Showing posts with label Tata. Show all posts
Showing posts with label Tata. Show all posts

Sunday, January 12, 2014

Brand Update : Tata Safari

Tata Safari has launched a new TVC which further reinforces the " Reclaim your Life " campaign.

Watch the tvc here : Tata Safari

The ad asks a very pertinent question " when you look back in life, what would you remember?" and ends with the tagline - Reclaim your life.

Some of the factors which I liked about this ad was the
Catchy Phrases
Cool Music and
Exotic Locales

Its also interesting to note that the company was bold enough to show the product only at the last shot. That too for a very very small time.
I remember a report on afaqs about the same strategy used for the launch ad for Linea ( read the article here ). The article talks about the usual practice of advertisers using the long drawn product shots and using the entire airtime displaying the product and how the agency convinced Fiat to break this tradition.

It take lots of courage and persuasion to convince the client that some times it is better not to show too much of the product.

Tata Safari should be appreciated for being consistent in their positioning strategy. The brand has been reinforcing the same message but at the same time coming out with fresh ideas about reclaiming the life.

Related Brand

Tata Safari


Friday, January 10, 2014

Tata Xenon XT : Fits No Label

Brand : Xenon XT
Company : Tata Motors
Agency : O&M

Brand Analysis Count : 384


While the debate is still raging over whether recession is the best time to launch new products, Tata Motors have launched a brand new vehicle Tata Xenon XT. What is interesting is that Xenon is not only a new product but it is trying to create a new segment as well.

Tata Xenon XT is a Lifestyle Pickup Truck. For Indians , the concept of a lifestyle pickup truck is entirely new. Pickup trucks are heavily associated with cargo. According to livemint website, in 2007-08 around 1,25,000 pickup trucks were sold.

The concept of lifestyle pickup trucks is directly imported from the western market. I have seen in Hollywood movies where families driving around in pickup trucks ( remember movie Twister ?) especially when they have a farm or when they love offroading.

It is not the first time that Tata Motors is experimenting with the concept of lifestyle pickup trucks. In 2005, the company had launched the same kind of product Tata TL 4x4. But the product bombed owing to the steep pricing of around 10 lakhs.

The current Xenon was debuted in the Bologna Motorshow in 2006. The brand shares the same platform as the Sumo Grande. Before being launched in India, Tata Motors has been selling this vehicle in Thailand, Saudi,Algeria, Italy etc.

The critical marketing issues with Xenon XT are two ? Need and Positioning.

The first issue is whether there is a need for such a product in the Indian market. The brand is aiming at those customers who love offroading and are in need of a pickup vehicle. The rich farmers of Punjab and those guys who love hunting and adventure are the potential customers for this product. The hardworking, fun loving entrepreneurs who love to sweat and enjoy the wild fits the label for this product.

How ever the question still lingers whether the product is ahead of its time ? Are the Indian consumers ready for a cross-over product like Xenon. The pricing of the product is also steep at Rs 7 - 10 lakhs where it will be competing with its brother Tata Safari and the highly successful Scorpio.

The second issue is the positioning.

Indian consumers has never seen a product like this. Hence the task of establishing the points of parity is crucial. One of the steps in establishing POP for an entirely new product is to establish the category membership . Since the consumers have not seen such a product before, the brand should first establish a reference point for the consumers. It has to tell the consumer that the product belongs to a certain category.

This is where Xenon has a challenge. Tata Motors in their press release itself have mentioned that creating a reference point for Xenon is the major challenge. I would say that the success of Xenon will depend largely on establishing the right category membership.

For a product that tries to create a new category, the marketers try to establish the category membership first and then try to do a break-away positioning from its root category. If the category membership is wrong, then the break away strategy will never work.
A classic case of break away positioning is seen in the Swatch brand. The brand wanted to create a new category watches. So Swatch first established its membership in the fashion accessory category and not in the watch category. Then it created the break away positioning as a " watch accessory".

What the advertising agency has done for Xenon is one of the most risky strategy in establishing a new category. It has not tried to establish the category membership. Instead of establishing membership in a category ( SUV or Pickup truck), the brand has left it to the consumers to decide the category to which Xenon belongs.

In the first print ad for this brand, Xenon has adopted the tagline - "Fits No Label ". That means that neither the agency nor the company is sure about the category membership and it is leaving this responsibility to the consumers.

History has shown us that leaving this task to consumer is dangerous. In branding text books, you can find the classic case of Motorola Envoy which failed because it did not defined its competitive frame of reference. Envoy was the first personal digital assistant (PDA) product that the consumers have seen. Envoy did not have all the functionality of a laptop but had more functions than an organizer,. But the brand never bothered to establish a category membership.
The brand never defined itself and consumers could not understand the exact category that the product belonged to. Consumers was confused and the product failed. While the competitor Palm Pilot which established itself in the Electronic Organizer category acheived considerable success. ( reference : Strategic Brand Management by Keller).

