Why not use a brand index to measure national prosperity?
Before starting up with the views let us first understand what a brand image actually is, brand image is something that is used to get the percent of a brand’s sale with respect to the population of that particular country in the respective area.
Let us understand this with the help of an example,
Say a particular brand has a total of 30 percentage of sales in the area where around 50 percent of the population lives, our next step is to find the Brand Development Index i.e., BDI for that particular area, which could be given by:
BDI = 50(20x 100/50)
Thus Brand Index helps in knowing the amount of buyers for a particular brand in the desired region thereby giving an idea about the marketing effort. The more the population gets into the buying of the brand’s product, more its Brand Developing Index gets thereby increasing its market value. But the question which arises now is, does whole of the population or the maximum of the population actually into buying of these brand indexes, if yes, then the market measurements would be accurate and as per whole of the nation. But if not, then it shall not be used to define whole of the Nation’s prosperity.
Let us have a brief look about the Indian economic demographics:
After the implementation of Liberalization, privatization, globalization i.e., LPG, the international brands started entering the country and as a result, all the international as well as domestic brands were in the search of a brand identity, its exposure and the expansion of the brand.
There was one survey in order to get the real impact of this brand index in our country.
So it was found that, only after the year 2002, there could be seen a drastic change in the lifestyles of the people in India, their shopping style, eating habits etc. people now started moving to malls for shopping and at the same time eating junctions like McDonalds, Dominoz, KFC, Pizza Hut, etc became common for people.
But that was not all for the conclusion, the surveys shows us that, around 25 percent of Indian population lies below the poverty line that means it becomes difficult for these people to even earn the three basic needs of human to survive i.e., food, shelter and clothing. So they cannot even imagine of being a part of this brand index but at the same time covering 25 percent of the whole population makes it a bigger count. Thus adopting the brand index to measure the nation’s prosperity would not generate accurate outputs.
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