BEST INDIAN BRANDS 2016

India’s 40 most valuable brands

GROWING GLOBAL Table of Contents

Growing global 3

A purpose-bred roadmap 7

Growing global through internal 17 anchoring in Brand Purpose

Global growth via brand focus 23

Global growth through authentic and 29 differentiated brand experiences

Brand as an anchor for 35 global governance

Reorienting legacy businesses for 43 growing global in the digital age

BIB table 49

A breakthrough brand mindset to grow global 79

Breakthrough growth 83

Thinking like a start-up to 89 accelerate global growth

Nation brand support for growing global 95

Interbrand’s Brand Valuation Methodology 106

Best Indian Brands Criteria 112

A difference in opinion 115

Contributors 120

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(W) 16.5 X (H) 22.5 cm Growing global I am delighted to present to you the Best Indian Brands 2016 “league table, now in its fourth year. The world today waits as India brims with potential. At Interbrand, we already work with a number of Best Indian Brands– I am confident that India is nurturing some truly world-class brands that are set to make their mark on the global stage. This year’s theme, ‘Growing Global,’ addresses the Indian brands’ ambition to become global brands. ’’

Jez Frampton Global Chief Executive Officer Interbrand

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(W) 16.5 X (H) 22.5 cm Thirty years ago, we pioneered the Brands differentiate to help concept of brand value. It was a bridge organisations stand out from that connected the nebulous, intangible competitors, become relevant to people, thing that seemed to generate people’s and even bring clarity within an desire to buy with a deeper understanding organisation. They generate loyalty of how it brings value to a company. because they fulfil expectations. They command premium even in a market of parity. This is the power of a brand. We define it as brand strength. It grows business and translates into profitability and earnings. As levers for The biggest shift growth, brands are extremely powerful because they touch so many aspects of in the industry the business. today is the A brand is not built by just a logo or recognition of the a tagline or a communication. A brand importance of today is not just a product or a service. It's an organisation’s environment, brands inside the culture, values and behaviours; it’s the organisation. promise, the customers and their experience, and more importantly, a way of bridging all of it. Look at some of the brands that have transformed global markets in the Now, and especially in the context of the last five years– Google, Apple, Indian brands’ rightful global aspirations, Facebook, Amazon, Uber and Airbnb. we are excited to present to you our These businesses appeared from almost understanding and perspective on nowhere and changed how we live our brands– one of the more potent tools for lives. That’s the clue: they understand growing your business. how we live our lives. They touch us, help us, improve us. Not just by what In today’s dynamic business they offer, but also by how they treat us environments, a brand is not only a and make us feel. Not just via a product, long-term, sustainable differentiator but as an organisation. between businesses, but the ultimate Growing Global is not only about saying, agent of growth. We think of brands as “I want to be a top 10 business in the ‘business strategy brought to life.’ world in my category,” because the first Brands have the power to make question that arises is “How?” someone choose one product over and that “How?” is connected to a deep another, or one employer over another. understanding of the forces of growth

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(W) 16.5 X (H) 22.5 cm Growing global

within a business, which can help complex, and the elusive ideal is a accelerate the organisation. seamless experience. People expect everything to just work brilliantly all the The first and most fundamental force time. Whether it's using an app, walking of growth is an inward harnessing. This is the growth of people: growth of their into a store, speaking to the organisation, capabilities, their understanding, and or engaging a product or service– their ability to work together. It’s your everyone wants everything to be processes: the way that you actually do seamlessly connected. The implication for things and how you encourage others to CMOs, as the ones who understand the do things. It’s the products and services customer base, is that they need to be that you bring to the market: how you able to influence and take people on create procedures for innovations a journey across the whole spectrum. to make sure that capability grows That’s a big shift. To deliver seamless over time. experiences, all people, processes and platforms have got to be aligned. This That's the biggest shift in the industry calls for reengineering organisations, and today– the recognition of the importance nothing less. of brands inside the organisation. While earlier, brands were seen as a It all comes back to building a brand sub-division of the marketing from the inside out. And then from the department, they’re now understood outside in. Indeed, the brand is delivered how you do business– simply because, by people. People deliver the experience. if you’re going to make something move Experience delivers the brand. And it’s and grow, you have to get people to a beautiful cycle. move with you. My advice to the Best Indian Brands The second major force of growth lies in seeking to grow global is to start by what customers expect from companies: looking deeper: understand your the growth of experience. The single organisation’s anatomy of growth and greatest impact of technology on our then you can start to build clear lives and businesses is the strategies to achieve global growth– transformation of customer journeys. something that you truly deserve. Today touchpoints are multiple and

Jez Frampton

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roadmap Growing Indian Brands Global

Ashish Mishra Managing Director Interbrand India

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(W) 16.5 X (H) 22.5 cm There are no Indian brands in brands will need to be global frontrunners Interbrand’s Best Global Brands league in designing lives and creating better table yet. There are a fair number of experiences, at the speed of life. This Indian businesses that are global, but requires reinvention and reinterpretation they haven’t been able to establish in the context of resolution of conflicts. themselves as global brands so far. Finding new relevancy and role in creating To understand why merely growing the better life experiences. size of their global business will not realise their corporate aspirations of Being purpose-led being admired as a global brand, it is After an aspirational global role and useful to understand what the truly relevance has been found by the Indian global brands deliver today. brands, the next big step is about setting Having begun with the Age of Identity, a goal and creating a purpose. Once you the world has swiftly moved through do that and commit to it, the Universe, the Age of Value, Experience and now, as is oft repeated rather romantically, thrives in the Age of You. The future conspires to help you achieve it. thinkers of the world have spoken about Finding their global purpose will create it as Globalisation 3.0 or the Cognitive new relevance and authenticity of the Era, where, after the Reigns of Empires Cognitive Era Brands. This is what will and MNCs, it is now the individuals enable the decisive social presence, that rule. as people will connect most with the resolutions of their most powerful and So, it is the individual-led era where unresolved conflicts. That’s what they people with high cognition are in the will talk about and share. Thus making it controlling position and they are clearly easy for such businesses and brands to using brands to design their lives. Given gain the all-crucial consumer advocacy, this new expectation from brands and the highest form of engagement. the accelerating pace of change all around, it devolves upon brands to move at a At a conceptual level it would have been new speed. At Interbrand we call it the enough to provide a definitive Speed of Life. philosophical direction to the global brand aspirants. But there are challenges While the brands confined to local both at global and local levels that the geographies may still have some brands and marketing have to borrowed time to remain impervious to contend with. this new norm, the global brands and the global brand aspirants have no choice. So what should Indian brands aspiring to be global, do? Quite clearly, Indian businesses and

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(W) 16.5 X (H) 22.5 cm A purpose-bred roadmap

Being purpose-bred And orients the commitment through clarity and responsiveness to provide In our analysis, the toughest challenge the dynamic micro experiences. for brands and marketing is a lack of the The organisation’s ability to do so with experience and ability to manage the its brand will create the only possible exploding micro experiences within differentiation in the easy-to-imitate age today’s complex and pervasive customer we live in. journeys. There is a desperate need for an anchor to tie it all together– an anchor Indeed, brands are the only sustainable with a meaning system. A purposeful differentiation that businesses have to anchor that inspires and connects leverage their competitive growth with. people– around culture on the inside, Unfortunately, that’s where the problem and around experience on the outside. lies when it comes to Indian businesses. An anchor that breeds focus and consistency through governance.

Brand as an Anchor for Internal and External Coherence

After HR PR www. Sales

Product Internal Finance External Development Coherence Coherence

Marketing IT Sales

The Brand can act as a purposeful anchor that inspires and connects people– around culture on the inside, and around experience on the outside.

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(W) 16.5 X (H) 22.5 cm The need to shift from 1 businesses leading brand to brands leading businesses Growing Global through structural Historically, Indian businesses have led optimisation brands. There always was an One invests to set up and manage the entrepreneurial business strategy various functional aspects of the followed by broad functional strategies– business anyway. Wouldn’t simple HR, sourcing, manufacturing, R&D, principles of synergy and cohesion make distribution, sales, marketing and so on. it more efficient if we could somehow Somewhere within marketing was integrate the functional strategies though communication and brand. an organising principle? And what would The brand was seen as an overhead. be better than using the brand itself as An expression side element, left to the organising principle? marketing department and contributed to by creative and media agents. Managers enthusiastically extolled its virtues but could never prove its value. Indeed, for anything to be of consequence in business, its materiality needs to be clear and measurable. Since no one could achieve the analytical depth for isolating and measuring the economic impact of brands, it was always convenient to keep it with the subjective softer aspects of business like advertising and design. At Interbrand, we have strived fiercely all around the world to dispel this paradigm. To take the brand out of the confining preserve of marketing and to place it in the centre of the organisation, making it a potent tool for driving the business growth. This we believe is also the way of driving growth for businesses aspiring to grow global. And unlike the traditional comms.-led practices, we clearly see definitive and measurable brand-led pathways of global growth at various levels –

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FINANCE FINANCE

HUMAN HUMAN RESOURCES RESOURCES

SALES SALES

BUSINESS BRAND BUSINESS BRAND MARKETING MARKETING STRATEGY STRATEGY STRATEGY STRATEGY

MANUFACTURING MANUFACTURING OPERATIONS OPERATIONS

DISTRIBUTION DISTRIBUTION

R&D R&D

There are two kinds of organisations– a fundamental shift for the organisation– business-driven and purpose-driven. a shift from being purely business-driven The very act of leveraging the brand as to purpose-driven. the central organising principle creates

McKinsey’s Service Profit Chain model

Employee Productivity Employee Revenue/Profit Growth Loyalty Customer Satisfaction

Employee Engagement Quality of Customer Experience

Customer Loyalty

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Growing Global through internal Brand as an anchor for global anchoring in brand purpose portfolio management and governance The purposefulness of the organisation then becomes the premise for a stronger Many Indian organisations today have employee engagement. McKinsey’s grown organically into a situation where Service Profit Chain model describes they have a proliferated portfolio. the rationale behind it succinctly. For most, the new product or service Organisations with stronger internal opportunities over a period of time either engagement have been conclusively found the same brand cover or a new proven to deliver superior financial name. Neither was there a destination fundamentals. envisaging strategic basis nor was there a long-term naming system to ensure coherence in the rapid additions to 3 the spectrum. Growing Global through a brand-led This understandably dilutes the impact focus on premium demand drivers, of the brand by confusing the orientation and demand sustenance and the ownership of a sharp demand A powerful way of driving business driver as well as weakening many growth and global aspirations can be brand strength factors such as rooted in the brand definition itself. clarity, authenticity, consistency Any business will do well by way of three and understanding. simple factors– demand generation, By adopting a brand-centric portfolio demand sustenance and the ability management, it is possible to create to charge a premium. brand architectures via an alignment The demand generation in any business based on synergy of demand drivers or category, as also its premium, is a and compliment of brand strengths. function of how strongly the business This helps clearly decide on the owns the important drivers influencing adjacencies of the brand and the the purchase. The sustenance of real need for additional primary demand is decided by the strength of and secondary brands. the brand, internally and externally. This is the basic approach employed for strategic positioning and definition for the best global brands and will surely benefit the Indian Brands aspiring to grow global.

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Global growth through authentic and the behaviour of staff, the channel differentiated brand experiences experience and digital, internal and external communications. Experience is a sum total of all the touchpoints that the business has across A large number of these touchpoints its stakeholders, both internal across Indian businesses do not follow a and external, offline and online. converged theme. Wouldn’t it be efficient Managing the proliferating new micro and productive if there were one? Again, experiences creates one of the more can there be a better basis for affecting complex challenges for brands and this convergence than brands marketing today. themselves especially for the Indian businesses aspiring to grow and The touchpoints of experience are not compete with global brands? limited to communication alone, as a majority in the Indian market tends to believe. The touchpoints include product and service experiences,

The Brand as an Integrator of Authentic and Differentiated Experiences

Customer Retail Service Experience Social CRM Media Team Digital Sales Team Team

Int. Brand Comms IBE Team

Marketing Team Comms

Product Team HR Media Team Product Team Media People Channels

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(W) 16.5 X (H) 22.5 cm 6 three Indian brands in the inaugural Breakthrough Brands report itself! Reorienting legacy businesses for Why can’t the Best Indian Brands and Growing Global in the digital age Businesses think more like a start-up? Indian business as well as the Best Why can’t the large corporates replicate Indian Brands league table is dominated the success of their Breakthrough Brand by legacy businesses. These businesses counterparts, embracing the start-up are India’s best bet to grow global. mindsets to reinvent and grow their It is therefore imperative for them to businesses and brands? reorient themselves for the new world. Understanding the needs and aspirations 8 of the global customers and realigning their purpose, technologies, people, Nation brand support for offerings and experiences will help the Growing Global ambition of growing global. The caution A common pushback from the Indian will be balancing the local opportunities brands when it comes to doing well in with global, as India itself is a large the centre-stage markets of the world consumption market fast emerging as i.e. North America and Europe, or when a key global market too. it comes to playing in categories that are upstream, is the baggage of its nation 7 brand. And the fact that the global customers do not accept a premium play Breakthrough brand mindset to from an Indian brand. Well, it may serve grow global well to remind such brands of how in We are indeed living in exciting times many cases it is the brands themselves of start-ups and breakthrough brands. that build the nation brand. Korea was no Brands that are moving at the speed Japan when it came to image but it took of life and helping people design their a Samsung to uplift that nation’s brand. lives using the customised micro Why can’t a Tata, Reliance, Infosys or experiences through brands. India a Mahindra do the same for India? due to its human capital and the It may also be worth considering a entrepreneurial culture is inherently central, state-led effort to reposition tech savvy and is already seeing the nation brand India, more from trade, an explosion of breakthrough brands. investments and acceptance of global There are 3 Indian Brands in our recently markets for Indian brands perspective. announced Breakthrough Brands 2016 There are examples of Holland, Kenya, report. Is there something to read in Turkey (Turquality) and Vietnam there? No Indian brands in the (Vietnam Value) to study and build upon. Best Global Brands list yet, and

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Connecting Brand Strategy to Business Results

If we open up our minds beyond the business and financial processes on one hand and communication levers on the other, we will see the vast opportunities that connect the two. Unfortunately, the proponents of these two ends of the spectrum prefer to keep it disjointed to hide their inabilities to straddle them.

It is our hope that we can do that for the Best Indian Brands.

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(W) 16.5 X (H) 22.5 cm Growing global through internal anchoring in brand purpose

Organizations that Organisations that band together, band together, brand together brand together

Carolyn Ray Managing Director Interbrand Canada

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(W) 16.5 X (H) 22.5 cm By connecting purpose to brand, HR & Marketing can embrace a new model to help current employees find purpose in what they do and, more importantly, show why it matters to their colleagues, customers, the business and the world.

