formed 1984 Mosquito repellent focuses on benefits 189188 Good Knight TOP 50 Most Valuable Indian Brands 2014
  • 94. Part 3 // The India Top 50 - Brand Profiles The brand story goes full circle, starting in Ceylon where Sir Thomas Lipton began with the purchase of tea plantations, and moving forward to 1972, when Unilever completed its acquisition of Lipton and marketed it in India through its subsidiary, Hindustan Unilever. Today, Lipton Tea is available in India in a range that includes the traditional Yellow Label, Darjeeling, and more recent entries such as Clear Green Tea, and Iced Tea in several flavors. The brand markets the soothing benefits of tea with the tagline, “Drink Positive.” A social media campaign in India, called, “Laugh Out Loud with Lipton,” invited people to tweet about their most stressful daily experience and rewarded the winning submission. In a recent TV ad, an Indian actress promoted the zero-calorie benefits of Lipton Green Tea. To reach a new generation of tea drinkers worldwide, Lipton recently altered its tea production process to distill more tea essence and reduce bitterness. The brand re-launched Lipton Yellow Label. Collaborating with the Rainforest Alliance, Lipton has focused on sourcing its tea from plantations that are certified for their sustainable cultivation and fair labor practices. Lipton Tea is sold in over 150 countries. Company Hindustan Unilever Limited Brand Value US$ 208 Million Headquarter City Mumbai Industry Soft Drinks Year Brand Formed 1898 Global brand with local roots circles back to India Lipton 191190 TOP 50 Most Valuable Indian Brands 2014
  • 95. Part 3 // The India Top 50 - Our Insights 193192 OFFLINE EXPERIENCE Online world dictates new role for offline experience In a world of ecommerce, what happens to offline? We need to rethink and redefine this channel to create brand loyalty in a promiscuous digital world. Going forward sale channels will undergo role reversals- where online drives sales, offline will drive brand and product experience. Consumers will need to be urged to synergize the conveniences of shopping online with value-added in-store experiences. Brand theatre, iconography, and store design will create unique ambience. Service will be a differentiator. Novel experiences, partnerships, and giveaways will be reasons to share the brand beyond the store. Community and cultural events, cause advocacy, and product demonstrations and trials can engage with a captive real-life audience instead from behind a computer screen. We need to leverage our brand’s inimitable strengths at offline, which is the real-world manifestation of the brand. And some things have a truly visceral essence only when experienced live. You see, no online store can replicate the smell of old books and coffee. Snehasis Bose Head – Strategic Planning Contract Delhi snehasis.bose@contractindia.co.in Kamakshi Thareja Account Planning Director JWT kamakshi.thareja@jwt.com SEGMENTATION Segmentation is unavoidable, successful brands anticipate it Our Insights EMOTIONAL SELLING Emotional selling differentiates from sameness of competition Brands in India have traditionally differentiated themselves with features and benefits. However, with the influence of globalization, new media, low-cost technologies, and heightened competition, products and services are becoming interchangeable. Homogeneity appears to be becoming universal. In this environment, brands need to move from relying exclusively on unique selling propositions and also devise emotional selling propositions. Because emotions affect people at a hidden, subconscious level, an emotional appeal can be more powerful than one based only on features and benefits. Brands should infuse emotion into their narrative, the story that communicates what the brand is, what it means to the consumer and why the consumer should care. The most compelling brands stories don’t tell consumers what to feel, rather they elicit an emotional response. Procter & Gamble, Coke and Pepsi are among the few brands in India that have successfully adopted this approach. And in an increasingly competitive market like India, the emotional approach may be the most reliable way to drive brand preference. Roma Singhal Group Head, Planning Ogilvy roma.singhal@ogilvy.com NEW EXPECTATIONS Consumers seek satisfaction beyond material goods Surekha Poddar Managing Director Millward Brown Mumbai surekha.poddar@millwardbrown.com The changed Indian reality has altered the segmentation question: it is no longer about whether segmentation is necessary; rather it’s about deciding when it makes most sense. Many case studies support this conclusion. In skin care, for example both Fair & Handsome and Fair & Lovely pursue the male grooming market, which barely existed only a decade ago. But how does a brand recognize when segmentation is indicated? Here are four guidelines: 1. Culture shifts signal segmentation opportunities long before the numbers do. Trend-based decisions help brands to start early and hit the market just when a segment gathers a profitable critical mass. 2. A flat innovation curve indicates the need for segmentation. Low innovation categories are ripe for share gain or market expansion through segmentation. 3. Changes in consumer lifestyle open new possibilities. Evolving consumer lifestyles are opportune for vertical segmentation (premium realization) and horizontal segmentation (filling niches as they develop). 4. Growth of substitute categories can drive the need for segmentation. The appearance of substitute categories signals a significant development in consumer behavior that may indicate the need to segment and create a sharper product offering. TOP 50 Most Valuable Indian Brands 2014 As wealth and material goods become more evenly distributed throughout the Indian economy, new expectations and a sense of entitlement are replacing the early sense of appreciation and gratitude. Now “Been there, done that” is too often the default reaction to experiences that once elicited awe and excitement. This phenomenon isn’t specifically Indian. It’s human. The particularly Indian expression reflects the rapid transformation of the nation’s economy from agrarian to industrial and then to service-based and increasingly experiential. With the explosion of choice, combined with high disposable income, products and services that not long ago seemed well beyond reach are today considered commonplace. Less impressed with material goods, consumers are looking for self-improvement and even self-transformation. This trend accounts for the growing popularity of image makeover workshops, cosmetic surgery groups, spiritual gurus, coaching professionals, spas and stem cell banking to treat future health issues. Marketers need to understand and anticipate the needs of this changed consumer who seeks more than the momentary experience.
