Baleno : Premium play using a phased-out brand?

Brand: Baleno
Company:  Maruti Suzuki

Brand Analysis count:  # 560

Maruti Suzuki Ltd ( MSL) is in the process of  foraying into the premium hatchback ( B+) segment with the launch of Baleno. The announcement was surprising to me since the company which is struggling to break into the premium segment has chosen to name the product with a phased out brand!

Interestingly, Baleno was MSL's foray into the premium sedan segment, 16 years ago. Baleno was first launched in 1999. Although the car was exceptional in terms of quality, MSL priced the product exorbitantly high. In 1999, the brand was priced at 8 lakhs. This along with the general VFM perception of Maruti brand caused a lukewarm response to Baleno. Later Baleno reduced the price substantially to around Rs 5.5 lakhs. Despite these efforts, Baleno failed to deliver volumes resulting in its withdrawal in 2006. It is said that the quality of the product is evident in the fact that Baleno is still used as a racing car in India.

It is in this context that the launch of the new Baleno hatchback becomes interesting. MSL has stated that it aims to break into the premium segment of the Indian automotive market. The company had created a premium distribution network branded as Nexa. The company had launched its premium crossover S-Cross through Nexa. 

Everyone knows that MSL has the issue of being perceived as a value-for-money brand. Many experts suggest that more than the VFM perception, the brand Maruti have an issue with the design. So far no product from MSL was having a premium design. 

When  the company has such a perception problem existing, why would it launch a " premium" car with a brand which was phased out? Frankly I don't see any logic or rationale behind that move. Baleno, in my personal view, doesn't have a lasting equity which  could help in the new product launch. Further, the new product is a hatchback and not a sedan. 

So what is the value that the old brand Baleno is bringing to the new product is puzzling. Baleno is also a product which failed due to its high ( premium) pricing. Now MSL is launching a high-priced hatchback in that same name is nothing but an irony. The only logic I see is that the Baleno hatchback is a global product and hence the brand. 

In my opinion, MSL has lost an opportunity to build a premium brand. By launching Nexa, the company wanted to create a separate identity away from old Maruti products. When the company has invested so much in creating a different identity, why would it bring back a brand which has the baggage of history? 

Premium-ness comes from exclusivity, stellar performance and brand equity. I wonder how could anyone relate premium-ness to a brand which was phased out because it was not successful?

On the branding front, I consider the Baleno branding as a big mistake. Baleno hatchback would be a successful product probably as a VFM product and I doubt whether it would be a premium brand as wished by MSL.

Mahindra Gusto : Kisi Se Kam Nahi

Brand : Mahindra Gusto, Centuro
Company : Mahindra Two Wheelers

Brand Analysis Count  : # 559

I think, this is the first time I am writing on two brands in one post. Mahindra had launched its 110 cc scooter in 2014. The brand is going to compete with the likes of  Honda Activa, Access etc. Gusto is interesting brand because it calls itself as a car in two wheels ! 

Gusto is positioned on its car-like features. The brand pitches against the cars claiming that it has car-like features like height-adjustable seat, remote flip-key, LED pilot lamps, find-me lamps etc. The brand has based this theme on the insight that car-owners look down upon the two-wheeler riders ( source - afaqs). Hence the campaign of Gusto features car-owners mocking the Gusto rider and become surprised when they find that Gusto had car-like features. 

Gusto was initially launched with tagline " Break Free" and was positioned as a fun scooter. Now the brand has adopted the tagline " Kisi Se kam Nahi".

Another interesting fact is that Mahindra is promoting its motorcycle and scooter using the same concept. There is a common campaign for Gusto and Centuro and both these brands share the common tagline " Kisi Se Kam Nahi . 

Watch the ad here : Mahindra Two Wheeler ad

Along with this long ad, there are small ads featuring the various car-like features. 

The concept and the innovation creates a wow feeling. I think Mahindra two-wheelers has done well in identifying good differentiators. The brands can be proud of being pioneers in bringing in car-like features into two wheelers. 

Having said that, these features can be easily copied by the competitors and hence the extent of sustainability of this differentiation is limited. Since Mahindra Two-wheelers is trying to get a foothold in the market, these feature rich products will help the company very much; provided the brands succeed in the basic product functions like ridabililty , reliability , performance etc. 

