The consumer behavior analysts have noted through many studies that ‘Country of Origin’ has become a significant phenomenon in today’s marketing practices. The words ‘Made’ and ‘In’ conveys the strength of the product.  The label ‘made’ on the packing label of the product refers to the manufacturing aspect of the origin of a product. It is often related to legal certifications, the technologies involved ingredients and techniques as well as work ethics and safety standards. And, ‘In’ refers to the origin and the geographical dimension of origin such as the location of the manufacturing process and the source of ingredients. ‘Made In’ therefore suggests information and associations that are both tangible and intangible. The ‘Made in’ tag helps consumers to make rational and emotional decision both.

In its 2005 “Year of Ideas” issue, The New York Times Magazine listed nation branding among the year’s most notable ideas. The way a country is perceived can make a significant difference to the success of its trade, business, tourism efforts, as well as its diplomatic and cultural relations with other nations. Simon Anholt coined the term ‘nation branding’ in 1996 and since then he has been working with governments to help them plan the policies, strategies, investments and advance which lead their country towards an improved profile and reputation. America has become the largest and most powerful brand in the globe; it virtually shapes the world in almost all dimensions such as national governance, policies, exports, people, tourism, economic and social status etc. In the fast growing global village nation’s branding is considered as big as federal mega-projects. Steve Silver and Sam Hill, both marketing experts define nation branding as most complex (brand) positioning problem; how can we brand a nation? A nation is as big as a Meta brand inclusive of numerous mega brands. There are so many mega activities of in a nation such as political governance, commerce, education, human resource development, environment, foreign affairs, infrastructure, environment, tourism, culture and heritage and most importantly the national character. The study of national character refers to anthropological studies after World War II.

The Japanese are known as law abiding people; the Americans are known for their grit for freedom – freedom of speech, freedom to pursue their own interests, freedom from bullying, freedom of religion, freedom of movement within the country, freedom to associate with whomever they please. The Chinese are known for their orientalism; the French are known as arty.

The country of origin (COO) specifically matter to the customers because every country has its reputation and the association between the product and the country’s expertise matters while buying products. For example Italy is known for designs, North Caroline for furniture, France for fashion and wine, the USA for entertainment, India for spices, Germany is famous for cars. Today’s consumer understands legal and safety issues sharply. Consumers today look at the ‘made in’ label with many perspectives. The ‘made in’ dependent on a combination of many factors – from heritage, to design and physical manufacturing, skilled labour, infrastructure, market intermediaries etc. Hence manufacturers can leverage a lot on the country of origin as one of their competitive advantage. A company needs to be physically present in the country; the design and patents need to have emerged from talent in the country, or the brand needs to have factories or parts of the production process in the origin nation. In the past, when it was  enough to ‘borrow’ associations from a country for pure marketing purposes, today consumers not ready to accept country of origin as a choice driver unless it is bona fide.

Successful brands contribute to nation branding. Of the world’s 500 largest stock-market-listed companies measured by revenue in 2014, among the Fortune 500 companies 28 are headquartered in Germany. Well-known global brands include Mercedes Benz, BMW, SAP, Volkswagen, Audi, Siemens, Allianz, Adidas, Porsche and DHL. Thus, famous brands strengthen branding of a country. Similarly, brands across every category, like Apple, Cadillac, Clinique, Coca-Cola, Ford, Kellogg’s, McDonald’s, Microsoft, Ralph Lauren, Starbucks and M&M’s have made the USA a strong nation brand. These corporate have made Germany and America leading nation brands.