When we leave this task of reference point to the consumer, the consumer is free to put this product in any of the category. By the look of the vehicle, there are chances that consumers will put Xenon as a pickup truck. If they do so, then Xenon will face the issue that Tata TL faced-Consumers unwilling to pay Rs 9 Lakhs for a pickup.

I think that in the current scenario, Xenon should not associate itself with the truck category. It should have the membership in the offroader /SUV category because trucks never are associated with luxury and comfort in India. I would love this vehicle to fill the gap that Maruti Gypsy left. So Xenon should be a Luxury Jeep and not a truck.

Xenon have the biggest USP of being heavily customisable . The consumer have the option of a large number of accessories like bed-liner,canopy, boot lid etc. It is powered by Dicor engine and comes with SUV accessories.

Tata Motors have in a way messed up its positioning for Xenon during the launch itself . All the news about Xenon has already labeled it as a pickup truck. It has to be seen whether Indian consumers will accept the concept of a luxury pickup truck.

Brand Update : Fastrack

This January, Fastrack has launched a new range of wrist gear and eyegear branded as the Army collection. The new series of rugged looking accessories is inspired by the military equipment and weapons.

The watches and sunglasses have a gun-metal finish and looks rugged and cool.

The launch of Army collection is a smart marketing move. The launch coincides with the recent Mumbai attacks and the Indian Public is filled with admiration towards the valor and commitment displayed by the security forces during these terror attacks. Knowingly or unknowingly, the army collection will greatly benefit from this current positive vibes towards the Indian armed forces.

The Army collection of watches and sunglasses are priced upwards from Rs 1400 to Rs 3500.
As a consumer, I have a doubt whether the brand is pricing itself out.

Fastrack is a brand that is targeting the youngsters. And as we know youngsters are on a limited budget and they look for fashion statements which are affordable. Here I am talking about the large section of middleclass consumers.
Fastrack had been a huge hit among the young consumers owing to their smart pricing and also careful branding.

But I have a feeling that Fastrack is slowly raising its prices and losing its pricing advantage. Look at the latest Army Collection. The prices starts with Rs 1500 which is above the reach of those youngsters who are students and live on their monthly pocket money. We haven't moved into a situation where consumers splurge on watches and own multiple watches.

Hence the new collection with its aggressive pricing will definitely takes the charm out of this brand. The name Army Collection will definitely bring in lot of consumers but in my personal opinion, the price will definitely put off a large number of consumers.

Fastrack also lost an opportunity to make an emotional statement with this range. The brand could have touched the heart of millions by contributing a part of the sales from Army Collection to some welfare fund for Army men. This could have taken this brand to a higher platform and customers would have loved the brand for gesture.

Related Brand

Fastrack

Brand Update : Fastrack

Youth brand Fastrack is expanding itself into retail business by starting exclusive Fastrack showrooms across the country. Together with the retail foray, the brand is also extending itself into accessories like belts,bags,wallets and wristbands.

My first reaction was that " Is this brand crazy ? "

Why should a brand like Fastrack enter into retail business when the entire retail industry is facing a downturn ?

Personally I am a bit scary about the concept of Brand Extension. Fastrack which is predominantly a watch brand has earlier extended to sunglasses. That extension worked well because there was a significant gap existing which was tapped through that extension.

Let us take a look at the two major decisions taken by Fastrack.

The first decision is the extension towards accessories like belts, bags and wristband. The logic behind this extension is that the target market uses these products and all these categories are dominated by unbranded products.

It is true that there are no national brands in these categories except for the bags where there are players like VIP and Samsonite. But there is no brand targeting the youth even in the bag segment. Regarding the belts and wrist band, there are no known players. So the brand managers may have thought that Fastrack can tap these markets by leveraging its brand equity among the youth.

But do Fastrack have the competence and expertise to make and market these products ? Obviously the brand will outsource the production and act as the marketer. But selling bags and belts are different from selling watches. Both are different product categories which need differen expertise. By extending itself into categories which are not even related will defenitely dilute the Fastrack brand.

Another reason for this extensions is to develop Fastrack as an accessory brand rather than restricting itself to watches and sunglasses. Although it sounds good, my concern is whether Fastrack has sufficient equity that support such an extension. I feel that the brand is moving too fast without developing a proper foundation.

No doubt that the brand is popular among the youth but the brand has not reached the pinnacle from where it could confidently extend itself. It has not reached the level of Nike or Reebok from where they could leverage the equity to unrelated categories.

The second decision of the brand is to enter the retailing business. This is the most alarming part of the brand's latest moves. From a product brand to a retailing brand is not a wise decision at all. I was initially wondering why a brand should do a forward integration like entering retailing.

For Fastrack, I think there are two reasons.

