News: Anil Ambani's Reliance group to create sub-brands

(BL 07/06/2006) Mumbai - With a master branding strategy in place, the Reliance - Anil Dhirubahi Ambani Group (R-ADAG) is planning to create sub-brands with some of its businesses.

Speaking to Business Line, Mr Sanjay Behl, Head of Branding, Reliance Communication Ventures, said, "We will be creating sub-brands with some of our products but the key equity will always come from the Reliance brand.'' For instance, some of its products in the wireless and mobile space such as R World and Hello would undergo a sub-branding strategy.

Adds Behl, "Depending on the genre of the product, there may a sub-branding strategy. But the purpose is not to have too many sub-brands as the equity of most of the products would go back to the Reliance brand.''

With the purpose of transforming its power brand into a customer-centric global brand in the future, the group has recently empanelled a set of six advertising agencies.

Behl further adds, "Reliance is the power brand and we want to make it an iconic, customer-centric global brand.''

Master branding

In fact like any other product, Reliance expects to have a master branding strategy whereby the power brand of Reliance would get used. Associating the brand with the icons in other industries, megastar Amitabh Bachchan, is currently featuring in its corporate film. "The contract with Bachchan is open-ended and flexible. He will not be featuring for every product and wherever there is s brand fit, we will be using him,'' claimed Behl.

Besides, Reliance ADAG has also roped in cricketer M.S. Dhoni as its brand ambassador in the recent past and is open to getting in more celebrities depending on how well they fit the brand. Recently, the group roped in O&M and Mudra to handle its corporate brand, while five more advertising agencies (Leo Burnett, Everest Brand Solutions, Mudra, Contract and Cartwheel) will be looking after the rest of its communications products.

Reliance Energy and Reliance Capital will be handled by Mudra and JWT, respectively.

'Club agency'

Adopting a 'Club agency' concept, Ajay Kakar, Head of Branding, Reliance Capital and member of the group brand team, said, "While we have appointed two agencies to handle the brand at the group level, we would like to consider the agencies across our group companies as `club agencies'. It is our commitment to keep them motivated and excited to give us their best.'' Meanwhile, the group is open to roping in more agencies, if required. As Behl says, "Although have about six agencies presently, we can always explore more and are open to roping in more agencies as and when we get into new segments.''Without specifying the ad budget allocated, Kakar adds, "We are going to be one of the largest spenders in the country. Considering we are in retail customer facing businesses and in the growth phase industry, we will not be cutting short on our budgets.'' Industry estimates put the Reliance ADAG ad budget at Rs 700 crore.