Brand Value

Prof. Atul Tandan

Director
MICA
E-mail: Pat@mica.ac.in
 What is a Brand?
“ A brand is name, term, sign, symbol, or design,
or a combination of them, intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those of
competition.”
American Marketing Association (AMA)
Source: Competing for choice: developing winning brand
strategies by Lars Finskud
 What is a Brand?
“ A brand is a complex symbol, it is the
intangible sum of a products attributes, its
name, packaging, and price, its history,
reputation, and the way it is advertised. A
brand is also defined by consumers’
impression of the people who use it, as
well as their own experience.”
Advertising guru David Ogilvy, 1955
Source: Competing for choice: developing winning brand
strategies by Lars Finskud
 What is a Global Brand?
• Global brand is basically the same
product or service everywhere, with
only minor variation (as Coca-Cola
and Guinness)
• Global brand has the same brand
essence, identity and values (as
McDonald’s and Sony do)
• Global brand uses the same strategic
principles and positioning (as Gillette
does)
• Global brand employs the same
marketing mix as far as possible

Source: Branding by Geoffrey Randall

 Brand Rating Definitions
Rating Definition

AAA Extremely strong

AA Very strong

A Strong

BBB Average

BB Under-performing

B Weak

CCC Very weak

CC Extremely Weak

C Failing

Note: In some instances the ratings are altered by the addition

of a plus (+) or (-) Sign to reflect their more detailed positioning in
comparison with the general rating group

Source: Sri Lankan’s most valuable brands. LMD the voice of business. Vol. 13(8),
March 2007, p. 102.
 Brand Value/Power Bases
• Growth rates
• Market share
• History
• Price premiums
• Brand awareness
• Brand’s ability to earn

Source: Sri Lanka’s leading brands. Retrieved May 31, 2007

from http://www2.singer1.com/singer/events/brand_league.html
 India’s 100 Most Valuable Brands
• Image & perception
• Brand awareness
• Brand loyalty
• Brand association
• Brand preferences

Source: 4Ps Business and Marketing Vol. 2, Issue No. 8, 25 May – 7 June 2007, p.88.
 Brand Iceberg
Name
Advertising
Logo
Brand Brand Equities
experience Environment
externally Products and Services

Brand Brand Values

experience Management - control structures
internally Internal Communications
Business Process

Investor Relations
Customer Relations
Training
Quality
Staff Motivation
Knowledge Management
Recruitment Policies
HR Policies & Processes
Technology

Source: http://www.brandchannel.com/images/papers/bankonthebrand.pdf
Multinational Brands
 Global Brands & Culture
• Buyer behavior and consumer needs are driven
by cultural norms
• MNC managers deal with different cultural
environments
• Global business deals with
– Consumers
– Strategic partners
– Distributors
– Competitors with different cultural mindsets
• Cultural heritage provides pride and self-esteem
• Foreign cultures also intrigue local cultures
 Global Brands & Culture

• Cultural environment matters for two main

reasons
– Cultural differences force adaptations of
marketing strategy
• Cultural blunders become costly for MNC
– Embarrassment
– Lost customers
– Legal consequences
– Missed opportunities
– Damage control
– Tarnished reputation
 Global Brands & Culture
• Cultural analysis often pinpoints market opportunities
– Changes in cultural indicators lead to market opportunities
• 300 million children in China
• 157 million children in India (0-6 years)
– Spending power
– Pester power
– Act as a change agent
– To satisfy ignored cultural needs bring competitive edge
• Japanese diaper makers steal the market share of P & G
market by providing thinner diapers by meeting the desires of
Japanese mothers