The first reason is the brand's decision to diversify into accessories. Fastrack's accessories cannot be sold through opticians and watch showrooms. Hence the decision to retail venture is largely driven by the brand extension rather than marketing sense.

Another minor reason is that exclusive retail stores acts as brand building tools since the brand will be able to showcase all the products and marketing tools at its stores.

But I strongly think that Fastrack will lose its focus through these decisions. Retailing is a different business that requires different skill sets. It is an expensive venture that needs different management skillsets. and lot of financial commitments. Fastrack will have to spent lot of its management time in developing and maintaining these stores which should have been used by it for developing its core business

Fastrack have not learned from the Peter England brand's foray into retailing. Peter England had started a retail venture - Peter England People with the same objectives. Now reports say that the company is rethinking this venture because it has not taken off as expected.







Related Brand
Fastrack

Tanishq : Revitaliser of Tradition

Brand : Tanishq
Company : Titan Industries
Agency : Lowe Lintas

Brand Analysis Count : 382



Tanishq is a very interesting brand. Interesting because it is a brand that is trying to change the rules of an industry which is very fragmented. Tanishq is one of the first brands to create a national brand in the Rs 40,000 crore Indian Jewelery market.

The Indian jewelery market is huge and India is the second largest consumer of gold trailing behind USA. But the jewelery market is highly fragmented. The branded jewelery segment is hardly 5% of the total market.

Tanishq was launched in 1995. Since then , the brand has grown to a Rs 1200 crore brand even overtaking Titan watches interms of the turnover.
Tanishq is a retail brand. It is the chain of jewelery shops set up by Titan across the country. According to the company website, Tanishq has more than 104 stores across 71 cities. The chain is operating through a franchise system.

Titan has also another brand of retail outlets which is known as Gold Plus which is targeting the urban/semiurban consumers and small towns. Gold Plus has presence in more than 20 towns and Titan is planning a major expansion of these stores.

Titan planned to venture into gold business way back in late 1980's. During that period of foreign exchange crisis, a good way to earn the valuable foreign exchange was through gold business. But by the time the company figured out the business, the foreign exchange problem was over.

Although the jewelery market is large, doing business in this segment is not a cake walk. The market is complex and highly unorganized. The consumer behavior is also different compared to what we see in other products and categories.
Consumers tend to see gold as an investment and indulgence. Most of the individual consumers are loyal to their local jeweler /goldsmith. And for a brand like Tanishq, it had to break this traditional consumer buying process and also make them switch their loyalty from the goldsmith to the retailer.

In the state of Kerala where I live, the market is more organized. There are large chain of jewelers who have their presence across the state. Consumers tend to buy from these retail chains rather than make the gold jewelery from a gold smith.

Tanishq started off selling 18 carat gold jewelers. The brand at that time was positioned as a jewelery for daily wear . But the brand ran into difficulties since the consumers were too sticky about 22 carat ornaments. The light weight jewelery was still alien to the consumers.

Tanishq was depending heavily on the pull factor. The brand relied on the design ranges, the trust that the Tata brand carries and also the reliability factor.
One of the major hurdles that the brand faced was the brand recognition during its initial stages. People did not know about the Tanishq brand . Since gold is a high value- high involvement purchase, consumers were risk averse in trying out a new retail format like Tanishq. The consumers were also less responsive to the premium that Tanishq jewelery commanded.

It takes lot of time to change the consumer perception. It is harder if this behavior is rooted in tradition. Gold retailing is heavily rooted in tradition. If we look at the genesis of local jewelers, most of them have a long tradition and their business and clientele has been built over generations.
Since the pricing of gold jewelery is tricky and complex, consumers also tended to rely on their traditional store rather than experimenting with new stores.
But these have changed in recent times. The stores has been exploiting the consumers by complex pricing policies like " making charges", value addition etc which an ordinary consumer seldom understand.Tanishq has been trying to tap on this need for a honest gold retailer.

Along the way , the brand also had to fight the perception of being a premium brand. In a classic case of over positioning, the brand had to convince the consumer that Tanishq had jewelery which was affordable. Over positioning is where the brand narrowly positions itself and consumer tend to have a narrow image of the brand.

To tide over this issue, Tanishq came out with small priced collections which to an extend corrected the perception problem.
According to the company website, Tanishq had a turnover of over Rs 1200 crores.

The brand is very active across the media. Tanishq have a two prong branding strategy. The company have the main brand Tanishq and lot of sub brands for its different collections. Some of these brands are Solo, Aria, Diva , Collection G etc.
Tanishq recently roped in the new Bollywood diva Asin to endorse a collection.To tide over the issue of low margins, Tanishq has recently launched the diamond collection which is considered to be a high margin product line.
Tanishq has been trying to differentiate on the designs. It had built lot of product lines and has branded these lines. The brand feels that consumers will chose Tanishq for its designs.

