While new brands keep coming in & disrupting market dynamics, the mega brands continue to stand tall. What is the secret of their legendary immunity?
Marketing
Adlai Ewing Stevenson II was one of the most intellectual and dynamic leaders that the American political sphere ever saw, and his tongue-in-cheek opinions on the US political scenario are legendary. He once commented, “In America, anyone can become president. That’s one of the risks you take!” It’s hard to disagree on both counts, considering some of the historic wins in recent US presidential elections and also the kind of burden the US President has to take on the domestic as well as the global front. Well, Adlai wasn’t one of them who went the distance, despite making three presidential bids as a Democrat. The essence of the statement rings a bell in the world that we see today – a world of opportunity where everyone can realistically look at the possibility of making it big in life. The explosion of channels and content in our own TV industry and the number of options that it provides common, yet talented people have to be famous – singing, dancing, cooking, anything that qualifies as talent (India’s Got Talent), exchanging moms, staying in a house for months incommunicado with the rest of the world, speaking the truth, adventure sports, quiz shows, testing your partner’s loyalty – says much on that.
A similar scenario presents itself in business, especially after the varying degrees of globalisation that countries have got themselves into. While all the talk of change, dynamism, uncertainty and disruptive forces gives sleepless nights to CEOs of top organisations globally, these very forces are incubators for numerous new business opportunities. One can in fact be led into believing that creating mega brands in a span of a few years isn’t an improbable task anymore. Consider the technology industry. Microsoft is 36 years old, and took at least 20-25 years before it was recognised as a brand phenomenon globally. Apple received funding from Microsoft in the late 1990s in order to survive, but is far ahead in terms of mcap ($355.35 billion) as compared to Microsoft ($215.27 billion) as on December 15, 2011. Google, the disruptive force that shook the net and Microsoft too, is just 13 years old. It started dominating the search market within years of its launch and became a trailblazer on the NASDAQ a few months after its IPO in August 2004 (current mCap of $200.18 billion). Google won on search, but lost out on social networking to Facebook, a company that is 8 years old and touted as the next big wave. While it’s not listed yet, its mcap is already being estimated at around $80-100 billion. What’s more, consider Zynga, which makes most of the games for Facebook (remember Farmville?). It will be listed by the time this magazine comes to print and is initially valued at $7.6-8.9 billion (it’s just over 4 years old).
But across all possible market disruptions, destructions and recreation, life for the so-called ‘mega brands’ doesn’t change much. The Interbrand 2011 survey that lists the top 100 global brands after a rigorous market survey and analysis, had only three new entrants as compared to 2010 (the list for 2010 had 11 new entrants while that for 2009 had 7). More interestingly, the top ten ranks remained unchanged for 2011 as compared to 2010 except for Apple, which moved in from 17 to 8 and replaced Nokia, which dropped from 8 to 14. The 4Ps B&M Power Brands survey for 2011 lists the top 100 brands in the Indian market after a comprehensive research and shortlisting from an initial list of 1360. The Indian market is far more dynamic in comparison. Yet, when you see the composition of the list, legacy brands occupy 65% of the positions! Legendary marketing guru Al Ries comments to 4Ps B&M, “The sole differentiating factor for a valuable brand is leadership.”
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2011.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in the league of best management institutes of India.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies
Marketing
Adlai Ewing Stevenson II was one of the most intellectual and dynamic leaders that the American political sphere ever saw, and his tongue-in-cheek opinions on the US political scenario are legendary. He once commented, “In America, anyone can become president. That’s one of the risks you take!” It’s hard to disagree on both counts, considering some of the historic wins in recent US presidential elections and also the kind of burden the US President has to take on the domestic as well as the global front. Well, Adlai wasn’t one of them who went the distance, despite making three presidential bids as a Democrat. The essence of the statement rings a bell in the world that we see today – a world of opportunity where everyone can realistically look at the possibility of making it big in life. The explosion of channels and content in our own TV industry and the number of options that it provides common, yet talented people have to be famous – singing, dancing, cooking, anything that qualifies as talent (India’s Got Talent), exchanging moms, staying in a house for months incommunicado with the rest of the world, speaking the truth, adventure sports, quiz shows, testing your partner’s loyalty – says much on that.
A similar scenario presents itself in business, especially after the varying degrees of globalisation that countries have got themselves into. While all the talk of change, dynamism, uncertainty and disruptive forces gives sleepless nights to CEOs of top organisations globally, these very forces are incubators for numerous new business opportunities. One can in fact be led into believing that creating mega brands in a span of a few years isn’t an improbable task anymore. Consider the technology industry. Microsoft is 36 years old, and took at least 20-25 years before it was recognised as a brand phenomenon globally. Apple received funding from Microsoft in the late 1990s in order to survive, but is far ahead in terms of mcap ($355.35 billion) as compared to Microsoft ($215.27 billion) as on December 15, 2011. Google, the disruptive force that shook the net and Microsoft too, is just 13 years old. It started dominating the search market within years of its launch and became a trailblazer on the NASDAQ a few months after its IPO in August 2004 (current mCap of $200.18 billion). Google won on search, but lost out on social networking to Facebook, a company that is 8 years old and touted as the next big wave. While it’s not listed yet, its mcap is already being estimated at around $80-100 billion. What’s more, consider Zynga, which makes most of the games for Facebook (remember Farmville?). It will be listed by the time this magazine comes to print and is initially valued at $7.6-8.9 billion (it’s just over 4 years old).
But across all possible market disruptions, destructions and recreation, life for the so-called ‘mega brands’ doesn’t change much. The Interbrand 2011 survey that lists the top 100 global brands after a rigorous market survey and analysis, had only three new entrants as compared to 2010 (the list for 2010 had 11 new entrants while that for 2009 had 7). More interestingly, the top ten ranks remained unchanged for 2011 as compared to 2010 except for Apple, which moved in from 17 to 8 and replaced Nokia, which dropped from 8 to 14. The 4Ps B&M Power Brands survey for 2011 lists the top 100 brands in the Indian market after a comprehensive research and shortlisting from an initial list of 1360. The Indian market is far more dynamic in comparison. Yet, when you see the composition of the list, legacy brands occupy 65% of the positions! Legendary marketing guru Al Ries comments to 4Ps B&M, “The sole differentiating factor for a valuable brand is leadership.”
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2011.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in the league of best management institutes of India.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies
