Laura Ries, a leading brand strategist and daughter of famed marketing guru Al Ries who co-authored in 1972 the concept called ?positioning,? currently runs Ries & Ries, a consulting firm. After graduating from Northwestern University with distinction in 1993, she founded Ries & Ries the next year in partnership with her father. The firm has many prominent Fortune 500 corporations as its clients including Microsoft, Ford, Walt Disney, Merck and Frito Lay, among others. Ries’s latest marketing book Visual Hammer is slated to hit the stands later this year. In an interview with FE’s Rasul Bailey, Ries shares her views on the current state of branding in India and the what needs to be done in this direction . Edited excerpts
You talked about the successes of Indian companies in your address at the World Marketing Summit last month in Dhaka. What do you think about the branding that Indian companies do?
I think India is fantastic and I consider it as the intellectual capital of the world. The level of education is incredible ? there are more PhDs and MBAs in India than anywhere else in the world and that, of course, has a great value and has contributed towards the success of the consulting and IT companies. The one thing that I think is missing from India is the ‘Great Brand’ that you have developed. Indians have got the intellect and determination, but understanding and executing branding to the level required to build ‘the great global brand’ is missing.
Is this due to lack of capital?
Certainly availability of capital is what has led the United States to build some of the greatest companies. That has facilitated the proliferation of so many great brands and great companies. That is one aspect. But that is easier done than the next, which is all about following the branding principles. In particular, I feel that Indians hesitate about the idea of focusing on branding. It goes against what has been done in India. There was no capital available, but the business had the family and the money and they just went into every business and put the same name on each of their products. The competition was such that they did not need a brand. So it did not matter what they did.
So are you saying that using the family name everywhere works in the initial stage but in the long term a multi-brand strategy is needed?
Years ago, when there was no competition and they had the money, the Tata name helped. Brands only matter in competitive markets. Now that the markets have become more competitive, it puts the Tatas on the global scene and it is a disadvantage to have the Tata name on everything. That?s a hard pill to swallow for the company.
The idea that Tata is a company that owns multiple brands is fine. That?s the idea that Procter and Gamble, one of the great companies of the world, is built upon. They own 20 brands and make over a billion dollars in sales in each. That?s a good model to follow if you can have each brand stand for something. But in the case of the Tatas, they can’t launch global brands all over again and, therefore, comes the strategy of the Tatas and many companies in China to buy global brands. But why not launch your own brands? You don?t need to buy loser brands from Americans and the British.
Is it a good idea for Indian and Chinese companies to buy brands and then rename them?
It depends on the situation. Usually brands are up for sale for a reason. They are failing. They are not the good apples. It’s not a good idea to buy a loser that may be well known but is still a loser. Look at the Chinese ? they bought the Volvo. Now Volvo was a very strong brand. It was well known and it focused on the idea of safety. Currently, the brand doesn?t stand for anything. And they tried to expand it more but that’s not going to be successful. I think they are going to waste their money.
There is no reason that you cannot build a brand yourself. You don?t have to buy it off from somebody. You are better off starting from scratch using a name that works. Look at Mahindra & Mahindra. They have got leadership. They have entered the US market, home to the world’s largest tractor company. That is a strategy which is working well in the US. It has got a name which is unique and different and works in English. It?s a good strategy. Leadership is a very motivating force in marketing.