Brand Update : Honda Relaunches Jazz

After withdrawing the premium hatchback Jazz in 2013, Honda has relaunched Jazz with an aggressive pricing. Jazz is an interesting marketing story of a brand which failed not because of product but pricing. Honda had priced out Jazz in its earlier avataar. Now the company had become very responsive to the value conscious nature of the Indian consumer. 

Jazz in the 2015 version has been priced upwards of Rs 5.31 lakh which makes a great value proposition in the segment. The Jazz will compete with i20 and higher version of Swift. The new aggressive pricing, new styling and the Honda brand equity will definitely boost the fortune of Jazz in the new launch. 

Also unlike the earlier brand-pull strategy of Honda, there is a marked change in the approach of the dealers towards sales. I casually inquired about the Jazz at Honda service center when I gave my car for service and has been getting sales call for Jazz. This marks a clear departure from the earlier " Take it or Leave it " approach.

The brand is launched with the tagline " Nothing Else is a Jazz " and is playing on the sporty features of the brand. 

Watch the ad here : Honda Jazz relaunch TVC

With aggressive pricing, new styling and with a diesel engine under hood, Jazz would further boost the share of Honda in India for sure. 

Brand Update : Wagon R Teaches How to Manage Product Lifecycle

The festive season of 2014 saw the launch of  limited edition Wagon R Krest. Wagon R which was launched in 1999 is still the 4th largest selling car brand in India. The product is a classic example of how consistent performance + value-for-money positioning will achieve long-lasting success in Indian market. 

Wagon R has become a success because it is one of  the most practical car in the Indian roads. Be it space, comfort or reliability, Wagon R has delivered consistently over the last 15 years.

On the product front, Maruti has been very smart in ensuring that the product and the brand is kept relevant to fit the changing consumer needs.

The brand went for relaunches and modifications in 2003, 2006 and 2010. 

In 2013, Wagon R launched another variant- StingRay with a new positioning to attract the young consumers. 

This year, the company is keeping the PLC rejuvenated by launching a limited edition product branded as Wagon R Krest. The new variant has new front grille, audio system, reverse parking sensors, new seats and some sticker jobs. The new limited edition is priced at a premium of Rs 22000 over the original Wagon R. 

From 1999 to present, the brand has sold around 1.3 million units and counting.  In the branding front, the company had tried to maintain the brand's visibility . Earlier it used the actor Madhavan as the celebrity endorser effectively. More than the brand's campaign, it is the practicality of the product that has made it a best-seller.
Maruti has plans for a diesel version and an AMT version for this brand. This brand will be here for a long time for sure.

Brand Update : Xcent ropes in Shah Rukh Khan

Xcent launched by Hyundai in the sub-meter category has been well received by the customer. According to newsreport, the brand has sold around 35000 units since its launch. To boost the existing success,the brand now has decided to leverage its prized asset- the brand ambassador- Shah Rukh Khan.  

SRK has been the brand ambassador of Hyundai for the last 16 years. According to NDTV, this 16 years association is a record for any brand-celebrity in India. From the launch of Santro to the i10, SRK has been the integral part of the brand campaign for Hyundai. 

But more than the brand promotion, it is the performance of the products that create success in the Indian auto market.

SRK in the new campaign for Xcent amplifies the brand's promise of " more value for money ". 

Watch the ad here : SRK Xcent

In the new campaign, the brand had added an additional claim of " The real family sedan ". The well made ad pitches the brand against the tough competition from the likes of Honda Amaze, Tata Zest, Maruti Dzire etc. 

Revotron : The 3 in 1 engine

Brand : Revotron
Company : Tata Motors

Brand Analysis Count : # 544

Revotron is the new hope of Tata Motors. Tata Motors which once was the number 2 in the Indian car market, is now finding it difficult to be in the top 5 thanks to the nagging quality issues coupled with a negative brand perception. This brand is another example of  ingredient branding.

But Tatas are known for its resilience and Revotron is the result of a serious introspection and investment in developing an indigenous petrol engine with global standards. And from the media reports , Tata Motors have managed to live up to the high standards set by itself. And after many years, media has been kind to Tata Motors with a fairly good reviews about the engine performance.

The 1.2 Ltr engine is being promoted heavily by Tata Motors ahead of the launch of the two major new products - Tata Bolt and Zest. The Revotron brand is endorsed by the Indian F1 Racing star Narain Karthikeyan.

