BRAND VALUATION SERIES - MRF Tyres

BRAND VALUATION SERIES

TELECOMS/ENTERTAINMENT

+30%FINANCIAL

+26%

AUTOMOBILES

+23%

FOOD, DRINKS & ALCOHOL

+5%

OTHER

+10%

TOP50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1617

1819

2021

2223

2425

262728293031323334353637383940

4142

4344

4546

4748

4950

$109.3BIL.

+21% +57%

TOP 50 TOTAL VALUEThe combined value of the Top 50 Most Valuable Indian Brands 2017

Value change of the BrandZ™ India Top 50 2016 to 2017

Value change of the BrandZ™ India Top 50 2014 to 2017

TOP 10 INDIAN BRANDS 2017

NEWCOMERS

$ = Brand Value US $ million % = Brand Value Change from 2016

% = Brand Value change from 2016

$ = Brand Value US $ Million

# = Position in ranking

+31%Banks

3

$8.3BIL.

+15%Paints

4

$4.7BIL.

STRONG, VALUABLE BRANDS DELIVER SUPERIOR SHAREHOLDER RETURNSBrandZ™ India Top 50 Portfolio Outperforms SENSEX

BrandZ™ India Top 50 Portfolio

38.8%

15.0%

SENSEX India

$2.4BIL.

$592MIL. $529MIL. $487MIL.

$484MIL.

$1.2BIL. $1.1BIL. #11

#45 #47 #49

#50

#24 #27Telecom Providers

Home Appliances Entertainment Insurance

Banks

Retail Entertainment

BRAND CONTRIBUTIONBrand contribution measures the influence of the brand alone, excluding financials or other factors, on the brand in the mind of the consumer. It is measured on a scale of 1 to 5, with 5 the highest.

$ = Brand Value US $ Million # = Position in ranking

TOP RISERS% = Brand Value change from 2016

$ = Brand Value US $ Million

# = Position in ranking

+19%Banks

5

$4.7 BIL.

+36%Banks

6

$4.5BIL.

+56%Automobiles

7

$4.4BIL.

+5%Automobiles

8

$3.6BIL.

+17%Automobiles

9

$3.3BIL.

+2%Banks

10

$2.4BIL.

+89%

$877MIL.

#35Insurance

+66%

$974MIL.

#32Food & Dairy

+59%

$862MIL.

#40Automobiles

+56%

$4.4BIL.

#7Automobiles

+52%

$658MIL.

#44Automobiles

To find out more about BEST COUNTRIES visit: https://www.usnews.com/news/best-countries

OVERALL OUT OF 80 COUNTRIES

#25Download the Mobile App at www.brandz.com

Banks

$18.0BIL.

+24%

1 2

+3%Telecom Providers

$10.2BIL.

Home Care$1.3BIL.

#22

Personal Care$585MIL.

#46

Lubricants$1.6BIL.

#18

Banks$8.3BIL.

#3

Paints$928MIL.

#34

Food & Dairy$877MIL.

#36

Food & Dairy$1.2BIL.

#26

www.brandz.com

VALUE CHANGE BY CATEGORY

03

Thought Leadership

86 Valuation by Amarjeet Thakur, Mirum

88 New India by Arnab Bhowmik, Kantar Millward Brown - Firefly Practice

90 Unicorns by Sonya Misquitta and Amanda Mendes, Grey

92 Brand Vulnerability by Hareesh Tibrewala, Mirum

94 Advertising by Milind Pathak, Madhouse

96 Future-Ready Brands by Shaziya Khan, J. Walter Thompson

98 Social Responsibility by Sunil R. Shetty, Contract

100 Apps by Varun Jain, Kantar Millward Brown

02

Market Knowledge & Intelligence

40 Key Facts and Figures

44 Disruption

46 Consumers

64 Urban-Rural

66 Digital

76 Media

78 OUR INSIGHTS

05

Brand India

158 Best Countries

162 Overview

168 Methodology

170 Soft Power

174 India & China

176 Cultural Rankings

06

Brand Building Best Practices

186 Complexity by Aditya Kilpady, Contract

190 Storytelling by Anvar Ailkhan, J. Walter Thompson

194 Spending by Dia Kirpalani, Contract

198 Loyalty by Divya Khanna, J. Walter Thompson

202 Social Media by Karthik Nagarajan, GroupM

204 Startups by Parul Budhiraja, Contract

208 Social Context by Sanjana Mathur, Landor

210 Trust by Siddhant Lahiri, Rediffusion Y&R

214 OUR INSIGHTS

07

Resources

220 BrandZ™ Brand Valuation Methodology

224 BrandZ™ Reports, Apps, and Powered by BrandZ™

228 WPP Resources

230 WPP Company Contributors

235 WPP in India

236 WPP Company Brand Building Experts

238 BrandZ™ India Top 50 Team

240 BrandZ™ Contact Details

241 BrandZ™ Mobile

04

The India Top 50

106 The India Top 50 Ranking

108 BrandZ™ Analysis

Top Risers

Newcomers

Brand Contribution

120 Vitality Quotient

Overview

India Top 50

Brand Value

Brand Value Growth

Resilience

Love

136 C-Suite Interviews

Suparna Mitra Chief Marketing Officer, Titan Company Ltd.

Ajay Kakar, Chief Marketing Officer, Aditya Birla Capital Ltd.

Siddharth Banerjee, Executive Vice President, Marketing, Vodafone India

150 OUR INSIGHTS

01

Introduction

14 Overview

20 BrandZ™ India Top 50 Portfolio

24 Key Findings

28 Cross-Category Trends

32 Takeaways

36 OUR INSIGHTS

8 Welcome David Roth, CEO,

The Store WPP, EMEA & Asia

CONTENTS

WELCOME

BRANDS NEED KNOWLEDGE AND INSIGHT TO KEEP PACE

TOP 50 GROWS 21 PERCENTIN RAPIDLY CHANGING INDIA

←

TOP 50 MOST VALUABLE INDIAN BRANDS 2017

David RothCEO, The Store WPP, EMEA and [email protected]: davidrothlondonBlog: www.davidroth.com

India is changing rapidly, with GDP

defying expectations and growing

faster than all other major economies,

despite several recent disruptions—

demonetization and the goods and

services tax (GST)—aimed at driving

the economy even faster. This speed

presents brands with a dilemma:

move too cautiously and miss

opportunities; or move too quickly

and make avoidable mistakes.

We see this momentum in the BrandZ™ Top 50 Most Valuable Indian Brands 2017, which appreciated 21 percent this year, and 57 percent over the past three years, outpacing the value growth of both the China Top 50 and the Global Top 50. Similarly, the BrandZ™ India Top 50 Portfolio rose 38.8 percent over the past three years, more than twice the rate of SENSEX, the Indian stock market index, which increased just 15.0 percent—demonstrating how valuable brands deliver superior stockholder returns.

This dynamism is also apparent in the churn of the India Top 50 and the emergence of new Indian brands. Only 38 brands that were in our 2014 BrandZ™ India Top 50 remain in the 2017 India Top 50. A brand needed to grow 48 percent just to retain its rank. Rising in the ranking required a brand to increase its value 106 percent, around

twice the growth rate of the India Top 50 overall.

Brands that remain in the India Top 50 are significantly healthier than Indian brands overall, based on their Vitality Quotient (VQ), our new BrandZ™ measurement of brand health. In fact, the health of the India Top 50 brands is comparable to the health of the Global Top 50, the most valuable and powerful brands in the world.

Which brings up the question of how the world views India, a vital topic at this point in India’s rise to global player. Business decision makers rank India low on some business dimensions, like transparency, but they rank India No. 2 in the Movers category of up-and-coming economies. This is one of many findings from Y&R’s BAV Best Countries study, which we present here for the first time in a special section called Brand India.

The consumers driving all this change and growth no longer live only in Mumbai, Delhi, Chennai, or some other major metro. They live throughout India, in cities of all sizes and in rural areas, too. Marketers need to think about Multiple India’s—an India where people want to be the best they can be—wherever they live and whatever their background.

In these fast-changing, complicated circumstances, what should marketers do to identify opportunities and avoid mistakes? To start, I suggest reading this report—closely. It is an example of what we at WPP call “horizontality”—informing clients with our extensive experience creating and building valuable brands, based on knowledge and insights from our presence in 112 countries. We’ve been in India for over 85 years.

Knowledge, Intelligence, and Insights

We take a 360-degree view that includes market research, media management, futures, advertising, digital, promotion, public relations, public affairs, shopper marketing, content creation, and activation. We begin with WPP’s proprietary BrandZ™ database, which includes information from over 3 million consumers about their attitudes about (and relationships with) 120,000 brands in 414 categories across 51 country markets. All that produces more than 4.6 billion data points.

98

Throughout this report you’ll find the knowledge, intelligence, and insights necessary to keep up with brand developments in fast-changing India, and scattered throughout these pages you’ll also find prescriptive action points for building valuable brands, provided by some of the most cutting-edge thinkers and practitioners from WPP companies in India. Here are just a few highlights to think about as you get into the details:

VALUE The Indian notion of value is changing. The change is evident in fast moving consumer goods (FMCG), where consumers increasingly prefer brands that specifically meet Indian preferences. That’s often a local Indian brand, but brands owned by multinationals are responding. Ultimately, it’s not about provenance, but the right combination of a locally relevant product and a fair price.

SPENDINGIn a vast country of 1.3 billion people, 22 official languages, and multiple cultural roots, the market is remarkably segmented. Our research has identified a sub-segment of FMCG shoppers that we call “Elites,” people who spend more on FMCG than other wealthy consumers. It’s an important opportunity—one of many.

TRUST Indian consumers today are less likely to accept a brand message before verifying it with online research. Still, one of this year’s important stories was the rebound of Maggi, the instant noodle brand that lost consumer trust during a food safety crisis a few years ago, and regained trust by fixing its problems and leveraging its substantial brand equity.

One of our key WPP strengths—and a benefit for our clients—is that when we say we cover the world of brands, that’s exactly what we mean. We have assembled an extensive library of brand reports and I invite to you access them with our compliments at BrandZ.com. Here are just some of the reports you will find there: the BrandZ™ Top 100 Most Valuable Global Brands; the BrandZ™ Top 100 Most Valuable Chinese Brands; the BrandZ™ Top 50 Most Valuable Latin American Brands; and the BrandZ™ Top 50 Most Valuable Indonesian Brands. In addition, I recommend these recently published titles: Spotlight on Cuba, Spotlight on Myanmar, Spotlight on Mongolia, and Leaders in the Hot Seat: Behind the brands that shape lives and build value.

We have the data, knowledge, experience, insight, determination, and single-minded purpose to help you

create and build valuable brands. To learn more about how to harness our passion to work for your brand, please contact any of the WPP companies that contributed expertise to this report. Turn to the resource section at the end of this report for summaries of each company and the contact details of key executives. Or feel free to contact me directly.

Sincerely,

David [email protected]: davidrothlondon

WELCOME


1110

INTRODUCTION

GROWTH MOMENTUM INDICATES POWER OF HEALTHY BRANDS

INDIA TOP 50 BRAND VALUE RISES 21% DESPITE MARKET DISRUPTIONS

The BrandZ™ Top 50 Most Valuable

Indian Brands 2017 increased 21

percent to $109.3 billion, in a year

marked by serious disruptions,

particularly from government

initiatives to reform the economy.

Following a 2 percent decline a year

ago, the ranking resumed its positive

momentum, with value up 57 percent

since 2014, when the Top 50 brand

value totaled $69.6 billion.

The India Top 50 outpaced both the BrandZ™ Global Top 50 and China Top 50, which grew 32 percent and 46 percent in value over the same period. The composition of the Top 50 shifted over three years with 38 local Indian brands in the Top 50 compared with 35 in 2014, while Indian brands owned by multinationals declined from 15 to 12.


1514

OVERVIEW

The strong brand value increase reflected consumer optimism, with some regional variations, and a strong performance by financial brands, which comprise 39 percent of Top 50 value. Banks rebounded from bad-debt problems. ICICI Prudential, an insurance brand, led in value appreciation, increasing 89 percent. HDFC Bank retained the No. 1 rank in the BrandZ™ India Top 50, rising 24 percent in value, following a 15 percent increase a year ago.

The BrandZ™ Top 50 value increase also echoed the robust appreciation of the Indian stock exchange, which soared to record levels. The BrandZ™ Top 50 Portfolio of stocks continued to outperform SENSEX India, a weighted index of 30 stocks on the Bombay Stock Exchange. The BrandZ™ India Top 50

Portfolio rose 38.8 percent over the past three years, more than twice the rate of SENSEX, which increased just 15.0 percent, demonstrating how valuable brands deliver superior stock holder returns. In addition:

All but five Top 50 brands increased in value, and growth crossed categories, led by a 30 percent increase in telecom providers/entertainment, followed by financial, up 26 percent, and automobiles, with a 23 percent increase.

Six of the seven Newcomers are local Indian brands. And two Newcomers—Sun Direct and Dish TV—inaugurate the entertainment category in the India Top 50, reflecting changing consumer viewing habits and greater variety of content.

PART 1

Introduction

Brands invested more in digital media, which led all media segments in percentage rise in spending. TV remained strong, however, and India was the only major market where investment in traditional media continued to grow.

The India Top 50 exhibited strong brand health, as measured by a new BrandZ™ metric called Vitality Quotient (VQ), which assesses brand health based on five indicators—Brand Purpose, Innovation, Communications, Brand Experience, and Love. The India Top 50 scored 110, identical to the Global Top 50, on an index where 100 is average.

Growth despite disruptions

Brand value increased despite successive market disruptions,

some strategically implemented by the government of Prime Minister Narendra Modi to improve conditions for doing business in India, and realize the government’s vision for a New India with greater stature abroad and economic equality at home.

With demonetization, implemented in November 2016, the government banned certain cash currency to reduce the underground economy, increase tax revenues, and accelerate the shift to digitization and mobile wallets. On July 1, India implemented a national goods and services tax (GST), a type of VAT intended to simplify a complicated combination of state and local taxes and add transparency.

The shock of demonetization impacted brands in different ways, depending

on how dependent the category was on cash transactions. Fast moving consumer goods (FMCG) brands focused on short-term tactics to build revenue. In contrast, mobile wallets and some other financial services brands benefited immediately from demonetization.

Disruption also erupted more narrowly, impacting certain categories, like telecoms, where Jio, a brand less than a year old, offered free data, which quickly won the brand over 100 million customers, but also fomented a price war. Jio entered the BrandZ™ India Top 50—at No. 11.

←

In FMCG, Patanjali continued to broaden from its original focus on Ayurvedic wellness products into an extensive FMCG range that challenged the multinationals. Patanjali turned up the communications volume and more aggressively called out the multinationals for not being as authentic.

Hindustan Unilever Ltd. and Colgate-Palmolive India Ltd. responded by introducing new brands of Ayurvedic products. Because of their ability to communicate “Indianness,” Indian FMCG brands owned by multinationals outscored local Indian FMCG brands—including Patanjali—in VQ, the new BrandZ™ measurement of brand health, and in all five VQ components.

Brand India

Other disruptions resulted from India’s global integration. In today’s wired world, news of overseas shocks—Brexit and the US election—reached India instantaneously and had an impact on consumer confidence, especially in IT centers like Bengaluru, where people


1716

OVERVIEW

PART 1

Introduction

worried whether the America First declarations of the Trump administration would limit business growth in India and opportunities to study or work in the US.

In addition, the populism of Brexit and the Trump election reverberated in India. As happened in other parts of the world, populism sometimes produced ugly bigotry, but other populist expressions were about Indian national pride. And the sharpest distinction between populism abroad and in India was that Indians did not reject globalization. They embraced it. Globalization has been good for India.

Conversely, these developments influenced how the rest of the world views India. Business decision makers ranked India low on some dimensions that are important for doing business, like transparency, according to the latest Best Countries research of Y&R’s BAV Group. But business decision makers also expressed high regard for India as culturally significant, innovative, and on the move. They ranked India No. 2 in the Movers category of up-and-coming economies, above China and Japan.

The India Top 50 resumed its positive momentum, with value up 57 percent since 2014. The India Top 50 outpaced both the BrandZ™ Global Top 50 and China Top 50, which grew 32 percent and 46 percent in value over the same period.

India Top 50 outpaces Global and China rankings

Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)

$100BIL.

$50BIL.

$0

2014 $69.6BIL.

2015 $92.2BIL.

2016 $90.5BIL.

2017 $109.3BIL.

Brand Value Increase over

3 years

+33%

+21%

+57%

+46%

+32%

-2%

BUT TELECOMS/ENTERTAINMENT LEADS IN VALUE GROWTH

VALUE IS CONCENTRATEDIN FINANCIAL CATEGORIES

The value of the BrandZ™ India

Top 50 is concentrated in financial

brands—banks, which are primarily

state-owned, and insurance

companies. But the Top 50 brands are

evenly distributed among five broad

categories: financial; automotive,

including automobiles, lubricants,

motor oil, and tires; telecom providers

and entertainment; food, drinks, and

alcohol; and other.

The telecom providers and entertainment categories led in value growth, increasing 30 percent. Advertising and data price promotions, led by the Jio brand, and the availability of inexpensive mobile handsets, drove telecom demand. Digitization, and a growing range of content, boosted the entertainment category, which is new to the BrandZ™ India Top 50 this year.


1918

OVERVIEW

The financial category grew 26 percent, as banks rebounded from loan performance problems. Automobiles followed, rising 23 percent in value, because of a combination of factors, including: consumer confidence, favorable interest rates, and insightful marketing that responded to customer desire for products that offered style and performance as well as price.

Food, drinks, and alcohol lagged primarily because of demonetization, the government initiative to curtail the underground economy, increase tax revenue, and accelerate digitization. Implemented in November, demonetization removed key cash currency from circulation. Fast moving consumer goods (FMCG), which rely on cash currency, took several months to recover.

The food and drink brands and automobiles scored highest in new BrandZ™ metric, called Vitality Quotient (VQ), a measurement of brand health. The telecoms and entertainment brands also scored well. Brands in the financial category have room to improve in the five indicators that make up the composite VQ score: Brand Purpose, Innovation, Communications, Brand Experience, and Love.

These VQ finding have important consequences for brands across all categories. Brands with high VQ scores usually are Meaningful (consumers feel an affinity for them and believe the brands meet their needs in relevant ways) and Different (consumer see the brands as distinctive and trendsetting). Meaningfully Different brands appreciate faster in value and are more likely to grow market share and command a premium.

PART 1

Introduction

// BRANDZ™ ANALYSIS

The value of the India Top 50 is concentrated in the financial category, comprised of banks, which are primarily state-owned, and insurance companies. Brands are distributed more evenly among categories.

The telecom providers and entertainment categories led in value growth, increasing 30 percent. Financial followed, rising 26 percent in value, as banks rebounded from loanperformance problems.

A new BrandZ™ metric of brand health, called Value Quotient (VQ), found that brands in the financial category could be healthier. Despite their financial value, financial brands score around 100, which is average, on each of the five brand health indicators that make up the composite VQ score. Stronger brand health should make financial brands more resilient during periods of market volatility.

Automotive includes automobiles, lubricants, motor oil, and tires

Value is concentrated in the financial category…

… But telecoms/entertainment lead in value growth…

… And the financial category lags in brand health

FINANCIAL

39%

10 Brands

AUTOMOTIVE

19%

11 Brands

TELECOMS / ENTERTAINMENT

16%

6 Brands

FOOD, DRINKS & ALCOHOL

10%

9 Brands

OTHER

16%

14 Brands

Source: BrandZ™ / Kantar Millward Brown

Source: BrandZ™ / Kantar Millward BrownAverage VQ score = 100Source: BrandZ™ / Kantar Millward Brown

0

30%

20%

10%

30%

% Value Change

26% 23%

10%

5%

Brand Purpose 102 108 117 117 113

Innovation 98 104 112 111 109

Communications 100 106 115 118 113

Brand Experience 100 106 114 117 113

Love 99 104 111 114 112

Score 100 106 114 115 112


2120

BRANDZ™ INDIA TOP 50 PORTFOLIO OUTPERFORMS SENSEX

STRONG VALUABLE BRANDS DELIVER SUPERIOR SHAREHOLDER RETURNS

A stock portfolio of the BrandZ™

Top 50 Most Valuable Indian brands

increased 38.8 percent in value

between August 2014 and July 2017,

while over the same three-year period,

India’s SENSEX, a weighted index

of 30 stocks on the Bombay Stock

Exchange, increased 15.0 percent.

BRANDZ™ INDIA TOP 50 PORTFOLIO

PART 1

Introduction

The BrandZ™ Top 50 Portfolio outperformed SENSEX, even as India’s stock exchange reached record highs in 2017. And the BrandZ™ Top 50 Portfolio never declined as severely as SENSEX during periods of economic stress in 2015.

This performance by the BrandZ™ India Top 50 Portfolio demonstrates the critical ability of valuable brands to navigate volatility and generate superior returns for shareholders. High-value

brands also help drive sales volume, command premium pricing, and expand market share.

To quantify the impact of high-value brands, $100 invested in 2014, in the BrandZ™ India Top 50 Portfolio, would have grown to around $139. However, $100 invested at the same time in SENSEX stocks would be worth only $115. The ROI for the investor is over 20 percent greater with the BrandZ™ Top 50 Portfolio.

A stock portfolio of the BrandZ™ Top 50 Most Valuable Indian Brands increased 38.8 percent over three years, when India’s SENSEX increased 15.0 percent. The BrandZ™ India Top 50 Portfolio successfully navigated volatility and delivered superior shareholder value.

BrandZ™ India Top 50 Portfolio vs. SENSEX India(August 2014 to July 2017)

0%

10%

20%

30%

-10%

-20%

BrandZ™ India Top 50

Portfolio

38.8%

SENSEX India

15%


. . . O N T H E W I N G S O F T E C H A N D C U LT U R E .

B R A N D I N D I A C I R C L E S T H E G L O B E . . .

SUBSTANTIAL VALUE GROWTH DEFINES THE RANKING

COMPETITION CREATES TOP 50 BRAND CHURN


2524

KEY FINDINGS

PART 1

Introduction

BRANDS NEEDED SUBSTANTIAL VALUE GROWTH TO REMAIN IN THE TOP 50

Only 38 brands that appeared in the 2014 BrandZ™ India Top 50, just three years ago, remain in the BrandZ™ Top 50 2017. Of the remaining brands, those that held their rank increased value 48 percent, on average. Brands that failed to increase value by at least 18 percent dropped in rank. Brands that rose in rank increased value 106 percent, on average, almost double the overall Top 50 value growth rate of 57 percent.

MEANINGFUL DIFFERENCE WAS THE KEY TO SUBSTANTIAL BRAND VALUE GROWTH

Brands in the India Top 50 that are high in Meaningful (consumers feel an affinity for them and believe the brands meet their needs in relevant ways) and Different (consumer see the brands as distinctive and trend setting) totaled $45.6 billion in value, more than twice the $21.8 billion total value of brands with low Meaningful Difference

BRANDS THAT GREW VALUE SUBSTANTIALLY HAD HIGH BRAND CONTRIBUTION AND BRAND POWER

India Top 50 brands that grew substantially in value between 2014 and 2017 had high Brand Contribution and high Brand Power. These brands grew value at twice the rate of brands with low Brand Contribution and low Brand Power. Brand Contribution represents the value of a brand itself—the intangible asset that exists in the minds of consumers. Brand Power is the BrandZ™ metric of brand equity.

0

50%

100%

% Increase in Brand Value

Brand Contribution measures the impact of brand alone on financial value, on a scale of 1 to 5, 5 highest. Brand Power scores are based on an index where 100 is average (India top 50 2017). The % $ value change is based on the India Top 50 2014 to 2017.

+18%

Declined in ranking

+48%

Held their position

+57%

India Top 50

+106%

Improved in ranking

Source: BrandZ™ / Kantar Millward BrownSource: BrandZ™ / Kantar Millward Brown

$0

$50 BIL.

$21.8BIL.

LOW on Meaningful Difference

$45.6BIL.

HIGH on Meaningful Difference

+109%


50

20

10

30

40

0

Brand Contribution HIGH (4,5)

Brand Power317

+38%Brand Contribution

MEDIUM (3)

Brand Power175

+23%

Brand Contribution LOW (1,2)

Brand Power124

+18%

←


2726

KEY FINDINGS

PART 1

Introduction

LOCAL INDIAN BRANDS INCREASED IN NUMBER

The number of local Indian brands increased to 38 in the 2017 BrandZ™ India Top 50, from 35 brands in 2014. Over the same period, Top 50 Indian brands owned by multinationals declined from 15 to 12.

LOCAL INDIAN BRANDS ALSO INCREASED IN VALUE

Local Indian brands increased 62 percent in value between 2014 and 2017, and Indian brands owned by multinationals increased 29 percent. Although there are fewer multinational-owed Indian brands in the Top 50 today, the remaining brands have grown in value more than the local Indian brands. Therefore, the average brand value growth of multinational-owned Indian brands exceeded the average brand growth of local Indian brands, 73 percent to 49 percent.



35Local Indian

Brands in 2014

15 12Multinational-Owned Indian Brands in 2014

Multinational-Owned Indian Brands in 2017

38Local Indian

Brands in 2017

$100BIL.

$3BIL.

$2BIL.

$1BIL.

$50BIL.

2014 20142017 2017$0$0BIL. $0BIL.

$9.7BIL.

Multinational-Owned Indian Brands

$0.6BIL.


$59.9BIL.

Local Indian Brands

$1.7BIL.

Local Indian Brands

$2.5BIL.

Local Indian Brands

$12.5BIL.


$1BIL.


$96.8BIL.

Local Indian Brands

+29%

+73%

+62% +49%

Total Brand Value Average Brand Value

SOCIAL AND ECONOMICFORCES ARE RESHAPING THE INDIAN MARKET


2928

CROSS-CATEGORY TRENDS

PART 1

Introduction

←

While most brands avoided taking a political stand, they aligned with aspects of the government’s national-building agenda that are most brand-relevant. Dettol, a soap brand, campaigned for improved sanitation and hygiene. Sports brands, including some cricket teams, supported government attempts to improve the status of women by having the athletes display the names of their mothers or daughters on their uniforms. The free data offer by Jio gained the new brand over 100 million new customers in its first few months, and simultaneously helped advance the government’s Digital India initiative. Meanwhile, the Ayurvedic and fast moving consumer goods (FMCG) brand, Patanjali, intensified its nationalistic message by suggesting that its Indian provenance made the brand more authentic than the brands of multinationals.

Digitization drove access, enabling people even in the smallest villages to have smartphones and engage in e-commerce and online banking. But greater access did not always result in greater inclusion. That requires understanding people, helping them benefit from new opportunities, and communicating in the appropriate language and tone. Ultimately, brands can benefit. Amazon, for example, is positioning itself as an online store for India’s dreams, and many of those dreamers reside in small towns and villages.

Connected with the rise in nationalism is a soothing nostalgia countertrend to the many changes jolting India’s tradition-based society. These changes include greater equality for women, which redefines

gender roles, and increased mobility, which strains strong family ties. The most obvious expression of nostalgia is the interest in Ayurvedic products, a phenomenon also driven by nationalism, concern about health and wellness, and the search for

products deemed trustworthy.

Paper Boat, a local soft drink brand, based its business proposition around nostalgia. Using the strapline “drinks and memories,” Paper Boat markets flavors

that Indians associate with an earlier and simpler time. The nostalgia wave is also evident in the changing attitudes and behavior of young people. While they adopt the latest technology and trends emanating from the West, more young Indians are returning to live with their families and embrace traditional life.

NATIONALISM

ACCESS AND INCLUSION

NOSTALGIA

BRANDS FIND PURPOSE IN THE NATIONAL VISION

DIGITAL EXPANDS ACCESS, BUT NOT

ALWAYS INCLUSION

A COUNTERTREND OPENS MARKETING

OPPORTUNITIES

Another global trend has reached India—distrust. Rather than rely only on brand communications—or even word-of-

mouth—Indians, particularly in cities, are more likely to research online to corroborate brand claims. Having been disappointed by some brands, they

do not want to be disappointed again. Brands need to earn the trust of Indian consumers. And brands need to communicate in ways that inspire trust. Reaching young people requires projecting authenticity, for example. Idealized celebrity brand ambassadors or overly

romanticized commercials will resonate less than messages presented with a sense of realism.

The urban-rural divide is less useful now as a marketing framework for several reasons. First, the urban-rural gaps

are narrowing, in income, education, and other dimensions. Second, the notion of Multiple Indias more

closely captures the reality of one country combining many differences in geography, language, and culture. Third, all of India is changing. And rural Indians do not match

the conventional stereotypes. Increasingly, they do not aspire to be just country versions of urban people. According to research by Kantar IMRB, rural Indians want to retain their rural identities, while improving themselves and their communities. These changes affect all brand activities, including product development, communication, and distribution.

TRUST

MULTIPLE INDIAS

BRAND MESSAGES MEET CONSUMER

SKEPTICISM

URBAN-RURAL DOES NOT DEFINE INDIA


3130

CROSS-CATEGORY TRENDS

PART 1

Introduction

Consumer confidence is generally strong, but how strong varies by geography, according to the Shopper Barometer of Kantar IMRB. In most urban areas consumers felt more confident and spent more. But confidence sagged in areas known for IT, like Bengaluru, because a startup slowdown impacted employment and the Trump administration America First declarations raised concerns about working or studying in the US. These findings suggest that brands face great opportunity in India, but maximum success requires identifying and adjusting for local fluctuations in spending.

CONFIDENCEOPTIMISM IS STRONG BUT

VARIES REGIONALLY

The rich are getting richer, and some of the poor are still left behind, as people pursue the dream of a New India, but progress at different speeds. Within the SEC classifications of household spending hierarchy, Kantar Worldpanel identified a group it called “Elites.” Adding a few more household characteristics, such as car ownership, revealed a group that spends more on FMCG than other households in top SEC classifications. For brands across categories it is useful to know who these people are and how they spend. It is also useful to understand the less affluent, and to help them become more capable consumers.

WEALTHTHE DREAM IS

CLOSER TO SOME THAN OTHERS

VITAL ACTIONS FOR BUILDINGVALUABLE BRANDSIN TODAY’S INDIA


3332

TAKEAWAYS

PART 1

Introduction

The rise of Indian nationalism does not mean that Indian consumers automatically prefer brands with Indian provenance, but it does mean that they prefer brands that respect their culture, understand their preferences, and communicate in the appropriate language and tone. A brand does not need to be Indian to act Indian.

As India enhances its global profile, the impression of Brand India rises and consumers outside India potentially become

more receptive to Indian products across categories. Continue to be entrepreneurial, but

match entrepreneurship with greater innovation.

Indians are now inundated with brands that have a product or service to sell, and are

reaching them all the time on multiple screens. Being different and being heard requires presenting the message in an emotionally

compelling way that helps cultivate a relationship that is more than transactional.

It is not just about price anymore. Indian consumers want the same things that affluent consumers worldwide seek, which

is, depending on the category, quality products with style and design, or trustworthy products with healthy ingredients. If there is

a difference in India, it is that Indian consumers remain price conscious. They seek value, but value now includes more considerations.

Skepticism is on the rise. Consumers are likely to search the internet to test the veracity of brand messages. Build trust by acting with consistency. Deliver on all brand claims. And when the brand

comes up short, admit to a mistake before it is broadcast all over social media.

The urban-rural divide is an outdated binary concept. Successful brands understand that there are many Indias, and these distinctions can be geographic, cultural, or economic. Economically, as the middle class expands, some people rise to the top, to an elite status, while others are left behind. Brands selling to those who have succeeded need to remember those still struggling. It demonstrates leadership.

BE INDIAN

BE A LEADER

BE EMOTIONALMEET DESIRE WITH AFFORDABILITY

BUILD TRUST

EMBRACE MULTIPLE INDIAS

←


3534

TAKEAWAYS

PART 1

Introduction

Digital India is not simply a government slogan. Throughout India people are spending more time on their smartphones—for entertainment, e-commerce, or banking. Astute digital strategies and tactics are prerequisites for brand success. Brands need to be present on multiple screens, and that often includes TV. As in most markets, digital is growing faster

than any other medium, but as is often the case, India is distinctive. It is the only major media market where

spending on print continues to grow.

The India Top 50 Brands with high Meaningful Difference are twice as valuable as brands with low Meaningful Difference, which is a BrandZ™ measurement of whether consumers view a brand as Meaningful (meeting my needs in relevant ways) and Different (distinctive and trendsetting). Consumers typically describe Meaningfully Different brands as trustworthy and caring.

GAIN A DIGITAL EDGE

CULTIVATE MEANINGFUL DIFFERENCE

37

PART 1

Introduction

36


OUR INSIGHTS

India is not immune to the forces shaping the rest of the world. But the impact varies. Comparing the rise of nationalism in India with what’s happening in the US and the UK, we see a parallel and a difference. The parallel is that India is becoming more nationalistic as the West turns inward, with the rise of anti-immigration and anti-globalization sentiment. The difference is that Indians largely benefited from globalization. It helped raise people from poverty and boosted incomes across the board. Like in the West, we see the disruptive effects of automation, and the big question in India today is, where will the jobs come from? Where will the millions of students graduating from our colleges find work? How will we provide jobs for the migrants who are coming to our cities?

Sonya MisquittaAssociate Vice President, Strategic Planning

Grey [email protected]

GLOBAL CONTEXT

FORCES SHAPING THE WESTIMPACT INDIA DIFFERENTLY

The world is a global village, now more than at any time before and

India is no exception. Indians are able to experience and react to

events in near real time. India’s arrival on the political and economic stage also means that events

can shape consumer behavior and opinions at scale.

Sample two events—Trump’s America First and Brexit have

impacted the IT sector as people analyze the events

and worry about short-term and long-term impacts. This uncertainty

impacts their spending as well.

Shalini Sinha Executive DirectorKantar Millward [email protected]

SPENDINGGLOBAL EVENTS IMPACTCONFIDENCE, SPENDING

Two parallel trends are feeding into each other. The first is accessibility. Because of technology, everyone in the

smallest of towns today has a mobile phone and access to online banking and e-commerce. As a result, they can no longer be ignored

as consumers. Hence, businesses also must be

inclusive. This is the second trend: Inclusiveness, which

touches all brands, large and small, multinational and Indian. Until recently, brand communication (particularly

in tech, e-commerce or “premium” categories) was more slanted to the major metros and the English language.

