Indian brands create consumer conversation using Twitter

A new report shows that Indian brands are gradually turning to Twitter to create business focused conversations with their customer base.

The study by web strategy and digital marketing company Iffort looks at 66 companies across 9 business verticals analysing the purposes for which they use the micro-blogging site.

India makes top ten of Twitter users

For context, India now ranks 10th in the list of Twitter users by country - totaling 1.27% of all users.

Tweets were monitored randomly during the working week between November 2008 and February 2010. To be considered brands had to have a minimum of 100 followers, an activity period of at least 1 month and at least 50 tweets.

Moving from broadcast to conversation

While brand "broadcasts" - steady streams of news - are widespread, Iffort found more brands than expected are using the tool to create conversation for the purposes of customer service.

Headline findings

• Most active account - MSN India (38,857 tweets)
• Most followed brand- MTV India (56,560 followers)
• Most conversational brand - ICICI Bank (98.32 % tweets)
• Most Re-tweeted brand - Tatadocomo (31% tweets)
• Oldest brand - Bookmyshow.com (active since October 2007)
• Top Inactive Brands - Acer India (inactive since November 2009) and Apollo Hospitals (inactive since July 2009)

Best practice on Twitter

Iffort single out a number of brands for praise. Dell India and ICICI Bank are highlighted for customer service. Nokia India and Colors TV use the micro-blogging site effectively for brand promotion. Café Coffee Day have successfully created an online community using Twitter and Infosys provide useful company and industry updates.

Future success

While Twitter penetration will inevitably increase across business sectors, Iffort conclude that to truly engage consumers, brands must present a human and emotional dimension within their content.

Iffort also expects usage to evolve further. More companies are likely to use Twitter to conduct market research, track trends and comments about their own brand and competitor activity.

You can follow Iffort here.

March 16, 2010 No comments

Just 7 Indian brands make the Global top 500 in 2010

The Brand Finance Global 500 report features just seven Indian brands. Despite India Inc's growth domestic brands are failing to make an impact on the global stage.

The top 500 most valuable brands in the world have grown in value by 26% to US$ 2,873 billion. The US continues to dominate the table, with 7 of the top ten, by comparison India provides just 7 of the 500, three of whom are new entrants.

India's strongest brands

Tata and Reliance are India's most valuable brands. Tata is valued at US$ 11.2 billion, up on US$ 9.9 billion in 2009. Reliance is worth US$ 7.2 billion (US$ 6.6 billion in 2009). While value has increased, each brand slips in the rankings, Tata fell to 64 from 51, Reliance fell to 107 from 93.

Airtel's value was up slightly to US$ 3.1 billion, yet similarly, its ranking plunged to 288, from 215 last year.

Indian winner

State Bank of India is India's big winner jumping to 186 (from 344), it's brand value reaching US$ 4.5 billion. In addition, Bharat Petroleum, Infosys and ICICI Bank make the list for the first time.

Emerging market comparison

India trails its BRIC contemporaries. China has 18 brands represented, including 7 new entrants, Brazil 9 (4 new entrants) and Russia 8 (3 new entrants).

Brand building versus acquisition

India Inc's recent acquisitions - Tetley Tea, Jaguar, Land Rover, Corus, Whyte & Mackay - prove that the value of brand (at least at the right price) is understood. But considering India's buoyant corporate environment and headline making economy, the countries brands are struggling to make their presence felt outside of India.

Domestic market focus, for now

India's brands are inward looking. Considering the potential of the domestic market it is understandable as Indian companies attempt to exploit domestic market opportunities. The danger is that India's brands become captive within their own cost-conscious market and uncompetitive on the global stage.

Once the domestic market matures and becomes more competitive, India's brand owners will be lured on to the international stage in greater numbers. At this point understanding the value of intangible assets will become paramount.

February 20, 2010 No comments

UK PLC encouraged to target Indian opportunities

UK Trade & Investment research presents a strong case for investment in India.

The research carried out by Leeds University Business School concludes that Asia and Eastern Europe will become better places for British companies to make money than Western Europe.

Between 2005 and 2007, the countries offering the best opportunities were - 1) United States; 2) Germany; 3) France; 4) Ireland; 5) the Netherlands; 6) Belgium; 7) Spain; 8) Italy; 9) China and 10) Japan.

Redrawing the global trade map

A major shift in the global economy is expected. In the future China, India and the US will dominate, with the top ten countries increasingly dominated by the emerging economies of Asia, Eastern Europe and Africa.

Between 2012 and 2014, the top ten is predicted to be - 1) China; 2) US; 3) India; 4) Libya; 5) Ukraine; 6) Russia; 7) Romania; 8) Korea; 9) Mexico and 10) Singapore.

"The patterns of trade are changing around the world and British businesses are having to adapt." - Lord Davies, Minister for Trade, Investment and Small Business.

Head shift for UK PLC

While the USA proves the exception to the rule, the conclusions show that industrialised nations are likely to recover slowly from the global banking crisis, due to higher levels of debt and unemployment.

Consequently, British companies should be looking to developing nations like India for growth.

"Although many Asian economies are reliant on manufacturing exports and have been badly affected by slumps in global trade and external demand, many have also been insulated from the US subprime market This means that domestic demand in a number of Asian countries has largely been resilient to the global downturn." - Mark Robson of UK Trade and Investment (UKTI).

