5 important things Indian startups fail to understand about branding
I recently got a call from an entrepreneur. He was planning to launch a new startup. He asked details for the branding services which I took more than 20 minutes to explain to him. I also mentioned the cost.
His reply was very short and…crisp, “So, you would charge me **so much** for just a logo?”
Actually, I was not disappointed. There are plenty of Indian entrepreneurs who don’t understand the importance of branding. I meet a lot of startups so busy in “revenue generation” that they don’t care about the image of the company in the minds of its customers.
It would not be wrong to call branding a business taboo for Indian startups who think it is an unnecessary expenditure. Let’s see what Indian startups don’t understand about brand.
#1 Branding is important
What do you think Tata Motors bought when they acquired Jaguar and Range Rover from Ford? Employees? Machinery? Technology? No. Goldman Sachs and Morgan Stanley helped Ford sell the brands to Tata for $2.56 billion, and the brands were worth more than all other ingredients combined. (Source: Forbes)
It was same in the case when Kraft bought Cadbury for $19.5 Billion. It didn’t bought candy or chocolates. Kraft bought a brand. The examples are endless.
Branding is very essential for your company. More so, if you are a small company. Because it will help you, your product, and your service stand out from your competition. It gives you an image. Motivates your employees. Builds trust.
It is much more important than you think it is.
#2 Branding is not a logo or a tagline
When you purchased your Apple iPhone 6, what did you think of? Did of think of “Think Different” or partially bitten apple? Or when you purchased Nike sport shoes for your morning running sessions, did you think of “Just Do It” or Nike Swoosh?
Maybe you did. But that’s not what made you buy the product. The “brands” were taking its course. Branding is your calls to action. Contributing directly and indirectly to your company’s revenue.
The logo or the tagline of your company is not the brand.
#3 Branding isn’t expensive…for startups
To tell you the truth, the cost of branding is not static. US as well as Indian companies follow a dynamic model to give you the pricing for branding. Think of branding cost in the terms of research and data processing your branding agency would have to do.
If you are a startup, you are not actually spending on branding. You are making an investment. It will surely give back the returns. When and how effectively it pays you back depends upon the branding agency you hired.
Branding might have been expensive, if you were not a startup
#4 Branding drives marketing
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Do you know Dove’s marketing campaigns have been around Real Women, Sketches, Choosing Beautiful, and #RealStrength? Or did you ever find Coke saying that they sell carbonated beverage? No, they do not.
The marketing campaigns of Dove or Coca-Cola were not centered around the product. They were centered around the idea behind the product.
How to plan and implement marketing? That’s a big question. And you won’t have a good answer unless you have invested in developing a brand identity for your company.
Your brand will determine the axis around which your marketing plans and marketing campaigns will revolve. To guide your marketing strategy, you need a como puedo pedir lad pastillas cytotex. well-crafted statement of the type of business we are in, the type of customers we serve and how we serve them.
#5 Branding is as important as your product/service
Let’s talk about Coca Cola. The Coca-Cola brand is worth an estimated $74 billion: more than Budweiser, Pepsi, Starbucks and Red Bull combined. CokeA� is the second most recognized word on the planet after the word ?Okay ?. Altogether 1.7 billion servings of Coke products are consumed every day. 3.1% of all beverages consumed around the world are Coca-Cola products. The red and white Coca-Cola logo is recognized by 94% of the world’s population. Around the world, the average person consumes a Coke product every four days.
Do you think Coke would have achieved it without branding? Or simply with its 3,500 quality products?
I think I should let you ponder over this question.