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Online Interactive Activities for Brand Recognition: Evidence from Emerging Brands

S. Shyam Prasad PhD

Professor in Corporate Strategy and Marketing

International School of Management Excellence, Bengaluru

s_shyam_prasad@yahoo.com

 

Dr. Shampa Nandi

Professor in Marketing & Quantitative Techniques & Principal PGDM

International School of Management Excellence, Bangalore

shampanandi12345@gmail.com

 

Amrutha Krishna, Pranathi A N, Shatakshi Vats

PGDM Students

International School of Management Excellence, Bangalore

amruthak.isme2224@gmail.com

pranathian.isme2224@gmail.com

shatakshi.isme2224@gmail.com


Abstract

This study aimed to discover what interactive activities of emerging brands build brand recognition.

The study used secondary data related to different interactive marketing strategies adopted by three leading emerging brands: Nykaa, MamaEarth, and Sugar Cosmetics.

Primary data collected from 695 respondents was used to investigate patterns in interactive activities.

SEM was used to analyse empirical data and examine the conceptual model.

The study examined online reputation, brand familiarity, and visual influence on brand recognition and brand image.

The paper provides crucial findings regarding interactive online activities and contributes new insights for practicing managers.

Keywords: Interactive Activities, Emerging Brands, Brand Recognition, Visual Influence, Schema Theory, Online Reputation


1. Introduction

The Indian market is flooded with emerging brands that have entered the market within the last 10 to 12 years.

Building powerful brands requires high levels of brand awareness, recall, and recognition.

Brand Recognition (BR) refers to consumers’ familiarity with a brand and their ability to identify it through visual or auditory cues.

Strong brand recognition increases consumer trust, market share, and sales.

With the rapid growth of Web3 and Online Social Networks (OSN), online interactions have become a powerful tool for brand building.

Social networking platforms provide firms opportunities to engage consumers and create strong brand recognition.

The study focuses on three popular emerging brands:

  • Nykaa
  • Mamaearth
  • Sugar Cosmetics

These brands were selected because they follow similar business models and target similar audiences in the beauty and personal care industry.


2. Literature Review

2.1 Brand Recognition

“The first lesson of branding: memorability. It’s very difficult buying something you can’t remember.” – John Hegarty

The primary goal of brand management is to make consumers recognize the brand.

Brand Recognition is a critical element of brand awareness and influences consumer purchase decisions.

According to Keller (1993), Brand Recognition and Brand Recall are two major dimensions of Brand Awareness.

Figure I: Relation between Brand Awareness, Brand Recognition and Brand Recall

Brand Awareness Brand Recognition Brand Recall Diagram


2.2 Online Reputation

Online reputation is essential for gaining consumer trust on digital platforms.

Online brand reputation includes:

  • Organic search visibility
  • Social media communication
  • Digital marketing activities

Social media communication integrated with other channels improves brand loyalty and brand reputation.

Hypothesis H1

Interactive Marketing’s Online Reputation component will positively affect Brand Recognition.


2.3 Brand Familiarity

Brand familiarity depends on consumers’ memory and knowledge regarding a brand.

Familiarity can arise through:

  • Usage experience
  • Advertisements
  • Word-of-mouth communication
  • Media exposure

Hypothesis H2

Interactive Marketing’s Brand Familiarity component will positively affect Brand Recognition.


2.4 Visual Influence

“People simply choose with their eyes.”

Visual content plays a major role in capturing customer attention and influencing buying behavior.

Social media visual storytelling has become an effective branding strategy.

Hypothesis H3

Interactive Marketing’s Visual Influence component will positively affect Brand Recognition.


2.5 Interactive Marketing and OSN

Interactive marketing evolved through Web 2.0 technologies and online social networking platforms.

Platforms such as Facebook, Instagram, LinkedIn, YouTube, blogs, podcasts, and wikis provide firms opportunities to build strong brands.

Firms must consistently maintain brand presence through visual and verbal strategies to remain in customers’ minds.

Hypothesis H4

Brand Recognition positively affects Brand Image.


2.6 Schema Theory and Brand Recognition

Schema theory explains how consumers organize and interpret information using cognitive frameworks.

Consumers process online brand activities and associate them with prior knowledge and existing brand schemata.

These schemata influence brand recognition and eventually shape brand image.

Figure II: Proposed Research Model

Proposed Research Model Diagram


3. Research Method

3.1 Research Type

The study collected both primary and secondary data for each brand separately.

3.2 Generating Scale Items

The study adapted measurement scales related to Brand Recognition from previous literature.

Three dimensions were analyzed:

  • Brand Familiarity (BF)
  • Visual Influence (VI)
  • Online Reputation (OR)

3.3 Data Collection

Data was collected mainly from female respondents between April 5, 2023 and April 16, 2023.

