'Leverage brands in tough times'                                                                                                                                                

 

Some associate brands with big multinational companies. Do you see the potential for Brand building in developing markets such as Sri Lanka?

Developing (product and geographic) markets where brands are still nascent represent a significant opportunity for the budding brand builder.

Focusing on brand building at an early stage of a market's development is advantageous though it may never be too late to start.

Furthermore, tracking brand value and the supporting metrics assists the business to manage growth through early indication of growing pains (such as declining customer satisfaction due to overloaded sales team) and keeping operational activities focused on a common goal.

On the topic of Brand building, we read recently of MTI and UK's Intangible Brands release of the IPL Brand Value Scoreboard 2009? What is the significance of valuing the strength of the IPL Franchises?

Yes, it is a pioneering valuation aimed at measuring the strengths of the eight IPL Franchises.

As irrational as it may seem sports performance has limited influence on brand equity value. Moreover it is the ability to engage with local communities the star players in team, the galacticos and of course the media exposure that build a sports brand. Significant sums have been invested in acquiring the team franchises and the race is on to capture the hearts and minds of cricket fans to develop a strong club culture modelled on the success of the world's most popular sports brands.

While the playing squads will change and the success of each team will fluctuate over time, the brand is the constant that unites supporters and is ultimately responsible for driving the long-term commercial sustainability and success of the IPL franchises.

Would you forecast a downturn for local brand owners who do not invest in building their brands?

Certainly, in developing geographic markets, if local incumbents have failed to capture the emotional territory of their customers' hearts and minds, you can bet your bottom dollar that the international brands will soon fill the gap.

Furthermore, a developing market dominated by a strong brand is a less attractive opportunity for organic market entry by multinationals while a strong brand provides leverage to defend a takeover approach or inflate the offer.