To appreciate the real significance of branding for India, we need to first understand that branding is not merely an FMCG phenomenon. It is just not about using seductive advertising to create products that people would not otherwise buy. At its heart, a brand is essentially a set of expectations and promises that the customer and seller exchange with each other. This economic contract is the main instrument of value exchange in countless business transactions taking place this minute, across the globe.
Branding is about customising products for different customer groups and is in that sense an even more powerful tool in the hands of the industrial marketer or service provider, than for an FMCG marketer. Industrial and service marketers are much more in the business of meeting specialised customer needs. Therefore the opportunity to differentiate offerings and appropriate a larger slice of the value pie is more.
A brand fulfils a functional purpose. But an unbranded product also fulfils a functional purpose (although often not as well or as constantly as a strong brand does). A strong brand provides benefits to consumers over and beyond its functional purpose. These extra rewards are mainly psychologicalcreated in the minds of usersand are generally called added-value. These come from four main sources. Experience with the brand: Users know it, like it and buy it repeatedly; in many cases the brand becomes an old friend. Psychographics of users: For brands used or consumed in public, like soft drinks, beer, clothing, cosmetics, and the like, this association with a common brand forms a bond between users. There are affinities that are an important source of inspiration for the consumer advertising. These affinities are sometimes called the club or necktie properties of a brand, they are sometimes described in terms of user-imagery.
Faith in the brands effectiveness: This is a centrally important attribute for over the-counter drugs, which always have some placebo effect. It also works for cosmetics, which give women a confidence that adds to their attraction.
Brand appearance: This is the prime role of packaging, which should be planned to provide an outward expression of a brands softer, subtler but meaningful inner attributes.
