MxMIndia

Tag: Vishikh Talwar

  • WPP group’s Kantar releases the sixth editon of Most Valuable Indian Brands

    HDFC stays as #1 in BrandZ ranking

     

    The BrandZ study, which is the only brand valuation ranking to combine companies’ financial data with consumer insight and opinion, shows that trust is key to develop the stability required for long-term success; highly trusted brands in the Top 75 are worth 129% more than less trusted ones.

     

    BrandZ Top 10 Most Valuable Indian Brands 2019

    Rank 2019 Brand Category Brand Value 2019 ($M USD) Brand Value Change
    1 HDFC Bank Banks 22,705 +5%
    2 LIC Insurance 20,134 +2%
    3

    Tata Consultancy Services

    		 Technology 18,161 +21%
    4 Airtel Telecom providers 10,286 -10%
    5 State Bank of India Banks 8,408 +7%
    6 Kotak Mahindra Bank Banks 7,637 +15%
    7 Asian Paints Paints 6,988 +14%
    8 Maruti Suzuki Automobiles 5,934 -14%
    9 Jio Telecom providers 5,472 +34%
    10 ICICI Bank Banks 5,403 +11%

     

    Notable brands include ecommerce site Flipkart (No. 12), which increased its brand value 14% to $4.7 billion, while unicorn brands hotel booking site Oyo ($2.0 billion), online food ordering service Swiggy ($1.6 billion) and online restaurant marketplace Zomato ($1.0 billion) are newcomers to the ranking at No. 30, No. 39 and No. 61 respectively.

     

    The fastest riser in the 2019 ranking is telecom provider, Jio, which climbed one place to No. 9 with a 34% increase in brand value to $5.5 billion. Its disruptive business model has made internet access available to many Indians who were previously unable to afford it, thereby opening up access to digital platforms and services. Vodafone ($2.5 billion) meanwhile was the top-ranked newcomer at No. 24.

     

    Both digital and offline brands such as D-Mart (No. 25, $2.4 billion) have found success as a result of the rise of ‘middle India’; the growing number of people in the country’s second, third and fourth-tier cities and towns that are changing India’s traditional urban-rural divide.  These previously poorly-served segments increasingly have access to a variety of online services, with Swiggy and Zomato building much of their growth on this shift.

     

    Said David Roth, CEO of The Store WPP EMEA and Asia and Chairman of BrandZ: “As India flexes its muscles on the world stage, it faces increased macroeconomic headwinds which have combined with a rise in global trade tensions to create a challenging environment.  Successful Indian brands are adapting to these challenges and recognising that longevity requires them to do more than just disrupt the status quo; long-term brand building requires new strategies that major on stability.”

     

    Added Preeti Reddy, CEO South Asia, Insights Division, Kantar: “Consumer trust is a common thread among successful brands. However, it is concerning that only a few have succeeded in growing trust over the last five years. Those who done so, have done it through open and honest conversations with their customers. Brands would do well to consciously work at building consumer trust – it is the shield that gives a brand the resilience to face headwinds in uncertain times.”

     

    Said Vishikh Talwar, Chief Client Officer, Kantar Insights Division: “The rise of ‘middle India’ combined with rapid growth of the mobile internet is providing unprecedented opportunities for brands.  But, with an almost overwhelming choice of products and services to buy, consumers are increasingly discerning; the Indian psyche requires that brands cater for local needs with offerings that genuinely improve daily life. Today that’s as much about providing comfort and reliability as it is about generating new experiences.”

     

     

    Key trends highlighted in the BrandZ Indian Top 75 study include:

    :: Mobile internet access:Smartphone user numbers in India increased by 18% in 2018 (the fastest rate of growth in the world), mainly due to a combination of Jio’s own low tariffs and the renewed competition causing other telecom providers to reduce their rates.