The concept of branding is viewed as ‘cultural diplomacy’ of nations. It is a somewhat new way of looking at a nation, but every nation is already a brand. Every nation is perceived in the minds of people living differently in nooks and corners of the world. Some countries are known for good things, some for bad, and others have mixed insights. Based on the different perceptions, nations in the world interact and do business with each other, either contributing to its development or encumbering it. For example Africa is associated with civil war, Iraq with suicide bombings, Pakistan for terror bombing, India for scam and Cuba with Fidel Castro’s dictatorship (though he is dead). On the other hand, countries such as the US, Canada, Germany or France, are perceived positively for decades for their sound political and economic development. Nation branding is based on the underlying hypothesis that every nation can make a good or bad brand depending on its efforts. The important thing to realize about branding a nation is that one of its ingredients is the escalating value of something that is found already within that nation.

Consumers in developing countries like India, China, and Brazil still tend to prefer brands that come from other countries. Global supply, manufacture and export of goods began to accelerate in response for lower prices and greater choice of goods. Companies became international or multinational and the rise of an affluent middle class in the USA, Europe, India, China and UAE demand more sophisticated marketing. Due to rise of consumerism, categories of goods and services became more sharply defined. And, most brands started crossing the borders of their origin. With all the great business strategies, advertising, marketing and intelligent supply chain strategies even today in the 21^st century for most of the brands, their place of origin and heritage continues to be a key part of their appeal and differentiation. Their name, identity, design and symbolism of logos or trademarks become synonymous with their country or place of origin.

We should realize the fact that Brand building in emerging markets is a difficult task. As the rapid growth in an emerging market gives millions of consumers new spending power, they eye for and are encouraged by their counterpart in developed countries to buy established brands. Marketing efforts in developing countries is very multifarious.

In 2003, when Mahindra & Mahindra launched a smartly designed sport-utility vehicle called the Scorpio, CNBC India, BBC World’s ‘Wheels’ program, and others chose the vehicle for the

‘Car of the Year’ awards in the SUV category. That was not a small achievement: The made-in-India automobile won top honors ahead of global best sellers such as the Mercedes-Benz-E-Class and Toyota Camry sedans. To M&M, which manufactures tractors in several countries as well as vehicles targeted at India’s semi-urban and rural markets, the awards signaled that it could finally take the world’s automakers head-on. Even as the Scorpio successfully battles multipurpose vehicles like Toyota’s Innova and GM’s Chevy Tavera at home, M&M has started marketing the SUV in South Africa, Spain and many other countries.

As a nation, Singapore’s stunning rise from third world to first world in a matter of 30 years was spearheaded by an intensive and rigorous closely-coordinated programme of nation branding. Today, brand Singapore attracts the investments, business, trade, tourism and talented human resources from all over the world which is helping it further to become more flourishing nation. This state is internationally known as a vibrant, safe, corruption-free place to do business. Name any of the great businesses of the world; everybody wants to be in Singapore! The vibrancy and liveliness of the nation in its culture and the fine art attracts more and more tourists. In global surveys of quality of life, Singapore regularly tops the charts.

Nation Branding is catching up rapidly: the brand must be accepted internally first, i.e domestically, meaning throughout the nation, by all stakeholders. Only then can it be effectively promoted internationally.

Switch on your television for watching any program – be it news, a movie, dance show, award function anything and you are going to watch some of the baby brands’ commercials highlighting the usage and benefits. You will see cute babies and their pretty mummies in the commercials. Baby care products range from baby hair oil, talcum powders, strollers, baby diaper brand, nappies brand, baby soap brand, baby shampoo brand, baby skin care brand, feeding bottles, feeding spoons, baby furniture to a baby food brand! Baby products are available all over the market, be it an exclusive baby store, online, retailers or medical shops or the shop in shops in malls. The market size of Indian baby care products are expected to grow by 40 per cent to Rs 4,200 crore in 2014 on account of rising income levels and increasing awareness, ASSOCHAM (The Associated Chamber of Commerce & Industry) reported in Economic Times recently.