Source: International Marketing by Rajgopal

 Selected Global Brands
Technology
• Google: Don’t Be Evil
• Google. COM is one of the 5 most popular sites on the
Internet and is used around the world by millions of
people.
• Google is the #1 search engine in the Argentina,
Australia, Belgium, Brazil, Canada, Denmark, France,
Germany, India, Italy, Mexico, Spain, Sweden,
Switzerland, U.K., U.S. (Nielsen//NetRatings 6/05,
based on total number of unique visitors)
• Global unique users per month: 380 million
(Nielsen/NetRatings 8/05)
• 112 international domains
• Global audience: More than 50 percent of Google.com
traffic is from outside the U.S.
 General Electric (GE)
• GE: Imagination at Work
• Today, GE is comprised of Six business
segments aligned for growth with the ability to
compete globally. They are: Commercial
Finance, Infrastructure, Industrial, Healthcare,
Consumer Finance and NBC Universal.
Because of GE's diversified approach to
business, you have not joined one company, but
many companies operating worldwide in key
business areas. It has operations in over 100
countries. 320,000+ employees worldwide.
Manufacturing facilities in 32 countries.
GE Money (India)
 Selected Global Brands
Technology
• Microsoft: Your Potential. Our Passion
• Founded in 1975, Microsoft (Nasdaq "MSFT") is the
worldwide (79 countries) leader in software, services and
solutions that help people and businesses realize their full
potential.
• MS-DOS, .NET, Office XP, 2007 Office system, Windows,
Windows Server, Windows 3.0, Windows 95, Windows 98,
Windows 2000, Windows XP, and Windows Vista are
registered trademarks of Microsoft Corporation. Other
product and company names mentioned herein may be the
trademarks of their respective owners.
Microsoft – Your Potential Our
Passion (Pan Asia)
 Selected Global Brands
Soft Drink
• Coca Cola: The Coke Side of Life
• Today, The Coca-Cola Company is the largest
beverage company with the most extensive
distribution system in the world. The Coca-Cola
Company operates in more than 200 countries.

• Pepsi Cola: More Happy

• The company consists of Frito-Lay North America,
PepsiCo Beverages North America, PepsiCo
International and Quaker Foods North America.
PepsiCo brands are available in nearly 200
countries and territories.
Coca Cola – The Coke Side of Life
(Singapore)
 China Mobile
• China Mobile:
• China Mobile Limited (the "Company", and
together with its subsidiaries, the "Group") was
incorporated in Hong Kong on 3 September
1997. As the leading mobile services provider in
China, the Group boasts the world's largest
unified, contiguous all-digital mobile network and
the world's largest mobile subscriber base. In
2006, the Company was once again selected as
one of the "FT Global 500" by Financial Times,
and the "The World's 2000 Biggest Public
Companies" by Forbes magazine.
 Selected Global Brands
Retail
• Wal-Mart: Always low prices!
• Today, Sam´s gamble is a global company with more than 1.8
million associates worldwide and nearly 6,500 stores and
wholesale clubs across 14 countries.
 Marlboro
• Marlboro: Come the Marlboro country
 Selected Global Brands
Fast Food
• Citi: The Citi Never Sleeps

HSBC: The worlds Local Bank

• HSBC's global markets business is one of the largest of

its kind in the world. It combines sophisticated 24-hour
global coverage with a detailed knowledge of local
markets. Services are offered both online and offline,
through a network of 87 treasury sites in more than 60
countries and territories worldwide.
Citi – The Citi Never Sleeps
(Asia)
 IBM
IBM: “Ideas for Innovators – Get
inspired”
IBM helped pioneer information technology
over the years, and it stands today at the
forefront of a worldwide industry that is
revolutionizing the way in which
enterprises, organizations and people
operate and thrive.
IBM
 Selected Global Brands
Cars
• Toyota: Drive Your Dreams
• Toyota Motor Corporation (TMC) is one of the world’s
leading auto manufacturers, offering a full range of
models. Global sales of its Toyota and Lexus brands,
combined with those of Daihatsu and Hino, totaled 8.81
million units from January 1, 2006 to December 31,
2006. Markets vehicles in more than 170 countries.
• BMW: The Ultimate Driving Machine
• BMW Group activities worldwide are co-ordinated from
the corporation's head office in Munich. A city
landmark, the "four-cylinder" tower at the Olympic park
is the nerve centre for an organisation which covers
over 150 countries.
Toyota – Moving Forward
(India)
 Key Lessons for AAA Brands
• Four R
– Relevance
– Relationship
– Reliability
– Recall
• Six C
– Consistency
– Creative
– Culture
– Consumer
– Communication
– Clarity
Strong Indian Brands
Tata Motors

$2,260 Compact
Tata Motor

India’s biggest maker of trucks and buses has a

tie-up with Fiat to jointly invest $895 million to
develop and roll out passenger cars in India’s
fast-growing auto market. Tata has audacious
plans to develop India’s cheapest car, a $2,260
compact, by 2008. The automaker is a key unit
of the Tata Group, one of India's biggest and
most powerful diversified conglomerates with
some $36 billion in assets.

