Why Brand Authenticity Matters for Brands

– Dr. S Ramesh Kumar
IIM Bangalore

Expectations from a brand and the consequent brand evaluations are predominantly the result of brand positioning and subsequent brand proposition claims. While several perspectives are associated with Brand Authenticity, this is an attempt to provide illustrative examples of brand authenticity drawn from three different domains- namely functional symbolic and experiential, as these form a fundamental platform on which brands make brand promises or claims that may drive brand authenticity.

In many product categories today, there is a massive proliferation of brands with very little to distinguish between them in terms of quality, proposition, and product differentiation. With the growth of e-commerce, the ability to differentiate between brands has also become increasingly complex, as many online stores have e-commerce-specific private-label brands at various price points and quality. What’s more, today, consumers strive to learn more about the positive and negative benefits of brand ingredients, claims, and benefits. They are becoming wary of brand claims that cannot be substantiated or felt.

In such a crowded and competitive marketplace where many brands are vying for consumers’ attention, brand authenticity makes a big difference for brands as it can drive brand preference and brand affinity. In simple terms, brand authenticity is the degree to which a brand stays close to its promises. Promises that are triggered by consumers’ perception and its brand positioning and brand proposition will occupy the centre stage of such triggers. For example, brands like Volvo (noted for safety), Starbucks (noted for its retail experience) and Red Bull (noted for its adventure-driven sensory experiences) present themselves as ‘authentic’ brands from different categories that have tried to ‘embed’ the brand promise in all their brand interactions with consumers. This is true not only of service brands but also of FMCG brands, where Gen Z consumers and the like evaluate the authenticity of these brand propositions in terms of what products the brand contains, the stand they take on societal issues and if they truly exemplify the promises they claim during pre- and post-purchase journeys.

Expectations from a brand and the consequent brand evaluations are predominantly the result of brand positioning and subsequent brand proposition claims. While several perspectives are associated with Brand Authenticity, this is an attempt to provide illustrative examples of brand authenticity drawn from three different domains- namely functional, symbolic and experiential, as these form a fundamental platform on which brands make brand promises or claims that may drive brand authenticity.

Functional Authenticity

Functional authenticity essentially stems from the brand’s functional proposition. This proposition may be based on a feature-based tangible benefit, an economic benefit, a benefit associated with time, or a combination of these factors.

ID idly batter is preservative-free, soda-free, and made with premium ‘natural’ ingredients. This is an excellent example of a brand that has traditionally changed the habit of preparing idlis and has diffused widely across various parts of the country. The batter adoption is based more on a ‘preservative-free, natural’ proposition than just taste. This has been instrumental in the success of the brand. This example is similar to the acceptance of chicory-based instant coffee with the pioneering brand Bru creating the convenience of coffee preparation in a culture that relied on the relatively laborious preparation of traditional filter coffee when lifestyles were changing, and consumers were readily open to the usage of gadgets and convenience-oriented offerings in the kitchen. iD’s success is even more noteworthy as it has diffused a habit associated with an eating ritual, and such rituals are strongly entrenched in the culture. The functional authenticity of the brand may have drawn consumers who may have been slowly breaking the habit of eating idlis because of the rigour involved in the preparation. A brand that has ushered its offering through a functionally authentic platform must be conscious of competitors entering the market with similar propositions. iD as a brand has now extended the ‘functional authenticity’ associated with the brand to other food products and filter coffee.

Symbolic Authenticity

Symbolic authenticity stems from the brand’s symbolic position on the environment, social issues, personal success markers, etc. This proposition may be based on the stand a brand takes. This builds brand affinity with the audience who resonate with similar values and helps the consumers show the world outside that they care as much about the problem. Water scarcity is becoming one of the world’s most significant challenges. Levi’s Water

Experiential Authenticity

Experiential authenticity essentially stems from the brand’s promise of superior experiential experience. This proposition may be based on experience-based benefits that consumers can genuinely experience across the pre- and post-purchase journey of the brand.

American Express Cards is a good example of experiential authenticity where the customer experience of acquiring, owning and interacting with the card member services is genuinely differentiated and valuable. The credit card market is highly competitive, with several cards with generic offerings and poor differentiation across bank cards. By taking the experiential authenticity position – through airport lounges exclusively for American Express Card members- carefully curated card member privileges, offers, and hi-touch customer service experience centres reinforce the brand’s authenticity positioning and value. In the case of American Express Cards, ‘Experience is the differentiator’, and this provides tangible and authentic value to their customers.

These categorizations are not mutually exclusive. Tata Motor’s Nano car was a very functional product, but symbolism associated with ‘cheap’ posed a barrier. Late Ratan Tata himself acknowledged it. So, the interpretation of authenticity with reference to the suggested framework depends on the context.

Brand Authenticity leaves an indelible emotion amongst the consumers; such an emotion fosters brand preference, commitment and loyalty.

Source: Economic Times