HOW DOES BRANDING GET DRAINED AWAY IN INDIA WITHOUT GIVING THE ROI?

Branding in the Indian Market presents a multifaceted challenge, despite considerable efforts and investments made by brands with the objective to capitalize on the expanding consumer base and evolving market dynamics. Numerous brands experience drained budgets and underwhelming returns on investments (ROI). India is a major opportunity with over 1.4 billion population, it has been a home to many prominent industries. It is therefore essential to identify the underlying reasons why branding initiatives frequently fall short in the Indian marketplace, despite it being one of the most attractive economies globally.

Navigating the complex Indian market requires professionals to grasp why brands often struggle to gain traction, which makes it crucial to examine potential solutions to fortify branding strategies to sustain and grow in the Indian economy. This article aims to enable marketers to understand the concept of returns, its significance in the brand’s success, and factors contributing to lower returns as well as it provides a step-by-step guide to approach branding for suitable outcomes. 

Measuring Returns: Reasons and Methods 

Before diving into the methods measuring returns, it’s important to understand the reason every brand must focus on keeping track of the overall branding performance and assessing the results of the marketing efforts. Branding is not limited to the implementation and execution of ideas but it's equally significant to have an in-depth analysis of the response a brand gets because of the branding. Subsequently, a brand must specify the returns it is aiming for as the returns expected is a subjective term and varies as per the brand’s vision and mission. For instance, brand marketing generates long-term benefits with enhanced consumer loyalty, brand awareness, positive word-of-mouth, sustainable growth, and strong market position.

Whereas, if a brand wishes to measure short-term results, it can opt for Performance Marketing which includes Key Performance Indicators (KPIs). Such KPIs can be factors such as footfall, leads, conversion rates as well as consumer surveys which help identify how the brand is perceived by a consumer, in other words, the way a brand is positioned in the market. Another performance indicator is Customer Lifetime Value (CLV) which denotes the total revenue a business is expected to earn from customers during the entire course of its relationship with the brand.

While assessing brand performance through these indicators, a brand must set a benchmark of its expectations concerning the competition, and aim for realistic goals. Therefore, a brand must set its brand objectives and choose the KPIs wisely as per the company’s long-term and short-term goals to ensure smooth functioning of the brand’s marketing efforts. 

Uncovering the Overlooked Factors for Lower Returns 

In the ever-evolving landscape of branding in India, several common pitfalls drain budgets and impede the return on investment. Such can factors can be understood by analyzing the methodology a brand follows while mapping a plan for its marketing efforts. Prior to the strategy formulation, it is necessary to define the target audience, which requires extensive market research. The very foundation of branding demands a thorough understanding of the market, competitors, consumer preferences, trends, as well as the brand itself. Retail store designing, for example, requires an in-depth understanding of the brand’s vision and values,

which should then be aligned with the store aesthetics, product placement in the store, color palette and visibility.

While tracking the competition is important for a brand’s success, brands often develop their entire strategy proving itself better than the competition which on the contrary, can prove to be another contributing factor to negative ROI. Instead, a brand should focus on segregating the consumer base and creating its own loyalty. When it comes to retail branding, one underlying factor that is often overlooked by employees is its employee segment. The branding should convey the brand message in such a way that motivates and inspires employees to believe in the brand they are working for.

Employees are the front face of the brand as they serve as a direct point of contact with the customers. A consumer’s shopping experience upon their visit to a store is largely dependent on the employees they are greeted by, which then creates an ever-lasting impression of the brand. Another consideration commonly neglected in branding is consistency.

The dynamic nature of the market necessitates continuous adaptation of the latest trends. While this adaptability is imperative, such changes should be constantly monitored to prevent degrading the brand value. The branding should always align with the brand essence, and not confuse the target audience regarding the nature and tone of the brand message. Hence, brands need to recognize that while tools and mediums may evolve over time, the core of branding remains constant. 

A Systematic Approach to Favorable Returns 

For branding success, it’s requisite for brands to follow a structured approach, progressing from planning through implementation to monitoring results. The key is to have a comprehensive understanding of the brand’s vision and recognize the brand attributes such as its uniqueness, competence, values, relevance, credibility, and innovation. A brand must explicitly outline its objectives and expected returns. Goals should be attainable, aligning with the brand’s capabilities and resources. A brand should then understand its niche, define the target market and acknowledge the customer specific touchpoints. Retailers’ “products” are their stores, thus,

they must craft a narrative through branding elements such as the color palette, design, and ambience that clearly communicate the brand message to customers during their in-store experience.

The branding at every step must align with the brand’s purpose, which makes it necessary to filter out the strategies that deviate from the predefined path. Finally, it’s crucial to register the consumer response and integrate their feedback into future branding efforts. A brand must judicially allocate its resources and investments to sustain amongst the intensive competition in the Indian market. 

Key Takeaways

In conclusion, branding efforts in India often fail to match the expected returns due to a lack of long-term strategy, insufficient research into consumer preferences, and an inability to quantify impact. Brands wishing to successfully build their presence in the Indian market must take a more targeted, niche, and data-driven approach that focuses on connecting emotionally with consumers on a deeper level and measuring the overall impact of brand experience in the consumer’s mind, influencing the purchase decisions over time.

To capitalize on the opportunity to explore significant untapped potential and thrive in the Indian market, brands must conduct robust marketing research, ensure consistent brand representation across diverse consumer touchpoints, align with the brand’s storyline, establish vital metrics to measure performance, and incorporate consumer feedback into the next branding initiative.