  • 96. Part 4 Brand Building Best Practices in India
  • 97. Part 4 // The India Top 50 - Brand Building Best Practices Brand experience is the only sustainable advantage in a crowd of like competitors Connect constantly, consistently and constructively Brands tend to forget about customers after closing the transaction. Even their loyalty programs fail to constantly connect. But brands that keep the engagement alive by aligning their beliefs with those of their customers are often able to break the barriers. Example: As part of their commitment to the environment, M•A•C, the cosmetics brand, runs the Back To M•A•C program that rewards customers with a free lipstick when they return six M•A•C primary packaging containers. Be consistent with your brand’s fundamental values Be clear about what your brand stands for in the minds of your consumers and use those values as a filter. Example: From its website to in-store experience, Café Coffee Day uses dialogue to deliver a consistent experience derived from the brand’s fundamental values of “fun place to hangout, talk and get inspired over a cup of coffee.” Its “dialogue box” identity is universal in the signage, quirky comments on the walls, brand tagline and crockery. Look at other categories for inspiration/ideas Thinking outside the category means thinking out of the box. Sending your team as customers on shopping trips to other categories can yield more relevant insights than any brain storming session. Prioritize There are many aspects to creating a unique and memorable customer experience. Implement those ideas that have the highest customer impact and take the least execution effort, while reinforcing your brand promise. Engage your employees and your business partners Customer experience is only as good as the people who deliver it. Your employees and your business partners are the two key resources for delivering this experience wholeheartedly. Unengaged stakeholders means failure even before the process is initiated. For employees, engagement should start at the beginning. Reexamine hiring criteria, measurement criteria, performance appraisal formats, rewards and recognition programs and training programs to ensure complete alignment with the company’s defined experience goals. For business partners, especially where some parts of the customer journey are outsourced (e.g. service centers for cars and durables), the company must clearly articulate and monitor the customer experience. Engaged customers are the best brand ambassadors. They endorse products and services and provide information to other customers, saving the company valuable time and resources. Companies need to develop innovative experiences that leave customers with desired memories and emotions. Only then can brands create lifetime loyalty. Customer acquisition is a brand’s eternal quest. But in today’s world of extensive but similar choices, how do we expect consumers to differentiate among mass merchants such as Big Bazaar, Star Bazaar and Reliance Mart; or Vodafone, Airtel and Idea, leading telecom providers? There is one key differentiator a company can offer to surpass its competitors and drive customer retention and engagement: a uniquely branded customer experience relevant to their needs. Products and offerings can be copied, whereas customer experience is the only competitive advantage that is sustainable and inimitable. Unfortunately, most Indian brands are still battling with the basics of customer service. On the flip side, their customers are evolving much faster. Indian brands do not have the luxury of time to follow a linear trajectory. No longer is the customer just a buyer. Customers are more informed and connected, interacting with each other in online communities to learn more before they buy. They seek reviews and peer recommendations and, more often than not, they value these over expensive company advertisements and product descriptions. Their standards are high and their expectations even higher. To stay on top, brands will have to deliver better customer engagement. Their websites should be easily navigable. Their phone agents should be empathetic and more empowered, their service personnel more informed. Brands must work harder to stay relevant and to stay connected with their customers. Brands must also examine all aspects of the customer experience and align them across all touch points to ensure the brand experience is consistently delivered. Only then will the experience be memorable. Only then will customers return for more. Here are recommendations for designing a great brand experience: Walk the talk Brands must visualize the experience from their customers’ viewpoint. Start with the end in mind: what memories do you wish to create for your customers? How do you want them to feel? First define these and then work backwards to deliver on these emotions and experiences. Example: Disney Parks. The Place Where Dreams Come True. Zoom out Consumers make choices on brands before they even come in contact with them. Think through the entire shopping process, from awareness to decision-making, with a focus on understanding needs and behavior at each stage. Example: Uber, the transportation service, tied up with Restaurant Week India to offer customers a discount on rides to partner restaurants. Uber also has an ongoing incentive for new referrals. Brand Building // Brand Experience 197196 Indian brands must improve this driver of engagement and retention Landor Associates is one of the world’s leading strategic brand consulting and design firms. Founded by Walter Landor in 1941, Landor pioneered many of the research, design, and consulting methods that are now standard in the branding industry. www.landor.com by Gazala Vahanvati Senior Brand Strategist, Landor gazala.vahanvati@landor.com TOP 50 Most Valuable Indian Brands 2014
  • 98. Part 4 // The India Top 50 - Brand Building Best Practices 199198 Total Customer Experience helped drive the rapid rise of ecommerce business The existing customer is your number one brand advocate Knowing your customers is foremost. Customer satisfaction surveys do not suffice. Letting customers speak freely beyond checks and ratings is key. Customers need to be identified distinctly amid the social chatter. Analyzing online and offline conversations leads to powerful insights that can be leveraged to identify, seed and propagate positive word of mouth, as well as improve future products. A brand can thus start becoming part of a future customer’s social consciousness. Know your future customer Segmentation studies suffer from approximation. Consumers evolve every day. Real time data leads to real time intelligence. Data from the store front, sales, clicks and page views on the website, content consumption and conversations all need to be integrated in a way that enables a brand to study patterns and predict who the next customer is going to be. In real time. Present information with consistency across channels A top-notch search engine optimization strategy, even combined with an active engaging social strategy, is not sufficient. The information created and shared by all stakeholders of a brand is present across channels. The information must present a unified, consistent view of the brand. Information is device neutral, and in the mobile first era, it is critical that this information is accessible across devices in the applicable format. Be prepared to engage the empowered customer A potential customer enters into your real or virtual storefront. Are you prepared to handle this empowered customer? Customized user experiences are key to addressing this challenge. A brand can leverage technology to deliver a tailored experience both online and offline. Big data analytics, session/cookie based personalization, tech enabled experience zones are the key tactics. Make a prospect a customer and make the relationship last This is the penultimate step. Traditional buying experiences do not address the problem of the honeymoon period fading away quickly. A personalized and structured welcome and on-boarding strategy can result in the moment of delight lasting over several weeks, even months. Technology plays a crucial role in capturing real time feedback and tailoring the on-boarding experience. Customers also want to belong to a larger community to which they can connect, engage and share experiences. A brand can make this happen. It paves the way for the next step, brand advocacy, and TCE