Amazon, Asian Paints and Tata Tea emerge as The Most Purposeful Leaders in India: Kantar’s Report
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Nov 29,2021
- 13 Mins Read
Consumers believe brands that facilitate easing their life are purposeful. According to Kantar BrandZ data, such consumer experience also exhibits those (brands) that have taken a bolder social stance, as COVID-19 magnified the need for brands to do more than focus on profits alone.
The report findings tie in with long-term trends in India and abroad to value brands on ESG criteria (environmental, social and governance) alongside traditional factors, such as valuations and earnings growth. It stated that Amazon, Asian Paints and Tata Tea emerge as the most purposeful leaders in India across Technology, Non-FMCG and FMCG categories respectively.
In the technology segment, Amazon was ranked prime followed by Zomato, YouTube, Google and Swiggy jointly in fourth place, followed by Flipkart. The Non-FMCG ranking is dominated by telecom brands, with Samsung and Jio jointly at second place, followed by MRF, Tata Housing and Airtel. The FMCG category ranks some of India’s biggest names: Tata Tea followed by Surf Excel, Taj Mahal, Parachute and Maggi both in fourth position and Britannia completing the list.
“Brand Purpose provides an anchor amidst constant uncertainty, both as a North Star for brands, but also as reassurance to consumers. Purpose as a contributor to brand equity is 10 times more important in India, in comparison to globally. This shows that a larger societal purpose is even more critical to success for brands in India. Of course, vague slogans and one-off ‘corporate charity’ events do not work, and it is not about jumping on the bandwagon of the latest fashionable cause either. Instead, real Purpose flows from, and builds on, a brand’s existing core values and DNA. This reinforces the need to understand and measure if a brand’s Purpose is perceived as adding real meaning to consumers’ lives,” Deepender Rana, Executive Managing Director- South Asia, Insights Division, Kantar, said.
For years, Kantar’s proprietary BrandZ data and modelling has shown how brand value derives from three core pillars of growth: Meaningfulness, Difference and Salience. While the fundamentals of brand-building remain the same, what has changed is the expectation that brand will stand for something more. Kantar analyzed 418 brands across 30 categories and found that in India especially, perceptions of a brand’s purpose, its ability to ‘make people’s lives better,’ is crucial to establishing a brand’s Meaningful quotient and thus, boosting prospects for growth.
Here are some of the key findings of the report.
- Amplifying or communicating purpose is critical
- Tech brands show how everyday convenience contributes to brand purpose. These brands have been able to scale-up and showcase a wide range of products plus enter new categories at a time when consumers were desperate for at-home and delivery solutions. Everyday convenience in turn made lives easier and fueled saliency for brands.
- FMCG brands are focusing on reducing their carbon footprint and taking a social stance. FMCG brands that score high on brand purpose have shown that purpose and profit can go hand-in-hand. They are working to reduce their environmental impact and promote social causes - which in turn attract customers, partners, and talent.
- Non-FMCG brands are now adopting marketing strategies that promote the brand in ways that look beyond the function of product or service; the key is to do more than just meeting consumers’ immediate needs, adding new and potentially differentiating associations.
- The Indian consumer, on a par with many of their Asian counterparts are actively engaging with sustainability; 77 percent are prepared to invest time and money in companies that try to do good.
“Purpose can work as a strategy for brands, when it’s based on the right consumer insights, and executed effectively. In India, Kantar BrandZ data suggestthat a brand’s Purpose ranking has a direct impact on its Meaningfulness score – which in turn is one of the cores, proven building blocks of brand value growth,” Soumya Mohanty, Managing Director- Client and Quantitative, Insights Division, Kantar stated.
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