Thursday, September 27, 2007

What, exactly, is a Brand?

One comes across various definitions of what a brand exactly is. Some would want to describe it in terms of it being the name, logo, jingle etc. that together help to differentiate one offering vis-à-vis the other. This I believe, though true, does not capture the entire essence of what a brand is. Others tend do describe it in more obscure terms of it being something mystical, the power of which needs to be experienced to be able to believe, that it resides in the hearts and minds of its consumers …..

My understanding is:

A brand is an intangible asset that creates value for all its stakeholders

* The company that owns it by aiming to ensure future cash flows
* The customers that buy and use it through functional, emotional, sensory and ownership related benefits it provides
* For the trade / retailers that distribute and sell it through the cash flows and footfalls it creates to be able to sell more stuff to more people
* Marketers & Agencies that help create and nurture it, through the value it creates for them at both personal and professional level.

I beg to differ with marketers who say that a brand belongs to its customers and not the companies. Customers are definitely the most important stakeholders but they are not the owners. They certainly have a big hand in the financial value created by a brand as they are the ones who decide and pay the premium for it over other similar products/services. However, this economic value is ultimately reaped by the legal owners who at times fetch more value for their brands than any of their physical assets.

Here is a take by Christopher Kenton in Business Week Online on the meaning of brand.

I believe that though the fundamental attribute of a strong brand is consistency, increasingly, it is the ability to creatively challenge customers and be seen innovative that is driving growth for brands like Apple, Nike, Sony, Toyota, Samsung etc.

Thursday, September 6, 2007

Luxury goes mass market

This recent article in FORTUNE magazine talks about how dynamics of the luxury business and the definition of what constitutes luxury itself are changing. The worldwide luxury business is pegged at around $220 bn and is growing at a rapid pace.

I had, in my first post on this blog, talked about the nuances and challenges of marketing to affluent customers. 'Massclusivity' = Exclusivity for masses, is a unique trend that's both an opportunity and challenge for today's luxury / premium brands.

Incidentally, today's Business Standard carried an article on why Louis Vuitton wants a feel of Indian luxury market and is willing to roll out more of its brands here.

Brand = Interface, Interface = Brand

Check out this fascinating article on how some brands have created their own unique interface, their own way of how they interact with their consumer and the consumer engages with them. An amazing insight into how this can be integral to a brand and at times its major differential advantage.

Monday, September 3, 2007

Nokia's Big Plans for India


Nokia is an unusual example of a business leader in the sense that it's origins do not lie in the usual suspect countries of US, UK, Japan, Germany, Italy, France etc. nor in the Asian tigers.


For a company, which has its roots in paper, rubber and cables to become a giant in the field of technology and communications is a quantum leap. In 2005 Nokia sold its billionth phone when worldwide mobile phone subscriptions had passed the 2 billion mark.

India recently displaced the US as Nokia's second largest market behind China and this event has many ramifications (It seems Apple has refused to learn from this, it is yet to launch it's i-Phone in India or the other Asian markets and says it would be at least another year when that happens). In this interesting interview, the CEO Olli-Pekka Kallasvuo, while on his trip to India, speaks to Business Week on this tectonic change, how Nokia is gearing to benefit from it and how its next billion phones are going to be sold.