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(W) 16.5 X (H) 22.5 cm Growing global through internal anchoring in brand purpose

As the industry, and especially the By working together, HR & Marketing can service industry, undergoes shifts and break down the silos and take a holistic talent emerges as the key issue in future approach across departmental profitability and success, there has never boundaries to improve reputation, been a better opportunity for HR & growth and market value. Here are three Marketing to become the best of friends. ways to start this beautiful friendship: How so, you ask? Aren’t culture, values, and behaviour the responsibility of 1 human resources? And isn’t marketing focused on the brand, digital marketing, Create an inspiring employer and customer loyalty? Why yes! And that value proposition is precisely why we believe this could Research shows us that just 13 per cent be the perfect relationship– a friendship of employees are ‘highly engaged’ of true collaboration– built on the globally. This means that only one in inherent, complementary strengths eight workers is psychologically of each function. committed to his/her job. This is an After 41 years of experience, one of the enormous problem for organisations that truths those of us at Interbrand know is rely heavily on employee engagement to that brands are built from the inside. It is enhance customer service, innovation, only when the people in an organisation and creativity– all intangible measures understand their brand– who they are that affect business performance. and what they stand for– that they can HR’s understanding of employee needs create truly memorable experiences and behaviours, coupled with marketing’s that drive loyalty and enhance understanding of the brand, present the business performance. perfect opportunity to cut through the clutter and create an EVP that is Interbrand’s global marketplace study, embedded in the everyday and which surveyed over 1,500 CMOs connected to the customer experience. worldwide, shows that one of the top challenges faced by CMOs today is employee engagement. While this finding 2 is not surprising itself, the fact that Find a purpose that employee engagement is becoming a empowers innovation CMO priority is– and, frankly, it is about time. In a service-based economy, where An organisation’s purpose is essential businesses will compete on talent first, to retaining the new generation of talent. it is imperative that organisations focus Today, more employees are motivated on building a culture that attracts and by work passion than career ambition. retains talented people who support This indicates a need for leadership to business growth. focus on making the work environment

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(W) 16.5 X (H) 22.5 cm compelling and enjoyable for everyone. for all time. By identifying appropriate Inspiration requires breakthrough brand-driven behaviours, HR can communications and who better to collaborate with Marketing to provide the engage Millennials than Marketing? right training, coaching and mentoring to By connecting purpose to brand, HR create a memorable and positive and Marketing can embrace a new customer experience. But it’s more than model to help current employees find just training– the right reward and purpose in what they do and more recognition, metrics and communications importantly, show why it matters to their need to be in place too. colleagues, customers, the business and All high-performing organisations have the world. the potential for prosperity based on past successes. However, the rules are 3 changing. And change always brings new possibilities and opportunities. Dial up the employee experience This is the time to explore a new model Far too often, orientation, reward & of brand-driven collaboration, starting recognition programs, corporate values with the people inside an organisation. and training are siloed within the It is clear that traditional methods won’t HR department. By working together, take us where we need to go. HR and Marketing can create highly innovative programmes that connect the employee to the customer, whether that employee is customer-facing or not. With great knowledge of segmentation, Millennials, and social media, marketing can revitalise the employee experience in new and exciting ways.

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Create a unique customer experience: In any customer experience, employee behaviour is the gating factor. In fact, research tells us that only 14 per cent of customers defect because of product quality. The majority of customer defections– 68 per cent– occur because of staff indifference. We need only look at YouTube to see examples captured

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(W) 16.5 X (H) 22.5 cm Growing global through internal anchoring in brand purpose

Poor employee engagement poses a serious threat to companies, holding back or even derailing growth plans. Those firms that break down internal silos to develop a well-informed and brand-led approach to finding and retaining talent will gain a much-needed competitive edge. This is a valuable lesson Indian brands wanting to grow global can learn early enough in their journey.

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Breaking through the growth barrier

Dominik Prinz Executive Director & Head of Strategy (NYC/SF) Interbrand

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(W) 16.5 X (H) 22.5 cm What separates the businesses that and most agile start-ups alike. Looking do breakthrough the growth barrier at the ones that were extremely fast to from the ones that never reach it? reach and sustain an impressive level And what is that powerful fuel that helps of business growth, the very same– and them accelerate fast enough to make (as with most good things in life) very it through? simple– growth formula applied. Let’s look at how some recent case Over the course of our 40-plus years, stories did it: Interbrand has worked with some of the world’s largest Fortune 100 companies Interbrand has worked with some of the world’s largest Fortune 100 companies and most agile start-ups alike.

(W) 16.5 X (H) 22.5 cm Global Growth via Brand Focus

A Clear Sense of Purpose You need to be crystal clear on what meaningful impact you want to see in the world – and why. Whether it is the ambition to dramatically improve a product, a service, or an entire category, be relentless in defining the story that lives at the core of your business and + brand – and message it over and over again, since it will then become a filter people use to judge the authenticity of everything you do. A Relevant Operating Model Design an operating model that speaks to the people you’d like to call your customers. Uber’s business is built on a technology platform that makes transportation easy and seamless. Warby Parker designed an initial operating model that substituted + expensive retail locations with free product trials. Find out what the operating model is that allows you to A Powerful Customer scale, quickly. Experience At the end of the day, the rate of growth that you will reach depends on the quality of the experience you provide. It’s not new news, but not less true today that it has been before, either. You have to make sure to invest in and focus on the experiences that truly matter to = people and inspire them to engage, over and over again.

Brand and Business Growth

(W) 16.5 X (H) 22.5 cm That sounds rather simple, doesn’t it? Lack of Activation Unfortunately, making it real is pretty The third obstacle to accelerated growth hard, after all. And so many businesses is a very superficial understanding of (existing and new) fail to replicate this what it takes to bring a brand to life. We formula. This is mainly because of three growing pains that keep them from live in a world where the degree to which reaching their full potential: customers engage in (and talk about) the experience you provide them defines the Lack of Focus degree and longevity of your success. Very often, organisations– even when And while the number of potential they’re still small or only comprise the touchpoints and the changes you can founders and their initial team– lack a make to them can be overwhelming, it is shared focus. Too often, they try to be absolutely critical to identify what the too many things to too many people. most relevant experiences are for your And while they go down that road with audiences. Once you know, relentlessly the best of intentions– to cover more prioritise them– invest in user experience segments, to play in more categories, (UE) design and activation, and create a to generate more revenue streams– it seamless connection between them. is very rarely a successful path to Too often, the excellence of a few explore in the early stages of a business selected touchpoints is sacrificed in venture. If the brand is not clear on its order to maintain the mediocrity of too own purpose, customers won’t be either. many. While being present is important, Lack of Alignment emerging companies must be good at creating hallmark brand experiences that Another growing pain on the path to stick with people. Apple understood that success is missing processes and early, when it invested heavily in its structures that are necessary for an stores. Uber has gained traction by organisation to rally the right troops continuously improving its app. And today, around the right table at the right times. Much energy is being wasted on the Breakthrough Brand Shinola is following inside with redundant meetings and talk, this formula by relentlessly focusing on while people on the outside are waiting the quality and durability of its product. for the ‘next big thing.’ Internal What are you prioritising as the signature processes are needed (and are often experience of your brand? important to hedge risk), but in order to Of course, doing all these things right thrive in today’s hypercompetitive world takes discipline– which does not always at the speed of life, organisations need come easily during the early growth to allow for iterative exploration, beta stages of a potential new breakthrough. testing and faster decision-making. Take a look at Google: It’s a big (i.e. real big) That sounds rather simple, doesn’t it? business that has scaled lean startup Unfortunately, making it real is pretty principles to hit the ground running and hard, after all. And so many businesses power right through the growth barrier. (existing and new) fail to replicate this

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(W) 16.5 X (H) 22.5 cm formula. This is mainly because of three growing pains that keep them from priorities shift, people change, the market turns, the competition reacts. It is challenging for many Breakthrough Brands to keep the eye on the prize and not get distracted. For exactly that reason, we have developed the Interbrand Accelerator– a service that helps companies at all stages successfully navigate the most critical moments of their growth and alleviates the above-mentioned growing pains. The Accelerator combines a proprietary analysis of ten key growth factors (including the five measures of a Breakthrough Brand) and features a data dashboard that sources leading indicators, fast-moving metrics, and customised data to spot and visualise opportunity areas. The information is used to align key decision-makers around a shared set of strategic priorities, and to identify the most urgent and impactful actions the business can take in order to create a holistic, connected customer experience that’s hard to resist. This is a powerful tool for the next generation of business leaders who are keen to align their organisations around delivering a coherent brand and to rapidly capitalise on opportunities for business growth. And when the next big ‘booom’! echoes through the industry, signaling a new brand breaking through the growth barrier, wouldn’t it be great to have an Indian Brand in the pilot seat?

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G

A

R E V E L D AN BR

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(W) 16.5 X (H) 22.5 cm Global growth through authentic and differentiated brand experiences

Mike Rocha Global Director, Brand Valuation Interbrand

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(W) 16.5 X (H) 22.5 cm In addition to finding ways to incorporate your brand’s story throughout the customer journey, a brand-led customer experience strategy also identifies a smaller number of opportunities to create Brand Hallmark Experiences– moments that truly typify the brand in a distinctive, memorable, and potentially iconic way. (NPS) measurement, a key indicator of As he degree to which Indian people would recommend businesses your company. increasingly look beyond our shores for Armed with data from these growth and glory, they are allocating measurement programmes, businesses significant resources to understanding are building systematic feedback loops and optimising their customer journey to create ongoing change programmes and experience. However, unless they aimed at enhancing the customer leverage their brand as part of this experience over time. However, process, the outcome is likely to be success is often variable. generic, easily copied, and one that Embedding the brand into these fails to provide a sustainable processes as a filter for decision-making competitive advantage. is crucial. Without it, there is a significant Today’s business leaders are convinced risk that the end result will be a good, of the importance of a customer-centric but ultimately undifferentiated, customer strategy and business model. In order to experience that will sooner or later be develop an in-depth understanding of matched by the competition, eliminating their customer journey, they’re investing any hard-fought advantage that may in data, like the Net Promoter Score have been secured.

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Interbrand’s definition of brand:

A brand-led customer experience Micro-Moments. For example, Nike strategy builds on existing NPS combines the Brand Hallmark programmes by ensuring that, as Experience of its Niketown store with changes are made to the customer Branded Micro-Moments through its experience, key brand messages are Nike+ running app. As part of its upper reinforced across all aspects of the class experience, Virgin Atlantic offers experience– at Interbrand, we call these both a chauffeur limo service (Brand Branded Micro-Moments. Hallmark Experience) along with access to an on-board bar where passengers In addition to finding ways to incorporate can socialise with others (Branded your brand’s story throughout the Micro-Moment). customer journey, a brand-led customer experience strategy also identifies A brand-led customer experience a smaller number of opportunities strategy is informed by Brand to create Brand Hallmark Experience Principles– a set of strategic Experiences– moments that truly typify rules and guidelines that demonstrate the brand in a distinctive, memorable, how to incorporate the brand strategy and potentially iconic way. into the customer experience. A brand-led customer experience strategy balances Brand Hallmark Experiences with Branded

Delivering ownable, valuable experiences

The strategy Experience Experience Experience Experience Experience for the brand Principles Language Signatures Roadmap Pilots How the brand How the brand How the brand is When and where Priority activation behaves locks, feels, activated the brand is prototypes sounds, tastes activated and smells

The strategy for the experience

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(W) 16.5 X (H) 22.5 cm Interbrand’s Brand Experience Principles:

Here are five tips for leveraging your enhances it and reinforces the brand to create an authentic and brand promise. differentiated customer experience that will result in a sustainable 4 competitive advantage: Identify opportunities along the 1 customer journey for Branded Micro-Moments and Brand Hallmark Revisit your brand strategy to activate Experiences: it across the customer journey: Look at your existing pipeline of Ensure that your brand’s purpose and experience improvement initiatives, and promise are being brought to life and identify opportunities to reinforce your standing out in a relevant way when key brand messages while making these customers experience your brand– at changes. Find quick wins to gain early any touchpoint. internal buy-in. Bring together your analytical and 2 creative teams to discover what matters to your customers, and identify how you Make the business case for a can reshape the customer experience brand-led customer experience and create new value for customers in strategy: ways that become hallmark moments for your brand. Be clear about how investments in a brand-led customer experience strategy will drive choice, premium, loyalty, and 5 ultimately, economic value. Engage the organisation to deliver the brand: 3 Any brand-led customer experience Create Brand Experience Principles: strategy will flounder without internal understanding and commitment. Define the strategic rules that will guide Create a dynamic employee engagement the organisation in shaping its brand programme that uses peer-to-peer and experience in a way that simultaneously viral communication tactics– rather than

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old-fashioned cascade and comply techniques– to enable your people to deliver the brand experience effectively. Leveraging your brand throughout your customer experience will result in a more ownable, authentic and differentiated customer experience that will deliver a sustainable competitive advantage and significant ROI.

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(W) 16.5 X (H) 22.5 cm Brand as an anchor for global governance A versatile tool for global brand management

Mike Rocha Global Director, Brand Valuation Interbrand

Ameya Kapnadak Senior Client Director Interbrand India

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(W) 16.5 X (H) 22.5 cm As Indian companies and brands nurture However, there is also a flip side to this. global ambitions, they are faced with As one focuses on the individual market a plethora of choices– and challenges. and the customer and competition it Understanding new markets, new sets houses, the danger is for a brand to of customers (with their own cultural stand for varying things– and ultimately, nuances, functional and emotional create varying experiences– in different needs), new channels and newer markets. In other words, the proverbial (entrenched) competitiors can be whole can end up becoming smaller a daunting task for the most seasoned than the sum of the parts. This in fact, is the exact opposite of what truly global brand owners. brands are able to achieve– a uniform and Traditionally, Indian companies have consistent global experience regardless of taken a considered and a measured the market and the competition. approach to growing global– understand It behooves the Indian brands growing the market, customer and competition global to put in place, a global as best as you can, begin to take the first governance system that ensures and baby steps and then evolve as you begin encourages a uniform, consistent to gain traction in the new market. And experience in all their markets. for the most part, this approach has paid Logically, there is no better anchor off as Indian brands slowly but surely than the brand, to become the anchor gain a foothold in their new homes. for this global governance system.

As one focuses on the individual market and the customer and competition it houses, the danger is for a brand to stand for varying things– and ultimately, create varying experiences– in different markets. In other words, the proverbial whole can end up becoming smaller than the sum of the parts. This, in fact, is the exact opposite of what truly global brands are able to achieve– a uniform and consistent global experience regardless of the market and the competition.

