Double jeopardy is a reality of brand existence, said Soumya Mohanty, Managing Director & Chief Client Officer - South Asia, Kantar's Insights Division. It is a marketing truism, she said.

Double jeopardy simply means if there is a large brand, it will continue to expand. The brand will continue to expand since it is more widely available and accessible, and so consumers will remember the brand more, explained Mohanty.

Mohanty was speaking at e4m India Brand Conclave 2024 on ‘Building Future Proof, Sustainable Brands’.

For bigger brands, double jeopardy obviously establishes a natural momentum of expansion because these brands are more frequently remembered and physically accessible. But does this imply that small brands have no chance of breaking through? Obviously not, Mohanty said.

"We have seen some brands have broken through the psychological construct of big brands that tend to keep growing, and they have done that because just being mentally and physically available is not the only way to grow. There are other ways to grow," she shared.

So, what drives brand growth?

Mohanty opined that a lot has been discussed around performance marketing and search engine optimization, but no one speaks about brand building.

According to her, Coca Cola remains the most chosen brand globally for so many years because of consumers' decision journey. “Whether the consumer is online or offline, it's the same person. So, a consumer's decision journey is like a feedback loop. There are three parts to it-- activation, experience and equity. If brands get all the three parts right, it leads to about 46% growth, as per the data that we have analysed.”

Speaking about equity, which contributes 27% to brand growth, Mohanty said that a brand is a brand because it triggers memories and associations in the consumer's mind and therefore the consumer has a natural inclination to pick it up. It is distinctive, it is differentiated.

“Equity is not spoken enough in boardrooms nor measured, but it does contribute 27% to brand growth and business outcomes,” she said.

According to Kantar Brandz, globally, it is brand equity and consumer perception that have sustained brands in the post-Covid world. “Investing in brands leads to actual shareholder return,” said Mohanty.

Mohanty shared data of top 50 India brands, which are worth 5x as much as they were a decade ago. “In 2003, the value was $69.6 billion, which grew to $339.9 billion. It's actually grown much faster than GDP growth over the same period. So, the natural GDP growth is about 7% and BrandZ top 50 has grown 18%. Around 4-5 of these brands, including TCS and Airtel, have made it to the global list as well.

Speaking further, Mohanty explained how brands drive value. “Demand power and pricing power,” she said.

“The easiest way to build fame or recognition for the brand is to build salience but that salience will be wasted if there is no meaningful association that is getting triggered. So meaningful salience drives demand power, whereas pricing power is how much of a premium can your brand actually command, and for that, you need to be meaningful. Brands also need to be differentiated, because unless you are differentiated, the consumer is not going to pay extra for you.”

According to her, strong brands tend to perform well across all pillars- meaningful, difference and salience- but the route to value differs.

“In India, the value of startups has dropped 15% in one year versus India's top 75 brands which actually lost only 4%. The data shows the need to build brands consistently.”

Speaking on sustainability, Mohanty shared that at Kantar they have found that globally, as well as in India, brands are lacking in sustainability credentials.

“The fact is that versus 11% of all the brands that are part of BrandZ, only 2% of the top brands in the BrandZ portfolio stand on sustainability. “The most valuable global brands today are not being seen as sustainable brands.”

She concluded the session with three key points, “Firstly, brand equity is the only route to sustainable shareholder value, all the rest are just routes to building brand equity. When you build equity, leverage your brand's differentiation because that can reduce the price sensitivity of the consumer. And the third is as you're building for today, keep in mind that tomorrow, sustainability could be a lead driver of brand equity. Globally, there are few brands that stand on it but not your leading brands, and it is definitely a missed opportunity in India.”