Marketing and selling in tough economic conditions:

Brand building in Sri Lanka

PRASANNA PERERA- Marketing and Management Consultant, Chartered Marketeer

With the growth of the economy, opportunities are available for brand building across different industries in Sri Lanka. Hence, organizations would do well to start investing in their existing brands, as well as in new brands. Based on my experience, I find that 'real' brand building is engaged by only multinationals and a few Sri Lankan organizations.

Barriers to brand building in Sri Lanka

Based on my experience, I wish to categorize them into internal and external factors.

There are several internal factors that inhibit brand building. Primarily, lack of support from the top management, specially the CEO. If the CEO is not a brand champion, then the brand building process of the organization suffers.

Another key internal factor is lack of investment.

Brand building is a long-term investment not a short-term gimmick. Internally, another barrier is the quality of Brand Managers in certain organizations. They are merely glorified advertising and promotions executives, that lack the wisdom and acumen to build winning brands.

Externally, the state of the economy is the greatest barrier. However, with improved trading conditions, hopefully brand building will be carried out in earnest. Another external barrier is strong competitive brands, which de-motivates smaller players, as they feel intimidated.

Confusion between 'naming' a product and brand building

Naming a product is only a first step in building a brand. Naming only gives a product an identity. Converting this name into a strong brand requires investment, perseverance and vision.

Brands are not built overnight but over several long painful years.

If an organization is not willing to invest in brand building, then it is better to market products than brands. Of course, the repercussions will be significant!

Reasons why Sri Lankan organizations should strengthen and build their brand now

The number one reason is to be able to face global competition, which is bound to increase with the economic recovery.

Many brands from countries such as India, China, Bangladesh and Vietnam have already entered Sri Lanka. Many other brands will follow. If brands are not strengthened, the future will be bleak. Opportunities exist in the domestic market, with the opening up of the Northern and Eastern Provinces. Further, even districts such as Ampara, Moneragala and Hambantota will benefit.

The lifestyles of Sri Lankans are changing rapidly. They are becoming more quality and brand conscious.

Growth of supermarkets, departmental stores and hypermarkets are adding to the growing focus on brands.

Sri Lankans are also keeping their trust on corporates, that have built Corporate brands. These corporate brands add value to the product / service brands marketed by them.

Many Sri Lankan brands have not made it in the global stage, primarily due to lack of investment, unwillingness to take risks and inadequate brand management skills.

With economic prospects improving in the country, strong local brands will do well to explore international markets. Hence, the need to be serious in building brands now.

Tips for brand building

Firstly, ensure that the product or service represented by the brand is of excellent quality. This is a vital prerequisite. Protect the brand name and identity. Intellectual property needs to be secured.

Brand extensions should be carried out, after careful analysis. Do not be tempted to extend a brand into different product categories unnecessarily. Always keep in mind to retain the brand focus, as an unfocused brand will lose the competitive edge.

Brand building should be driven from the top. The CEO should be the 'brand custodian' and all employees the 'brand ambassadors.' The best examples are Virgin (Sir Richard Branson), Apple (Steve Jobs) Dilmah (Merril J Fernando), Mlesna (Anslem Perera), Air Asia (Tony Fernandes), Kingfisher (Vijay Mallaya), Body Shop (Anita Roddick), Dyson (James Dyson), Easyjet (Sir Haji - Loannou), Microsoft (Bill Gates and WPP (Sir Martin Sorrell).

All these CEOs acted as true brand custodians and built their organization / product / service brands with passion. Do not tinker with the brand values unnecessarily. All brand building activities should revolve around these values. Values are sacred and if the values are changed, the brand identity, positioning will be effected.

Brand positioning is a key aspect in brand building. My belief is that a well positioned brand has a great chance of success. Take the examples of BMW (Ultimate driving machine), Heinz (Heinz meanz Beanz), Lion Beer (Is there a lion in you), Carlsberg (Probably the best beer in the world), Nike (Just do it) and Volvo (Safety).

Maintain the brand awareness and brand recall levels. This will ensure that the target market segment/s relate to the brand at all times.

Strive to bring the brand to life, through exciting brand activation programmes. A brand 'in-action' builds credibility and trust amongst all target segments.

Conduct brand valuations periodically, to ascertain if the brand is gaining or losing value. Trust a reputed organization with a track record for doing this exercise.

My message to Sri Lankan organizations is to believe in brands and brand building, as an engine for growth. Aim to build truly global brands, that will strengthen the national economy. Effective brand management is the way forward.