Watch the TVC here : Revotron
The USP of the Revotron engine is the 3 driving modes which is usually seen in high end cars. There is a city mode, Eco mode and a Sports mode. For a value-driven brand like Tata Motors, this proposition is a very powerful differentiation.
Platforms and not products are now important to a company's success. For automakers, engines offer the platforms on which many products can be made. Honda has recently demonstrated the power of platform with the diesel IDtec engine.
Tata Motors hope that the better engineered Revotron would help build a better image for the cars produced under it.

Brand Update : Fastrack launches helmets

One of the most successful homegrown youth brand Fastrack announced its entry into Rs 400 crore organized helmet market recently. Fastrack has grown from a watch brand to an umbrella brand endorsing products from watches, eyewear, bags and accessories. 

image source : gaadi.in

Although I am not a big fan of brand extensions, I have to admit that Fastrack has been able to spot opportunities ( gaps) in the market where it can fit in without diluting its core positioning.

Helmet market is highly cluttered with lot of local brands and minimal differentiation. Although there are established players like Studds, the organized market constitutes only 20-25% of the total market. Since the designs and styles of helmets can be easily copied, differentiation becomes very difficult in this market. 

Many motorists also feel that helmet is a grudge purchase since they wear it out of compulsion . Hence focus of many commuters will be to spent less, get a helmet and carry on.
Fastrack has priced its range between Rs 1495 - Rs 3495 charging a premium. The pricing , in my opinion, is steep and make the product out of reach for many consumers. 

It is in this context that Fastrack's foray into this market becomes interesting. Fastrack definitely will have a headstart because of the brand's equity. But how it fares will depend on the freshness it will bring into the design and style aspect of the product . Since competitors will waste no time in copying the design the challenge will be to keep one step ahead of the others.

Maruti Estilo : RIP ( 2009-2013)

Finally  Estilo is dead. From a sub-brand ( Zen Estilo) to an independent brand and finally to a dead brand, Estilo never had a good run in the Indian market primarily because it tried to step into the iconic place of its predecessor- Maruti Zen.

The fault was not  with the product but with the messy brand experiments and the lack of giving proper positioning of Estilo. The primary error was made when Maruti decided to brand the new car  which replaced Zen as Zen Estilo. While the intention was to keep the Zen brand alive, the main issue was that the new product did not share any commonalities with the outgoing Zen. That created unwanted dissonance in those who expected the same peppy personality of the original Zen.

To be fair to Estilo, the car was spacious and good. But Maruti never was able to give a space for Estilo in its crowded product portfolio. It was to fill the gap between Alto and Wagon- R but was not able to quite do it effectively. Consumers viewed it as a compromise primarily because of the perception. Maruti was also not keen of giving any sort of promotional push to the brand neither was any thought on the positioning of Estilo. 

So when there was an option , consumers stopped looking at Estilo as an option. 

With the death of Estilo, the legacy of Zen has completely ended.

Related Post

Zen RIP ( 1993-2009)

Maruti Suzuki Stingray : My Thing ,Everything

Brand : Stingray
Company : Maruti Suzuki

Brand Analysis : #532

Maruti Suzuki recently launched another brand in the crowded Indian hatchback market. The new brand is Stingray. The launch has created a hell lot of confusion in the branding of the new car. While most of the media has touted the new brand as a variant of Wagon-R , actually the company intended it as a brand separate from Wagon-R. But media killed that scheme. If you look at the campaigns and the brand micro-site, Maruti had intended to position this brand differently from Wagon-R.

Wagon-R has been one of the best-selling models of Maruti. All though the looks were not the best, it was one of the most practical cars especially for city drives. Launched in 1999, the brand had sold a phenomenal 12.77 lakh units till date.

Maruti had tried to push the car through its life-cycle through incremental product and design changes. The latest was the " Blue-eyed Boy" campaign in 2010. However, the intense competition has somewhat pushed Wagon-R behind. According to ET, the brand was now in the fourth position in the segment ( link).

According to reports, Stingray was first launched in Japan as a sportier variant of Wagon-R. 

Stingray is targeting the younger crowd. The brand is positioned as a cool car that have it all. The ads typically is trying to convey hip & cool attribute. Watch the ad here : Stingray

The new trend in the market seems to be the mad rush to attract the youngsters. Tata Nano is the new entrant in the mad rush with their new " Awesomeness" campaign.