goes full cycle. Until the recent elections, India had experienced the worst slowdown in more than a quarter of a century, which resulted in a sharp decline in consumer confidence. Despite these conditions, the ecommerce sector continued to grow at a rapid rate. Factors driving this rapid ecommerce growth include a sharp rise in Internet usage, doubling in two years to 200 million in 2013, and a favorable demographic landscape. The average age of India’s population is 27, and over 450 million are in the 15-to-34 age group. Over and above these factors, however, there is a focused strategy that now has become a benchmark for the ecommerce industry. This common yet differentiating strategy that cuts through all the successful ecommerce businesses is Total Customer Experience (TCE). TCE is a customer’s journey from the first touch point to the last in a purchase cycle, and then through ownership and repurchase. For a brand that aims to be the most recognized, trusted, bought and recommended, a solid TCE strategy and plan is a must do. Traditionally, TCE was implemented once a customer entered into a brand relationship. Today, a potential customer starts experiencing a brand subconsciously much before he or she even thinks about purchasing. For ecommerce, the online focus is moving from delivering the right product to inducing or seeding purchase by using technology and analytics. And offline every single interaction from the customer service center to the delivery and returns process is aligned with the brand promise. Here are a few key considerations a brand must take into account when building a TCE strategy. Brand Building // Total Customer Experience The lessons apply to brands online and offline across categories Blue Hive India is a joint venture between Wunderman, JWT and Mindshare and was created to increase coordination and synergies among Ford’s WPP agencies and to ensure best practice client partnerships and delivery. www.thebluehive.com by Vivek Das Digital and CRM Lead, Blue Hive, India vivek.das@thebluehive.com TOP 50 Most Valuable Indian Brands 2014
  • 99. Part 4 // The India Top 50 - Brand Building Best Practices Rising incomes, desire for more choice drive growth of FMCG sector like Hindustan Unilever, Procter & Gamble, ITC and Cadbury are adding more premium offerings to their product portfolios. Blurring retail channels Companies are increasingly using retail channels other than the traditional grocers to boost sales and target new consumers. The fastest growing traditional trade channel in India today is chemists. This development is potentially important for FMCG brands because chemists normally offer more display area, attract a different profile of shopper than traditional grocers, and add credibility to the products sold. Companies like Hindustan Unilever, Procter & Gamble, Dabur – the Ayurvedic manufacturer, and cosmetic and health care producer Emami have long sold OTC tablets, diapers, feminine hygiene and other relevant products through the chemist channel. The difference today is that sales of beauty products and premium cosmetics are shifting from neighborhood grocers to chemists. Chemists are driving sales of premium creams, deodorants, soaps, face wash and shampoo. L’Oreal India is pushing its L’Oreal and Garnier brands through this channel. Similarly, ITC is targeting pan plus outlets, tobacco shops that also sell FMCG products, to offer even its premium cookies, cream biscuits and premium deodorants. The strategy is in sharp contrast to that of ITC’s rivals, which sell mostly mid-market confectionery, snacks and shampoo sachets through this channel. As part of the initiative, ITC is also training the panwallahs, pan plus shop owners, to sell soaps, biscuits and noodles. Consumers are mostly purchasing from this channel to top-up their monthly requirements. Digital and mobile use increasing Both Internet and mobile use is increasing dramatically. Indian consumers are researching more on the Internet before making purchase decisions, highlighting the need for companies to build brands online. Mobile ad spending by FMCG companies quadrupled in 2013. For example, Surf Excel advertised its premium liquid product with a digital campaign that helped build consumer awareness of the brand’s stain removal ability, a key benefit. Until 2013, India’s FMCG (Fast Moving Consumer Goods) sector had experienced five consecutive years of double-digit growth. While the healthy expansion then continued for many FMCG categories, overall sector growth moderated because of slower performance in some large categories, such as biscuits, soaps, detergents, and refined oils. These market dynamics suggest that sustained growth for FMCG brands requires both serving existing customers and developing new business. The strategies for growing the FMCG pie include: introducing new products, expanding geographically, stretching to other market segments like premium, and entering alternative distribution channels. Driving the potential expansion of FMCG is the vast size of the Indian market for FMCG products and the increasing desire for choice among Indian consumers. Both Indian and international FMCG brands face great opportunities. Expanding the product portfolio Many brands today are widening their product portfolios to reach new market segments and enter new categories. Procter & Gamble, which already maintains a substantial presence in India, plans to introduce almost its entire product range over the next few years. Hindustan Unilever launched Dove Hair Oil, until recently a category dominated by Indian companies like Marico and Dabur. Brands also are expanding to smaller and rural markets. In 2013, towns with populations under 100,000 grew much faster than the dense urban centers. Cadbury India has increased its sales infrastructure with more refrigerated vending machines and expanded its reach in rural India. Hindustan Unilever is increasing its small town penetration for some of its premium brands, like the detergent Surf Excel. Expanding the premium segment Unlike previous economic slowdowns, where consumers mostly traded down, today they seem willing to buy premium products. Rising incomes, higher aspirations and greater choice drive this attitude shift. Today, the demand for premium products is sufficient for brands to achieve the economies of scale necessary for business viability. That was not the case just a few years ago. And FMCG companies no longer market their premium offering exclusively to urban consumers. With increased purchasing power, consumers in smaller markets and rural areas also are potential customers for premium products. The consumer willingness to spend more for a premium product applies particularly to healthier foods and beverages, such as cornflakes, baked potato chips, diet beverages, juices or green tea. Consequently, companies Brand Building // Expanding FMCG 201200 Both Indian and international brands face great opportunities Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. www.millwardbrown.com by Urmi Saha Account Director, Millward Brown urmi.saha@millwardbrown.com TOP 50 Most Valuable Indian Brands 2014
  • 100. Part 4 // The India Top 50 - Brand Building Best Practices Youth are hacking mainstream culture with a new edgy voice Action Points for reaching the Unsanskaari generation The pressure points The Unsanskaaris are up against ridiculous rules and unwarranted sanctions on their free speech by the self-certified moral brigade. They can’t figure out why the Supreme Court can’t handle same-sex relationships, why there’s a curfew limit on partying in Bangalore or why they have to be over 25 years old to buy liquor in Mumbai. These archaic laws, stubborn old practices and heavy censorship just don’t add up in the minds of young but mature Indians. From the assertion of a Khaap Panchayat, or local council, that chowmein creates hormone imbalance that can lead to rape, to the claim by spiritual leader Baba Ramdev that yoga can “cure” homosexuality, the youth have been dragged into controversies by those who have taken it upon themselves to protect young people from the evil influences of western culture. To counter these ridiculous notions, the Unsanskaaris have employed their sharp wit and reduced this moral high ground to sheer nonsense. In principle, the Unsanskaaris are training their wit on any subject that is outdated, irrelevant, ridiculous or pretentious. For them no topic is taboo, no one is spared. They