Today, brands also need to speak in a small-town lingo. Even Indian brands need to get to this granularity, and talk

to people in the languages the they understand.

Siddhant Lahiri Head, Strategic Planning, MumbaiRediffusion Y&[email protected]

INCLUSIVENESSBRANDS NEED TO COUPLEACCESS WITH INCLUSION

We’re seeing a focus on tactical initiatives rather than long-term strategies, especially among FMCG brands. Several factors drive this trend. Demonetization, which took place in November 2016, especially impacted the FMCG category. In addition, the multinationals are doing OK, but feeling the effects of a global slowdown. The affected brands are looking for ways to win at retail and build sales. Put another way, they are after immediate value rather than long-term valuation. This trend doesn’t include all brands. Brands looking for funding are focused on growing valuation.

Paru Minocha Managing Director, Qualitative and West

Kantar [email protected]

VALUE VS. VALUATION

MANY BRANDS FOCUSINGON SHORT-TERM TACTICS

MARKETKNOWLEDGE & INTELLIGENCE


4140

KEY FACTS AND FIGURES

PART 2


Centers of population

(2015 estimate1)

New Delhi25.7 million

Mumbai

Hyderabad

Chennai

Bengaluru

8.9 million

21.0 million

9.6 million

10.1 million

Kolkata11.8 million

GEOGRAPHYLand Area

3.3 million sq. km. 1.2 million sq. mi. (World’s seventh-largest nation, about one third of the size of the US1)

Political Subdivisions

29 states and 7 territories1

Figures are from the World Bank and for 2016 unless otherwise noted. 1 CIA World Fact Book. 2 Government of India

POPULATIONSIZE, GROWTH, AND AGETotal population

1.32 billion

Religion1

Hinduism Islam

79.8%

21.2%

14.2%

Other significantly represented faiths:

Christianity Sikhism Buddhism Jainism

DENSITY, DISPERSION, AND DIVERSITYPopulation Density (People per sq. km.)

Languages

India’s constitution recognizes 22 languages. Hindi is an official language.2 It is spoken by over 41 percent of the population.1

Urban Population Population Below the Poverty Line

(2011)

Population annual growth rate

1.1%

Population by Age (20161)

65 years and over 6.1%

15-24 years 18.0%

25-54 years 40.9%

27.7% 0-14 years

55-64 years 7.3%

India

India Bangladesh

Brazil ChinaIndonesia US Russia UK

Median Age (2016 estimate1)

27.6 31.6 37.129.9 37.9 39.3 40.5

445 147 4

China Canada

1,237

1960

18%

82% 2015

33%

67%

94% of population

ECONOMYGDP

$2.26 trillion (World’s seventh-largest economy, after France)

GDP Rate of Growth

7.1%

GDP Per Capita

$1,709.4

Foreign Direct Investment

Ease of Doing Business

$44.0 billion

$52.5 billion

$42.3 billion

$170.6 billion

$78.9 billion

$33.0 billion

India France

China

New Zealand

Russia Mexico China Iran BrazilUK US

Brazil Russia

Germany

1 189

(On a scale of 1 to 189, 1 being the most business-friendly)

130

1 7 8 40 47 78 120 123

. . .T H E V I S I O N O F A N E W I N D I A .

R E S O L U T E E N T R E P R E N E U R S A N I M AT E . . .

FMCG SLOWS, BUT TELECOM GROWS

KEY GOVERNMENT INITIATIVESIMPACT SPENDING

The BrandZ™ India Top 50 grew a

robust 21 percent in brand value and

India’s GDP continued to expand at

an annual rate of around 7 percent,

greater than all other major economies.

And these developments happened

despite—or possibility because of—

disruption, much of it generated by

Indian government initiatives to be a

leader in the global economy and build

a more equitable society.

With demonetization, implemented in November 2016, the government removed certain cash currency from the market to reduce the underground economy, increase tax revenues, and accelerate the shift to digitalization and mobile wallets. Demonetization initially slowed categories dependent on cash transactions, such as luxury, leisure, and especially FMCG.


4544

DISRUPTION

Most affected categories rebounded quickly, however, as people adjusted to paying with a mix of cash and digital wallets. Mobile wallet transactions increased by a factor of 20 to 206 billion rupees ($3.2 billion) in 2016, compared with 10 billion rupees ($157 million) in 2013, according to Kantar IMRB.

On July 1, India implemented a national goods and services tax (GST), a type of VAT intended to simplify a complicated combination of state and local taxes, add transparency, and make it easier to transact business in India. Other government initiatives also impacted categories.

Make in India, a government initiative started in 2014, opened India to more foreign investment and competition, as it attempted to elevate India into a

center of global manufacturing and design. Chinese handset brands, which cut costs by manufacturing in India, now dominate the Indian market.

The government’s Digital India initiative, in place for two years, disrupted the telecom category, as illustrated by the Jio brand. Introduced less than a year ago, the brand entered the BrandZ™ India Top 50 at No. 11 based on its ability to challenge the category pricing by offering free data.

Similarly, Swachh Bharat Abhiyan (Clean India Mission), initiated in 2014 to improve sanitation, particularly toilet habits, stimulated sales of household cleaning products. Sales of bathroom cleaners, floor cleaners, and liquid hand wash rose noticeably over the past several years.

Because of the dependence on cash transactions, consumption of FMCG products declined after demonetization, in November 2016, and slowly recovered through the first quarter of 2017.

Swachh Bharat Abhiyan (Clean India Mission), an initiative to improve sanitation, particularly toilet habits, stimulated sales of household cleaning products.

Year-on-year change in FMCG consumption

The percentages represent the moving average total (MAT), the 12-month average of sales increases through the month indicated.

Demonetization slows FMCG growth...

… But an initiative to improve sanitation drives sales

Source: Kantar Worldpanel Source: Kantar Worldpanel

5%

0%

-5%

OCT. 2016

0.4%

APR. 2017

3.9%

MAR. 2017

0.6%

DEC. 2016

-2.4%

FEB. 2017

-1.4%

JAN. 2017

0.1%

Toilet / Bathroom Cleaners

Before Swachh Bharat

After Swachh Bharat

18.7%

18.6%

20.6%

26.1%

Floor Cleaners


After Swachh Bharat

8.5%

8.7%

9.5%

11.2%

Liquid Hand Wash


After Swachh Bharat

4.2%

4.8%

5.8%

7.3%

October 2013 October 2014 October 2015 October 2016NOV. 2016

-4.2%

PART 2


SHOPPERS SEEK AUTHENTICITY AND VALUE

CONFIDENCE REMAINS STEADY DESPITE YEAR OF DISRUPTIONS

Indian consumers exhibited

confidence, but sentiment varied by

income and geography, depending

on the impact of local disruptions and

global events. And even as the gaps

between rich and poor, and urban and

rural narrowed, the extremes became

more exaggerated.

India consumers endured a year of successive domestic, government-induce shocks intended to reform the financial system and increase national revenue. Introduced virtually overnight in November, demonetization eliminated certain paper currency to encourage a shift from cash to digital transactions. A national goods and services tax (GST), implemented in July, replaced a complicated system of state and local levies. These disruptions impacted spending.


4746

CONSUMERS // OVERVIEW

Shocks from abroad, like Brexit and the Trump election, resonated quickly because of broad internet access, and stirred anxieties. The American First policies of the Trump administration disturbed consumers working in India’s vast IT sector, for example, resulting in regional variations in spending, according to the Kantar IMRB Shopper Barometer. (Please see page 48).

India also experienced its own version of populism with a nationalist movement that embraced Indian heritage, but without rejecting globalization, which has impacted India in positive ways. While most Indians avoided the more extreme expressions of nationalism, they expressed a desire for products and brands that best understood their particularly Indian sensibilities and tastes. This inclination drove a rise in local brands, put pressure on multinationals, especially in fast moving consumer goods (FMCG) and personal care, and fostered a nostalgia trend.

The accelerated interest in local brands is best illustrated by the rise of Patanjali, which in the decade since it launched has expanded from a narrow focus on Ayurvedic products to a wide FMCG range that challenges established multinationals. Current research by Kantar Millward Brown quantifies the disruptive impact of emerging Indian brands, particularly Patanjali, in FMCG.

In its analysis of Brand Power, the BrandZ™metric of brand equity, in the India Top 50 2017, Kantar Millward Brown discovered that Patanjali increased 64 percentage points, while multinationals grew by less than half that rate, and Indian FMCG brands declined. New Kantar Worldpanel research explains Patanjali’s impact in detail. The Kantar Worldpanel research also identifies an emerging classification of “Elite” consumers who spend significantly more on FMCG than other relatively wealthy households. (Please see page 50). ←

Trust and “Indianness”

In this context of disruptive events, greater access to online information, and a desire for authenticity, consumers scrutinized brands more closely. In the past, when consumers received a brand message they were likely to believe it. Today, they are more likely to ask questions and search the internet for answers.

Living in a communal society, Indians consumers typically have shared information before making a purchase. Today, social media has replaced—or at least greatly supplements—word-of-mouth. The circle of influencers is much wider, and includes bloggers,

especially for urban and other educated consumers who are active online.

To get into the consumer’s consideration set, brands need to earn the trust of Indians who have been impacted by the overall global decline in trust and disappointed by some trusted Indian brands. Indian consumers want to trust. Many were patient with the inconveniences of demonetization because it symbolized the possibility of reducing corruption and elevating the importance of honesty and trust, according to Kantar IMRB.

Once Indian consumers trust a brand, they primarily look for the best offer of value for money. But a brand’s “Indianness” has also become an

important determinant in brand selection. Being made in India is especially relevant in categories such as health and wellness and Ayurveda, where Indian heritage implies high levels of quality and distinctiveness.

Patanjali is the most prominent example of brand that emphasizes “Indianness.” Recently, Patajali has more aggressively promoted its “Indianness” as proof of authenticity when compared with multinational brands. Other brands that promote their Indian provenance include Dabur, a brand of Ayurvedic and wellness products, and Forest Essentials, a premium brand that has reinterpreted and updated Ayurvedic and other Indian personal care and beauty traditions.

PART 2


The consumer desire for brands that authentically capture Indian tastes and heritage has pressured the multinationals and many have responded. Hindustan Unilever, a consumer products giant present in India since 1933, has introduced a new brand of Ayurvedic products, called Ayush, and intends to leverage its extensive distribution system, which reaches even the most remote parts of India.

Colgate has introduced a toothpaste with Ayurvedic properties. In its recovery from recent food safety issues, Maggi, a Nestlé brand, benefited from a reservoir of brand equity built up over time. Maggi rose 66 percent in brand value this year, making it one of the Top Risers in the BrandZ™ India Top 50.

Brands owned by multinationals continue to dominate in certain categories, like durable goods, primarily because they are creating products with benefits designed for the Indian


4948


market. And, in most categories, Indian consumers are likely to make purchase decisions based on product, price, and service—rather than provenance.

Reaching consumers

Reaching today’s more knowledgeable and skeptical Indian consumers requires communicating with real-life, relatable situations. Young people, particularly, are unimpressed with celebrity brand ambassadors who project an unattainable level of perfection. Expansive romantic stories may work for Bollywood movies, but they generally are less effective for selling products.

The detergent powder Ghari appealed emotionally in a commercial aired during the Muslim holiday of Eid-ul-Fitr, a time of purification at the end of Ramadan. The commercial showed friends reconciling differences and gathered for an Eid feast, and it treated the theme of cleansing in spiritual terms, using an Indian word that means wash away.

To differentiate and strengthen their emotional engagement with consumers, many brands connect with relevant progressive social issues, in an expression of nationalism aimed at supporting India’s development. A campaign from the jewelry brand Tanishq promotes empowerment of women. Parachute, a body lotion brand, also advocates for the empowerment of women, with the strapline, “Be confident in your own skin.”

Indian consumers respond to brands that go beyond their transactional relationship with consumers and create an emotional bond, according to Kantar IMRB. When consumers felt stressed immediately after demonetization, brands had an opportunity to respond in empathetic and relevant ways, but few brands met the challenge, Kantar IMRB found. In rapidly transforming India, however, demonetization is only one of many disruptions and brand opportunities.

PART 2


10 CONSUMER TRENDS & BRAND IMPLICATIONS


5150


HERITAGE Growing cultural pride and patriotism are influencing consumer preferences.

BRAND IMPLICATIONSAn international name will not sufficiently appeal to consumers seeking to connect with their Indian roots. Consumers will want cultural references.

SPEED The constant assault of digital data has reduced the consumer attention span and complicated the task of getting consumers to focus on a marketing message or content.

BRAND IMPLICATIONSMarketers need to get to the point—quickly. Words still matter, but visuals captivate. Done well, visuals grab attention and deliver the information before the consumer loses interest.

AUTHENTICITY Enlightened by their own online research, consumers are becoming more skeptical about manufacturer claims and are looking for trustworthy brands.

BRAND IMPLICATIONSProduct claims alone—the “what”—will not satisfy consumer curiosity. They need the “how,” the backstory about the supply chain—sourcing to distribution—that authenticates the brand’s claim.

MINDSET Consumers are as old as they think they are. Traditional demographics, like age, are less relevant than shared interests, activities, and values for identifying and marketing to consumer groups.

BRAND IMPLICATIONSBrands need to identify and understand their audiences based on these new dimensions, and develop relevant products, services, and communications.

HEALTH Concern about health and wellness, and suspicion about product safety, is turning consumers toward natural ingredients in the food and personal care categories.

BRAND IMPLICATIONSThe natural ingredients trend will spread to categories beyond food and personal care, as mindful consumers make safety a key priority.

RELATABILITY Consumers judge the authenticity of a brand in part on their perception of the brand advocates.

BRAND IMPLICATIONSCommunicating authenticity requires moving away from traditional celebrity advocates, who can make brand claims seem “airbrushed.” Consumers respond positively to stories about real people who have surmounted real challenges.

1

5

3

8

2 DIGITAL LIFE Consumers are rapidly changing how they engage with digital, shifting from being online often to search or chat, to being online all the time, seamlessly moving among activities, including purchasing and payment.

BRAND IMPLICATIONSThis change in consumer digital behavior will influence what and how consumers buy. It impacts how and where marketers reach consumers and communicate with them.

ENTREPRENEURSHIP in their rural roots and aspire to careers that elevate themselves and their communities.

BRAND IMPLICATIONSBrands, particularly multinationals, that want to expand their presence in rural India, potentially have capable partners in these entrepreneurial young people.

7 104

SOCIAL CHANGE Mass media, especially TV, traditionally have been the consumers’ window on the world, a resource for absorbing and trying to comprehend the events and influences shaping society. But that mission may be changing, with media’s current emphasis on entertainment.

BRAND IMPLICATIONSAdvertisers may fill this void. Although the purpose of advertising will remain commercial, advertising messages will be an important force for social change.

MEANING Young consumers are less exclusively career-focused than in the past. They have more options and want to explore them. Many young people aspire to be entrepreneurs.

BRAND IMPLICATIONSAs young people choose a less traveled path, their search for meaning and purpose will have Implications for employers and brands.

6 9

Source: Kantar IMRB Consumer Predictions 2017

PART 2


BUT CONFIDENCE VARIES BY INCOME, CITY, AND CATEGORY

METRO SHOPPERSINCREASE SPENDING

Indian consumers are sending mixed

signals, according to the Shopper

Barometer report by Kantar IMRB.

Spending is up compared with a year

ago for wealthier metro shoppers, but

so is the number of less affluent middle

class shoppers who say they are less

confident about their financial situation.

The research, conducted during the first quarter of 2017, looked at shopper mood among the middle class in eight major cities: Mumbai, Kolkata, Delhi, Chennai, Bengaluru, Hyderabad, Ahmedabad, and Pune. It revealed that consumer confidence and spending varied widely by income level and city, and these factors impacted categories unevenly.

RICH FEELING RICHER 44 percent of wealthier urban consumers felt better off financially, compared with only 29 percent of the less affluent.

MOOD DRIVES SPENDING 61 percent of urban shoppers increased spending compared with


5352

CONSUMERS // SHOPPER BAROMETER

a year ago, and they primarily were wealthier members of the middle class.

VARIES BY CITY Confidence and spending declined in Delhi, Bengaluru, and Kolkata, in part because the softening of startup business affected local economies dependent on the technology sector.

Some categories seemed immune to the more cautious consumer mood. More consumers planned to eat out or spend money on fashion or telecommunications, despite a rise in the consumer price index (CPI) in those categories. In contrast, people planned to spend less on household items, spas and personal grooming.

Changing consumer priorities are also expected to affect car sales, as only 15 percent of consumers said they are “very likely” to buy a four-wheel vehicle in the next couple of months, while 29 percent said they planned to travel on a holiday within India.

Consumers expressed less interest in buying cars and more in going on a holiday trip in India or spending on health and fitness.

% Shoppers ‘Very Likely’ to buy in the next couple of months.

Consumer mood affects spending priorities

Source: Kantar IMRB Consumer Predictions 2017

Four-Wheel Vehicle

15%

Tw0-Wheel Vehicle

20%

Holiday Abroad

22%

Health & Fitness Product or Service

25%

Holiday in India

29%

Property Investment

17%

PART 2


THEY SPEND MORE ON FMCG THAN OTHERS

RESEARCH IDENTIFIESNEW “ELITE” HOUSEHOLDS

Indian marketers rely on a Socio-

Economic Classification (SEC) system

to place households into a hierarchy

that helps organize the market and

facilitate planning. Households

belong in one of five classifications (A

to E plus subgroups) determined by

the education level of the household

head and the number of durable

products owned.

A new report by WPP’s Kantar Worldpanel concludes that the expansion of wealth in India is outpacing the recently-revised SEC system. The report—Crystal Gazing: Did you see this coming? — identifies a group of households with a significantly greater spending profile than highest SEC classification—A1.


5554

CONSUMERS // ELITES

The A1 households own least nine durable products and the head has more than a college education. In a comparison of FMCG purchase occasions and average FMCG categories purchased per trip, the report found no difference between A1 households and other relatively wealthy households that own somewhat fewer durable products and where the head may be less educated.

However, by adding a few more criteria to the A1 classification (owning a car and computer, and traveling abroad), the report identified a sub-classification of wealthy Indian households differentiated by its higher spending—an A1+ group. Labeled “Elites” by Kantar Worldpanel, these households spend significantly more on FMCG than other relatively wealthy Indian households.

The FMCG spending of “Elite” households is significantly greater than the spending of other relatively wealthy households.

Penetration is significantly greater for “Elite” households compared with A1 households across many FMCG subcategories.

“Elite” households spend more on FMCG…

… And “Elite” penetration is greater across FMCG

ELITE

72

ELITE

6

ELITE

66

SEC A1

69

SEC A1

5

SEC A1

50

SEC A2/A3

69

SEC A2/A3

5

SEC A2/A3

41

PURCHASE OCCASIONS:

AVERAGE CATEGORIES BOUGHT PER TRIP:

RUPEES SPENT PER KG OF FMCG PRODUCT:

Source: Kantar Worldpanel

Sunscreen Anti-aging Soup Honey Face Wash Hand Wash Milk / Food & Drinks

Butter / Cheese

0%

50%

100%


SEC A1

Elite

PART 2


BRAND FOUND IN 100 MILLION INDIAN HOUSEHOLDS

PATANJALI BRAND INCREASES REACH ACROSS INDIA

In India, the brand Patanjali is

synonymous with disruption. Patanjali

began around a decade ago when

a Yoga guru named Baba Ramdev

started a company devoted to

Ayurvedic healing. Since then, the

brand has expanded into a broad

range of FMCG products and has

opened retail outlets, marketed

relentlessly, and challenged

multinationals.

The Patanjali Group, which includes the brand’s Ayurvedic and FMCG businesses, along with a charitable trust, reported revenue of $1.6 billion for the year ending March 2017, a 111 percent


5756

CONSUMERS // PATANJALI

year-on-year increase, following a 150 percent rise a year earlier. The brand is available at 47,000 points of sale.

Baba Ramdev inspired and capitalized on the current Indian consumer interest in Ayurveda and brands that seem to authentically understand Indian needs. Patanjali’s growth also corresponds with a surge in Indian nationalism.

All these factors contributed to the Patanjali brand’s extraordinary growth—but they did not guarantee it. The other unquantifiable factor is the charisma and drive of Baba Ramdev, for whom brand building seems to be not only a business imperative, but, more fundamentally, a mission.

Patanjali brand FMCG products reach 53 percent of urban households and 28 percent of rural households, up sharply from a year ago.

Patanjali customers come back for more. The customer retention rate for toothpaste is 80 percent, for example, up from 65 percent a year ago.

Patanjali reach rises sharply across India…

… And customers are returning

0% 0%

50% 50%



New research by Kantar Worldpanel, a WPP company, reveals the brand’s scale in new ways that help appreciate its impact. The Patanjali brand is in over 100 million Indian households. And those households typically have Patanjali products in 3 categories compared with 1.8 categories just three years ago.

The brand reach increased dramatically in the past year. Patanjali FMCG products now reach 53 percent of urban households, compared with 31 percent in 2016. In rural India, Patanjali doubled its reach to 28 percent, in just one year. And customers come back for more. The customer retention rate for toothpaste is 80 percent, for example, up from 65 percent a year ago.

Patanjali reach in FMCG. The percentages represent the moving average total (MAT), the 12-month average percent sales increase.

Patanjali Retention Rate. The percentages represent the moving average total (MAT), the 12-month average of retention rate increases through the month indicated.

Urban Household Reach Rural Household Reach

MAT 2017 Overall Household ReachMAT 2016 Overall Household Reach

MAT 2016

14%

MAT 2017

26%

Food & Beverages

MAT 2016

3%

MAT 2017

7%

Food & Beverages

MAT 2016

24%

MAT 2017

45%

Personal Care

MAT 2016

11%

MAT 2017

24%

Personal Care

MAT 2016

9%

MAT 2017

17%

Household Care

MAT 2016

2%

MAT 2017

5%

Household Care

53%

28%31%

13%

0%

50%

100%MAT March 2016 vs. 2015

MAT March 2017 vs. 2016

53%64%

52%58% 65%

80%

Soap Bars Shampoo Toothpaste

PART 2


YOUNGEST MILLENNIALS ARE NEWEST CONSUMERS


5958

CONSUMERS // MILLENNIALS

The term millennial describes a

generation born between 1981 and

2001. People born at the start and the

end of that two-decade period differ

in life experience and attitudes. And

those differences inform their behavior

as consumers.

The youngest millennials, born between 1997 and 2001, are now 16-to-20 years old. They not only are coming of age, but they also comprise 28 million consumers in India. And, according to studies by Kantar IMRB and TNS, they are influential:

One-third have their own source of personal income;

One-quarter live on their own or with friends;

Almost one-third of those living with their parents are the main shoppers for the household; and

Over one-third of those living with their parents influence household purchasing decisions.

In many ways, these younger millennials are similar in their attitudes to older generations. They are equally hardworking, collaborative, responsible, and loyal, which also identify distinctive characteristics that are important for marketers and brand builders.

PART 2


DISTINCTIVE CHARACTERISTICSOF THE YOUNGEST MILLENNIALS


6160

CONSUMERS // MILLENNIALS

MOBILE FIRST This first mobile generation is much more likely to use mobile than prior generations, and much less likely to be on a desktop computer. And while older generations used digital devices primarily for communication, the youngest millennials use them for relaxation.

BRAND IMPLICATIONSBeing mobile-first is critical.

ENTITLED This generation has witnessed many Indian success stories—both on reality TV, and in actual reality. To members of this generation it seems possible to have it all. And many expect to. About a fifth say they have refused to accept a product ordered online because it did not meet their expectations.

BRAND IMPLICATIONSBrands cannot compromise on quality, and they need to surpass expectations—and anticipate needs—to command a premium.

EMPOWERED Technology empowers members of this generation to live their lives without some of the traditional restraints. Compared with earlier generations, this generation is 10 percent more likely to transact online to avoid standing in a queue. And 60 percent want to start their own venture.

BRAND IMPLICATIONSUse the latest technology, such as virtual assistants, to create engaging, interactive, up-to-date, easy-to-use online experiences.

NOSTALGIC The youngest millennials are 20 percent more likely to listen to old film songs on the internet than earlier generations. And 60 percent prefer to return to vacation locations rather than visit new places.

BRAND IMPLICATIONSReminders of earlier, perhaps simpler times help create emotional connections with these consumers.

PRACTICAL Members of this generation have experienced the realities of today’s India, the dramatic economic growth and the growing pains. They aspire, but are realistic about realizing their aspirations. Around 56 percent plan to live with their parents to save money, and about half want to earn supplemental income.

BRAND IMPLICATIONSProducts and services need to provide real value and the value needs to be communicated in a real way.

HEALTHY Compared with earlier generations, the youngest millennials are more likely to try and live a healthy life. Almost half are vegetarians compared with 43 percent of the older generation. And they are 65 percent less likely to consume alcohol and cigarettes.

BRAND IMPLICATIONSThis generation appreciates brands that balance taste with health, and fitness with entertainment.

AGNOSTIC When it comes to searching and shopping, the youngest millennials are everywhere and anywhere. They are channel agnostic. Compared with earlier generations, they are 26 percent more likely to shop online.

BRAND IMPLICATIONSBrands need to provide a seamless experience that is consistent across channels and makes moving among channels easy for the consumer.

VISUAL These millennials have short attention spans and are impatient with advertising. They do watch video and are more drawn to visual images than to text. Time spent on Instagram is four times greater than time spent by earlier generations.

BRAND IMPLICATIONSBrands need to communicate more often and with shorter messages delivered with interesting content and not with a hard sell.

RELATIONAL The youngest millennials value relationships, but the nature of relationships is changing. They grew up at a time when the number of extended families in urban India declined 22 percent and the number of potential friends on Facebook expanded exponentially. They are comfortable with relationships based on equality and shared decision-making.

BRAND IMPLICATIONSBrands will benefit from working collaboratively with these consumers.

Source: Kantar IMRB and Kantar TNS

PART 2


. . .W I T H P E R M A N E N C E A N D P O S S I B I L I T Y .

L A N D A N D P E O P L E E N R I C H I N D I A . . .

MARKETERS NEED TO ABANDON OUTDATED ASSUMPTIONS

RURAL INDIA IS RISING,IN UNEXPECTED WAYS

With growing internet penetration

and wide access to smartphones,

brand marketers may have assumed

that any urban-rural gap in mentality

would begin to narrow; rural people

would start to resemble their urban

peers, and not the other way around.

Those assumptions may be flawed.

Rural Indians do not aspire to be more like urban Indians; they want to be who they are. They want to create a “more confident, progressive, and economically sustainable rural India,” according to a recent WPP Kantar IMRB report called, Revenge of a Scarecrow: Seizing the winds of change in rural India.

The report asserts that marketers have based their assumptions about people


6564

URBAN-RURAL // NEW ASSUMPTIONS

in rural India on faulty stereotypes, and have missed the core cultural insight animating rural Indians: They can make collective progress without sacrificing their roots. Farmers are reinventing themselves as businessmen; women are expanding their roles; and young people are embracing their rural roots, rather than trying to escape them.

“Today’s farmer is aware, optimistic, and ambitious,” the report finds. It describes today’s rural farmer as a leader who is devoted both to his land and to the people he empowers to help develop it. Meanwhile, rural women are quietly pursuing education and seeking opportunities outside formerly restricted roles, but while keeping the aspects of their changing identity in harmony.

Rural youth have “gained colossal confidence in their abilities and are unwilling to embrace the city as an escape route,” according to the report. Young rural Indians are optimistic and entrepreneurial, but they express their ambitions in collectivistic rather than individualistic ways. And this balance is expressed in the rural family, where children are nurtured in a “culture of knowledge,” that places the collective welfare above “individualistic gains.”

To succeed in rural India, marketers need to reject outdated assumptions and embrace the new reality of rural India, according to the report, which recommends that marketers apply these five core rural values:

POWER OF INNOCENCE

Communicate the brand message simply and honestly—and with humility.

PLASTICITY

Be spontaneous and courageous in the way the brand interacts.

PASSION

Empathize with people’s needs and wants, and encourage their odyssey.

PERSEVERANCE

Express commitment to rural India and the aspirations of its people, and be diligent in fulfilling that commitment.

PARTNERSHIP

Create partnerships with local entrepreneurs, listen to their advice and adopt their suggestions.

PART 2



6766

DIGITAL // OVERVIEW

Internet use in India continues to

grow, but the growth rate is leveling,

particularly in urban centers where

penetration has reached 60 percent,

compared with only 17 percent in

rural areas. Rural internet penetration

has grown more rapidly than urban

penetration, expanding at an annual

rate of 22 percent, compared with

7 percent in urban areas, between

October 2015 and 2016.

These conclusions are contained in Internet in India 2016, a report published by Kantar IMRB with the Internet and Mobile Association of India. Overall Internet penetration in India reached 31 percent, with 432 million users as of December 2016, according to the report. The impact of demonetization was expected to accelerate growth, the report said, estimating that total Indian internet users would reach 450 to 465 million during the first half of 2017.

These numbers are forecasts based on extensive research of urban and rural Indians who claimed they used the internet at some time. The numbers are indicative of digitization trends, but they do not represent active internet users, people who accessed the internet within the last 30 days. Kantar IMRB will release those numbers in fall 2017. In addition:

GREATEST POTENTIAL REMAINS IN RURAL AREAS

INTERNET USE EXPANDS,BUT GROWTH RATE LEVELS

Of an estimated urban population of 444 million people, around 269 million people already use the internet;

In rural India, with an estimated population of 906 million people, only 163 million people use the internet; consequently,

Rural India contains a potential 750 million more internet users.

Urban and rural Indians access the internet with similar frequency. Just over half of urban internet users, and just under half of rural internet users, access the internet daily. Around 90 percent of urban users and 83 percent of rural users access the internet once a month.

Indian urban and rural internet users access the internet primarily for the same three reasons, but with differing

priorities. Communication, the No. 1 reason why urban Indians use the internet, is the No. 3 reason for rural Indians. Conversely, entertainment, the No. 3 reason for the urban internet users is the No. 1 reason for the rural users. For both groups, social networking is the second most important reason for internet use.

Infrastructure differences in part drive the differences in use. In general, urban Indians are always connected. Rural Indians connect selectively, because of less dependable service and to save money. Infrastructure improvements and wider use of digital devices for purposes other than entertainment should accelerate the growth of internet use.

The profile of urban and rural daily internet users is similar. In both instances

about a quarter were young men and another quarter are college students. By gender, daily internet users are 60 percent male in urban India and 75 percent male in rural India. The larger presence of women on the internet in urban India results in part because urban women not in the workforce were more likely to use the internet than rural women in similar circumstances.

Most Indians, both urban (77 percent) and rural (92 percent) access the internet the same way—with a mobile device. Among both urban and rural Indians who do not currently use the internet, few indicated that they would in the future. Low awareness of the benefits of the internet was the primary factor behind this low interest. People aware of the internet, but reluctant to use it, cited lack of need.

Indian internet penetration reached 31 percent, with an estimated 432 million users as of December 2016. The growth rate is leveling, but great potential remains, especially in rural India.

Great internet potential remains as penetration slows

0

500

400

300

200

100

TOTAL

278

TOTAL

375

TOTAL

420TOTAL

432

TOTAL

450 - 465

Oct. 2014 (est.)

Oct. 2015 (est.)

Oct. 2016 (est.)

Dec. 2016 (est.)

June 2017 (est.)

101

129157 163

175 - 180

177 246 263 269 275 - 285

Source: Kantar IMRB I-Cube; June 2017 includes the estimated impact of demonetization

Rural internet users (millions)Urban internet users (millions)

PART 2



6968

DIGITAL // E-COMMERCE

With accelerated growth, e-commerce

in India is expected to reach $34.2

billion by December 2017, according to

Kantar IMRB in its Digital Commerce 2016 report. Indian e-commerce

expanded at a compounded annual

growth rate of 30 percent to $26.2

billion between 2010 and 2016.

Travel dominates categories purchased online, with 56 percent share. Tickets for domestic flights account for 40 percent of online travel purchases, but hotel bookings increased 60 percent year-on-year. Travel grew more slowly than other categories year-on-year, however, 29 percent compared with 49 percent.

The next major online sector, retail, commands around 36 percent share. Driven by sales of smartphones and accessories, which make up 41 percent of online retail sales, online retail grew

59 percent year-on-year. Other online categories include: public utilities, where people pay their bills; matrimonial services and classifieds; and other services, such as entertainment booking and food delivery.

Rising internet and smart phone use primarily drive e-commerce growth. Monthly Active internet users totaled 313 million in June 2016, according to IMRB I-Cube, which estimates that the total internet population (including people who may not use the internet monthly) could reach 450 to 465 million by mid-2017.

Demonetization, intended to incentivize people to shift their spending from cash to digital, should facilitate online purchasing. The goods and services tax (GST), introduced in July 2017, also is expected to stimulate growth of online sales because it simplifies the process

TRAVEL DOMINATES CATEGORIES PURCHASED ONLINE

RAPID GROWTH RATE SHOULD ACCELERATE

of online buying by replacing myriad local and state levies with a single national tax. However, some e-commerce companies worry that certain GST rules and high implementation costs will impact their businesses.

Online shoppers come from throughout India, but are predominately urban, 63 percent male and age 25 to 34, although young adults and people 35 to 44 also actively shop online. For now, 69 percent of online purchasers prefer to pay Cash on Delivery (COD), compared with 29 percent who prefer debit or credit cards. The preference for COD reflects the continued dependence on cash and desire to pay for goods only after inspecting them. The need to inspect a product before purchasing also influences the number of people who search online but buy offline.

E-commerce is growing rapidly in India, having expanded at a 30 percent compounded annual growth rate to $26.2 billion, between 2010 and 2016.

E-commerce grows sharply

0

$10BIL.

$20BIL.

$30BIL.

$40BIL.

Dec. 2010

Dec. 2011

Dec. 2012

Dec. 2013

Dec. 2014

Dec. 2015

Dec. 2016

Dec. 2017 (est.)

