Amazon, Asian Paints, Tata Tea, Zomato, among 'Most Purposeful Brands' In India: Report
The analysis by Kantar’s BrandZ India also revealed that perceptions of a brand’s purpose and its ability to ‘make people’s lives better’ are crucial to establishing a brand’s meaningful quotient
Amazon, Asian Paints and Tata Tea emerge as the most purposeful leaders in India across Technology, Non-FMCG and FMCG categories respectively, reveals Kantar’s BrandZ India report for 2021 on Thursday.
In the Technology and Home Delivery segment, Amazon is followed by Zomato and YouTube. While Google and Swiggy jointly bagged the 4th position, Flipkart comes on fifth.
The Brands that quickly revised their policy during the pandemic to serve their customers in the challenging times, hiked the wages of delivery staff and strengthened their supply chains won the hearts of Indian consumers, researchers say.
The Non-FMCG ranking is dominated by Asian Paints on the top position, telecom brands Samsung and Jio jointly on second, followed by MRF, Tata Housing and Airtel.
The FMCG category ranks some of India’s biggest names: Tata Tea being the winner is followed by Surf Excel, Taj Mahal, Parachute and Maggi both on fourth position and Britannia on 5th, completing the list.
The study sought to understand the longer-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.
The study found that in India, perceptions of a brand’s purpose and its ability to ‘make people’s lives better,’ is crucial to establishing a brand’s Meaningful quotient and thus, boosting prospects for growth.
“The COVID-19 pandemic has magnified the need for brands to do more than focus on profits alone. To analyse their commitment for the environment, sustainability and society, interviewed about 12,000 consumers for 418 brands on 28 attributes. Respondents were asked to rank the brands on several parameters including their commitment towards society, environment and making the lives of consumers better,” explains Deepender Rana, Executive Managing Director- South Asia, Insights Division, Kantar in a virtual press conference.
“Indian consumers believe that these brands lead with a clear sense of purpose to make their everyday lives better. The brands that focus on sustainability and are responsible towards their own staff, consumers, supply chain system and the society are considered above others,” says Soumya Mohanty, Managing Director - Client and Quantitative, Insights Division, Kantar who addressed the PC along with Rana.
Take away for Brands
For years, Kantar’s BrandZ data and modelling have 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 the brand will stand for something more.
“In other parts of the world, over 70 percent of the Brand value is derived from their functionality, salience and great advertising. In the heterogeneous society of India, these fundamentals contribute just 42% to brand equity. Not only Indians look at brands beyond businesses, but their expectations also differ from region to region,” says Mohanty.
*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 & 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.
*Indian consumers, on a par with many of their Asian counterparts are actively engaging with sustainability; 77% are prepared to invest time and money in companies that try to do good
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