Businesses spend a considerable amount of time and even money figuring out the right name for their brands. As it turns out, this is a big deal. When chosen, the right name can evoke the desired emotions and responses from consumers. In this blog, I take a quick dip at some of the reputed brands in India and abroad and how they are using names that elicit the right response for their business. You will be quite surprised to see how people, in general, misunderstand the nationality of the business based on brand names.
Or was this the whole idea?
The success mantra of many successful companies or groups, is they (parent company) have stakes in many other companies (subsidiary companies).
Let’s begin now:
We are surrounded by so many people who are obsessed with the fashion and especially with fashion brands. Obviously branded apparel will be expensive compared to local, but the quality and design make us buy them. Take a look at some popular clothing brands in India, most of them have attractive English names. And this makes many people buy them. Like they say, to impress an Indian, if you are foreigner speak in Hindi or if you are an Indian, speak in English. This mindset has been studied very well by companies which have popular brands in their portfolio. Take for instance the Aditya Birla Group, which owns many brands like Peter England, Louis Philippe etc. The Birla group owns a few of these brands, and quite a few of them have an English name which attracts the Indian consumer. So, if you are purchasing apparel from these brands thinking they are foreign brands, think again.
Have you ever thought why the branded sunglasses are so expensive?
Of course, the feel/experience/coolness of branded sunglasses cannot be compared to the unbranded ones. But do you think, the difference in quality justifies the price being so high for branded sunglasses? Many are obsessed with brands, and sometimes even compete with others to prove that their brand choice is better than others. To all such people here is a fact which may surprise them. There is an Italian company called Luxottica, a very old company, which makes eyeglasses/ lens etc. Luxottica produces sunglasses and sells them with different brand names all over the world. Many brands which you may like are of this company such as Rayban, Vogue, Oakley; they also make lenses for Dolce & Gabbana and many other brands. When the Head of Luxottica was interviewed, he said they make all types of sunglasses and sell them with different brand names because people always look for variety, and thus have created competition in the market with their own products. But the public is unaware. And when asked about the high price of sunglasses, he says their manufacturing cost is much lesser but have kept the MRP high, because people are ready to buy for the displayed amount. Is this fair? Check out full video here: http://desinema.com/have-you-ever-wondered-why-ray-bans-are-so-expensive-heres-why/
In the last six months, in India, many of you have observed that the entire market in almost all cities was decorated with OPPO & VIVO banners, hoardings, flyers etc. After looking at those, I started thinking how these two Chinese companies manage expenses because of much marketing/branding. But the shocking truth behind this is again a very strategic game plan of a Chinese giant. One Chinese company named BBK Electronics is the owner of these two OPPO & VIVO brands along with one more popular brand, i.e., One Plus. This company BBK Electronics’ strategy is such that they make both smartphones, but they will market and sell with different names to create a competition and reap the benefits of segmentation.
We have one such company in automotive sector too, which owns more than eight branded cars/truck companies: the Volkswagen group. It owns companies such as Porsche, Lamborghini, Scania and many others.
This blog is my small effort in gathering some interesting facts about the business of branding. Share this piece of information with your friends who are unaware of such hidden truths.
Author: Manish Noola, nanoPix