Source: Kantar IMRB Digital Commerce 2016

$4.1BIL.26,263

INR Crores

$5.4BIL.35,142

INR Crores

$7.3BIL.47,349

INR Crores

$8.3BIL.53,301

INR Crores

$12.6BIL.81,525

INR Crores

$19.5BIL.1,25,732 INR Crores



PART 2



7170

DIGITAL // OLA & UBER

Ride-hailing is among India’s most

dynamic e-commerce growth areas.

To gain insight into consumer attitudes,

Kantar IMRB polled its 30,000-member

e-commerce panel about Uber and

Ola.

These two brands own 99 percent of India’s ride-hailing market, according to Kantar IMRB, which estimates that 6.5 million people use ride-hailing apps and spend around 5.2 billion INR ($80.7 million) annually. Ola is the larger operation, present in 102 cities compared with in 26 cities for Uber. Around 60 percent of cab-hailing app users select Uber, however.

Uber surpasses Ola in customer loyalty, which is an important factor, since consumers tend to stick with their preferred car-hailing brand, and only 10 percent switch from one brand to another. In part to increase loyalty, Ola introduced Ola Select, a subscription service that promises lower prices and greater convenience.

For now, customers prefer that they—and their traveling companions—occupy their car exclusively. Only around a fifth of consumers said they would choose to share their ride. This pattern seems to be changing, however. With more consumers gaining internet access, the ride-hailing brands are adding more affordable ride-sharing options, such as Ola Share Pass and Uber Pool. The report concludes with these recommendations for ride-hailing brands:

Keep existing customer happy, since they express strong preference for their chosen brand;

Continue to innovate with ride-sharing and other options to meet changing needs; and

Attract new customers with greater affordability.

CONSUMERS STICK WITH THEIR PREFERRED BRAND

RIDE-HAILING BRANDS COMPETE FOR LOYALTY

Ride-hailing consumers tend to stick with their preferred brand, and only 10 percent switch from one brand to another.

Ride-hailing customers are brand-loyal

Source: Kantar IMRB E-commerce Panel

38%

10%

52%

OLA

UBER

PART 2



7372

DIGITAL // DATA

MOBILE PAYMENTS RISE AFTER DEMONETIZATION

HIGH DEMAND, LOW PRICESPUSH INCREASE IN DATA USE

Increased demand for messaging

services, social media platforms, and

entertainment apps drove a sharp rise

in data use, facilitated by affordability.

Price promotions by telecom

competitors lowered data costs, and

handset suppliers, especially Chinese

imports, offered sharp pricing.

Data use rose 16 percent just in the quarter that ended in March 2017, according to Kantar IMRB. Consumers spent 37 percent more time on their smartphones than watching TV. They engaged 4.5 hours daily with a smartphone, 3.3 hours daily watching TV, and two hours a week reading print media. In addition, for the first quarter of 2017:

The average time spent on search, social, and messaging platforms rose 42 percent;

News and media continued among the top five categories accessed on mobile; and

Consumers 25 years of age or older spent almost 43 percent more time than average on news and media sites.

And Indian mobile internet users continued to move beyond search and data use. Mobile payments increased sharply following demonetization, in November 2016. The average time spent on the mobile wallet Paytm increased 13 percent in the first quarter of 2017.

Indian consumers devote almost two-thirds of their time on smartphones to search, social, and messaging.

Time on Smartphones

Source: Kantar IMRB Mobi Trak (January to March 2017)

% Time spent on smartphone

Search, Social, MessagingEntertainmentShopping

FinanceNews & MediaOther

Others includes: games, sports, career and education, beauty, food and drink, health, and travel

63%17%

2%2%

1%15%

PART 2



7574

DIGITAL // MOBILE

TRENDS TOUCH A BROAD SEGMENT OF THE POPULATION

MOBILE SCREENS DOMINATE,AND VIDEO VIEWING RISES

Indians are more engaged on mobile

devices than on any other screen,

spending about four hours per day

on their mobile devices, 37 percent

higher than their engagement with TV,

according to Kantar IMRB.

The time spent watching entertainment on smartphones jumped 23 percent just in the nine months ending in March 2017. Average mobile data consumption is expected to increase fivefold by 2021. And video is evolving as a medium for expression as well as consumption.

Several factors drive these developments, including: a rise in entertainment options, more access to OTT services; the availability of 4G;

and a sharp decline in the cost of data use. The changes in mobile video consumption touch a broad segment of India’s population:

Viewing is primarily, but not exclusively, a habit of India’s wealthy middle class;

Over 40 percent of viewers come from less wealthy households;

65 percent of viewers come from non-metro areas;

Over half of viewers are over age 25; and

Women are more likely than men to be avid viewers.

Indian consumers spend an average of three hours per week viewing video on their mobile devices, with 90 percent of the time devoted to Facebook or YouTube. They primarily listen to music and view entertainment, but education and news are the fastest-growing categories. Educational content for preschool is expanding especially fast. Over 20 million Indians are considered avid video consumers, as they spend over 22 hours per month viewing video apps.

PART 2



7776

MEDIA // SPENDING

Spending on digital media is expected

to increase 30 percent in India this

year. The rate is slower than a year ago,

but faster than any other advertising

medium, and it far outpaces the overall

10 percent increase in total Indian

advertising spending.

The rate of total media spending slowed slightly this year because of demonetization and other factors, with spending expected to reach around INR 61,204 crore ($9.5 billion), according to GroupM, in its This Year Next Year 2017 India report.

Although digital spending grew faster than spending on other media, traditional advertising also remained a growing part of the media mix. In fact, India is the only major advertising market in the world where media spending on print advertising continued to increase.

In India, 40 percent of year-on-year incremental media spending went to digital; 60 percent went to traditional media. In contrast, major global media markets on average devoted 77 percent

AS OVERALL SPENDING EASES FROM PRIOR YEAR

DIGITAL GROWTH RATE TOPS OTHER MEDIA

of their incremental spending to digital and 23 percent to traditional media.

Still, India’s digital spending growth rate exceeds the growth rate in many other major media markets, including: Russia, where digital spending is expected to grow 17 percent; China, 22 percent; the UK, 15 percent; the US, 9 percent; Germany, 7 percent; and Brazil, with a decline of 8 percent.

Except for fast moving consumer goods (FMCG), with 27 percent of Indian media investment, spending was distributed almost evenly among categories, led by auto and e-commerce with 8 percent, and followed by retail, telecom providers, banks and financial services, and education. Intensifying competition and increased rural penetration should continue to drive FMCG media spending growth, GroupM predicted.

Spending on digital media increased 30 percent in India last year, slower than the prior year but still faster than any other advertising medium.

Even as digital spending rapidly expands in India, traditional advertising also remains a large part of the media mix.

FMCG continued to attract the largest proportion of media investment, 27 percent.

Digital leads media spending growth…

… But traditional media remains a large part of the mix…

… And FMCG continues to lead category spending

0

50%

40%

30%

20%

10%

TV Press (includes Newspapers

and Magazines)

Digital Out-of-Home Radio Cinema

Source: GroupM This Year Next Year 2017 India

Source: GroupM This Year Next Year 2017 India

Source: GroupM forecasts December 2016

2017(f) vs. 2016(f)2016(f) vs. 2015

10%

4%

47%

37%

6% 12%

8%

4.5%

30%

20%

7% 10%

Media Spending Total % Change 12% 10%

TVNewspapersDigitalOut-of-HomeRadioCinemaMagazines

% Share of media

14.9%

4.7% 4.3% 1.1% 0.7%

8%

8%

7% 6% 5%

5%

4%

4%

3%

23%

45.7%

28.5%

FMCGAutoE-commerceRetail

ServicesConsumer DurablesReal EstateOthers

TelecomsBanks, Financial Services, and InsuranceEducation

27%

PART 2


7978


OUR INSIGHTS

Rural India may still have a long way to go before all infrastructure challenges are overcome. But rural consumers are emerging as a force of their own, requiring marketers to recraft their rural strategies. The latest edition of STAR, a report by Kantar IMRB about rural Indian consumers, provides new details and insights about changes in rural India.

Significantly, the world view of urban Indians is changing. Almost every rural consumer has access to a mobile phone and even the furthest villages are becoming digitally savvy with increasing internet penetration. They are becoming more liberal, especially in attitudes about women. More rural individuals accept the increasing role of women in decision making, and believe that their daughters’ education takes precedence over marriage. Rural Indians express concern about environmental issues and pollution. But they also remain grounded—they believe that hard work determines success and that blind adoption of urban or Western practices is not the route for them to take.

Rural India is determining its own path to overcoming challenges. Post offices are doubling up as financial institutions to sell financial products (a third of villages still do not have a bank). Rural community centers, through which companies can process their rural initiatives, are examples of enablers to faster development. A large proportion of rural consumers are now engaged in non-agricultural occupations.

People aspire to improve themselves and their communities, to create a better rural India rather than live in cities or become rural versions of urban Indians. A collective shift is happening, and in the coming years each village could develop its own identity. The day when the rural consumer says, “Google my village and you’ll hear a lot more,” may not be far in the future.

Sushmita Balasubramaniam Executive Vice President,Kantar - Shopper Insights

[email protected]

URBAN-RURAL

RURAL INDIANS SEEK DISTINCTIVE IDENTITY

The consumer is more informed today. Social media enables access to much more information. Brands are communicating much more over social media. Brands are not only communicating directly with consumers, they also are trying to engage more influencers, like

bloggers, to provide information to consumers.

The growth of social media, and the

availability of more information is helping

make consumers feel more confident

that they are well-informed about brands and able to make smart

choices. Consumers feel more empowered to find a brand that they trust, a brand that will do the right

thing for the customer, and maybe even the country, a brand that has a clear purpose.

Deepshikha Dharmaraj Chief Marketing and Growth OfficerGenesis [email protected]

CONSUMERSEMPOWERED AND INFORMED,CONSUMERS FEEL CONFIDENT

Everyone in India—not just urban or wealthy individuals—has access to data. Look at the numbers. There are 163 million internet users in rural India. Some argue that penetration is low, but that is a huge number. And rural Indians are often accessing the internet with their mobile phones. This democratization of data is important for brands because people don’t want to be deprived of anything or feel left out. For example, Indians love entertainment. Digital has made consumption of entertainment convenient and this second screen is making entertainment choices individual rather than collectivistic.

Sunil Shetty Senior Vice President, Strategic Planning

Contract, [email protected]

DIGITALBROAD CONSUMER

ACCESS TO DATAOPENS OPPORTUNITIES

FOR BRANDS

PART 2


8180


OUR INSIGHTS

Rural India will be a consumption driver and an important laboratory for brands going forward. Rural India’s share of total Indian consumption and share of spending has been steadily increasing. Today, for most FMCG’s, rural India accounts for over half the share of consumption. This development poses a lot of challenges for brands. How does the brand scale across this large market? How does the brand make its products and services locally relevant? And in what language does the brand communicate? Brands face an enormous opportunity, but they will need deep insights to ensure success.

Hemant Mehta Managing Director, Media | Digital &

Chief Strategy Officer, Kantar South AsiaKantar IMRB

[email protected]

RURALRURAL CONSUMPTION

GROWTH COMPLICATES BRAND EXPANSION

Consumers no longer accept brand communications at face value. In the past,

when consumers received a brand message they were likely to believe it. Today, they are

more likely to ask questions and look for information, widely

available on the internet. Consumers

now have more confidence in their own

evaluations. And this change is seen across most categories. This confidence may be most

prominent among young people, where the use of social media

has almost replaced the earlier dependence on word-of-mouth.

Rathina Kumar Associate Vice President, B2B and IndustrialKantar [email protected]

CONSUMERSCONSUMERS

CONFIRM BRANDMESSAGES WITH

RESEARCH

TV’s popularity as an entertainment device is slowly dipping. Today, consumers are engaging with on- demand content across different platforms, devices, and screens. The increase in internet access has empowered viewers to view media content of their choice anywhere and anytime.

With growing smartphone ownership, many people go straight to mobile as their primary screen for consuming content. Digital media players like Netflix, Hotstar, and Amazon are challenging TV as an entertainment medium. The share of media spending on digital is expected to reach 24 percent by 2020 from the current 12 percent.

TV is certainly under threat from the increase in digital media brands. Does this mean that TV will lose its relevance? Not really. Brands have to be present with relevant content on a variety of media. This multi-screen approach will help brands engage better with consumers.

Shradha Jadhav Group Account Director

Kantar Millward [email protected]

MEDIATV SHOULD

REMAIN IN THE MIX,DESPITE RAPID RISE

OF DIGITAL

PART 2


. . . A N D N O T J U S T F O R T H E Y O U N G E S T G E N E R AT I O N .

T R A D I T I O N A L G E N D E R R O L E S A R E C H A N G I N G . . .

THOUGHT LEADERSHIP

BRAND PURPOSE

THEY DREAM BIG AND CHANGEBUSINESSES AND PEOPLES’ LIVES

BRAND VISIONARIESDRIVE VALUATIONSWITH THE PROMISE OF A BETTER FUTURE

PART 3

Thought Leadership


8786

As we look back in time, there

are many examples of visionary

thinkers confronted by naysayers

with myopic vision. But the true

visionaries ultimately could prove

the effectiveness of their ideas with

statistical measurements—production

cost, consumer demand, incremental

growth, bottom-line profit, for

example.

In the absence of such data, how do we evaluate a business and arrive at a valuation? This challenge has become even more difficult over the last two decades, when we have seen new business models taking shape based on innovative technology and the service-sharing economy. The traditional metrics don’t always apply.

Consider Tesla, which sold less than 80,000 cars in 2016, but is valued at around $50 billion, more than Ford and General Motors, which sold several million cars in the same year. Uber, once valued at almost $70 billion, does not own a single taxi cab.

Airbnb, which owns no real estate, is valued at roughly $30 billion, higher than Hilton, Marriott, and the other global hotel chains. In the Indian context, consider the e-commerce site Flipkart, valued at around $12 billion, even after posting a significant loss.

Agreed that all these brands, have a strong financial promise, but that

Amarjeet ThakurSenior Associate Vice President, Marketing CommunicationsMirum, [email protected]

doesn’t justify the over-the-top valuations. There must be something more than just the financial bottom lines and projections that is making these brands so valuable.

On a mission

To understand what makes them so special, we need to look at their mission statements. Tesla promises to accelerate the world’s transition to sustainable energy. Uber wants to make transportation as reliable as running water, everywhere, for everyone. Airbnb wants to help create a world where you can belong anywhere. Flipkart wants to provide its customers a memorable online shopping experience.

And herein lies the answer. These brands promise us a better life… a better future. They are letting their consumers experience the promise through their products and services. And, more importantly, they are in sync with the needs and aspirations of the young generation.

When the traditional business metrics cease to make sense, the emotional appeal takes over. The valuation today is driven by the vague and lofty goals that are arousing consumer emotions. If you analyze these brands closely, they share a lot of characteristics, which are worth emulating and are reflected in these actions points:

BE THE CHANGE These brands don’t ask people to change, but they are themselves the change.

BE PASSIONATE The founders of the brands are passionate about what they do.

DREAM BIG They are not afraid to dream of a Shangri-La.

DO GOOD They want to simplify and enhance people’s lives.

INVOLVE CUSTOMERS They are in constant touch with their customers. Loyalty is paramount.

ROMANTICIZE THE BRAND STORY They all have an emotional, human backstory about how it all began.

A brand is meant to be bold, even larger than life, because otherwise there would be nothing much to look forward to. Today we have dreamers who want to make a difference… to be the change themselves. And who doesn’t love a dreamer, even if the product comes with a hefty price tag.

Mirum offers 360-degree digital media communication services including strategy planning, content creation, media planning and buying, building of websites and apps. Mirum is also a Salesforce Marketing Cloud Partner for India.

www.mirumagency.com

“The horse is here to stay but the automobile is only a novelty—a fad.”

Advice from a banker to an original investor in the Ford Motor Company

NEW INDIA

BRANDS MUST REMAIN CONSISTENT,WHILE ADAPTING TO NEW INDIA

RAPID CHANGESIN INDIAN CULTURECHALLENGE BRANDCOMMUNICATIONS

PART 3

Thought Leadership


8988

In the 2007 Bollywood hit Life in a… Metro, about young people in Mumbai,

a friend advises a 30-year-old woman

to get rid of her inhibitions and

experiment to find the right guy. The

scene departs from the traditional

sanskari culture of obedience and

proper behavior, where a woman is

expected not to express her desires,

let alone practice them.

Ten years later, we have movies like Masaan, Pink, and Parch that portray women as sensual, multi-dimensional characters with natural human shades of love, hate, lust, jealousy, or anguish. These films reflect a new India that is more real.

The sensibilities around traditional Indian culture are changing fast, and brands need to gear up to tell stories about the new India. Brands need to use this opportunity sensibly, with the brand purpose aligned with the values of new India that it portrays.

As researchers, we have a window onto this new India when we conduct cultural ethnographies. We get to observe and hear stories from people who are changing. For them, a shampoo is not a mere hair cleansing or enhancement product anymore; it’s a fragrance that will add excitement to a romantic relationship.

Arnab BhowmikVice PresidentKantar Millward Brown - Firefly [email protected]

Interestingly, this change is not a revelation. Indian mythology and literature are full of stories about using fragrance as a trigger for lust and desire. Until now, we have limited that truth only to showcasing female attraction in deodorant ads.

New reality of Indian identity

The stage is set for marketers to explore the new reality of Indian identity, an India that’s expressive, bullish, and unpretentious. The idea, however, is to use this change smartly and sensibly. Some brands tend to jump onto the bandwagon way too soon for the sake of change without realizing the social responsibility it brings.

A brand needs to be relevant to the belief it portrays to its consumers. Otherwise, the consumers have every reason to feel betrayed as they buy into the stories that a brand promises to deliver in their lives. And brands need to communicate honestly about the disruptions that happen as culture changes.

Tanishq, the jewelry brand synced with the Indian tradition of gifting, executed this beautifully when addressing the theme of remarriage. It showed the disruptive effects of this cultural change in a touching moment involving

the bride, her daughter, and her new husband. The ad illustrated how a brand incorporates new cultural dimensions while sustaining its core identity.

On the other hand, there is plenty of brand content on the digital platform is that is just serving as tear jerkers without delivering on any brand purpose. The new India is an opportunity for brands to make themselves more relatable. But success will require being mindfully meaningful.

Kantar Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research.

www.millwardbrown.com

UNICORNS

CUSTOMERS EXPECT BRANDS TO LINKCOMMERCE WITH SOCIAL CONSCIENCE

AS INDIAN UNICORNINVESTMENT SLOWS, BRANDS MUST SHIFTTHEIR PRIORITIES

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In most parts of the world, chief

executives strive to be steady,

straightforward, and as uncontroversial

as possible. Not in Silicon Valley. Titans

of the technology business tend to be

outspoken optimists whose quests to

challenge entrenched industries and

change the world make them seem

larger than life.

Whether it’s the late Steve Jobs, co-founder of Apple; venture capitalist Peter Thiel; Jeff Bezos of Amazon; or Elon Musk, the inventor of the Tesla electric car, their vision is about global dominance coupled with a sense of relentlessness. Their quests for disruption have been marked by both unrivalled success and spectacular failure. And they’ve been rewarded with sky-high valuations.

Indian tech entrepreneurs have idolized these men, vowing to recreate their success here in India. However, the souring of India’s consumer internet start-ups tells a different story. After pumping billions of dollars into Indian internet start-ups between 2014 and 2015, global investors have tightened their purse strings and begun the crackdown on cash-burn.

In Silicon Valley, tech companies continue to get funding, despite reporting losses for years on end, because investors are willing to give them rope in the hope that one of their moon shots pays off. Not so in India, where investors demand to see a return-on-capital sooner rather than later.

Their ambitions aside, the reason why Indian unicorns like Flipkart, Snapdeal, and Paytm, for example, have had their valuations lowered is because they were spoiled by super abundant capital. These companies raised money at crazy valuations, over estimating growth prospects. They raised money too quickly without having proved their business model. Basic unit economics and need for healthy cash flows were disregarded. They chased growth at the expense of profitability; chased customer acquisition at the cost of customer satisfaction.

Sonya MisquittaAssociate Vice President, Strategy [email protected]

Amanda MendesStrategy [email protected]

These companies have always positioned themselves in a league of their own as hungry, aggressive, and hugely ambitious. However, they need to learn to survive in an era where capital—that was previously on tap—dries up. They have important lessons to learn from companies that have been in business longer. Because businesses that thrive in the long run are those that are self-sustaining. Here are some of those lessons:

DON’T OVER-ESTIMATE THE MARKET SIZE Simplistic assumptions of the size of the market can be dangerous. Just as Kellogg’s assumed it could change Indian breakfast habits when it launched here in 1995, consumer internet companies today point to the huge opportunity of 200 million Indians currently online with a debit or credit card and those from rural India that will come online as connectivity improves.

Rather than identifying a “huge” market, these companies need to identify viable markets, a process that requires gaining the right insights, counting the right people, and envisioning the right innovations to serve those people.

DON’T BE A FOLLOWER, BE A DISRUPTOR For all the innovation in the consumer internet space in India, we are still a follower market. We have copycat versions of Paypal, Amazon, and Uber. If our entrepreneurs spent half their time trying to find a niche for themselves, or re-framing existing problems to find better solutions rather than simply replicating Western business models, they’d be better able to attract capital, employees, and customers.

STAND FOR SOMETHING People want business leaders—and all leaders—to be authentic and stand for things. It’s ironic that in India it is Prime Minister Modi

who has challenged corporates to think big and tackle serious social problems. Whether it’s ambitious goals, such as shifting to e-vehicles by 2030, or programs like Swachh Bharat (to improve sanitation) or Digital India (to expand access)—the prime minister has thrown down the gauntlet to business leaders to help India reach its ambitions.

Unlike the US, India is a country where it’s often the basics that hold us back—unreliable and widely fluctuating electric power, unreliable service networks, limited access to clean water, and excessive air pollution. These are tough problems to crack. That’s why it’s crucial for us to innovate products and services around these conditions. They may not need fundamental technology breakthroughs, but they all require product and business innovation.

Risk taking comes from both a stomach for failure and an enthusiasm for reinvention. Great leaders don’t just communicate their vision, they acknowledge failures when things go wrong and communicate their efforts to fix it. Yet what’s becoming increasingly clear is that corporate missions need to have commerce and conscience at their core. Not because it’s a marketing objective but because consumers and employees increasingly demand it. Businesses have a higher responsibility to address social values. And it’s possible that embracing values can actually help profits and share prices in the long run.

GREY ranks among the world’s top advertising and marketing organizations, operating in 96 countries serving one-fifth of the FORTUNE 500. Its parent company is WPP.

www.grey.com/india

BRAND VULNERABILITY

OPENNESS, CONSUMER ENGAGEMENTSTRENGTHENS BRANDS, EARNS TRUST

BRANDS BECOMINGMORE VULNERABLEIN YOUNGER,DIGITIZED INDIA

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Once upon a time, being a brand

was the surest way to increased

income for an organization.

However, thanks in a very large

measure to the internet, brands are

becoming increasingly vulnerable.

This vulnerability is especially relevant in India, as market influence shifts to a younger generation and traditional values exist in tension with modern trends. Ironically, for brands that need to navigate this tension, vulnerability can be a strength.

The Oxford dictionary describes vulnerability as “being exposed to the possibility of being attacked or open to risks.” In the context of brands, vulnerability, as seen in India during the past decade, is arising from the following factors:

FASTER PRODUCT DEVELOPMENT CYCLES New product development as well as go-to-market cycles have increasingly become shorter. Therefore, the time available to generate higher revenues from a new product launch or a technological breakthrough has reduced significantly.

GREATER CHOICE Thanks to the internet, geographical boundaries have been demolished. And every brand is now just one click away.

MORE COMPETITION The internet also enables small businesses to efficiently reach consumers, an opportunity that was once a prerogative of only large brands.

INCREASED CONSUMER POWER Consumer opinion in a sales cycle has become more influential. News—good or bad—spreads like wildfire.

Hareesh TibrewalaJoint CEOMirum, [email protected]

Additional factors, such as pricing, can impact the brand image, thus resulting in brand vulnerability. And lack of adequate innovation can impact brand equity and weaken loyalty, also making the brand more vulnerable.

Brand building is the antidote

While brand vulnerability has increased over time because of the above factors, brand building remains the surest way to long-term business success, increased profit, and better market capitalization.

Being a pure manufacturer (and not necessarily a brand) may enable huge economies of scale. However, in a competitive market, the only margin for profit is better efficiency. And efficiency will start tapering at some point, resulting in diminishing returns. Also, as a pure manufacturer it is easy to get displaced by a competitor operating from a different—difficult to match—cost model.

Ultimately, brands reflect society. And Indian society is evolving from being perceived as “righteous” (the older generation) to being perceived as “vulnerable” (the newer generation). If the older generation believed in being conformist, the newer generation believes in taking the untrodden path and taking risks. And taking risks makes you vulnerable.

Hence, the new generation does not look upon vulnerability as a negative trait. Allowing oneself to be vulnerable is interpreted as being open to correction and amenable to new ideas and new thinking. The emergence of social media, allows us to express our vulnerabilities, without feeling that we are all alone in our thinking.

Vulnerability is where creativity begins. Vulnerability demands courage. And as Dr. Brené Brown, an American scholar

and author says, “Courage starts with showing up, and letting ourselves be seen.” Thus, brands need to be courageous and leverage vulnerability by allowing their consumers to become a part of the decision-making process.

Whether it is product development, pricing policies, or service delivery issues, the more a brand is transparent and engages with its consumers in the decision-making process, the more it will earn their trust, eventually creating a virtuous circle that benefits all stakeholders.

Mirum offers 360-degree digital media communication services including strategy planning, content creation, media planning and buying, building of websites and apps. Mirum is also a Salesforce Marketing Cloud Partner for India.

www.mirumagency.com

ADVERTISING

MOBILE HABITS, AD BLOCKERS REQUIRECREATIVE RESPONSES FROM BRANDS

THE RAPID GROWTH OF PROGRAMMATICBRINGS CHALLENGES AND POSSIBILITIES

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“Elementary, my dear Watson,”

said Sherlock Holmes to his partner

and friend. It’s a good summary

of programmatic or automated

advertising buying for brands

today, which has quickly become

elementary—a basic necessity.

It’s been only two years since the upheaval of programmatic began in India, and programmatic has become so colossal that even traditional businesses like auto, FMCG, and financial services are spending most of their digital marketing budgets on it.

Brands initially moved to programmatic for two primary reasons: to automate buying and make life easier; and to reach the targeted consumer in the appropriate context. Since then, programmatic has rapidly become more sophisticated to keep pace with changing consumer viewing habits.

Mobile has become the second screen, after TV, for daily video viewing, according to the Kantar Millward Brown Ad Reaction Study. With the launch of the telecom Jio, internet speeds and the number of online data users increased significantly in India. Three other recent video developments factors also influenced the rise of programmatic in India.

Several over-the-top (OTT) players in India launched in India. Netflix, Amazon, and every TV channel (led by Hotstar) made their way to the mobile screens of Indians, and now reach over 100 million users.

Video made in the vertical format made it easier to view content on a phone because it eliminated the need to turn the device sideways.

Native video, content created specifically for social media sites, like Facebook and Twitter, increased dramatically.

Milind PathakChief Operating [email protected]

Video helps us understand content habits, which is a goldmine for any marketer. All these factors have led to a dramatic rise of mobile video ad revenue. Think of a scenario where you have to sell a bar of chocolate with a display ad. Marketers always question the impact of advertising. In the past, it was about the change of share of voice or brand image. However, a part of this is now shifted to sales: is my advertising positively affecting my sales?

Performance-driven platform

With this in mind, many brands, traditional or modern, will be looking at advertising as more of a performance-driven platform. Gone are the days when cost per impression (CPI) and cost per action (CPA) were performance metrics. Cost per lead (CPL) will prevail now. How will I be able to sell my product with every ad impression will be the question on every marketer’s mind. Programmatic provides both answers and challenges.

Mobile blockers in India have the second highest penetration in the world after Indonesia; but

Marketers should see this as an opportunity to innovate, instead as a threat. No one needs accidental clicks and forced ad viewing from their consumers; and

Engagement is not only about reaching right people at the right time, it’s also about reaching them with the right communication that doesn’t disturb their ongoing online activity.

The creative side of media planning will come into play here. Media planners and strategists must now come up with engaging ad spots that will reduce ad blocking. With 80 percent of internet traffic in India coming from mobile, content needs to be created for mobile only. Cutting two-minute TV ads to

30-second slots for mobile will not work. Brands should instead create ads made purposely for mobile. Rich media ideas, games, innovative storytelling using voice and video can impact advertising immensely.

Placement problems

Once brands create compelling ads, they need to avoid potential placement problems. Google was impacted this year when many major brands suspended advertising on YouTube until the channel addressed concerns that ads appeared adjacent to inappropriate or offensive content. Facebook addressed questions about how it measures video views. We should learn from the issues faced by these tech giants and create our own brand safety and measurement guidelines (keeping the structure of global mandates). Work with publishers and create your own measurement guidelines. Create a transparent measurement system that allows you to keep tabs on your campaign visibility and performance.

And let’s bring back Watson, but not from Sherlock Holmes, from IBM. Let’s bring artificial intelligence (AI) to advertising. AI will be able to gauge the consumer’s mood and predict our needs and desires. When the viewer sees ads for pizza, AI will anticipate the consumer’s need and place an order. In this future, advertising not only sells products, it makes life easier.

A recognized specialist focusing exclusively on mobile media and advertising, Madhouse brings advertisers together with mobile media publishers to unleash the power of mobile media advertising.

www.madhouse.cn

FUTURE-READY BRANDS

CONSUMER ATTITUDES AND BELIEFS INFORM BRAND VISIONS AND TACTICS

FUTURE-READYBRANDS STUDY HOW CONSUMERSARE CHANGING

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The future is an adventure, going into

the unknown with a sense of thrill and

anticipation. Building a brand for the

future is not easy. It demands both

vision and practicality. Somewhat like

ziplining, we need equipment to carry

the brand forward with momentum,

while keeping it safe at most times.

The joint demands of vision and practicality, at first glance an odd couple, are best understood and reconciled through the lens of the consumer. The lens of consumer attitudes and beliefs provides a visionary, yet practical, scale that can help us prepare brands.

In a volatile, unpredictable but exciting future, this scale can help equip brand builders to take actions that are most likely to make their brands more future-ready, more aligned with the expectations of the next generation—the millennials. Here are three key characteristics of future-ready brands.

Future-ready brands are fun

The first aspect to measure is whether consumers associate a brand with having fun. Consumer data emphasizes that millennials are not only driven to achieve, but also have an equally strong yearning for fun. The twin drivers of achievement and fun lead to a consumer behavior defined as cocooning.

The term cocooning emerged in the early 1980s to describe stay-at-home behavior. Recently, there has been a resurgence in cocooning, with consumers immersed in their own world anywhere, anytime. Cocooning behavior, like watching an online video, is exhibited late night, while commuting, eating, or shopping.

Shaziya KhanSenior Vice President and Executive Planning DirectorJ. Walter Thompson, [email protected]

Diving deeper, the emotional needs for cocooning are to escape from boredom, anxiety, dull routine, or even a messy problem. These motives signal, at the core, a need for an emotional release. A recent report notes that enjoying life and freedom are two of the four fundamental life needs of the new generation (the others being self-reliance and protecting family). Hence, brands need to check whether they are in step with the consumers’ yearning for fun.

Future-ready brands do good

The second aspect to measure is whether consumers associate a brand with contribution to the social good. Over 80 percent of millennials believe it is important to leave a legacy of goodwill, to leave the world a better place for future generations, to balance out inequalities in the world. They believe that it is their generation’s responsibility to shape the future of their country, according to the JWT BRIC millennials survey.

The survey finds that millennials are actively looking for ways to voice their opinion about social problems. In addition, there is overwhelming evidence that in an increasingly transparent world, consumers expect business to earn profit with purpose. In modern times, brands are expected to contribute toward a social cause. Hence, to be in step with the consumer mainstream, and the expectation of advancing the social good, brands need to have a tangible dimension of social good associated with them.

Future-ready brands are different

The third aspect to measure is whether consumers see a brand as different in some way or other. Nearly 50 percent of millennials affirm that their own life will be very different from that of their parents. An “I’ll pave my own way” thinking permeates the minds of millennials.

Over 70 percent agree with these statements: “I would date/marry outside my race,” “I view race differently than my parents’ generation did,” “I don’t see anything wrong with men taking on jobs traditionally associated with women or vice versa,” “technology has put so many professional and entrepreneurial opportunities in front of me.”

We see there is an abundance of “we’re different” data points about young consumers, and to be relevant to them, in the present and future, brands need to define themselves and, more importantly, embrace their own difference.

JWT is the most admired marketing communications agency across its network in India, Sri Lanka and Nepal. The companies that comprise the South Asia network are Contract, GGE, HDS, Mirum and ADK Fortune.

www.jwt.com/worldwide

SOCIAL RESPONSIBILITY

INITIATIVES HELP BUILD BOTHECONOMIC AND SOCIAL VALUE

ADDRESSING SOCIAL PROBLEMS, BRANDS SUSTAIN RELEVANCE IN CHANGING INDIA

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Brands are perhaps stronger today

than at any time in history. Apple’s

valuation is greater than the GDP

of some countries. The question

arises: Can brands continue to be

relevant in today’s world without

embodying some form of brand

social responsibility and identifying

themselves with a mission that is

larger than sales targets and market

shares?

This question is graining greater traction in India because of the convergence of three distinct and concurrent trends:

THE CONSCIENTIOUS CONSUMER A large segment of consumers in India today has grown up being taught to be conscious—ecologically and socially—and this segment will continue to increase.

THE CONNECTED WORLD Because of digitization and mobile devices, Indians have access to more information that enables them to scrutinize brands and have a point of view on brand decisions.

RESPONSIBLE BRANDS Brands in India are increasingly articulating a clear purpose. They are emulating some of the brand pioneers in this area, such as Dove and The Body Shop, which raised consciousness about the ideals of beauty, and the ingredients in beauty products.

These trends have shown that corporate social responsibility (CSR) is just a start, and that investments that connect a brand to a higher social good are also good for business. Many brands have taken steps in this direction.