The tagline of Stingray is " My thing, Everything" which in a way is trying to be everything that an young consumer needs.Stingray is priced premium over the Wagon-R. The starting range of Stingray starts with Rs 4.09 lakh while that of Wagon-R is Rs 3.5 Lakh.

What is interesting about this brand is the unique situation that it fell into. The brand tried to distance itself from Wagon-R but media has forced the label of Wagon-R Stingray into it. One cannot wish away the power of association. The new brand looks very very similar to Wagon-R so one cannot blame for this association. Similar issue is there with Vista which was launched as a new brand but is strongly associated with Indica.

I am not implying that the company doesn't know that such a kind of association will happen, its commonsense that it will happen. But its interesting that media explicitly put Stingray as an extension of Wagon-R without blinking an eye. 

The association with Wagon-R is good for Stingray because of the immense equity that Wagon-R enjoys in the market. Maruti feels that the life-cycle for Wagon-R will slowly move to the decline stage . So there needs to be a replacement for this bestselling car. By launching the new product without the endorsement of Wagon-R, Maruti hopes that the young consumer will not consider it as a " Old and Dated " brand and over a period of time, Stingray will have a position distinct from Wagon-R and in future will takeover the position of Wagon-R.

Brand Update : TVS Wego wants you to Find Your We Time

TVS Wego , launched in 2011, was an earnest effort by TVS to garner a fair share of the Indian scooter market which was dominated by Honda's Activa. The brand had a high profile launch with a campaign pitching on one feature - Body Balance. 

Two years down the line, Wego although had a good start failed to make a significant impact on the scooter market ( source). The customers were not that impressed by the way the company had tried to convey its message through the launch campaign.

In 2013, TVS is running another campaign with a new theme - We Time. The new thinking is probably the result of a new agency ( Dentsu India) handling the account. In India we see the phenomenon of changes in brand positioning as and when the advertising agency is changed.

However, the new agency had thankfully changed the positioning away from the body-balance theme upon which the product was pitched. The new campaign takes a holistic view of the product features and takes the pitch above the features into what they call- We Time. I think the brand wants to convey that the scooter is so agile that the obstacles are easily evaded.

Watch the ad here : TVS Wego We Time

Body Balance is still the USP for the brand however, the brand has sidelined it in the commercials. There is still no WoW factor in the product that will hook customers to it. The new ad is watchable but doubt still persists whether the brand has made a strong case for itself against the leader - Honda Activa ?

Related Brand
TVS Wego : Body Balance

Fiat : It is the Service, Stupid !

Corporate Brand : Fiat
Brand Analysis Count : 525

World's 7th largest automotive company, a company that markets iconic brands like Ferrari , a company whose diesel engine powers the best selling hatchback ( marketed by a competitor) is having a market share of ~0.3 % share in World's 5th largest automobile market. Isn't it ironic !

Fiat had so far three avatars  in the Indian market. In its first avatar , the company licensed its product to an Indian company Premier Automobile Ltd. Premier sold these cars under the brand name Premier Padmini and Premier 118 NE. That was in the early 1990s.

In the next avataar, Fiat came to India as Fiat India Automobile ltd ( FIAL) in 1997 . During those times, the company launched Fiat Uno in India. The product although  had a dream launch with over 30,000 booking , the dream went sour since Fiat's partner PAL couldn't deliver the orders. The lack of delivery created a backlash from the customer. 

Besides once the product was in the market, there was a feeling that Fiat bought an outdated model to India.

In 1997, Fiat formed a JV with Tata Motors to jointly manufacture and distribute cars in India. Under the JV, Tata Motors would allow Fiat to use its dealers for selling the Fiat models. The Fiat engines were inturn used in Tata Motors models like Indica, Manza etc.

Fiat launched Palio during these times. Palio initially gained lot of customer attention. The brand was endorsed by Sachin Tendulkar. The car earned a reputation for being a very sturdy car with a good engine. During this time a sedan brand Sienna was also launched. But yet again, Fiat was not able to build on the momentum generated by the initial launch of these cars. 

In the  early 2010, the company launched two modern models Fiat Punto and Fiat Linea. These cars had drop-dead gorgeous looks and like any other Fiat launches, gained lot of customer interest but again the take -off in sales never happened. 