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(W) 16.5 X (H) 22.5 cm Brand as an Anchor for Global Governance

designed to take all of these stakeholders and value-creation levers into account. While a Role of Brand Analysis helps Brand Valuation is brand managers understand purchase a management tool behaviour and the brand’s ability to drive choice and generate demand, Brand for global brand Strength measures its ability to sustain governance. the demand, engender loyalty and ultimately, reduce risk. A Role of Brand Analysis lets us know where investment in (and focus on) brand improvements will have the Strong brands enhance business biggest impact. It can be thought of performance primarily through their as a measure of ‘brand leverage.’ influence on three key stakeholder groups: customers (current and Brand Strength Analysis, on the other prospective), employees and investors. hand, is the key diagnostic tool to They influence customer choice and measure brand performance and better create loyalty; attract, retain, and understand the reasons behind its motivate talent; and lower the cost strengths and weaknesses, both of financing. internally and externally. It supports strategic brand management by The influence of brands on current and prioritising areas of highest impact prospective customers is a particularly for managers. significant driver of economic value. By expressing their proposition consistently For the brand manager or the brand across all touchpoints, brands help owner, a Brand Strength analysis is shape perceptions and, therefore, of special interest because it offers purchase behaviour, making products a robust, evidence-based and and services less substitutable. In this data-driven methodology to manage way, brands create demand, allowing and govern the brand across markets. their owners to enjoy higher returns. A Brand Strength Analysis: Strong brands also create continuity of demand into the future, thus making expected returns more likely– or less 1 risky. Brands, therefore, create economic Enables constructive dialogue about value by generating higher returns the business by creating a common and growth, and by mitigating risk. language for discussion of brand Interbrand’s Brand Valuation performance. By introducing a methodology has been specifically common set of metrics across the

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(W) 16.5 X (H) 22.5 cm organisation, it ensures that different Considerable investments are made in parts of the organisation begin to brands and it is important to determine view the brand through the same lens. if these actions are creating value for our customers and in turn, our shareholders. 2 Interbrand’s Brand Valuation methodology seeks to determine, in both customer and Provides global and local managers financial terms, the contribution of the with an actionable tool to make brand to business results. informed marketing decisions– A strategic tool for ongoing brand empowering management with management, nothing can be more insights to implement brand strategy. robust than Brand Valuation, because Since Brand Strength is always it brings together market, brand, relative to the competition in that competitor and financial data into specific market, it allows local a single, value-based framework within managers their individual market-level which the performance of the brand can insights to tailor specific tactics. be assessed, areas for improvement On the other hand, it provides the identified, and the financial impact of corporate office a high level investing in the brand quantified. ‘dashboard’ detailing the relative strengths and weaknesses in the Other Applications brand at a more strategic level. While Global Brand Management is the most relevant application for brand 3 managers and brand owners (global Allows responsibility for performance giants like Samsung, for example, have on the ten Brand Strength factors to deployed this very methodology to drive be allocated to functions across the consistent and focused efforts at business, building engagement and a creating a truly global brand), sense of responsibility for the brand there are two other applications across the organisation. that Brand Valuation finds:

When the Role of Brand and Brand Strength Analysis are connected to 1 the financial model, they provide a framework for resource allocation and Financial Applications prioritisation based on the opportunities Increasingly, CEOs are placing more expected to have the greatest impact emphasis on their companies’ brands on brand and business value. in investor communications. Many more Ultimately, everything we do as brand annual report column inches are now managers is best considered through dedicated to discussing an a value-creation lens. organisation’s commitment to its

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(W) 16.5 X (H) 22.5 cm Brand as an anchor for global governance

brand, from the CEO down. Numerous methodology can also be used to companies take their brands seriously complement other more traditional enough to report their value over time techniques for setting royalty rates for to investors. brands. By identifying the value created

Financial Brand Management

Investor Relations Brand Performance Management

Mergers & Acquisitions Brand Portfolio Management

Licensing/Royalty Rate Setting Resource Allocation

Applications Financing/Securitisation Brand Tracking/Dashboards

Tax Valuations Return On Investment Analysis

Balance Sheet Valuations Organisational Brand Engagement

Management KPIs

Typical One-off Recurring Frequency

Primary Ongoing brand management leading to insight and A Robust Value with supporting analysis Objective recommendations to grow brand value

Applications of Brand Valuation

The brand also continues to be a key by a brand for its business, combined driver of acquisition premiums in M&A. with an evaluation of the relative Often, it is the latent potential of the bargaining power of the parties involved, brand that is driving this premium we are able to advise on the proportion through its ability to enter new markets of brand value that should be paid out as and extend into adjacent categories. a royalty rate in return for the right to A broad skill set, combining market exploit the brand. research, brand and business strategy, together with business case modelling, is required to quantify the latent financial potential of the target brand. Interbrand’s Brand Valuation

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(W) 16.5 X (H) 22.5 cm 2 By bringing together market, brand, competitor and financial data, the brand Strategy/Business Case Applications valuation model is the ideal framework within which such business case From time-to-time, businesses need to modelling can be conducted. evaluate significant changes in brand strategy, whether it be repositioning, As global competition becomes tougher brand architecture, brand extension, and many competitive advantages, or even a complete rebrand. These kinds such as technology, become more of changes typically involve significant short-lived, the brand’s contribution financial outlay upfront, along with a high to shareholder value will only increase. degree of uncertainty over when, Brands are one of the few business or whether, a positive return will be assets that can provide long-term made on that investment. competitive advantage. Some CEOs are willing to make these Companies as diverse as Samsung, critical brand strategy decisions based Philips, Hyundai and AXA, among many on qualitative strategic analysis and others, have used brand valuation to intuition. The majority, however, are help them refocus their businesses on looking for a business case that goes their brands, motivate management, further. They want to understand the create an economic rationale for likely overall financial impact on the branding decisions and investments, and business over time, covering a range of make the business case for change. alternative scenarios. In addition to a Although many brand metrics are detailed breakdown of the expected available, few can link the brand to costs to deliver, a rounded business long-term financial value-creation and case will also quantify the expected this, along with its many other impact on the topline through the applications, makes Brand Valuation a modelling of key revenue drivers versatile strategic tool for your business. (these will vary based on the business, but could include customer acquisition, churn, price premiums, share of wallet, frequency of purchase/visit, average basket size, and so on) and on profit margins from any operational changes required to deliver the new strategy. Finally, sophisticated techniques such as Monte Carlo simulation may be employed, running thousands of possible permutations in order to estimate the most likely outcome.

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(W) 16.5 X (H) 22.5 cm Reorienting legacy businesses for growing global in the digital age Legacy Brands: Keeping long-standing brands relevant in the digital age

Rebecca Robins Global Director, Marketing Interbrand

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(W) 16.5 X (H) 22.5 cm The buzz around rising brands and new entrants has focused on the technology sector, where the leading brands are characterised by their relative youth and agility. However, youth is by no means the universal new pretender, and agility is not the exclusive domain of young brands. Long-standing brands combine legacy and customer focus to create real resonance and relevance.

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(W) 16.5 X (H) 22.5 cm Reorienting legacy businesses for growing global in the digital age

The buzz around rising brands and new creativity born from the constraint of entrants has focused on the technology a depression, with an awesome arrival at sector, where the leading brands are #82 and Moët & Chandon, at #99, one of characterised by their relative youth and the oldest brands in the LVMH portfolio agility. However, youth is by no means which dates back to the 18th century. the universal new pretender, and agility Moët & Chandon also tops the five oldest is not the exclusive domain of young brands in the list (accompanied by brands. Long-standing brands combine Colgate, Citi, AXA and Hermès) which legacy and customer focus to create real span a combined legacy of over 1000 resonance and relevance. years. AXA breaks into the top 50 Best To illustrate, half of the Top 10 brands Global Brands this year and Hermès, on this year’s Best Global Brands report one of the top five risers in the report, are more than 50 years old– and three increased its brand value by 22 per cent. of those are well past the century mark The five youngest brands, by contrast, (Coca-Cola, IBM and GE). Aside from (Facebook, Google, PayPal, eBay and PayPal, which debuted after its break Amazon) haven’t yet amassed a century from eBay this year, the report’s new between them. entrants are all well-established Interbrand’s 2015 Best Global Brands brands– most notably Moët & Chandon, report examines what it takes for brands founded in 1743. to succeed in a hyper-fragmented world. In a recent op-ed published by As brand experiences that are both The Guardian, I explore the ways in immediate and personalised are which some of the world’s top brands expected by consumers, business and are harnessing their rich heritage to brands need to move fast in order to remain both prescient and timeless. keep pace. The success of a brand has little to do with a brand’s age, but Legacy brands are back. In the everything to do with its ability to stay vernacular of luxury, you might say they relevant. The question is, what are these are the new black. When Apple legacy brands doing to stay relevant? surpassed Coca-Cola three years ago to take the #1 spot in Interbrand’s Best Global Brands study, it triggered a cascade of commentary on the rise of brands born of a new and different age. However, delve deeper into the study and what’s fascinating is the ascent of brands that have spanned generations. New entrants this year feature ’60s icon MINI, revving in at #98; the LEGO brand, an exemplar of

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(W) 16.5 X (H) 22.5 cm 18th century 19th century 20th century 21st century

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(W) 16.5 X (H) 22.5 cm Reorienting legacy businesses for growing global in the digital age

A common theme is that they have climbed on its first listing on the Milan user-centricity at their core. They are Stock Exchange, and LVMH (owner of using tech to connect with customers in Louis Vuitton and Moët & Chandon) has more meaningful ways. Ultimately they asserted a serious commitment to are succeeding in providing ever more e-commerce. At the same time, Hugo integrated experiences for consumers, Boss is accelerating the cutting of its and blurring the boundaries of traditional e-commerce cloth and Condé Nast is sectors of business as they go. planning to enter the fray with the hotly anticipated e-commerce venture Consider The LEGO brand. It’s a truly Style.com. great example of a brand whose original vision from 1932 has stretched The level of sophistication needed for a beautifully into the 21st century. brand to maintain its presence as one of The journey from toy brand to the world’s most highly valued is not to entertainment brand has been driven by be underestimated– but the principles of the LEGO brand embedding innovation success are fundamental. A brand needs at its core and its fusing of the physical to evolve constantly to stay relevant but and digital. it also needs a centre of gravity, a clear vision and a commitment to stay true to An even more fascinating movement the core of its DNA. A brand still has to among the legacy brands is the find a place in our hearts and minds.* movement across brands– the ‘brand tangos’ that boost their reputations The success of legacy brands also through collaboration. Think the Apple points to a trend in consumers’ tastes: Watch Hermès cross-over. Legacy As individuals’ ecosystems become brands are tapping into tech brands to saturated, those seeking the brands they increase awareness and connect with can trust, gravitate toward authenticity. consumers. Tech brands are tapping Legacy brands with a strong identity, into legacy brands for their heritage who consistently bring the experience of and exclusivity. their brand alive for consumers, are poised to stand out. In the Age of You, The resulting blurring of boundaries heritage that strikes the right chords of increasingly calls into question whether resonance and relevance can be a we will even be defining brands by sector powerful asset. in years to come. Consider Apple’s reach into the traditional domain of financial services with Apple Pay. Collaborations in various manifestations will continue to rise, as brands look to complementary capabilities to exert their influence and desirability. Just this week,

the newly combined Yoox Net-A-Porter *Re-printed from theguardian.com

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(W) 16.5 X (H) 22.5 cm 48

(W) 16.5 X (H) 22.5 cm 07 +12% 08 +6% 09 +14% 22 +12% 23 -5%

+2% 06 230.64 `bn 166.59 `bn +2% +12% 156.78 `bn 21 51.33 `bn 28 ` 01 +11% 50.34 bn 24 +2% 232.21 `bn +8% BEST 10 53.31 `bn 27 +4% 39.20 `bn 742.18 `bn

+3% INDIAN 05 25 +8% 45.72 `bn 29 -5% +8% BRANDS 02 153.88 `bn 41.93 `bn 26 +12% 2016 -17% 236.05 `bn 30 45.49 `bn 38.42 `bn +3% 350.44 `bn 11 +3% 15 +11% 04 +15% 03 31 New 44.31 `bn 39 New

38.34 `bn 139.69 `bn 12 +5% 33 New 349.24 `bn New 101.32 `bn 240.06 `bn 30.53 `bn 38 17.32 `bn

New 16 +6% 14 +16% 13 +10% 32 26.18 bn 134.89 `bn ` New 20 +10% 18.80 `bn 40 34 New 37 New 26.33 `bn 86.85 `bn 115.63 `bn 121.78 `bn 15.22 `bn 19 -10% 58.14 `bn 24.81 `bn +9% New 17 +4% 35 18 20.03 `bn 36 New 66.08 `bn 83.33 `bn 24.39 `bn 82.53 `bn

20.72 `bn

Top Risers New Entrants

(W) 33 X (H) 22.5 cm (Gate Fold) BEST INDIAN BRANDS 2016

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(W) 16.5 X (H) 22.5 cm TATA 1

+11% 742.18 `bn

Once again the Tata Group leads the way a former Airbus and Daimler executive, as India’s most valuable brand. Tata’s brand as CEO and MD. He will be the third expat value has increased by 11% when compared to lead the maker of Nano hatchback after to the prior year. The Tata Group flagship Karl Slym and Carl-Peter Forster. has launched new passenger vehicle models Tata Consultancy Services (TCS), had such as Zest sedan and the Bolt hatchback, another stellar year as it crossed the trillion besides hiring soccer star Lionel Messi as a rupee milestone with a total revenue of brand ambassador to boost sales. As Tata INR 1,08,646 crore which was up by 14.8% Group continues to evolve, it’s announced compared to last financial year. key leadership changes. In January 2016, In December 2015, AIIMS, in partnership Tata Motors appointed Guenter Butschek, with Tata Consultancy Services, launched the transformation of its OPD care delivery with the immediate goal of creating patient-friendly systems and providing easy access to the finest healthcare delivery systems in India. In efforts to restructure its business, Tata Steel decided to sell its poorly performing UK steel business, giving up its nine-year fight to salvage the operations of the business it bought as part of the takeover of Corus at the height of the commodity price boom in 2007. Therefore, it is only befitting the group’s enormous stature that it maintains it rightful place at the top of the Best Indian Brands league table. +8% 2 350.44 `bn

AIRTEL

A family of 200+ million, Airtel is India’s leading telecom company. Its brand value has increased by 8% when compared to the prior year. In August 2015, Bharti Airtel announced the launch of its 4G LTE mobile services in 296 towns across the country. The pan-India commercial launch of Airtel’s 4G services follows the telecom operator’s 4G trials in major cities across the country over the past year. These cities included Delhi, Hyderabad, Visakhapatnam, Madurai, Chennai, Coimbatore and Mumbai. Telecom operator Airtel and taxi-hailing app Uber in August 2015, announced a first-of-its-kind strategic partnership facilitating Uber passengers across India to pay for their trips using Airtel’s mobile wallet service - Airtel Money. In January 2016, Malaysia’s Axiata Group and India’s Bharti Airtel announced they will merge their operations in Bangladesh to create the country’s second largest player behind market leader Grameenphone. Having already captured the Indian market, the company is on its way to growing global.