One-Year Total Return: 22.5%

Site: www.tatamotors.com
 International Business

Tata Motors has launched its popular mini truck, Tata Ace
has got highest international market share in Sri Lanka,
 Tata Motors
• The company’s commercial and passenger vehicles
are already being marketed in several countries like
• Europe
• Africa
• Middle East
• Australia
• South East Asia
• South Asia
• It has assembly operations in Malaysia, Kenya,
Bangladesh, Spain, Ukraine, Russia and Senegal
Tata Motors
TVC - Indica
Watch - Titan
Mahindra & Mahindra
SUV King
Mahindra & Mahindra

Mahindra makes cars and commercial vehicles, and is

India’s No. 1 maker of tractors and sports-utility vehicles.
On top of that, it has tie ups with French carmaker Renault
and U.S. truck maker Navistar. The company’s Scorpio
SUVs are a hit with consumers at home, but profit margins
are under pressure at the moment from rising steel prices.

One-Year Total Return: 65.6%

Site: www.mahindra.com

Mahindra & Mahindra has emerged as a well-known

tractor brand in the US. It is now planning to launch
the Scorpio in the US sports utility vehicle market.
 Mahindra & Mahindra
• Mahindra Automobiles have a strong and growing
presence in international markets
– Yugoslavia,
– Bangladesh
– Sri Lanka
– Australia
– Uruguay
– South Africa in 2004 (Mahindra South Africa)
– Europe in 2005 (Mahindra Europe)
• Mahindra vehicles have gone on display to auto
enthusiasts around the world, participating in
prestigious automobile shows in Paris, Rome,
Bologna, Johannesburg and São Paulo.
• In 2006 Mahindra announced that it would be the
first Indian automobile manufacturer to enter the
world’s most demanding and critical market – USA.
Mahindra & Mahindra -Scorpio
Bharat Forge
Global Ambitions
Bharat Forge

It’s a manufacturer of steel forgings and auto parts

such as crank shafts for trucks, which it supplies to
global automakers like DaimlerChrysler and General
Motors. Bharat has big ambitions beyond India. The
company is one of India’s emerging multinationals with
manufacturing operations in Germany, Sweden,
Scotland, the U.S., and China.

One-Year Total Return:- 12.03%

Site: www.bharatforge.com
Rediff.com
India’s Global Site
Rediff.com

The site is the go-to place on the Net for India’s

globally dispersed online population looking for news,
information, and shopping services. The Mumbai-
based company has sites both in India and for those
living abroad, and recently launched a finance channel
called Rediff Money wise, which provides real-time
data on stocks and mutual funds. The Nasdaq-listed
concern saw revenues grow 54% to $7.75 million in
the fourth quarter of 2006.

One-Year Total Return:- 36.11%

Site: www.rediff.com
Rediff.Com
Infosys technologies
Software Powerhouse
Infosys Technologies

It is India’s second-biggest software company and a

major IT consulting firm that generates 60% of its
sales in the U.S. market. The Bangalore-based
company is expanding quickly into Europe to
customize software applications and manage
computer networks. It is facing increasing
competition from IBM and Accenture for quality
engineering talent at home. Even so, it’s an earnings
high-achiever: Third-quarter profits shot up 50%.

One-Year Total Return: 64.8%

Site: www.infosys.com
 Wipro
Acquisition Machine
Wipro

India’s third-biggest software company and IT

consulting firm is on an earnings tear, with
fourth-quarter profits up 40% to $169 million. Last
year, Wipro spent more than $250 million on
acquisitions at home and in foreign markets such as
Sweden and Finland, and the company’s billionaire
chairman, Azim Premji, says he wants to do bigger
deals in the years ahead to boost economies of scale
and to lower costs.

