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68 per cent Indians trust brands: Havas Media Study

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MUMBAI: The results from Havas Media Group’s 2013 Meaningful Brands statistically demonstrate that Meaningful Brands outperform the stock market by 120 per cent. It demonstrates in hard financial terms, how the relationship between people and brands can benefit from measuring, communicating and delivering increased well-being.

In its sixth year, the 2013 findings show Indians as the ‘most passionate and grateful’ customers across the globe, believing brands ‘can and should’ contribute positively to their overall quality of life. People in India tend to believe the overall intentions of brands yet are a bit sceptical of their communication creating huge opportunities for brands to make a real, tangible meaningful difference. India is increasingly expecting brands to enhance personal well-being as brands become aspirational symbols of their improved standard of living.

The study measures 13 dimensions: impact of the brand’s ‘Marketplace’ benefits alongside its impact on 12 different areas of ‘Well-being’ (Personal and Collective), for a comprehensive view of its effect on quality of life. Unique in scale - 700 brands, over 134,000 consumers and 23 countries, it measures the benefits brands bring to people’s lives. The Meaningful Brand Index (MBi) forms the core of the Meaningful Brands framework allowing a view of brand results in terms of consumer perception over time.

Life Insurance Corporation (LIC), Cadbury, Unilever are the top Indian brands having greatest attachment (highest per cent of people who would care if they disappeared). The other top brands on the list are Britannia, Sony, Samsung, Parle-G, Tata Motors, Airtel, Hyundai, LGE and Maruti.

Globally the top 12 Meaningful Brands are Google, Samsung, Microsoft, Nestle, Sony, IKEA, Dove, Nike, Wal-Mart, DANONE, Philips and P&G. Top three sectors in India are F&B, Auto and IT & Consumer Electronics (ITC) where as globally it is Retail, F&B and ITC.

Continuing the trend from 2011 only 20 per cent of brands make a significant difference to people’s well-being with a growing gap between developed and emerging markets (Europe 5 per cent, USA 9 per cent and Asia 39 per cent). In Europe and the US people would not care if 92 per cent of brands disappeared. In Asia, people are attached six times more.

Since 2011, individual quality of life and personal well-being has become increasingly important in western economies. In emerging markets, people place more importance on a brand’s impact on their community and environment. At the same time, people in India expect brands to enhance their individual and personal lifestyles. The data shows the majority of top performing brands taking a holistic approach contributing to both.

Commenting on the study, Havas Media Group, India & South Asia CEO Anita Nayyar said, “The India findings highlight deep customer involvement with brands, making ‘meaningful’ the sweet spot of brand strategy in India. Meaningful - today is real business, delivering what matters when, in the truest economic and social sense. It drives brands to establish relationship connections with their customers directed towards sustained personal, societal and financial success.”

“More meaningful global brands are likely to come from emerging than western markets where brands need to reinvent themselves to reconnect with people, to avoid getting commoditised. This presents huge opportunities for existing and new brands to establish meaningful connections with their customers in India. Here consumers are still warming up to brands and core categories like F&B brands are seen as meaningful. The study is scalable and throws up rich inferences for a strategic outlook. LIC is an outlier being in the insurance category yet completely in sync with Indian touch points, thus its India’s 2013 top meaningful brand,”added Havas Media India managing director Mohit Joshi.

Other key India findings include:

  • 68 per cent people in India generally trust brands (Asia 58 per cent, US 36 per cent, Global avg. 45 per cent) Consumers in India not only trust brands more but also expect more.
  • 71 per cent believe that brands can play a role in improving their quality of life and well-being (Asia 65 per cent, US 41 per cent, Global avg. 50 per cent)
  • 82 per cent think companies and brands should play a role in improving our quality of life and well-being (Asia 77 per cent, Global avg. 70 per cent)
  • 79 per cent agree that large companies should be actively involved in solving social and environmental problems (Asia 75 per cent, Global avg. 71 per cent)

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