Regarding the promotional strategies, Tanishq have the major issue is fighting the regional players. Consider the Kerala example, the brand Tanishq have zero visibility compared to the local jewelery chains. The local jewelers of kerala are advertising freaks and one of the largest spenders in print and visual media in the state.
Jewelers in Kerala have roped in most of the famous models and divas for their campaigns. Even ex-bollywood divas like Sridevi Jayaprada and Hemamalini are endorsing some of the Kerala Jewelers.

The jewelery business works in a different way. The business works like this. Most of the jewelers does not make these jewelleries. They are mere traders. They buy the designs from the jewelery makers and then display them and sell them on a mark-up. Most of the makers supply to all retailers hence retailers stock similar designs thus making this a commodity trading business with little scope of differentiation.

These jewelery chains then spend heavily on building their brands and luring the consumers . Now the stores are so desperate that they have sales executives who are canvasing the bride's parents. Marriage is the event where maximum gold purchases are done by the consumers. You cannot built volume in gold business by ignoring the marriage segment. And this segment is witnessing a dog-eat-dog competition . Gifts, referrels, discounts rule this segment. I am not sure whether Tanishq is geared up for such a volume business.

Among this noise, Tanishq is virtually non-existent. I think, this is the case in most of the states. Hence if Tanishq have to capture the market, it will have to take the brand promotion to the local market. Since the brand is operating on a franchise model, it will have difficulty in localizing its brand promotional activities. I do not remember any campaign which is highly memorable for this brand. In this business, one has to have a higher share of mind and share of voice in order to be successful.

The brand also faces the issue of flucutating gold prices. The concept of a fixed MRP in gold jewellery will not work and usually the mark-up and other charges vary with seasons and demand. When you are operating on a national scale, these issues makes the operations very complex. Jewelery business has not become a commodity business and margins also have come down drastically.

When Tanishq launched the everyday -wear, it was a concept that was ahead of its time. But I feel that the younger generation is now opening up to the concept of such a collection. The ballooning gold prices are also an opportunity for Tanishq to rejuvenate such a line of jewelery.

Tanishq has reached a position from where it can scale up the business to the next level . The brand has to localise its promotional campaigns which will inturn make the brand more visible among the local consumers.

Monday, January 6, 2014

Brand Update : Tata Nano

After a long and treacherous journey, Tata Motors have finally launched Tata Nano. No other product had such an excitement in the Indian market as Nano. And no other product had to face those hardships that this brand had to face.

Although the brand has been officially launched, consumers may not be able to get hold of Nano anytime soon. The first car is expected to be delivered only in June and the company will be able to meet the entire consumer demand only in a phased manner.

Nano now comes in three variant. The basic version is the One Lakh car and there are two upgrades. The basic version will cost around Rs 1,30000 on Road and the premium version will cost around Rs 1,80,000.

Nano is a special brand. It is a brand that symbolises an entrepreneurial dream. It is also a brand that symbolises determination , hardwork and innovation.

With the launch, Nano also have its tagline " Now You Can " derived from the famous campaign of Barack Obama. The new tagline symbolises the brand's promise of an affordable car for the masses.

Nano also gives a very valuable lesson to the marketers. It shows that low cost does not necessarily mean a 'cheap ' car. Nano suprised many with its stylish look, spacious interiors and a good quality drive. All these comes with a very low cost.

Usually when we think about a low-cost product that is targeting the lower rung of the consuming class, the focus is more on functionality and compromises. The resultant product is a poorly designed functional product with rugged look and zero aesthetics.

Professor CK Prahlad famously remarked in the book " Fortune at the Bottom of Pyramid " that the consumers at the bottom of pyramid wants an affordable product and not a cheap low quality product.

Many Indian consumers irrespective of social class is going to buy this car because it is a very good looking , highly functional car and not because it is a cheap car.

Tata Nano also gives the marketer a golden key to tide over the recession. Come out with a product that catches the imagination of the consumers.


Related Brand
Tata Nano

Tuesday, December 10, 2013

Mahindra Gio : Potential Category Killer

Brand : Mahindra Gio

Company : Mahindra & Mahindra

Brand Analysis Count # 441

This is the decade of Mahindra Group. Ever since the success of Scorpio, Mahindra is on a roll. Lead by the dynamic Anand Mahindra, Mahindra group was quick to spot market opportunities and to tap them. The Satyam acquisition and Kinetic motors buy were all efforts to plug those gaps they found in the market.

Gio is one such initiative of M&M to cash in on a latent demand in the goods carrier market. Mahindra Gio is a 0.5 tonne four wheeler goods carrier. Infact Gio is India's first 0.5 tonne four wheeler goods carrier. This product is a classic case of a successful product development in the Indian context.

Gio is a potential category killer. This brand is going to burn the three wheeler goods carrier market . The three wheeler category will slowly shift to the new category since Gio is addressing a latent demand in the category for a better looking & comfortable goods carrier.

