Strategic Brand Management-A Case Study
Strategic Brand Management-A Case Study
Strategic Brand Management-A Case Study
MANAGEMENT,
A CASE STUDY OF INFOSYS TECHNOLOGY..,
BANGALORE
ABSTRACT
While China represents brawn, India represents brain
- Philip Kotler
This quotation is very apt for Infosys in particular, software in general. Technology has
opened up new vistas for the global and has redefined the brand and its nature, scope and
extent of operations. Marketing is a very vital aspect of any brand strategy which offers
very unique challenges to marketers. While the discipline has reached very advanced
levels in developed markets, the Indian markets have just realized the importance of
brand building in a complex and changing environment.
A brand has to be unique and has to provide differentiation at any given point in time in a
competitive context. The time aspect has to be vital to ensure that the brand is always on
the top of customers mind.
A brand should functionally and rationally assure and reassure consumers on what it
stands for and it could stand for fashion and status. A brand could also stand for personal
grooming style which reinforces the look of an executive, it also associated with fun,
adventure, freedom and a feeling of community belongingness.
Brand equity is the value a brand adds to a product category. In todays context a brands
value can be converted into monetary value and hence a brand is an asset to the company.
These are techniques and methodologies to evaluate brand offering, creating and
nurturing a brand.
In the last decade Indian market has been witnessing the dazzling entry of numerous
multinational brands across product categories. The Infosys Technologies Ltd. had
positioned itself on prestige and status symbol two decades back. The power of a brand
has several dimensions associated. Infosys was established in 1981 with Rs.10,000, today
because of its brand management, from a local brand it has become a $200 million worth
global brand.
Mission Statement
To achieve our objectives in an environment of fairness, honesty, and courtesy towards
out clients, employees, vendors and society at large.
Infosys, vision and mission statements as one of the impressions and imprints to became
a super global brand. It is a integrated message imparted by every possible touch-pointcommunication, shareholders, offering business solutions for a dynamic digital
environment to the globe.
The values that drive to become global super brand:
Customer delight: A commitment to surpassing out customer expectations.
Leadership by example: A commitment to set standards in its business and
transactions and be an example for the industry and their own team.
Integrity and Transparency: A commitment to be ethical, sincere and open in their
dealings.
Fairness: A commitment to be objective and transaction oriented, there by earning
trust and respect.
Pursuit of excellence: A commitment to strive relentlessly, to constantly improve
themselves, its team, its service and products so as to become the best.
A Brief Profile
1981
Corporate Performance
Establishment in India.
1987
Global Initiatives
1993
Corporate Performance
Quality Initiatives
1995:
Corporate Performance
Globalization initiatives
1996
Corporate Performance
Globalization initiatives
Strategic initiatives
1997
Initiatives
Quality initiatives
Strategic initiatives
1998:
Corporate performance
1999:
Corporate performance
Globalization initiatives
Quality initiatives
Strategic initiative
2000
Corporate performance
Globalization initiative
Strategic initiatives
2001
Corporate performance
Globalization initiatives
2002
Corporate Performance
second
Globalization initiatives
2003
Globalization initiatives
2004
Corporate performance
Strategic initiatives
2005
Corporate performance
2006
Corporate performance
The company has invited what could be one of the biggest marketing services pitch by
any IT services company in India. Involving a couple of big Indian agencies to design a
strategy, the multi-media campaign would be directed at existing customers, prospects,
industry and financial analysts and media, primarily in the key markets such as the US,
Europe and Asia-Pacific.
But just like TCS and Wipro, has got stuck with the classical low-value image. This has
been the bane for the company, while playing for the big-ticket, billion dollar-plus global
contracts. In order to change this image the company has planned a multi-million
marketing surround programme involving branding, go-to-market, analyst relations,
public relations, online & field marketing. According to the companys internal brand
track, brand Infosys lags way behind global IT biggies such as IBM, EDS and Accenture
in total brand recall. Thus far, the companys branding efforts included participation in
media and industry analyst events, sponsorship of and participation in targeted industry
conferences, trade shows, recruiting efforts, community outreach programmes and
investor relations.