Sunil R. ShettySenior Vice President, Strategic [email protected]

Progressive messaging

Some Indian brands have started adopting progressive messaging, expressing a point of view on social issues. Laundry detergent Ariel has communicated themes of social change and gender equality in its “Share the Load” campaign, which questions the traditional separation of roles in a household. Similarly, the jewelry brand Tanishq has championed woman’s empowerment in its ads, while Anouk, a clothing brand, challenged mindsets towards sexuality.

Other Indian brands have created campaigns to address social problems, such as poverty or malnutrition. A Whirlpool initiative encourages people to donate, rather than discard, their used clothing. The sugar substitute Sugar Free donated the equivalent of calories consumers saved using its product, to a charitable foundation providing midday meals for underprivileged children.

These initiatives create a direct and causal link between the brand and a social cause, but they also tend to be topical, one-time events rather than part of a sustained conversation between the brand and consumer. That conversation is important and could be the next step.

Embedding goodness

Doing good is not an activity for bands to engage in for short-term rewards and benefits. Rather, when doing good is intrinsic to the brand’s purpose, it can help create long-term assets, which have tangible value to the consumer and the corporation. Brands can start with these three brand-building actions:

SET AN AMBITIOUS GOAL A goal that builds on core competencies does not need brands to divert resources and energies into peripheral activities. Volvo’s Vision 2020 is that no one should die or be seriously injured in a Volvo. It builds on the brand’s core purpose of safety.

IMPROVE PEOPLE’S LIVES Lifebuoy is an excellent example of a brand that has ascribed a larger purpose to its soaps and other personal hygiene products by linking them to improved sanitation to protect children from disease.

CREATE OPPORTUNITIES FOR STAKEHOLDERS Create opportunities for consumers to benefit from the brand’s business. Dairy brand Amul invests in helping dairy farmers improve their agricultural practices and, in turn, their lives.

As business professor and author Michael Porter said, “The most powerful way for business to benefit society is by addressing social issues connected to the company’s industry and society directly with a business model.” In India, the time is ripe for brands to start thinking of valuation through a fresh lens—as a combination of the economic value and social value that they create.

At Contract, we believe in building brands from the heart. As one of India’s finest full-service integrated communication agencies, we believe in being driven by our passion to engage consumers. We nurture some of the most pioneering brands in Indian advertising with the assurance of creating effective, award-winning work across all mediums of advertising.

www.contractindia.co.in

APPS

MORE INDIAN BRANDS NOW COMBINEMULTIPLE SERVICES ON A SINGLE APP

CONSUMERS DESIRETO USE FEWER APPS, AND BRANDS MUSTBRIDGE THAT GAP

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Consumers are looking for apps

that help them connect multiple

digital elements in their lives—from

household chores to work, travel,

entertainment, shopping and

beyond. The future of apps is about

aggregating multiple services into a

single app acting like a one-stop shop

for different consumer needs.

How simple life would be if you could order that pizza, pay last-minute bills, and book a cab on the run while simultaneously replying to text and emails, all from a single app. But many marketers are running in herd in another direction, blindly eyeing a share in consumer’s mobile device and mind.

Meanwhile, the value of apps is gradually dwindling with proliferation of over 2.8 million and 2.2 million apps on the Google and Apple app stores, respectively. As high as 75 percent of apps are uninstalled soon after they are downloaded. Discovering and downloading the app that best suits a user’s needs takes time. It sometimes makes more sense for the user to search for the appropriate service on Google.

With each app trying to woo consumer attention, what marketers fail to realize is that mobile users have limited attention span. Consumers choose apps with an aim to simplify their daily grind and are likely to stick to them only if these apps continue to ease their drudgery.

The battle for a share in consumer’s mobile phone is fierce. Each new installation competes for space with essential apps like WhatsApp and Facebook. In addition, consumers complain about poor user experience, battery drains, and data waste.

Varun JainResearch Manager, Media and Digital PractiseKantar Millward [email protected]

Bridging the app gap

Marketers need to devise a better way to bridge the gap between the apps they offer and the simplified life consumer’s desire. This app gap can prevent brands from making the consumer’s consideration set. A single app with multiple uses can work well for consumers especially in low bandwidth areas.

Brands in India understand the need to aggregate and are increasingly adopting this concept. Calling itself “India’s first all-in-one app,” Tapzo partners with over 35 providers to integrate apps for device recharging, bill payment, cab booking, food ordering, and various services, including access to news, videos, and other content.

Paytm is a classic example that integrates shopping, entertainment, travel, utility payment, and banking services from multiple providers in a single app. Earlier this year, Google launched its app Areo, which integrates restaurant delivery and home services. Flipkart is also reportedly planning to roll out a single app to integrate food ordering, cab hailing, travel booking, and shopping for daily essentials.

While aggregating services may help ease the consumer’s life, it is not like one size fits all. The benefits are tangibly visible, however adopting this approach comes with its own set of challenges and might evoke skepticism from many marketers. Some critical considerations when executing include the following:

Aggregation should not come at the cost of personalization. The app content needs to be fluid and dynamic, serving user with the information and experience that is in line with each user’s interests, preferences, location, and intention.

The user experience is a prime concern. Aggregating your offerings within an app that fails to provide the right usage experience can dilute brand equity. Content and experiences should be compelling enough for a user to engage with the app time and again.

There is an underlying cost in acquiring a user base, and keeping users hooked to the platform is equally challenging. Results will happen over time. Achieving scale with one-stop apps will largely depend on the app design offering seamless interface coupled with attractive incentives.

Kantar Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research.

www.millwardbrown.com

. . . A N D M O R E E S S E N T I A L F O R B R A N D S U C C E S S .

S TA N D I N G O U T F R O M S A M E N E S S I S H A R D E R T O D AY. . .

THE INDIA TOP 50

Brand CategoryBrand Value

2017 $MBrand Value

2016 $MBrand Value

% Change 2017 vs. 2016

Rank Change

Brand Contribution

26 Food & Dairy 1,157 1,325 -13% -7 5

27 Entertainment 1,064 - NEW 2

28 Personal Care 1,035 1,016 2% -3 3

29 Food & Dairy 1,025 879 17% -1 3

30 Tires 1,003 667 50% 5 4

31 Soft Drinks 983 929 6% -4 4

32 Food & Dairy 974 587 66% 7 4

33 Personal Care 928 808 15% -4 4

34 Paints 928 739 25% -2 5

35 Insurance 877 464 89% 10 3

36 Food & Dairy 877 708 24% -3 5

37 Airlines 874 1,011 -14% -11 1

38 Personal Care 869 797 9% -8 4

39 Banks 862 604 43% -1 3

40 Automobiles 862 544 59% 1 2

41 Personal Care 737 695 6% -7 4

42 Motor Fuels 684 511 34% 0 4

43 Motor Fuels 669 481 39% 1 3

44 Automobiles 658 432 52% 4 3

45 Home Appliances 592 - NEW 2

46 Personal Care 585 560 4% -6 5

47 Entertainment 529 - NEW 3

48 Telecom Providers 507 745 -32% -17 2

49 Insurance 487 - NEW 4

50 Banks 484 - NEW 3

Brand CategoryBrand Value

2017 $MBrand Value

2016 $MBrand Value

% Change 2017 vs. 2016

Rank Change

Brand Contribution

1 Banks 17,965 14,438 24% 0 4

2 Telecom Providers 10,233 9,978 3% 0 3

3 Banks 8,334 6,352 31% 0 5

4 Paints 4,717 4,089 15% 0 4

5 Banks 4,697 3,957 19% 0 4

6 Banks 4,522 3,333 36% 1 2

7 Automobiles 4,449 2,850 56% 1 2

8 Automobiles 3,564 3,403 5% -2 3

9 Automobiles 3,295 2,807 17% 0 3

10 Banks 2,428 2,377 2% 0 3

11 Telecom Providers 2,427 - NEW 2

12 Banks 2,395 1,814 32% 0 3

13 Motor Fuels 2,131 1,467 45% 3 4

14 Telecom Providers 2,102 2,214 -5% -3 2

15 Food & Dairy 1,861 1,550 20% -1 3

16 Food & Dairy 1,747 1,623 8% -3 3

17 Automobiles 1,620 1,402 16% 0 3

18 Lubricants 1,613 1,541 5% -3 5

19 Home Care 1,425 1,394 2% -1 3

20 Personal Care 1,323 1,269 4% 1 2

21 Alcohol 1,310 1,313 0% -1 4

22 Home Care 1,306 1,113 17% 1 5

23 Jewellery 1,231 1,060 16% 1 3

24 Retail 1,190 - NEW 1

25 Alcohol 1,170 1,197 -2% -3 4

BRANDZ™ TOP 50 MOST VALUABLE INDIAN BRANDS 2017

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Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)Brand contribution measures the influence of brand alone on earnings, on a 1-to-5 scale, 5 being highest.

109108


TOP 10 RISERS Top 50 Rank Brand Category

Brand Value

2017 $M

Brand Value

2016 $M

Brand Value % Change

2017 vs. 2016

1 35 Insurance 877 464 89%

2 32 Food & Dairy 974 587 66%

3 40 Automobiles 862 544 59%

4 7 Automobiles 4,449 2,850 56%

5 44 Automobiles 658 432 52%

6 30 Tires 1,003 667 50%

7 13 Motor Fuels 2,131 1,467 45%

8 39 Banks 862 604 43%

9 43 Motor Fuels 669 481 39%

10 6 Banks 4,522 3,333 36%

(Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg

BRANDZ™ ANALYSIS

MARKET STRENGTH, INSIGHTDRIVE HIGH VALUE GROWTHAUTOMOBILE AND FINANCIAL BRANDS PREDOMINATE

With a total of six brands

represented, the automobile

category, and categories dependent

on automobile sales—tires and motor

fuels—dominate the Top 10 Risers,

the list of brands that increased the

most in brand value year-on-year.

Financial services are also well

represented, with two bank brands

and one insurance brand. One FMCG

brand made the Top 10 Risers.

The presence of three automotive brands, the same number as in last year’s Top Risers, reflects the strength of the automobile category and the insight certain brands exhibited, responding to changing consumer preferences with innovation and new launches. Passenger vehicle sales grew 9.2 percent for the year ending March 2017, surpassing 3 million units for the first time, according to the Society of Indian Automobile Manufacturers. The automobiles category in India includes both two-wheel and four-wheel vehicles.

The two bank brands increased value despite bad debt issues that slowed category value growth a year ago. One brand is private, the other is a public-sector bank, indicating that, regardless of legacy, customer focus can lead to growth. The life insurance brand reflects the category’s potential as India’s middle class expands and customers seek to grow their wealth and build protection for themselves and their families. The FMCG brand is a rebound story.

Royal Enfield, a motorcycle brand known for performance and driving experience, benefited from a growing consumer interest in more powerful motorcycles. Around 20 percent of consumers who consider purchasing the brand are car owners, according to Kantar Millward Brown BrandZ™ research. Royal Enfield supports biker groups, engaging them on social media, and it markets Royal Enfield-branded motorcycle accessories. Because of its brand strength, Royal Enfield also enjoyed strong export sales. The brand value increased 59 percent, on top of a 35 percent rise a year ago.

Maruti Suzuki stretched the brand beyond its traditional appeal to the value segment of the market. While Maruti Suzuki brand launched models for its core customers, it also introduced new showrooms, called Nexa, to reach premium customers through an exclusive channel instead of its existing dealer network. Known as a brand that offered good after sales service, Maruti has enjoyed a high level of Trust and good word of mouth, according to Kantar Millward Brown BrandZ™ research. The brand has added Status and Innovation as key drivers of consideration. Its 56 percent value increase followed last year’s 23 percent rise.

In contrast, TVS stuck with the basics, emphasizing the features and fuel economy of its two-wheelers to take advantage of the increasing interest in scooters. Until recently, scooters had been an entry point for shoppers who eventually would trade up to a more expensive car. Scooters have become the Indian household’s second vehicle, however, relied on for utility, convenience, and versatility in winding through crowded urban streets. TVS increased value 52 percent.

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The 50 percent value rise of tire-maker MRF is partly explained by its strength as an original equipment manufacturer (OEM) to automobile manufacturers. MRF also benefited from the rising prices for Chinese tires sold in India. At the same time, MRF leveraged these favorable conditions by aggressively marketing, particularly on TV, and engaging sports celebrities, usually cricket players, for ad campaigns.

Indian Oil and Bharat Petroleum operate extensive refinery businesses. But the state-owned brands increased in brand value in part because of their motor fuels businesses. Indian Oil and Bharat Petroleum operate networks of around 25,000 and 13,500 fuel stations, respectively.

ICICI Prudential increased the price of certain key policy premiums, which now average twice the price of equivalent products from private players. It accomplished this price rise through strategic collaborations across different bancassurance partners. ICICI Prudential led the Top Risers with an 89 percent increase in value, following

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The India Top 50

a 10 percent decline a year ago.

The Top Riser banks—Punjab National Bank and Kotak Mahindra Bank—cultivated their brands in different ways. A state bank, Punjab National Bank is customer-focused and more agile than some of its competitors. Because its branches are located primarily in the industrial areas of India’s north and west, the bank was less exposed to problems with farming loans. Punjab National Bank increased value 43 percent, following a 51 percent decline a year ago.

Kotak Mahindra Bank launched India’s first mobile bank. It plans to double its customer base in the next few years led by the digital channel. The brand’s 36 percent rise in value follows a 39 percent rise a year ago.

The instant noodle brand Maggi rose 66 percent in value, following a 24 percent decline, as the brand recovered from a food service scandal. Buoyed by strong brand equity, and aligned with a nostalgia trend, Maggi successfully renewed customer loyalty.

←

BRANDZ™ ANALYSIS // TOP RISERS

BRANDS ADAPT CONSUMERINSIGHTS, CATEGORY SURGESNEW MODELS COMBINE STYLE AND AFFORDABILITY

The automobile category

experienced a dynamic year, with

passenger vehicle sales growing

9.2 percent, exceeding 3 million

for the first time, according to

the Society of Indian Automobile

Manufacturers. Several Indian

brands introduced models

with contemporary design

that more closely matched the

aspirations and budgets of Indian

consumers.

While customers for entry-level cars sought good functionality and a low price, shoppers for mid-market cars desired a combination of performance, style, and price that—until recently—has been available primarily from multinationals.

Indian brands succeeded not only because of what they did right—understanding the local consumer—but also because of what some multinationals did wrong—compete with global models, not sufficiently modified to meet Indian needs and tastes.

These results reveal how the car category, evolving with the needs of the Indian consumer, has added complexity to a formerly limited segmentation of small cars, usually hatchbacks, along with sedans, and luxury cars.

When Indians purchased their first car in the past, they chose a basic car at an entry-level price point. Today, even some first-time buyers expect more style and features, and may be willing to stretch a bit to get something more than a utility vehicle.

// AUTOMOBILES

113112

TOP 50 MOST VALUABLE INDIAN BRANDS 2017PART 4

The India Top 50

BRANDZ™ ANALYSIS

115114


NEWCOMERS Top 50 Rank Brand Category

Brand Value 2017 $M

11 Telecom Providers 2,427

24 Retail 1,190

27 Entertainment 1,064

45 Home Appliances 592

47 Entertainment 529

49 Insurance 487

50 Banks 484

(Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg

JIO ENTERS TOP 50, MONTHS AFTER LAUNCH DIGITAL GROWTH DRIVES TELECOM AND ENTERTAINMENT BRANDS

The highest-ranking newcomer to

the BrandZ™ India Top 50 is Jio, a

brand that did not exist a year ago. It

entered the ranking at No. 11, having

spent the past 12 months disrupting

the telecom provider category with

a series of free-data promotions that

in just the first few months attracted

over 100 million customers.

To put this accomplishment into perspective, four of the other seven Newcomer brands entered the India Top 50 in more typical fashion, near the bottom of the ranking. The seven Newcomers come from six categories. Along with telecoms, the categories and brands are retail, D-Mart; home appliances, Whirlpool; insurance, Bajaj Allianz; banks, Canara Bank; and entertainment—a new category to the India Top 50 this year—with Sun Direct and Dish TV.

The presence of the two entertainment brands and the rapid rise of Jio, illustrate how rapidly India is digitizing and consumers are changing their media consumption habits, using their mobile screens for downloading data and viewing a rapidly-expanding amount of available content.

Part of Reliance Industries, Jio introduced its telecom service to Indian consumers in September 2016. Along with rapidly building its customer base by offering free data, Jio introduced a free 4G feature phone called JioPhone. Customers paid only a refundable deposit for phone, which helped Jio build business by expanding digital access.

Of the entertainment brands, Sun Direct operates mostly in southern India, where it has its own channels. Dish TV focuses on the rest of the

country. Growth for these brands comes especially from smaller cities and rural India, where cable penetration has been limited because of last-mile installment challenges. These direct-to-home, satellite-based suppliers enable rural customers to leapfrog cable.

D-Mart succeeded in part by countering key retail trends. It is opening physical stores when consumers are increasingly shopping online. And it operates hypermarkets when most large-format operators are reducing their store footprint. Plus, D-Mart is opening more stores, beyond its concentration in western India, around Mumbai, Maharashtra, and Gujarat. The brand focuses on lower-price, fast-turning items. The company launched a successful IPO and earned strong profits.

The home appliances brand Whirlpool expanded its product portfolio. Known

in Indian primarily for its washing machines, Whirlpool is offering other appliances, including refrigerators and air conditioners. Both categories, especially air conditioners, are growing in response to greater consumer wealth and evolving middle class desires. And multinational brands, like Whirlpool, continue to dominate in appliances, despite the rise of local brands in other categories.

The financial services brands benefited from the relatively low penetration of insurance and banking services in India, and the rapidly growing need. Bajaj Allianz Life Insurance Company Ltd., a joint venture with Germany’s Allianz SE, offers a full range of life insurance and general insurance products. Established in 1906, and present across India, Canara Bank increased net profit almost 10 percent, following a difficult year that impacted the banks category. Canara Bank is reentering the India Top 50, having first appeared in 2015.

PART 4

The India Top 50

// NEWCOMERSBRANDZ™ ANALYSIS

* Reentering the India Top 50

*

117116


TOP 10 IN BRAND CONTRIBUTION Top 50 Rank Brand Category

Brand Value

2017 $M

Brand Contribution

Index

1 46 Personal Care 585 5

2 22 Home Care 1,306 5

3 34 Paints 928 5

4 3 Banks 8,334 5

5 26 Food & Dairy 1,157 5

6 18 Lubricants 1,613 5

7 36 Food & Dairy 877 5

8 4 Paints 4,717 4

9 30 Tyres 1,003 4

10 21 Alcohol 1,310 4


BRAND CONTRIBUTION ADDS LONG-TERM BRAND STABILITYRANKING REMAINS CONSISTENT YEAR-ON-YEAR

Brand Contribution, a BrandZ™

metric, measures the value of

a brand itself—the intangible

asset that exists in the minds of

consumers—stripped of any market

influences, such as price, availability,

and distribution. Put another way,

Brand Contribution is the portion of

a financial value generated by the

brand’s ability to increase purchase

volume and charge a premium.

Brand Contribution can take time to build, but it is enduring. Except for one brand—the tire brand MRF—the 2017 Brand Contribution Top 10 is identical to the Brand Contribution Top 10 from last year, and little changed from 2015 and 2014. Brand Contribution is expressed as an index that is scored 1 to 5, with 5 being the best score.

Brand Contribution high scorers typically have cultivated the three BrandZ™ components of brand equity. They are Meaningful (consumers have an emotional affinity with them and feel the brands meet their needs),

Different (consumers feel the brands are distinctive or trend setting), and Salient (consumers think of them quickly when considering a purchase in the relevant category).

Brands high in Brand Contribution enjoy strong Brand Power, the BrandZ™ metric of brand equity, and they increase brand value faster. Between 2014 and 2017, brands with high Brand Contribution increased 38 percent in brand value on average, while brands with low Brand Contribution increased only 18 percent.

In addition, brands high in Brand Contribution have a high Vitality Quotient (VQ), a BrandZ™ metric of brand health. The VQ score is a composite of the scores in five indicators: Brand Purpose, Innovation, Communications, Brand Experience, and Brand Love.

An average score for VQ and for the five indicators is 100. Brands with high Brand Contribution achieve a VQ score of 116. Other brands in the India Top 50 averaged a score of 108. Brands high in Brand Contribution also outscored other Top 50 brands, on average, in the five indicators.

←

PART 4

The India Top 50

40%0%

Brand Contribution

HIGH (4,5) Brand Contribution

MEDIUM (3) Brand Contribution

LOW (1,2)

+38%+23%+18%

Brands with higher brand contribution are more powerful and grow value faster

Brands high in Brand Contribution enjoy strong Brand Power, the BrandZ™ metric of brand equity, and they increase brand value faster.

% value growth 2014 to 2017


// BRAND CONTRIBUTIONBRANDZ™ ANALYSIS

119118


…And brands high in Brand Contribution are healthier

Brands high in Brand Contribution have a high Vitality Quotient (VQ), a BrandZ™ metric of brand health. The VQ score is a composite of the scores in five key attributes: Brand Purpose, Innovation, Communications, Brand Experience, and Brand Love.


BRAND PURPOSE

OTHER TOP 50 BRANDS

106

BRAND CONTRIBUTION

TOP 10

113

INNOVATION

OTHER TOP 50 BRANDS

109

BRAND CONTRIBUTION

TOP 10

118

COMMUNICATION

BRAND CONTRIBUTION

TOP 10

117OTHER TOP 50

BRANDS

109

BRAND EXPERIENCE

BRAND CONTRIBUTION

TOP 10

115OTHER TOP 50

BRANDS

107

LOVE

BRAND CONTRIBUTION

TOP 10

116OTHER TOP 50

BRANDS

108

=BRAND

CONTRIBUTION TOP 10

116OTHER TOP 50

BRANDS

108

Other does not include Newcomer brandsAverage VQ score = 100

PART 4

The India Top 50

// BRAND CONTRIBUTIONBRANDZ™ ANALYSIS

121120


VITALITY QUOTIENT

PART 4

The India Top 50

// OVERVIEW

BRANDZ™ METRIC PRESCRIBESREGIMEN FOR BRAND HEALTH FIVE HEALTH INDICATORS COMPRISE VITALITY QUOTIENT

To rank in the BrandZ™ Top 50

Most Valuable Indian Brands is

a significant accomplishment

that raises these questions: what

distinguishes high-value brands

from other brands; and what actions

do brands need to take to remain in

the India Top 50 or rise to that level?

A new BrandZ™ metric called Vitality Quotient (VQ) supplies some important answers to these questions, along with insights for building and sustaining healthy brands. The VQ score is a composite of these five indicators for monitoring brand health:

Brand Purpose Innovation

Communication Brand Experience Love

Healthy brands begin with a purpose. It does not need to be a grand purpose about changing the world, but it does need to be a clear purpose that leaves consumers believing that, in some way, the brand is improving their lives.

Brands become stronger when consumers see them accomplishing their Brand Purpose through innovation. Consumers see innovative brands as Meaningfully Different from the competition, as leading their categories and setting trends.

To benefit from Brand Purpose and Innovation, brands need to amplify these indicators with effective advertising and other relevant communication. Brand Purpose and Innovation produce good stories, and the stories need to be told.

The VQ score is based on an index where 100 is average. Brands that score 105 or more on each of the five VQ indicators are healthy brands. Conversely, brands that score 99 or below on all five indicators are relatively frail.

VQ scores correlate closely with BrandZ™ Meaningfully Different scores. A Meaningful Different brand is healthier. And healthier brands are Meaningfully Different. Brands viewed by consumers as Meaningful (filling rational and emotional needs in relevant ways) achieve greater market share, and brands perceived as Different (distinctive, even trend-setting) can command a higher price premium.

Communicating a brand’s story well helps persuade consumers to try the brand—as opposed to trying a competitive brand. If the Brand Experience delivers the promised Brand Purpose and Innovation, then people decide that the brand is for them.

The outcome is Love, which adds resilience and helps brands sustain their relationship with consumers over time, as brands cycle through normal periods of innovation and iteration.

Five brand health indicators comprise the VQ score

Five indicators reinforce each other and together build brand health, indicated by a high VQ score. The indicators start with Brand Purpose and end with Love, which is an outcome that helps sustain brands over time.

MEANINGFUL DIFFERENCE

VQ SCORE

. . . C O M B I N E U T I L I T Y W I T H S T Y L E .

I N D I A N S O N T H E M O V E . . .

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VITALITY QUOTIENT

PART 4

The India Top 50

// INDIA TOP 50

INDIA TOP 50 ARE HEALTHIER THAN OTHER INDIAN BRANDSThe India BrandZ™ Top 50 brands

are much healthier overall than

Indian brands generally, based

on an analysis that compares the

VQ scores of the India Top 50 with

almost 1,350 other Indian brands.

The India Top 50 scored 110

overall—the same score achieved by

the Global Top 50.

And half the India Top 50 brands—and half the Global Top 50—scored over 105 on each of the five VQ indicators. In contrast, other Indian brands—not in the India Top 50—achieved only an average VQ score of 100, and only 16 percent of the brands qualified as healthy, and 37 percent are frail.

BRAND IMPLICATIONSThese findings suggest that India’s most valuable brands

compare favorably with some of the world’s highest value

brands. While brand health can always be improved, and

needs constant attention, VQ results indicate that the

India Top 50 brands are in robust heath. The VQ scores tell

a different story about other Indian brands, which need to

improve their health. VQ is both a measurement of brand

health at a moment in time, and a diagnostic tool for

improving it, based on the scores on the five indicators.

Source: BrandZ™ / Kantar Millward Brown Figures may not total 100% because of rounding


Frail

12%

OK

38%

Frail

37%

OK

46%

Healthy

50%

Healthy

16%

110

100

Indian Top 50 2017

All Indian Brands

BrandZ™ research of 1,342 brands in India 2014 to 2016

India Top 50 brands are healthier than other Indian brands…

The BrandZ™ India Top 50 brands are much healthier overall than Indian brands in general, based on an analysis that compares the VQ scores of the India Top 50 brands with other Indian brands.

Frail

12%

OK

38%

Frail

4%

OK

46%

Healthy

50%

Healthy

50%

110

110

Indian Top 50 2017

Global Top 50 2017

… And the India Top 50 and Global Top 50 are comparable in brand health

The BrandZ India Top 50 and the Global Top 50 both achieve a healthy average VQ score of 110 overall.

127126


VITALITY QUOTIENT

PART 4

The India Top 50

// BRAND VALUE

HIGHER VQ BRANDS HAVE HIGHER VALUEAmong the many arguments for

building and sustaining brand health

is this: healthier brands are worth

more—often substantially more.

Among the India Top 50, brands with

low VQ scores average $1.9 billion in

brand value. In contrast, brands with

high VQ scores average $2.4 billion, a

difference of over 25 percent.

The correlation between strong brand health and higher brand value is consistent for four of the five VQ indicators—but not for Brand Purpose. For Brand Purpose, the correlation is reversed. Brands with higher Brand Purpose scores have lower brand value.

This anomaly happens frequently in fast-growing markets where smaller, entrepreneurial brands with a clear purpose appear toward the bottom of the BrandZ™ rankings. These brands are all about Purpose. They exist specifically because they want to introduce new ways to make consumers’ lives better.

BRAND IMPLICATIONSThe VQ indicators begin with Brand Purpose. And the other

four indicators depend on the strength of Brand Purpose.

Sometimes Brand Purpose comes more naturally to newer or

smaller brands. But it is important that more mature brands also

demonstrate Brand Purpose. It can be useful to connect with the

original reason that brought a brand into existence, and interpret

that reason in ways that are relevant to today’s consumers.



… But the most purposeful brands are sometimes smaller in valueHealthier brands are worth more… The correlation between strong brand health and higher brand value is

consistent for four of the five VQ indicators—but not for Brand Purpose.Healthier brands are worth more. Among the India Top 50, brands with low VQ scores average $1.9 billion in brand value. In contrast, brands with high VQ scores average $2.4 billion.

LOW Average Value

$1.9BIL.HIGH

Average Value

$2.4BIL. HIGH Average Value

$2.0BIL.HIGH

Average Value

$2.4BIL.HIGH

Average Value

$2.3BIL.HIGH

Average Value

$2.4BIL.HIGH

Average Value

$2.4BIL.

Brand Purpose Innovation Communication Brand Experience Love

LOW Average Value

$2.3BIL.LOW

Average Value

$2.0BIL.LOW

Average Value

$2.0BIL.LOW

Average Value

$2.0BIL.LOW

Average Value

$2.0BIL.

129


VITALITY QUOTIENT

PART 4

The India Top 50

// BRAND VALUE GROWTH

HIGHER VQBRANDS GROWBRAND VALUEMORE QUICKLYHealthy brands grow value faster.

And any brand can improve in health.

Between 2015 and 2017, brands that

raised their VQ score grew 21 percent

in value, four times greater than

brands that declined in VQ, which

notched up only 5 percent in value.

BRAND IMPLICATIONSThe findings show a direct correlation between

brand health—high scores on the five VQ indicators

—and brand value appreciation. This correlation

is important because high value brands are more

likely to grow market share and command a price

premium. And, unlike the impact of the economy,

competition, or even the weather, brands have

control over their health. They can choose to have

a clear Brand Purpose—or not. Critically, as brands

improve their VQ indicators, they also need to

communicate their progress or risk losing value.


High VQ brands rise faster in brand value…

Brands that raised their VQ score grew 21 percent in value, four times greater than brands that declined in VQ,

Each of the five VQ indicators—Brand Purpose, Innovation, Communications, Brand Experience, and Love— influences brand value growth. For example, Brands with high Innovation grew 63 percent faster that brands with low innovation.

And the importance of Brand Purpose as a foundation for brand health cannot be overstated. Between 2014 and 2017, brands with high Brand Purpose increased in value 41 percent, almost double the growth rate of brands with low Brand Purpose.

128

25%

5%

10%

15%

20%

0%

DECLINED in VQ

+5%

MAINTAINED VQ

+15%

IMPROVED in VQ

+21%

The short-term impact of VQ indicators on brand value growth can be stunning. Between 2016 and 2017, brands with high Brand Purpose grew 16 percent, compared with a value rise of only 1 percent for brands with low Brand Purpose. Similarly, brands with high Innovation increased 18 percent in value, while the value of low Innovation brands remained unchanged. Most revealing, brands with low Communication lost value, while the value of high Communication brands increased 16 percent.

←

% increase in brand value 2015 to 2017

131


VITALITY QUOTIENT

PART 4

The India Top 50

// BRAND VALUE GROWTH



… Strong VQ indicators correlate with long-term value growth…

… and the VQ indicators correlate with short-term value growth

Each of the five VQ indicators—Brand Purpose, Innovation, Communications, Brand Experience, and Love— influences brand value growth. For example, Brands with high Innovation grew 44 percent in brand value, while brands with low Innovation grew only 27 percent.

The short-term impact of VQ indicators on brand value growth can be stunning. Between 2016 and 2017, brands with high Innovation grew 18 percent in value, while brands with low Innovation remained unchanged.

Brand Purpose

Brand Purpose

Innovation

Innovation

Communication

Communication

Brand Experience

Brand Experience

Love

Love

130

50

20

20

10

10

30

40

0

0

-10

LOW

+24%

LOW

+1%

LOW

+3%

LOW

+3%LOW

0%LOW

-1%

LOW

+27%

LOW

+29%

LOW

+32%LOW

+30%

HIGH

+41%

HIGH

+16%

HIGH

+16%HIGH

+14%

HIGH

+17%

HIGH

+18%

HIGH

+41%

HIGH

+43%

HIGH

+44% HIGH

+40%

% Increase in brand value 2014 to 2017

% Increase in brand value 2016 to 2017

133132


VITALITY QUOTIENT

PART 4

The India Top 50

// RESILIENCE

VQ HELPS SUSTAIN BRANDSTHROUGH TURBULENT TIMES

BRAND IMPLICATIONSBrand health is increasingly critical in India as the market becomes more

competitive. Because of the dynamic and disruptive nature of the Indian

market, and the impact of social media, change can happen quickly,

making brand health—a high VQ score—a critical priority.

Maggi rebounds in brand value…

After declining in brand value following a food safety crisis, Maggi bounced back, with brand value rising 66 percent in 2017, a rate exceeded by only one other BrandZ™ India Top 50.

Source: BrandZ™ / Kantar Millward Brown Source: BrandZ™ / Kantar Millward Brown

Brand Purpose Innovation Communication

Brand Experience Love

134

= 135

124 133 138 146

$1.1BIL.

$770MIL.

$587MIL.

$974MIL.

… And Maggi is No 1. in the VQ Top 10

Maggi ranks No. 1 in VO Top 10, with a score of 135, and it leads in all five VQ indicators—Brand Purpose, Innovation, Communication, Brand Experience, and Love.

VQ not only helps drive high brand

value growth, it acts like insurance

to protect value and the investment

made to achieve it. Maggi, the

instant noodle brand owned by

Nestlé, best illustrates the power of

strong brand health and equity.

A couple of years ago, Maggi faced a challenging food safety crisis that disappointed customers who considered Maggi part of their routine eating habits, an iconic heritage brand. Maggi confronted the challenge and reformulated the affected products. But implementation took time.

Brand value dropped 32 percent the first year after the scandal and 24 percent the next year. But strong brand equity and Love, developed over time, sustained the Maggi brand. This year Maggi bounced back, with brand value rising 66 percent, a rate exceeded by only one other India Top 50 brand.

Maggi ranks No. 1 in the VO Top 10, with a score of 135, and it leads in all five VQ indicators—Brand Purpose, Innovation, Communication, Brand Experience, and Love.

2014 2015 2016 2017

-32%

+66%

-24%

135134


VITALITY QUOTIENT

PART 4

The India Top 50

// LOVE

LOVE MULTIPLIESPOSITIVE OUTCOMESLove is not all you need, but it

helps. It is the fifth VQ indicator

and the outcome of the other

four. Love is the affinity that the

customer develops over time

for brands that express a strong

purpose, demonstrate innovation,

communicate effectively, and deliver

a consistently superior experience.

Love has a multiplier effect. Brands that are loved are more likely to capture market share, command a price premium, and grow value. Among brands in the India Top 50, the value of brands with high Love is 43 percent higher than the value of brands that score low on Love.

Love also helps sustain brands, both through crisis and the natural ups and downs of the production cycle, keeping customers interested during periods of iteration as they anticipate the next innovation.