are in the mood to puncture mainstream conventions and they aren’t missing any opportunities. A line has been drawn and it’s time to take sides. Lessons for brands Brands that continue play it safe and depict the youth as party loving YOLOs (You Only Live Once) without a care in the world risk being irrelevant or even worse, being a part of the mainstream. Marketers need to acknowledge this shift in mood and employ strategies that resolve this tension. There’s an opportunity to create ideas and platforms that channel this prolific creativity, which is showing up organically without much help from official sources. YouTube has recognized their impact and promoted some of these groups via YouTube FanFest – an offline engagement platform for fans to connect with YouTube celebrities. A few brands like Snapdeal, India’s online marketplace, have even started adopting these channels as legitimate advertising opportunities, but have limited their exposure to brand mentions and not-so-subtle plugs. There is huge room to create content in a way that endorses a brand’s point of view without hard- selling the product. A case in point is Chipotle’s “Farmed and Dangerous” video, which promotes the brand’s sustainable farming practices using satire to make a point. This approach of values integration rather than product integration seems to be the apt formula for creating branded content in this space. The success of the Unsanskaaris also points to a growing maturity of this audience. In the past, brands and content makers have contested whether we have a refined palate for intelligent, layered narratives. The viral success of these groups shows that there is a wide appreciation for finer, nuanced story telling, which was probably limited to smaller audiences earlier. The time is ripe for creating ideas and platforms that channel their Unsanskaari cravings and creativity and help them break free. Until that happens they will continue hacking away at mainstream culture and it will get increasingly difficult to engage with them from the wrong side of the fence. Members of the breakaway Unsanskaari generation, born in the post 1991 liberalization era, have a tough time dealing with the dogmas of previous generations. In spite of their potent rocket fuel of ambition, global exposure and self-confidence, they continue to be grounded in a world where someone else sets the agenda. In that world, this generation finds that the media is biased, politics is dirty, laws are archaic, TV entertainment is clichéd and the moral codes thrust upon them are stifling. Mainstream culture has failed them. For some time now they’ve been resorting to jugaad, ingenuity and clever subversion of sanctions to meet their goals. But lately there’s a marked shift in their attitude towards these old world values and impositions. And open platforms like YouTube reveal what’s actually brimming underneath – Indian youth have had enough of the negotiated existence that they’ve been granted. Hacking mainstream culture Comedy forums like All India Bakchod and India Viral Fever have hacked mainstream culture and have made some space for the real voice of the youth to be heard. The biting sarcasm and the liberal use of profanity in their videos are telling signs of a change in tack. They’re ripping apart cultural clichés and are even comfortable mocking their own flaws and insecurities. Their tongue-in-cheek humor allows them to take on burning issues without sounding too abrasive. Our embarrassments, inconveniences, and hypocrisies can no longer hide in the shadows. Topics that were once taboo, are out in the open and the reality of our everyday lives is laid bare by the Unsanskaaris. Brand Building // The Next Generation 203202 Brands need to listen attentively and tailor their content and tone Grey is a global advertising network, part of the WPP Group. Under the banner of “Famously Effective Since 1917,” the agency serves a blue-chip client roster of many of the world’s best known companies. www.grey.com by Devang Raiyani Assistant Vice President, Planning Grey devang.raiyani@grey.com Be unpretentious. This generation can spot a fake from a mile away. Channel the prolific creativity of this generation. Create open platforms. Offer the pure joy of unrestrained, unadulterated experiences. Integrate brand values into the brand narrative. Don’t just sponsor content. Don’t shy away from sophisticated narratives. There’s room for nuanced, intelligent storytelling. This article first appeared in the publication Campaign India. TOP 50 Most Valuable Indian Brands 2014
  • 101. Part 4 // The India Top 50 - Brand Building Best Practices Western brands succeed by understanding eastern customs and traditions We discovered that contrasting perspectives of happiness was the crucial link that explained differing eastern and western attitudes toward consuming sweets. The West has a strong belief in independence and autonomy of the self (individualism). The self is the center of thought, action and motivation; and happiness is found in personal striving and fulfillment of desires. In this context, eating chocolate is a personal pleasure that satisfies a private craving. A lot of chocolate advertising inevitably reflects this individualistic cultural perspective of happiness. In East Asian cultures, the self-in-relationship- with-others (collectivism) is the locus of thought, action and motivation. In contrast to the West, eastern cultures define happiness in terms of interpersonal connectedness and realization of social harmony. From alien treat to Indian sweet Consequently, Indians connect the consumption of sweets with occasions celebrated collectively, and often ritually accompanied by meetha, traditional sweets that are never in short supply at festivals and major life cycle events, such as school graduation, marriage, or the birth of a child. One could argue that it’s not as if people in the West do not celebrate such happy occasions together, but surely there is no ritual mandating sweet consumption. Only in India does sweet meetha perform the role of a happiness ritual. This insight about how meetha is culturally distinct from chocolate formed the heart of our new strategy. We re-purposed Cadbury chocolate as meetha in order to get a share of meetha occasions. We made this strategy more actionable by signing off all communication with the traditional greeting, Kuch meetha ho jaaye! – a call to have something sweet. Over the years, our executions have spanned many traditional meetha celebrations and shubh aarambh, new beginnings of all kinds, such as journeys, new jobs, new purchases and forming new relationships. The consistency of the Kuch meetha ho jaaye! proposition over the last decade has helped Cadbury Dairy Milk assume the role of meetha and it has delivered a massive fillip to the brand’s growth trajectory and the Cadbury bottom line. Lessons for brands Despite globalization, local customs and tastes are as distinct as ever. Ignoring these distinctions is like trying to fit a square peg into a round hole. We also learned that tokenism doesn’t work. Delving deep into Indian culture informed our strategy. It helped us become relevant and, by transposing culture codes, we persuaded a new target audience to view an unaccustomed product experience in a new light. With this new cultural fit, the product became familiar and loved, generating a desire for purchase. Our experience also shows that aligning a brand with the local culture does not always need a new product, but often merely astute positioning in a culturally relevant way. Happy cultural branding! The difference between the East and West is a much-discussed topic, and most of us agree such differences exist and they impact marketing. Yet all the literature and understanding on the subject often goes unrecognized and unused in practice. Instead, most efforts at cultural relevance are superficial at best and usually relegated only to packaging iconography and/or a flavor variant. When large global brands look at new geographies to conquer, many habitually try to change and even transform local tastes and behaviors – usually unsuccessfully. Despite two decades of investment, Kellogg’s still struggles to capture a major share of the Indian breakfast market. Others undertake expensive product re-engineering to be culturally acceptable in new markets, but that approach is time and capital consuming, and risky. McDonald’s and KFC eventually attracted Indian fans, but