     

    :: Buying power:Retail is the second fastest growing category, with online and offline both growing strongly. New entrant Reliance Retail (No. 55, $1.1 billion) opened  nearly 500 new stores and used Jio’s service to connect retail shops with grocery deliveries, while D-Mart ($2.4 billion) focused predominantly on offline, rising two places to No. 25.

     

    :: The Amazon effect: Amazon and Flipkart compete with many Indian brands across several sectors, with Amazon also opening its largest campus yet in India.  This has increased competition and driven brands to step up their operations to ensure they are meeting customers’ needs.

     

    :: A confident country: The success of unicorn brands such as Swiggy, Zomato and Oyo is fostering a new-found confidence in India. This is augmented with the increasingly global outlook of these new brands as they actively seek to expand their operations outside India.

     

  • Marketers in India are missing potential opportunities to reach out to men in the categories where both genders are equal decision-makers, notes Kantar’s AdReaction report

    Kantar’s report delves into gender targeting in advertising

    By A Correspondent

     

    Marketers are reinforcing rather than helping to eradicate harmful gender-based stereotypes. That’s according to the latest AdReaction report released by Kantar, which reveals the disconnect between consumer and business opinions of gender portrayals in advertising. While the clear majority of marketers globally think they are avoiding gender stereotypes, 76 per cent of female consumers and 71 per cent of male consumers believe that the way they’re portrayed in advertising is completely out of touch.

     

    The latest AdReaction report from Kantar includes analysis on advertising creativity and media effectiveness both globally and in India. This is based on a comprehensive analysis of how women and men are portrayed in ads, and how they respond differently to marketing. The report aims to guide marketers on their gender progress journey and help brands grow, by Getting Gender Right.

     

    Commenting on the study findings, Vishikh Talwar- Managing Director- Kantar Millward Brown, South Asia, said: “Gender is a sensitive topic – one that society is currently renegotiating across social, cultural, political and commercial spheres. The India leg of the survey comes at a very pertinent time as the subject of gender portrayal has gained immense importance both globally and closer to home. The report highlights that the bulk of ads in India are targeted at women; but marketers appear to be targeting them led more by stereotypes. Gender targeting should not be an either/ or decision and we need to challenge these outdated assumptions. From a portrayals perspective, more emphases need to be made towards aspirational and authoritative roles. The industry as a whole needs to be more aware than ever that things need to change.”

     

     

  • Brand value of India’s most valuable brands has upped 21% according to the study by WPP and Kantar Millward Brown

    HDFC Bank stays #1 in BrandZ India study

     

    By A Correspondent

     

    India’s most valuable brands have increased their brand value by 21% to US$109.3 billion in the last year, according to the BrandZ Top 50 Most Valuable Indian Brands 2017 announced on Wednesday by WPP and Kantar Millward Brown. This compares with a 2% decline in 2016, and is well ahead of the 8% value increase of the BrandZ Top 100 Most Valuable Global Brands 2017.

     

    HDFC Bank (24%) is India’s most valuable brand for the fourth year running, almost doubling its brand value since the ranking started in 2014 from $9.4bn to $18.0bn. It has a strong purpose – to improve lives by bringing world class financial services to all sections of India – and demonstrates it through increased access to banking in rural areas, an expanded digital presence and leveraging the latest technology to simplify its offering for customers. BrandZ data shows that consumers perceive the bank as increasingly innovative.

     

    The BrandZ ranking and report highlights the success that many Indian companies have had in 2017 with managing their most important intangible asset: their brand. For many that has been driven by a rapid response to rising consumer optimism, and evolving to meet people’s needs as their financial circumstances, preferences and expectations change.

     

    Said David Roth, CEO EMEA and Asia, The Store WPP: “Indian consumers seek authenticity and value for money, and the meaning of those things is being constantly redefined. As consumers become wealthier, they look beyond price to factors like extra features, innovation and a personalised experience. As reflected in this year’s ranking the most agile Indian brands have recognised the complexity in the market, and achieved just the right balance between aspirational and affordable.”

