A brand name can be one of the most valuable assets a company possesses. Not only can it signify quality to consumers and inspire confidence, it can also provide a strong competitive advantage for the business which, in turn, can drive pricing power and higher returns. Brand recognition is particularly powerful in emerging markets (EM), with more than two thirds of EM consumers saying that they would prefer to buy products from brands that they are familiar with. In this report, we analyse the power of brands in EM and some of the key themes that will drive brand consumption in the future.
Having analysed brands across EM and developed markets (DM), we identified four key drivers of brand power:
- Product offering: Brands that are able to create a desirable product that builds customer loyalty and a positive consumer experience are more likely to build stronger brands over a longer period.
- Innovation: With lower barriers to entry and increased competition from smaller brands, innovation has become imperative. To maintain a brand›s market leadership there has to be innovation, not only in terms of product but also in areas such as the distribution and marketing. We believe the brands that will succeed are those that are able to analyse
- consumer behaviour more efficiently and produce products in a timely manner.
- Distribution networks: Distribution channels have been a key competitive advantage for brand leaders, especially in EM where an ability to reach consumers, particularly in areas of lower accessibility, has been essential to cement leadership. Brands that have been able to integrate digital distribution and create a sound omni-channel presence are more likely to create a more powerful 'customer reach' and therefore maintain their competitive advantage in the future.
- Customer engagement and marketing: Millennials and Generation Z now have a bigger influence on consumer trends and are looking to create a more personal connection with brands. We believe brands that are able to successfully create marketing strategies focused on a more direct form of customer engagement are best placed to benefit.
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