53 +3% 3 349.24 `bn

RELIANCE INDUSTRIES

One of India’s most iconic growth stories, ` 150,000 crore which aims to transform Reliance Industries, continues to dream lives by making services affordable. big. The brand value of the company The fruition of these investments in the grew by 3% over the past year. Reliance following years is expected to grow the Industries and its shale gas joint venture Reliance brand value significantly. partner Pioneer Natural Resources The legacy clearly is in the phase of Company signed a deal to sell EFS a reinvention to create the next wave Midstream, a pipeline subsidiary, for $2.15 of growth. billion to Enterprise Products Partners. RIL will use the proceeds from the sale of EFS, around $1.07 bn, for further development of its shale gas portfolio as well as repayment of some existing debt. In November 2015, veteran sports marketing and management professional Sundar Raman joined Reliance Industries as its ‘Chief Executive Officer - Sports’ to consolidate and drive the group’s initiative in this area. This year also saw the partnership of Mobile telecoms operator Reliance Communications Ltd. with Reliance Industries Ltd’s telecom unit to trade and share mobile airwaves and offer high-speed 4G services. The group’s telecom venture, Jio, is the world’s biggest start-up with an investment of

54 HDFC BANK 4

+15% 240.06 `bn

HDFC experienced a remarkable increase the dangers of borrowing money from of 15% in its brand value as compared to unorganised sources. This film has been the previous year. It is now India’s best launched under the aegis of Swachch financial services brand. The consistent Banking, the Bank’s CSR initiative for rural rise of HDFC’s Brand is due it moving at India. HDFC Bank also launched ‘sonic the ‘Speed of Life’. In March 2016, branding’ or a musical logo in November HDFC Bank launched SmartUp, a dedicated 2015, to promote the new brand solution for start-ups, to fulfill all their positioning which stresses on the digital banking needs. SmartUp was launched in banking. The ‘sonic branding’ is being association with Zone Startups India (ZSI), included at all the touchpoints like ATMs a Mumbai-based start-up accelerator. and phone-banking application, where HDFC Bank is no longer a bank. It is a customers will hear the tune. market place. In June 2015, India’s most valuable lender rolled out PayZap an app that combines the features of a bank branch and hundreds of e-commerce platforms which could protect consumers’ wallet and ensure that the bank retains its dominance in the retail segment. Customers of HDFC Bank from now on need not separately download Apps of companies such as Flipkart, BigBasket.com, BookMyShow, Cleartrip, Makemytrip, Goibibo and Expedia. HDFC Bank also launched ‘Dhanchayat’ an educational film to raise awareness on +3% 236.05 `bn

LIC

5

India’s largest insurance company, Life Insurance Corporation of India has been breaking norms and traditions for social impact since it was formed under the Life Insurance of India Act, 1956 by the process of consolidation of life insurance businesses of private players. A purpose-driven brand in its own right, LIC, which controls close to 70% of the life insurance market, in February 2016 introduced the third gender as an option in its proposal forms in line with Supreme Court 2014 verdict recognising it. The move is significant given LIC’s market dominance that drives trends in the sector. In July 2015, LIC announced Sarojini Dikhale as new Chief Executive Officer of LIC Nomura Mutual Fund AMC. The new thrust on inclusion and broad basing the category in line with its economic improvement charter saw initiatives like The Aam Admi Bima Yojana (AABY), Pradhanmantri Jan Dhan Yojana (PMJDY) and First Insurance bearing fruit. The New Business from rural areas and a set of such initiatives had a role in improving the Brand Value of the LIC.

56 6 SBI

+2% 232.20 `bn

A global bank with a network of branches in India and foreign offices in 32 countries, State Bank of India (SBI) has been reorienting itself to enhance relevance in the Age of You. Customer-centricity and tech enablement have been the focus. In February 2016, launched ‘Japan Desk’, a first-of-its-kind initiative to facilitate Japanese corporates looking to invest here with banking and advisory services. This SBI Japan Desk serves as a one-point comprehensive and reliable information support source for India-bound investments of Japanese companies. SBI Card, one of India's leading credit card issuers, in September 2015 announced a strategic partnership with seven of India’s biggest e-commerce players for its newest offering, the SimplyCLICK SBI Card. The collaboration is with the leading players in the e-commerce industry – Amazon India, BookMyShow, Cleartrip, FabFurnish, Food Panda, LensKart and Ola Cabs – all front-runners in their respective categories.

57 +12% 230.64 `bn

INFOSYS 7

A global leader in technology services and an organisation’ will enable businesses to consulting, Infosys has a growing continuously reinvent their system presence with more than 197,000+ landscapes and lower maintenance cost employees. The recent years has seen of assets. Coupled with Aikido service serious efforts at strategic upgrades with offerings, Mana will help clients capture the new leadership. This year, Infosys knowledge while delivering new and launched its first mobile base banking delightful experiences to their end users. solution for young customers between the The company also launched Lister, which ages of 12-18, aimed at making banking a is an initiative to identify top performers fun experience, while giving them a sense and link them to senior leaders similar to of financial responsibility. In April 2016, programme at HUL to groom CEOs. Infosys launched an artificial intelligence Furthermore, Infosys launched #Sitwithme platform ‘Mana’ that will help clients drive campaign, recognising the important automation and innovation. The company role that women play in creating said that the platform will bring machine future technology. learning together with ‘deep knowledge of ICICI 8

+6% 166.59 `bn

The private sector lender ICICI Bank in January 2016, announced that it had entered South Africa by opening a full service branch at Sandton in Johannesburg ICICI is committed to simplify the life of its customers – an effort resonating with the theme of people using brands increasingly to improving life experiences. As such the Bank, has announced its association with Chinese e-commerce giant Alibaba.com for the launch of a trade facilitation centre, a single window facility to provide easier trade finance to the small and medium enterprises (SMEs) in India. ICICI Foundation launched a campaign for the ICICI Academy for Skills’ nationwide referral programme, ‘Gift A Livelihood’. The programme invites people to refer deserving but underprivileged youth to be trained at the academy. The academy, since inception in 2013, would have trained and placed 36,000 youth across its 22 centres by March 2016.

59 +14% 156.78 `bn

9 Mahindra

Their story was cast in India’s steel burgeoning aerospace and defense industry in 1945, and today, they are a ecosystem. Significantly, one of the US $17.8 billion global federation of frontrunners in the Indian brands’ journey companies. Mahindra’s brand value has for global admiration, Mahindra has begun increased by 14% compared to prior year. to see itself leading the international auto This year the key highlight for Mahindra sector trends such as Shared Mobility, was the launch of fourteen new products. Renewable Energy Tech and Mahindra is growing global as it gears up Autonomous Vehicles through its to make its debut on U.S. two-wheeler Priority Farm Segment. market. Mahindra hopes to win over city and campus dwellers with a Vespa-like electric scooter called the GenZe, which goes on sale this fall in California, Oregon and Michigan. In a boost to Prime Minister Narendra Modi’s ‘Make in India’ initiative, Airbus Group announced to award aero-components production contract to Mahindra Group. Announcing the contract award during the 2015 Paris Air Show at Le Bourget, senior representatives of the Airbus and Mahindra groups mentioned that this contract validates the two Groups’ commitment to accelerate India’s participation in the global aerospace industry while simultaneously creating high-growth opportunities within India’s

60 Godrej 10

+8% 153.88 `bn

With a vision of being ten times the size The 119-year young company, with an that they were in 2010, the Godrej Group exemplary repositioning of its master has secured its place amongst the top 10 brand continues to ‘Brighten’ almost Best Indian Brands. In February 2016, every aspect of the average Indian’s life. Godrej Consumer Products (GCPL) acquired a majority stake in Kenya-based home and personal care company, Canon Chemicals. The deal will help GCPL build its presence in the Sub-Saharan Africa market, where it has annualised revenues of $200 million. This year, GCPL launched new products such as: Godrej aer pocket (a slim gel technology bathroom air freshener), Control Deostick (a unique cream based deodorant) and Soft & Gentle zero per cent aluminium deodorants (UK’s first aluminium-free anti-perspirant deodorant). Godrej Properties is creating a name for itself as it achieved the highest sales in a financial year, with a booking value of INR 5,038 crore. This was the highest achieved by any publicly listed real estate developer in India in this financial year. Furthermore, Godrej Properties has also launched mixed-use development project, ‘The Trees’ in Mumbai.

61 Wipro +3% 11 139.69 `bn

Wipro is globally recognised for its invest in start-ups with cutting-edge innovative approach towards delivering capability. This fund will operate in business value and its commitment to concert with their existing M&A sustainability and social purposes. programme that aims to fill-in any gaps This year Wipro announced the in market or technology presence. appointment of Mr. Abidali Neemuchwala In September 2015, Barclays Premier as Chief Executive Officer and Member of League club, Chelsea FC has announced the Board of Wipro Limited. The company Wipro as its digital and IT partner. has invested in a cognitive AI platform Wipro will look to create digital and called Holmes. Wipro has also invested in technology experiences on-ground as developing Intellectual Property around areas that they believe will impact their well as digitally. Wipro also launched a business especially around Customer programme on education of children with Journey Engineering, Machine Learning, disabilities, supporting the needs of 1350 and Autonomous Management. To enable underprivileged children through five strategic focus and closer engagement, projects in Bengaluru, Pune, Jaipur Wipro has launched a $100 million and Hyderabad. corporate venture capital fund that will

Larsen & Toubro +5% 12 134.89 `bn

This year L&T has announced some key orders worth ` 1038 crores in the leadership changes. In August 2015, international and domestic markets in L&T appointed Mr. Subramanian Sarma as November 2015. Larsen & Toubro Saudi Chief Executive and Managing Director of Arabia LLC, a fully-owned subsidiary of LTHE. He is also on the board of L&T as a L&T, has bagged an order valued at Non-executive Director. The company has SAR 405.75 million (USD 108.2 million) also expanded its board of directors by for the construction of five 132 kV inducting former L&T Infotech CEO sub-stations at Hail area from the Mr. Sudip Banerjee as independent National Grid, Saudi Arabia, a subsidiary director. Additionally, the company of Saudi Electricity Company. continued the legacy of scale infra projects. The Power Transmission & Distribution Business of L&T Construction has won

62 Bajaj Auto +10% 13 121.78 `bn

Bajaj Auto is a homegrown brand that is Pulsar AS 200 & 150 and the exciting firmly entwined with the Indian Avenger Cruise 220 and Avenger Street development narrative. In a challenging 220 & 150. In February 2016 Bajaj Auto environment for the automobile industry, launched the V15, a 150 cc bike, to create a Bajaj Auto maintained positive momentum new and differentiated model for the large as a result of a well-crafted strategy – mass commuter segment. The commercial Superior Customer Value through vehicles business has shown impressive differentiated products and strong brand. results too on the back of its significant By the introduction of new products such improvement in the big diesel as the CT100 and the new Platina, they 3-wheeler segment. Its latest innovation have strengthened their position in the Bajaj Qute is exported to over 20 markets entry-level segment. In the sports segment across the world, however, it is yet to be Bajaj has enhanced their leadership position released in India as it has been caught in through the launch of the Pulsar RS 200, an ongoing court case.

Maruti Suzuki +16% 14 115.63 `bn

This year Maruti Suzuki’s brand value has mild hybrid version of mid-sized sedan increased by 16% compared to the prior Ciaz. With smart hybrid, Ciaz has gained year. Democratising the high-end auto the top slot in fuel-efficiency of 28.09 km features and armed with a clear strategy to per litre, and is now the country’s most upgrade in the value chain with a brave fuel-efficient car. In March 2016, channel strategy, the top Indian car maker Maruti Suzuki launched the much-awaited has moved aggressively to capture the Vitara Brezza in India. The carmaker’s first premium hatchback segment share. sub-4 meter SUV for the Indian car market, Maruti Suzuki in October 2015, launched it was developed over a period of five years the Baleno at a starting price of INR 4.99 and features a localisation level of lakh for the petrol version. Marking its foray 98 per cent. into the new eco-friendly technology segment, Maruti Suzuki India launched the

63 Axis Bank +11% 15 101.32 `bn

Creating better micro-experiences through the Bank also launched a debit card, customer-centricity, co-branding and Secure+, that will allow you to switch on or digital play has been at the heart of the off your card, the way you can switch your great story of this re-branded institution. laptop or mobile phone on and off. Axis Bank launched Ping Pay, India’s first In December 2015, the country’s third multi-social application launched to largest private sector lender said it has enable peer-to-peer transfer of money/ launched a ‘display variant’ debit card recharges through social media platforms which does away with the hassles of like Whatsapp, Facebook and Twitter. generating one time password (OTP) over Axis Bank has also joined hands with SMS while transacting. The card, which is Tata-SIA joint venture airline Vistara to being made available for high-value NRE launch a travel credit card under a customers, has an embedded EMV chip, strategic partnership. The co-branded a display screen and a touch-sensitive travel credit card, will offer a host of button that helps generating the OTP on privileges and benefits to the business and the card itself. leisure travellers of Vistara Furthermore,

ITC +6% 16 86.85 `bn

ITC’s Cigarettes business remained ‘Vivel Cell Renew’ brand. During the year, subdued during the year due to John Players featured amongst the top 5 unprecedented legal pressure on the ‘Most Exciting Brands’ in the apparel cigarette industry in India on account of category in Brand Equity’s survey the cumulative impact of steep increase in published by The Economic Times. taxation and intense regulatory pressures. ITC’s Hotels Business continues to be The Personal Care Products Business rated amongst the fastest growing launched several differentiated product hospitality chains in India, with over 100 offerings during the year including ‘Fiama properties across the country under four Di Wills Double Moisturizer Bathing Bar’, distinct brands. ITC Grand Bharat, Gurgaon ‘Vivel Neem’, ‘Superia Silk Cherry’ bar has been ranked No. 4 among the ‘Top 100 soaps and a regimen of skin care products Hotels & Resorts of the World’ and No.1 such as ‘Makeup Cleanser’, ‘Clarifying Skin amongst the ‘Top 25 Resorts in Asia’. Toner’ and ‘Night Cream’ under the

64 HCL +9% 17 83.33 `bn

One of the fastest risers of the recent years, up with Manchester United to become the HCL Technologies Ltd. announced that it football club’s official digital transformation has acquired the external IT (information partner. HCL Technologies Ltd. also technology) business of Sweden’s Volvo announced the acquisition of UK’s Point to Group. Approximately 2,500 highly skilled Point Ltd. and Point to Point Products Ltd. people working for the Volvo Group will for GBP 8 million (approx ` 78 crore). transfer to HCL across 11 countries. HCL Technologies Ltd., said it will launch The deal is one of the largest IT deals an incubation centre for the Internet of signed by any Indian IT company, and Things in partnership with Microsoft Corp. a first in the industry to use principles of in Redmond, Washington. The aim is to Vested Sourcing as the basis of the build advanced solutions based on relationship for an IT outsourcing machine-to-machine (M-2-M) technology, engagement of this size and magnitude. in areas such as industrial manufacturing, This addition enables HCL to achieve an life sciences and healthcare. even stronger presence in the Nordics and HCL Technologies Ltd. today announced the wider European region, and acquisition of UK’s Point to Point Ltd. and accelerates its journey in these markets. Point to Point Products Ltd. for In September 2015, HCL Technologies tied GBP 8 million (approx. ` 78 crore).