The 0.5 tonne goods carrier market is basically a three wheeler market dominated by Bajaj and Piaggio . The category is discarded by the players who focused only on volume and not on product development. The three wheelers lacked the comfort and was rustic. The brands competing in the segment was suffering from marketing myopia. They thought that the competition can come only from three wheelers. So we see the same type of noisy shaky rustic three wheeler goods carrier. Its time to change.

Gio is going to be a winner from the word Go ( Just like Maruti Eeco). The product is a four wheeler and that makes a big difference for the existing three wheeler users. One factor that is going to make Gio a winner is the price. Gio is priced at Rs 1,65,000 which means by paying a premium of Rs 20,000 , a potential three wheeler buyer can own a mini truck. Aspirationally, it is a big leap to the buyer.

Tata Ace is priced at around Rs 2,50,000 + and three wheeler goods carriers are priced at Rs 1,45,000. There is a significant price gap between these two product categories. Gio is aiming at filling this price gap. Also more than price gap, the brand is filling the need gap for a better goods carrier. Ace showed the need for a 1 tonne carrier and Gio took a lesson from Ace in this new segment.

According to the brand website, Gio name was derived from the Hindi word " Jeeyo" which means long and happy life. The brand is targeting the last-mile market where the intra-city transport of fmcg,durables, agriculture produce etc are involved.

Gio looks strikingly different from the existing vehicles that ply the Indian road. Gio has a peculiar look which looks little odd for a goods carrier. There is a reason for such a look.M&M wanted to make Gio look trendy and different which is another way of adding value to the product. The brand is breaking the myth that goods carriers should not be glamorous. Another vital marketing lesson from the brand. The brand sports an engine from the American Engine maker Kohler. The brand claims a mileage of 27 Kmpl which is equal to that of a three wheeler.

Another interesting fact is that M&M has developed a good website for Gio . It is unusual for such a goods carrier brand to have a significant presence in the web but Gio feels that there will be business owners who will look for information about the brand in the web. Another interesting move by the brand.

Gio has the looks and a mouth watering price that makes it a potential winner. A lot of marketing thought has gone into the making of this product. It is surprising to see that Tata was not able to identify this gap. Tata Ace is a highly successful product which virtually created the sub 1 tonne goods carrier market. I expected that Tata Motors would think about replicating the success of Ace in the three wheeler category. But instead of Tata, M&M grabbed the opportunity with Gio.So it is an opportunity lost for Tata Ace.

Kudos to Gio and M&M.

Related Brand
Tata Ace

Sunday, December 8, 2013

Brand Update : Titan

Titan Industries has ventured into the prescription eyewear category with the brand Titan Eye+. The launch was pilot tested in 2007 and now is on the advanced stage of national roll out.The Indian prescription eyewear market is worth around Rs 1800 crore and is dominated by the unorganized sector.

Titan Industries is trying to corner a big pie in this huge untapped market. Titan Eye+ is currently running a campaign across the various channels,

Watch the TVC here : Titan Eye+

There is no question about the opportunity that Titan Industries is trying to tap. Organized eye wear market offers excellent potential for a company like Titan. There is a latent need in the consumers for a trust worthy branded outlet.

The question here is whether Titan Industries made a branding mistake in extending Titan brand into this product category. Does this brand extension augur well for the parent brand Titan or will it erode the intrinsic brand value of Titan ?.

I am always wary about brands extending themselves to unrelated categories. How ever large the potential may be, these brand extensions run the risk of diluting the brand value of their parent brand's equity.

Titan Industries had the opportunity to build a new brand in this category. It could have launched Eye+ as the standalone independent brand rather than launching Eye+ as a sub-brand of Titan.

The only one reason for launching Eye+ as a sub-brand of Titan is to gather the initial momentum in terms of acceptance . Eye+ wants to ride on the huge brand equity of Titan. And it will. As a consumer, I will naturally be tempted to opt for a Titan Eye+ showroom rather than a local store. So without spending huge amounts of money, Eye + will quickly gain acceptance in the market.

Another argument in favor of such brand extension is that over a period of time, the sub-brand will gain independence from the parent brand. Like the Fastrack brand which was launched as a sub-brand of Titan now has an independent status. So over a period of time Titan Eye+ will also be a standalone brand.

What about the parent Titan brand ?
Does this brand extension add value to the Titan watch brand ? Does it support the core positioning of Titan ?

Looking at the launch campaign, the ad is neutral in terms of the effect on the parent brand. The agency had tried to put in the " Jingle" of Original Titan brand in the Eye+ ad. The similarity ends there.

Eye+ is being positioned as a style enhancer .The brand follows the basic positioning that wearing Eye+ makes you attractive. Compared to the brand laddering of Titan ( Be More campaign) the positioning of Eye+ is nothing but very very basic. Eye+ has the tagline " Kuch To Hua Hai" meaning " Something (new) has happened to you".