not before generating public protest about cultural or environmental insensitivity. Our experience with Cadbury Dairy Milk shows that there is a middle way between these two extremes that’s less costly in time and money, but requires deep cultural insight. Solving a cultural mystery Cadbury Dairy Milk started out in India by selling to kids. The brand believed, correctly, that kids would be more open to new tastes than their tradition-bound parents. This approach had unanticipated consequences, however. Cadbury became perceived as an occasional foreign treat for kids. And as people grew up, they grew out of chocolate. In fact, adults rejected chocolate. If cross-cultural acceptance seemed to happen naturally for tea, cricket, even the English language, we wondered, why did the average Indian respond so coldly to this innocuous sweet? Our efforts to understand this phenomenon led us to explore cultural differences more deeply. Brand Building // Bridging Cultures 205204 Cultural insights and relevance can save brands time and money Ogilvy & Mather is a leading communication network in India. The company comprises strong offerings in the following disciplines: advertising, social media, direct marketing, data analytics, retail marketing, rural marketing, activation, public relations and healthcare. www.ogilvy.com by Ganapathy Balagopalan Senior VP Planning, Ogilvy & Mather ganapathy.balagopalan@ogilvy.com TOP 50 Most Valuable Indian Brands 2014
  • 102. Part 5 Resources
  • 103. Part 5 // Resources - Methodology BrandZ™ Brand Valuation Methodology 209208 The brands that appear in this report are the most valuable in India. They were selected for inclusion in the BrandZ™ Top 50 Most Valuable Indian Brands based on the unique and objective BrandZ™ brand valuation methodology that combines extensive and on-going consumer research with rigorous financial analysis. The BrandZ™ valuation methodology can be uniquely distinguished from its competitors by the way we obtain consumer viewpoints. We conduct worldwide, on-going, in-depth quantitative consumer research, and build up a global picture of brands on a category-by-category and country-by-country basis. Globally, our research covers two million consumers and more than 10,000 different brands in over 30 countries. In India we have studied 800 different brands in 60 categories. This intensive, in-market consumer research differentiates the BrandZ™ methodology from competitors that rely only on a panel of “experts” or purely financial and market desk research. Before reviewing the details of this methodology, consider these three fundamental questions: why is brand important; why is brand valuation important; and what makes BrandZ™ the definitive brand valuation tool? Importance of brand Brands embody a core promise of values and benefits consistently delivered. Brands provide clarity and guidance for choices made by companies, consumers, investors and other stakeholders. Brands provide the signposts we need to navigate the consumer and B2B landscapes. At the heart of a brand’s value is its ability to appeal to relevant customers and potential customers. BrandZ™ uniquely measures this appeal and validates it against actual sales performance. Brands that succeed in creating the greatest attraction power are those that are: MEANINGFUL In any category, these brands appeal more, generate greater “love” and meet the individual’s expectations and needs. DIFFERENT These brands are unique in a positive way and “set the trends,” staying ahead of the curve for the benefit of the consumer. SALIENT They come spontaneously to mind as the brand of choice for key needs. Importance of brand valuation Brand valuation is a metric that quantifies the worth of these powerful but intangible corporate assets. It enables brand owners, the investment community and others to evaluate and compare brands and make faster and better-informed decisions. Distinction of BrandZ™ BrandZ™ is the only brand valuation tool that peels away all of the financial and other components of brand value and gets to the core—how much brand alone contributes to corporate value. This core, what we call Brand Contribution, differentiates BrandZ™. Part A We start with the corporation. In some cases, a corporation owns only one brand. All Corporate Earnings come from that brand. In other cases, a corporation owns many brands. And we need to apportion the earnings of the corporation across a portfolio of brands. To make sure we attribute the correct portion of Corporate Earnings to each brand, we analyze financial information from annual reports and other sources, such as Kantar Worldpanel and Kantar Retail. This analysis yields a metric we call the Attribution Rate. We multiply Corporate Earnings by the Attribution Rate to arrive at Branded Earnings, the amount of Corporate Earnings attributed to a particular brand. If the Attribution Rate of a brand is 50 percent, for example, then half the Corporate Earnings are identified as coming from that brand. Part B What happened in the past or even what’s happening today is less important than the prospects for future earnings. Predicting future earnings requires adding another component to our BrandZ™ formula. This component assesses future earnings prospects as a multiple of current earnings. We call this component the Brand Multiple. It’s similar to the calculation used by financial analysts to determine the market value of stocks (Example: 6X earnings or 12X earnings). Information supplied by Bloomberg data helps us calculate a Brand Multiple. We take the Branded Earnings and multiply that number by the Brand Multiple to arrive at what we call Financial Value. We now have the value of the branded business as a proportion of the total value of the corporation. But this branded business value is still not quite the core that we are after. To arrive at Brand Value, we need to peel away a few more layers, such as the rational factors that influence the value of the branded business, for example: price, convenience, availability and distribution. Because a brand exists in the mind of the consumer, we have to assess the brand’s uniqueness and its ability to stand out from the crowd, generate desire and cultivate loyalty. We call this unique role played by brand, Brand Contribution. Here’s what makes BrandZ™ so unique and important. BrandZ™ is the only brand valuation methodology that obtains this customer viewpoint by conducting worldwide on-going, in-depth quantitative consumer research, online and face-to-face, building up a global picture of brands on a category-by-category and country-by-country basis. Our research now covers over two million consumers and more than 10,000 different brands in over 30 countries. Now we take the Financial Value and multiply it by Brand Contribution, which is expressed as a percentage of Financial Value. The result is Brand Value. Brand Value is the dollar amount a brand contributes to the overall value of a corporation. Isolating and measuring this intangible asset reveals an additional source of shareholder value that otherwise would not exist. Introduction The Valuation Process Step 1: Calculating Financial Value Step 2: Calculating Brand Contribution Step 3: Calculating Brand Value TOP 50 Most Valuable Indian Brands 2014
  • 104. Part 5 // Resources - Methodology Why BrandZ™ is the definitive Brand valuation methodology 211210 All brand valuation methodologies are similar - up to a point. All methodologies use financial research and sophisticated mathematical formulas to calculate current and future earnings that can be attributed directly to a brand rather than to the corporation. This exercise produces an important but incomplete picture. What’s missing? The picture of the brand at this point lacks input from the people whose opinions are most important - the consumer. This is where the BrandZ™ methodology and the methodologies of our competitors part company. How does the competition determine the consumer view? Interbrand derives the consumer point of view from panels of experts who contribute their opinions. The Brand Finance methodology employees a complicated accounting method called Royalty Relief Valuation. Why is the BrandZ™ methodology superior? BrandZ™ goes much further. Once we have the important, but incomplete, financial picture of the brand, we communicate with consumers - constantly. Our on-going, in-depth quantitative research includes two million consumers and more than 10,000 brands in over 30 countries. What’s the BrandZ™ benefit? The BrandZ™ methodology produces important benefits for two broad audiences. - Members of the financial community -including analysts, shareholders, investors and CEOs - depend on BrandZ™ for the most reliable and accurate brand value information available. - Brand owners turn to BrandZ™ to more deeply understand the causal links between brand strength, sales and profits and to translate those insights into strategies for building brand equity. TOP 50 Most Valuable Indian Brands 2014