A total of 695 women participated in the survey:

  • 253 – Sugar Cosmetics
  • 216 – Nykaa
  • 226 – Mamaearth

3.4 Data Analysis Tools and Techniques

The study adopted a mixed-method approach using both quantitative and qualitative techniques.


4. Results

4.1 Qualitative Analysis

Interactive marketing strategies of the three brands were grouped into:

  • Online Reputation (OR)
  • Brand Familiarity (BF)
  • Visual Influence (VI)

Table 1: Content Analysis of Interactive Marketing Strategies

Name of CategoryName of ActivityDescription
OR (Mamaearth)Influencer MarketingTargeted millennials and witnessed 400% growth during COVID-19.
OR (Nykaa)Brand EndorsementKatrina Kaif endorsed Nykaa and promoted the brand.
OR (Sugar Cosmetics)Customer InfluencersTurned customers into influencers and leveraged user-generated content.
BF (Mamaearth)YouTube MarketingPromoted products through YouTube campaigns and digital marketing.
BF (Nykaa)Pink Friday SaleCreated shopping engagement through exclusive sale campaigns.
BF (Sugar Cosmetics)Virtual Try-OnAllowed customers to experiment with makeup virtually.
VI (Mamaearth)TV CommercialsFocused on visually driven advertisements and storytelling.
VI (Sugar Cosmetics)Packaging and AppUsed eye-catching packaging and visual identity in digital media.
VI (Nykaa)Nykaa TVCreated makeup tutorials and visual content using AR technologies.

4.2 Quantitative Analysis

Quantitative analysis assessed relationships between interactive marketing dimensions and Brand Recognition.

4.2.1 Demographic Data Analysis

Table 2: Demographic Profile of Respondents

CharacteristicsNumber of Respondents
Below 1822 (3.2%)
18 to less than 22146 (21%)
22 to less than 30300 (43.2%)
30 to less than 40117 (16.8%)
More than 40110 (15.8%)

4.2.2 Measurement Model

Confirmatory Factor Analysis (CFA) was conducted to evaluate Online Reputation, Brand Familiarity, and Visual Influence constructs.

Table 3: Measurement Model

Measurement Model Table


4.2.3 Reliability

Reliability and validity of scales were confirmed through CFA analysis.

All factor loadings were statistically significant and Average Variance Extracted (AVE) values exceeded 0.50.


4.2.4 Structural Equation Model (SEM)

Structural Equation Modeling was used to evaluate relationships among online activities and brand recognition.

Figure III: Path Model

Structural Equation Path Model


4.2.5 Test of Hypotheses

Table 4: Hypotheses Results

HypothesisRelationshipβResult
H1Online Reputation → Brand Recognition0.80Supported
H2Brand Familiarity → Brand Recognition-0.02Not Supported
H3Visual Influence → Brand Recognition0.23Supported
H4Brand Recognition → Brand Image0.88Supported

5. Discussion

The internet has evolved into a powerful source of communication and entertainment.

COVID-19 accelerated the use of digital channels for brand building and online engagement.

The study showed that Online Reputation and Visual Influence significantly affect Brand Recognition.

Social media advertising, influencer marketing, content marketing, tutorials, videos, and CSR campaigns helped the selected brands strengthen recognition.

Surprisingly, Brand Familiarity did not significantly affect Brand Recognition.

Emerging brands successfully gained popularity despite being relatively unfamiliar to consumers.


6. Theoretical Implications

The study used Schema Theory to explain the impact of online social networking activities on brand recognition.

It contributes new theoretical insights into online brand promotion and social media marketing.


7. Managerial Implications

Mamaearth, Nykaa, and Sugar Cosmetics established strong online presence through digital promotions, influencer marketing, content creation, and AR/VR technologies.

The major finding of the study is that Brand Recognition can precede Brand Familiarity for emerging brands.

This insight helps firms sharpen their marketing focus and prioritize recognition-building activities.


8. Limitations

The study considered only three brands, which limits generalization of findings.

Only online interactive activities were analyzed, leaving scope for future research on offline marketing strategies.

Future studies may include brands from industries beyond beauty and personal care.


References

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Bruhn, M., Schoenmueller, V., & Schäfer, D. (2012). Social media and brand equity creation.

Campbell, M. C., & Keller, K. L. (2003). Brand familiarity research.

Chen, M.H., Chang, Y.Y., & Lo, Y.H. (2015). Creativity and brand research.

Clement, J. (2007). Visual influence on in-store buying decisions.

Fornell, C., & Larcker, D. F. (1981). Structural equation models.

Halkias, G. (2015). Mental representation of brands.

Keller, K. (1993). Customer-based brand equity.

Lim, H., & Childs, M. (2020). Visual storytelling on Instagram.

Schivinski, B., & Dabrowski, D. (2016). Social media communication and consumer perceptions.