The most loved brands in India cross many categories and include both local Indian brands and brands owned by multinationals. The instant noodle brand Maggi leads the Love ranking, followed by WhatsApp, the online messaging service owned by

BRAND IMPLICATIONSHalf of the Love Top 10 are technology brands, that entered India

relatively recently. Google and Facebook arrived around a decade ago.

The technology brands benefited by high recognition and a core of

young consumers linked across national borders by shared values and

technology acumen. The other half of the Love Top 10 is comprised of

heritage brands, Indian or multinational, with a long history in India: Maggi,

Britannia and Amul in food and dairy; the personal care brand Colgate; and

LIC, in life insurance. This even split in the Love Top 10 reflects the tension

between new and old in the Indian market, and the importance of Love.

For new arrivals, Love can accelerate entry. For heritage brands, Love can

keep the customer close, even as the market changes.

Loved brands achieve higher value…

… And any brand can inspire Love

… Love has a multiplier effect…

Among brands in the India Top 50, the value of brands with high Love is 43 percent higher than the value of brands that score low on Love.

Half of the Love Top 10 are technology brands, which entered India relatively recently. The other half of the Love Top 10 is comprised of heritage brands, Indian or multinational.

Love has a multiplier effect. Brands that are loved are more likely to capture market share, command a price premium, and grow value.

Facebook, which itself ranks No. 10 in Love, and is one of five technology brands in the Love Top 10, which also include Google and Amazon.

When Amazon entered India, less than five years ago, it faced a strong e-commerce competitor in Flipkart. But Amazon chose to integrate into Indian culture and become a brand helping people achieve their dreams. Similarly, Uber faced Ola, a larger, Indian car-hailing service. Competition is fierce, but Uber adapted quickly to India, and about 60 percent of passengers hire Uber.

Source: BrandZ™ / Kantar Millward Brown Source: BrandZ™ / Kantar Millward Brown

% Increase in Brand Value.32 brands common to both the India BrandZ™ 2014 and 2017 rankings, excluding banks.High and Low on Love

Indexes of Brand Power, Premium, and Potential where 100 = average. High and Low on Love

... Have the POWER to capture significantly MORE VOLUME

... Have more price flexibility to command a higher price PREMIUM

... Have much greater POTENTIAL to gain value share in the future

50

20 200

10 100

30 300

40 400

0 0

LOW

+30%

LOW

101LOW

105LOW

85

HIGH

+43%HIGH

395

HIGH

134HIGH

144

+43%

Brands that are loved…

TOP 10 BRANDS IN LOVE Brand Category

1 Maggi Food and Dairy

2 WhatsApp Technology (Networking and sharing)

3 Britannia Food and Dairy

4 Google Technology (Information, news and search)

5 Colgate Personal Care

6 Amul Food and Dairy

7 Amazon Technology (Retail)

8 Uber Technology (Ride-hailing)

9 LIC Banking and Insurance (Life Insurance)

10 Facebook Technology (Networking and sharing)


TECHNOLOGY CHANGES ALL ASPECTS OF THE BUSINESS


137136

CUSTOMERS

Who are your key customers?

Women are super important to us. Almost 80 percent of our consumers are women because of the unique nature of the product. Jewelry caters almost 100 percent to women. Sales of watches and eyewear are about half and half, women and men. It’s not just about working women. It’s about the rising status of women in society and the amount of disposable income they have. We have a jewelry brand aimed only at working women. It’s called Mia. Women have a sense of freedom and empowerment and worth that was not there in the previous generation. We have a watch brand, called Raga, designed specifically for women, in contrast to most women’s watches, which are scaled down versions of men’s watches. That’s like treating your women customer as if she’s a smaller-size man, which she isn’t. We focus instead on the uniqueness of women and why they wear watches. It’s a generalization, but largely true, that men buy watches for status and women buy watches for adornment. Adornment is very primal.

What are some of the key market influences today?

Young people have been a strong influence on the market. The youth market is large, influential, and digitally sophisticated. But it’s a slippery slope. By the time that you figure out the youth market, it’s changed. The youth market is so large and influential that marketers segment it based on mindset.

How does Titan segment the youth market?

We have a trendy youth brand called Fastrack. It is a fun brand about enjoying a unique stage in life. We also have a brand called Sonata that we are repositioning to appeal more to youth. It is about optimism and confidence and may appeal to people of less privilege but great ambition. The Sonata youth have fire in the belly.

What about the silver or senior market?

Someone who became our customer 30 years ago, when the Titan brand began, is about 50 years old now. Titan

WITH RISING WEALTH, INDIANS BUY WATCHES FOR SPECIAL MOMENTS AS WELL AS OCCASIONS

We have a wide reach. We do see a rise in rural sales. But what’s actually happening is that the affluent areas are getting more affluent. And consumption is trickling down.

would have played a role in important moments of their life—a wedding, anniversaries, graduations. We find that these customers are more loyal and emotionally connected to the brand. And now they have a lot more disposable income. We are exploring how we can best reach out to these customers and connect.

How is your business split between urban and rural?

Around 50 percent of our business comes from the top 10 cities. We have a wide reach. We do see a rise in rural sales. But what’s actually happening is that the affluent areas are getting more affluent. And consumption is trickling down.

C-SUITE INTERVIEWS

SUPARNA MITRAChief Marketing Officer, Titan Company Ltd.

PART 4

The India Top 50

←


139138

TRENDS

What major new trends are you seeing?

Over the past few years we have seen the emergence of the importance of moments rather than occasions. This phenomenon is happening across many categories. Occasions had been a big driver for us. We sell a lot of watches during wedding season because they make good gifts. And the festive seasons, like Diwali and a festival that celebrates the brother-sister bond, are important for sales. We see a huge spike on Valentine’s Day. These occasions remain, but moments are being added. People are buying watches for self-indulgence, for rewards, or just for an evening out—for reasons to celebrate and gift someone or yourself. There is also an aspect of retail therapy. Buying something because you feel good or because you want to feel better. The sales spikes remain, but a lot of mini spikes have been created.

Who are these customers?

They are not the superrich. These are people with good jobs, maybe in IT, for example. They are not making a huge amount of money, and they are not spending a lot of money on a per-item basis. This is not luxury shopping.

BRAND BUILDING

How has technology impacted the business?

We’ve seen a tectonic shift in the business model. Our business rests on three main pillars: products, marketing and communication, and retailing. Technology and digitization has impacted all three pillars in irreversible ways. In products, we’ve already introduced quite a few smart watches. Smart watches provide an opportunity to engage with consumers because of the data. The purchase of the watch by the consumer is just the start of the relationship. We see how customers use the watches and that helps us make future iterations of the product more relevant. .

How has technology changed marketing and retailing?

Social media is huge. In marketing that means a lot of community building and content creation on YouTube, Facebook, Instagram, or our own channels. Digitization has added complication. In the past, a new product introduction would have required print ads and TV commercials. Now, it’s more complicated. For example, we just launched a watch called Squadron, which is inspired by fighter jets. I’m creating content for communities that seem to be really interested in fighter jets. Instead of spraying everyone with a TV commercial, I can do much

What other trends reflect how India is transforming?

There is rise in the importance of appearance—how you look, how you accessorize. This is a huge change from just five years ago. This tend crosses age groups, genders, urban-rural—every demographic. Everyone is spending a lot of time, effort, and money to look good. Economics in part drive the trend. Once people are confident that they know where their

There is rise in the importance of appearance—how you look, how you accessorize. This is a huge change from just five years ago. This tend crosses age groups, genders, urban-rural—every demographic. Everyone is spending a lot of time, effort, and money to look good.

The sales spikes remain, but a lot of mini spikes have been created.

next paycheck is coming from, and they’re reasonably comfortable, they realize that appearances matter. Part of the trend relates to life stages—when people leave home or college and join the workforce, for example. You need the right clothes, the right shoes, handbag, and watch, and the right hair, and the right perfume. All these categories are booming in India. Part of the reason is that the base is so low. Some people buying perfumes are buying them for the first time.

sharper targeting as well as get into conversation. In retailing, a lot of it is about influence. We have 700 bricks and mortar stores under our brands, and are in the process of enabling them for omni-channel. And we are present in about 7,000 multi-brand outlets. Our e-commerce sales are already experiencing triple-digit growth.

How does the dynamic between physical and online stores work in this category?

Young shoppers don’t need to put the watch on their wrist. They are comfortable buying online. In our research, we found that a large proportion of customers are quite comfortable buying online. And people are seamlessly going from one channel to the other. There is no typical journey for researching, shopping, and purchasing. That’s fine, so long as the customers are moving down the decision path. This comfort and familiarity online crosses demographics, but it’s higher for men than women, younger than older, metro consumers compared with consumers in smaller areas.

Is international competition a factor?

There is a lot of international competition. And it’s a constant battle to get the right product, design and price. It also requires having an emotional appeal and the right presentation in the retail stores and

online. And there are a lot of consumers for whom an international brand works like magic. Because we are here and we see things earlier, that’s an advantage. This is the case with our brand Raga, for example, which we designed exclusively for women, and to match the sensibilities of Indian women. It would be almost impossible for an international player to pull off a brand like Raga.

Titan is a leading marketer of mass-market consumer lifestyle accessories, including watches, jewelry, eyewear, and fragrances. Suparna Mitra has served as the CMO of the Titan

watches division for the past two years, and is responsible for product design and technology, product management, and marketing strategy for watches and accessories. Trained as an

electrical engineer, she also has an MBA from the Indian Institute of Management (IIM).

PART 4

The India Top 50

C-SUITE INTERVIEWS

. . .T H E P A S T, T H E P R E S E N T, T H E P R O M I S E .

E V E R Y M O M E N T R E F L E C T S M U LT I P L E I N D I A S . . .

NEW STRATEGY AIMS TO TAP LARGE OPPORTUNITY


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CATEGORY AND CUSTOMERS

How do you define your product category?

We represent a category called financial services. But the fact is, we represent a category called money. Financial services is our calling card, but the consumer doesn’t understand it. Money is the way the consumer engages with this category. Money makes the world go around. Every citizen of the globe needs money for even the basics of life—food, clothing, and shelter. The minute you see it from that perspective, you realize that money can never go out of fashion. There are periods of gloom and doom, like the financial crisis of 2008 and 2009, but these are air pockets. You’re in the plane that goes through an air pocket and you think this is the end of life. And then the turbulence is over.

Staying with the metaphor, India seems to be nearing cruising altitude. But people are seated in different classes. How do you segment the market?

The other day I was flying to Dubai, and the upper deck was all business class. And it was filled with people who I would not have imagined would be on such a flight five years back. Travel agencies organize overseas tours of people from cities that even I have not heard of. The people stand out in their clothes, language, and mannerisms. But they have the money to go. They will go in a group with a cook who makes

Indian food for them. They remain with their roots, but they have the money to go out and see the world. Purchasing power is far ahead of what I would have dreamt only a few years ago. People do not worry about inflation or job security, which was a concern during the financial crisis. There is also a sense of optimism that comes from the stock market being at an all-time high.

What does this optimism and rising purchasing power mean for you as a brand marketer?

We focus on the mass affluent and above. And we have 12 lines of business. Each of them is big in its own segment. We have life insurance and asset management companies in the top five. We have a private equity business and a corporate lending business. We have general insurance, wealth management, housing finance, pension funds, health insurance, and we’re soon going into low-cost housing. And we have other businesses. It’s a wide spectrum of consumer and business-to-business operations.

BRAND SIMPLIFIES, ADDS CONVENIENCE TO UNDERPENETRATEDPRODUCT CATEGORY We will ask, “Are you living the

life you imagined, or have you stopped imagining?”

THE BUSINESS

What areas are most dynamic now? What areas are you enthusiastic about?

Next month we are announcing the reorganization of these businesses into three broad categories: protecting needs of our customers, investing needs of our customers, and the financing needs of our customers. I’m saying that from the customer’s perspective, you have only three needs for money. If you have it, you want to know what to do. If you don’t have it, you want to know what to do. And if you’ve created assets, you want to protect them. We have protecting, investing, and financing solutions. It means that the first thing you want to do in life is protect yourself because there are people financially dependent on you. So, I’m very bullish on life insurance. Life insurance in India has minimal penetration compared with elsewhere in the world.

AJAY KAKARChief Marketing OfficerAditya Birla Capital Ltd.

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The life insurance market is supposed to double in six years. Today, only 12 out of 100 Indians who die have life insurance. And of the 88 people who are not covered, only 10 leave their families well off. I’m bullish about health insurance because only 3-or-4 percent of Indians are covered under health insurance.

What other investment products are you enthusiastic about?

I’m buoyant about the mutual fund industry. India has approximately 6 percent penetration. The industry is expected to grow two-and-a-half times in six years. You either need money, have money, or require protection. Indians currently keep their money in a bank. About 39 percent of Indian savings are in a bank earning an average of 5 percent. Only a small percentage is in capital markets, which can potentially earn a 13 percent return. They must move to the capital markets if they want to beat inflation and live the life of their dreams. Similarly, for the more affluent, wealth management is important.

How important is the financing business?

In India, 4 percent of people have home loans. China is 9 percent. Russia is 18 percent. Brazil is 11 percent. This market is expected to triple in six years. We will expand loans to small- and medium-size enterprises, or SMEs. Only 25 percent of SMEs have access to credit. That business is expected to double in six years.

importance of money in their lives. Most people don’t realize that their hard-earned money is not working hard for them. People don’t come to our category because they believe there’s something in it for us. They don’t realize there’s something in it for them. Also, they have a false sense of security that, if they’re earning well today, tomorrow will take care of itself.the data. The purchase of the watch by the consumer is just the start of the relationship. We see how customers use the watches and that helps us make future iterations of the product more relevant.

How will you communicate?

We’re proposing to launch a brand called Aditya Birla Capital, in September. That will take this simplify-money idea to the consumer. Here is the magnitude. We currently have 12 lines of businesses. Each has its own logo. We will sunset all those identities. And we will go to market only as one brand. Many groups in India have lines of financial services business, but they have all nurtured individual identities. The consumer sees big groups, and they come to him through many different entities. And the consumer is confused. We have chosen to simplify the brand and use the name Aditya Birla, which is the most revered business house in India. It’s a household name known for business and creating wealth. It’s a master brand strategy, while others in India have a house of brands. With the other brands, if you are wealthy enough to have a relationship manager assigned to you, he will take care of all your banking needs. But if you ask him to take care of any credit needs or lending needs,

And do you expect this growth to come from across India, or will it be concentrated in the major metros?

The entire financial services industry is heavily underpenetrated. And I don’t mean the rural areas, that you might expect to be underpenetrated. I mean even in the large metros. And people who have some financial involvement often don’t have enough. For example, the conventional wisdom is that you should have life insurance coverage of at least 10 times your annual earnings. Most current life insurance policy holders don’t even have one-time their earnings. It’s a huge opportunity. It’s an all-India opportunity.

Our intention is to grow the market. Our brand purpose is to simplify money. Our mission is to provoke Indians to realize the importance of money in their lives. Most people don’t realize that their hard-earned money is not working hard for them.

BRAND BUILDING

You’ve identified a major opportunity to simplify the category for people. How will you implement this vision?

There’s so much opportunity, financial businesses don’t need to go into niche markets. They don’t need to do drip irrigation. Just put your hand out and you’ll capture water. Therefore, most brands in this category are happy with share of market. Our intention is to grow the market. Our brand purpose is to simplify money. Our mission is to provoke Indians to realize the

he will say, “I’m sorry, I can’t answer you.” The consumer will say, “But it’s the same company.” And the manager will reply, “Yes, but it’s a different division.” We will give customers one ID that is recognized across all our businesses.

Will a customer coming to you for life insurance be assigned a representative knowledgeable across the entire master brand portfolio?

India is large. We have an agent force of over 150,000. It is difficult to empower every human being to become a superman, a multiproduct hero. We are going to issue every customer an ID that will recognize the customer across our businesses. We will have one call center where the customer can ask about anything and everything. We will have one website where the customer can seek advice and transact. On the backend, we will have one technology. And we have created a category called “Select” for high-wealth customers, and high-performing advisors have been empowered to sell any product to that group.

What media will you use to communicate the new master brand?

We will go to conventional media and beyond. We’ll have to use TV, print, out of-home, radio, digital, and social. We’ll have to speak to our employees, distributors, customers, and shareholders. But we will not sell. We will not preach. We want to empower the consumer to self-realize. We will ask provocative questions.

Aditya Birla Capital is one of India’s largest financial services groups, serving over 400 cities with around 1,300 points of service and 150,000 agents. Its operates across 12

business lines, including life insurance, asset management, health insurance, home loans, and private equity. CMO Ajay Kakar is leading the transition to a master brand strategy.

We will not take any sides. We want to create conversations. We will ask questions like, “You have big dreams. Have you done anything about them?” Most financial services brands start from the category. “I have mutual fund products. Do want a mutual fund product? I can make all your dreams come true.” We’re saying, we will not start with our categories, we will start with your life. We will ask, “Are you living the life that you truly desire or deserve?” We will ask, “Are you living the life you imagined, or have you stopped imagining?” We want to leave consumers with the thought, if you’re doing something about it, great. If not, do start, because only you can take care of your loved ones. A traditional brand would say, “I love you guys. I love your family as much as you love them.” We don’t want to say any of that.

What are some of the obstacles you face in realizing this large opportunity?

This category, money, has universal appeal but very low penetration, for one reason. Most Indians have not realized the relevance of our category. The average Indian thinks we’re profiteering from him. He doesn’t see that it is in his interest. On the other hand, our category has healthy growth rates. Opportunity is raining down. Just put your hand out. But we did not want to be a me-too brand. The category is stuck in its language and complexity. So, we pulled back and asked, rather than being competition obsessed, can we become customer obsessed?

PART 4

The India Top 50

C-SUITE INTERVIEWS

SPENDING ON DIGITAL MEDIA INCREASES


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CHALLENGES

What key challenges do India consumers present for the brand?

Consumer habits are changing in this very dynamic country and category. Our first challenge is understanding the changes that are happening in the consumption of voice, data, services, and content. It’s about what people are using our services for. We tailor the right basket of product and services for the consumer, so that we offer a competitive overall customer experience. The second challenge is keeping the brand equity, engagement, and brand love growing. The consumer today has many choices in terms of brands and how she consumes media. How do I keep the conversations going? How do I keep our brand messaging top-of-mind? The third challenge is that a lot of consumer behavior is happening in the online world, and how do we move with the consumer in this world that has gone digital? How do I make sure that the entire customer experience—the gateways and user journeys—are all aligned with our customers’ behavior and expectations.

How is the Indian consumer changing and how do you view or segment the consumer market?

We have gone beyond the urban-rural divide because, although differences remain, those two worlds are colliding, as technology democratizes access. In terms of understanding consumers, we are applying some basic marketing principles of customer segmentation. For the last several quarters we have

looked at customer experience in a different way, so we can delight customers in a relevant manner. We’re looking at India and saying, there is an India that is young and vibrant. We have 200 million-plus young people, around the population of Brazil, and their aspirations and requirements from Vodafone are very different from other customer segments. Similarly, the rural farmer is an important segment because farmers have the need for mobile phone service, but also the need for information. Another segment that we focus on is the high-value customer. Again, the needs are very different, including the need to roam internationally.

CUSTOMERS

How are you presenting the brand to young people?

We try to respond with a solution for what our customers value the most. With young people, who would like to experiment more and discover the world through their mobile phones, data becomes very important. We try

BRAND TAILORS MIX TO MATCH INDIAN CONSUMERS’ RAPIDLY CHANGING HABITS

We have gone beyond the urban-rural divide because, although differences remain, those two worlds are colliding, as technology democratizes access.

and understand their daily habits and attitudes, their 24-hour clocks. For example, when we provide a Youth Data Pack with extra data allowances, we recognize that he or she might be awake at three in the morning. So, could that person get some extra data if he or she is a 23-year-old, first-jobber who’s just returned from an office party and has two hours to kill watching Game of Thrones in the middle of the night? Hence, Insomnia Quotas. By understanding needs and aspirations, and what is of value to the consumer in that segment, we can offer relevant customer experiences. Also for youth, we combine the telecom offering with offerings under Vodafone U, which provides invitations to concerts, movie tickets, access to meet a popular film celebrity, or other desirable experiences.

PART 4

The India Top 50

SIDDHARTH BANERJEEExecutive Vice President, MarketingVodafone India

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How do you apply your marketing approach to rural people?

We have a powerful offering for the Indian farmers called Kissan Mitr (A Friend of the Farmer). It’s a value-added service for a nominal monthly cost. With this service, we can provide real-time information about weather patterns, crop information, and other details that enable farmers to increase the yield that they get from their farms. That increases the farmer’s income and reduces earning volatility. Here we have gone beyond just providing this consumer segment with connectivity through mobile phone services. This is another segment of consumers where we give something of relevant value to them.

And who are your high-value customers and how do you serve them?

We are privileged to serve a large base of high-value customers across both large metros and the Tier 2 cities. They range from corporate professionals to entrepreneurs located across these cities who trust and use Vodafone. For them, it is very important that they have relevant plans and access to Vodafone when they need it. Hence, we ensure that our high-value customers get great service, either through our customer retail touchpoints or via our My Vodafone app. We also offer them tailor-made plans, including our Red plan, which we believe is one of the best post-paid plans in India.

Do the high-value customers represent a change in the distribution of wealth?

If you look at the shape of income distribution in most developing economies, it typically looks like a pyramid. In India, that pyramid is changing into a diamond. The base is contracting and the middle is becoming wider. And the tip of the pyramid widens with many more people with high disposable income. The per capita disposable income is going up. Also, as consumers become more aware of the world through technology, their needs and aspirations change. The urban youth, for example, begin to mirror their global counterparts.

BRAND BUILDING

How do you respond to the fierce competition in the telecom provider category?

Telecom competition has always been fierce in India. Now, there is a new player in the market that has unleashed pricing moves, which have driven down the price of data. At the same time, there is a host of handset manufacturers in India who now offer devices across multiple price points. Consequently, you can see faster adoption of smartphones and, because of the low data costs, people are experimenting with the internet, looking for uses beyond entertainment. We have built a powerful position

If you look at the shape of income distribution in most developing economies, it typically looks like a pyramid. In India, that pyramid is changing into a diamond. The base is contracting and the middle is becoming wider. And the tip of the pyramid widens with many more people with high disposable income.

in the market by keeping our focus relentlessly on the consumer. Consumers associate us with superior service, a high-quality network, and iconic communications campaigns that endear them to us. We do human storytelling. That’s how we have built our brand. And in a heated competitive environment, we will continue to ruthlessly focus on our customers’ needs.

How do you see the brand changing strategically, as telecom brands globally try to become more than conduits of voice and data?

People will see telecom providers bringing in relevant technology for consumers, and moving beyond basic mobility into convergence products. That’s about total mobility solution products, whether it’s a landline or television. In the Internet of Things (IoT), Vodafone globally has built up huge expertise. On the business-to-business side, Vodafone already has a deep understanding of machine-to-machine. We already offer some of these capabilities in the dynamic market that is India, especially on the B2B side with our Vodafone Ready Business services.

Are you looking beyond India to nearby markets?

Currently there is huge scope and hyper-competition in India, so we need to maximize what we have in India. But the global footprint of Vodafone is certainly a big advantage. We have the

Vodafone India serves around 211 million customers with mobile telecommunication services. Siddharth Banerjee, Executive Vice President – Marketing, heads brand,

insights, media, and digital. He brings extensive business and brand building leadership experience in telecommunications and fast moving consumer goods (FMCG), including 15 years of packaged goods experience, largely with Unilever, across several countries.

possibilities of impacting people across the world, and you will see more and more of that.

As the India market changes, has your media investment changed?

As the world becomes more digital, and the world becomes multi-screen, it is not only about TV. We have 211 million subscribers, and counting. Reach is of prime importance to us. So,

there is a role for television, because television enables us to gain the reach at a certain cost. Given the fact that there are consumer segments that are multi-screening and using their mobile phones, our spending on digital over the past two years has increased in percentage and absolute terms. The touchpoints depend on the consumer segment. However, if I look at the high-value customer, I also use cinemas. If I look at youth, we look at platforms like YouTube and Instagram,

and we communicate our messaging in partnership with them. If we look at rural, we have a distinct media mix, with free-to-air radio. Overall, our media priorities are TV, digital, and outdoor, and then specialized media vehicles.

How have recent disruptions, like demonetization, impacted the category and the Vodafone brand?

We are well placed to take these challenges as they come—whether competition or regulation. Personally, I strongly feel that the telecom category is not for the fainthearted and that’s the excitement. In terms of business opportunities, the glass is always half full so there’s huge headroom for growth. In terms of the direct impact of digitization and m-commerce, Vodafone India has a successful money transfer business called M-Pesa, which began in Africa. We’re increasing the availability of that product and have seen a good amount of consumer uptake.

PART 4

The India Top 50

C-SUITE INTERVIEWS

RoZie is here to answer all your

questions about brands, brand value,

client leaders and brand growth.

You can ask RoZie questions about

the most valuable global brands

from the BrandZ™ Top 100 2017

report and RoZie will be able to

answer them for you, in an instant, by

using Artificial Intelligence.

Unlike most chatbots which are

either text-based or voice-based,

RoZie can do both.

To find out more about RoZie, please

visit rozie.wppbrandz.com where

you will be able to access:

• The recently launched RoZie

text-based chatbot

• Full list of FAQs, hints & tips and

other resources

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download instructions

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latest updates

Hi,

I’m RoZie, the BrandZ™ Chatbot.

Ask me about brands. I can

answer your questions—quickly.

RoZie is constantly learning. Check rozie.wppbrandz.com regularly, and RoZie will help you keep your own brand knowledge up-to-date.

The TEXT-BASED ROZIE can be accessed via rozie.wppbrandz.com where you will be able to type a question to get a response.

What is Amazon’s performance this year?

Amazon is positioned at number 4 with a value of $139,286 million

The VOICE-BASED ROZIE can be accessed

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able to ask a question to get your answer.

The WPP global client leader for

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RoZie, who is the WPP global client

leader for Unilever?

PART 4

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OUR INSIGHTS

Imagine this scenario: You want to buy a shirt and you don’t have time to visit a physical store. You visit the online store of a brand you like, and a chat starts by welcoming you! The site asks what you are looking

for, and you tell it that you’re looking for shirts. Then it asks for what purpose you want to buy the shirt

and asks you to indicate the occasion: formal/official purpose, casual, party, other.

Let’s say you choose the first option, formal formal/official

purpose. Immediately in the chat box you are asked, “What’s your

favorite color?” You respond, and all formal shirts with different shades of the desired color are displayed. You

are asked to specify other design preferences, such as solid or striped. Even if you have

made a small spelling mistake, the site understands what you meant and shows you the relevant shirts.

Great customer service; but you have not been chatting with a human being. The service has been

provided by a robot, empowered with artificial intelligence, a chatbot. Chatbots have rapidly become

one of the greatest tools for brand marketers. Powered with natural language processing (NLP), a

chatbot can interpret your intentions and, through more and more transactions, refine its understanding.

Chatbots are appearing across categories, sometimes with human names, like Apple’s Siri, or Natasha

from India’s Hike messenger service. Even financial services brands are using Chatbots, including India’s leading bank, with HDFC OnChat. We’re in the midst

of a once-in-a-decade paradigm shift.

Messaging is the new platform, and chatbots are the new apps. The shift is radically changing end-user

experiences and inevitably will change business models and how brands interact with customers. It is still early days in the chatbot ecosystem, but

brands are already aboard the chatbot bandwagon to improve their marketing efforts.

Ambarish Chatterjee Associate Research ManagerKantar Millward [email protected]

CHATBOTSCHATBOTS SERVE CUSTOMERS WITH A HUMAN TOUCH

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With today’s plethora of advertisements, capturing the attention of consumers is a tough task. To engage consumers, despite their short attention span, brands need to emotionally integrate their product or service

with consumer’s life story and roots.

Paper Boat is a good example of a brand

selling a utilitarian product that make

an emotional impression. Its products—soft

drinks—are essentially for quenching thirst. But they also evoke the India of a simpler time. The brand

creates flavors that remind people of childhood—their own or their parent’s or grandparent’s.

On each bottle the brand promises, “Drinks and Memories.” Paper Boat makes flavors that were lost somewhere in the past because all of us lead busy

lives and lack the time to make the drinks ourselves. The brand says it helps people “taste memories.”

Pratibha Pande Associate Research ManagerKantar Millward [email protected]

NOSTALGIAPEOPLE REMEMBER BRANDS

THAT CONNECT EMOTIONALLY

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OUR INSIGHTSMore than 65 percent of the Indian population is below 35 years of age. Many young people have benefited from the growth of India’s economy, and are bolder and more adventurous with their brand choices. They have influenced the emergence of new brands that are deeply rooted in Indian ethos and, at the same time, appeal to the modern consumer’s tastes and preferences.

Brands like Paper Boat (soft drinks), Forrest Essentials (cosmetics), or Chumbak (e-commerce) are regarded as premium. They carve a niche for themselves in their respective categories. The e-commerce surge has also seen many Indian portals emerge, including Nykaa (cosmetics and beauty), and Limeroad (fashion).

Gone are the days when Indian brands were regarded as substitutes for international ones. The preference for international brands existed because consumers perceived that they offered greater value and quality. These new Indian brands have understood the appeal of international brands and are creating value and quality. Perhaps Desi at heart, they have international service standards and are here to stay.

Gayatri Hamand Associate Research Manager, Quantitative


INDIAN BRANDS

NEW BRANDS ROOT MODERN APPEAL IN

ANCIENT TRADITIONS

It’s a simple product, just a hard-boiled

candy, a kind of sweet and colorful

sucking lozenge. The success of Pulse candy, now a popular name among kids and adults alike in India, illustrates how the right

insight, coupled with innovation, can disrupt even the most mundane market. Pulse was launched just two year back. Its entry disrupted India’s $1.3 billion candy market,

which is cluttered with many players and variants.

Pulse has been able to become the most prominent player in hard-boiled candy segment due to an insight

into a strong local preference for the tangy taste of green (unripe) mangoes with salt. Innovating, the brand embedded the slow oozing tangy portion in the center of the hard mango-flavored shell. The product was an

instant hit, receiving marketing and distribution support from parent company DS Group.

Amitesh Chauhan Account ManagerKantar Millward [email protected]

DISRUPTIONINSIGHT WITH INNOVATION CAN DISRUPT CATEGORIESWe are living in a world of paradoxes. While

consumerism is on the rise, there is an increasing need to give back. This paradox provides an opportunity for creating meaningfully different brand stories. Every action shapes a brand—for good or for ill— as the brand’s actions generate feelings, associations, and ideas in the consumer’s mind.

Social action helps differentiate brands and becomes a rationale for choosing one brand over the other. Today, people want to choose things that help them stand out from the crowd, and brands with a progressive social agenda help accomplish that goal. All things being equal, a reputation for social action can help influence purchasing.

What would you choose, a detergent that only washes stains, or a detergent that advocates for gender equality as it communicates its ability to wash stains? Similarly, would you choose a tea that is a strong brew or a strong-brew tea that advocates for social equality and fairness? The choice is simple. Brands that build stories about social responsibility build resonance, connection, and salience—and justify a premium.

Aakriti Goel Planning Director

Ogilvy & [email protected]

SOCIAL ACTIONSOCIAL ACTION

INITIATIVES HELP DIFFERENTIATE

BRANDS

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OUR INSIGHTS

Convenience has been an important purchasing driver. But the purchase drivers are changing, especially for young people who seek brands that reward them with a sense of accomplishment, and a platform to showcase their worth.

Lately, we are seeing the increasing importance of drivers like “makes me feel empowered,” “helps me fulfil my dreams,” and “is a guide to me.” These appear in several categories, including FMCG, where young mothers increasingly want to be part of the meal preparation process instead of using a packaged food.

Similarly, in transportation self-drive options are progressively more prevalent. And in hospitality brands like Airbnb are becoming popular as they provide an alternative to a traditional hotel stay. For brands to attract young people, it is imperative that they recognize these changing purchase drivers and become partners in helping these consumers fulfill their goals.

Mahima Aggarwal Account Director


YOUNG PEOPLE

CHANGING ATTITUDES DRIVEYOUNG PEOPLE’S

PURCHASING

BRAND INDIA

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SPOTLIGHT ON INDIA

BEST COUNTRIES

IT IS POSSIBLE NOT ONLY TO MEASURE THE VALUE OF INDIAN BRANDS, BUT ALSO TO ASSESS THE STRENGTH OF BRAND INDIA ITSELF. The Best Countries ranking does exactly that, comparing perceptions of countries around the world held by a broad spectrum of consumers. There is a close relationship between how people feel about a country, and their attitudes towards the brands they associate with that country. Strong countries fuel strong brands, and vice versa.

Developed by WPP’s Y&R BAV Group with partners US News and the

Wharton Business School, the annual Best Countries ranking was launched at the World Economic Forum’s meeting in Davos, the world’s largest gathering of global leaders and heads of industry and influence.

. . . I N M O D E R N W E S T E R N P A C K A G I N G .

A N C I E N T I N D I A N I D E A S A R E A P P E A R I N G . . .

OVERVIEW


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HERITAGE, CULTURE RANK HIGHERTHAN SOME BUSINESS ATTRIBUTES

PERCEPTION0F INDIA LAUDSTHE PROGRESSAND POTENTIAL

Seventy years since its establishment

as an independent state free of British

rule, and over two decades after the

first economic liberalization policies,

India is purposefully asserting itself

as a global geopolitical leader.

Government reforms intended to streamline the bureaucracy, create a more business-friendly environment, and stimulate consumer spending are having an effect. The IMF predicts that India’s GDP will grow 7.2 percent this year, somewhat off the recent pace, but still faster than all other major economies.

Stubborn challenges modulate advancement however, as India tries to untie some troublesome knots in the unbroken thread of a long,

illustrious history: endemic poverty, class division, excessive bureaucracy, official corruption, and inadequate infrastructure.

The pace of change also depends on how the outside world views India. New research by Y&R’s BAV Group, a WPP company, provides a definitive assessment in the Best Countries 2017 study, completed by BAV in collaboration with US News and Wharton Business School.