Hero +4% 18 82.53 `bn

Hero MotoCorp, world’s largest 2-wheeler June 2015 was named as the new title manufacturer unveiled its first in-house sponsor of the Caribbean Premier League developed motorcycle, Splendor iSmart 110, (CPL) for a period of one year. With this at the 13th Auto Expo in February, 2016. sponsorship, the much-awaited third The firm also unveiled three other vehicles, season of CPL will be known as the premium segment sports bike Xtreme 200 S, ‘Hero Caribbean Premier League’. As part design concept bike XF3R and an electric of its global expansion drive, 2-wheeler scooter concept Duet-E. Mr. Pawan Munjal major Hero MotoCorp plans to set up was named the new Chairman of Hero manufacturing facilities in Mexico, MotoCorp after an unfortunate demise of Argentina and Brazil and expects to founder Mr. Brijmohan Munjal. Hero utilise the new Colombian plant as a MotoCorp Ltd., in September 2015, opened hub to export to nearby countries. its first global manufacturing facility at Villa Rica in Colombia. The company, in

65 ONGC -10% 19 66.08 `bn

Oil and Natural Gas Corporation Limited prices and weak natural gas prices have (ONGC), India’s largest oil exploration and caused a fundamental change in the production company, has retained its energy industry, and the sector’s ability brand position at No. 19 this year. to generate cash flow has fallen The brand experienced a 10% drop in its substantially. In December 2015, ONGC brand value this year. With the Government also suffered INR 7,995 crore loss for poor cutting domestic natural gas prices, rig management. ONGC’s shares were trading lower on the BSE. “Oil prices have dropped substantially, reflecting continued oversupply in the global oil markets, very high inventory levels and additional Iranian oil exports coming on line”, ONGC said. A slow recovery in oil prices is expected over the next several years, the drop in oil

Asian Paints +10% 20 58.14 `bn

In a vast and diverse market like India, industries – has announced that it received Asian Paints is still double the size of any an engineering, procurement, construction other paint company in the country. management (EPCM) contract from Asian Driven by a strong customer focus and Paints Limited (APL) to provide engineering innovative spirit, the company has been services for a greenfield paint plant in a market leader since 1967. The Brand with India. In September 2015, Asian Paints strong presence and engagement has been (International) Ltd. has transferred the exemplary in responsiveness through this entire holding in its subsidiaries to Berger year as well. In December 2015, International Limited, Singapore to Jacobs Engineering Group Inc – the consolidate investments of the company in US-headquartered company that provides overseas subsidiaries. As such this year industrial maintenance, fabrication, Asian Paints has experienced a 10% construction and maintenance increase in its brand value. management technology to mainly process

66 Bank of Baroda +2% 21 53.31 `bn

Building on its position of India’s Global new-age products like the Chillr Mobile, Bank, Bank of Baroda buttressed its squarely targeted at the mobile-first formidable network of branches in India generation. The Chillr app lets Bank of and its international presence with a higher Baroda customers instantly transfer money ladder of social interaction. Albeit a to their phone book contacts without the comparatively late entrant, it broke into the need for their account details. virtual space by launching its presence on platforms such as Facebook, Twitter and YouTube. The digital access to customers has increased through the expansion in touchpoints like 24x7 Non-Stop Lobes. OneInALeap, a social media contest on Facebook and Twitter was launched, to enhance visibility and build engagement with a new, younger set of customers. In the same vein, the Bank also launched

Idea +12% 22 51.33 `bn

Idea saw a 12% increase in their brand In the communication space, Idea is value compared to the previous year. In line constantly pushing the thought of a Better with the rest of the telecom market, India forward. It leveraged the digital Idea came to the 4G LTE party, quickly connect with its audience base and expanding the service to 116 million Indians. devised a digital amplification strategy with the #IndiaSharesIndiaCares initiative in The interesting part is how Idea seems collaboration with Mindshare and Affinity to be getting into adjacent areas, to Network. As part of this initiative, people encourage data usage. Their February 2016 were asked to select a cause which they announcement of a JV with group firm would like to address using Twitter polls. Aditya Birla Nuvo, to set up a payments The next step was to share data with an bank, is one such example. NGO that works for the chosen cause.

67 Reliance ADAG -5% 23 50.34 `bn

Reliance ADAG, owing to its legacy and with Reliance ADAG’s brand value vast presence across several domains, actually dipping 5% as compared to remains a popular brand in India. In the the previous year. year gone by, Reliance Communications undertook a number of initiatives like partnering with with global IoT leader Jasper to power next-generation IoT businesses. It continued to build on the telecom space with a new open market partnership with Huawei to bring a new portfolio of mobile broadband devices for Reliance 3G customers. However, the telecom space being as competitive as it is, these initiatives still fell short,

Tanishq +2% 24 45.72 `bn

India’s premier jewellery retailer continued making Tanishq’s relevance even stronger. to improve its engagement with the At the same time, these collections new-age, urban Indian consumer. continue to build the brand’s authenticity Following the success of its work-wear as the definitive Indian jewellery brand, jewellery collections, Tanishq turned its while deepening engagement with its set of focus on the high-value, premium diamond loyal customers. jewellery space, with the launch of the ‘Queen of Hearts’ collection.

This, along with other collections like the Niloufer Collection, provide the discerning Indian consumer a wide range of jewellery options across price, occasion and style –

68 ZEE +8% 25 45.49 `bn

Zee Entertainment Enterprises Limited, realised that in the entertainment world, amongst the largest producers and good, meaningful content is what ultimately aggregators of Hindi programming in the drives engagement with viewers Zee world, boasts an extensive library housing Theatre, the new content vertical of ZEE, over 222,000 hours of television content. became the first Indian media and Through its strong presence worldwide, entertainment firm to foray into theatre ZEE entertains over one billion viewers production. ZEE continued to build across 171 countries in the world. relevance in the vast, but fragmented What made the year significant for ZEE is Indian market by acquiring the Odiya the launch of a new video on demand channel Sarthak. On the back of its platform, OZEE. The launch finally takes success, it is now looking for opportunities Zee Entertainment into the newer screens in the Malayalam and Bhojpuri space. that content is consumed on, and helps build relevance for the brand, especially with the new-age, mobile-first viewer. In the same vein, ZEE seems to have

Dabur +12% 26 44.31 `bn

From healthcare to personal care to food professional salon facial products under and many more in between, Dabur has the OxyLife brand – OxyLife Salon given birth to iconic brands like Real, Professional ProWhite Pure Oxygen Facials Hajmola, Chawanprash, Vatika, brands for women and men. All these initiatives which have become household names mean that the age-old brand is finding new across India. In 2016, Dabur introduced its ways to connect with its rapidly evolving new premium baby care brand ‘Dabur customer base. Baby’. Furthermore, this year also saw the national launch of Hajmola Yoodley, which marked the extension of brand Hajmola into the ready-to-drink beverage market. The year also saw the expansion of Dabur’s Skin Care portfolio with the launch of

69 UltraTech +4% 27 41.93 `bn

UltraTech is the largest cement player in UltraTech is also leveraging corporate India and the fourth largest on the citizenship to build its brand. It has been world stage (excluding China). UltraTech identified as an Indian leader for the continued to innovate to build differentiation quality of climate change related in what is essentially a commodity space. information that it has disclosed to To address India’s problem of creating investors and the global marketplace good quality roads, UltraTech, introduced through CDP India, a not-for-profit the concept of White Topping, organisation that drives sustainable which provides cost-effective concrete economies. As a result, UltraTech Cement overlay over existing roads in less time. has been awarded a position on the Indian Similarly, for the congested pockets of the Climate Disclosure Leadership Index country, which cannot be served by transit (CDLI), released in the India Climate mixers carrying ready mix concrete, they Change report. developed UltraTech Concrete Zip, a pre-mixed concrete available in buckets for small concreting jobs.

Kotak +12% 28 39.20 `bn

Perhaps the most significant event customers of the erstwhile ING Vysya Bank. contributing to the rise in Kotak’s brand Besides building on presence, Kotak value is its merger with ING Vysya Bank. continued to improve its relevance to Not only did this greatly improve the Bank’s customers and through its numerous presence (and hence, the trust amongst tie-ups and joint ventures. customers), what was notable was the way the transition of ING Vysya to Kotak was carried out. Gradual and practically seamless, the transition was signaled by the highly memorable ‘Kona Kona Kotak’ (Kotak in every corner) campaign that not only signaled Kotak’s improved presence but, more importantly, reassured the

70 Punjab National Bank -5% 29 38.42 `bn

As the Reserve Bank of India’s clean-up Traditionally perceived as a solid brand that act hit the banking sector hard, this year brings trust, PNB clearly needs to translate Punjab National Bank was one of the worst some of that trust into action. Its sale of hit on account of its NPAs. Its brand value ` 3,000 crore worth of bad loans to Asset fell 5% over the previous year. The story Reconstruction Companies in February was mirrored in the stock market as well, 2016, is a step in the right direction. as the Punjab National Bank stock more than halved in the last two years. What’s worse is that the stock still remains at a significant risk, with bad loans creeping up from 2.9 per cent in 2011-12, to 6.5 per cent of loans by 2014-15. The Bank reeled under high delinquencies due to lending to troubled sectors in the past.

Adani -17% 30 38.34 `bn

Adani earns the distinction of being the environmental clearance to its ambitious biggest loser in this year’s Best Indian Hazira Port Project, weighed heavily on Brands table. The Adani Group’s brand Adani’s financial performance. value fell by as much as 17%. The Group has been dogged with a number of issues that are causing delays in its projects. Its investments into capital intensive industries like power (it completed the acquisition of Udupi Power Corporation Limited for ` 6,300 crores in April 2015 – the largest acquisition in the thermal power space in recent times) and setbacks like the National Green Tribunal quashing

71 Britannia New 31 30.53 `bn

Marking its entry into the Best Indian packaging. As Britannia continues to Brands 2016, Britannia Industries – one of build differentiation and relevance in its India’s favourite biscuits company – is traditional categories, the challenge for slowly transforming into a total foods the brand to stay ahead of the curve company. Already the ‘go-to’ biscuits would be to leverage its formidable brand for millions of Indians, Britannia authenticity to make meaningful forays continued to innovate with a number of into other adjacent categories to stay variants of its popular brands including relevant to changing consumer Pure Magic Chocolush, Pure Magic Choco tastes and preferences. Deuce, Tiger Glucose Chocolate and Tiger Cashew Cookies. At the same time, Good Day, the company’s biggest brand, underwent a comprehensive re-launch with a differentiated product, new advertising campaign and fresh new

IndusInd Bank New 32 26.33 `bn

IndusInd Bank stands tall today as one of services like ‘QuickPay’ – an instant money the reputed banking brands in the country. transfer solution, ‘On the go’ social banking As of March 31, 2016, IndusInd Bank had that lets you transfer money using social 1,000 branches and 1,800 ATMs spread media, ‘Swiftpay’ – a one-stop solution across 623 geographical locations in the for easy bill payments and made the country. IndusInd Bank is moving towards ‘IndusMobile’ app more consumer intuitive. opening 1,200 branches by March 2017. These initiatives help the brand stay Like many of the other leading BFSI brands, relevant to a consumer that no longer views IndusInd Bank unveiled new technological the branch as the only channel to access initiatives, particularly in the areas of digital his or her services. capabilities. In this context, the Bank formed a strategic partnership with PayU India, apart from launching a host of digital

72 Kingfisher New 33 26.18 `bn

Continuing to build on its rich heritage Of course, the brand did have its share of and legacy, at least in the beer space, troubles owing to the rub-off from the Kingfisher built on its product portfolio Kingfisher Airlines fiasco and the woes of with variants like Kingfisher Ultra MAX, a its beleaguered owner, Vijay Mallya. strong beer with a refined taste. In order to However, with Dutch beer giant Heineken build inroads into newer consumer appointing the investment bankers to help categories, Kingfisher extended the brand increase its stake in UB, it is yet another into the ready-to-drink (RTD) beverage sign that beleaguered liquor baron space, with Kingfisher Buzz. With the Vijay Mallya’s hold over the last big launch, Kingfisher is venturing out of its company of his once flourishing business traditional strongholds to take on the likes empire is under threat. Perhaps the brand of Bacardi Breezer (which so far was the might soon shake off the gloom and only product in that category). emerge stronger than ever.

Yes Bank New 34 24.81 `bn

Yes Bank builds its pillars around growth, the Women Entrepreneurs Opportunity trust, human capital, innovation and Facility (WEOF), the first-of-its-kind global technology, transparency and responsible facility instituted by IFC and Goldman banking. The Bank continued to expand Sachs dedicated to expanding access to its branch network and now has over capital for approximately 100,000 women 860 branches and over 1,600 ATMs across entrepreneurs. Yes Bank also strengthened all 29 States and 7 Union Territories of India. its position in Digitised Banking on social media with the launch of YES TAG - a Attempting to make inroads into newer first-of-its-kind smart social banking customer segments, the Bank signed a application that allows customers to US $50 million loan agreement with IFC perform banking transactions seamlessly Washington to lend exclusively to women on Twitter, Facebook Messenger, WeChat, owned businesses. This project was part of Telegram and Skype.

73 NTPC New 35 24.39 `bn

State-owned power generator NTPC plant in Andhra Pradesh as a part of continues to grow from strength to Chief Minister’s initiative of making the strength. It will build India’s biggest power state a solar power hub. plant with an annual generation capacity of 6,400 megawatt (in a joint venture with Jharkhand state utility, an example of a big ticket public investment which most economists say is needed to kickstart the investment cycle. The project will be set in two phases of 4,000 Mw, which was announced in May 2015, and 2,400 Mw to be taken up later. NTPC is also making forays into green power sources, and is planning to set up a 4000 Mw power plant at Puttaparthi and a 2250 Mw solar power

Union Bank New 36 20.72 `bn

Banking in India since 1919 with 3,500 into tie-up arrangement with Livestock and branches, Union Bank offers a wide range Crop Registry India Limited (LCRI), which of Personal Banking, NRI, MSME, provides an authenticated registration Corporate & Rural Banking Services. system for Livestock (with UID) and crops. The Bank continued to build on its Through this, the Bank can keep track of presence, adding, 124 new branches in the financed animal, purchase price, and India in the last year. As a swathe of Indian breed purity and progeny. banks reeled under the Reserve Bank of India’s clean-up drive, Union Bank seems to have weathered the storm quite well. The Bank deepened its penetration into the rural parts of India, especially with financial solutions for livestock farming. It entered

74 Canara Bank New 37 20.03 `bn

Canara Bank expanded its asset base to The Bank built on its corporate citizenship well-diversified segments of the economy, initiatives by undertaking an ambitious like, Agriculture and Micro, Small and project of providing De-fluoridation – RO Medium Enterprises (MSMEs), Retail, plants for pure drinking water facility in 217 including Housing, Education, Vehicle and Fluoride-affected in Karnataka. For this, other productive segments. Aimed at and other pioneering work done through its improving efficiency, public sector CSR initiatives, Canara Bank received the Canara Bank’s board has organisational Golden Peacock Award which is restructuring by moving to ‘4-tier system’ considered the Holy Grail of Corporate that allows the lender to set up regional Excellence worldwide. offices for a better connect with branches across the country. This would translate to a better presence and deeper engagement with its existing customer base.