In 2012, the Tata Motors -Fiat JV collapsed. According to newsreports, Fiat is now on its solo life in India and has incorporated Fiat Group Automobiles India Pvt Ltd as a fully owned subsidiary . 

It is interesting to note that India's best selling car brands run on Fiat's engines. The best sellers like Maruti Swift , Dzire, Indica, Manza all run on Fiat engines but how come Fiat is not able to produce a best-seller. 

Only one reason- commitment. Fiat so far was trying to avoid committing itself to Indian market. It never had a serious intention to build itself in the Indian market. When companies like Ford, Tata Motors, Maruti etc had took pains to establish dealerships and service centres all across the country, Fiat opted to take a short-cut by roping in partners who never delivered. 

Service is a very big component in the decision making process of a car buyer. Its common sense that Indian consumers who typically kept a car for more than five years ( earlier even 15 years) look for a trusted brand who offered good service back-up. That is why despite all short-comings, Maruti still rules the Indian market with more than 60% share
Fiat's biggest mistake was its lack of service support for the consumers. It had all the time to build a robust network atleast in the key markets. But rather than that Fiat outsourced a very critical component of a automobile brand's building block.
Fiat had realised this and is now building its own channels and it is not easy. Concurrently, the brand is trying to build its trust back through campaigns pitching its two models Punto and Linea.
Watch the ad here ; Fiat Corporate campaign
Fiat has taken the slogan " Make the Move" urging consumers to take the leap of faith and buy a Punto or a Linea. But Faith needs to be built in the mind of the consumers through actions and ads only serves to reinforce the faith.

Fiat, due to its lack of commitment  , was never in the choice list in the buying process of an average Indian consumer. The typical reaction was " the car is good but I am worried about service ". It takes lot of time and effort to change that. 

Brand Update : Honda Jazz RIP ( 2009-2013)

According to news-reports  Honda has decided to put curtains to their premium hatchback Honda Jazz. Honda Jazz launched in 2009 was the most expensive petrol hatchback available in the Indian market. The brand was priced in the range of Rs 8- 9 Lakh which was at par with lot of mid-segment sedans.

Although the brand had impeccable Honda Quality, the aggressive pricing made consumers give a luke-warm response to this brand. Only the hard-core Honda fans who wanted exclusivity opted for Jazz.

In 2011, Honda decided to rationalize the pricing of Jazz and reduced the price by almost Rs 1.5 lakh. Despite the price -drop, Jazz was quite expensive and the move was little too late. 

The shifting of Indian consumers to diesel cars coupled with new launches and offers from quality brands made Jazz less relevant to Indian consumer. The diesel-focused Indian car market has been giving lot of problems for  Honda . 2013  will see Honda entering the diesel car market with its Amaze brand. Honda is also rejigging its product offering and Jazz did not fit into the new plans. Although reports suggest a relaunch of Jazz in 2014, the brand is now dead for all practical purpose.

Things would have been different if diesel and petrol prices were the same in India. Had it been like that  Jazz would have found some takers . But the huge price differential between diesel and petrol is giving nightmares to companies like Honda who was late in developing diesel engines for India.  I thought that Jazz would come with the diesel version once Amaze is launched but surprisingly Honda decided to kill this brand and concentrate on the new launch.

Jazz is a lesson for marketers who in their aggression turn a blind eye towards value. Brands should first convince the customers about the value  it offers and then take pride in that. But being aggressive just because there is a well respected brand name is a big mistake. 

Related Brand

Honda Jazz

Brand Update : Tata Safari rejuvenates through Storme

Tata Safari  which is in a critical stage of its lifecycle has launched the much awaited Storme recently. The new Storme is a completely updated Safari and is expected to bring back the much desired consumer interest .

Tata Safari which is a true-blood Indian SUV failed to capitalize on its long innings and a hard-core fan following. The brand although came up with some wonderful brand campaigns however failed to address the quality issues that nagged the brand from its earlier days. Safari did not have any big mechanical issues but many customers opined that the brand failed to rise itself to the higher standards of quality that the competitors were delivering. But still there were lovers for the brand because Safari had a character which was unique and appealing to certain customers.