The study is based on interviews with 21,400 elites, business decision makers, and citizens from 36 markets rating 80 countries across 65 brand attributes. The attributes are then grouped into these nine thematic subrankings or dimensions: Adventure, Citizenship,

Cultural Influence, Entrepreneurship, Heritage, Movers, Open for Business, Power, and Quality of Life.

People outside of India recognize the country’s historical and cultural achievements and see India as dynamic and influential. India ranks No. 25 overall. It ranks in the Top 10 in two of the nine dimensions. In Movers, a dimension that measures distinctiveness and dynamism, India ranks No. 3. India Ranks No. 6 in Heritage, a recognition of its rich history and culture. The country ranks 16 in Power, which measures global influence.

Business decision makers outside of India rank India slightly higher overall, at No. 24. And they rank India

No. 2 in the Movers dimension of up-and-coming economies, above China and Japan. They see the greatest potential for improvement in business dimensions, ranking India No. 27 in Open for Business and No. 28 in Entrepreneurship, reflecting a perception that India needs to continue its important initiatives, improving infrastructure, for example.

At the same time, business decision makers rank India high on many of the 65 brand attributes, such as Entrepreneurial and Innovative, which could help strengthen the perception of Brand India as a symbol of global geopolitical and economic leadership.

PART 5


Business decision makers rank India No. 2

in the Movers dimension of up-and-coming economies, above

China and Japan.

New India

The Entrepreneurial and Innovative attributes correspond to the vision of a New India, advanced by Prime Minister Narendra Modi. Since his election three years ago, Modi has launched a series of initiatives, including:

Make in India to increase overseas investment in India and encourage companies to produce in the country;

Digital India to narrow the urban-rural divide and increase access to government services, health care, and other vital services, as well as to products and brands;

Demonetization to raise tax revenue, reduce corruption, and curtail the black-market economy by weaning the country from dependence on cash and moving to electronic payments; and

GST to increase tax revenues and improve the ease of doing business by replacing myriad state and local levies with a simplified national goods and services tax.

Coming from Gujarat, a state on India’s western coast long known as a center of industry and international trade, Modi seemed well suited for the monumental task of transforming and rebranding India.

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OVERVIEW


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In many ways, everyday life is catching up to his vision. Material well-being is improving, the urban-rural gap is narrowing, and local brands are flourishing. But the promise of change has also generated impatience. And the rise of nationalism adds new frictions.

The external perception of India’s progress may somewhat lag this reality. But changing the outsider perception requires fixing some fundamentals. Business decision makers rank India No. 33 in Transparent Business Practices, No. 29 in Trustworthy, No. 50 in Well-Developed Infrastructure, and No. 63 in Not Bureaucratic.

Innovative and entrepreneurial

In addition, the relatively positive perception that business decision makers have of India in the Innovative and Entrepreneurial attributes leaves room for narrowing the gap between that India’s rank in Innovative, No. 21, and its rank in Entrepreneurial, No. 12.

Although rank No. 21 in Innovative isstrong, it places the country just belowRussia, in the view of business decision makers, when India aspires to be in thesame set as the Top 5 countries inInnovative—Japan, China, the US,South Korea, and Singapore. India’s No. 12 rank in Entrepreneurial places the country closer to the Top 5: Japan, Singapore, China, the US, and South Korea.

The higher rank in Entrepreneurial reflects India’s reputation as a as a nation of small-business owners, and the visibility of Indian business people worldwide, with around 16 million Indians living in a diaspora, according to the UN.

The lower Innovative ranking may result in part from the lingering impression of India as a nation with a workforce

India ranks No. 25 overall, below Portugal and above Thailand, in the Best Countries 2017 ranking. It ranks higher than No. 25 in three of the nine categories: Movers, No. 3; Heritage, No. 5; and Power, No. 16.

of technicians. This notion of India as a service provider is a legacy of its colonial past. The character of India’s startups also helps explain the difference between India’s ranks in Innovative and Entrepreneurial.

India’s startups are to Silicon Valley what Bollywood is to Hollywood. Indian startups create superb products that meet the needs and tastes of the local Indian market, but often products resemble existing products and lack global impact.

Flipkart resembles Amazon, for example, and these other brands are similarly related: Uber and Ola; Expedia and goibibo; and Alipay and Paytm. These comparisons do not minimize the accomplishments of Indian startups, but they add context.

The Indian startups are not Google, Apple, Facebook, Amazon, or Microsoft—which is understandable—and neither have they reached the scale of Baidu, Alibaba, or Tencent, Chinese brands that imitated technology leaders and now are ranked in the BrandZ™ Top 100 Most Valuable Global Brands. Innovative Chinese brands also dominate the BrandZ™ Chinese Global Brand Builders 2017 ranking.

India’s technology brands may have greater global growth potential than the Chinese brands, however, because they are not restricted by an internet firewall. And this possibility suggests India’s potential to raise its Innovative ranking.

Future of growth

India’s lower Innovative ranking does not result from a lack of talent, as evidenced by the Indian presence in Silicon Valley, which includes Indian-born Americans like Microsoft CEO Satya Nadella and Google CEO Sundar Pichai. But these individuals also point to another reason why the Innovative ranking is relatively

low—until recently, ambitious individuals often went abroad to pursue their careers.

The Innovative ranking of India should improve as local opportunity continues to expand and the brain drain eases. India could experience a renaissance that recalls the history of Indian innovation that Modi references: the India credited with inventing a numbering system; Ayurvedic medicine; and Sanskrit, the basis for Indo-European languages.

India is well positioned to break into theTop 10 in several important, business-related attributes. Along with its No. 12rank in Entrepreneurial, India ranks No.13 in these in these two attributes: BeingPolitically Influential and Dynamic, according to business decision makers. They also rank India No. 14 in Technological Expertise, and No. 15 in being A Leader.

India does not control all the factors influencing change or the perception of change—geopolitics is always a wildcard. But in India, the government and Indian citizens can largely shape their future. And as more Indians experience change—increased wealth, greater access to jobs, better roads, cleaner air, shorter queues—the rate of change should increase.

Sustaining change depends on reinforcing the pillars of India’s grand and diverse democracy of 1.3 billion people and 22 official languages. India ranks No. 52 overall in Citizenship. Business decision makers rank India No. 50 in Citizenship. The Citizenship category includes attributes such as Gender Equality and Cares about Human Rights—attributes that are fundamental to India’s democracy, and to the social stability necessary for business growth and the elevation of Brand India.

PART 5


←

India ranks No. 25 overall…

#25OVERALL OUT OF

80 COUNTRIES

SUBCATEGORY RANK

The bars in this chart represent India’s score in each dimension. A score for eight of the dimensions is computed after weighing each dimension according to how closely it correlates with domestic product purchasing power parity per capita. Movers is a separate momentum metric. The total score for the nine dimensions determines the country’s overall rank.

Source: BAV Best Countries 2017 / View of business decision makers, elites, and citizens

#16POWER

0 10#30QUALITY OF LIFE

0 10

#27OPEN FOR BUSINESS

0 10

#3MOVERS

0 10

#5HERITAGE

0 10

#28ENTREPRENEURSHIP

0 10

#26CULTURAL INFLUENCE

0 10

#52CITIZENSHIP

0 10

#36ADVENTURE

0 10

OVERVIEW


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PART 5


#1

2 Italy

3 Spain

4 Egypt

5 Greece

6 Thailand

7 China

8 France

9 Mexico

10 United Kingdom

11 Turkey

12 Russia

13 Brazil

14 Japan

15 Israel

16 Morocco

17 Indonesia

18 Peru

19 Portugal

20 United States

21 Poland

22 Singapore

23 Argentina

24 South Africa

25 Malaysia

26 Czech Republic

27 Switzerland

28 Ireland

29 Australia

20 Chile

1 UAE

2 Saudi Arabia

4 Russia

5 Brazil

6 Singapore

7 Japan

8 Thailand

9 China

10 Egypt

11 Vietnam

12 Italy

13 South Korea

14 Morocco

15 South Africa

16 Norway

17 Switzerland

18 Israel

19 Sri Lanka

20 Greece

21 Bahrain

22 Myanmar

23 Germany

24 France

25 Turkey

26 United Kingdom

27 Australia

28 Tanzania

29 Qatar

20 Tunisia

1 Japan

2 Singapore

3 China

4 United States

5 South Korea

6 Germany

7 United Kingdom

8 UAE

9 Australia

10 Sweden

11 Canada

13 Switzerland

14 Norway

15 Israel

16 Malaysia

17 Denmark

18 Netherlands

19 Qatar

20 Finland

21 Russia

22 South Africa

23 Czech Republic

24 Thailand

25 France

26 Ireland

27 Luxembourg

28 Spain

29 Poland

30 Saudi Arabia

1 China

2 Japan

3 United States

4 UAE

5 United Kingdom

6 Russia

7 Germany

8 France

9 Saudi Arabia

10 Singapore

11 South Korea

12 Canada

13 Switzerland

14 Qatar

15 Sweden

16 Israel

17 Australia

19 Norway

20 Brazil

21 Italy

22 South Africa

23 Netherlands

24 Spain

25 Turkey

26 Finland

27 Luxembourg

28 Denmark

29 Malaysia

30 Bahrain

1 Japan

2 China

3 United States

4 South Korea

5 Singapore

6 Germany

7 Sweden

8 United Kingdom

9 Switzerland

10 Norway

11 Finland

12 Denmark

13 Netherlands

14 Canada

15 Israel

16 UAE

17 Australia

18 France

19 New Zealand

20 Russia

22 Italy

23 Qatar

24 Luxembourg

25 Spain

26 Austria

27 Malaysia

28 Thailand

29 Brazil

30 Poland

1 Canada

2 Netherlands

3 Norway

4 Sweden

5 Austria

6 Switzerland

7 Germany

8 Denmark

9 Australia

10 Finland

11 New Zealand

12 Japan

13 Luxembourg

14 Ireland

15 United Kingdom

16 France

17 Portugal

18 Singapore

19 Italy

20 United States

21 Spain

22 Czech Republic

23 South Korea

24 Poland

25 Slovenia

26 Saudi Arabia

27 Israel

28 Hungary

30 Indonesia

1 Japan

2 South Korea

3 Canada

4 Sweden

5 Singapore

6 United States

7 Denmark

8 Switzerland

9 Norway

10 Germany

11 Netherlands

12 Finland

13 United Kingdom

14 UAE

15 Australia

16 China

17 New Zealand

18 France

19 Austria

20 Luxembourg

21 Italy

22 Israel

23 Ireland

24 Spain

25 Qatar

26 Czech Republic

27 Russia

28 Brazil

29 Saudi Arabia

INDIA

Many Cultural Attractions

Distinctive

Entrepreneurial

Economically Influential

Innovative

Trustworthy

Progressive

Both the general population and business decision makers see India as stronger in attributes related to culture and weaker in attributes related to business, according to the Best Countries rankings. The rankings in this chart shows the perception of businesses decision makers. The difference between India’s rank in Entrepreneurial and Innovative indicates an area of potential. The low Trustworthy rank indicates a need for improvement.

Source: BAV Best Countries 2017 / View of business decision makers

… But India ranks lower in business-related attributes

#3INDIA

#12INDIA

#18INDIA

#21INDIA

#29INDIA

#30INDIA

METHODOLOGY


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MEASURING A COUNTRYThis analysis of Brand India is based

on the Best Countries 2017 study,

developed by Y&R’s BAV Group

in partnership with US News and

Wharton Business School. The annual

Best Countries study analyzes and

ranks countries as brands, based

on a model of nation brand equity

developed in partnership with the

Wharton School.

For the Best Countries study, BAV Group surveys 21,400 elites, business decision makers, and citizens worldwide about their views of 80 countries, based on 65 attributes. These attributes are collected into nine subcategories: Adventure, Citizenship, Cultural Influence, Entrepreneurship, Heritage, Movers, Open for Business, Power, and Quality of Life.

Scores in 8 of the subcategories are weighted, based on their correlation with the country’s gross domestic product purchasing power parity (GDP PPP) per capita. The results provide unique metrics to complement traditional economic and demographic data and better understand the perceptions influencing country development. For further methodology details, please visit https://www.usnews.com/news/best-countries/articles/methodology.

PART 5


Views on 65 attributes are collected into nine dimensions. Scores in each subcategory are weighted, based on their correlation with the country’s gross domestic product purchasing power parity (GDP PPP) per capita. In addition to the eight dimensions shown in the pie chart, the Movers dimension measures a country’s momentum.

Some subcategories carry more weight

19%

19%

19%

14%

13%

8%4% 4%

CITIZENSHIPENTREPRENEURSHIPQUALITY OF LIFECULTURAL INFLUENCE

OPEN FOR BUSINESSPOWERADVENTUREHERITAGE Source: BAV Best Countries

SOFT POWER


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INDIA’S LOWER RANK IS INCONSISTENT WITH ITS HISTORY

SOFT POWER IS KEY DRIVEROF A NATION’S BRAND VALUE

Soft power, the ability to exert

influence with cultural and human

capital rather than military might,

is key to building a powerful nation

brand, according to the Best

Countries data. Although India has

exerted this kind of influence—since

long before it was called soft power—

people outside of India view the

country as low on many attributes

that contribute to soft power.

This disconnection is important because a nation’s perceived soft power correlates with its brand equity, according to BAV analysis. Soft power attributes—combined into the categories of Citizenship, Quality of Life, and Entrepreneurialism—drive 57 percent of a nation’s brand equity, while more conventional measurements of power drive only 8 percent.

In the Best Countries 2017 ranking, compiled by Y&R’s BAV Group with US News and Wharton business school, the Top 10 countries overall closely match the leaders in Citizenship, Quality of Life, and Entrepreneurship. The overall Top 10 Best Countries are: Switzerland, Canada, the UK, Germany, Japan, Sweden, the US, Australia, France, and Norway.

Despite perception, India’s soft power credentials are indisputable. The nation’s engagement with its neighbors is historically known for the spread of innovative ideas—Hinduism, mathematics, language, and Ayurvedic medicine—not conquest. India has never sought to be an imperial power, although it has been subjugated by empires.

The Mughals invaded India from central Asia in the early sixteenth century, and ruled until the British displaced them and India became a colony. The philosophy of Mahatma Gandhi, which helped India win independence from British rule, was a remarkable demonstration of soft power, achieving national liberation using non-violent political means.

Changing perception

Raising India’s perceived soft power today requires improving its ranking in the three categories of attributes that drive the soft power score. India’s ranks in these categories are: Citizenship, No. 52; Quality of Life, 30; and Entrepreneurship, No. 28. In each instance, India lags in certain underlying attributes.

CITIZENSHIP India ranks especially low in these attributes: Religious Freedom, Cares about the Environment, Cares about Human Rights, and Gender Equality. Its Trustworthy score also needs improvement.

QUALITY OF LIFE India needs to improve its scores on these attributes: Income Equality, Well-Developed Public Education System, and Safe.

ENTREPRENEURSHIP India’s Entrepreneurship rank would rise with improvements to these attributes: Well-Developed Infrastructure, Transparent Business Practices, and Well-Developed Legal Framework.

PART 5


For India, or any country, to improve in these attributes it could help to learn from—but not necessarily imitate—the soft power leaders. Except for Canada, the top-ranking countries in Citizenship, and Quality of Life are European, often Nordic.

The Top 5 countries in Citizenship are: Norway, Sweden, Switzerland, Canada, and Finland. The Quality of Life Top 5 are: Canada, Sweden, Denmark, Australia, and Norway. The Top 5 leaders in Entrepreneurship are: Germany, Japan, the US, the UK, and Switzerland.

China may best illustrate determination to influence the perception of soft power. Like India, China does not rank

←

high in the three attributes of soft power, but it ranks higher than India. China’s higher rank may result from its soft power initiatives, like One Belt, One Road, an effort to establish trading links that recall China’s Silk Road commerce during globalization’s earliest days. China has also affirmed its commitment to slowing climate change.

India’s lower scores may be appropriate for a small country with regional ambitions, but India will soon surpass China as the most populous nation on the planet. and strengthening the India’s perceived soft power should help the nation build brand value and achieve its political and economic ambitions.

SOFT POWER


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PART 5


Cares About Human Rights

Cares About the Environment

Gender Equality

Progressive

Religious Freedom

Trustworthy

Well Distributed Political Power

Respects Property Rights

Skilled Labor Force

Transparent Business Practices

Well Developed Infrastructure

Connected to Rest of the World

Educated Population

Entrepreneurial

Innovative

Provides Easy Access to Capital

Technological Expertise

Well Developed Legal Framework

Income Equality

Good Job Market

Economically Stable

Family Friendly

Politically Stable

Safe

Developed Public Education

Developed Public Health System

Affordable

A Leader

Economically Influential

Politically Influential

Strong International Alliances

Strong Military

←

Of the 65 attributes that BAV measures to gain insight into country brands, 27 pertain to soft power. Grouped into three categories—Citizenship, Quality of life, and Entrepreneurship—these soft power attributes together drive 57 percent of country brand value.

The attributes that measure traditional power—being A leader, being Economically Influential or Politically Influential, for example, together only drive 8 percent of country brand value.

Soft power drives country brand value…

… And traditional power impacts country brand value less

19% 19% 19% 8%

Citizenship Entrepreneurship Quality of Life Power

1 CANADA

2 Sweden

3 Denmark

4 Australia

5 Norway

Quality of Life Top 5

1 US

2 Russia

3 China

4 UK

5 Germany

Power Top 5

1 NORWAY

2 Sweden

3 Switzerland

4 Canada

5 Finland

Citizenship Top 5 Entrepreneurship Top 5

1 GERMANY

2 Japan

3 US

4 UK

5 Switzerland

Source: BAV Best Countries 2017 Source: BAV Best Countries 2017

INDIA & CHINA


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BUT IS INDIA POSITIONED TO RISE IN THE RANKING

BUSINESS DECISION MAKERS RANKCHINA HIGHER IN KEY ATTRIBUTES

India and China share much in common,

including a population size of around

1.3 billion people, a 2,500-mile border,

and the distinction of being modern

states developed from civilizations

dating to the dawn of human history,

around 5,000 years ago.

In the mid-twentieth century, both countries reached important turning points. India gained independence in 1947, becoming a democratic republic following centuries of rule by the Mughals and then the British. China established the Communist People’s Republic of China, in 1949, culminating a long, disruptive period after the fall of the Qing Dynasty almost 40 years earlier.

And both countries faced similar a similar challenge: to reduce poverty and drive

economic growth, while expanding opportunity and maintaining social stability. In 1979, with the first Special Economic Zones established by Premier Deng Xiaoping, China began sprinting. With economic liberalization, introduced in 1991, India adopted the stride of a long-distance runner, picking up the pace with the election of Prime Minster Narendra Modi, in 2014.

China is in its Thirteenth Five-Year Plan, propelled by the efficiencies of centralized economic and political control. Restrained by its democratic process and extensive bureaucracy, India only recently harmonized the various taxations systems of 29 states and seven territories, with the implementation of a national goods and services tax (GST).

Differing systems and experiences have also shaped the way the outside world views China and India, according to BAV’s Best Countries data, which reveals: (1) China ranks higher than India across almost all 65 attributes BAV uses to measure how people worldwide—both the general population and business decision makers—view 80 different countries; and (2) India is well-positioned to rise in key attributes.

India rankings show potential

Both the general population and business decision makers tend to rank India higher than China on certain culture-related attributes, such as being Distinctive or Unique. Business decisions makers rank China marginally higher in having an Influential Culture: China is No.

1 and India is No. 2. More consequential, business decision makers rank China higher than India—often much higher—on the attributes that are more relevant to doing business.

Business decision makers rank China rank No. 1 in being Economically Influential. They rank India No. 18. China ranks No. 2 in Innovative, just below Japan and above the US. India ranks No. 21. And in being viewed as Connected to the Rest of the World, China ranks No.5, after Japan, the US, France, and the UK. India ranks No. 24, below New Zealand and above Ireland.

PART 5


China ranks higher than India in most of the 65 attributes measured in the Best Countries data. But in attributes where China ranks in the Top 5, India often ranks in the Top 15. India usually ranks in the top quarter or even 20 percent of countries, suggesting that it is well positioned to rise.

The company a country keeps is indicative. Immediately preceding India in Technical Expertise are countries with strong technology reputations: Finland, Sweden, Israel, and Canada.

China ranks higher but India is strong… … And India often keeps strong company

China India Difference

Cheap manufacturing costs #1 #2 -1

Economically influential #1 #18 -17

Has an influential culture #1 #2 -1

Has a rich history #2 #4 -2

Innovative #2 #21 -19

Dynamic #2 #13 -11

Entrepreneurial #3 #12 -9

Politically Influential #3 #12 -9

A leader #3 #15 -12

Technological Expertise #4 #14 -10

Skilled labor force #4 #28 -24

Connected to the rest of the world #5 #24 -19

Although India lags China in most attributes, India is not far behind. China often ranks in the Top 10, and India in the Top 20. In instances where China ranks in the Top 5, India often ranks in the Top 15. Across most attributes, India usually ranks in the top quarter or even 20 percent of countries, positioned to potentially pass many country competitors.

For example, in these attributes—Entrepreneurial, Politically Influential, and being A Leader—China ranks No. 3, and India ranks within the Top 15. China ranks No. 4 in Technical Expertise, and India ranks No. 14. The company a country

keeps is indicative, too. Immediately preceding India in Technical Expertise are countries with strong technology reputations: Finland, Sweden, Israel, and Canada.

Based on the assumption that differentiation is an important predictor of future growth, BAV created a category called Movers by aggregating these attributes—Distinctive, Different, Unique, and Dynamic. BAV found that India ranked No. 3 in the Movers category, below the United Arab Emirates and Singapore—and above China.

1 Japan

2 United States

3 South Korea

4 China

5 Germany

6 Singapore

7 United Kingdom

8 Russia

9 Switzerland

10 Finland

11 Sweden

12 Israel

13 Canada

14 India

15 Norway

Technical Expertise Top 15

Source: BAV Best Countries 2017 / View of business decision makers

BRAND ATTRIBUTES


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TOGETHER, ATTRIBUTES PRODUCE ENGAGING BRANDS

TRUST AND DARING FORMPOWERFUL BRAND TENSION

BAV Consulting created a research

tool—Cultural Rankings—to capture

a snapshot of the mindset of the

consumers and their markets across

categories. The Culture Rankings

measure brands on key dimensions

that matter, from trust to innovation to

social responsibility. The importance

of the attributes varies in relevance

depending on the context—the

time and region being studied. The

results yield insights into otherwise

inexplicable cultural factors underlying

the success and failure of brands.

Applying Cultural Rankings to India today reveals a new and useful insight. Brands seen as trustworthy are the ones consumers are likely to prefer. Consumers expect their brands to deliver on promises backed by a strong track record of dependability and reliability. In addition to Trust, a

fascinating component driving brand strength is Daring. Daring is nearly 70 percent correlated to Brand Esteem and Relevance, important determinants of brand preference.

While these two brand characteristics—Trust and Daring—might seem contradictory, they create a powerful brand tension that pairs excitement with dependability, and makes brands truly engaging. These important drivers of brands in India are also reflected in how the outside world views India, as an exciting and fast-moving market leaning into its powerful heritage.

In the 2017 Best Countries study, developed by BAV in partnership with US News and Wharton business school, India is rated No. 5 globally in Heritage, which relates to history and culture, and it ranks in the Top 3 in Movers, which indicates that people outside of India

recognize the country as dynamic and influential.

Business decision makers view India as innovative and entrepreneurial, demonstrating the impact of Prime Minister Narendra Modi’s vision of a New India. Brands in India are building on this momentum of change and newness. In fact, the most trusted Indian brands today are over 10 percent more Daring than 10 years ago.

The tension between Trust and Daring creates an attention-grabbing, yet dependable, brand personality that propels interest and engagement. Brands exhibiting this personality are especially compelling for a new generation of Indian consumers looking for progress and new opportunities. And these brands might also help energize the image of Brand India to the outside world—both to the public and business leaders.

PART 5

Brand India - CULTURAL RANKINGS

Of the many attributes Indian consumers consider when selecting a brand, being Trustworthy tops the list.

Top BAV Personality Attributes most correlated to “One I Prefer”

Top 10 BAV Personality Attributes most correlated to Esteem and Relevance

Trust is important to Indian consumers…

TRUSTWORTHY

RELIABLE

RELIABLE

TRUSTWORTHY

FRIENDLY

DARING

HEALTHY

FRIENDLY

GOOD VALUE

PRETIGIOUS

DARING

HIGH PERFORMANCE

DOWN TO EARTH

VISIONARY

FUN

HIGH QUALITY

CARES ABOUT CUSTOMERS

LEADER

HIGH QUALITY

GAINING IN POPULARITY

Source: BAV India, General Population 2016

Source: BAV India, General Population 2016

Esteem Relevance

100%

100%

Both Trustworthy and Daring correlate with high levels of Esteem and Relevance, important determinants of brand preference.

… Trusted and Daring brands are more relevant and respected…

Over the past 10 years, Daring has become more associated with India’s most Trusted brands. Daring scores for the Trustworthy Top 100 brands increased 10.6 percent. And 40 of the Trustworthy Top 100 and the Daring Top 100 overlap.

... And increasingly, strong brands have both traits

Source: BAV India, General Population 2006, 2016

Daring Top 100 Brands

Trustworthy Top 100 Brands

40 Brands

CASE STUDIES


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TWO EXAMPLES FROM DIFFERENT CATEGORIES

1

6

2

7

3

8

4

9

5

10

BRANDS COMBINETRUST AND DARING IN CREATIVE TENSIONThese examples illustrate the

interplay of Trust and Daring by

two leading India brands—the

soft drink Thums Up and Ariel, the

detergent. Through their actions

and communications, these brands

achieve the perfect blend of these

two attributes.

Thums Up: resilient and iconic

This is the story of one of India’s most resilient and iconic brands. Launched in 1977 to fill the gap that Coca-Cola left when it exited India, Thums Up introduced a new flavor with some extra fizz and boldness. Indian customers so adored the new drink, and it soon became the market leader. However, in 1993, when Coca-Cola re-entered India

and acquired Thums Up, it is rumored that Coke initially wanted to kill the indigenously produced market leader (something that the company denies).

But the Thums Up brand was so loved, and consumers trusted it so completely, that it not only survived, but continues to be India’s favorite cola brand. And one reason for that popularity has been that the brand has stayed consistent both with its product and in its communications. Thums Up, unlike other colas, was not just another sweet drink, but had that strong fizz and punch that made it a symbol of masculinity over the years. For decades, the brand stuck to its promise of “Taste the Thunder,” and the advertising showcased physical acts of daring performed by the different celebrity brand ambassadors over the years.

Common to all the brand ambassadors was this element of virility and daring-do. Former brand ambassadors, Akshay Kumar and Salman Khan, and the current ambassador, Ranveer Singh, are all poster boys of Indian masculinity, ruggedness and bravado. For decades, the acts of physical dare-devilry revolved around the protagonist chasing a bottle of Thums Up. Lately, there has been a slight shift, with more purpose and good citizenship aspects to the character, who now saves the lives of school children, just before their school bus tips off a cliff. A brand which used to say Aaj kuch toofani kartey hain (“Let’s do something daring today”), is now lacing the action and energy with a do-good spirit, and a protagonist who is not only daring, but also can be trusted now with other people’s lives as well!

Ariel: progressive and provoking

While Thums Up is a lot about the demonstration of the physical aspect of daring, there is another brand that has recently shown a lot of guts in India. This brand is P&G’s Ariel, which is one of India’s most trusted premium detergent brands and one that excels particularly in the washing machine detergents category. In a male-dominated and patriarchal country like India, where household chores were invariably and solely a woman’s domain and responsibility, the brand dared to ask the question “Is laundry only a woman’s job?”

The brand did not stop at just highlighting the massive gender inequality that existed in Indian society, but also had the guts and gumption to cajole Indian men to “Share the Load” of washing at home. It was clearly progressive thinking at work, something that resonated well with a new India where women were proving themselves to be more than equal to men in every sphere and walk of life. The “Share the Load” campaign not only questioned old stereotypes, but also held a mirror to what ideal parenting should be in this new age of gender equality.

An ad memorably captured this message in the emotional impact of a father’s remorse as he watches his adult daughter return home from the

office, ask her son about his homework, and prepare dinner while her oblivious husband stares at his computer.

Realizing that his daughter’s stressed life is in part his fault because of the example he’d set with this own past behavior, the father writes an apology to his daughter, declaring that it’s never too late to change, and promising to help her mother with the laundry.

The ad stoked the collective guilt within our patriarchal society and it showed the way forward. This was not your run-of-the-mill detergent ad talking about whiter and brighter clothes, but a refreshing act of provocation, daring the audience to do the right thing.

Automobiles

Bar and Liquid Soaps

Carbonated Soft Drinks

Laundry Products

Beauty Products

Salman Khan - Celebrities

Laundry Products

Automobiles

Carbonated Soft Drinks

Snack Foods

Top 10 Most Trusted and Daring Indian Brands

Source: BAV India Cultural Rankings

by Navonil ChatterjeeChief Strategy Officer, PlanningY&R [email protected]

PART 5



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PART 5


BAV AND CULTURAL RANKINGSThe BrandAsset Valuator (BAV) is a study of consumer brand perceptions, measuring brands on imagery and equity dimensions in a category agnostic fashion. By understanding and exploring a brand against the broader dynamics of culture, BAV can provide insight into a brand’s larger role in the evolving cultural marketplace and provide actionable insights that drive both brand growth, and the brand’s impact on culture.

For more information about BAV and its Cultural Rankings, please contact CEO Michael Sussman at [email protected].

To find out more about BEST COUNTRIES visit:https://www.usnews.com/news/best-countries, or contact:

Anna BlenderBAV Group [email protected]

. . . B U T A L S O S E E K O P P O R T U N I T I E S AT H O M E .

Y O U N G I N D I A N S A C C E S S T H E W O R L D . . .

BRAND BUILDING BEST PRACTICES

COMPLEXITY

INDIA’S MARKET SIZE AND DIVERSITYDEMAND LONG-TERM COMMITMENT

BRAND MARKETERS FIND OPPORTUNITIESWITHIN COMPLEXITY AND CONTRADICTION

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One of the most important insights

about India is: There is no universally

applicable and enduring insight.

Let me explain.

Given the size, growth, and complexity of India, “Newton’s Law of Consumer Trends” applies. For every consumer trend, there is an opposite, not necessarily equal, trend. So while many consumers are concerned with preserving tradition, there are also those who desire the new, exciting, and international. Obviously, the same individual consumers could sometimes advance both trends, varying their behavior according to the occasion.

Similarly, 30 percent of Indian consumers are willing to spend more on products they perceive to be “better,” while consumers also trade down for products that do not have image connotations. And while Indian domestic air travel witnessed a high 23 percent increase, twice the growth rate of China’s domestic air travel, Indians still fly less than Chinese and even less than neighbors in Pakistan and Sri Lanka!

Contradictions prevail among Indian consumers. in many categories. While the fast food industry is growing at 25 percent, pizza consumption is growing at only 3 percent annually, far lower than other countries. India contains under-penetrated potential waiting to be unlocked. From a marketing point of view, this represents an interesting paradox with opportunity at both at the top and bottom of the pyramid.

Discretionary spending grows

Traditionally, increasing market penetration has been the biggest driver of growth. But this is set to change. As Indians climb the economic ladder, a mammoth 800 million people, 2.5 times the population of the US, will belong to the consumption class ($4,000 average annual household income) by 2025.

Aditya KilpadySenior Vice President, Strategy PlanningContract [email protected]

Similarly, the affluent class will expand to 23 million by 2025. With rising affluence, the frequency of purchase and spending occasion will rise in importance. The composition of spending will also change, as discretionary spending will take a larger share, and a higher chunk of income will be spent on looking and living better. Some recommendations:

BRANDS NEED TO EMBRACE CONTRADICTIONS Lakmé, a cosmetics brand, straddles the extremes of contemporary beauty and fashion, and tradition (The Lakmé name is a derivation of the Hindu goddess, Lakshmi). It communicates to each of its consumers with a foot in each world. Lakmé successfully balanced its brand heritage with its contemporary presence, by establishing Lakmé Fashion Week, the brand’s own fashion event, ensuring that the brand is the centerpiece and not an accessory at the event.

BRANDS NEED TO ADAPT AND ADJUST MasterCard redesigned its business model, letting consumers “push” cash from their cell phones to merchants, making cash transfer simultaneous with the purchase. The brand expects to invest $800 million over the next several years, as India transitions from a cash to a digital economy.

Tapping the unexplored

With 1.3 billion inhabitants, India offers scale. Building scale requires serving the needs and interests of different segments of the population. Consumer spending in emerging cities (population less than 1 million) is growing 14 percent annually. These people have high ambitions, purchasing aspirations, and a strong value-for-money orientation. But they are often constrained by product availability. Consumers in both large and emerging cities desire “the good life.” Opportunity for brands lies in helping them achieve it.

BRANDS NEED TO MEET DESIRE WITH AFFORDABILITY The telecom brand Jio changed the telecom game in India. While the average smartphone price declined to $130 thanks to the Chinese brands, the true potential could be harnessed only if combined with high speed data. In the first six months of launch, Jio (offering free voice and 4G data at $5 for 30GB) acquired 100 million subscribers, rapidly taking market share away from incumbents.

BRANDS NEED TO REFRAME THE OPPORTUNITY Truecaller, a caller ID mobile app, had captured India’s urban smartphone users. However, as growth plateaued, Truecaller shifted its focus to emerging towns and new smartphone users. By positioning itself as an identifier of opportunities, rather than identifier of calls or spam, Truecaller more than doubled the app downloads in these towns.

There may not be a universal and enduring insight that leads to brand success in India. But the opposite notion seems to be true. Brand opportunities are abundant within India’s complexity and contradiction. Success rewards brands that take the time to find the opportunities and respond in ways that are relevant for Indian consumers.




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BRAND BUILDING ACTION POINTS

BRING AN OPEN MIND Do not be tied to traditional brand-building assumptions. A master brand strategy is not always the formula for instant success. Brands need to worry less about sharp focus in India and instead learn to stretch and expand across dissimilar categories.

1

THINK AND ACT REGIONALLY For international brands, it is useful to think of India as Europe, a large geography with states that are both unified and distinctive.