Baby care products need a well planned promotional mix for their positioning. Product Positioning is a marketing technique intended to present products in the best possible light to different target audiences. Since these products are bought for babies, the marketers need to target parent’s mindshare. And, parents will think and make sure whether the products are worth for their precious child. The baby care products need to connect to the emotions of the parents. The promotional mix comprises of five elements these elements are personal selling, advertising, sales promotion, direct marketing and publicity.  Promotional mix specifies how much attention to pay to each of these five elements, and how much money to budget for each. A promotional plan can have a wide range of objectives, varying from increase in sale, lunching new product, retaining its position, acceptance, creation of brand equity, positioning, competitive retaliations, and last but not the least shaping the corporate image.

Parents are keen to give their child the best of all. They want to see their baby growing happily and comfortably. And, the market is booming with products to meet with the parents’ expectations and demands like never before! India has emerged as the most preferred market for the companies involved in baby care product manufacturing and marketing, says a RNCOS (a business research and consultancy firm) report. The growing segment of population in the age group of 0-4 years in India provides the desired kick in comparison to other baby products’ markets worldwide. Many new entrants and existing players have flooded the market with traditional and specialized products in a bid to grab the market shares.

In a country like India, there is one core challenge which needs to be addressed. The Indian baby care market is restricted majorly to the urban areas. Despite accounting for majority sales, the urban areas are still to be fully penetrated when compared to other developed and developing markets in the Western countries. Thus, the players need to work on under-penetrated yet over crammed market. I am calling the baby care products under-penetrated because the demographic spread is broad and far-flung which needs to be covered, and the market is crammed because of substitution of cheaper local brands. When it comes to Infant food products there are challenges such as cultural aspects, competition from cheaper substitutes, and regulations on ‘Infant Food Promotion’ from Ministry of Health and Family Welfare which plays a key role in hindering the growth of this potential market in the country. However, baby care market in India has experienced growth over the past few years due to changing consumer mindset and increasing awareness of baby care products.

Rise in disposable income level, availability of premium products, and increasing awareness have significantly revolutionized the baby care market. Unlike olden days, when mothers would devote their all time to the infant, today’s moms can’t do it because family and career both are equally important for today’s women. She needs to balance her career and parenting on a fine line; she depends on support from family members, maids, nannies, crèches and the baby care products to bring up her child.

But, it is observed that baby care products are still taking baby steps while positioning strategies are concerned.  Baby steps are a tentative act or measure which is the first stage in a long or challenging process. The buyer behavior needs a closer look.

Even today in 21^st century majority of Indian households believe in using lentil atta (flour) for rubbing rubbing on the body of newly born baby before bath. It is supposed to remove hairs on the body. Flour is kneaded in to a soft dough ball dipped in warm oil. Turmeric and almond oil is used to knead the flour. Honey is the most common first food for most of the babies born in India.  For the care of umbilical region mustard oil or coconut oil is used, black kajal is used for eyes is applied on fore head to keep evil souls away from the baby. The child is kept inside the room for almost a month so that it is not exposed to communicable diseases. Traditional massage of a baby starts from the feet to head of the body of a baby with coconut/almond/olive oil prior to bath. It is customary not to cut nails of infant for few months. In India cutting of hairs for the first time generally after one or three years is like a festival for most of the people. It’s common practice of keeping hing (asfoetida) or ajwain (carom seeds) tied to the naval region of the baby. It is believed that it improves the digestion of the baby and helps in checking the colic pain. The home-made nappies are still in used for babies. So here goes the scenario. The traditional style is still practiced and it works great wonders. The child’s entry in the household is thoroughly enjoyed by all members. The entire family is engaged in bringing up the baby.

While we see the above described traditional childcare practice, we also see Proctor & Gamble, Johnson & Johansson, Wipro, Dabur and Kimberly-Clark working on profitable business models and well-positioned brands. That’s India.