Despite the fact that Safari had a distinct brand character, the marketing minds of Tata Motors failed to address the quality issues which was creating a negative perception among the consumers. The laid-back approach of Tata Motors in addressing the nagging issues of Safari virtually put Safari in  to the sidelines .
Safari also failed to see the changes happening to the SUV market in India. The brand failed to see the rise of more compact SUVs and was less aggressive in addressing competition from Scorpio. The laid-back attitude of the brand owners has virtually made Safari a nominal player in a category which it once pioneered.
Although the brand tried to come out with newer versions, most of the changes were cosmetic rather than a radical one.

The new Safari Storme is reported to be a 100% new vehicle rather than a modified Safari. The entire product has been changed for the better. One can only hope that Storme will change the quality perception that is haunting Tata Motors ever since it ventured in to passenger segment.
What is sad about the new Safari is the promotion. Tata Motors has decided to do away with the " Reclaim Your Life " positioning of Safari. Instead, the brand has the tagline " The Real SUV" which I think has undone what ever brand equity which the earlier campaigns has built.
The new " Real SUV " campaign does not give any power to the brand.The promise should be believed by the consumers. In the new market where all global SUV brands are present, Safari's claim to be the Real SUV is only a joke. I don't understand why and how a brand can just discard a powerful story like " Reclaim your life " .
Watch the new campaign here : Safari Storme
The new tagline is big downer for the brand. The brand suddenly switched to a functional positioning from a highly abstract positioning . This sudden shift may confuse the brand's positioning in future.

Tata Motors should be appreciated for investing in Safari and making it survive for the last 15 years. The brand is now pinning its hope on Storme for delivering results. As a die-hard Safari admirer, I too hope the same.

Godrej Aer : Aer it Out

Brand : Aer
Company : Godrej

Brand Analysis Count : # 517

Godrej has entered the Rs 300 crore Air Care market with the new brand Godrej Aer. Godrej was instrumental in developing the category of air-freshners in Indian market through the JV Godrej - Sara Lee. Ambi-Pur was the brand which had created this category in India. But in 2011, Sara Lee sold its personal care division to P&G and the brand Ambi-Pur has moved to P&G.

Not to be left behind in the category which Godrej's JV had created, the company was quick to launch its own brand Aer in the Indian market. Godrej Aer is now running its launch campaigns across the Indian market. 

The brand has started off with some thoughtful branding strategies. To being with, Godrej has chosen a very powerful brand name " Aer ".Aer which is the marketer's way of using the generic word " Air" .

Ambi-pur is the most visible brand in the air-freshner category in India. Air-Wick is another brand which is focusing on the home category . There are also many local and imported brands in this category.Odonil was one of the pioneers in the room-freshner category but some how this brand is restricted to washrooms ( pun intended). This lifestyle product is expected to see better growth in coming years. According to reports, this category is growing at the rate of 20% each year.

Godrej in the launch campaign is focusing on the car -freshner segment of the category. 

Aer has tried to tackle the market using two differentiating attributes. First factor is the design. Aer has put lot of thought into the design aspect of the container. The design is eye-catching and very contemporary. Second differentiator ( in car freshner) is the ON/OFF switch. The brand is harping on this factor in the television commercial .

Watch the ad here : Aer 

Godrej Aer's focus On/Off switch  as the key differentiator may not be sustainable since any competitor can easily replicate the feature. Launching the brand purely on this easily copy-able feature is a marketing mistake on the part of Godrej. Its also surprising to see that Godrej is downplaying the wonderful design element of the brand. The brand is focusing on functionality + fragrance as the main focusing point. The brand has the tagline  " Aer it Out " and has put its mission as to change the way air smells and spells. The brand has priced the product a little above the Ambi-Pur but I feel that the design will encourage many consumers to switch to this product for a trial.

Related brand

Ambi-pur

Brand Update : Tata Safari and the Art of Laziness

I always loved Tata Safari. Despite the bad reviews, nagging product issues, this brand was always an aspiration for me ( yet to be fulfilled). The brand which was one of the first SUVs in India had something in it which attracted people like me. And as reports validate, there are die-hard Safari fans who cling to their brand despite frequent visits to the workshop.

Sometimes we look at certain products and say ' What a Potential Wasted'. Alas, looking at Safari, I am forced to think about a wasted potential. 

This brand was launched full five years before the launch of Scorpio and see where these two brands are now . Scorpio redefined the SUV market but Safari is still on the sidelines.

And till now the brand has not learned its lessons.

When was the last time you saw a Tata Safari Advertisement and said WoW. When was the last time the product was upgraded ?