This is the issue with brand extensions. What ever the ad agency do, the extensions seems to drift away from the core positioning of the parent brand. Titan with the endorsement of Aamir is perceived as a premium brand . Eye+ cannot afford to concentrate on the premium positioning as of now since it will repel many consumers and create a negative perception of " over- pricing".


Is it not a better option if Titan Industries launched Eye + as an standalone brand endorsed by Tata rather than Titan ? That would have given Eye+ lot of room for its promotional strategy. It could easily move across various price ranges. More than that , Eye + could afford to have its own positioning rather than being constrained by the parent brand. About the equity, endorsement by Tata could have been equally good in terms of bringing in consumers.

Eye + has lost a chance of creating a place for itself .The brand will have to move through a series of promotional experiments before gaining independence from Titan. With in the constraints of the parent brand, Eye + needs to prove itself successful in order to gain freedom.

Related Brand

Saturday, November 30, 2013

Tata Tion : Why Let Go

Brand : Tata Tion
Company : Tata Tea

Brand Analysis Count # 454

Tata Tion is Tata Tea's foray into the non-carbonated beverages market. Tion which was soft launched in 2009 has been launched nationally. The brand was initially launched in TamilNadu and has been in the market for more than a year.

Tion is a fruit based drink which has extracts of tea, ginseng and fruit. The brand is a challenger in the Rs 2500 crore non-carbonated beverage market in India.

Tion is positioned as an energy drink . The brand although fruit flavored is positioned as a tea-based cool drink. The major differentiators for Tion are its ingredients. The brand has tea extracts and Ginseng which makes the brand stand out from the rest. The presence of these ingredient also makes this brand look more healthy compared to other drinks.

Tion has the tagline : Why Let Go. The launch campaign is does not have much to talk about.The brand is essentially giving a message that it has so much in it that you cannot let it go.

Consumers have different take on the taste of Tion. The taste may not be universally appealing and that can restrict this brand to a niche. Tion will appeal to those consumers who are looking for a healthy cool drink and something different from the fruit juices. Compared to the existing fruit drinks, Tion gives certain kind of refreshment thanks to its ingredients.

Tion was initially launched in 400 ml packs priced at Rs 22. But now the brand is available at 200 ml packs priced at Rs 13. The packing is novel and can generate lot of trials.
But the 200ml drink seems to be too little to quench thirst and can create a perception of too little for that price. That was the typical reaction of a consumer after having the drink on a hot day.
Tion is a different product from the rest and along with the endorsement of Tata, the brand can get lot of trials. In the city where I live, Tatas have managed to make the brand available at key locations. The proposed JV with Pepsi will also help the brand get into more store shelves.

The challenge for Tion is to convince the customers to regularly consume the brand. The brand is banking on its ingredients to convince the consumers to patronize it. I feel rather than the ingredients, the brand will hold the key. With the kind of communication strategy, Tion may not be able to build a strong equity. It may need a heavy dose of celebrities especially those in the athletics/sports which can reinforce the message of a healthy energy drink. With global brands like Gatorade, Burn etc upping their ante, Tion should invest more on the brand rather than banking on its ingredients.

Brand Update : Tata Indica Brand Portfolio

Indica is a brand that is an epitome of persistence. Tata Motors through Indica has demonstrated how to manage product lifecycle effectively. The brand which was launched in 1998 has passed through many hurdles. The brand successfully transcended the initial flaws, bad customer /expert reviews and brickbats to become one of the largest selling cars in the Indian auto industry.

The brand survived and thrived because of the constant focus of Tata Motors to improve the product continuously. More than the product innovation, it was the value proposition that forced customers to choose Indica despite all those nagging troubles. You can see lot of Indica customers cribbing about the bad service and constant trip to the service centers but sticking to the brand because of the value proposition. You cannot get a diesel car with that much space at the price at which Indica is selling ( so far).

Tata Motors has been continuously tweaking the brand over these years sometimes making quantum leap in the quality and refinement of the product. A snapshot of the brand's evolution is given below

1998 - Indica announced
2001 - Indica V2
2004 - Rejuvenated Indica V2
2005- Indica V2 Turbo Diesel
2006- Indica Xeta
2008 - Indica Vista

The brand made a quantum leap in 2008 with the launch of Indica Vista. The entire brand personality changed with the launch of Vista. The product's looks and feel had changed completely and it was a rebirth for Indica.
The changes in the product was not limited to exteriors. Indica began sporting different types of engines from Fiat which gave a new perception of quality to the brand.

At the pricing also, Tata Motors consciously raised the Vista brand to a higher level . The Vista is pricier than the original V2 thus reducing the attractiveness of the brand to the Taxi segment. At a price range of Rs 4 - Rs 5 Lakh, Indica Vista is not a cheap diesel car. It was an upward stretch by the brand.

The Indica Brand portfolio is given below.

















