Talking Heads with ad guru John Philip Jones

Nandini Goswami - Televisionpoint.com | Mumbai

John Philip Jones

John Philip Jones, advertising guru and a well-known name in branding management, spent close to 25 years at the European operations of JWT. During that period, he handled the international advertising of Unilevers Lux for eight years.

Jones worked with a wide variety of advertising clients, and was most concerned with major brands of packaged goods. His responsibilities included many brands marketed by Chesebrough-Pond's (before its acquisition by Unilever), Beecham, Gillette, Nestle, Pan American, Pepsi, Quaker Oats (before its acquisition by PepsiCo) and Scott Paper.

Jones, who also spent a number of years in academia at the Newhouse School of Public Communications, Syracuse University, has authored international bestsellers such as What is in a brand?, Building Brand Equity Through Advertising, How to turn advertising expenses into investments and Behind Powerful Brands: From Strategy to Campaign.

Jones speaks about his perception of Indian brands, marketing and branding issues of global companies, consumer behaviour and the huge potential of the Indian middle class looking for best brands.

You have worked with many international brands and have researched Indian brands. What is the common factor among best brands when it comes to advertising?
A combination of providing functional benefits and added value is paramount. People are motivated to buy products in addition to the functional job that these brands perform. This move does not imply that the additional ingredient is the most important element.

An individual after all buys a brand to do a functional job. While a shampoo is expected to wash and beautify the hair, and a car is expected to transport us safely, there is something more as well. A brand, whether a product or service of minority or majority appeal, is a synthesis of something physical and something psychological.

Will you be working for Indian brands in future? And which are the brands that you feel have an impact on you?
Yes, I am talking to some of the Indian brands at present, but it is confidential. Well there are quite a few of the Indian brands, which, I feel, provide that extra value-add.

Kingfisher beer or Nestles Maggi are strong brands. Some of the Indian hotels are world class like the Taj and Oberoi hotel groups. Infosys is a good name in the Indian IT segment.

What about advertising of Indian brands?
I would say Incredible India is an absolutely brilliant campaign. Here, the functional characteristics are hardly present in the ad, but it is rich with powerful added values. It is an extraordinary piece of communication showcasing India as a brand.

Value addition is important but do all brands follow the same rule for a higher recall value?
See, there are both low and high involvement brands. For some products like cars, the purchase frequency is important but is should be looked at over years than weeks. There is a direct correlation between penetration and market share, if penetration doubles, so will market share.

But the relationship between penetration and purchase frequency is rather more complex. For small and average sized brands, purchase frequency is relatively constant despite any differences in penetration.

However, when a brand becomes large and strong, the purchase frequency tends to increase with the size of the brand. Large strong brands generate greater consumer loyalty than smaller weaker brands.

But aren't higher prices a problem?
The stronger the brand, the greater is the consumer loyalty and consumers willingness to pay higher prices. See brands like Coca Cola, Kelloggs cornflakes, Lux soap or Mercedes have never sold on the basis of low price.

When a brand is acquired, 25 per cent of the valuation is the price component and 75 per cent the strength of the brand. Look at Lux, it is over 80 years old and is strong as ever. Brands also have a direct effect on the stock market.

American Brake Shoe Company reinvented itself as Abex, went through communication changes, made its impact on investors and saw a very positive impact on its stock price.

The biggest financial brands globally have been impacted by the financial carnage and now the recession. Many of them have interests in India through equity or joint ventures.

Do you think this will have repercussions on Indian financial companies?
No. India is a huge economy with a thriving middle class, which is an economically active population. There is enormous opportunity for marketing of brands.

In fact, the recession has not hit India as it has in the other countries of the world. I feel that by 2010 India will re-emerge from recession and in the next 20-25 years it will be 14 per cent of the size of the US.

Brand growth in China or India… your preferences?
China has a large population and its GDP is higher than India. The GDP per capita is, however, complicated. India, I feel, is much more in tune with the times and there is a huge expectation of value growth.

India has a better long-term future than China where the government is authoritarian. India has an unparalleled opportunity for brand activity and enterprise. And there is a need to securing and retaining Indian talent in India.

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