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The Value of Branding in Emerging Markets
Johanna Hoopes | Friday 29th January 2010
 In the U.S., going green sometimes feels like a trendy marketing spiel that may fade as more companies incorporate organic materials into their products and abide by environmental standards. This is not to say that green buying a vapid fad. Responsible consumerism increases awareness on important issues and pressures companies to appeal to the purchasing habits of enlightened consumers. Often, green purchasing is associated with paying a price premium for value added goods. This added value comes in the form of less environmental detriment or more social good. In emerging markets, most consumers are not willing or able to pay a premium for greener products, and so green branding efforts have not been as successful. A sweet spot may exist where going green actually decreases production costs for companies and prices for consumers.While chaotic consumerism in the U.S. requires that companies put millions toward creative advertising campaigns and marketing budgets, consumers in developing economies tend to buy based on price, functionality, and reliability. In emerging markets, farmers may need new technology to improve their yields or patients require access to innovative treatments and medications. One argument is that marketing dollars should be used to provide access, education, or financial subsidy for these critical necessities. A strong brand can do just that. According to marketing guru Debbie Millman, brands embody "allegiances, affiliations and identities." A successful green brand can attract regulatory support, grease the wheels of distribution channels, and fund access to a low income customer base. Where companies are creating real value in the marketplace, a consistent, well-known brand image brings customers in. If a well established brand can go green while keeping their prices low, customers will gravitate toward those products. Further, connecting with communities by sponsoring events, partnering locally and donating products or funds are certainly ways to garner support and create a loyal consumer base. Unilever's Project Shakti, where women entrepreneurs are taught valuable business skills has created valuable jobs while increasing the brand's "good neighbor" image. The importance of branding is often overlooked by NGO's, who spend a disproportionate amount of time fundraising. Spending more on branding an image of an efficient and well-connected player in the public sector will bring donors and foundations eager to work with an effective organization. The Global Fund to Fight Aids, Tuberculosis and Malaria is a high profile NGO charged with the daunting task of meeting the Millennium Development Goals. Having pledged almost $15 billion to grant recipients in 140 countries, they partner with a plethora of stakeholders in the medical, science, government, and non-governmental sectors. Only 6 years old, the organization has achieved global recognition for their high standards and transparent business mantra. Their strong brand equity ensures that they have a seat at the table for high-level global health discourse. So it seems there is a role for green, responsible, and proactive branding in emerging markets. |
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