  • 105. 213212 Part 5 // Resources - BrandZ™ Reports BrandZ™ is the definitive resource for brand equity knowledge and insight BrandZ™ Top 100 Most Valuable Global Brands 2014 The report includes brand valuations and profiles of key categories along with analysis and insights about building and sustaining strong brands worldwide. BrandZ™ Top 50 Most Valuable Latin American Brands 2013 The report profiles the most valuable brands of Argentina, Brazil, Chile, Colombia, Mexico, and Peru and explores the socio-economic context for brand growth in the region. The Chinese Golden Weeks in Fast Growth Cities With research and case studies the report examines the shopping attitudes and habits of China’s rising middle class and explores opportunities for brands in many categories. The Chinese New Year in Next Growth Cities The report explores how Chinese families celebrate this ancient festival and describes how the holiday unlocks year-round opportunities for brands and retailers, especially in China’s Lower Tier cities. The Power and Potential of the Chinese Dream The Power and Potential of the Chinese Dream is rich with knowledge and insight and forms part of a growing library of WPP reports about China. It explores the meaning and significance of the Chinese Dream for Chinese consumers and its potential impact on brands. Beyond Trust: Engaging Consumers in the Post- Recession World An Index based on BrandZ™, TrustR measures the extent to which consumers trust and are willing to recommend individual brands. High TrustR correlates with bonding, sales and brand value. Complete information is available from WPP companies. BrandZ™ Top 100 Most Valuable Chinese Brands 2014 The report profiles Chinese brands, outlines major trends driving brand growth and includes commentary on the growing influence of Chinese brands at home and abroad. ValueD: Balancing Desire and Price for Brand Success An index based on BrandZ™, ValueD measures the gap between the consumer’s desire for a brand and perception of the brand’s price. It helps brands optimize sales, profit and positioning. Complete information is available from WPP companies Reports, apps and iPad magazines powered by BrandZ™ www.BrandZ.com Get the BrandZ™ Top 100 Most Valuable Global Brands, the Latin America Top 50, the China Top 100 and many more insightful reports on your smartphone or tablet. To download the apps for the BrandZ™ rankings go to www.BrandZ.com/mobile (for iPhone and Android). The iPad interactive magazine BrandZ™ Top 100 is packed with exclusive content and available from the Apple App store (search for BrandZ 100). BrandZ™ is the world’s largest and most reliable customer-focussed source of brand equity knowledge and insight. To learn more about BrandZ™ data or studies, please visit www.BrandZ.com, or contact any WPP company. BrandZ™ on the move For the iPad magazine search BrandZ 100 on iTunes. For the iPad magazine search BrandZ Latin America on iTunes. For the iPad magazine search Golden Weeks on iTunes. For the iPad magazine search for Chinese New Year on iTunes. TOP 50 Most Valuable Indian Brands 2014
  • 106. Part 5 // Resources - WPP Company Contributors WPP Company Contributors 217216 These companies contributed knowledge, expertise and perspective to the report. Blue Hive India is a joint venture between Wunderman, JWT and Mindshare and was created to increase co-ordination and synergies amongst Ford’s WPP agencies and to ensure ‘best practice’ client partnerships and delivery. Blue Hive handles all aspects of Ford’s marketing, including above-the-line, digital, DM, CRM and media planning. Blue Hive offers a full service, integrated offering, created to respond to the rapidly changing consumer and media landscapes. All disciplines and tribes have been physically co-located and work in a totally ‘open and inclusive’ manner, located in Gurgaon, Delhi NCR. www.thebluehive.com Rajeev Rakshit Managing Partner, Blue Hive India rajeev.rakshit@thebluehive.com Contract, a member of the JWT network, is an integrated and independent communications company that specializes in four practices viz. Advertising, Consulting, Design and Digital. The latter are driven through the three specialist verticals – Core Consulting, Design Sutra and iContract. It operates through three offices in Mumbai, Delhi and Bangalore with 300 plus people. Contract creates brand conversations for some of India’s most admired and iconic brands including brands such as Asian Paints, Acer, Amira Pure Foods, Britannia, Dabur, Dominos, Dainik Jagran, Edelweiss, Godrej, HSBC, Jaypee Associates, JK Tyres, Kraft- Cadbury(Mondelez), Microsoft, NIIT, Provogue, Paytm, RNA Corp, Revlon, STAR Plus, Sahara Group, Shoppers Stop, Shell, Sony Music India, Sugar Free, Slice, Ten Sports, Tata Motors (International Market), Tata Tele Services, Tata Docomo, Tata Photon, USL and UTI Mutual Fund amongst others. www.contractindia.co.in Mr. Rana Barua Chief Executive officer rana.barua@contractindia.co.in Grey is a global advertising network. Under the banner of “Famously Effective Since 1917,” the agency serves a blue-chip client roster of many of the world’s best known companies: Procter & Gamble, GlaxoSmithKline, Diageo, Pfizer, Canon, 3M, Eli Lilly, Boehringer Ingelheim and Allianz. In Asia, Grey Group covers 28 cities in 16 countries and manages branding for some of the biggest brands. In India, the agency has prestigious clients like Britannia, Honda, Dell, P&G, ITC, Ferrero, Adobe, DHL, Volkswagen, Star, GSK, Indian Oil, Big FM, Fox Traveller, NGC & Tea Board among others. Grey India has offices in Mumbai, Delhi, Bangalore & Kolkata. www.grey.com Mr Sunil Lulla Chairman & Managing Director sunil.lulla@grey.com GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including Mindshare, Maxus, MEC, MediaCom, and Motivator in India. Our primary purpose is to maximize the performance of WPP’s media communications agencies on behalf of our clients, our stakeholders and our people by operating as a parent and collaborator in performance- enhancing activities such as trading, content creation, sports, digital, finance, proprietary tool development and other business-critical capabilities. The agencies that comprise GroupM are all global operations in their own right with leading market positions. The focus of GroupM is the intelligent application of physical and intellectual scale to benefit trading, innovation, and new communication services, to bring competitive advantage to our clients and our companies. www.groupm.com CVL Srinivas CEO, GroupM South Asia cvl.srinivas@groupm.com JWT is South Asia’s leading and most admired marketing communications agency that offers a truly integrated network across India, Sri Lanka and Nepal. JWT India provides powerful 360 degrees total communication solutions to its clients from across its six offices in the country. Hungama Digital Services and Social Wavelength for digital; Encompass for experiential marketing; Design@JWT for branding architecture, Thompson Social for social development sector communications; Design C for 3D displays and exhibitions; and JWT Rural for rural communications. India’s best and most admired blue chip clients work with JWT. These include Airtel, Pepsico, FritoLay, ITC, Godrej, Hindustan Unilever, GSK Consumer Healthcare, Hero Moto Corp, Ford, Nike, Nestle, Nokia, UB, Kingfisher, Kellogg’s, Tisco and Exide among others. JWT has swept awards across National and International award shows this year, making it the most awarded Indian agency at Cannes and Goafest 2014. www.jwt.com Colvyn Harris CEO colvyn.harris@jwt.com Genesis Burson-Marsteller is a leading public relations and public affairs consultancy that delivers integrated communication services to some of the best global and Indian companies. Our focus is on creating real measurable impact on the client’s business through evidence based, ideas driven and result oriented campaigns. The network we have created across South Asia includes wholly owned offices in seven of India’s key metros and a strong affiliate footprint in over 200 cities across India and in neighbouring countries like Sri Lanka, Bangladesh, Pakistan, Bhutan and Nepal. Committed to Being More, we are one seamless team that has a common purpose and attitude: integrated across four practices (namely, Brand and Consumer, Corporate and Financial, Telecom and Technology as well as Health and Wellness) and Centres of Excellence (Public Affairs, Corporate Responsibility, Digital Studio, Client Studio, Step Up, The Outstanding Speakers Bureau, The Content & Design Bureau, Crisis & Issues Cluster, The GBM Newsroom), to assist clients achieve their business objectives. www.burson-marsteller.com Deepshikha Dharmaraj Chief Marketing & Growth Officer deepshikha.dharmaraj@bm.com TOP 50 Most Valuable Indian Brands 2014