Procter & Gamble’s diaper Pampers targets guardians and healthcare professionals handling babies and toddlers who use baby products as part of their daily routine. This includes baby care centers, hospitals, and other infant care providers. Pampers brand consists of three major product lines namely: diapers and pants, wipes, and Kandoo and bibsters. In it’s more than 50 years of history, Pampers successful positioned itself as a dependable brand in the market. The message of quality and product value still rings a bell in the minds of consumers. By educating and informing consumers on the possible products that can be used for the different developmental stages of babies, Pampers is able to gain loyalty from consumers. From time to time, Pampers had reinvented itself time and again and suitable strategies are adapted to suit with the current atmosphere and environment of the market. Currently, Pampers is giving a tough fight to substitute brands such as Huggies, Luvs, and number of private and generic brands that are also eroding the market share of Pampers. Huggies of Kimberly-Clark is the major competitor of Pampers because of its close similarity in terms of quality and price, in fact Huggies has superseded Pampers market share.

Dabur which is which is one of the leading players in the baby care segment, has three products in its portfolio, including the flagship Dabur Lal Tel which is used for massaging the child, it enjoys an overall market share of over 25 per cent. The company has other products such as Janma Ghunti (baby tonic) and Gripe Water (digestive tonic). The company emphasizes on the usage of power of Ayurvedic herbs andplant extracts thus making it safer to consume. There are brand loyalists of Dabur who will buy their products even when they shifted their base from India.

Johnson & Johnson sells baby skin care, bath acre, linen, washcloth, talcum powder, foaming products, shampoo and conditioning. J&J Brand positioning is done by increasing consumer awareness, through advertising & promotional activities, good product visibility which I think is very important and availability in the market through best supply chain practices.  J&J provides good visibility, consumer offer to the shoppers, better service to retailers, good competitive schemes, and better quality products at reasonable rates; thus, making its brand effective in the market in comparison of other brands.

A lot of market research goes in the entire product life cycle of the products. Marketing research is one of the most important marketing activities. Products are introduced depending on the taste preference and keeping the price point in mind. Three P’s – Popularity, Positioning and Pricing of the product matters in the market.  Young parents still go for affordable products while shopping for their babies. Thus, consumer buying behavior, purchase pattern and complex buyer behavior play a key role in deciding on the lines of introducing products/entering a target market.

While we see the market overflowing at times cluttered with range of products, in the coming years, innovation in products and marketing strategies will be the key focus areas for most of the companies operating in the Indian baby care market. It can also be very much expected that in future, penetrating deep into the urban market in conjunction with the rural market will provide exciting growth opportunities to the potential industry players. While we discuss about the positioning strategies, we need to seriously deliberate on some of the glaring features of Indian market:

Indian demographic distribution is 72 percent in rural areas while the rest 28 percent live in urban or semi-urban areas. With the average purchasing power of the Indian population increasing along with hygiene awareness the rural market is the market of the future. To me, the rural-urban divide is slowly blurring. However the traditional make-up of Indian families needs a different strategic treatment.

• India requires specialized products. It requires a flexible marketing mix offer.  You cannot afford to shake the traditional style of the childcare.

• The TV and print media can reach the buyers. These two media forms the potential to create the brand awareness among the buyers through various advertisements and promotional campaigns.

• Indian customers go for ‘value-for-money’ concept; reasonably priced, easy to use, less complicated instructions, comfortable, good fit, cleanliness-prone, and environment friendly and hygienic products are accepted. Most importantly products need small packaging – smaller packs are sold easily. Frugal packaging is always best sold in India.

• Indian market is OTC driven (over the counter); regular revamping of distribution network helps backed by re-staging of brands. The retail networking is expanding very fast; hence retail outlets are best suited for baby care products.
• The main drivers for the baby care market in India, will however, remain to be the rise in investments from companies, the soaring demand and the increasing working women population apart from the factors discussed above which will set the pace for this industry in India in the coming years.
• Developing a distinctive, differentiating and value-based positioning concept is a must. Creating a positioning statement which will touch the Indian mind set with key messages will always work.