Ashok Leyland New 38 18.80 `bn

The second-largest commercial vehicle for the transportation of children. manufacturer in India, Ashok Leyland With innovative industry firsts like makes its debut in this year’s Best Indian anti-bacterial seats and happy, joyful Brands. An unwavering focus on the graphics inside the bus, Sunshine customer and their need – summed up by exemplifies the responsiveness of the their tagline “Aap Ki Jeet, Hamari Jeet” company not just to its primary customer (“Your Success is Our Success”), (the bus owner), but the secondary customer Ashok Leyland impressed with its (parents of school children) as well. As the performance in the market – it achieved a company looks beyond India’s shores for 39% increase in sales turnover at growth, it announced an expansion of its INR 18,822 crores compared to unit in Ras Al Khaimah (RAK) in the United INR 13,562 crores, last year. Perhaps Arab Emirates (UAE) with an investment of nothing epitomises Ashok Leyland’s $10 million. Manufacturing in the markets customer focus more than Sunshine, an that it serves allows the company to stay industry first model in the school bus closer to its customers, and hence build segment, designed to be the safest bus relevance and trust.

75 JSW New 39 17.32 `bn

A $11 billion conglomerate, with presence a veteran of rival Tata Steel, as President across India, USA, South America and for its steel plants in Maharashtra as Africa, the JSW Group is a part of the O.P. Chairman Sajjan Jindal prepares to scale Jindal Group with strong footprints across up the company after a tough year of core economic sectors, namely, Steel, competing with cheap Chinese imports. Energy, Infrastructure, Cement, Ventures JSW Group is looking at investing around and Sports. JSW Energy acquired ` 10,000 crore over the next five-seven Bina Thermal Power from JP Power. years at Salboni in West Bengal. This will This would be the third acquisition by involve setting up a 1,320 Mw coal-based JSW Energy in the past one year that power plant, a 4.8 million tonne cement would almost double its power generation plant and possibly a paints factory. capacity to 6,000 Mw from the current 3,140 Mw. Another 8,630 Mw of capacity is under development. In March 2016, JSW Steel appointed Partha Sengupta,

Jindal Steel and Power New 40 15.22 `bn

JSPL is an industrial powerhouse with a and African Region. This enabled Jindal dominant presence in steel, power, mining Shadeed to become the largest integrated and infrastructure sectors. Part of the steel maker in Oman with a 2 MTPA Steel US $18 billion OP Jindal Group this young, Melting Shop (SMS) and 1.4 MTPA Rebar agile and responsive company is constantly Mill. JSPL has partnered with the Bhasin expanding its capabilities to fuel its fairy Group for the first high-rise steel building in tale journey that has seen it grow to a Noida the Festival City at MIST Avenue. US $3.3 billion business conglomerate. The 33-storied world-class commercial Jindal Steel & Power was ranked No.17 complex, spread over nine lakh square among World Class Steel Makers as per feet, will be built by harnessing World Steel Dynamics, USA. This year, international cutting-edge technology, Jindal commissioned a 1.4 MTPA Rebar using JSPL’s E550 MPa Fabricated Mill in Sohar, Oman, the largest in the Gulf Structural Steel columns and beams.

76 77 78 A breakthrough brand mindset to grow global

Why can’t Indian brands grow global by replicating the success of their start-up brands?

Gonzalo Brujó Chief Executive Officer, EMEA & LatAm Interbrand

79 Taking into account that India is the achieve the best global benefit. second most populous country in the Taking the example of the world's most world, it seems reasonable to assume recognised European brands – such as that it will also be one of the most Santander, AXA, Zara, VW, ‎Siemens, diverse in terms of different cultures, GSK, Real Madrid, Renault or Philips– religions, languages and more, which have demonstrated that their brand value means enough challenges for the local remains high and continues growing businesses in the market. because the customer is the centre of their activity and they have a solid Indian society is experiencing a fast brand strategy aligned with their transformation which is fundamentally business goals. influencing consumer needs and preferences and the role of brands. As this year’s ranking shows, there is At the same time, significant global an urgent need to adapt as soon as opportunities are emerging for Indian possible, all the technological companies. To take advantage of these advancements. Innovation will prove opportunities Indian brands have to critical to the globalisation efforts, as constantly adjust its efforts to stay well as all improvements in operational locally relevant, while increasing their efficiency and the ability to harness the global engagement. Any Indian brand skills of leading international talent. that wants to become global has to Indian brands are aware that the main consolidate world culture and universal unresolved issue is to fully standards and quality canons along with internationalise so that they are known the local needs. outside. It is need to plan their global Over the past twenty years, the growth considering their organisation economies of China and India have structure, culture, financial aspects witnessed unmatchable development, and macro-economic conditions. enjoying an average annual growth of They should leverage the experience of 10% and 6.7%, respectively. Although consultants advising on global growth, both, China and India are considered develop a brand discipline, take powerful economies in Asia, the Chinese advantage of associations with the economy is more developed than that of country-of-origin and take brands as India. While China previously introduced the centre stage in the company. into the global market, India was slow in It is not always easy to undertake and embracing globalisation. However, achieve a deep change, but it is shown nowadays Indian companies are that brands that take risk and have a spreading all over the world, some solid strategy, often succeed. Thanks to succeeding tremendously fast. the Internet, global reach is no longer The challenge in adapting still remains, reserved for deep-pocketed brands, nor however, in how to best leverage the is it an incredible hassle for marketing information gathered from consumers to managers. Obviously, consumers will

80 increasingly be looking for the best brands around the world, no matter where they originated. It is in this perspective that there is a different approach to try as well. We are indeed living in exciting times of start-ups and Breakthrough Brands. Brands that are moving at the speed of life and helping people design their lives using the customised and better micro experiences through brands. India, due to its human capital and the entrepreneurial culture is inherently tech savvy and is already seeing an explosion of breakthrough brands. It’s why there are 3 Indian brands in our recently announced Breakthrough Brands 2016

No Indian brands yet in the Best Global Brands list yet and three Indian brands in the inaugural Breakthrough Brands Report itself! Why can’t the Best Indian Brands and Businesses think more like a start up? Why can’t the large corporates replicate the success of their Breakthrough Brand counterparts embracing the start-up mindsets to reinvent and grow their businesses and brands?

Report. Is there something to read in At Interbrand we want Indian companies there? No Indian brands yet in the Best and brands to succeed through Global Brands list yet, and three Indian breakthrough growth, working together brands in the inaugural Breakthrough to create connected experiences and Brands Report itself! Why can’t the Best strong relationships with the customers. Indian Brands and Businesses think As a leading brand consultancy, we more like a start-up? Why can’t the large believe that there is something better corporates replicate the success of their in it for us, our clients, our partners and Breakthrough Brand counterparts for the world. In India our final goal embracing the start-up mindsets to is to grow Indian brands and reinvent and grow their businesses businesses globally. and brands?

81 82 Breakthrough growth

Growth is a natural, human force that compels us to push, disrupt, challenge, and change– to drive humanity forward. And as inherent as it is to people, it’s critical for brands and businesses.

Jez Frampton Global Chief Executive Officer Interbrand

83 Breakthroughs reflect the times we are in– the Age of You– when brands and businesses need to move faster than ever before. That’s because they are expected to move at the speed of people’s demands– at the speed of their lives. Breakthrough Growth

Whether it’s about upping the bottom Brands are built on that premise– line, expanding reach, connecting to often because the restlessness of more people, building stronger cultures, their founders led them to a new solving a critical problem, or even breakthrough–and they demonstrate it gaining investment that propels an idea daily. They build it into their very culture: forward, Breakthrough Brands are all rejecting bureaucracy, discovering and about growth. fostering new ideas, and accelerating Breakthroughs reflect the times we are decision-making so they can race to in– the Age of You– when brands and market. Breakthrough Brands set the businesses need to move faster than pace for the market– and for all other ever before. That’s because they are brands– particularly when they reflect expected to move at the speed of the pace of people. people’s demands– at the speed of their So, the most successful emerging lives. It’s an age defined by the fact that companies put people at the centre of people want to be in control or, more their business. They know that people specifically, to personally design the life hold brands to incredibly high they want to live. And people are using expectations– for better choices, richer brands to do it, because brands are the experiences, meaningful narratives, vehicles through which things happen. one-on-one attention, new form factors, and personal progress and fulfillment. Start-up at the speed of life They understand how data and It goes without saying that agility, technology change the definition of flexibility, and adaptability are invaluable service and connectivity and the demand characteristics for brands and from people for greater and more businesses to grow. Breakthrough nuanced choices. Brand begins in incubation into the brand and business. From the moment a brilliant idea is born, Breakthrough leaders understand that a breakthrough knows its brand and brands are not an exercise in vanity, that understands that it’s not just a unique the brand and business strategy are one business model that helps them and the same. And that the brand is the succeed– it’s the fact that it’s developed experience is the brand. in tandem with the brand. That they are inseparable. Because great brands grow Focus breeds excellence great businesses, which in turn grow Breakthrough brands cut to the heart. great brands. Whether the ambition is to be better than That doesn’t mean a logo or even the others, or completely different from others, name (although they often have an early they are ruthlessly focused on a clear idea of both and more): it’s about goal, on a core purpose, and are often purpose, the experience it delivers and brilliant at one thing. Even as they expand, how that connects very deeply to people. or even acquire, what they offer, everything That’s the definition of brand– and it’s they do reflects that focus. They don’t try coded into Breakthroughs’ DNA. to be all things to all people, because Founders of emerging companies that they know they can’t do that without build a business and a brand together, sacrificing their authenticity– what made from day zero, are the ones that pull them a breakout hit with people in the ahead of the pack– they are the first place. standouts, the leaders, and the fastest Breakthroughs manage their growth by growing, even when their offerings may balancing strategic and on-brand be comparable to others. They are the decisions with ambition and a little ones that people embrace and hold up fearlessness. That doesn’t preclude as the benchmark– and even as the unusual moves or surprising new original. ventures– it just means that everything they do is tied to a core idea and The brand is the experience is the purpose. brand One does not precede or compete with Working with the co-petition the other. Great experiences are born as The rules, in the Age of You, have breakthroughs translate their unique changed. There’s no one model for model or platform into experiences that success, no one way to make an impact, catch the attention of the public. The brand, no limit for experimentation and and its core purpose in the world, guides growth– and no slowing down. That has the creation of that experience. In turn, bred a generation of leaders who want to as it resonates with people, the do it their own way– without experience builds value and equity back

86 Breakthrough Growth

compromise– which in turn has yielded an unprecedented number of start-up brands. Some will push ahead, some may simply pave the way for others, but as more and more emerge, the competitive landscape continues to change. That’s led to a new type of collaborative competition– or co-petition– where partnerships and affinity lead the way. Breakthrough Brands are setting a new standard of how to work with others for mutual success. In their pursuit to grow global, Indian brands can learn from the Breakthrough Brands that are accelerating the rate of innovation and problem solving, and are setting the pace for growth. 88 Thinking like a start-up to accelerate global growth

Judy Lee Head of Creativity & Brand, North America, Facebook

89 Breakthrough Brands grow fast, get big sales, and garner headlines. There are companies who had marketing as part of their strategy from the very beginning, and they seem to innovate every step of the way. How do they do it? Learning what makes a Breakthrough Brand stand out, and applying those lessons to your own business, can revitalise your marketing and lead to more growth.

Consumers today are marketed to, more Learning what makes a Breakthrough than ever. They are bombarded every Brand stand out, and applying those moment with messages for websites, apps lessons to your own business, can and content. That much choice means revitalise your marketing and lead to opportunity, but it can also mean noise. more growth.

However, some companies are not only It’s never too late to break through. surviving, they’re breaking through the Growth Barrier. Breakthrough Brands Mobile-first mindset grow fast, get big sales and garner headlines. There are companies who had It used to be enough for a business to marketing as part of their strategy from have a mobile-friendly website, or emails the very beginning, and they seem to that looked good on smartphones, but innovate every step of the way. How do today’s Breakthrough Brands are built they do it? from the very beginning to be mobile.

90 Thinking like a start up to accelerate growth

Think trailblazing brands such as Uber The new marketing and Lyft. Reaching a mobile audience Traditional advertising– which used to has been central to their success. exist in silos and was defined by the Geography, infrastructure and marketing funnel– is breaking down. distribution all go away in a mobile-first It’s no longer about brand versus world. This plays to the strengths of performance, marketing versus sales and Breakthrough Brands, but how can you consumer versus shopper. Breakthrough take advantage of a mobile-first mindset, Brands are blind to these distinctions even though you might already be an and, instead, see one funnel and one established company? What aspect of person moving through it. Their ads are your business most easily lends itself not mere product announcements or to mobile? promotions designed to shout the loudest. Instead, the new marketing Having a bold vision consists of campaigns that are smartly A mistake that’s often made when targeted, well-crafted and designed to discussing Breakthrough Brands is drive meaningful action. equating innovation with a faster way of These ads don’t happen by accident. doing something. Speed is important, For every new campaign, emerging but if you’re headed in the wrong direction, brands develop smarter strategies by going faster will only get you to the wrong testing a number of variations of copy, place in a shorter amount of time. image and ad type to hone in on what Breakthrough Brands succeed because works best. Concept A or B? Stacked of a singularity of vision that can be vertically or horizontally? These are owned by only their company. real-time tests being decided in days Other former breakthroughs such as rather than weeks. Brands like this TOMS, Warby Parker and Out of Print understand that sometimes the idea is clothing embody this concept. right but the execution is wrong, and so Philanthropic efforts have been part of they test and iterate until they get it right. their missions from the beginning. Other Breakthrough Brands expand the Being purpose-led gives Breakthrough very notion of what marketing is. Brands a clarity that’s lacking at companies For Breakthrough Brands in the apparel who only care about market share or category, anything that has to do with quarterly profits. But that kind of vision the brand– even the fulfillment and can’t be focus-grouped or tacked on after shipping of their physical product– is the fact. It’s not a PR strategy, marketing treated as marketing. They also use angle, or empty slogan. It has to be bred into traditional avenues, such as bricks and a company’s DNA from the beginning. mortar locations, to build relationships When it’s not, consumers will smell a fraud.

