Posts Tagged ‘Nokia’
What is a Brand?
The names Tata, Nokia, Google and many others are one of the biggest brands in the world. So what really is the name Tata or Google is? Is it just a name or more than that?
I define Brand as ‘a network of experience’. Let us understand brands with the example of Google. If I ask you to write a phrase that describes Google, most people would say innovation, technology, cutting-edge research, great brains, great technology, information to the world etc.
Take a moment and think why we say those phrases.
- Because we experience the innovation of Google.
- Because we hear people experiencing the innovation of Google.
- Because we hear the aspirations of Google
- Because we see such brains at Google
- Because Google says so
and some other reasons.
If you observe carefully, what we said is what we experienced. A brand is an experience, in fact, it is the perception derived out of the experience. Suppose you used a Tata car for some years and your experience is as follows:
Experience: The car gives good mileage and requires minimum maintenance.
Perception: You automatically create a perception that Tata cars require less maintenance and have great mileage. Wrong!! You will actually think ‘Tata’ gives great mileage and requires less maintenance. This is the trick, what we experience is not exactly what we perceive. Why?
When we experience the car, we realize this is something good for us. When we see the name on the steering or anywhere on the car we see ‘Tata’. So whatever good experience we had, we immediately map it to the name ‘Tata’ because that is what we see.
The brand ‘Tata’ is created!!
The qualities of a product are perceived to be the qualities of the name present on the product. Simply, people perceive the qualities of the product to be the qualities of the brand name. Why? Because that is the only way they can distinguish between the products. Later, any product coming out of that brand, we associate the qualities of the brand to the product. It is:
Product Qualities à Brand Qualitiesà New Product Qualities
So remember that brand is a perception. Perception is the result of something. Perception cannot be created but can be influenced.
A brand is what your product is, how your product behaves, the experience of everything, the perception of the product, etc. So, marketers use all these techniques to influence your perception of the brand.
Creating a brand is all about creating a unique experience, which is also called differentiation. Remember this differentiation need not only come from the product, but from any experience.
So when people perceive Woodland shoes to be tough, people perceive Woodland to be tough. So marketers will look for category opportunities where this perception can be leveraged like leather bags, etc.
Once you have a perception. You may
- Look for opportunities to leverage this perception (Woodland example, Tropicana as breakfast)
- Change the perception into something else
- Strengthen the perception and grow into areas which strengthens the brand perception
- Come out of the perception totally
- Leverage the perception across other categories and to enter new markets
So, the perception may be the country of origin of the brand, the visuals used, qualities and almost everything of everything can be used to perceive. So, all these are elements present in brands and branding.
Remember every business action results in a perception, and perception creates your brand. Branding is pretty much the affect and how you influence/manage the affect by using the parameters of perception.
This is the brief introduction about Brands and Branding. Thank you
Brand Positioning and Product Positioning
Brand Positioning is the perception of the brand, and Product positioning is the perception of the product. Your product positioning may or may not influence a change in the brand positioning. Example: Tata Nano is the product and Tata is the brand. The perception of the brand ‘Tata’ changes due to the launch of the product Tata Nano. Similarly, Tropicana positioned as a breakfast drink. Here we are trying to change the perception of the usage of Tropicana (banking on the health perception of the drink) which is a product positioning. There is no change in the brand positioning, however, the brand will be more seen in the household and there will be some affect of this product positioning on the brand.
Similarly, sometimes a change in brand positioning is required and is achieved by new product launches and price modelling etc. Example Van Heusen wants to be seen as a youthful brand, so it launches or comes up with promotions in that line to influence the perception of the consumer.
India is one of the most challenging markets in the world which fooled big marketers and companies across the world. We have over 1500 Gods segmented into 350 broad categories, and we have a God for every single day of the week. There are 9.5 lakh pan shops, 638,667 number of villages, 612 districts, and 28 states in India. This is the country where you see a pan shop and Haagen Daz together, and a bullock cart and a Mercedes in the traffic jams. Indian market is very challenging and it really fascinates me as a marketer.A very large part of Indian population still lives in villages defining the Rural India.
Rural India is very important for many companies and there is tremendous increase in investments and strategies surrounding the rural markets. Rural India Market buys:
- 45% of all soft drinks
- 50% of motorcycles, TVs, cigarettes, washing soap, fans, blades, and a lot others.
Rural Market Opportunities
Few of the companies that are going bullish in the rural markets:
- HUL with its Project Shakti has already has a reach of 1.7 lakh villages, and aspires to reach 5 lakh villages by 2020.
- Indian Tobacco Company (ITC) has a lot of penetration in the rural markets and the eChoupals are a big hit in the rural market.
- Airtel is planning to reach around 2 lakh villages.
- Marico with its most famous brand Parachute has a reach of 1 lakh villages.
- Pepsi and Coke, the Cola giants, have a reach of 70,000 villages.
- Dabur, known for its Lal Dant Manjan and Hajmola, has a reach of 60,000 villages.
- Colgate with its Operation Jagruthi has a reach of over 60,000 villages.
- Mahindra & Mahindra sells most of its SUVs in the rural market.
Mahindra Shubhlabh is India’s largest exporter of fresh produce. Mahindra Shubhlabh engages with farmers in the production of export quality grapes, pomegranates, and apples aimed at delivering to domestic and international markets. It has a huge R&D facility in Pune to research on various modern seeds and saplings.
- Nokia 1100 with its torch is a very big hit in the rural market. It is a perfect example of understanding the needs of the consumer. Nokia realized the need for a torch in the mobile for the rural people as they walk in the dark streets and fields of the village. Nokia is set to release some low cost phones to tap more from the tier-3 and tier-4 markets.
There are other companies like Godrej, ParleG, Asian Paints, Yes Bank, Royal Enfield, ITC and Revlon.
Delivering to the rural markets is a real challenge to many companies. In fact, the whole dynamics of these markets are so different that you need to look at a different product mix containing the 4A’s instead of the traditional 4P’s of marketing:
Acceptability – Build what the consumer wants
Affordability - Make an affordable product
Availability - Distribution plays a key role in the rural markets
Awareness - Don’t promote the brand, demonstrate the product.
Top Media in Rural Markets
Dainik group is the leading newspaper in the rural markets. In the realm of television, we have the following in the descending order of penetration in the rural markets.
- Doordarshan has a reach of 97% of the rural markets in India.
- Zee Cinema which carries with the image of movies being the favourites of rural people.
- B4u movies
- Discovery Hindi
One of the key trends in the rural markets is people changing very quickly from cable to satellite TV. This is because of the hassle-free dish connection of the satellite TV. Most of the dish TV companies like Tata Sky, BIG TV, and Airtel are selling good in the rural markets too. Similarly, Revlon has come up with a lipstick for the rural markets and it is doing very good as against Lakme. This shows that there is huge potential in these markets and it is interesting to see how these trends will transform the lives of the rural people and in turn impact the Indian markets.