IAA Global Summit 2022, Marketing & Advertising News, ET BrandEquity
With the changing times, consumers must now understand that the competitiveness of nations in the field of brands becomes extremely relevant.
Factor conditions, demand, corporate structures in the globalized economy are now out of date. For nations to understand their brand value index on a global scale, soft characteristics must also be taken into account.
Amitabh Kant, Second Managing Director of NITI Aayog, Ajimon Francis, Managing Director, Brand Finance and Pradeep Dwivedi, Vice President and Regional Director, IAA Global, discuss the Brand Finance Index report.
Brands can be developed over a period of time. It should be nurtured instead of depreciating. And this is where the concept of brand value was launched.
The ability of a national brand to generate its value begins with the perception of its territorial brand by the target audience, but the volume of the economy is just as important.
Further, brand value can be divided into two sub-segments, enterprise brand effect and place brand effect. The first reflects the value of all businesses in a country that contribute to overall GDP. The latter reflects the impact that this place brand has on the sale of all goods and services of the nation due to the image and activities of the destination brand.
This brand value index concept helps policy makers examine the parameters of where the nation is strong and weak. Additionally, he helps with goal setting and performance tracking, budgets and ROI measurement, shared the Managing Director of Brand Finance.
Francis said, “Nations influence their vibrations, their characteristics all over the world. It’s not about GDP, economy or world numbers, it’s about soft power lately.
Sharing his experience on harnessing tourism for Kerala with ‘God’s Country’ campaign and India’s ‘Incredible India’ campaign, Kant shared, “We have gone back to the roots of Kerala and brought back everything what the state was known for.From Kathakalis to Backwater houseboats, we have promoted all the beauties of Kerala as a tourism product.
“The world of branding works on a very simple principle. And that’s differentiation. How do you differentiate yourself from other products on the market,” he added.
Brand value combines the numbers a brand achieves with soft features such as customer relationship, reliability and more.
Citing an example, Francis said: “Swiss chocolates, German machinery, Italian sanitary products have a nation attached to the product. This brand value has an impact on the reputation of the national product.
India today ranks seventh in the Brand Finance Nations 2022 report, marking a 19% percentage increase in its brand value. This makes India the fastest growing country in the top ten, both in terms of brand value and brand strength.
Speaking specifically about India, Kant shared that India has taken a digital leap into something very different from the rest of the world. It made a technological leap because it created public infrastructures.
“India has a public infrastructure base on which we enable the private sector to compete. India is the only country in the world where PhonePe will compete with Google Pay, Paytm will compete with WhatsApp, Uber will compete with Ola in the market,” he added.