The company has also instituted the Wharton Infosys Business Transformation Award,
offered jointly with the Wharton School at the University of Pennsylvania to recognize
visionaries and Global 2000 organizations that use technology innovatively to transform
their industries. Infosys continue to invest in the development of its premium brand
identity in the marketplace, says the company in its annual report We believe that a
strong and recognizable Infosys brand will continue to facilitate the new-business lead
generation process and enhance our ability to attract talented personnel globally.
How does it matter whether the Infosys brand is powerful or not?
It wouldn't have mattered much in the past for any software company, but things have
changed in the last few years perhaps for the better or perhaps for the worse. Today,
overseas clients don't look only at the price quoted by the bodies they hire to write
software codes, but are keen to know where they come from. Yes, the India brand does
command some premium even now, but that alone is not going to land business for any
one. ``Price is no longer a deal maker. Today companies are looking at proven
capabilities, expertise and the brand to outsource their work,'' says Rolf Jester, Regional
Director and Chief Analyst of Gartner Dataquest (IT Services). Jester strongly urges
Indian software services companies to embark upon brand-building exercises in the US as
Gartner surveys have revealed that American companies are increasingly looking for
known names to outsource software rather than experimenting with new vendors.
While building brands in Western countries Infosys kept these factors in mind:
1. Go for exclusivity
According to Gautam Kumra, Principal, McKinsey and Company, Indian software
companies also need to differentiate themselves from each other. ``For an outsider, all
Indian software companies look the same today, with thousands of people, SEI CMM
Level 5 certifications, overseas listings... So these companies need to differentiate
themselves from the others,'' Kumra says.
8
Phaneesh Murthy, Head of Sales and Marketing of Infosys, says this has become an issue
not only between Indian companies but also between Indian and multinational firms.
``The US and Indian companies have also started to look similar now. Everybody has
operations everywhere...'' Murthy says.
2. Winning combinations
India has built a reputation as a software services destination, but it remains to be seen
how many of our companies would be able to build individual brands in the global
arena.``While our IT firms generally spend 15 per cent of their revenues on sales and
general administration expenses, US companies shell out a much higher rate of 25 per
cent. This is one reason why our companies enjoy a higher profit margin vis--vis US
companies.'' If Indian companies also increase the sales and marketing efforts, naturally
the cost will go up, affecting the profitability. However, unless they spend more on
marketing to leverage on their brand, it is difficult to survive.
In order to get around this issue, various companies adopt various methods. Take Infosys
for instance. The company wants its brand to be ranked amongst the top five IT service
providers in the world. The steps taken to achieve this goal: tie-ups with major media
houses such as The Economist for co-branding events, partnerships with reputed
academic institutions and renowned thinkers etc. Value addition is the distinguishing
aspect today in branding,'' says Phaneesh Murthy.
Outside India the most of the marketing efforts have been targeted towards US market. It
is only recently that company has started creating their brand awareness in other
countries like Europe, Japan and China.
CONCLUSION:
Brand is a strong weapon and asset, a component of anything and everything an
organization does. Brand is represented by the entire organization. Right from the gatekeeper to the CEO, including the suppliers and customers the Infosys or Infy brand
speaks volumes about its personality. Because of this powerful brand personality and
image, Bangalore, in particular and India in general takes pride and prominence in the
computer software and services market all over the world.
Reference:
1. Aaker, D.A. Building brands without mass media, Hardward Business Review,
January- February 1997.
2. Ramesh Kumar Marketing and Branding, Indian Institute of Management,
Bangalore.
3. Kotler, Philip Marketing Management Analysis and control, 1998.
Web sites:
www.infosys.com
www.tide.com
www.pg.com