It seems that Tata Motors suddenly lost its marketing acumen. More worrying is that the company has lost interest in investing on this ageing brand. According to news reports, Tata Motors is planning to launch the much  spruced up version of Tata Safari branded as Safari Storme later this year. But going by the fate of Aria, I don't give much hope to the new launch because suddenly Tata Motors seems to lose interest in brand building. 

Tata Safari lost one of the most opportune moments in its lifecycle. Indian consumers were shifting towards diesel models, markets were indicating potential of smaller SUV and new price points were opening up in the SUV market. But Safari was blind to all these. To my surprise, it did not even acknowledged the presence of new competing brands like Duster, Xylo, Evalia or even Scorpio. The brand was in a perfect blindness. 

There was no product improvement or campaigns for the brand in these times except for some dull discount ads by the dealers. 

To my utter disappoinment, Tata Safari is now an example of Myopic Marketing wasting a potential to build an iconic brand. 

Related Brand

Tata Safari

Brand Update : Scooty wants to Shake EM Up with Scootygiri

In its new campaign for Scooty Pep+ , the brand features the new celebrity ambassador Ms Anushka Sharma. The campaign titled Scootygiri projects the Scooty user as a young confident girl willing to question the status quo. The theme of empowered confident girl has been the major positioning platform on which Scooty has built itself to the current position. 

Watch the campaigns here : Scootygiri Romeo

                                           Scootygiri Dress code  

The brand now has the slogan " Shake Them Up with Scootygiri" exhorting girls to standup confidently and face issues head on.

The brand should be commented on being consistent in its message over these years.

An analysis of the brand's portfolio gives certain interesting facts. There are  three sub-brands under Scooty - Scooty Streak, Scooty Pep+ and Scooty Teenz.

Scooty Teenz is a sub 60cc scooter aimed at the first-time user of the product category. Scooty Streak and Scooty Pep+ are almost similar products interms of technical specifications. The difference is in the styling and promotion.Scooty now can be considered as a primary brand with sub-brands - Teenz ,Streak and Pep+.

Although Scooty has been performing quite well in the category , there is a gradual shift in the category moving in the direction of powerful scooters. This shift is now boosted by Hero Honda Pleasure and also gender-neutral new scooters like Access 125, TVS Wego Vespa etc. 

Scooty seems to be contented with the current technical specifications but it should not be blind to the fact that increasingly the ladies' scooter market is moving towards powerful scooters. TVS has a product Wego which is in the segment of powerful scooters . My contention is that Scooty should be modifying its product offering to reflect this shift. It cannot let Hero Honda Pleasure take up leadership position in this emerging  category. 

Scooty needs a presence in the higher engine capacity scooters to counter Pleasure . It cannot use Wego to counter Pleasure since Wego is a unisex scooter. Pleasure has been very aggressive in its promotions and will be creating a big chunk in the Scooty's existing customer base. The issue is much deeper that cannot be handled with high decibel ads or celebrity endorsements. Scooty has to see whether the entire category of ladies' scooter is shifting towards higher engine capacity ones. Ofcourse there will be a market for less powered scooters but that will be much smaller and unprofitable in future.

Related Brand

Scooty

Mahindra Stallio : RIP (2010-2011)

Brand : Stallio
Company : Mahindra 2 wheelers

Brand Analysis Count :  #513

Question : What else do you want for a  perfect product launch when there is a reputed Corporate Brand, Aamir Khan and a decent campaign ?

 Ans : A good product !

Mahindra Stallio is a sad story of a perfect plan foiled by a poorly built product. Mahindra Group was very vocal in its plan to enter into the Indian two wheeler market. It surprised the industry by acquiring the ailing Kinetic Motors' two wheeler division. The company  followed it up with the successful launch of automatic scooters Duro and Rodeo. Then came the much anticipated entry into the bike segment.

Rather than launching a macho, performance bike to impress the technological prowess of the company, Mahindra chose to enter the much crowded and highly competitive commuter bike segment. The first product in the bike segment was the 106 cc Mahindra Stallio. 

Stallio had a dream launch. The PR team of the company had built in enough suspense in the market. The entire automotive industry was looking for something similar to a Scorpio that will shake up the established brands like Splendor and Pulsar. Then Stallio happened. The brand instantly gained eyeballs through the endorsement of Aamir Khan. Aamir Khan's endorsement was a master marketing move. The actor had huge equity in the market and his endorsement of a two wheeler was something no one anticipated.

