Are Sri Lankan consumers becoming more brand conscious?

Marketing and selling in favourable economic conditions:

Prasanna PERERA, Marketing and Management Consultant, Chartered Marketeer, CIM U.K.

This is a question that I am asked at many a forum. After giving careful thought, I am happy to share my views on this, for the benefit of the majority.

In the last two years, we have witnessed a transformation in the retail landscape of the country.

Supermarket and clothing chains are expanding. The same can be said of almost all types of retailers.

With the expansion and the modernization of the retail industry, the Sri Lankan consumer now has the opportunity to enhance their lifestyle. In the process, consumers are being exposed to corporate, retail, product and service brands.

Are certain product and service categories generating greater brand consciousness?

The answer is yes. Product and service categories which are personal to the consumer, as well as categories which are high involvement, demonstrate higher consumer brand consciousness. For example, cosmetics, perfumes, soaps, shampoos, and toothpastes etc.,

Food and Beverage (F&B) is another category of high consumer brand consciousness. Take the example of Coke, Pepsi, McDonald's, Pizza Hut, KFC, Munchee, Maliban, MD, and Kist to name a few.

There are industrial products that customers project greater brand consciousness, due to the high investment and risk. IBM, 3M, Dell, Intel, Samsung, and LG etc.,

Transit products (vehicles) is another category where consumers are brand loyal. The expectation of a vehicle is reliability, trust, and durability. The vehicle brand name is the delivery channel of these expectations.

Are there specific segments of consumers that are more brand conscious?

In general, upper income groups and upper middle income groups are more brand conscious. These segments are always brand conscious due to higher literacy levels, education levels and urban lifestyles.

As you go further down to the bottom-of-the-pyramid, price consciousness takes over from brand consciousness.

As the living standards improve with increases in the disposable income of consumers, the middle class too would venture into buying brands, instead of products and services.

Many new brands are entering the Sri Lankan Marketplace. Is this an Indication of Greater Brand Consciousness?

To some extent the answer is yes. Many new brands are entering the Sri Lankan marketplace. In clothing, brands such as U.S. Polo, Giordano, Nike, Venfield, Carlo and Crocodile. New clothing chains have been established, such as Avirate, Kelly Felder, Pallu, Double XL, The Factory Outlet (TFO), to name a few. In the hospitality industry, numerous restaurants, hotels, motels and spa's have opened around the country. (Too many to name individually). Many new brands of mobile phones have also arrived in Sri Lanka, such as Micromax, Spice, Samsung, Karbonn, and HTC.

With these examples, it is clear that the Sri Lankan marketplace is brand driven now, than ever before.

What are the other factors contributing to greater brand consciousness?

The number of professionally qualified marketers are increasing. These marketers are driving their respective organizations towards brand building.

Competition is also another brand building enabler. Competition leads to high clutter in the marketplace, requiring differentiation to remain competitive. Brands offer the best option in terms of competitive differentiation.

Shareholders are also demanding higher returns for their investments. Hence, large positive cash flows are required and brands provide the best avenue to achieve this. Brands also provide insurance to shareholders in times of economic downturns.

Media related development (both online and offline) is also providing brands opportunities for awareness building and positioning. Sri Lanka is a media rich country with a large menu of newspapers, radio and TV channels available. Social media too is exploding with Facebook leading the way. BTL (Below-the-line) brand building opportunities are also available in Sri Lanka.

Competitions such as "Brand Excellence" encourages Sri Lankan indigenous brand building. These brand building initiatives target consumers, thereby making them brand conscious and loyal.

What about B2B (Business-to-Business) brand building and brand consciousness?

Even in the B2B context, brand consciousness is building, although at a lower level when compared with B2C. This situation will change as the economy becomes stronger and professional marketers drive B2B brands, more vigorously.

I am convinced that Sri Lankan consumers have become more brand conscious. Of course, there is room for definite improvement. On a national scale, the importance of branding towards enhancing country wealth should be emphasized. An integrated initiative between the public and private sector is required, for building strong national brands.