     

    The automobile category, which also includes tyres, lubricants and motor fuels, grew 23% in value. Brands responded to the changing market with new models that combined smart pricing and functionality with style and power. Royal Enfield, Maruti Suzuki and TVS were among the Top 10 overall fastest risers. Royal Enfield (no.40, 59%) engaged with biker groups on social media, and marketed a range of accessories. Maruti Suzuki (no.7, 56%) extended the brand beyond its traditional appeal to the value segment of the market, while introducing new showrooms called NEXA to reach premium customers.

     

    According to a communique, the India Top 50 have faced successive disruptions in the last year, some global, some created by fast-growing competitors and others strategically imposed by the government – including demonetisation.

     

    The FMCG category, which includes alcohol, food and dairy, personal care and soft drinks, was significantly affected by these challenges but still managed to grow 6% in total value. Some brands achieved impressive value increases by accurately understanding and responding to Indian sensibilities. Noodle brand Maggi (no.32; 66%), the overall second-fastest riser, aligned itself with the trend for nostalgia. This helped it bounce back after a difficult couple of years; its rapid regrowth demonstrating how a strong brand can help a company weather a crisis and recover faster, although it is still some way below its peak brand value of $1.1bn in 2014. Health food brand Saffola (no.36; 24%), meanwhile, introduced oats in new localised flavours and expanded its range of oils into a new super premium sub-segment.

     

    The financial services category increased its value by 26%. The fastest rising banks were Punjab National Bank (no.39; 43%), which is highly customer-focused and more agile than some of its competitors, and Kotak Mahindra Bank (no.6; 36%), which has innovated in areas including digital banking. Both of these brands still have significant catching up to do, however, if they are to reach the top of the leader board.

     

    Other trends highlighted in this year’s BrandZ Top 50 Most Valuable Indian Brands include:

    :: There are seven newcomers to the ranking. Telecom provider Jio ranks at no.11 only months after its launch, having disrupted its category with free-data promotions. The others are newly listed retailer D-Mart (no.24), appliance brand Whirlpool (no.45), insurance brand Bajaj Allianz (no.49), Canara Bank (no.50) and entertainment brands Sun Direct (no.27) and Dish TV (no.47)

     

    :: The long-term growth curve of the Top 50 is positive, with the total brand value of the ranking up 57% since the study was first carried out in 2014, when it amounted to $69.6bn

     

    :: India experienced a resurgence in national pride, while also embracing globalization. This manifested in a desire for products and brands that best reflect Indian heritage, sensibilities and tastes, which benefited local brands and put pressure on multinationals to follow suit. Colgate (no 28; 2%) launched a toothpaste with Ayurvedic properties to meet this demand

     

    :: The top riser is insurance brand ICICI Prudential (no.35; 89%). It benefited from the ‘halo effect’ of other brands’ successful responses to rising consumer affluence, which led to an increase in sales of assets such as cars that need insurance protection

     

    Said Vishikh Talwar, Managing Director, Kantar Millward Brown, South Asia: “There are now ‘multiple Indias’. Consumers continue to love the brands they’ve loved for generations, while equally embracing the brands of the future. Brands must be completely in rhythm with the pulse of the market. Those that can accurately interpret Indian sensibilities, while ensuring smart pricing, are likely to be most successful. This is easier for local brands, but people will relate just as positively to a global brand if it uses insight to understand and meet their needs, and communicate in a way that builds trust.”

     

    According to a communique, for the first time, this year’s BrandZ Top 50 Most Valuable Indian Brands 2017 study incorporates new research from Y&R’s BAV Group into what it takes to build powerful nation brands. According to the 2017 Best Countries report, India stands out for its history, cultural influence, distinction and reputation for entrepreneurship; especially among the world’s business decision-makers. Because there is a strong relationship between how people perceive a country and how they view the brands associated with it, India’s reputation has a significant impact on the global power of its brands.