The Indica brand portfolio consists now of three sub-brands V2, Vista and Xeta.

V2 is the most economical of the lot and is the original Indica. This product is retained because there is still huge demand for V2 at that price point. Within the V2 range, there are three variants which includes the Indicab which is for the Taxi segment. Price of this sub-brand ranges from Rs 3,50,000 - Rs 3,95,000

Next sub-brand is the Vista. Vista is the new generation Indica and Tata Motors would like this brand to take over the leadership position from V2 in future. The brand is targeting the discerning Indian consumer with its value proposition and good looks.Vista has lot of variants satisfying the various needs of the customer. The Indica Vista Aura is the premium range that sports many goodies that premium brands claim like ABS, Airbags etc. Vista also comes in Petrol version sporting the Saphire engine. Prices range from Rs 3,90,000 - Rs 4,90,000 ( apprx). Within the Vista range, customers are given lot of engine option including engines from Fiat.

Xeta is the petrol variant of Indica V2. I am not sure about the future of Xeta since the petrol segment is heavily competitive and compared to Maruti and Hyundai, Indica Xeta's value proposition is not that attractive as the diesel option. Prices range from Rs 2,72,000- Rs 3,00,000).

The positioning across the brand portfolio remains the same. All the brands focus on the value proposition. But these sub- brands sports different taglines

Indica V2- More car per car
Indica Vista- Changes Everything ( Surprise Yourself is the new tagline)
Indica Xeta - Makes much more car sense.

Vista recently relaunched itself with Drivetech 4 technology and is now sporting a new tagline Surprise Yourself .

Indica in a way is an example of good marketing practice. The brand continues to evolve and is a pleasure to watch.

Friday, November 29, 2013

Titan Zoop : Be Cool

Brand : Zoop
Company : Titan Industries
Ad Agency : Ogilvy


Brand Analysis Count # 455

Titan has re-entered the kids' watches category with a new brand Zoop. Titan has been launching a series of watch brands in recent years. According to a newspaper report, the company is transforming itself into a house of brands with a number of brands catering to various segments. The company had recently launched brands like Xylus, Obaku, Zoop etc all endorsed by the corporate brand Titan.

Zoop is a brand targeting the kids aged 5-12. Through Zoop, Titan is filling a gap in their brand portfolio. Kid's watch segment although a high potential market is dominated by unorganized players.

In 1998-99, Titan tried to tap the market with a brand Dash. But the brand failed to catch the fancy of the market at that point of time. Analysts says that Dash was too early for the Indian consumers. During that time, parents were not that interested in spending on kid's accessories like Watches.

Now the company feels that the market is ripe for a brand like Zoop. Zoop is being positioned as a cool , must-have accessory for kids. The brand is running a launch campaign in most of the channels.

Watch the ad here : Zoop

Zoop is endorsed by brand Titan. The brand has the tagline - Be Cool ; which will be well liked by the target customers.

While researching on the brand, I found a couple of articles which mentioned that Zoop's positioning itself as "Be a Star ". The brand wanted to talk directly to the kid and acknowledges the star in him. But from the launch ad, it seems that the brand is focusing on " coolness " quotient rather than the " stardom". Hence the brand has focused on bringing in new funky designs in its range.

Zoop will be definitely a brand to watch out for . The brand has the equity of Titan and the pricing is exceptionally good. Zoop is priced between Rs 350-Rs 900. And it makes a perfect gift to kids too.

Zoop faces competition from the host of unorganized players in the market along with cheap Chinese imports. For Zoop, budget competition will also be something to be concerned about. Budget competition is the competition for the money . Budget competition for Zoop will be those kid's products across various categories that falls in the price band of Rs 350- Rs 1000. That include toys, clothes, video games, etc. If you look at the launch campaign of Zoop , the brand subtly addresses that competition by pointing at the ' need ' for a watch.

Although there are many positive things going for the brand, it is not easy to catch the attention of this segment. The kids get bored with products/brands easily. Functionality may not be on the priority list of this segment of customers. It may not be realistic for Titan to assume that kids will pester their parents to buy more than one watch to quench the style thirst of kids. So the task is to get more and more kids to purchase the brand and be happy about it. So constant campaign innovation will be the key to brand success.

Zoop has rightly positioned itself on the style factor and I am sure many young customers will fall for it.

Tuesday, November 26, 2013

Xylys : It Possesses You

Brand : Xylys
Company : Titan Industries Ltd
Agency : Rediffusion

Brand Analysis Count : # 460

Xylys can be termed as India's own premium watch brand. The brand created by Titan Industries is taking on the iconic premium watch brands like Omega, Rado,Patek Philippe, Rolex,Cartier etc. The brand was born in 2006 gain rapid acceptance in the Indian watch market.