One-Year Total Return: 26.26%

Site: www.wipro.com
 Wipro
• Third largest brand
• During the March quarter this year, Santoor became the third largest
soap brand in the country overtaking Breeze. Santoor, with an
estimated brand exceeding Rs 500 crore, now trails Lifebuoy and
Lux. Santoor accounts for around 40 per cent of Wipro Consumer
Care revenues.

• Wipro Consumer Care has taken the contract manufacturing route to

enter the lucrative Sri Lankan toiletries market by partnering with
J.L. Morrison Sons & Jones (Ceylon) Ltd recently.

• Wipro Consumer Care & Lighting (WCCL), the consumer care

business of infotech major Wipro Ltd, jump-started its overseas
foray by acquiring Unza Holdings Ltd, a Singapore-based detergent
and personal care products manufacturer, for Rs 1,010.2 crore in an
all-cash deal. (Business Standard 7th July 2007)
Santoor
Dr. Reddy’s Laboratories
India Pharma
Dr. Reddy’s Laboratories

This high-flying drug company, India’s third

largest, reported a tripling of net income to $42.5
million in the fourth quarter and specializes in
selling and exporting versions of blockbuster
drugs developed by other companies such as
Bayer and Merck at much lower prices. Its generic
business in the U.S., the world’s biggest
pharmaceutical market, is sizable, and some 86%
of its global sales come from outside India.

One-Year Total Return: 25%

Site: www.drreddys.com
Bharti Airtel
Wireless Wonder
Bharti Airtel

It is good to be India’s biggest

wireless operator—doing business in
the world’s fastest-growing market
for mobile phones. Now, Bharti is
looking to expand in other fast-
growing emerging markets such as
Africa. Britain’s Vodafone owns a
10% stake in Bharti, which also
provides outsourcing services to
IBM.

One-Year Total Return: 107%

Site: www.bhartiairtel.in
Airtel – Express Yourself
Airtel – Express Yourself
 Amul – The Taste of India
• Members:12 district cooperative milk producers' Union

• No. of Producer Members:2.5 million

• No. of Village Societies:11,962

• Total Milk handling capacity:9.91 million litres per day

• Milk collection (Total - 2005-06):2.28 billion litres

• Milk collection (Daily Average 2005-06):6.3 million litres

• Milk Drying Capacity:511 metric Tons per day

• Cattlefeed manufacturing Capacity:2340 Mts per day

Sales Turnover Rs (million) US $ (in million)
• 2005-06 37736 850
 Amul – The Taste of India

• GCMMF is India's largest exporter of Dairy Products. It has

been accorded a "Trading House" status. GCMMF has
received the APEDA Award from Government of India for
Excellence in Dairy Product Exports for the last 9 years.

• Many of our products are now available in the USA, Gulf

Countries and Singapore.
Amul – Milk
• Dabur India Limited is a leader in manufacturing and
marketing herbal, nature-based products, marked with
quality and trust gained through more than 100 years of
experience.
• Today Dabur’s products are available for people in more
than 50 countries across the world, helping them move
towards a healthy, natural and holistic lifestyle.
• Dabur products are available in the markets of the
– Middle East
– South-East Asia
– Africa
– America
– European Union
Dabur - Honey
 Jet Airways
• Jet Airways, India's most preferred airline, is now giving
the world a better choice in the skies

• The airline operates over 340 flights daily across 44

destinations within India and also operates flights to
Nepal, Sri Lanka, Singapore, Malaysia, United Kingdom,
Thailand, Belgium & United States of America on one of
the youngest and best maintained fleets. Jet Airways
plans to extend its international operations further in
North America, Europe, Africa & Asia in the coming
years with the induction of wide-body aircraft into its fleet
Jet Airways
 Tata Consultancy Services (TCS)

• Tata Consultancy Services (TCS) is one of the

world’s leading information technology
companies. Through its Global Network Delivery
Model™, Innovation Network, and Solution
Accelerators, TCS focuses on helping global
organizations address their business challenges
effectively.
• TCS employs about 10,000 people in the US
handling technology services for Fortune 500
companies such as General Electric.
• TCS operates across more than 50 countries and
has more than 175 offices across the globe.
 VIP

