Strategic Brand Management-A Case Study

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NAME OF THE GAME: STRATEGIC BRAND

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.

NAME OF THE GAME: STRATEGIC BRAND


MANAGEMENT,
A CASE STUDY OF INFOSYS TECHNOLOGY..,
BANGALORE
Introduction
While China represents brawn, India represents brain.
- Philip Kotler.
This quotation is very applicable for Infosys. Technology has opened up new vistas for
the global market and has redefined the brand and its nature, scope and extent of
operations. Marketing is a very vital aspect of any brands 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 a changing environment. There seems to be an inherent
paradox there is a vital need and ample scope for brand management on the one hand
and, on the other, there is a complete lack of conceptual awareness among marketers
(except for those brands and companies which make an effort to understand the brand
strategy.
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 consumers mind. The time orientation also emphasizes the need for brands to
update their offerings. A brand should functionally and emotionally 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; a brand
could also be 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.
There are techniques and methodologies to evaluate the value of a brand.
Building a brand is not confined to merely advertising or creating visibility; it is about
offering the right marketing mix elements. Brand building is not just naming a brand; it is
about creating value with regard to the offering of the organization and the value
associated with it. Branding associations enable a consumer to develop brand preferences
based on his/her experiences with the respective brand offering. Creating and nurturing a
brand involves
(a) creation of value as perceived by consumers
(b) creation of brand associations to reflect the value created.
(c) adapting the value to a change environment influenced by competitions, and

(d) adapting the brand associations to the changing environment in a contemporary


and consistent manner.
Branding is a dynamic process involving several elements of the marketing mix at a
given point in time.
Brand positioning is the most important fundamental concept in a brand strategy. It is
finding a niche in the minds of the target segment consumer in such a way that:
(1) the offering is perceived with a differentiation and
(2) takes into consideration the innate needs of the consumers whenever required.
The Infosys Technologies Ltd. has positioned itself on prestige and status symbol two
decades back. The power of a brand has several dimensions associated with it. On the one
hand, consumers perception of the brand is critical and on the other hand power of a
brand depends on the manner in which it is managed over a period of time in terms of its
association, imagery variant, brand personality, value and other brands of the company.
Infosys Technologies Ltd. has been managing very effectively powerful branding tool,
especially when consumers have developed goodwill towards the equity of a brand.
Infosys, the world over, stands for goodwill and prestige.
Against this background the present paper makes an attempt to analyze the imperative
need for a changed approach to IT world. This papers focus on Infosys has leveraged the
global trend of off-shore outsourcing destinations; Infosys provided end to end business
solutions that leverage technology. It provides solutions for a dynamic environment
where business and technology strategies converge its approach, focuses on new ways of
business combining IT innovations and adoption. While also leveraging an
organizations current IT assets; it work with large global corporations and new
generation technology companies to build brand and to implement prudent services
technology strategies in todays local corporate world, it became a global brand in
dynamic digital environment.
Local Brand and Corporate Industries
In the last decade, Indian market has been witnessing the dazzling entry of numerous
multinational brands across various product categories. We have to be faithful to the
process of liberalization, privatization an globalization. By this created a more space for
local brands become global brands. As the global market is known for its diversities,
globalization is to be carried out across the 4 Ps of marketing mix. This process of
globalization has been done by Infosys technology by its vision and mission statement.
Vision
To be a globally respected corporation that provides best of breed business solutions,
leveraging technology, delivered by best-in-class people.

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

First International office in U.S.

1993
Corporate Performance

successfully completed IPO in India.

Quality Initiatives

ISO 9001/Tickti certifications.

1995:
Corporate Performance
Globalization initiatives
1996
Corporate Performance
Globalization initiatives

Best Annual Report Award from ICAI


(Every year from 1995)
Set up development centers across cities in India.
Infosys Foundation to focus on contributing back to the
society.
Set up first office in Europe in Miltion Keynes, U.K

Strategic initiatives

e-business practice (Infosys internet consulting


practice)

1997
Initiatives
Quality initiatives

Set up office in Toronto, Canada.