Stallio put on an aggressive face in the market with a cheeky campaign pitting against all those macho bike brands which advertised with more hyperbole than a Bollywood movie.
Watch the launch campaign : Mahindra Stallio1 
                                            Mahindra Stallio 2
Stallio was positioned as a commuter bike that combined style and performance. At a price around Rs 45000, the brand promised enough features and quality and was aiming to compete with the segment leader Hero Honda Spendour.

The brand sold more than 5000 units in two months time, then the problem started. The brand had serious issues in the clutch and gear box. Noticing this issue, the company stopped producing the product and the brand was withdrawn from the market. For a marketer, it is a nightmare come true. The issue was not a product recall but a complete withdrawal from the market. 

It has been more than 8 months since the product withdrawal and the company is still not able to relaunch the brand in the market. It is highly intriguing of the fact that a company like Mahindra would land in a product quality issue of this scale. 

As of now, Stallio is almost dead and it will be difficult for the company to revive the brand since it failed at the launch itself. Renewing the brand and regaining the lost trust will be Herculean task. Aamir Khan also lost his bike endorsing credibility and if he comes again to endorse Stallio, I wonder how the consumers will react. If Mahindra relaunches Stallio, it will be easy for the competitors to kill the brand by refreshing the past failure memories. How ever, Mahindra did  a good job in swiftly taking the brand out of the market thereby limiting the PR damage. Also the media has been benevolent about the failure with limited coverage on the debacle.

Vespa : Fashion Unchanged

Brand : Vespa
Company : Piaggio

Brand Analysis Count : # 512

Vespa is back in a new avatar or rather in its Original avatar. The brand which died in 2006 is being resurrected by its original owners is set to change the way Indian consumers think about scooters. Vespa initially came to India in 1960 with partner Bajaj  and later through LML. The brand had a tough ride in the Indian market with some few successes like LML Vespa Select. But the brand failed to bring in volumes which eventually led the demise of this stylish brand.

Although Vespa had a different image compared to its rival Bajaj, the brand was never considered to be lifestyle oriented. Consumers considered it as a stylish scooter and the image ended with that.

This 2012, Vespa has come back to Indian market with its original persona of an Italian Scooter. The launch is significant because of the iconic status that Vespa enjoys elsewhere in the world. It is also interesting to see how Indian consumer will welcome the second homecoming of the brand.

The main reason behind the relaunch of Vespa is the increasing interest shown by consumers towards the scooter segment. According to Economic Times, Indian scooter market is around 2.5 million units growing at CAGR of 20%. Lot of new launches are happening in this market and consumers seems to prefer the utility of this product.

What is interesting in Vespa is the brand's positioning as a fashion statement. For the first time in this segment, a brand is exploring the possibility of creating a new market - lifestyle scooter. The target segment is youth who wants to be different, make a style statement. Essentially a psychographic segmentation. The brand is now focusing on print campaigns which makes sense .

The brand has the tagline " Fashion Unchanged" and is drawing power from its legacy dating back to 1945. The brand uses funky colors and evokes as sense of youthfulness that fits a fashion brand.

The brand has done it right in terms of the product design. The scooters looks cute and stylish and the advertisements looks chic. Although the product reviews are average, Vespa is expecting to sell for its looks and more importantly its brand image. The brand owners are repeatedly telling that Vespa is not for power-hungry as an excuse for the poor engine specifications. But hope they don't forget that consumers should get a decent deal when the brands commands a premium. Poor specs cannot be masked through colorful advertisements and lifestyle positioning.

The challenge for the brand is to show value. The brand is expensive and the specifications is nothing special so getting Indian youth to open up their wallet for the sake of looking fashionable seems to be a tough task.

The silver lining is that this is the era of design and experience. Lot depends on the brand's ability to convey fashion statement through the product. 

The steep price will force customers to compare value with the workhorses like Activa, although Activa is not a style statement. There is a chance that the brand will remain aspirational restricted to a few. The brand could have done wonders if it was priced at an affordable range and get more on the road - some thing like an affordable fashion statement. But Italian arrogance is visible in the pricing. The brand with the styling and premiumness can make Indian consumers drool or will they ?

Related brand

LML Vespa