VIP Industries Ltd. is Asia's leading manufacturer of

hard and soft luggage and VIP is the largest brand of luggage in Asia.
VIP
 Hero Honda
• In a little over two decades, the world's largest
manufacturer of bicycles and the global leader in
motorcycles have created not only the world's
single largest motorcycle company but also
the most endearing and successful joint venture
for Honda Motor Company worldwide. The
company has sold over 15 million motorcycles
and has consistently grown at double digits
since its inception and today, every second
motorcycle sold in the country is a Hero Honda.
Hero Honda
 The Times of India
• The Times Group is one of the largest media
services conglomerates in India.
• The Times of India (TOI) is a leading English-
language broadsheet daily newspaper in India. It
is owned and managed by Bennett, Coleman &
Co. Ltd. (The Times Group). The newspaper has
the widest circulation among all English-
language broadsheets, with 2.6 million daily paid
copies.
The Times of India
Femina
 Bajaj
• Bajaj has enhanced the focus on design,
style and innovation in the premium
segment of the motorcycle mart
Bajaj
 Raymond
• Trust. Excellence. Quality. These are
some of the abiding values that have been
associated with Raymond over the years.
• Raymond produces nearly 20,000 design
and colours of suiting fabric, that have
found their way in over 55 countries
including the European Union, USA,
Canada, Japan and Australia among
others.
Raymond
 Fevicol
• FEVICOL has been ranked no. 24 overall
in the latest survey, " India 's Most Trusted
Brand" in the country conducted by Brand
Equity (Economic Times). Fevicol ranking
has improved by 7 positions compared to
last year.
Fevicol
 Entrepreneurs in Free Market
Created Brand
• Subhash Chandra – Zee is among the top
three players in the Broadcasting Business
• Naresh Goyal – JetAir transformed the
travel agency into a full service airlines
• Kishore Biyani – Future Group, is the
biggest player in the retail sector
• G.M Rao – GMR & GVK Groups emerged
as a result of Infrastructure
 Entrepreneurs in Free Market
Created Brand
• Uday Kotak – Forayed into banking and
and now Kotak Mahindra Bank has 78
branches
• P K Jain - Parsvnath Developers are
emerging as a dominant forhce in the Real
Estate sector of the country
• Captain G. R. Gopinath – Air Deccan the
country’s first low-cost “peoples airlines”
Indian food brands and fast moving
consumer goods (FMCGs) are now
increasingly finding prime shelf-space in
the retail chains of the US and Europe
Indian brands creating their own space in the American mind

Cobra Beer

Bikanervala Foods

MTR Foods' ready-to-eat food stuff

ITC's Kitchen of India

Satnam Overseas' Basmati rice.

Lakshmi Mittal
 Indian Managers Book Seats in
Global MNC Board
• Citibank – Sanjay Nayar
• Standard Chartered – Jaspal Bindra
• Deutsche Bank – Anshu Jain
• HSBC – S N Mehta
• Arcelor Mittal – Lakshmi Mittal, Aditya Mittal, Inder Walia,
Sudhir Maheshwari, Narendra Chaudhury,
• HP – Vyomesh Joshi
• P&G – Ravi Chaturvdi
• Reckitt Benkiser – Rakesh Kapoor
• Unilever – Vindi Banga & Harish Manwani
 Indian Life & Style
Voice of Asia

SPAN
 Lesson Learnt for AAA Creating
Brands
Consistency
Understanding of Customers/Target
Message/Communication
Creative/Design/Brand ID
Relevance
Differentiation/Uniqueness
Key Stakeholder Buy-In
Positioning
Clarity
Connection to Customer/Target
Awareness/Recall/Memorability
Focus
Authentic/Truthful/Honest/Accurate
 Lesson Learnt for AAA Creating
Brands
Leadership
Budget/Cost
Strategy
Product
Research
Innovation
Simplicity
Delivering on promises
Public Relations
People
Marketing
Advertising
Other
 Thank You

Email: pat@mica.ac.in