"Any damn fool can put on a deal, but it takes a genius, faith and perseverance to create a brand."
             How can Tatas sell salt at a premium and still outsell its competitors? Why does coca-cola sell more cola based drinks around the world than anyone else? The reason is simple: They created strong brands that are trusted by the consumers. But can the same model be applied to sell commodity products like sugar, rice, water, petrol, steel etc. in transitioning markets like India? The answer is yes.
             For a better understanding let us first understand what commodity and branding are. A commodity is defined as a specific group of lowly differentiated products or services with high levels of substitutability and straightforward price discovery. Branding is creating a mutually acknowledged relationship between the supplier and buyer that transcends isolated transactions or specific individuals to achieve superior and sustainable share and price premiums, even in the most adverse of markets. Creating and managing a brand is like being the chauffer of an expensive limousine. It's expensive and you don't own it, so you better be careful not to do anything to damage it.
             But why should one brand a commodity? If you take out the low price at good quality tag what else do you honestly offer? Sell clay, and you are selling a commodity. Make it into a pot and you have manufactured a product. But if in the end, you send a designer bowl to the markets, and then you have a brand and all the big ticket profits. It has taken it a while, but there is growing evidence that India has internalized this simple reality.
             Branding commodity products is a way to escape from merely competing on volume and price alone. Brands help to differentiate products as they enhance their value beyond their functional attributes and hence are able to achieve a price premium. They build preferences versus competing products and therefore create long-t...