  • 107. Part 5 // Resources - WPP Company Contributors 219218 Maxus is a global network of local media agencies with services including communications strategy, media planning and buying, digital marketing, social media strategy, SEO, PPC, direct response media, data analytics, and marketing ROI evaluation. The team of around 2,000 people across 55 markets worldwide work for some of the world’s most well-known advertisers, and Maxus has been the fastest growing agency network in 2009, 2010, 2011 and 2012. (Source: RECMA 2013) Maxus is part of GroupM, the world’s largest media investment management group that serves as the parent company for all of WPP’s media agencies, and which buys over one third of the world’s media every day. www.maxusglobal.com Kartik Sharma Managing Director, Maxus South Asia kartik.sharma@maxusglobal.com Founded in 1931 by rugby Springbok Fred Smollan, the Smollan Group opened its doors initially as a Regional South African based sales agency. With its pedigree in fieldmarketing, the Group has evolved to offer a diverse range of outsourced marketing services to multiple channels across a broad spectrum of industries. With unrivalled industry experience, exceptional human platform and sophisticated systems, the Group has a legacy of providing consistent excellence in operational execution. This proud past and solid foundation stands the Group in good stead as we look to the future as a global business. With a dedicated and growing team of 50,000 members spread across the world, we believe in even greater things to come over the next 80 years. www.smollan.co.za Rajan Zachariah Country Head rajan.zachariah@smollan.co.in Mindshare is a global media and marketing services network with billings in excess of $27.8 billion (source: RECMA). The network consists of 113 offices in 82 countries throughout North America, Latin America, Europe, Middle East, and Asia Pacific, each dedicated to forging competitive marketing advantage for businesses and their brands. Mindshare is part of GroupM, which oversees the media investment management sector for WPP, the world’s leading communications services group. www.mindshareworld.com Ravi Rao Leader, Mindshare, South Asia ravi.rao@mindshareworld.com MEC is a global media company specializing in the development, management and implementation of communications campaigns, locally, nationally, regionally and internationally. MEC delivers value by creating, implementing and measuring communication solutions that actively engage people with brands. With 4,000 highly talented and motivated people in 84 countries, it is one of the top media communications specialists and is part of GroupM. Their services include communication channel planning, research and consumer insight, media investment management, worldwide client services, sponsorship and entertainment marketing and through its digital division a full service digital media consultancy. www.mecglobal.co.uk T Gangadhar Managing Director, MEC India t.gangadhar@mecglobal.com Consistently ranked among the world’s top digital, CRM and mobile agencies, Wunderman delivers deeply connected brand experiences, consumer engagements, data and insights, and health care marketing solutions that build brands and businesses. We blend creative, data and technology to connect customers to moments that truly matter, ranging from big iconic moments to deeply personal moments that recognize individuality. Founded by Lester Wunderman in 1958, the agency now has 175 offices in 60 countries. Best Buy, Citibank, Coca- Cola, Ford, Microsoft, Novartis, Pfizer, Telefónica, Shell, United Health Group and leading local brands are among our clients. Wunderman is part of the Young & Rubicam Group. www.wunderman.co.uk Rahul Guha Managing Director, India rahul.guha@wunderman.com WPP is the world’s largest communications services group with billings of US$72.3 billion and revenues of US$17.3 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing, specialist communications and retail and shopper marketing. The company employs nearly 175,000 people (including associates) in over 3,000 offices across 110 countries. For more information, visit www.wpp.com. WPP was named Holding Company of the Year at the 2014 Cannes Lions International Festival of Creativity for the fourth year running. WPP was also named, for the third consecutive year, the World’s Most Effective Holding Company in the 2014 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications. www.wpp.com Ogilvy & Mather is a leading communication network in India. The company comprises strong offerings in the following disciplines: advertising, social media, direct marketing, data analytics, retail marketing, rural marketing, activation, public relations and healthcare. It has been a pioneer in the industry in many of these disciplines. It also offers marketing services for global clients out of its Bangalore office. The network is a much awarded and recognised agency in Asia Pacific- both in creativity and effectiveness - the twin peaks of communication. In fact, at the most recent Asia Marketing Effectiveness Awards in May 2014, Ogilvy Mumbai was named the most effective office in Asia Pacific. Ogilvy India has helped build some of India’s largest brands for companies like Vodafone, Unilever, Lenovo, IBM, Mondelez, Pernod Ricard, Tata Motors, Pidilite Industries Ltd, Bajaj Auto, Titan Industries Ltd, Asian Paints and Tata Sky to name a few. Worldwide, Ogilvy & Mather is one of the largest marketing communication companies. It was named the Cannes Lions Network of the Year for three consecutive years since 2012; and also won the World’s most Effective Agency Network from the Effie World Index in 2012 and 2013. www.ogilvy.com Piyush Pandey Executive Chairman and Creative Director, Ogilvy South Asia piyush.pandey@ogilvy.com Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research- based qualitative and quantitative solutions. Specialist global practices include Millward Brown Digital (a leader in digital effectiveness and intelligence), Firefly Millward Brown (our global qualitative network), a Neuroscience Practice (using neuroscience to optimize the value of traditional research techniques), and Millward Brown Vermeer (a strategy consultancy helping companies maximize financial returns on brand and marketing investments). Millward Brown operates in more than 55 countries and is part of Kantar, WPP’s data investment management division. www.millwardbrown.com Prasun Basu Managing Director, Millward Brown South Asia prasun.basu@millwardbrown.com Landor Associates is one of the world’s leading strategic brand consulting and design firms. Founded by Walter Landor in 1941, Landor pioneered many of the research, design, and consulting methods that are now standard in the branding industry. Landor’s holistic approach to branding is a balance of rigorous, business-driven thinking and exceptional creativity. Its work spans the full breadth of branding services. With 26 offices in 20 countries, Landor’s current and past clients include some of India’s most recognised brands like Anita Dongre, Café Coffee Day, ICICI Bank, Jet Airways, Lavasa, Mahindra, Reliance ADAG, Taj Group, Tata Global Beverages, The Park Hotels and World Gold Council. www.landor.com Lulu Raghavan Managing Director lulu.raghavan@landor.com TOP 50 Most Valuable Indian Brands 2014