The report, Global Market Attractiveness Post 'Credit Crunch', ranked the UK's 52 main trading partners using an index based on IMF data for past and projected gross domestic product, purchasing power parity growth levels, and share in British exports of those countries.

February 14, 2010 No comments

Key indicators show India Inc recovery

This week has seen the release of a range of economic results, surveys and projections that suggest the Indian economy is showing concrete signs of recovery.

Improved economic growth

World Bank predicts in its "Global Economic Prospects" report that India's economy will grow at 7.5% in the fiscal year beginning April 1 2010.

Reporting on the figures, Hans Timmer, director of the World Bank's Development Prospectus Group said, "India has weathered the global crisis relatively well", recovery has principally been attributed to skillful macroeconomic management.

India Inc on a recruitment drive

International recruitment firm Antal established in their quarterly global survey - 6,000 firms in 30 countries - that 71% of Indian companies surveyed are hiring. This compares to around 50% in September last year.

Commenting on the figures, Managing Partner Joseph Devasia said, "confidence is back at its peak in the Indian job markets, its happy days again for job seekers".

M&A activity expected to pick up

Indian firms made US$ 22.6 billion of overseas acquisitions in 2007, outbound M&A last year was just US$ 1.3 billion. With Indian companies looking in comparatively good health and prices more realistic, India is expected to bounce back.

Vedika Bhandarkar of JP Morgan is cautiously optimistic, "At least conversations have started. How many of these turn into transactions is unclear"

Indian service and manufacturing sectors recover

India's service sector - that includes India's software services outsourcing industry - is growing at its fastest rate in 16 months. The HSBC India Services Purchasing Managers Index hit 59.0 in January, its highest since September 2008

In addition, India's exports rose for the second straight month and manufacturing grew at the fastest pace in more than 12 months.

Key decisions yet to be made

While these results prove how robust India's economy has become, governments microeconomic management skills will be tested again on 26th February, the likely date of this years budget.

Reserve Bank of India have suggested that government withdraw some stimulus measures, the business community feel this is premature.

February 3, 2010 No comments

India Insights examines Indian attitudes to outbound tourism

India Insights recently carried out research looking at India's growing outbound tourism industry and attitudes to international leisure travel.

Despite India's domestic travel and tourism sector taking a hit, outbound travel has grown.

Third largest outbound travel market in Asia Pacific

World Travel and Tourism Council figures show the number of Indian outbound travelers reached 10.8 million between April 2008 and March 31 2009, representing growth of 10%.

Competition to attract Indian travelers

Further growth is expected, Hong Kong experienced 25% growth in Indian visitors as recently as October last year. And a race is on to attract India's tourists, Himmat Anand, Chairman of the FICCI tourism committee, believes that 25 cities and countries have set up offices in India.

Scandinavian nations, Cyprus, France and Jordan are all targeting India's tourists.

Growth drivers

While India's economic growth rate has slowed, larger more developed nations have experienced long periods of recession. Consequently, the cost of accommodation, hospitality services and airfares has been slashed.

India's tourists have taken advantage of this and major tourist destinations like Singapore, Hong Kong, Europe and Malaysia have become increasingly affordable.

India Insights study

Our study has identified how the global slowdown has affected foreign travel, which destinations are currently popular, attitudes to the UK as a destination and how holidays are booked.

Interviews were carried out with a number of Indian travelers; here is a sample of their feedback.

January 28, 2010 No comments

India Inc running scared of social networking

Research shows India Inc is threatened by social networking. Findings show a lack of understanding about social media and the opportunities it presents corporate India.

ASSOCHAM estimates that 12.5% of productivity - average of one hour per day for every employee - in the corporate sector is lost due to employees accessing social networking sites like Facebook, Twitter, Linkedin and Orkut.

The popularity of these sites is of no great surprise, growth in India's social networking use was covered a year ago on India Insights.

Major assumptions

ASSOCHAM's alarmist findings make a couple of major assumptions; firstly that staff work no longer than 8 hours per day, secondly that all social network use is for personal purposes and companies see no benefit. Both are highly unlikely.

Internet addiction

Their press release dramatically concludes that 84% of users in Metro cities show signs of "internet addiction", as they spend more than a "normal" (what is that?) amount of time online and "can get irritable if they are interrupted while surfing".

Reading between the lines two things are immediately clear, social networks are an established communications tool in India and secondly, Indian corporations are struggling to understand how to utilize there potential. A conversation is taking place and Indian companies and their brands still aren't part of it.

Opportunities presented by social networking

ASSOCHAM and its members need to realize that social networks are here to stay and the onus is on them to understand the potential. Social media wont suddenly disappear and how realistic is banning it?

Only 25% of companies allow staff to use it for business purposes, meaning three quarters are ignoring its potential for research, marketing, recruitment, networking and business development purposes.

Missed opportunities

Corporate India could do worse than look at the likes of Pepsi and their social media program "Pepsi Refresh" and IBM's "IBMers Blog", which harnesses rather than outlaws their staff's passion for social media. In addition they need to remember that Dell earned US$ 3 million from @Delloutlet on Twitter between 2007 and mid-2009. Industry reports suggest this figure is now around US$ 6.5 million.

The problem for corporate India (and employers in general) isn't social networking; the problem is ensuring that employee's are effective at work.

Banning social networks is unlikely to improve productivity. If anything embracing it and developing a corporate strategy for it is likely to help with staff engagement and in turn productivity.

January 16, 2010 No comments