Brand consciousness Essay
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“This research report is to aid Article Circle Limited of Canada in the exporting of diamonds to the Indian market.
”A brand is an offering from a known source. Brand Consciousness is more than simply a preference for brand names. The term luxury was limited to only the rich and the elite, but today in India, disposable incomes and of middle class and upper middle class are increasing. The consumers in India are also very brand Conscious. The scenario being so in India, this research facilitates Arctic Circle to exploit the opportunity by crafting a unique set marketing strategies for the Indian market.
India is set for a dramatic expansion of domestic consumption that will make the country one of the largest consumer markets in the world. If overall economic growth remains 7 to 8 per cent, as most economists expect, then consumption will increase. It is estimated that real consumption will grow from Rs 17 trillion today to Rs 70 trillion by 2025.
This will take India into the premier league among the world’s consumer markets.
The primary driver of India’s growth as a consumer economy will thus be increasing incomes. Our analysis shows that average real household disposable income is set to grow from Rs 113,744 in 2005 to Rs 318,896 by 2025, a compound annual growth rate of 5.3 per cent. Rising incomes will also create a sizeable and largely urban middle class is expected to will swell to 583 million people or 41 per cent of the population.
While the growth in Indian incomes and consumption will deliver substantial societal benefits with further declines in poverty, the growth of a large middle class spells an opportunity for the manufacturers and the invasion of multinational brands is sure to change the dynamics of market phenomena. While the corporate spending on branding is high and what kind of Marketing strategies the companies will have to craft for the Brand – Conscious Indian Market is the question which is left unanswered.
Therefore, the present study is an attempt to explore ‘The influence of Brand Consciousness on Indian consumers to buy the Diamonds(Luxury Product) of Arctic Circle. Given the understanding of the extant literature this study is expected to provide directions on the phenomena for practicing manager on understanding that Indian`s are more Brand-Conscious. Therefore, the objective of this study is to build a marketing strategy model for the Brand-Conscious Indian Consumers.
A survey in 2008 indicated that India is among top 5 countries when it comes to Brand Consciousness. A country where savings rate is very high (nearly 36%) and where top 10% percent of people hold 53% of the wealth of this nation and lower 20% own about 1%, it is hard to believe that brand consciousness is on the rise.
A brand becomes a brand after how it is perceived by people, the image that it projects and the quality and promise to customers which it upholds. Most of the brand names out there today have become a symbol of a characteristic quality which they have imbibed in them self, a quality which leaves a consumer’s mind wondering after its usage.(live mint.com, priyanka mehra)
India is an emerging market, being a part of a developing economy. The consumers now to a certain extent have started differentiating between what every brand of a product has to offer, which tightens the competition because it’s not only about that little puma on your shirt or the bitten apple on your phone. Until now the premium brands were catering to the high end consumers and they have carved out their niche in this segment of market, but now they are getting aware of the needs of the other segments of the society specifically the middle class.
Being the real savers they are being targeted by the premium brands. These brands are now coming out with the products keeping in mind this segment of market. Indian middle class believes putting their money where they can get equivalent and possibly more value and if the premium brand can facilitate this then the local producers have a competition. So brand consciousness is on rise in Indian market and the premium brand can capitalize on it.(live mint.com, priyanka mehra)
Luxury brands are now for the ones that can afford them and India has a lot of potential given the high disposable income of the growing middle class. By knowing how purchasers consider, are affected, pick and utilize their items, luxury brands can make products that join straight with buyers seeks and will, also, be skilled to have a much clearer meaning of what their promoting destinations ought to be keeping in mind the end goal to achieve the potential purchaser.
By Understanding shopper’s choice making process, organizations can distinguish chances and dangers that may emerge in the commercial center. ( Rohit Arora, Strategic Planning Director, Bates Pan Gulf (BPG Group), Dubai, UAE) Companies will have to come up with a set of unique techniques which must be a mix of sponsorships, mold shows, superstar support, publicizing and PR. (Ana Margarida Forja de Macedo de Carvalho).
There are eight mainstays of Luxury Brand Marketing, for example Performance, Pedigree, Paucity, Persona, Public figures, Placement, Public relations and Pricing. The 8 P’s of luxury showcasing can give a comprehensive structure to extravagance advertisers.( Rohit Arora, Strategic Planning Director, Bates Pan Gulf (BPG Group), Dubai, UAE).
Luxury marketers and retailers have proven their resilience in a tough economy by sticking to their USPs: impeccable craftsmanship, artisanal, bespoke, exclusivity and razor-sharp service. (4 Luxury Marketing Ideas for 2013 Karen Weiner Escalera, president & chief strategist at KWE Partners, details four ways in which luxury brand marketers can reinvent their marketing strategies for 2013). 2013 will be the year where luxury brands must raise the bar by reinventing and reinvigorating their marketing strategies and look for new ways to brand and create new profit centres.
One of the innovative marketing strategies is Themed experiences which means Retail environments are becoming “themed brand stores” that serve as temples of socialisation; places where people don’t just pass through, but immerse in a world where they’ll stay, explore, have fun, meet others with the same passion, even learn – and do it with style. Secondly, Accessible Customisation which means Traditionally, “real” luxury delivered individualised products based on a buyer’s personal preferences, tastes and budget.
Last but not the least, Online Stores through which the luxury brands by Creating brand merchandise can strengthen customer loyalty and enlist fans to spread your name on the streets. (4 Luxury Marketing Ideas for 2013 Karen Weiner Escalera, president & chief strategist at KWE Partners, details four ways in which luxury brand marketers can reinvent
their marketing strategies for 2013).
OBJECTIVE OF THE STUDY
The Objective of this study is to build a marketing strategy model for the Brand-Conscious Indian Consumers.
LIMITATIONS OF STUDY
The study is completely based on Secondary research which was undertaken 2 years ago, when the economic conditions of India was far superior than what it is today. So doing a primary research in today’s economic conditions in India would help in coming into proper conclusions.
This study aimed at devising Marketing Strategies for the Artic Circle, a Canadian based Diamond company to understand the psychology of the Indian Consumers and buying behaviours of the average growing middle class Indian Consumers with increasing disposable incomes. Various articles and research papers suggest that Indians rank three in the world in terms of Brand-Consciousness. So there is an opportunity which can be untapped by Artic Circle Diamond Company.
Uncovering of the underlying dimensions of consumer aspirations as it relates to Brand-Consciousness provides managers with the underlying dimensions of fundamental needs of the consumers and therefore provide directions as to make decisions in their offerings in terms of product/services, communication, designing accessibility and pricing the same. The study also provides directions on the decisions on these, given the temporal considerations under which the manager is making the decisions.
Arora, R. (n.d.). Eight P`s of Luxury Brand Marketing. Dubai. Ashish Mansharamani, F. D. Marketing of Luxury Goods.
Carr, T. (2013). The luxury market outlook 2013. Luxury Daily . Carvalho, A. M. (2012). “Consumer behavior in the luxury industry: Getting a grasp on consumers,Intrinsic and Extrinsic Motivations“. Chaturvedi, D. (2010). India is next luxury goods hub. ET Bureau. Contributor, G. (2010, 1). The
business of fashion. Mumbai.
Escalera, K. W. (2013). Four Luxury Marketing ideas for 2013. Mumbai, Maharashtra, India. Krawitz, A. (2012, 09 06). Advertising diamonds.
Mehra, P. ( 2008. , 3 27). India ranks 3rd in brand consciousness. Mumbai, India. Nielsen. Indians among top three Brand Conscious.
Steve Hodgson, M. D. (2007, april). Confidence in Diamonds: Mine to market conference.