The Hindu : Business : Brands empower consumers, says Haynes

Online edition of India's National Newspaper
Tuesday, Apr 20, 2004

Business

Business

Brands empower consumers, says Haynes

By Our Special Correspondent

CHENNAI, APRIL 19. Brands `empower' consumers by enabling them to make `informed choice' of products, according to Richard Haynes, U.S. Consul-General in Chennai.

The empowerment is achieved not only by facilitating choice of quality and product differentiation within any particular category, but also by enabling consumers to exercise their preference on the basis of their own gender and generation, Dr. Haynes observed here today.

Inaugurating a seminar on `Famous American Brands', organised by the Indo-American Chamber of Commerce (IACC), in association with the U.S. Commercial Service (USCS), American Chamber of Commerce (Amcham) and the American International School, Dr. Haynes said transparency in governmental regulations on protection of intellectual property (trade marks, designs, patents and copyright), import/exports and financial flows (investment, dividends, and repayment of debt) were vital processes that a `trading nation' like the U.S. valued in any part of the world.

A range of globally known American brands present in India and built over more than a century and representing a big stake in terms of reputation and market valuation of the manufacturer/service provider concerned were analysed by senior executives at the seminar.

Vineeth Kumar Kapila (The Coca Cola Company-TCCC), while highlighting the concrete economic role played in India by the company in terms of investment, employment, procurement of a range of equipment, inputs and consumables, foreign exchange earning and tax revenue, illustrated how its product and brand promotion strategy (`Josh' campaign) were based on the very high level of price-sensitivity of the Indian consumer, the urban/rural divide and the premium placed on cooling in the tropical climate.

Vinay K. Piparsania (Ford Motor) said the crowding of the Indian passenger car market and near-absence of product differentiation made it imperative on it to rely on `emotion' while promoting the company's products.

Ramakrishnan (Pfizer) said the company, which in the U.S. had pioneered the mass production of penicillin and developed global winners like terramycin, Lipitor and Viagra, found itself in competition with more than 20,000 small Indian companies thriving on copying of molecules developed by others with huge investment. `First in its class' (pioneering a drug) rather than `best in its class' (improvement upon existing drugs) was the mission of a global leader like Pfizer, which warranted huge investments carrying high risks, he pointed out, and expressed the hope that by next year India would have in place a legal regime protecting product patents for drugs.

Sudeep (MetLife Insurance) said what an insurer sold was not a product but a `promise' and hence his company (a joint venture with the Jammu and Kashmir Bank) placed the highest emphasis on building trust over the long term.

For this reason, it avoided introducing certain products in India in view of the domination of corporates (as distinct from retail investors) in the ownership of units of mutual funds.

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