Brevi from Italy, Combi from Japan, Bubba Blue from Australia, Tiny Love from Israel, Grup Baby from Turkey, US Baby from China, Kiddy Gmbh from Germany, Tolly Joy from Singapore and Farlin from Taiwan are some of the top brands which will be foraying into the Indian baby care products market. The market is growing at a fast pace.

In its 2005 “Year of Ideas” issue, The New York Times Magazinelisted nation branding among the year’s most notable ideas. The way a country is perceived can make a significant difference to the success of its trade, business, tourism efforts, as well as its diplomatic and cultural relations with other nations. Simon Anholt coined the term ‘nation branding’ in 1996 and since then he has been working with governments to help them plan the policies, strategies, investments and advance which lead their country towards an improved profile and reputation. America has become the largest and most powerful brand in the globe; it virtually shapes the world in almost all dimensions such as national governance, policies, exports, people, tourism, economic and social status etc. In the fast growing global village nation’s branding is considered as big as federal mega-projects. Steve Silver and Sam Hill, both marketing experts define nation branding as most complex (brand) positioning problem; how can we brand a nation? A nation is as big as a Meta brand inclusive of numerous mega brands. There are so many mega activities of in a nation such as political governance, commerce, education, human resource development, environment, foreign affairs, infrastructure, environment, tourism, culture and heritage etc.

Few years back marketing Guru Philip Kotler launched the World Marketing Summit (WMS), an annual gathering of professionals, in Dhaka to find solutions to global challenges such as climate change, healthcare and skill development. The purpose of the summit was building strategies for creating a better world.   When somebody asked a question to Philip Kotler how emerging economies like India and China should build brands?  He answered the question plausibly stating that emerging countries need to understand importance of marketing strategies. Imagine importance of marketing for building brands as big as nations.

In the emerging economies like China, India, Russia and Brazil many businesses are in the first stages of life cycles, most of these are product driven companies. In India lot of companies are just focused on market share, instant profits, and very little focus on marketing values. In some developing countries marketers have now recognized the importance of lasting impact of branding exercise, reputation and importance of being customer-driven.

Mr. Kotler’s advice to the business world is to become a brand that has distinct meaning. He says it is not enough for companies to be known for what they are producing or manufacturing; for instance it is not enough for people to know that Nike makes athletic shoes. Nike means much more…… It’s a lot of work!

Nation Branding: Role of Government

Coming back to nation branding; the role of governments is to appreciate the best companies around and to assist them in becoming more excellent in the country, and then in the region and then in the world. The government should make it easier for companies to be export-driven, to put in quality control policies, to raise adequate funds as and when required. The government needs to have business friendly approach.

Any nation in the world cannot take its position for granted. The economic scenario changes swiftly. According to leading economists in the world, there are approximately 28 emerging economies which are marching ahead. Countries like Brazil, China and India are regarded as the largest in the world today though the G8 has not included them. There are countries like Greece and Italy who are losing their foothold from the stable nations in the world. Greece is already in major breach of euro zone rules on deficit management and with the financial markets betting the country will default on its debts, this reflects badly on the credibility of the euro. There are also fears that financial doubts will infect other nations at the low end of Europe’s economic scale, with Portugal and the Republic of Ireland coming under scrutiny. If Europe needs to resort to rescue packages involving bodies such as the International Monetary Fund, this would further damage the euro’s reputation and could lead to a substantial fall against other key currencies.

The concept of branding is viewed as ‘cultural diplomacy’ of nations. It is a somewhat new way of looking at a nation, but every nation is already a brand. Every nation is perceived in the minds of people differently living elsewhere in the world. Some countries are known for good things, some for bad, and others have mixed perceptions. Based on these perceptions, other nations in the world interact and do business with other nations, either contributing to its development or hindering it. For example Africa is associated with civil war, Iraq with suicide bombings and Cuba with Fidel Castro’s dictatorship. On the other hand countries such as the US, Canada or France, are perceived positively for decades for their sound political and economic development. Nation branding is based on the underlying assumption that every nation is a brand good or bad depending on its efforts. The important thing to realize about branding a nation is that one of its ingredients is the intensification of something that is found already within that nation.

