Next Unicorn in the making

Lay’s, Lipitor, Head & Shoulders, Heinz and TripAdvisor might be as distinct from one another as chalk is from cheese. But all of these brands are recognised global giants commanding over $ 1 billion in revenues. Back home in India, the chappati atta brand Aashirvaad recently crossed the Rs 4,000 crore mark, becoming the leading name in branded wheat flour with a 28% market share.

On the other hand, Coca-Cola India has announced its plans of making the home-grown cola brand Thums Up and the mango beverage Maaza (both of which Coca-Cola acquired from Parle) into billion-dollar brands in the near future. Building a billion-dollar brand is a tough play, more so in the Indian context where the market is vast, highly fragmented and diverse.

Kimberly A Whitler, assistant professor of marketing, Darden School of Business, University of Virginia, says to become a billion-dollar brand, a company has to first identify a problem that matters to consumers and “solve that problem better than other brands. They have to make sure that consumers are aware of the brand and believe that the brand can address their problem like no other.” This implies selling a product which is specialised and solves a niche problem in a specific manner.

Whitler says that the product should always deliver as repeat purchase and loyalty happen only if the product meets or exceeds consumer expectations. “A brand that overpromises and under-delivers may have a terrific trial, but little repeat purchase and poor word-of-mouth/social impact, which leads to poor results long-term,’’ says Whitler.

To create and deliver a good product, it is necessary to have a team that has a common vision of growth for the business, says Gaurav Singh Kushwaha, CEO and co-founder, BlueStone.com. “A flexible and agile culture which enables teams to optimise and maximise every growth opportunity is necessary. And lastly, the willingness to consistently invest in the brand is one criterion that often distinguishes a winning brand. We have over Rs 150 crore ear-marked for brand building over the next few years,” says Kushwaha.

Says Kaustav Das, CEO of integrated agency Ralph & Das, “In short, after choosing a category that has potential, you have to have a vision and a point of view that is distinct in the category and allows the brand to garner a lion’s share of the category. Next, make that point of view the centre point of the brand and lead brand behaviour around that and build distribution muscle that allows the brand to explore the full potential of the category. Also, you need to constantly challenge yourself to continue being the thought leader of that category.”

Experts say good products or products that deliver create tremendous value in consumer minds. And it is the brand value that reiterates consumer trust in the brand, allowing the brand to then expand its product categories from one niche product to many, say experts. Case in point being Ralph Lauren, which started by selling men’s ties in the 1960s and then expanded product categories to now include everything from men’s, women’s, kids and baby clothing, apart from other products. ITC is expanding brand Aashirvaad from atta to spices, ghee, mixes, flours, etc. in the near future.

This calls for the need for the brand to introduce the right product mix after having achieved significant success with the flagship product to accelerate growth.

This can be done by “remaining true to the brand’s DNA, values and personality. Every extension must help to build the brand’s DNA, value and personality and never dilute these. You need to learn to say no to transactional opportunities that do not strengthen the brand’s DNA and personality,” says Das.

According to Kushwaha, an effective product mix is to make sure that the right product is available at the right time for the demands of the market. “Great brands read the emerging trends and lead the consumer journey of discovery, experience and convenience by staying ahead of the curve through technology and innovation.” Kushwaha feels that today, brands have moved beyond the classic category splits, and brands that think of end-to-end solutions for consumers through products categories, service, and ecosystem can find tremendous scope to accelerate growth and scale the billion-dollar mark.

Furthermore, campaigns play a key role in brand success, especially in the age of the digital and social media. Merely creating a great product/products is not enough.

“A critical aspect of building successful brands is making the target aware of the brand. All methods for connecting with the target are useful, whether they be traditional or contemporary such as online social, digital ads, search engine marketing (SEM), etc.,” says Whitler, adding that storytelling can be quite effective.

FOR BILLION-$ BABY

• Brands should sell a product which is specialised and solves a niche problem in a specific manner
   
• Campaigns play a key role in brand success, especially in the age of the digital and social media Merely creating a great product/products is not enough