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Global branding calls for CEO attention
Recently Goldman Sachs brought out a report with a focus on Asia. The report detailed the increasing influence of China and India in the global market scene. With both the countries having about two thirds of the world population and a young and rising middle class with high disposable incomes, these nations have become the coveted marketing targets for global brands.
Both these markets are flooded with local and global brands but it is no surprise that the global brands always emerge as winners. So what is it that makes global brands tick and succeed in any given market?
The obvious answer would be that since these are ‘global’ brands they are global in their reach. Apart from this they have a presence in more markets, more resources to support their entry into new markets, bigger advertising budgets and of course the financial backing to sustain initial losses.
But a key factor in the success of these brands has been a strong branding strategy and a visionary leader. Most local brands do not have these advantages and so lose out in market wars.
Branding has evolved and gained importance in the past couple of decades. From being just a part of advertising or the marketing department’s functions, branding has become an important part of boardroom discussion.
The top management has begun to take branding seriously considering the fact that it can impact the bottom line. Branding can also influence the stock value of a company.
According to a survey, among the intangibles that determine a company’s stock value, the brand name is an important factor. Nevertheless, if companies have to increase their brand value and reap the benefits that right branding can give; they need to ensure that departments across the board follow the branding strategy.
All employees in the company must be made aware about the importance of branding and its influence on every function. This will allow employees to understand the strategic role their job plays in the branding process and also feel a sense of ownership for the brand. This understanding will help the internal branding process where the employees imbibe the brand image.
If branding has to find a place in the corporate strategy of the company, it has to have the support of the CEO and the management. When the corporate strategy is in tandem with the branding strategies, the internal and external direction of the company get unified.
The benefits of possessing a brilliant branding strategy can be used advantageously only if the management allows it to permeate into the culture of the organisation. A strong and unique brand image will obviously affect the organisational culture. An influential brand image will urge the company to be either customer centric or product centric which in turn will affect the company’s relations with its employee, shareholders and clients. If a brand has to assume such an influential role, it has to have the solid backing of the CEO; he must act as the brand champion, define and build the brand image.
To take on the global marketplace and develop a global brand, marketing should no longer be left to the middle management who may not understand the significance of branding in the larger scheme of things. The CEO and the senior management have to take on the role.
World-class companies have adopted this strategy where the top management is directly involved in building, sustaining and developing the brand.
These leaders lead from the front. They are the chief brand ambassadors and believe that branding is an important component of corporate marketing strategy and so give it due attention.
The role of the CEO in the highly competitive global market is no longer limited to being a business leader, he has to visualise, plan and develop the brand and market it aggressively if his company has to win in the global arena.
HEMA GOPALAKRISHNAN
faqs@cnkonline.com
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