91 in person. Not all breakthroughs are else will.” The brands that have broken purely digital. the growth barrier, as well as the Breakthrough Brands that are Connecting the world currently redefining various industries, Twenty years ago, less than three prove that it doesn’t take huge amounts per cent of the world’s population had of capital to innovate or cause disruption. a mobile phone and less than 1 per cent And more like them are being created was online. Today, two-thirds of the every day. You can learn from the world’s population has access to a success of these growing brands, or mobile phone, and one-third of all become a footnote in whatever industries tomorrow’s Breakthrough Brands humans are able to communicate on the disrupt. The choice is yours. Internet. By 2018, it’s expected that 3.82 billion people will be connected to the Internet.* For creative and marketers, a more open and connected world means being able to tell their story in every corner of the globe– to the right people, at the right moment and on any device. For Breakthrough Brands, this newfound connectivity means they can instantly reach audiences, both global and local. In fact, more than 70 per cent of businesses that advertise on Facebook are outside of the US.** In India, a woman quit her job as a software consultant in order to start her own business making traditional floral headdresses for brides. At first, Kalpana Rajesh was Pelli Poola Jada’s only employee. But business boomed after she posted photos of her creations to Facebook and today the company has 45 branches and 250 employees, all of whom are women.

Disrupt or destruct *No Ordinary Disruption. Dobbs, Manyika, Woetzel. Public As Steve Jobs famously said, “If you Affairs Publishing, 2015. eMarketer, April 2016 don’t cannibalize yourself, someone **Facebook Internal Data: Q1 2016

92

94 Creating a nation brand backdrop

Creating Unique Nation Brands to Promote Tourism, Trade and Foreign Direct Investment

Guido van Garderen Strategy Director Interbrand South Africa

95 The Malaysian Government had a beyond merely creating the conditions challenge. The country was ready to for industries to prosper, since rival receive tourists, but visitors to Asia went states can easily imitate these factors. mostly to Thailand, Bali, China or Japan. It has become apparent that countries Malaysia wasn’t top-of-mind when it need to find a unique and sustainable came to booking a holiday. In fact, competitive edge that is aligned with a brand strength assessment of Malaysia economic strategy and supported by as a tourist destination revealed that public policy. A well-defined brand most foreigners had no basic concept of strategy helps countries gain a strategic the country’s location, let alone what it long-term brand advantage. stood for. How could Malaysia ensure Unfortunately, nation branding often that tourists would consider the country gets confused with short-term tactics, as a holiday destination? such as country commercials on CNN. In 1999, the Malaysia Tourism Promotion These expensive advertisements often Board took action and launched the lack a consistent strategy and don’t ‘Malaysia: Truly Asia’ campaign. At first contribute to the creation of a true nation sight, the catchphrase seemed like brand. So, what is nation branding? a superficial slogan– but it served a strategic purpose. The tagline educated potential visitors that Malaysia is, in fact, a country in Asia. Moreover, the slogan implied that tourists would miss out on the true Asia if they skipped Malaysia. The consequent use of the catchphrase “Malaysia: Truly Asia” and various public and private initiatives contributed to a steady growth of tourist arrivals to a record 25 million in 2012. The country is now ranked 10th on the United Nations World Tourism Organization’s list of most-visited countries. ‘Malaysia: Truly Asia’ is a classic example of a nation branding campaign focused on tourism, but the development of a nation brand is no longer the exclusive domain of tourism authorities. In an era of continuing globalisation and increased competition between states, investment boards and trade promotion agencies find that they have to go

96 Creating A Nation Brand Backdrop

A Promise of Luxury Burj Khalifa, the tallest tower in the world that houses the first and only hotel A brand is, in essence, a promise. If a designed by Giorgio Armani. Even the country or a city sells a promise to a police force has embraced the luxury tourist, business executive, or investor, brand, recently acquiring a Lamborghini it must deliver on that promise. Aventador worth US $450,000 to For example, Dubai promises luxury. complement its fleet of police cars. It started delivering on this promise in These actions speak louder than words. 1999 with the opening of the Burj Al Arab, often referred to as the only seven-star Dubai didn’t inherit an Eiffel Tower, but hotel in the world. The sail-shaped hotel the emirate was able to create a brand became an instant symbol of excessive advantage based on its value proposition luxury, sending the implicit message that of luxury. This brand promise didn’t the standard for all hotels in Dubai is come out of nowhere. It was rooted in luxury. In 2007, the emirate reinforced its the prevailing brand image of positioning strategy by building the overindulgent sheiks in the Middle East.

Nation branding isn’t the holy grail of economic development, but it can provide a distinct advantage when it is aligned with a well-defined economic strategy and supported by public policy.

97 A brand is, in essence, a promise. If a country or a city sells a promise to a tourist, a business executive or an investor, it must deliver on that promise.

To signal its luxury positioning, it used Eiffel Tower, wine and fashion. These symbols such as the Burj Al Arab instead solid brand associations drive tourists to of a logo, a web site, an advertorial in visit the ‘City of Love,’ motivate Newsweek, or a commercial on CNN. consumers to pay premium prices The new brand identity was consistently for a bottle of Bordeaux, and attract managed even during the financial crisis, fashionistas to shop for the latest trends. when the temptation to diversify was France uses its brand advantage omnipresent. Dubai realised that brand instead of depending on major strategy is as much about saying no as it promotional campaigns. is about saying yes. As a result, the On the other hand, a developing country brand advantage is undiluted, and Dubai like Liberia evokes either no brand consistently attracts tourists with high associations or merely negative ones, disposable incomes. Destinations in such as civil war, child soldiers and developing countries could achieve poverty. This brand image deters similar results if they consistently tourism, trade and investment, even communicated their competitive edge to though the West African country has those abroad using striking symbols. been at peace for over a decade under the leadership of its president, Nobel Why France attracts 83 million Laureate Ellen Johnson Sirleaf. There is a tourists per year strong discrepancy between the brand Nation branding strategically steers the image the country retains and the brand image of a country in order to stimulate identity Liberia wants to convey. tourism, increase trade or attract How can Liberia lose its negative brand companies and foreign direct investment associations, and what should the (FDI). One way to think of a nation brand country become known for instead? is as a set of associations. In other What are the possible brand associations words, what attributes instantly come to that are authentic, truthful, and recognised mind when you think of a certain on the grassroots level, while at the country? A survey on the brand image of same time stimulate tourism, trade and France, for example, revealed that the FDI? In short, how can Liberia create a country is related to an average of 6.1 brand advantage? brand associations. At a minimum, the country evokes images of the

98

Finding a competitive edge recognised as such by locals, and builds on the presence of an existing fleet of Nation branding should be guided by the small fishing boats. Liberia could economic strategy of the country, but a become known as the premier sport clear economic focus that serves as a fishing destination in Africa, a claim that foundation for the nation brand isn’t hasn’t yet been staked by another always present. Sometimes a nation African country. brand needs some ‘Imagineering’, where one looks beyond ‘what is’ and imagines With this initial concept in mind, Liberia ‘what could be’. For example, finding a must align its public policy with the new tourism strategy at first seemed daunting positioning strategy to create a more for Liberia. As one of the poorest countries robust brand advantage. For example, in the world, Liberia lacked basic a ban on commercial fishing would send infrastructure and had expensive hotel a strong signal that Liberia is the sport rooms due to high energy prices. fishing destination in Africa. It evoked a persistent brand image of The coastline would instantly become war and poverty and lacked striking the largest sport fishing sanctuary in landmarks, distinctive culture and the world in spite of its very basic tourism significant wildlife. An assessment of the local prevailing brand associations, however, provided the basis for a new, authentic brand identity. Most citizens spoke of the 315 miles of golden beaches, yet the fact that nearby destinations like Gambia and Senegal were already known for their beaches would make it difficult to attract tourists with such a similar proposition. Meanwhile, the assessment also revealed Lake Piso and Blue Lake as two other possible tourist destinations. But what kind of tourist would travel to a developing country, stay at no-frills hotels, and have an interest in a vast ocean, unexplored rivers, and virgin lakes? Here an idea started to emerge: American sport fishermen might enjoy navigating virgin territory and are already used to living in fishing camps and paying $200 per day for a boat rental. Such a value proposition is authentic,

100 Creating A Nation Brand Backdrop

infrastructure. The case study of Liberia less vulnerable to competitors, since the demonstrates that a country doesn’t country-of-origin effect can’t be need an extensive budget to attract replicated. As a result, these industry tourism and foreign investment– but it clusters have become more robust. does need commitment to create a Surprisingly, Chilean wines often surpass brand advantage. French wines in blind taste tests, challenging the theory that being better Cuban cigars, Swiss watches and is a viable strategy. When differences Chilean wines between products become arbitrary, Nation branding can also encourage perception of the brand dictates reality. trade through the country-of-origin But even if Chilean wines could effect. French wines, Cuban cigars and consistently taste as good as their Swiss watches are all perceived to be French counterparts, they wouldn’t be the best in their product category, which able to create a similar brand enables the local industry to use this experience. French wines are made in brand advantage to ask for premium accordance with traditional fermentation prices. Additionally, these brands are processes; winemakers have passed on knowledge and experience through generations, and they label and protect their wines with widely recognised ‘terroir’ names, such as Bordeaux and Champagne. So, how could a challenger dethrone a product category winner? Chile realised that marketing, communication and promotional activities were only short-term ‘brand-aids’, and insignificant without an authentic and distinctive brand advantage. The country would need to find a brand advantage of its own. Chile thus changed the narrative of the wine industry. The Chilean vineyards have a unique story, as they were the only vineyards untouched by the worldwide outbreak of Phylloxera in the 1800s. Chilean grapes are still grown on their original French rootstock. Additionally, Chilean wine producers don’t rely on traditional processing

101 practices, but put their trust in science work experience. These minimum and technology to control and guarantee requirements to enter a specific labour quality. The idea to segment wines market are sometimes referred to as based on grape variety and convey ‘table stakes’– a potential candidate quality through a belief in science must meet them in order to be allowed Chile to change the narrative of considered for a job interview in the wine to its benefit. Today, many desired industry. Similarly, countries consumers select their wines based on must meet table stakes if they wish to be grape variety rather than terroir names. considered by tourists, investors and Although Bordeaux, Champagne and business executives. Here the term table other brands remain strong, Merlot, stakes refers to everything that is Cabernet Sauvignon and Chardonnay expected of a country. For example, have now become household names. every business park should, at the very Chilean wines are increasingly sold at least, have well-maintained infrastructure, a premium prices, which in times of a stable supply of energy, and clearly hardship creates a buffer against defined property rights. price fluctuations. Most countries work very hard to become everything that is expected but Lessons from Career Building forget that they also have to find ways to The process of nation branding is signal how they differ from competitors. surprisingly similar to how people In particular, business parks in intuitively build their careers. developing countries need to For example, both countries and differentiate themselves from people need to evaluate their capabilities comparable generic locations if they are and decide at an early stage what determined to attract multinationals and industry they want to focus on. At the FDI. For example, if Kenya wants to same time, they must also consider how become the Silicon Valley of Africa, it many competitors are going after the should signal commitment with a unique same opportunity and if their desired government-led initiative like citywide industry will continue to generate jobs in free Wi-Fi in Nairobi. Such a noticeable the future. In short, both states and public initiative would communicate people need to choose an economic louder than any advertorial in Forbes direction that accounts for ever could. ‘Serengeti Valley’ would still competitiveness and future trends. need to deliver on all of the expected A second step toward a professional facilities of a business park, but at least reputation or a coherent nation brand is the location would be noticed building credibility. For example, young and considered. employment seekers obtain a diploma to Nation branding isn’t the holy grail of signal a degree of understanding and economic development, but it can they apply for internships to gain relevant provide a distinct advantage when it is

102 Creating a Nation Brand Backdrop

Countries around the world have now started to realise that nation branding does offer a distinct advantage aligned with a well-defined economic strategy and supported by public policy. Countries around the world have now started to realise that nation branding works as a catalyst for growth. In 2011, President Barack Obama launched ‘Brand USA’ to attract more tourists and ‘Select USA’ to attract more investment. The U.S. Agency for International Development and the National Competitiveness Foundation of Armenia have just announced their intent to create a national brand for Armenia. Can the India Nation Brand offer something that the world needs? What are the choices available within the possibilities of IT and outsourcing to medical and spiritual tourism to the upstream manufacturing hub? Is there something hidden in the manifesto unveiled during the Independence when its leaders heralded – “We will strive to ensure that India finds its rightful place in the world. And provides the path of peace and coexistence to the world”. Well, whatever it emerges to be post a thorough strategic analysis, one thing is clear - in a highly competitive environment, a well-defined brand strategy makes the difference. An alumnus of the John F. Kennedy School of Government at Harvard University, Guido van Garderen is currently a Senior Strategist at Interbrand. In his upcoming book Advanced Nation Branding Strategies, he explains how brand strategy can help accelerate economic growth.

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Interbrand’s Brand Valuation methodology

106 Interbrand’s Brand Valuation Methodology

There are three key components in all of The strategic priorities of the our valuations: an analysis of the business and of the brand valuation financial performance of the branded exercise products or services, of the role the The level at which brand brand plays in the purchase decision, and of the competitive strength of the management decisions are taken brand. These are preceded by a decision The number of parts of the business on segmentation and at the end of that can be identified where financial the process are brought together to performance, Role of Brand enable the financial value of the brand and Brand Strength can be isolated to be calculated. and analysed seperately

Segmentation The availability of data

Segments are typically defined by Financial Analysis geography, business unit, product, service or customer group. Why is This measures the overall financial return to segmentation important? A robust an organisation’s investors, or its valuation requires a separate analysis ‘economic profit.’ Economic profit is the of the individual parts (or segments) of after-tax operating profit of the brand a business to ensure that terms of the minus a charge for the capital used to three key components of the brand generate the brand’s revenues and valuation (financial performance, Role of margins. A brand can only exist and, Brand and Brand Strength) can be taken therefore, create value, if it has a platform into consideration. From a brand on which to do so. Depending on the management perspective, the insights brand, this platform may include, for and recommendations that result from example, manufacturing facilities, the brand valuation exercise will be at distribution channels, and working capital. the segment level, so it is also important Interbrand, therefore, allows for a fair return that they are at an actionable level for the on this capital before determining that the client’s brand teams. brand itself is creating value for its owner. The number and choice of segments We build a set of financial forecasts over therefore depends on: five years for the business, starting with revenues and ending with economic profit, which then forms the foundation of the brand valuation model. A terminal value is also created, based on the brand’s expected financial performance beyond the explicit forecast period. The capital charge rate is determined by reference to the

107 company’s weighted average cost these factors is judged relative to other of capital. brands in the industry and relative to other world-class brands. The strength of the Role of Brand brand is inversely related to the level of risk Role of Brand measures the portion of the associated with the brand’s financial purchase decision that is attributable to the forecasts (a strong brand creates loyal brand, relative to other factors (for customers and lowers risk, and vice versa). example, purchase drivers like price, A proprietary formula is used to connect convenience or product features). the Brand Strength Score to a The Role of Brand Index (‘RBI’) quantifies brand-specific discount rate. this as a percentage. Customers rely more Brand Value on brands to guide their choice when competing products or services cannot be The brand-specific discount rate is used to easily compared or contrasted, and trust is discount brand earnings back to a present deferred to the brand (e.g. computer chips), value, reflecting the likelihood that the or where their needs are emotional, such brand will be able to withstand challenges as making a statement about their and deliver the expected earnings into the personality (e.g. luxury brands). RBI tends future. This is equal to brand value. to fall within a category-driven range, but there remain significant opportunities for brands to increase their influence on choice within those boundaries, or even extend the category range where the brand can change consumer behaviour.