Singapore – Rise from third world to first world

Singapore’s stunning rise from third world to first world in a matter of 30 years was spearheaded by an intensive and rigorous closely-coordinated programme of nation branding. Today, brand Singapore attracts the investments, business, trade, tourism and talented human resources from all over the world which is helping it further to become more flourishing nation. This state is internationally known as a vibrant, safe, corruption-free place to do business. Name any of the great businesses of the world; everybody wants to be in Singapore! The vibrancy and liveliness of the nation in its culture and the fine art attracts more and more tourists. In global surveys of quality of life, Singapore regularly tops the charts.

Singapore’s exit from Malaysia was a unique historical situation. It is hard to think of another example in history when a state was expelled from a larger country. Singapore’s problems for its fight of independence were not distinctively glamorized.  High levels of unemployment, lack of sanitation, scarcity of potable water, and ethnic conflict were some conditions that marred Singapore then and still typify many third world countries today. It was common scene then on the streets of the country Chinese and Malays often fought street battles that ended in bloodshed.

The unusual effectiveness of the Singapore government has won worldwide acclaim over the years. The Institute of Management Development’s World Competitiveness Yearbook 1997, ranked Singapore as the country which has adopted most effective and fastest strategies and implementations in government policy. Berlin based Transparency International placed Singapore in fourth place worldwide in 2003 for absence of corruption. To explain Singapore’s economic success, it is important to understand the predominant themes that have distinguished its governance from less successful third world countries. At the heart of the Singapore model is the social contract that was articulated between the ruling PAP (People’s Action Party) run government and the people of Singapore. In essence, it said that while the people were willing to accept more government control they also gave up some individual rights. People worked hard while the government created the environment which delivered prosperity and a better quality of life.

The World Bank ranks nations on various parameters on the basis of ease of doing business, from 1 to 183. A high ranking on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firm. This index shows the best countries the world which allows businesses to prosper.  As of today, Canada ranks number one in this list.

Environmental scanning of a nation for brand building

Environmental scanning of a nation helps in the brand building exercise of a nation. It is the study and interpretation of the political, economic, social and technological events and trends which influences businesses to establish in a nation.  The following parameters involve in environmental scanning:  

Economic Environment

It is very complex and dynamic in nature that keeps on changing with the change in policies or political situations. It consists of three elements: (i) Economic Conditions of Public (ii) Economic Policies of the country (iii) Economic System and other Economic Factors such as infrastructural facilities, banking, Insurance companies, money markets, capital markets etc.

Political environment

The government policies affect the businesses extensively. Political beliefs of Government, political strength of the country, relation with other countries, defense and military policies, centre state relationship in the country, thinking of opposition parties towards business Units attract or distract FDI in a country. 

Socio-cultural environment

Influence exercised by social and cultural factors, not within the control of business, is known as Socio-Cultural Environment. These factors include: attitude of people to work, family system, caste system, religion, education, marriage etc.

Technological environment

A systematic application of scientific knowledge to practical task is known as technology. Everyday there has been vast changes in products, services, lifestyles and living conditions, these changes must be analyzed by every business unit and should adapt these changes.

Natural environment

It includes natural resources, weather, climatic conditions, port facilities, topographical factors such as soil, sea, rivers, rainfall etc. Every business unit must look for these factors before choosing the location for their business.

Demographic environment

It is a study of perspective of population i.e. its size, standard of living, growth rate, age-sex composition, family size, income level (upper level, middle level and lower level), education level etc. Every business unit must see these features of population and recognize their various needs and produce accordingly.

We Indians should take some lessons to brand ourselves in the globe.