2PREPARE FOR A MARATHON, NOT A SPRINT In India only noodles and coffee are instant. Winning requires preparing for a long distance marathon, bringing in discipline, patience, and a large heart to overcome challenges.

3

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The most powerful words in any

language are, “Let me tell you a story.”

No wonder some of advertising’s

greats have been highly skilled

storytellers. As the legend goes, when

David Ogilvy was on his way to shoot

the first Hathaway Shirt ad, he picked

up some props to add a story element

to an otherwise bland fashion shoot.

And one of those props was, of

course, the famous black eyepatch.

In an era when dashing World War II veterans occasionally wore eyepatches, it immediately created a mythology around the elegant model with the expensive lifestyle: Who was he? What was his story? What was the mysterious secret of his past? These things were never explicitly revealed over the next two decades that the Hathaway campaign ran, unchanged.

Ogilvy later confessed that he got the idea from James Thurber’s classic short story, “The Secret Life of Walter Mitty,” to trigger the “Walter Mittyesque” fantasies lurking inside all of us. The Hathaway campaign was ranked by Advertising Age as one of the Top 25 Advertising Campaigns of the 20th Century, and it went on to inspire numerous other brands over the years, including Marlboro, with its iconic Marlboro Man.

Today, the nature of brand storytelling has obviously evolved, and the brand stories that were once simply written into TV commercials and press ads have become part of the consumer’s larger brand experience. With exciting new media opportunities, from digital and interactive to in-store branding, storytelling has become more relevant than ever before, and an entire mini-industry of brand storytellers and consultancies has sprung up, specializing in the art of articulating and narrating brand stories.

Connecting with the consumer

Storytelling is essentially a strategy that takes us through the process of crafting a relevant narrative—from the creation of an initial “brand Bible” to the creation of characters, plot, conflict and resolution. But the crux of it is that the brand needs to interact with a consumer’s own story. It is how you activate the personal narrative that determines your ultimate connection to the consumer.

Great examples are brands like Harley-Davidson, Absolut Vodka, Starbucks, Apple, Coke and Ben & Jerry’s, and the reason they inspire such brand loyalty is because they tell a story that consumers are eager to adopt as their own. We need to examine the mythologies surrounding such brands, and think like storytellers, developing narrative skills that will enable us to craft brand stories that will resonate with the consumer’s sacred beliefs, and thereby drawing him/her into an enduring relationship.

Indian brands like Paper Boat (soft drinks), Royal Enfield (motorcycles) and Sodawaterbottleopenerwala (café) all tell great brand stories, in their own different ways. But there is a special learning in Surf Excel, with its Daagh achhe hain story, which asserts that stains on children’s clothing are good because they represent the fun and freedom of childhood.

Before that idea was unearthed through market research, it had been lying there for years, waiting to be uncovered, in many much-loved works of popular literature, like the misadventures of Dennis the Menace, and Richmal Crompton’s Just William books (about her endearing little schoolboy rascal). Indeed, the idea goes all the way back to the lovably naughty antics of Lord Krishna as a child.

There’s an important lesson in this for all brand marketers: we need to read a lot more fiction, for it is from fiction that we learn the dynamics of compelling storytelling—not to mention a wealth of sharply-etched human insights. Meanwhile, there are hundreds of timeless brand stories out there in literature just waiting to be discovered, ranging from R.K Narayan’s tales of Malgudi, his fictional town, to Amish Tripathi’s mythological fantasies, or, indeed, Charles Schultz’s classic Peanuts cartoon strips.

But the real trick is to understand that a good story taps into a specific emotion and takes the consumer on a journey of transformation. Whether it helps sell a product or not, the story must necessarily stand on its own. If the story is nothing more than a thinly disguised marketing message, you’re just fooling yourself.

An outstanding example was Barclaycard’s brand story of a bungling secret agent (played by Rowan Atkinson, of Mr. Bean fame) who demonstrated the credit card’s advantages through his various mishaps. It was a story so powerful that it was eventually spun off into a feature film: the hilarious spy spoof, Johnny English.

So how engaging is your brand story?

STORYTELLING

THE BEST BRAND STORIES RELATE TO CONSUMERS’ PERSONAL STORIES

GOOD STORYTELLINGIS A POWERFULTOOL FOR BUILDING MEMORABLE BRANDS

Anvar AlikhanSenior Vice President and Strategy ConsultantJ. Walter Thompson, [email protected]

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TELL STORIES Today, storytelling has become more relevant than ever before, with exciting new media opportunities, from digital and interactive to in-store branding, thus making brand stories an integral part of the brand experience.

1

TELL REAL STORIES A good story is an end in itself. If the brand story is merely a thinly disguised marketing message, it’s probably not going to work.

2INTERACT WITH THE CONSUMERS’ STORIES The secret of good brand storytelling is that it needs to interact with the consumer’s own story, and thereby create an intimate connection with her.

3

SPENDING

GREATER AFFLUENCE AND YOUNGERPOPULATION DRIVE THE CHANGE

NORMALLY THRIFTY, INDIANS TODAY ARE SPENDINGMORE AT THEMID-PRICE LEVEL

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The India we live in today is

significantly different from the

country we lived in 20 years ago. Our

consumption has gone up by more

than three times in the past 10 years

and is set for roughly the same rate of

growth in the next 10.

And with this growth has come a boom in the mid-price segment of goods and services. For a country of price-conscious consumers, what has enabled this shift upwards from low-price to mid-price?

The Indian middle class is growing in size, so it’s not surprising to see a growth in the number of products and services that cater to them. Nestlé India manages its entire basket of brands keeping one differentiating thought in mind. The company believes that the Indian market, which has customarily been represented as a pyramid, is actually shaped like a diamond, with the middle class growing in girth and prosperity

Couple growth of the middle class with the fact that India is getting younger. The median age in India is 27, around 10 years younger than the median age in the US. And young means hungry, aspirational, ambitious and, importantly, more comfortable with technology.

These factors are driving a shift in consumer spending priorities, away from the bare necessities—food, clothing, and shelter—that historically accounted for the largest portion of the Indian household budget.

Focus shifts to lifestyle

Indians are spending an increased portion of their income on education, entertainment, and leisure. There’s more of a focus now on being smarter, looking better, eating better, and having more fun. The previous adage of “Work is worship” has subtly shifted to “All work and no play makes Ram a dull boy.”

Dia KirpalaniDirector, StrategyContract [email protected]

Perhaps more pertinent, Indians are spending on better, higher-priced sub-segments within the same categories. This ranges across the board—from food to white goods. Over a third of Indians are expected to trade up—switch away from buying cheap products and toward buying slightly more expensive products that offer them better value.

Fogg deodorants, for example, is priced higher than mass deodorant brands. But consumers still choose it over mass brands because they see value in the product proposition, which is to offer a more concentrated formula that promotes the benefit of more sprays per bottle. Clearly, we are seeing a shift away from price and towards value. But, as the Fogg example illustrates, to project value, brands must create a feeling of differentiation.

Daikin air conditioners, available on Flipkart, Quikr, and Amazon, come at a 15 percent premium over basic air conditioner brands and models. But with its claims of superior cooling, energy efficiency, and therefore reduced energy costs, the Daikin brand manages to create a value perception that more than offsets its higher price.

Digital expands access

If there’s one thing that has exposed consumers to value alternatives and provided access to a wider range of products and services, it’s the smartphone and e-commerce. E-commerce gives us greater exposure to what constitutes an improved lifestyle in keeping with our greater affluence.

The innumerable promotions we receive online encourage us to experiment and overcome our innate thriftiness. This environment gears middle-class Indians to pay more attention to self-image, comfort, and health and wellness. It challenges brands to gain a value perception in the consumers’ mind, which can be accomplished in several ways, including:

BY PRODUCT SUPERIORITY THROUGH INNOVATION Like Gillette did with its ProGlide blade that could last up to five weeks, or like Tide demonstrated in its latest #CollarUpWithTide campaign, that emphasizes cleaning power.

BY ALIGNING WITH A CAUSE Like Tata Tea did with its “Power of 49” campaign, encouraging women, 49 percent of the electorate, to vote and thus shape issues, particularly those that impact women.

BY BUILDING PREMIUM CREDIBILITY Like IndiGo airlines did with its young and trendy tone, which reflects its on-board experience.

In its iconic “Because You’re Worth It” campaign to empower women, L’Oreal captured the spirit of the new India. People have a stronger sense of self-worth and are more aware of their options for purchasing goods and services. Indian consumers can now more easily afford the trappings of an improved lifestyle. It’s time for brands to up the ante and keep pace with their changing needs and desires, and spending priorities.



. . . B U T S T I L L P R E S E R V E C L O S E FA M I LY T I E S .

T H E Y L I V E A F R E E R L I F E T H A N T H E I R P A R E N T S , . .

LOYALTY

YOUNG INDIANS EXPECT THE BEST,AND WILL CHANGE QUICKLY TO GET IT

OUR NOTION OF LOYALTY NEEDS UPDATINGTO MATCH THE REALITY OF TODAY’S INDIA

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Market evidence shows that brands that are bigger in size tend to have more loyal consumers. However, for a brand to become bigger in size, it requires attracting new consumers. This seems like the chicken and egg dilemma.

Rather than attempt to resolve what comes first—loyalty or size—I feel we need to update our notion of loyalty to match the cultural and economic realities of India’s current and future consumers.

Here are some reasons why the concept of loyalty is becoming irrelevant in consumer lives:

EXPLORING, EXPERIENCING AND EXPERIMENTING IS IN Today, India is an exciting market because of its vibrant youth population and optimistic outlook, which are driving growth through adoption of new products and categories. Young affluent consumers in urban India, at least, seem to have caught up with the world and the rest of India is in a race to catch up to them.

IT’S A FICKLE WORLD OUT THERE FOR THESE YOUNG INFLUENCERS They can get unfriended for a poorly expressed opinion, broken up with over text or Whatsapp, ghosted for no apparent reason, and overlooked merely because someone else looks better—not necessarily in real life, but on Tinder.

Divya KhannaVice President and Strategic Planning Director, BengalaruJ. Walter [email protected]

THE POSSIBILITY OF BETTER OPTIONS MAKES FOR COMPLEX DECISION-MAKING “I feel compelled to do a lot of research to make sure I’m getting the best,” Aziz Ansari says in his book, Modern Romance. Is he talking about the book’s subject, the epic search for a soulmate? No. Just the elaborate process he goes through to decide where to have dinner. It’s difficult to settle on just one choice when you know that there may be better choices out there..

AN “UPGRADE MENTALITY” HAS TAKEN HOLD With limitless possibilities and an overwhelming array of choices, young people are finding it easier to move away from extended families, switch jobs and cities, even drift in and out of relationships. Just like they turn in their phones for a newer model every year, they can also switch to a better job, move to a better city, find better friends and partners, and completely remodel their lifestyles when they choose.

SWITCHING IS EASY AND LOW-RISK Many new brands desperate for market share tend to buy consumers rather than earn them. Promotional deals, price-cutting, discounts, and exchange offers, all make it easy to make a switch and rationalize the change.

In this fast and fickle world, some brands do manage to sustain and nurture their consumer relationships—and build loyalty. Not because they have a magic formula to promote loyalty but because, deliberately or otherwise, they have built something consumers value more than the shiny appeal of something new. Loyalty is an outcome for a brand, not an action. There are steps brands can take to achieve that outcome.



“Brands can enjoy higher loyalty, but only if they very substantially improve

their penetration. A loyalty-first approach is simply not a growth strategy.”

Jenni Romaniuk and Byron Sharp, in their book, How Brands Grow Part 2


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SIMPLIFY CHOICE BY BUILDING FAMILIARITY There is value in promoting some consistency in the brand communication and offering. It’s easy to select what’s familiar when the other choices are too many and too complex. It’s not mere chance that many big brands—like Colgate, Coca-Cola, and McDonald’s—only make small incremental changes over the years.

1

ENCOURAGE A HABIT WITH A PREDICTABLE SENSORIAL CUE The taste of Amul butter, the typeface of the Times of India, the aroma of Nescafé—sensorial cues—are comforting and habit-forming. Habits are stronger and much harder to break than mere affection for a brand. Consumers resist changing their habits.

2

BE SECURE AND NOT TOO NEEDY Brands, just like people, can come across as desperate and needy when they chase consumers in overt and obvious ways. People place higher value on things they need to work for compared with things that come more easily. Apple’s limit on promotions helps keep the brand more desirable.

3

BE LOYAL Loyalty given is loyalty earned. It’s not just consumers who can be fickle. Brands can be fickle too. They often change target audiences and products without concern for the shock loyal consumers may feel. Find ways to reward loyal consumers for sticking with the brand. Maggi’s Me Aur Meri Maggi (Me and My Maggi ) campaign celebrated and strengthened its emotional connection with loyal users, who then stood by the brand when it went through its food safety crisis several years ago.

4

ACKNOWLEDGE THAT LOYALTY IS OLD-FASHIONED It’s unrealistic for brands to expect loyalty from consumers who have already lowered their standards of loyalty in personal and business relationships. Creating variety through a portfolio of products to satisfy core customers can help retain promiscuous consumers. But using the variants to attract new users to the brand is a more effective strategy. When new users come into the brand, they make current users see it in a more attractive light. No young person likes to be in a relationship that’s stifling.

5

SOCIAL MEDIA

PLANNING, DATA, ANALYTICS HELPASSURE A POSITIVE EXPERIENCE

UNANTICIPATEDCONSEQUENCESON SOCIAL MEDIA THREATEN BRANDS

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It was a fine Wednesday afternoon

and the weather was pleasant in

most parts of the country. A drizzle

somewhere, a cloudy sky elsewhere,

and a mild breeze in most places.

It was also a slow news day. No

surprising deaths, no political breaking

news or cricket defeats. A cup of

coffee would have been apt, wherever

you were and whatever you were up

to. As if to add to the positive mood, a

major telecom brand decided to post

an anecdote from a popular stand-up

comedian on its Facebook stream. The

anecdote was about making the most

of every moment, which fit well with

the telecom’s theme for the month.

It took only a few seconds before the brand’s Facebook page become filled negative comments. “Rotten network,” claimed one person. Another person piled on with, “It’s been 10 days and you have not resolved my query.” The person asked if the brand had any shame left. The audience, which usually loves a good fight, added comments supporting the outraged customer. Predictably, the brand soon posted a courteous, standard response promising swift action.

A few days later, India was booted out of the finals of a major cricket tournament. The entire nation seemed to be polarized into either a state of sadness or anger, nothing in between. However, this did not stop a battery company from launching a digital video whose protagonist, and brand ambassador, was a leading cricket player. The campaign was promoted on Twitter. And to make matters worse, the hashtag of the campaign was convenient enough to spawn extraordinary creativity among a multitude of “memers.” Sadly, for the brand, this content ended up being more fun than the genuine brand conversations that the video was generating. Add to this a couple of activists, who were quoting the hashtag to bring into limelight the government inaction on the rapidly drying water reservoirs in their city.

Not quite the “brand experiences” that were intended, I am sure. These two

Karthik NagarajanHead, Content [email protected]

completely unrelated incidents, on two different platforms, reinforce the point that brands are never completely safe on social media. Why is that?

First, our world is deeply divided on politics, religion, and economic trends. Social media is obviously not insulated. If anything, it is at the forefront of this divide. For a mob that is looking for an excuse to express outrage, branded content unintentionally becomes easy fodder.

Second, brands are not safe from themselves either. Some sectors more than others have very frequent touch points with customers, and this means that they probably have more dissatisfied customers than others as well. And nothing gives more satisfaction to a dissatisfied customer than an opportunity to watch the brand bleed. The more unfair and unrelated it is, the better!

So how should a brand react? Can one avoid the medium entirely? No. Can one satisfy everyone equally and avoid conflict? No. Not at all. Can one prepare adequately and give the content the best chance of succeeding? Absolutely!

UNDERSTAND YOUR DIGITAL AUDIENCE BETTER Your social media audience is not a monolith. It is not homogeneous. Thankfully, most brands have a reach that is contained within a particular group, and hence is finite. It is important, however, to know what kind of profiles populate this group and what social media associations are likely to resonate with them.

CONTENT IS NOT THE END, BUT THE BEGINNING OF A JOURNEY The piece of content that a brand creates is a conversation starter. It is m erely a gate pass to a party. Like all great conversations in life, it takes more than one person and it happens only when you are interesting. “Give me a number and I will call you back,” is not interesting, especially when you are going to say that to everyone

at the party. Great brands on social media have always been able to extend the creativity and tonality in their content to the conversations as well. This outcome requires having a brand team that is spontaneous, and having the right influencers on the platform.

DO NOT CREATE CONTENT IN ISOLATION In the example above, could the battery brand have handled things better? Probably. Today, given the extent of content trendspotting and natural language processing (NLP) analytics available at a brand’s disposal, it is possible to gauge the mood of a medium and make educated content decisions—in terms of form, talent, genre, and even timing. Fluid content is no more an academic term, but a reality. A necessity even.

For decades, brands and agencies decided what content needed to be created, and where and when it should be housed. In many ways, what we are seeing today is this authoritarianism giving way to a democracy where brands are creating content as a response to, and in collaboration with, the audience. The technology, the command centers, and the analytics to make this possible exist. Brands need only to bring their will to the party.

GroupM’s primary purpose is to maximize the performance of WPP’s media communications agencies on behalf of their clients, stakeholders and people by operating as a parent and collaborator in performance-enhancing activities such as trading, content creation, sports, digital, finance, proprietary tool development and other business-critical capabilities.

www.groupm.com

STARTUPS

BRANDS SOLVE PROBLEMS, DELIVEREXCELLENT CUSTOMER EXPERIENCE

BEST STARTUPSBASE BUSINESSESON LOCAL MARKET CONSUMER INSIGHTS ←

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India has become a leading global

startup hub. The winners of the Indian

startups scene followed the advice

of inventor Thomas Edison, who once

said “Genius is 1 percent inspiration,

99 per cent perspiration.”

This approach has resulted in products that are not only based on inspired ideas, but also anchored in the knowledge of Indian consumer attitudes and beliefs, and delivery of great customer experience. Related brand-building practices have been long-term, strategic, and insightful.

Parul BudhirajaAssociate Vice President, Strategic [email protected]

However, 2016 turned into a rather cautious funding environment story for India. Several factors contributed to slower activity following 2015, when startups experienced a golden year, marked by investors pouring in money to the tune of billions of dollars.

This funding gave strong impetus to some winners, who with viable and sustainable business models and problem-solving demeanor, expanded aggressively and moved forward. But other startups used the funding to gain eyeballs without spending time on creating a unique product, clear business model, or execution plan.

The experiences of these two groups of startups confirmed that the secret sauce needed to build a successful brand contains these ingredients: solving problems for the benefit of customers, and India; prioritizing the customer experience; and developing a sustainable business model instead of one based on unrealistic growth in brand valuation or customer numbers. Here are three startup summary case studies that illustrate the point.

CASE STUDY: DROOM Droom.in, an e-commerce platform for selling used cars and bikes, has shown strong strategic long-term vision. Founded in 2014, the brand maintains a lean and agile team. Unlike typical classified sites, which are mostly transactional, Droom is building an ecosystem of consulting services that build trust while facilitating purchase decisions

One of the brand’s proprietary tools, Orange Book Value, helps buyers and sellers evaluate the price of car. A trusted price evaluation has been a key factor in successfully closing deals. Droom also built its brand communication around a deep-rooted cultural truth: when people buy new cars, they feel proud, but they do not feel the same pride when buying a used car. Droom promotes the emotional lift people can get from driving a vehicle—new or used.

CASE STUDY: CHAAYOS Chaayos, founded in 2012, creates a unique experience in its tea rooms. Chaayos understands the desire for a place to enjoy a break from daily stress, but responds with tea, India’s traditional drink, instead of coffee. Chaayos targets the rising middle class that has money to spend on experience, and it offers thousands of varieties of tea.

Chaayos has a sustainable business model with significant growth opportunity in India. The brand has ensured that while the company scales up, the quality or the customer experience will not be compromised.

CASE STUDY: NAUKRI.COM Naukri.com is India’s No. 1 job search portal. Founded 20 years ago, Nakuri.com identified and gradually built a service around a market gap—the need for a simple, searchable web page where companies could post jobs and employees could look for jobs. The business model depended on companies paying a monthly fee.

The brand grew by using consumer insights to expand its offering and perfect the customer experience. Naukri.com developed its advertising messaging around the insight that people leave bosses, not jobs.

Naukri.com operates on a simple premise that it’s easier to gain business from existing customers than to gain new customers. Naukri.com provides basic search for free to ensure the customer keeps coming back, and it sells additional services at a premium.




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PRIORITIZE CUSTOMER EXPERIENCE Customer expect a lot from startup brands. There is little room for error. Mistakes can mean losing a customer for life. Startup brands need to excel in executing their ideas and experience well to deliver on the promises they make. They need to avoid overstatement and under-delivery.

1

CONNECT BEYOND FUNCTIONALITY Convenience, access, and price might seem like the important consumer benefits offered by online startups. But the key to building long-term connection lies a little beneath the surface. An emotional connect can be a reason for your brand to attract more people in an environment where competition is just a click away.

2

BALANCE LONG-TERM AND SHORT-TERM ACTIONS Short-term tactics like sales, promotions, and incentives are important. But they do not substitute for actions that sustain the brand long-term. Even if the future is unclear, it is important to implement initiatives based on long-term vision, and not simply repeat short-term tactics to inflate valuations.

3

SOCIAL CONTEXT

BRANDS NEED TO UNLOCK THE STORIES THAT EXIST IN THE HEARTS OF CONSUMERS

COUNTERING GLOBAL INFLUENCE, INDIANS EMBRACE LOCAL ROOTS AND CULTURE

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Can you package politics, retail

religion, and price patriotism?

For those who like to get straight to the point—yes. Brands don’t exist in a vacuum. One cannot deny that social context affects the way brands must behave and do business in a country. Next time you’re at a McDonald’s restaurant in India, look out for the sign that says, “No beef and beef products sold here.”

But how can the socio-political context be leveraged to help Indian brands succeed? To understand the “how,” let’s first tackle the “why.”

It might seem counterintuitive to focus on a local political, religious, or patriotic story in today’s aspiring, globally engaged India. But the observant will note that the reality is growing to be quite the opposite. Among all the firang (foreign) influences permeating Indian culture today, Indians crave some shuddh desi ghee (traditional clarified butter used in Indian cuisine).

Bye bye Prada, hello Patanjali.

This isn’t just an Indian phenomenon. The Brexit vote and Trump’s election are both symptomatic of countries anxiously “reclaiming” their identities. In truth, brands represent ideals, values, and identities. As such, when they ally themselves with religion, politics, or nationalism, they are able to tap into a deep well of preexisting emotion.

With foreign players like Starbucks and their ilk penetrating the Indian market, Indian companies can leverage this Indian need for identity in order to drive brand loyalty. Even in a time when brands enjoy less consumer loyalty—faith sells. It’s even inflation proof.

If you’re trying to answer the question, “how do I get the Indian customer to care about me?” this certainly does seem to be a winning strategy. However, building a narrative around people’s belief systems is a double-edged sword to be wielded with caution. In a country like India, a minefield of sentiments and opinions, you have to do it right.

Sanjana MathurStrategist and Client Manager [email protected]

Let’s get down to brass tacks. Here are the five things you need to keep in mind.

CREDIBILITY IS A MUST While this may seem par for the course, authenticity is the backbone of any socio-political proposition. Authenticity is built over time, so this one is less of a criterion and more of a conviction. Think about it. Missionary schools in India don’t sell a belief system, they live it.

DON’T OVERPLAY IT Unless you happen to actually be a guru or Narendra Modi, the hero of your story cannot be religion or politics. It should, instead, manifest as part of the driving values of the brand. Think of Patanjali. It is not a brand with spiritual products per se. The brand instead leverages founder Baba Ramdev’s image as a yoga guru to associate itself with the idea of natural, pure, healthy, and Indian—qualities directly relevant to the products that it sells.

BE SENSITIZED TO THE TOPICS YOU ARE DEALING WITH In the internet age, where brands face the constant threat of the social media shredder, death by tweets and hashtags is a stark reality. The fiasco with Kendall Jenner in the Pepsi “Live for Now” film illustrates this point perfectly. The tone-deaf advertising that appeared to be capitalizing on the protests taking place in the US ultimately did the brand more harm than good.

FIND THE RIGHT POINT OF RESONANCE BETWEEN YOUR BRAND AND SOCIO-POLITICAL MESSAGE The lack of resonance between Pepsi as a brand and political activism is perhaps what also led to the failure of the “Live for Now” campaign. In contrast, Dettol, a brand of soap and cleaning products, was able to ally itself with Prime Minister Modi’s Swacch Bharat (Clean India) initiative

with great success as a brand that has stood for hygiene and sanitation over the years. The brand outperformed category growth. Similarly, Tata Tea’s Jaago Re (Awaken) campaigns to raise awareness around social issues connected at a fundamental level with their product’s “refreshing” properties.

USE LANGUAGE TO BE AN ALLY OF THE NATION Brands are able to tug on our collective Indian heartstrings with well-timed slogans like “Bleed blue,” to support India’s cricket team. I am personally susceptible to the word desh (native land), as used in Tata Salt’s desh ka namak campaign to recognize people who in some way are giving back to India, or Hero Honda’s desh ki dhadkan, which celebrates India’s cultural and geographic diversity. The dairy brand Amul has consistently been there at every turning point in Indian history with a well-placed pun in the world’s longest running campaign, establishing the brand’s credibility as commentator.

Indians are embracing their roots and culture, and there is great value to be found for brands tapping into cultural nuances. As with most things in branding, the key is finding your story and telling it right. The big difference? Your story already lives in the hearts of consumers; it’s waiting to be unlocked.

A global leader in brand consulting and design, Landor helps clients create agile brands that thrive in today’s dynamic, disruptive marketplace.

www.landor.com

TRUST

EVER MORE RARE AND CRITICAL,TRUST IS THE NEW CURRENCY

BRANDS REACTAS SKEPTICISM,A GLOBAL TREND, REACHES INDIA

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Siddhant LahiriHead - Strategic Planning, MumbaiRediffusion Y&[email protected]

Why do we buy brands? Why do we

spend extra and pay a premium to

buy a product that has a brand name

plastered on its surface?

Simply put, brands imply an assurance of quality and of reliability. In other words, a brand stands for trust. If I have paid a premium and purchased a branded product, instead of buying an unbranded one from the local market, it is because I trust the brand to deliver value and experiential satisfaction in a better, more durable way.

However, recent studies show that this kind of thinking may be the hallmark of a bygone era. Increasingly, consumers are losing trust in brands. A recent global study conducted by Y&R shows that trust in corporations and brands has declined by over 50 percent worldwide since 2001. In fact, consumers considered only 25 percent of brands trustworthy by 2013.

Let that figure play in your mind for a while—25 percent. That means that a consumer trusts only one-in-four brands. Conversely, the consumer has no trust in three-out-of-four brands. Now that’s a scary thought for any marketer. This trend now is increasingly visible in India, too.

Trust has always been key in the Indian market. The only difference is that earlier trust percolated down from figures of authority. That is why we would happily trust figures we look up to—doctors, actors, sportsmen—and unquestionably buy whatever they endorsed. Hence, the role of trust in brand building is not necessarily a new phenomenon.

What is a new development, however, is the relationship consumers now have with trust. Trust is outstripping many other virtues to become the primary value the consumer is concerned about. In a world where trust is falling rapidly, it becomes the new currency: increasingly rare and increasingly important.

This is partly because the environment in which all Indian corporations function today is rapidly changing. As in the rest of the world, huge volumes of cross-channel media clutter, with one competitive claim on top of another, has created an audience less willing to trust the big companies. The “Big Bad Corporation” is struggling with being trusted in India now too. The sentiment has shifted from the earlier, “I’m a brand—trust me,” to, “I know I’m a brand, but please trust me anyway!”

In today’s open, interconnected world, information to build or erode trust travels faster than anything else, irrespective of which corner of the world the brand lives in. For example, recent events have ensured that Indians are wary of United Airlines because of news reports and social media about an incident of passenger mistreatment. And to think that the brand that has no presence in India! Conversely, Xiaomi, with no previous presence of its phones in Indian market, sold out its entire inventory within hours of its first-ever launch in an online flash sale a couple of years ago. Trust is increasingly becoming delicate and ephemeral—difficult to gain, easy to lose, but armed with make-or-break power.

Trust: difficult to gain, easy to lose

Today, brands don’t have consumers—they have communities. Rather than just a collection of individuals who have purchased a brand, consumers today are an influential, aware, savvy collective who will rally behind a brand—or tear it to shreds. The power has shifted from brands to communities of consumers, and all communities thrive on trust.

The role of trust is reflected in the way the new India transacts. We are now jumping into cars with strangers, ordering food from restaurants we have never heard of, and living in the spare bedrooms of people we have never met in faraway locations. And we are comfortable doing these things because that stranger or the restaurant has five stars next to the name, and because there is a logo somewhere on the screen which I have faith in. There is, therefore, far more at stake today than simply buying a product. This is a world that is literally moving on trust—no wonder trust is gaining in importance and brands are fighting hard for it.

Rediffusion-Y&R enjoys an enviable legacy of 40 years of creating category-busting communication that is strategically sound and which makes brands endure in the lives of consumers.

www.rediffusionyr.com


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WALK THE TALK Trust is built on actions. Show that you are trustworthy through your actions. McDonald’s does not make any lofty claims about being the most healthy or nutritious of food sources, but by recently becoming open about its recipes and ingredients, McDonald’s shot to the top of many trust surveys across the world. Similarly, when Tata Tea insists on giving 49 percent of its jobs to women, that is an action that creates ripple effects. Show who you are through your actions.

1

BE TRANSPARENT Live up to your claims—and hide nothing, even failures. The Samsung CEO’s recent admissions about the need to improve after the Galaxy Note 7 debacle is a refreshing and applause-worthy expression. Similarly, Airtel managed to earn trust, respect, and subscribers when it recently became an open network, willing to share details about its workings with consumers. There is simply too much information out there today to try and cheat consumers. Consumers respect honesty.

2

BE RELEVANT It is important to interact with the consumers in relevant ways if you want to gain their trust. See the way Chinese mobile brands have flooded the Indian media. Be it Vivo sponsoring the Indian Premier League or Oppo sponsoring the Champion’s League, these Chinese smartphone brands have successfully used cricket to entrench themselves into Indian culture. In one sweep, these brands have managed to get the recognition and trust which would ordinarily have taken years, simply by engaging with their target audiences in a dynamic, visible, and relevant way.

3

Rise of authenticity

Trust automatically corresponds to authenticity in our minds. Irrespective of what business you are in and what you produce, authenticity and honesty are admirable values, and lead to building trust. This is visible globally with the rise of companies like (the aptly named) The Honest Company, which promises healthy home and baby products. Even in India, products which would earlier have played generically on taste and health are today abandoning those platforms and going out of their way to position themselves on contents and authentic ingredients.

It is almost as if they want to look the consumer in the eye, show what lies within, and ask the consumer for their trust. Raw Pressery makes a huge show of being about “The fruit… and nothing else.” Britannia insists on stressing that there is no maida (bleached flour) in its biscuits. Khadi (personal care) and FabIndia (handmade products) go to great lengths to demonstrate fair trade and ethical sourcing. The share of your wallet will come later. Through authenticity, these brands are first appealing for your respect and trust.

We all live today in a Brave New World. A world where people line up for hours to buy the next Apple product without even experiencing it. A world where a small startup can stand on the shoulders of its community and give giants a run for their money. A world where massive global brands can be torn down with the power of a video clip gone viral. This is a world that is arguably run on trust. Therefore, it is not enough today to push your product out there. Given the way media is exploding, exposure is easy. What is difficult is to get the consumer to trust you. And that trend is here to stay.

BE CONSISTENT In a world where technology is democratized and media exposure is increasingly easier, trust also comes from consistently performing year on year, product on product, in a stable way. That is why Indians will wait every year to see what OnePlus brings with its annual offering, because of a consistent history of launching excellent and affordable smartphones.

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OUR INSIGHTS

In today’s times, when consumers are being overloaded with advertisements and brand content on every platform imaginable, creating a unique identity in the consumer’s mind has become an even tougher task for the advertisers.

The use of sonic branding can help marketers address this problem. Sonic branding refers to the practice of identifying a brand with a specific music or other sound. It can include a sonic logo (SOGO), for example, like the tingling sound at the end of commercials for Britannica cookies, or the musical chord that identifies Intel.

The right use of music in the ads can lead to long-term recall of the brand and a greater association between the ad and the brand. In addition, music opens new avenues for brands to bring about integration in communication. The same SOGO can be used online, in physical stores, or as a part of the end-product itself (like in some gadgets).

Prachi Gupta Associate Research Manager, Mumbai

Kantar Millward Brown [email protected]

SENSORY CUES

SONIC BRANDING HELPS BREAK

THROUGH CLUTTER

The growth of seniors, or silvers, is a significant trend. And

going forward, brands will need marketing plans dedicated to

reaching these older citizens. They often have more spending power because their kids are

settled and they have fewer obligations. Brands in certain categories—such as travel, real estate, and health and wellness—may have the clearest

opportunity. But the opportunity is broader. We noticed that a lot of people, at age 45 to over 50, are purchasing premium motorcycles, a product

usually associated with youth. But for these people, starting another stage of their lives, a

premium motorcycle is a means of self-expression.

Arnab Bhowmik Vice President, FireflyKantar Millward [email protected]

SENIORSOLDER CONSUMERS REPRESENT GREAT

POTENTIAL FOR BRANDS

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Consumers are feeling more financial distress

as the economy slows a bit from the rapid growth

of a few years ago. But consumers are reluctant

to give up the new categories and products that are now a part of their lives. They don’t want to completely

lapse out of categories. Instead, they are maintaining their baskets by

buying smaller-size SKUs. The key insight for brands is that consumers

want to sustain new and unique experiences, so are increasingly

looking for brands to provide them with affordable and needed offerings.