Brand Strength Our experience shows that brands that are best placed to keep generating demand and profit into the future are those performing strongly (relative to competition) across a set of ten factors. Four of these factors are internally driven, and reflect the fact that great brands start from within. The remaining six factors are more visible externally, acknowledging the fact that great brands change their world. These are the factors that Interbrand believes make a strong brand. Performance on

108 Interbrand’s Brand Valuation Methodology

Brand Strength Internal Factors : Great brands start from within

Clarity Governance Clarity internally about what The degree to which the the brand stands for in terms organisation has the required of its values, positioning and skills and an operating model proposition. Clarity too about for the brand that enables target audiences, customer effective and ef cient insights and drivers. deployment of the brand strategy. Commitment Internal commitment to the Responsiveness brand, and a belief internally in The organisation’s ability to its importance. The extent to constantly evolve the brand which the brand receives and business in response to, support in terms of time or anticipation of, market and inuence. changes, challenges and opportunities.

Brand Strength External Factors : Great brands change their world

Authenticity Consistency The brand is soundly based on The degree to which a brand is an internal truth and capability. experienced without fail It has a de ned story and a across all touchpoints well-grounded value set. It can or formats. deliver against the (high) expectations that customers Presence have of it. The degree to which a brand feels omnipresent and is Relevance talked about positively by The t with customer/ consumers, customers and consumer needs, desires, opinion formers in both and decision criteria across traditional and social media. all relevant demographics and geographies. Engagement The degree to which Differentiation customers/consumers show The degree to which a deep understanding of, customers/consumers active participation in, and a perceive the brand to have a strong sense of identi cation differentiated proposition and with, the brand. brand experience.

109 Case study 1: A premier international hotel and resort brand

Interbrand was engaged by an upmarket hotel wanted to be in the know, and help establish the brand with a smaller global footprint relative to proposition and strategy for a hospitality brand key competitors like Hilton and Marriott, that went out of its way to deliver authentic and meaning that its brand needed to work harder enriching experiences that make the traveller’s to attract and retain customers worldwide. world feel bigger and the journey more rewarding.

After assessing the hotel chain’s objectives To figure out where the new brand proposition and the competition it was facing, we knew would have the biggest customer impact, we we needed to address a number of key areas employed quantitative touchpoint analysis (see to strengthen the brand: Figure 2). While ‘value’ turned out to be the most • Identify an authentic, relevant and significant driver of overall customer advocacy, differentiated brand proposition staff and in-room experience were also very influential factors. • Identify the key touchpoints through which the new brand would have the most impact Once we had a clear sense of what was driving on customers customer preferences and perceptions, we then • Create a business case to demonstrate examined the relationship between customer the expected financial impact of the advocacy and hotel performance. Through this new proposition analysis, we were able to demonstrate how our suggested brand proposition and • Creatively execute the new proposition strategy would not only improve customer across key touchpoints experience, but also increase bottom line profit At the time, the brand was perceived as a (by tens of millions of dollars). business traveller-focused chain. However, With a strong financial case as the foundation for our analysis identified a clear space and our recommendations, we developed a strategy opportunity in the marketplace: a niche and creative execution for each of the most between high-end luxury hotels like impactful touchpoints. Starting inside the Ritz-Carlton and Four Seasons and large organisation, we created an internal branding business-focused chains like Hilton and Hyatt. engagement and communication programme to We also felt that the brand had the potential to build understanding and excitement among offer something different, a luxurious yet employees for the new proposition. accessible alternative for those who would be To deliver a higher level of personal attention, travelling for business as well as pleasure. a locally-tailored concierge concept was We conducted extensive market research and developed on-site and online. found what really distinguished the brand’s Building on the new proposition, we also created target audience was their attitude to travel: a philosophy for room design and experience that • Worldly - They shared an interest in provided a real sense of location inside the room other cultures including, for example, local intelligence guides • Discovery - They had a willingness to try and TV welcome imagery. Today, this concept new things has been taken even further. Tapping into their target market’s love for travel and cultural • Authentic - They sought authentic curiosity, the hotel invites visitors to explore the enriching experiences world through cuisine by offering a culinary • Optimistic - They looked forward to travel mobile app that features the hotel’s chefs in and its pleasures various regions sharing local recipes and engaging the senses. The impact? The first year What these globe-trotters (or aspiring post-launch saw a 10 per cent increase in brand globe-trotters) ultimately had in common consideration among the target audience, was a heightened level of sophistication - they revenue per room increased 12 per cent, and the wanted to be ‘in the know’. It was this key hotel owner’s share price rose by 26 per cent. insight that inspired our brand proposition.

We wanted to ensure that the hotel chain became the go-to brand for people who

110 Interbrand’s Brand Valuation Methodology

Quality Customer Financial Drivers Perceptions Parameter

Arrival

Impact Factor

Anticipate your needs Room 0.13 Attentiveness Promptness 0.231 Accuracy Impact Knowledge Factor Attitude 0.253 Customer 0.271 Hotel Advocacy RGI Hotel 0.0 (hygiene factors) 0.0

Food 0.473

Value Hotel RGI = Room revenue generation index Figure 2. Quantitative touchpoint analysis

Case study 2: A global technology brand Scenario modelling to support a critical brand portfolio and divestment decision

A technology brand approached us in the choice management made. We also identified the midst of considering spinning off one of its need for active employee engagement in order to larger divisions just as a change of senior rebuild trust and generate loyalty. leadership cast doubt on the viability of the deal. The management team did not have a clear Our work was leveraged not only within the perspective on the best brand scenario going marketing department, but also at the CEO-level, forward, and lacked adequate information showing that Interbrand delivered exactly what on customer preferences, loyalty and was required to support the decision-making purchase drivers. process.

Interbrand helped cut through the clutter by Our analysis helped the brand change course, clearly articulating the choices available and strongly influencing the future of shareholders, communicating the rationale behind the optimal consumers and thousands of employees, strategic option. An Interbrand team spanning making a memorable mark on the brand’s three offices delivered an econometric model timeline and paving the way for its growth and and global study of 3,600 respondents in just continued success. three weeks. Our findings demonstrated that, if the brand owner proceeded with the decision to divest, the brand would have to produce massive growth in the next five years in order to pay back rebranding costs and make up for anticipated customer attrition. Interbrand not only helped highlight the best strategic option and scenario for the brand, but we also exposed the crucial need for innovation to build equity and long-term shareholder value– regardless of the

111 Best Indian Brands Criteria

112 To start, Interbrand compiles a list of Indian brands from our marketing database based on more than 25 years of valuing brands and nearly four decades of consulting with organizations in India and around the world.

We then narrow the candidates based on the following criteria for consideration:

1. The brand’s country of origin must be India.

2. There must be substantial publicly available financial data.

3. The brand must have a broad public profile and awareness or the brand must be positioned to play a significant role in the consumer’s purchase decision.

4. The economic profit must be positive, showing that there is revenue above the company’s operating and financing costs.

Based on these criteria, certain brands you might expect to see in this ranking are not included. Additionally, you will not find certain industry sectors included in our study. The airline industry for example is highly capital intensive and generally operates on narrow margins. Hence the airline brands struggle to achieve positive economic profits over the long term.

For brands that do meet the Interbrand criteria, we next look at the current financial health of the business and brand, the brand’s role in creating demand, and the future strength of the brand as an asset to the business.

113 114 A difference in opinion

Epilogue

Rahul Bansal Strategist Interbrand India

115 Brand Valuation is undoubtedly the definitive measure of a brand’s performance in the market. Understandably, a number of progressive organizations around the world are employing valuation metrics in managing their brand to consistently create value. But, as the practice of brand valuation has gained ground, the number of practitioners of brand valuation have multiplied and with it, the methodoloties that they employ to arrive at the brand value. What queers the pitch even more is that different practitioners, employing different methodologies, can arrive at differing brand values for the same in other contexts too. Equity Analysts, for brand. For the brand manager or the example, are paid by banks and brand owner, the question would be – stockbrokers to predict the future share which is the “correct” value that should prices of stocks around the world and be used to track performance? the price you’re willing to pay for a stock The short answer is, that they are all is influenced to a great deal, by the value equally correct (or incorrect) because these analysts assign to those stocks. “value” is always an opinion and hence, But those values can differ. Widely! an estimate. This is true not just of In mid-September 2015, using Thomson brands, but practically every transaction Reuters data, we analyzed the target that you enter into, in your daily life. Your prices of all the equity analysts following mentally assigned “value” to an article is the stocks of the top 10 brands in our only an estimate. It only becomes ranking (including megabrands like definite when you pay the price (and as Apple, Google, and Coca-Cola). Looking long as that price is lower than the at the average target price and “value” you estimated in your mind, comparing that with the minimum and you’ve got yourself a great deal)! maximum target prices we found that the And so it is, with Brand Valuation. average spread from the mean across all Different valuation methodologies (and ten stocks was 20 percent. Looking at different league tables) can assign Apple, we found a 106 % difference differing value to the same brand, none between the highest and lowest target more “correct” than the other. We see price among the 47 equity analysts that similar differences in values all the time our analysis covered. The average difference between the highest and

116 Epilogue

lowest target prices across all ten stocks organizations to have their own opinions was 57%. That is quite a difference of on how brands should be valued—and opinion! inevitable that people will perceive value differently. Undoubtedly, if we replicated this analysis across a broader range of So, if the best-known brand valuation stocks, from any stock market across the approaches are all more or less valid, globe, we would find similar, and which one should you rely on? Assuming significant, differences of opinion. And you are looking for a brand valuation to yet, whilst there have been calls to identify opportunities to unlock growth restrain the more aggressive selling for your business, or to evaluate a practices of these analysts, the entire potential change in brand strategy, what practice and profession of equity criteria should you use to base your analysis has not been called into choice of methodology and valuer on? question as a result of a lack of In our view, it is essential to work with a agreement among practitioners. Perhaps holistic, forward-looking approach that the difference is because brand valuation takes into consideration a wide range of is newer, practiced by few and is, data sources and inputs (rather than only consequently, not adequately relying on the “rear-view mirror” that understood. market research delivers), considers the Valuation (of any asset or business, not strength of the brand inside and outside just brands) is both an art and a science, the organization, and is capable of based on quantitative and qualitative delivering actionable insights and a clear assessment. The science is in the roadmap of quick wins and longer term measurement and the art is in the activities to unlock growth. In some interpretation. Of course, valuing a brand cases, especially the financial is not as straightforward as valuing a applications of brand valuation, it helps if tangible asset. The valuer’s view on the the methodology followed is ISO certified key levers of brand value creation (in and values brands using methodologies Interbrand’s case, the role of the brand in that are based on established and driving choice (Role of Brand) and its accepted business practices for the competitive strength (Brand Strength) valuation of other assets. will determine what will be measured, but The final consideration is to see how not every firm is looking at the same versatile the methodology is, especially factors or giving certain factors the same in delivering value beyond the number. weight in their methodologies. With so Because while the number itself is nice much variation in methodology and to have, what’s more important for brand considering all that is open to the owners and brand managers is to know analyst’s interpretation, differences of what goes into creating – and growing – opinion are bound to arise. Yet, it is that number. perfectly reasonable to expect different

117 tangible asset. The valuers view on the key levers of brand value creation (in Interbrand’s case, the role of the brand in driving choice (Role of Brand) and its competitive strength (Brand Strength)) will determine what will be measured, but not every firm is looking at the same factors or giving certain factors the same weight in their methodologies. With so much variation in methodology and considering all that is open to the analyst’s interpretation, differences of opinion are bound to arise. Yet, it is perfectly reasonable to expect different organizations to have their own opinions on how brands should be valued—and inevitable that people will perceive value differently. So, if the best known brand valuation approaches are more or less valid, which one should you rely on? Assuming you are looking for a brand valuation to identify opportunities to unlock growth for your business, or to evaluate a potential change in brand strategy, what criteria should you use to base your choice of methodology and valuer on? In our view, it is essential to work with a holistic, forward-looking approach that takes into consideration a wide range of data sources and inputs (rather than only relying on the “rear-view mirror” that market research delivers), considers the strength of the brand inside and outside the organization, and is capable of delivering actionable insights and a clear roadmap of quick wins and longer term activities to unlock growth.

118 Epilogue Ameya Kapnadak Senior Client Director, Interbrand India Ashish Mishra Contributors Managing Director, Interbrand India Carolyn Ray Managing Director, Interbrand Canada Deepali Shirali Creative Director, Interbrand India Dominik Prinz Executive Director and Head of Stratgey (NYC/SF), Interbrand Gonzalo Brujó Chief Executive Officer, EMEA & LatAM, Interbrand Guido van Garderen Strategy Director, Interbrand South Africa Jayati Grover Strategist, Interbrand India

Jez Frampton Global Chief Executive Officer, Interbrand Judy Lee Head of Creativity & Brand, North America, Facebook

Mike Rocha Global Director, Brand Valuation, Interbrand Nikita Sharma Designer, Interbrand India Rahul Bansal Strategist, Interbrand India Rebecca Robins Global Director, Marketing, Interbrand Sachin Mistry Design Director, Interbrand India

Special thanks to Aishwarya Subramanian, Akanksha Mishra, Arundhati Chanda, Ashoo Advani, Hardik Foflia, Hardik Sanghvi, Kristin Reagan, Madhukar Kamath, Milind Pawar, Paola Norambuena, Pragya Archan, Ramesh Rabindranath, Sanjay Kasturi, Simrin Manwani, and to many other Interbrand employees who shared their insights, creativity, and time.

120 Contact us

Ashish Mishra Managing Director, Interbrand India Tel India: +91 22 3308 0808 [email protected]

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For reprint permission of this report or Its articles, please contact Ashish Mishra