The Hindu : `Branding can help companies build customer loyalty'

Online edition of India's National Newspaper
Sunday, Mar 14, 2004

Tamil Nadu

Tamil Nadu

`Branding can help companies build customer loyalty'

By Our Staff Reporter

CHENNAI, MARCH 13. A holistic approach to branding can help companies in many ways, including in building customer loyalty, ensuring consistency and improving value for stakeholders, speakers said at a seminar on "branding and advertising." It was organised here today by the Bangalore-based Xavier Institute of Management and Entrepreneurship (XIME).

"The value of a brand creates a competitive advantage," said V. Balaraman, director, Polaris Software Lab.

Noting that the "explosion" in retail sector was marked by customers becoming more careful and selective, he said increased customer awareness led to a large number of commodities getting branded.

Many initiatives were taken by Indian companies, said Mr. Balaraman, former director, Hindustan Lever Limited. Apart from products of mass consumption such as milk, water, edible oil and petrol, a range of "low-value and low-interest products" was getting branded. Underlining the significance of branding, advertising and marketing for a company, he said the three together could push up business growth which in turn, was the real source of economic growth.

N. Murali, Joint Managing Director of The Hindu , said brand building was not a one-time affair as it created values, goodwill and customer loyalty. Noting that organisations not taking a holistic view of branding were doing so at their peril, he said brands helped to create a sustainable customer relationship.

Though strong brands promised tremendous benefits and helped to attract good employees, customers and business partners, they required the companies to exhibit quality, be consistent in what they did and to continuously innovate. The `India Shining' advertisement series was a good effort at branding the country, he said.

J. Philip, XIME vice-chairman and director, said the vast intellectual capital in the country provided a distinctive edge to India as a brand. Noting that there were now 7.50 lakh professionals in the country, other than graduates and those who passed out of polytechnics, he said India had the potential to become an intellectual hub by 2012.

Prof. Philip said the institute, in which students were admitted purely on merit, was planning to set up a centre of entrepreneurship.

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