  • 108. Part 5 // Resources - WPP Brand Experts 221220 Brand building experts who contributed to the report These individuals, from WPP companies, provided thought leadership, research, analysis and insight to the report. Divya Khanna JWT Ritesh Shetty Millward Brown Aniruddha Khandekar Ogilvy Rajan Zachariah Smollan India Rasika Fernandes Ogilvy Vivek Das Blue Hive Mayank Agarwal Millward Brown Ganapathy Balagopalan Ogilvy Upasana Roy Ogilvy Deep Singh JWT Reny Thomas Ogilvy Devang Raiyani GREY Binata Banerjee Millward Brown Riddhi Shah Millward Brown Soumitra Sengupta Millward Brown Mythili Chandrasekar JWT Kamakshi Thareja JWT Roma Singhal Ogilvy Surekha Poddar Millward Brown Shriya Sengupta Ogilvy Priti Murthy Maxus Soumitra Patnekar GREY Snehasis Bose Contract Delhi Sumant Bhattacharya GREY Urmi Saha Millward Brown Prasun Basu Millward Brown Rinku Ray JWT Sandeep Pandey Mindshare Shaziya Khan JWT Mehul Shah Contract Mumbai Aparna Jain Ogilvy Gazala Vahanvati Landor Associates Dilip Garga Ogilvy Noor Samra JWT Zubin Tatna MEC TOP 50 Most Valuable Indian Brands 2014
  • 109. Part 5 // Resources - India Top 50 Team 223222 BrandZ™ India Top 50 Team These individuals created the report, providing valuations, research, analysis and insight, editorial, photography, production, marketing and communications. With special thanks and appreciation to: Genesis Burson Marsteller // Deepshikha Dharmaraj, Vaijayanthi Kari, Radhika Mehta and Krishna Vilasini GroupM // CVL Srinivas JWT // Shaziya Khan, Deep Singh and Bindu Sethi Millward Brown // Uday Kagal, Bhargavi Manohar, Parnika Mehta, Madhavan Nair, Sakina Pittalwala, Katie Pearce, Mausami Prasad, Muralidhar Salvateeswaran, Jainam Shah, Baljit Thandi and Peter Walshe Ogilvy // Genevieve Lopes, Pooja Motwani, B Ramanathan and Madhukar Sabnavis WPP // Rebecca Rogers and Margarita Ylla WPP India // Ranjan Kapur David Roth David Roth is the CEO of the Store WPP for Europe, the Middle East, Africa and Asia, and leads the BrandZ™ worldwide project. Prior to joining WPP David was main board Director of the international retailer, B&Q. Mayank Agarwal Mayank Agarwal is the Marketing and Business Development Director, Mumbai, Millward Brown South Asia. He manages the content, marketing, and communication for BrandZ™ India. Doreen Wang Doreen Wang is the Global Head of BrandZ™ for Millward Brown, leading the brand equity research, valuation and external communication engagements for the global and regional BrandZ™ rankings. Gaurav Mittal Gaurav Mittal is a Research Analyst of BrandZ™ valuation at Millward Brown. He is responsible for financial analysis, brand profiles research and commercial validation for the BrandZ™ rankings. Meenakshi Rawat Meenakshi Rawat is a Consultant at Millward Brown. She is part of the BrandZ™ team which is responsible for BrandZ™ rankings. Her work involves conducting financial analysis, researching brands and performing valuations. Nisha Rawat Nisha Rawat is a professional writer specializing in business writing. By profession, she is an editor with Macmillan Publishing Group. She is one of the writers of the BrandZ™ India report. Amanda Harrison Amanda Harrison serves as Project and Events Manager for The Store WPP and Project Manager for the BrandZ™ Most Valuable Chinese, Latin American and Indian brands reports, as well as the Chinese New Year, Golden Weeks and Chinese Dream reports. Nimai Swain Nimai Swain is Group Account Director, Millward Brown Delhi. He is the internal BrandZ™ champion for Millward Brown India, responsible for design, management and communication. Elspeth Cheung Elspeth Cheung is Global BrandZ™ Valuation Director for Millward Brown. She is responsible for the BrandZ™valuation, ranking analysis, client management and external communication for the global and regional BrandZ™ rankings and other brand valuation engagements. Aman Aggarwal Aman Aggarwal is Research Analyst for BrandZ™ valuation at Millward Brown. He is responsible for financial analysis, brand profiles research and commercial validation for the BrandZ™ rankings. Prasun Basu Prasun Basu is Managing Director – Millward Brown, South Asia Region. He is closely involved with the launch of BrandZ™ India. Cecilie Østergren Cecilie Østergren is a professional photographer, based in Shanghai, who has worked closely with WPP agencies since 2009. Cecilie specializes in documentary, consumer insight and portraits. She’s travelled extensively in China, Brazil, India and other locations to photograph images for the BrandZ™ reports. Nick Cooper Nick Cooper is Senior Partner of Millward Brown Vermeer. He leads the overall practice in Europe and the development of brand strategy, portfolio optimization and brand planning. Binata Banerjee Binata is Senior Research Executive, Millward Brown India. She is involved in conceptualizing the insights and key takeaways for BrandZ™ India. Natasha Perera Natasha Perera is a Financial Analyst at Millward Brown. She is involved in brand valuation, applying the BrandZ™ valuation methodology to analyze brands, determine the brand value and to generate the information that appears in the BrandZ™ ranking studies. Ken Schept Ken Schept is a professional writer specializing in articles and reports about brands, marketing and retailing. For the past several years he’s helped develop the BrandZ™ library of reports. He spent much of his career as an editor with a leading US business media publisher. Surekha Poddar Surekha Poddar is the Managing Director, Mumbai, Millward Brown South Asia. She is the head for the Mumbai office and leads the marketing and corporate communications in India. She is responsible overall for the launch of BrandZ™ in India. TOP 50 Most Valuable Indian Brands 2014
  • 110. Part 5 // Resources 225224 The BrandZ™ brand valuation contact details The brand valuations in the BrandZ™ Top 50 Most Valuable Indian Brands are produced by Millward Brown using financial data from Bloomberg. The consumer viewpoint is derived from the BrandZ™ database. Established in 1998 and constantly updated, this database of brand analytics and equity is the world’s largest, containing over two million consumer interviews about more than 10,000 different brands in over 30 countries. For further information about BrandZ™ contact any WPP company or: Doreen Wang Global Director, BrandZ™ Millward Brown +1 212 548 7231 doreen.wang@millwardbrown.com Elspeth Cheung Global BrandZ™ Valuation Director, BrandZ™ Millward Brown +44 (0) 20 7126 5174 elspeth.cheung@millwardbrown.com Martin Guerrieria Global Research Director, BrandZ™ Millward Brown +44 (0) 207 126 5073 martin.guerrieria@millwardbrown.com Bloomberg The Bloomberg Professional service is the source of real- time and historical financial news and information for central banks, investment institutions, commercial banks, government offices and agencies, law firms, corporations and news organizations in over 150 countries. For more information, please visit www.bloomberg.com We help build valuable brands Our WPP companies have been engaged in India for more than 85 years. Today, 13,000 people including associates work in 63 companies and 245 offices across India, in Mumbai, Delhi, Bengaluru, Chennai, Kolkata, Hyderabad and many other cities. They provide the advertising, marketing, insight, media, digital, retail, shopper marketing, PR, knowledge, insight, and implementation necessary to understand India and build and sustain brand value. To learn more about how to apply this expertise to benefit your brand, please contact any of the WPP companies that contributed to this report or contact: Ranjan Kapur WPP Country Manager, India rkapur@wpp.com Belinda Rabano Head of Corporate Communications, WPP Asia Pacific brabano@wpp.com For further information about WPP companies worldwide, please visit: www.wpp.com/wpp/companies or contact: David Roth CEO The Store, WPP EMEA and Asia droth@wpp.com WPP in India TOP 50 Most Valuable Indian Brands 2014
  • 111. If you are interested in brands you need this app. Valuation data and a lot more at your fingertips. • View latest BrandZ™ valuation ranking from across the world • Latest real time brand news • Create you own ranking tables and sort by value and brand • Create interactive graphs for the brands you want to compare • Share articles and data across social media • View individual brand profiles and videos • Unique content and Insights • Access on and offline • On any Android and Apple device Free and available from www.BrandZ.com/mobile or the Apple and Android app stores. Search for BrandZ100. Get the free app BrandZ™ Mobile
  • 112. Powered by www.brandz.com Writing Ken Schept Photography Cecilie Østergren Design Kay Blewett

×