Multi Dimensional Approach to Brand Building: A Conceptual

Model for Indian Retailers

Authors:

Dr.

Vibhuti

Tripathi

Amitabh

Pandey

Faculty Faculty

School of Management Studies

School of Management

Motilal Nehru National Institute

Sciences Khushipur

of

Technology,

Allahabad

Bachchaon

Mughalsarai Mohansarai

Bypass, Varanasi

Multi Dimensional Approach to Brand Building: A Conceptual Model

for Indian Retailers

A. Indian Retail Scenario:

Organized retailing has exponentially emerged to contribute

to the growth of Indian retail sector. It constitutes 3% of the total retail market and

expected to grow at a rate of 42% in 2008. According to estimates provided by

Technopak, organized retail in India is expected to receive investments of $25 billion,

taking the size of modern retail to $75 billion by 2011. These investments imply that

share of organized retail will grow from the present 3 % to approximately 15-18 % by

2011-12.

With the onset of a globalize economy in India, the Indian consumer′s psyche has

changed. They are well versed with the concept of value for money, quality and service

standards offered worldwide, in turn they are becoming more demanding. These demands

are the visible impacts of the Indian organized retail sector. The evident increase in

consumerist activity is colossal; it is replicated in money making recess for the Indian

organized retail sector. Indian Retail is in the midst of a retail revolution, seen in

sprawling number of malls developed from 50 operational malls in 2005 to 250 mall by

20083. Multiple formats have sprung up across different cities. City landscapes are dotted

with malls and customers have problems of plenty as far as deciding shopping

destinations is concerned.

Rising and double incomes becoming a norm in urban areas, increased advertising

and enlarged number of working women have made buying more attainable and exciting

to a larger portion of the population. Branded merchandise in categories like Apparels,

Cosmetics, Shoes, Watches, Food and Beverages, even Jewellery are slowly becoming

lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers

with the right formula face enormous growth opportunities, as consumers become richer,

and more aspirational than before. Indian consumers are on the march and domestic

modern retailers must act quickly to seize this opportunity.

B. Brand Building Process:

Brand is a name, term, sign, symbol or design or a

combination of these that identifies the products or services of one seller or group of

seller′s and differentiates them from those of competitors. (Philip Kotler, Gary

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Armstrong, 2007). Brands are more than just logos and names. They are the culmination

of a customer′s total experience with the product or services over a long period of time.

That experience could be made of a multitude of good, neutral and bad encounters in

terms of; performance of the product or services, advertising message, a press report, a

telephone call, or a rapport with a sales assistant. Branding is about developing a pull

rather than a push, identifying a core value that resonates with customers and attracts the

business that is desired. A good brand reduces the risk of poor choice and offers the

consumer a guarantee of consistent performance, quality and thus satisfaction. While

many consumers are happy to shop around, they are unwilling to risk their money on a

product which they fear may not deliver.

Building a brand involves a process that demands attention to establishing a

system and structure that simplifies the marketing process and efforts to a large extent.

Matching the differentiated offerings with the willingness and ability of customers

creates value for both the customers and the company. Main objective of brand building

process is to attract a large number of loyal customers. In order to be able to attract, it is

essential to build a strategic brand platform, on both external and internal touch-points

which affect the customers′ decision making process. Melin (1999) has identified six

external factors; commitment, brand sensitiveness, brand awareness, brand association,

value added and brand loyalty which culminate into brand building in customer′s mind.

He also identified six internal factors; product attributes, brand identity, core values,

positioning, market communication and internal brand loyalty which transform the effort

into building the brand.

Considering internal and external factors as identified above a company need to

follow certain stages mentioned in figure 1 for building an effective brand building

strategy;

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· Important Market Areas or Segment

Information Search

· Current Perception of People towards the

Company

· Core Competence

Identify Competitive

· Differentiation

Advantage

· Value Proposition

· Value Driven Customers

Align Strategy to right

· Time Starved Customers

target customers

· Technology Savvy Customers

· Lifestyle Focused Customers

· Reach and Frequency of Media

· Media Effectiveness

Ally Media Strategy

· Exposure to right target group

· Media Channel Selection

· Awareness about Attributes

Deliver well defined

· Creation of Brand Image / Personality

Message and Image

· Brand Association

· Inducement about Brand Trial

· Organisational Commitment

Diligence, Consistency,

· Delivering at each touch-point

Repetition

· Reminder time and again

Figure 1: Brand Building Process

Effective brand building starts with gathering information about how the brand is

perceived by the customers. Both quantitative and qualitative information should be

sought to get a clear picture of company′s place in the mind of the customers. Gathered

information is reviewed, to compare the needs that exist in the market and the

competitive advantages the company has or wishes to acquire over competitors. With a

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