WPP, the largest marketing communications company in the world has hived off its brand consulting company Added Value into a separate company. Globally, Added Value services some of the biggest clients across various categories; its portfolio includes brands such as Volkswagen, Audi, Yamaha, BMW, Ford, Unilever, Kelloggs, Nestle, Levi?s, Adidas, Allianz, Deutsche Bank, Pfizer, Novartis, Thomas Cook and many others. In India it works for brands such as Reliance ADAG, Godrej, Cadbury, Raymond, Reliance Industries, Patni, and P&G. In a freewheeling interview with Pritha Mitra Dasgupta, Anand Varadarajan, managing director, Added Value India talks about the growing importance of brand consultation in India and the road ahead. Edited excerpts.

Added Value came into the WPP fold through an acquisition. Can you tell us about Added Value?s journey in India.

In 2004, WPP bought out three companies. One was Added Value in UK, second was Icon in Germany and third was Diagnostic Research in the US. These were three distinctly different companies. They were three independent agencies, each operating in the area of brand consulting. Icon was more into measurement of brands. Added Value was more about looking at a brand from a cultural point of view. Diagnostic was also into measuring a brand on a long term. WPP decided that all these companies were looking at the brand in three different ways and therefore it?s best to put them together so that there?s a holistic offer. So the final merger came through in 2004.

We have been existing in India before that and we were an Icon company. We were offering measurement of equity and so on. We measure advertising and we have our own copy testing modules. When WPP merged the three companies in 2004, it felt that there are too many entities in India. And therefore they decided to put Added Value India under IMRB (Indian Market Research Bureau). We were under IMRB from 2004 to 2009, when it was finally decided that IMRB is a research company and finding it difficult to manage a brand consulting company. And we started our separate operations from September last year and now we have a separate P&L (profit and loss) account.

How big is Added Value globally?

Globally, we have 22 offices in 14 countries and five continents. We deliver marketing inspiration wherever our clients need us to. At the last count, in over 150 markets. Every market is different. Every client challenge is new. Across our network we have built expertise in sectors including auto, consumer goods, energy and utilities, fashion and luxury, financial services, health, leisure and travel, retail, technology, telecommunications and media.

What are the services you provide in India?

We are on the strategic side of brand consultation. People come to us with tough marketing questions. Let me give you an example. Hindustan Unilever?s soap brand Liril. We haven?t worked on it but it makes a good example. Liril was a highly successful brand and then after a point in time it started losing market share and was really struggling. Now the company didn?t know where to take the brand next. Now that is what we call a tough marketing question. So, what are the issues, how to refresh the brand, how to reposition it and so on. So it could be a new question or an old one for which they didn?t have the answers.

What is the scope of brand consultation in India?

Right now the whole concept of brand consultation is very relevant in India because throughout the nineties all the multinationals and large companies had dominant market share. Suddenly, in every category there is competition both from local and international brands. So there are new incoming brands and then there is repositioning of old brands. And the need is to go beyond numbers.

The example that I gave you of Liril?they had dominant market share and they knew all about the numbers. So with them it was not about lack of information but it was about inspiration. And sometimes the thought comes from outside the category. We believe people buy a brand when they anticipate that it will make them feel better. Which is different from believing that the brand has a better product.

Also, people buy a brand when they believe its ?iconography? projects an experience that makes them feel better. We believe that brands that keep their iconography fresh, by injecting new cultural capital, build strong brand connections and equity. These brands become iconic.

Tell us about how you help a brand.

Our approach covers market, equity, positioning, innovation and communication. We essentially try to answer the 6 Ws ? what, where, why/why not, when and who. Cultural insights help us anticipate and influence the future rather than just react to it. We are structured around three practices. First, the qualitative practice that handles the cultural inspiration, trends, semiotic (signs and symbols) audits and character creation. Second is the quantitative practice that handles market segmentation, equity management, brand iconographic and stretch, copy testing, etc. And finally, the innovation practice. These consultants have come with significant client side experience along with experience in dealing with insights and innovation.

What are the challenges you are facing in the Indian market?

Many. Right now, the most curious and biggest challenge I have is the kind of competition I am facing. Last year when we started off as a separate company I was looking at the competition, which are the other brand consultation companies. And then we realised that competition was not restricted to the local market only, it is coming from all over the globe. Especially mid-sized consultation companies from New Zealand, parts of South Africa, the UK and the US, because they are not getting business in these markets and they are actually pitching for business in India. So, suddenly I don?t know where my competition is coming from, what price they are quoting, etc. I could be easily competing with somebody from Israel or South Africa. And clients suddenly have a plethora of choice. My second biggest challenge is that clients are always negotiating. My rate card is possibly the lowest in the market but still clients negotiate and bring it down. Talent is, of course, a third challenge.

What has been Added Value?s growth here. What are your future plans.

If we take the first six months of this year we have done about 150% more than what we did in the same period last year. By the end of this year it will about 200%. I want to open a second office in Delhi. One way to look at it is that I can be based out of anywhere. If someone sitting in Israel can service in India, I can service from anywhere in India. But we want to open a Delhi office because Delhi is a bigger market than Mumbai.