Strategic initiatives

Assessed at CMM Level H.


e-business practices (Infosys internet consulting
practice)

1998:
Corporate performance
1999:
Corporate performance

First in Award for Corporate Excellence


Economic Times of India
$100 Million in annual revenue.
Indias most admired company by Economic Times
Survey

Globalization initiatives

Listed on NASDAD (First India registered company


Offices in Germany to list Belgium and Australia two
development centers in US.

Quality initiatives
Strategic initiative

Assessed at CMM Level 5.


Infosys Business Consulting Services.
Reorganization for competence building Domain
Competency Group
(DCG), Software Engineering
and Technology Labs (SETLABS), Communications
vertical practice (CAPS)

2000
Corporate performance

First company to be awarded the National Award for


Excellence in Corporate Governance conferred
by the
Government of India.
$200 Million in annual revenue.

Globalization initiative

Opened an office in France.


Opened new office in Hong Kong.
Global development centre in Canada and UK; Three
development centers in US.

Strategic initiatives
2001
Corporate performance

Combined the dedicated e-business practice with rest of


the organization.
Rated Best Employer of India in a study by Business
Today Hewitt Associates.
Touched $400 Million in annual revenue.

Globalization initiatives

Opened new offices in UAE and Argentina.


New development centre in Japan.

2002
Corporate Performance
second

Ranked No.1 in the Best Employers in India 2002


survey conducted by Hewitt Associates for the
Consecutive year.
First rank in Business Worlds survey of Indias Most
Respected Company.
Touched half a billion US dollars in annual revenue.

Globalization initiatives
2003
Globalization initiatives

Opened new offices in Netherlands, Singapore and


Switzerland.
Establishes subsidiaries Infosys China and Infosys
Australia.

2004
Corporate performance

Crossed US$1 Billion in annual revenue.

Strategic initiatives

Launches Infosys Consulting Inc.

2005
Corporate performance
2006
Corporate performance

Largest international equity offering of US $1 billion


from India.
50000+ Employees. Revenues crosses $2 billion.
Celebrates 25 years.

ABOUT THE CHANGING BUSINESS ENVIRONMENT


Like most business leaders and corporate Infosys agree that the world is changing. They
talk about how customers are becoming tougher. How competition is emerging
(seemingly) out of nowhere. Young upstart companies with new business models are
giving established incumbents a run for their money. They are challenging business to
speed up, slim down and become more nimble.
Tom Friedman, in his unique way of putting things, say the World is Flat.
At Infosys, management had the privilege of looking at these changes from a very
different perspective from the other side of the world. And it would agree with much of
what Friedman says, though it respectfully disagrees on some points.
Since the World is Flat, Infosys calls for Think Flat, because Infosys believes that
change is much about changing the business mind-set as it is about changing their
strategies and operations. Businesses that can quickly grasp the impact of the changing
world and responds to its threats and harness its opportunities are the ones that will
succeed.
As the playing field for global business is leveled, companies must shift their operational
priorities to:
Be the China Price
Build loyalty through faster innovation
Make money from information
INFOSYS THE BRAND
Infosys Technologies with its awesome brand value is a great study of a company that
hardly advertises, yet communicates with unerring effectiveness. Apart from the finesse it
exhibits in its below-the-line offerings, it quietly realized that a brand ambassador like
Narayana Murthy is invaluable. In fact, he is a brand himself and a unique brand because
he only endorses Infosys, not a plethora of products and services like other celebrity
brands. They also use such seemingly innocuous opportunities like their quarterly results
to extract huge media mileage for themselves. Couple that with their winning ways and
the result is magic!
BRAND BUILDING
Infosys wants its name to find a place in the roster of global IT services vendors. In a bid
to break into the elite club of global IT majors IBM, EDS, Cap Gemini and HP the
Indian IT services major is embarking on a major re-positioning exercise. The brand is
looking to change its perception from a mere one among the three tier-1 Indian
companies to one of the global biggies engaged in high-value business solutions.

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

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