Today we’ll be talking about branding’s impact on sales using some examples from the FMCG industry. The purpose of this article is to convey, in no uncertain terms, that companies need to pay attention to and hammer down their branding strategies right now. We’ll also be exploring how ease of data analysis can help make better branding and sales decisions – and a very simple and effective method of easing data analysis. Let’s begin:
Function of A Brand – Seth Godin
You might have heard of various definitions of ‘brand’, but one of the most complete definitions that I have come across is from Seth Godin. I quote “A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.”
He further goes on to say “If the consumer (whether it’s a business, a buyer, a voter or a donor) doesn’t pay a premium, make a selection or spread the word, then no brand value exists for that customer”.
Why this quote is complete is because it outlines the benefits that companies get when they get their branding right –
- The consumer pays a premium to get your brand, simply by virtue of it being your brand
- The consumer at the very least chooses your brand over others, in the event of other factors, such as price, being the same
- The consumer herself begins actively engaging in promoting your brand via word-of-mouth
The right branding should get you sales and free promotion, per Seth Godin.
To get the branding right, one has to focus on branding in the first place.
Using Branding For Sales – Recognition & Trust!
Now that the need for branding is established, let’s skim over the very first ingredients needed to get the branding underway. A foolproof method is to start off by building greater brand recognition and fostering brand trust.
- Attention Grabber: Brand Recognition
The competition for grabbing the mental space of a consumer is always ON. Round-the-year branding, even though it may not seem to be the most impactful at times, readies the consumer for the moment-of-truth, when she is looking to make a purchase. Hardly a consumer knows the difference between Tide & Surf Excel, but almost every consumer buys on the basis of the perceived value they derive from the advertising campaigns of each brand.
In other words, if they give first mental recognition to your brand when opting for a solution to their need, they are more likely to prefer your brand to others.
The right branding can even trump core value offered to consumer!
- Care & Nurture: Brand Trust
Brand trust is one of the biggest drivers of brand loyalty, repeat customer purchase decisions, and long-term customer satisfaction.
Case Study: HUL Star-Sellers
In around 1997, HUL wanted to set up distribution of basic necessities like oils, detergents, and soaps across all villages in India. Distribution was one thing; store acceptance was another. HUL identified local influencers in villages even with populations of less than 2000 people and used them as ‘faces’ of the brand to persuade retailers to stock their products and sell in the local markets.
The branding was unconventional, but it hit the mark because HUL used the concept of brand trust as its base.
You will find multiple other examples of HUL paying focused attention on creation of brand trust. Ventures like Project Shakti are another reason why HUL was able to not only create thousands of jobs and revenue for the company, but also forge a lasting impact on the masses that today holds HUL’s name synonymous with ‘trust’.
From Cadbury to Pepsi…
Cadbury noted that the term ‘Eclairs’ was a commonly used term for a type of candy, and retailers were dishing out other brands in the name of ‘Eclairs’ instead of Cadbury’s well-known Eclairs. It undertook a product realignment campaign and renamed the product to ‘Chocolairs’.
Pepsi keeps changing its logos to keep up with trends, spending millions of dollars each time.
Tropicana’s package rebranding in 2009 for reasons similar to Pepsi’s, failed drastically, resulting in 20% year-on-year sales degrowth. As marketing professor and Ph.D. holder Mark Ritson noted, and we quote Brandstruck, the new design “achieved something Tropicana’s competitors had failed to in 20 years – a degradation of its brand equity and an undermining of its status as market leader.”
There are hundreds of examples in the FMCG industry itself, of how brands spend time, effort, and money to brand and rebrand their well-established products.
Branding seems to be pretty important for all of these brands.
Is it for you?
An Important Sub-Component – Proper Data Analysis
Just like all the sub-components in a branding strategy pave the way for good branding, a company’s overall choices of people, processes and products combine to produce effective decisions that impact every facet of the company, including branding and sales.
While we’re sure your choices of people and processes are most apt, we do have a proposal to add Explorazor to your product portfolio.
Explorazor is a data exploration and analysis tool built to ease the daily tasks of Senior Managers in Brand & Sales Teams, who currently work on Excel. Explorazor does not replace Excel; we are interested in complementing Excel. You can also explore some ways Explorazor differs from Power BI.
Take an Interactive Product Tour of Explorazor!