Eveneet Singh Executive Vice President, ConsumerKantar [email protected]

SPENDINGCONSUMERS WANTNEW EXPERIENCESTHEY CAN AFFORD

Until a few years ago, there was a divide between local players and multinationals. Consumers viewed multinationals as offering superior products and service. They considered local brands as generally inferior. Today, local brands offer the same value or greater value than the multinationals. The other shift that happened is that the multinationals traditionally were from Western countries. Now there are multinationals from the East. But consumers don’t look for whether the product is made in China or in Korea. They are not so finicky about the origin of the brand. Consumers are more concerned about the value the brand offers them. The key for brands in India is not about focusing on provenance, but how well they wow consumers with quality, price, and service.

Aditya Kilpady Senior Vice President, Strategy Planning

Contract [email protected]

LOCAL BRANDS

CONSUMERS CHOOSE BRANDS FOR VALUE, NOT PROVENANCE

. . . A N D T H E S H A D O W S A R E D E E P E R .

H O R I Z O N S A R E W I D E R I N T O D AY ’ S I N D I A . . .

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THE VALUATION PROCESSStep 1: Calculating Financial Value

Part AWe start with the corporation. In some cases, a corporation owns only one brand. All Corporate Earnings come from that brand. In other cases, a corporation owns many brands. And we need to apportion the earnings of the corporation across a portfolio of brands.

To make sure we attribute the correct portion of Corporate Earnings to each brand, we analyze financial information from annual reports and other sources, such as Kantar Retail and Kantar Worldpanel. This analysis yields a metric we call the Attribution Rate.We multiply Corporate Earnings by the Attribution Rate to arrive at Branded Earnings, the amount of Corporate Earnings attributed to a particular brand. If the Attribution Rate of a brand is 50 percent, for example, then half the Corporate Earnings are identified as coming from that brand.

Part BWhat happened in the past—or even what’s happening today—is less important than prospects for future earnings. Predicting future earnings requires adding another component to our BrandZ™ formula. This component assesses future earnings prospects as a multiple of current earnings. We call this component the Brand Multiple. It’s similar to the calculation used by

financial analysts to determine the market value of stocks (Example: 6X earnings or 12X earnings). Information supplied by Bloomberg data helps us calculate a Brand Multiple. We take the Branded Earnings and multiply that number by the Brand Multiple to arrive at what we call Financial Value.

Step 2: Calculating Brand Contribution

So now we have got from the total value of the corporation to the part that is the branded value of the business. But this branded business value is still not quite the core that we are after. To arrive at Brand Value, we need to peel away a few more layers, such as the in-market and logistical factors that influence the value of the branded business, for example: price, availability and distribution.

What we are after is the value of the intangible asset of the brand itself that exists in the minds of consumers. That means we have to assess the ability of brand associations in consumers’ minds to deliver sales by predisposing consumers to choose the brand or pay more for it.

We focus on the three aspects of brands that we know make people buy more and pay more for brands: being Meaningful (a combination of emotional and rational affinity), being Different (or at least feeling that way to consumers), and being Salient (coming to mind

quickly and easily as the answer when people are making category purchases).

We identify the purchase volume and any extra price premium delivered by these brand associations. We call this unique role played by brand, Brand Contribution.

Here’s what makes BrandZ™ so unique and important. BrandZ™ is the only brand valuation methodology that obtains the customer viewpoint by conducting worldwide on-going, in-depth quantitative consumer research, online and face-to-face, building up a global picture of brands on a category-by-category and market-by-market basis. Our research now covers 3.2 million consumers and more than 100,000 different brands in over 50 markets since we first introduced BrandZ™ in 1998.

Step 3: Calculating Brand Value

Now we take the Financial Value and multiply it by Brand Contribution, which is expressed as a percentage of Financial Value. The result is Brand Value. Brand Value is the dollar amount a brand contributes to the overall value of a corporation. Isolating and measuring this intangible asset reveals an additional source of shareholder value that otherwise would not exist.

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BRANDZ™ BRAND VALUATION METHODOLOGY

INTRODUCTIONThe brands that appear in this report

are the most valuable in India. They

were selected for inclusion in the

BrandZ™ Top 50 Most Valuable Indian

Brands 2017 based on the unique and

objective BrandZ™ brand valuation

methodology that combines extensive

and on-going consumer insights with

rigorous financial analysis.

The BrandZ™ valuation methodology can be uniquely distinguished from its competitors by the way we use consumer viewpoints to assess brand equity, as we strongly believe that how consumers perceive and feel about a brand determines its success and failure. We conduct worldwide, on-going, in-depth quantitative consumer research, and build up a global picture of brands on a category-by-category and market-by-market basis.

Globally, our research covers 3.2 million consumers and more than 100,000 different brands in over 50 markets. This intensive, in-market consumer research differentiates the BrandZ™ methodology from competitors that rely only on a panel of “experts,” or purely on financial and market desktop research.

Before reviewing the details of this methodology, consider these three fundamental questions: why is brand important; why is brand valuation important; and what makes BrandZ™ the definitive brand valuation tool?

Importance of brand

Brands embody a core promise of values and benefits consistently delivered. Brands provide clarity and guidance for choices made by companies, consumers, investors and others stakeholders. Brands provide the signposts we need to navigate the consumer and B2B landscapes.At the heart of a brand’s value is its ability to appeal to relevant customers and potential customers. BrandZ™ uniquely measures this appeal and validates it against actual sales performance. Brands that succeed in creating the greatest attraction power are those that are:

Meaningful In any category, these brands appeal more, generate greater “love” and meet the individual’s expectations and needs.

DifferentThese brands are unique in a positive way and “set the trends”, staying ahead of the curve for the benefit of the consumer.

SalientThey come spontaneously to mind as the brand of choice for key needs.

Importance of brand valuation

Brand valuation is a metric that quantifies the worth of these powerful but intangible corporate assets. It enables brand owners, the investment community and others to evaluate and compare brands and make faster and better-informed decisions.

Brand valuation also enables marketing professionals to quantify their achievements in driving business growth with brands, and to celebrate these achievements in the boardroom.

Distinction of BrandZ™

BrandZ™ is the only brand valuation tool that peels away all of the financial and other components of brand value and gets to the core—how much brand alone contributes to corporate value. This core, what we call Brand Contribution, differentiates BrandZ™.

ELIGIBILITY CRITERIA

The brands included in the BrandZ™ Top 50 Most Valuable Indian Brands meet these two eligibility criteria:

Brands are owned by an

enterprise listed on a stock

exchange in India; and

Bank brands derive at least 25

percent of their earnings from

retail business.

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What’s the BrandZ™ benefit?

The BrandZ™ methodology produces important benefits for two broad audiences.

• Members of the financial community—including analysts, shareholders, investors and C-suite—depend on BrandZ™ for the most reliable and accurate brand value information available.

• Brand owners turn to BrandZ™

to more deeply understand the causal links between brand strength, sales and profits and to translate those insights into strategies for building brand equity. Since we have been using the same framework to measure these insights, this enables historical and cross-category comparisons.

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BRANDZ™ BRAND VALUATION METHODOLOGY

WHY BRANDZ™ IS THE DEFINITIVE BRAND VALUATION METHODOLOGYAll brand valuation methodologies

are similar—up to a point.

All methodologies use financial

research and sophisticated

mathematical formulas to calculate

current and future earnings that

can be attributed directly to a brand

rather than to the corporation. This

exercise produces an important but

incomplete picture.

What’s missing? The picture of the

brand at this point lacks input from

the people whose opinions are

most important: the consumer. This

is where the BrandZ™ methodology

and the methodologies of our

competitors part company.

How does the competition determine the consumer view?

Interbrand derives the consumer point of view from different sources like primary research and panels of experts who contribute their opinions. The Brand Finance methodology employees a complicated accounting method called Royalty Relief Valuation.

Why is the BrandZ™ methodology superior?

BrandZ™ goes much further and is more relevant. Once we have the important, but partial, financial picture of the brand, we communicate with consumers, people who are actually paying for brands every day, constantly. Our on-going, in-depth quantitative research includes 3.2 million consumers and more than 100,000 brands in over 50 markets worldwide. We have been using the same framework to evaluate consumer insights since we first introduced the BrandZ™ brand building platform in 1998, which allows historical understanding of the change in brand equity.

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THE POWER AND POTENTIAL OF THE CHINESE DREAM“The Power and Potential of the Chinese Dream” is rich with knowledge and insight, and forms part of a growing library of WPP reports about China. It explores the meaning and significance of the “Chinese Dream” for Chinese consumers as well as its potential impact on brands.

brandz.com/article/chinese-dream-report

UNMASKING THE INDIVIDUAL CHINESE INVESTORThis exclusive new report provides the first detailed examination of Chinese investors, what they think about risk, reward and the brands they buy and sell. This will help brand owners worldwide understand market dynamics and help build sustainable value.

brandz.com/article/unmasking-the-individual-chinese-investor-report

THE CHINESE NEW YEAR IN NEXT GROWTH CITIESThe report explores how Chinese families celebrate this ancient festival and describes how the holiday unlocks year-round opportunities for brands and retailers, especially in China’s lower tier cities.

brandz.com/article/chinese-new-year-report

For the iPad magazine, search Golden Weeks on iTunes.

THE CHINESE GOLDEN WEEKS IN FAST GROWTH CITIESUsing research and case studies, the report examines the shopping attitudes and habits of China’s rising middle class and explores opportunities for brands in many categories.

brandz.com/article/chinese-golden-weeks-report

For the iPad magazine, search Golden Weeks on iTunes.

8 RETAIL TRENDS IN CHINA FOR THE YEAR OF THE ROOSTER With the continued rebalancing of the Chinese economy, 2017—The Year of the Rooster, could be characterised as another year of change for China. The retail sector is at the intersection of much of this transformation, and with the rapid growth of e-commerce, Chinese retail is changing and adapting fast.

brandz.com/article/china-retail-trends-report-2017

BRANDZ™ TOP 30 CHINESE GLOBAL BRAND BUILDERS 2017This groundbreaking study aims its radar at the edge of the Chinese brand universe, exploring developed country markets where only a few Chinese brands have dared to go—so far.

brandz.com/article/just-launched-brandz--chinese-global-brand-builders-download-the-full-report-now

THE BRANDZ™ CHINA INSIGHTS REPORTS

The opportunity to build brands in China is greater than ever. But so are the challenges.

The fastest growth is happening deep in the country, in less well-known cities and towns. Consumers are more sophisticated and expect brands to deliver high-quality products and services that show real understanding of local market needs.

WPP has been in China for over 40 years. We know the Chinese market in all its diversity and complexity. This experience has gone into our series of BrandZ™ China reports. They will help you avoid mistakes and benefit from the examples of successful brand builders.

IN-DEPTH BRAND-BUILDING INTELLIGENCE ABOUT TODAY’S CHINA

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REPORTS AND APPS AND POWERED BY BRANDZ™

GOING GLOBAL?BrandZ™ country reports: Essential travel guides for global brand building

Our BrandZ™ country reports contain unparalleled market knowledge, insights, and thought leadership about the world’s most exciting markets. You’ll find, in one place, the wisdom of WPP brand building experts from all regions, plus the unique consumer insights derived from our proprietary BrandZ™ database.

If you’re planning to expand internationally, BrandZ™ country reports are as essential as a passport.

WE WROTE THE BOOK

BRANDZ™ TOP 100 MOST VALUABLE GLOBAL BRANDS 2017This is the definitive global brand valuation study, analyzing key trends driving the world’s largest brands, exclusive industry insights, thought leadership, B2B trends and a look at Emerging Brands.

brandz.com/region/global

BRANDZ™ TOP 100 MOST VALUABLE CHINESE BRANDS 2017The report profiles Chinese brands, outlines major trends driving brand growth and includes commentary on the growing influence of Chinese brands at home and abroad.

brandz.com/report/china/2017

BRANDZ™ TOP 50 MOST VALUABLE INDONESIAN BRANDS 2017Now in its third year, this study analyzes the success of Indonesian brands, examining the dynamics shaping this fast-developing market, and offering insights for building valuable brands.

brandz.com/report/indonesian/2017

BRANDZ™ TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2017The report profiles the most valuable brands of Argentina, Brazil, Chile, Colombia, Mexico and Peru and explores the socio-economic context for brand growth in the region.

brandz.com/report/latin-america/2017

BRANDZ™ TOP 20 MOST VALUABLE SAUDI ARABIAN BRANDS 2017As Saudi embarks on an ambitious program of transformation, this ranking explores the country’s most accomplished brands, analyzes their success and identifies the key forces that are driving growth in this market.

brandz.com/report/saudi-arabia/2017

BRANDZ™ SPOTLIGHT ON CUBACuba is a market unparalleled both in the Caribbean region and the world. Brand awareness among Cubans is high, but gaining access to them uniquely challenging. Now is the time to plan your Cuba strategy.

brandz.com/article/spotlight-on-cuba

BRANDZ™ SPOTLIGHT ON MYANMARThe story of Myanmar is one of huge potential, as a new era of openness signals strong growth opportunity. Now is the time for brands to make an impression in this emergent economy.

brandz.com/article/spotlight-on-myanmar-report

BRANDZ™ SPOTLIGHT ON MONGOLIAMongolia’s GDP has grown at rates as high as 17 percent in recent years, encouraging a growing number of international brands to gravitate toward this fast-growth market and make a beeline for one of Asia’s hidden gems.

brandz.com/article/spotlight-on-mongolia-report

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SocialZ is the new social media data visualization product from BrandZ™ that enables you to easily track, visualize, and present a real-time view of the social landscape surrounding any brand.

Only available via your WPP Agency

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REPORTS AND APPS AND POWERED BY BRANDZ™

BRANDZ™ BRAND BUILDING TOOLS

TRUSTR Engaging Consumers in the Post-Recession World

Trust is no longer enough. Strong brands inspire both Trust (belief in a brand’s promise developed over time) and Recommendation (current confirmation of that promise). This combination of Trust and Recommendation results in a new metric called TrustR.

www.wpp.com/wpp/marketing/brandz/trustr

REPZMaximiZing Brand and Corporate Integrity

Major brands are especially vulnerable to unforeseen events that can quickly threaten the equity cultivated over a long period of time. But those brands with a better reputation are much more resilient. Four key factors drive Reputation: Success, Fairness, Responsibility and Trust. Find out how your brand performs.

CHARACTERZBrand personality analysis deepens brand understanding

Need an interesting and stimulating way to engage with your clients? Want to impress them with your understanding of their brand? A new and improved CharacterZ can help! It is a fun visual analysis, underpinned by the power of BrandZ™, which allows detailed understanding of your brand’s personality.

wppbaz.com/wpp-resources-and-companies

INNOVATIONZDiscover InnovationZ, a dynamic new tool from BrandZ™

Discover innovation ideas from around the world, personalized to your client’s category.

wppbaz.com/wpp-resources-and-companies

WEBZYour web traffic story for your brand

WebZ helps you understand your brand’s digital journey! Through analyzing how traffic is driven to your brand’s website, it will help you understand your audience demographics and gain insights into viewer trends.

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GROUPMGroupM is the leading global media investment management company serving as the parent to WPP media agencies including Mindshare, MEC, MediaCom Maxus, Essence and Motivator in India, as well as the programmatic digital media platform, Xaxis, each global operations in their own right, with leading market positions. GroupM’s primary purpose is to maximize the performance of WPP’s media agencies by operating as leader and collaborator in trading, content creation, sports, digital, finance, and proprietary tool development. GroupM’s focus is to deliver unrivaled marketplace advantage to its clients, stakeholders and people, and is increasingly working closely for the benefit of clients with WPP’s data investment management group, Kantar. Together GroupM and Kantar account for over 50% of WPP’s group revenues of more than $20 billion.

www.groupm.com

CVL Srinivas CEO South Asia [email protected]

J. WALTER THOMPSONJ. Walter Thompson Worldwide, the world’s best-known marketing communications brand, has been creating pioneering solutions that build enduring brands and business for more than 150 years. Headquartered in New York, J. Walter Thompson is a true global network with more than 200 offices in over 90 countries, employing nearly 10,000 marketing professionals. The agency consistently ranks among the top networks in the world and continues a dominant presence in the industry by staying on the leading edge—from hiring the industry’s first female copywriter to developing award-winning branded content today. For more information, follow us @JWT_Worldwide


Tarun Rai CEO South Asia [email protected]

KANTARKantar is one of the world’s leading data, insight and consultancy companies. Working together across the whole spectrum of research and consulting disciplines, its specialist brands, employing 30,000 people, provide inspirational insights and business strategies for clients in 100 countries. Kantar is part of WPP and its services are employed by over half of the Fortune Top 500 companies.

www.kantar.com

Preeti ReddyCEO, South Asia [email protected]

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WPP COMPANY CONTRIBUTORS

BAV CONSULTINGY&R’s BAV Group is a global strategic consultancy with expertise in corporate, brand and marketing strategies and customer insights. Using BrandAsset® Valuator, a proprietary brand management tool and global database of consumer perceptions of brands, BAV informs strategic and creative development for clients and drives results in consideration, usage, sales and shareholder value. Over 24 years, BAV has captured data and insights from more than 1 million consumers across 50,000 brands in 52 countries around the world, evaluating 72 brand image and equity dimensions that matter. Y&R’s BAV Group also produces the Best Countries report, an annual ranking and data analysis of 80 countries around the world, in partnership with US News and World Report and The Wharton School.

www.bavconsulting.com

Anna Blender Senior Vice [email protected]

CONTRACTSetting a scorching pace since its inception in 1986, Contract Advertising in the last 30 years has built a reputation for igniting the flames of passion that have created trailblazing brands across industries. A passion for insights, an obsession with out-of-the-box ideas, strategic thinking that breaks the traditional mould, a fanatical pursuit of creativity and a commitment to driving business results; these resolves sum up the Contract difference and have made us India’s firebrand agency. Besides mass media advertising, Contract offers truly integrated marketing and communication solutions through its specialist divisions namely iContract (Digital), Designsutra

(Design) and Core (Consulting).


Raji RamaswamyCEO Raji.Ramaswamy@ contractindia.co.in

THESE COMPANIES CONTRIBUTED KNOWLEDGE, EXPERTISE, AND PERSPECTIVE TO THE REPORT

GENESIS BURSON-MARSTELLER Genesis Burson-Marsteller has mirrored India’s public relations and public affairs journey and we have now embarked on our 25th year of pushing the boundaries of communications with imagination, creativity and agility to Be More—for our clients, teams, industry and community.

A leading public relations and public affairs firm, we deliver integrated communications services to some of the best global and Indian companies. We create real measurable impact on client businesses through evidence-based, ideas-driven and result-oriented campaigns. Our network spans offices in six Indian metros and affiliate footprint in 200+ cities across India, Sri Lanka, Bangladesh, Nepal, Bhutan and Myanmar.

www.genesisbm.in

Deepshikha Dharmaraj Chief Marketing and Growth Officer [email protected]

EVEREST BRAND SOLUTIONS Over seven decades of cutting edge work and award winning campaigns makes Everest Brand Solutions a place that offers a unique blend of creative talent and marketing expertise. A lean agency where seasoned professionals from marketing, advertising, research, design and interactive backgrounds come together to build strong client relationships and deliver the best counsel. Everest’s unparalleled experience and unrivalled brand building practice helps them partner their clients in building category leadership.

They have been proud partners to Parle Products, Sony Entertainment Television – SAB TV, Tata Housing, Aditya Birla Group Retail – More, Pantaloons Fashion Retail, DS Group Catch Spices and Salt, Ranbaxy Volini and CNN-IBN.

www.ineverest.com

Dhunji WadiaPresident, [email protected]

GREYGREY ranks among the world’s top advertising and marketing organizations, operating in 96 countries serving one-fifth of the FORTUNE 500. Its parent company is WPP. Under the banner of “GREY Famously Effective Since 1917,” the agency serves a blue-chip client roster of many of the world’s best known companies: Procter & Gamble, GlaxoSmithKline, Volvo, Britannia, ITC, Ferrero, Lactalis, Dell, and Adobe to name a few. GREY was recently named Adweek’s “Global Agency of the Year” and Ad Age’s “Agency of the Year.”

grey.com/india

Sunil LullaChairman & Managing Director [email protected]

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MIRUMMirum India, is a leading digital media agency. Formerly known as Social Wavelength, Mirum offers complete 360 degree digital media communication services including digital strategy planning, content creation, platform management, digital media planning and buying, UX-UI solutions, building of websites and apps, enterprise CMS solutions using AEM, social listening and marketing automation. We are a team of 150+, with offices in Mumbai, Delhi, Chennai, Hyderabad and Bangalore. We work with more than 50+ brands . Mirum is also a Salesforce Marketing Cloud Partner for India. Mirum is a part of J. Walter Thomson and WPP.

www.mirumagency.com

Hareesh Tibrewala Joint CEO [email protected]

Sanjay Mehta Joint CEO [email protected]

OGILVY & MATHEROgilvy & Mather is the largest marketing communications agency in India, and one of the largest in the world. It was named the Cannes Lions Network of the Year for five consecutive years, 2012, 2013, 2014, 2015 and 2016; and the EFFIEs World’s Most Effective Agency Network in 2012, 2013 and 2016. The company has industry leading expertise in Branding and Advertising; Digital and Innovation; Influence and PR; Customer Engagement and Commerce; Consulting; Data and Analytics; Health and Wellness.

www.ogilvy.com

Kunal Jeswani CEO, India [email protected]

REDIFFUSION Y&RRediffusion Y&R - one of India’s largest agencies is part of the Young & Rubicam network, a globally leading creative company with 187 offices and 6,500 employees in 91 countries globally. While remaining faithful to its founding vision it has evolved from a creative hot-shop into a truly integrated communications company. Together with its specialized group of companies, which includes Rediffusion-Wunderman, Everest Brand Solutions, Sudler & Hennessey, Rediffusion-TSS and Rediffusion- Edelman, the Group offers its clients comprehensive, 360-degree solutions.

Rediffusion Y&R‘s clientele includes some of the biggest brands in India such as Tata Motors, ITC, Eveready, Exide and many more.

rediffusionyr.com

Navonil ChatterjeeChief Strategy Officer Navonil.Chatterjee@ rediffusionyr.com

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WPP COMPANY CONTRIBUTORS

KANTAR MILLWARD BROWNKantar Millward Brown is a leading global research agency specialising in advertising effectiveness, strategic communication, media and brand equity research. Kantar Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions, embracing the latest technologies and leveraging them to develop new products and services to help marketers compete and win today and in the future. Part of Kantar, WPP’s data investment management division, Kantar Millward Brown operates in more than 55 countries.

millwardbrown.com

Vishikh Talwar Head - South [email protected]

KANTAR TNSKantar TNS is one of the world’s largest research agencies with experts in over 90 countries. With expertise in innovation, brand and communication, shopper activation and customer relationships we help our clients identify, optimise and activate the moments that matter to drive growth for their business.

We are part of Kantar, one of the world’s leading data, insight and consultancy companies.

www.tnsglobal.com

Chhavi Bhargava Managing Director [email protected]

THESE COMPANIES CONTRIBUTED KNOWLEDGE, EXPERTISE, AND PERSPECTIVE TO THE REPORT

LANDORLandor creates some of the world’s strongest and most agile brands—brands that thrive on change. As new audiences and new technology generate new demands, disruption has become the norm and the pace of change is accelerating every day. Agile brands seize these opportunities to sharpen their strategies and transform their markets. Walter Landor wrote the book on branding, and he did it from the deck of a ferryboat named the Klamath. Like our clients, he found opportunity where others saw adversity. From Barclays to BMW and Tide to Taj, Landor helps brands stand out and stand for something—while never standing still.

www.landor.com

Lulu Raghavan Managing Director [email protected]

MADHOUSEMadhouse India was established in 2012, in collaboration with Madhouse China and WPP. In the last 5 years Madhouse India has grown to become the leading ‘Data Driven Mobile Marketing Solutions Company’ in South Asia. Madhouse’s mission is to ‘Make Brands Love Mobile’, Madhouse is actively evangelizing the journey of ‘Mobile First to Mobile Most’ among brands and advertisers in India. Madhouse India has been a pioneer by introducing many ‘firsts’ in terms of mobile marketing innovations in India that has helped brands and advertisers tap the right audience and establish a greater connect with their consumers.

www.madhouse.cn

Milind PathakChief Operating Officer [email protected]

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KANTAR IMRBKantar IMRB is a pioneer of market research services in Asia. With over 40 years of expertise in emerging markets Kantar IMRB builds customised solutions to create powerful growth paths for its clients. Kantar IMRB offers unparalleled depth and width of services across sectors & categories. The company also has rich data assets in its large array of syndicated studies and data alliance partnerships. With its multidisciplinary and multi- cultural workforce, Kantar IMRB is at the cutting edge of market research and consulting services. It operates in 49 offices and 67 countries across the world.

www.imrbint.com

Preeti ReddyPresident & CEO [email protected]

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WPP is the world’s largest

communications services group with

billings of US$74 billion and revenues of

over US$19 billion. Through its operating

companies, the Group provides a

comprehensive range of advertising and

marketing services including advertising

& media investment management; data

investment management; public relations

& public affairs; branding & identity;

healthcare communications; digital,

eCommerce and shopper marketing and

specialist communications. The company

employs over 205,000 people (including

associates and investments) in over 3,000

offices across 112 countries.

WPP was named Holding Company

of the Year at the 2017 Cannes Lions

International Festival of Creativity for the

seventh year running. WPP was also

named, for the sixth consecutive year, the

World’s Most Effective Holding Company

in the 2017 Effie Effectiveness Index, which

recognizes the effectiveness of marketing

communications. In 2017 WPP was

recognised by Warc 100 as the World’s

Top Holding Company (third year running).

For more information, visit www.wpp.com.

IN INDIAWe help build valuable brands

Our WPP companies have been engaged in India for more than 85 years. Today, 15,000 people including associates work in offices across India, in Mumbai, Delhi, Bangalore, Chennai, Kolkata, Hyderabad and many other cities. Collectively, WPP companies in India generate revenues of US$600 million.

They provide advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing and specialist communications necessary to understand India and for building and sustaining brand value.

Ranjan KapurWPP Country Manager, [email protected]

Juliana YehHead of Corporate Communications, WPP Asia [email protected]

For further information about WPP companies worldwide, please visit: www.wpp.com/wpp/companies

or contact:

David RothCEO The Store, WPP EMEA and [email protected]

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HEMANT MEHTAKantar IMRB

AMANDA MENDESGrey Group

PARU MINOCHA Kantar IMRB

SONYA MISQUITTAGrey Group

PURVI MISTRYJ. Walter Thompson

RONITA MUKERJEELandor

KARTHIK NAGARAJANGroupM

KSHAMA PAI Kantar Millward Brown

SAMPA PAL Kantar Millward Brown

PRATIBHA PANDEKantar Millward Brown

MILIND PATHAKMadhouse

RAHUL RASTOGIKantar TNS

TANYA SARAN Kantar Millward Brown

SUNIL SHETTYContract

PARNIKA SHRIMALIKantar Millward Brown

ADITYA KILPADYContract

DIA KIRPALANIContract

RATHINA KUMAR Kantar IMRB

SIDDHANT LAHIRIRediffusion Y&R

SANJANA MATHURLandor

EVENEET SINGHKantar IMRB

SHALINI SINHAKantar Millward Brown

MARIANA SUN BAV Consulting

AMARJEET THAKUR Mirum

HAREESH TIBREWALAMirum

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WPP COMPANY BRAND BUILDING EXPERTS

THESE INDIVIDUALS FROM WPP COMPANIES PROVIDED ADDITIONAL THOUGHT LEADERSHIP, RESEARCH, ANALYSIS AND INSIGHT TO THE REPORT

MAHIMA AGGARWALKantar Millward Brown

ANVAR ALIKHANJ. Walter Thompson

SUSHMITA BALASUBRAMANIAM Kantar IMR

CHHAVI BHARGAVAKantar TNS

BISWAPRIYA BHATTACHARJEEKantar IMRB

ARNAB BHOWMIKKantar Millward Brown

ANNA BLENDERY&R

PARUL BUDHIRAJA Contract

AMBARISH CHATTERJEEKantar TNS

NAVONIL CHATTERJEERediffusion Y&R

AMITESH CHAUHANKantar Millward Brown

DEEPSHIKHA DHARMARAJGenesis Burson-Marsteller

SANDEEP DUTTA Kantar TNS

AAKRITI GOELOgilvy & Mather

PRACHI GUPTAKantar Millward Brown

GAYATRI HAMANDKantar Millward Brown

SHRADHA JADHAVKantar Millward Brown

VARUN JAIN Kantar Millward Brown

SHAZIYA KHANJ. Walter Thompson

DIVYA KHANNAJ. Walter Thompson

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NIMAI SWAINNimai Swain is Executive Vice President with Kantar Millward Brown. He manages BrandZ™ research and analysis in India. He is a seasoned market researcher with over 22 years of experience and comprehensive exposure in brand, communication and stakeholder loyalty research.

RAAM TARATRaam Tarat is the Global Project Manager for BrandZ™, at Kantar Millward Brown. He project managed the production of the BrandZ™ Top 50 Most Valuable Indian Brands 2017 report, as well as marketing communications for other BrandZ™ projects.

AMANJIT SINGHAmanjit is based in Mumbai and is the country lead for BrandZ™ India. Apart from managing BrandZ, he is also a client lead for the Firefly- Millward Brown’s qualitative business which he helped set up in 2010.

VIKRANT SHARMAVikrant Sharma is an Account Director at Kantar Millward Brown. He is responsible for analysis of BrandZ data to mine and collate meaningful insights.

IGOR TOLKACHEVIgor Tolkachev is a part of The Store WPP’s EMEA and Asia team and coordinates BrandZ™ worldwide projects and partnerships.

PETER WALSHEPeter Walshe is Global Strategy Director of BrandZ™ and was involved in the creation of this brand equity and insight tool 19 years ago, and has contributed to all the valuation studies and developed BrandZ™ metrics, including CharacterZ, TrustR, and RepZ.

VISHIKH TALWARVishikh Talwar is the Managing Director of Kantar Millward Brown South Asia region. He is part of the core WPP BrandZ™ Committee and is closely involved with launch of BrandZ™ India rankings.

DOREEN WANGDoreen Wang is the Global Head of BrandZ™ at Kantar Millward Brown, and a seasoned executive with over 17 years experience in providing outstanding market research and strategic consulting for senior executives in Fortune 500 companies in both the US and China.

With special thanks and appreciation to: Ranjan Kapur, Richard Ballard, Anna Blender, Sarah Cousins, Tuhin Dasgupta, Katherine Dickinson, Jessika Duggal, Kimberley Jane Fitzsimmons, India Hovenden, Nikhil Mall, Anthony Marris, Paul Reiffer and Vinay Sharma.

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BRANDZ™ INDIA TOP 50 TEAM

THESE INDIVIDUALS CREATED THE REPORT, PROVIDING VALUATIONS, RESEARCH, ANALYSIS AND INSIGHT, EDITORIAL, PHOTOGRAPHY, COMMUNICATIONS AND PROJECT MANAGEMENT

NIKHIL BANGANikhil Banga is a BrandZ™ Valuation Manager for Kantar Millward Brown. He manages the brand valuation projects for various countries for BrandZ™.

ELSPETH CHEUNGElspeth Cheung is the Global BrandZ™ Valuation Director for Kantar Millward Brown. She is responsible for valuation, analysis, client management and external communication for the BrandZ™ rankings and other ad hoc brand valuation projects.

LUCY EDGARLucy Edgar is the Global Marketing Manager at Kantar Millward Brown where she is responsible for the PR, marketing and communications on the BrandZ™ projects.

ASHISH KARNADAshish Karnad heads the Media and Digital practice of Kantar Millward Brown in South Asia. He is part of the core WPP BrandZ™ Committee for India, and oversees the BrandZ™ India event. He has spent 20 years with Kantar in India in the Media and Digital space.

CECILIE ØSTERGRENCecilie Østergren is a professional photographer based in Denmark, and she has traveled extensively in China, Brazil and other locations to photograph images for the BrandZ™ reports.

PREETI REDDYPreeti Reddy is the CEO of Kantar Insights, South Asia. She is part of the core WPP BrandZ™ Committee and provides guidance and thought leadership to the overall BrandZ™ India effort.

DAVID ROTHDavid Roth is the CEO of the Store WPP for Europe, the Middle East, Africa and Asia, and leads the BrandZ™ worldwide project. He is also Chairman of the BAV Group. Prior to joining WPP David was main Board Director of the international retailer, B&Q.

KEN SCHEPTKen Schept is a professional writer and editor specializing in reports and books about brands and marketing. He helped develop WPP’s extensive library of global publications and has reported on the international retail sector as an editor with a leading US business media publisher.

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If you are interested in brands, you need this app to get valuation data and a lot more at your fingertips. It enables you to:

• View the latest BrandZ™ valuation ranking from across the world

• Obtain the latest real-time brand news

• Create your own ranking tables and sort by value and brand

• Create interactive graphs for the brands you want to compare

• Share articles and data across social media

• View individual brand profiles and videos

• Access unique content and insights on and offline

• View on any Android or Apple device

Free and available from www.BrandZ.com/mobile

Or the Apple and Android app stores: just search for BrandZ100.

MOBILEGET THE FREE APP

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The brand valuations in the BrandZ™ Top 50 Most Valuable Indian Brands 2017 are produced by Kantar Millward Brown using market data from Kantar Worldpanel, and Bloomberg.

The consumer viewpoint is derived from the BrandZ™ database. Established in 1998 and constantly updated, this database of brand analytics and equity is the world’s largest, containing over three million consumer interviews about more than 100,000 different brands in over 50 markets.

For further information about BrandZ™ contact any WPP Group company or:

DOREEN WANG

Global Head of BrandZ™Kantar Millward Brown+1 212 548 [email protected]

ELSPETH CHEUNG

Global BrandZ™ Valuation DirectorKantar Millward Brown+44 (0) 207 126 [email protected]

MARTIN GUERRIERIA

Global BrandZ™ Research DirectorKantar Millward Brown+44 (0) 207 126 [email protected]

BRANDZ™ VALUATIONS CONTACT DETAILS

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BLOOMBERG

The Bloomberg Professional service is the source of real-time and historical financial news and information for central banks, investment institutions, commercial banks, government offices and agencies, law firms, corporations and news organizations in over 150 countries. (For more information, please visit www.bloomberg.com).

Writing Ken ScheptPhotography Cecilie Østergren

www.brandz.com

Documents

BRAND VALUATION SERIES - MRF Tyres