The State Of Domestic Brands

Dec 1, 2016
It is high time for the domestic market to build the brand; otherwise International Brand will soon take over the domestic market.

Branding is  primary necessity not only for promotion, but also for gaining customer fidelity. The association created by products like 'Cheeseball bhanekai Kwiks Cheese Ball', or 'Chiso bhanekai Coca Cola' has been successfully associated the key attributes of cheese ball and coldness with those respective products. Pran's Litchi juice can be taken as recent instance.  Surf Excel is next illustration, as the customers directly ask for 'Surf' not even knowing that Surf is name of brand, and they rather had to ask for Detergent Powder. 

Brand value of Coca Cola is above 66 billion dollars. The oldest brand recognized is Chwayanprash that was made in India since 1100 BC. Today, the portion eaten apple has become a big name in the market as a tech giant and the iphone flagship company—Apple Inc. iPhone 7 was more curiosity, over innovation on brand than excitement over people. The portion eaten apple, due to their highly intelligent, innovative and skilled personnel, has touched the horizon, eventually establishing the brand as one of the reputed in the world.

Brand is the identity of the business; however it is not an easy stair to climb to create a brand, as there are huge investments in this process. It costs an arms and legs for breeding a brand; after all, brand requires retention within the mind of consumers. Initially, this is all about searching blessings in disguise. After developing a brand, the manufacturers need to maintain the steadiness in quality, because intensification and tumbling of branded products is not accepted. Beside this, there are legal formalities that have to bitten off more than one can chew. So, thinking of building brand must be more than twice, before getting into it.
It has not been long that the marketers in Nepal are drilling branding strategies at all. Ncell had efficaciously stored within deep root of customers mind about the association of purple with the brand. On seeing some purple color, Nepalese directly perceive it as part of Ncell. Goldstar is next brand, that is not only gaining huge popularity in Nepal, but also in Indian market. Shikhar shoes is generally identified by its logo. However, there are cases of products struggling to create the brand as well. The long run of Bajeko sekuwa can be considered.

Branding is a long term and challenging task. This has to be understood that Coca Cola has not created the brand in a night. Branding is a long term process. RADO is nothing today, but just a brand. Incessant promotion in regular manner is the only way to create brand. Pashupati Paints or Asian Paints is identified when we talk of paints, and anyone unaware of paints also knows that there are Pashupati and Asian paints. It is difficult to form a brand, and again, it is difficult in maintaining the brand.

In 1991, Johnnie Walker’s market was completely down. The challenge was to develop such an enduring idea to move in such a rapid manner to attract large participations of mass in global market. ‘Keep Walking’ took the birth, to promote the campaign within. This was adapted by 120 countries that rapidly increased the sales of the product. Real Fruit Juice in Nepal felt the similar fate of weakened brand pride due to manufacturing negligence. The brand fell all of sudden. Immediately, its competitor took the chance. In order to stand up again, the company has diversified the product into various flavored packets, and it has worked somehow. 

Branding is important for both customer and the organization. A customer seeks for branded products, while the organization wants to make their product branded as well. After all, there lies importance of brand from both the perspectives.

A customer seeks for branded products because he wants to get an identified product. Purchasing of any television would allow him to watch the programs, but when he purchases the popular brand, he get a distinct image. Same customer wants quality assurance at the same time. Why would one prefer Samsung over Chinese mobile? Because of assurance quality is there. Branded products assures the quality in that very place, hence customer seek for branded products also to get the assurance regarding the quality, so that the purchased product will not go in ruin. Finally, branded product is a matter of prestige. Wearing RADO shows that you are rich, use of I phone indicates your standard, drinking Labels shows your class. There are brand products that help to satisfy consumers’ ego through the purchase and use of image and prestige related brands. Volkswagen is preferred to show the class of course! Everyone stares at your vehicle if you manage to ride Mercedes in the street of Kathmandu.

Branding the products has been important for the manufacturers and organizations as well. A branded product hardly needs any promotion. Being identified as a brand itself is a huge promotion. Quality consistency brings assurance within the mind of people, hence they will increase their loyalty towards the product. Organization can expand its product lines and product items through branding, as buyers prefer to buy products under established brand names. Just because of popularity of Apple’s I phone, the market of Apples other products has also increased sales. A branded product increases the image of the organization and every people working into it. United Nations is a brand, and working in UN increases the brand level of employees as well. Ultimately, legally registered brands provide legal protection, as they can be sold, leased or rented to other organizations as well.

Branding has become extremely essential for Nepalese products, ; however Nepalese Organizations are lagging behind in promising quality. As a result, efforts have been in vain. For instance, Kurkure is still knocking its similar priced Nepali rival--Kurmure due to later’s quality and lesser branding effort. Further, Nepalese business houses do have millions of investment in their business, however they have been lagging behind from creating a brand, and for those who have created, are unable to maintain it atop.  

Quality level satisfaction is less measured within Nepal as well. Are those travelers who travelled with Ace Travels satisfied? How much do they spend in collection of the feedback? What about Bhatbhateni? Are customers of Bhatbhateni satisfied? Both - Ace Travels and Bhatbhateni are brand in Nepal, but their sustainability seems a question.

Nepalese Business houses need leverage for their brand to be recognized and established among domestic customers. . Firstly, they need to maintain consistency in their quality. Brand image of Wai Wai is not only limited to Nepal, but this successful image has been able to create recognition in India and Bhutan too. It certainly is brand image that helped Chaudhary Group to establish new Wai Wai plant at Chittoor, South Indian district. That was a beautiful line at Tinkune - Welcome to Wai Wai country!

 Obtaining ISO standards can make consumers to believe on them to a greater extent. Again, they need to come up with certain campaigns in promotion of their product. For instance, when Royal Stag came up with the campaigns like ‘Let’s make it large’, why can’t our domestic Marpha come up with such strategy? Locally made wines are competitive enough, but not yet branded. Lahana at Kirtipur must be thanked for being able to brand the local Newari taste. 

Nepalese enterprises must take a huge and challenging step in effective distribution. At present, Ncell has been able to reach almost every village; however, NTC seems to be lagging bit behind. Further, We can see that Clinic Plus has been reaching every village, but Nepalese soaps are still out of reach at villages.  There are locally produced unnamed soaps that are hitting the market at different regions. Brand building is not all about advertisements, it counts sponsorship as well. The balance sheet shows large sum of profit, however, they seem to be lagging in sponsoring a various social events. Introducing the brand would require long term expenditure, but that is not yet an end. Pepsi, being a huge brand still has enough budget expenditure, to retain within the mind of people. Branding is a continuous process after all. Finally, last but not the least, packaging is important way of building brand. A good packaging of the product, posters in the retail outlets is necessary for branding. These locally made soaps, cloths or carpets - they lack packaging in Nepal.

Not every time - branding process meets success. Carlsberg 18:47 branding was a failure in Nepal. They wanted to create time as the brand. Their innovative idea of making 6:47 pm the time of Carlsberg did not make up in Nepal - maybe because that was too early time for the toast, or maybe they failed in massive promotion thing. Or, maybe both.

 
Today, Nepalese brands seem to be gaining some space, Old Durbar came out with so hype that this brand has been first choice of people around. Brand image of Surya Cigarette is not only limited within Nepal, but also abroad. There are few of them gaining brand image but again it is high time, the market requires good domestic brands in every sector, else in this era of globalization, no one can assure that the International brands can get into the domestic market and capture the market. 

Regmi is a freelance writer and a blogger. He can be reached at dwaipayan.regmi@gmail.com



Published in New Business Age, November 2016




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