Indian luxury watch market is worth Rs 500 crore and is dominated by Swiss and other European brands. There is virtually no presence of any Indian brands in that segment. The rising affluent Indian consumer class and the trend towards more expressive lifestyle accessories prompted Titan to seriously look at this segment. Xylys is currently targeting the lower spectrum of the luxury watch segment.

Xylys was initially launched as a flanker brand for Titan. Titan which is the market leader in the mid-price segment felt that the upper end of their target customers were moving towards iconic global premium brands. With that intention of blocking any such migration , Xylys was introduced at the price range of Rs 8000- Rs 33,000.

Xylys however gathered good momentum with the brand clocking a 50% CAGR growth rate. From being a flanker brand, Xylys morphed to be a powerful growth brand in the course of time.

Titan while carefully analyzing the consumer behavior of premium watch customers, it found that the consumers were highly influenced by the "Country of Origin " association. The consumers loved the Swiss Made proposition and there is a huge association between " Swiss Made " and quality, precision , premium etc. The insight was that it would be difficult for an "Indian Made " tag to impress upon the target segment. Titan thus made Xylys - a Swiss Made watch. Xylys is manufactured at a state-of-the-art factory in Switzerland which has a rich heritage of 80 years in precision watch making.

Xylys' strong point was its design . The brand is being crafted in association with Swiss designer Laurent Rufenacht along with Titan's own designer Michael Foley. The sharp unique designs quickly made Xylys a fast growing brand in the segment.

Xylys was launched as a contemporary brand targeting the upwardly mobile successful men & women. The brand has segmentedthe market based on psychographic profiles. Xylys defines its customers as contemporary dynamic successful persons who has attitude and confidence. The brand wants to celebrate success with them. The customers of Xylys are highly individualistic persons who does what they love. These people would love to express themselves and loves to show their success to the world. The brand has a very well defined brand charter and values which I feel is an excellent marketing practice. ( Read Xylys Brand Charter here).

During the launch phase, Xylys was endorsed by the Actor Rahul Bose, tennis player Carlos Moya and super model Saira Mohan. The basic theme of the launch campaign was the story of how these people tread their own path and became successful.

Watch the launch ad : Xylys Launch

The brand at that time had the tagline " The power of X " . The brand used " X" to symbolize the differentiating factor in the highly successful people. X also denotes Xylys-the brand.

In 2010, the brand changed its positioning from " Symbol of Success " to " Feeling of Love ". The brand now is talking about falling in love with Xylys. Xylys is currently running a campaign reflecting the new positioning.

Watch the new campaign here : Xylys Possession

The brand have also adopted a new tagline " You do not possess Xylys , it possesses you ".

The new campaign is a significant deviation from the core positioning of the brand. The entire brand personality of Xylys was changed in the current campaign. I wonder why a brand which is growing should try to change its positioning at this critical juncture.

The earlier positioning of Xylys were talking about the highly individualistic expressive nature of successful people while the current positioning talks about how Xylys takes control of such a person. If you look closely the brand is totally off the mark regarding the core values that it stands for. I feel that the agency has not read the brand charter before creating the campaign. The purpose of creating a brand charter is to protect continuity in the communication. The product managers should use the charter as the basis for devising their communication strategies. The current campaign is very difficult to fit into the brand charter.

Regarding the execution of the new positioning , there is nothing worthwhile in the advertisement. The idea of a man being possessed by a product and forgets everything is an idea which has been raped a million times. Even the chocolate brand 5 star uses this idea as the central theme.

Having said that, Xylys' core strength is its design and since watch is an experiential product , consumers may fall for it when they see the designs. But the brand needs to create clutter-breaking campaigns if it wants to fight the likes of Omega , Rado etc.

Xylys has took lot of effort in creating a very good brand charter. Why not follow it ??

Thursday, November 21, 2013

Vivanta By Taj : Discover

Brand : Vivanta
Company : Indian Hotels Company Ltd ( IHCL)
Ad Agency : Rediffusion Y&R


Brand Analysis Count : 464


Vivanta is the new brand from Indian Hotels Company Ltd ( aka Taj Hotels & Resorts) launched as a result of a brand restructuring exercise. The new brand Vivanta will replace the Taj Residency brand and will represent IHCL's presence in the Upper Upscale segment of Indian hotel/hospitality market.Vivanta was initially launched in 2008 when IHCL rebranded three Taj Residency properties to Vivanta. IHCL tested and tweaked the brand for two years before the national roll out in 2010. Now around 19 Taj properties has been rebranded to Vivanta.

The rebranding of Taj Residency to Vivanta is a part of the Tata group to move from a " Branded House " to " House of Brands " brand portfolio structure. The move towards a basket of brands started with the launch of Ginger brand of hotels for the domestic budget business traveler. The Ginger brand launch was followed by the launch of The Gateway Hotels brand which saw many Taj properties being rebranded to " The Gateway Hotels ". Now the launch of Vivanta completes one phase of the very important brand restructuring exercise.

Now IHCL has the following brands in the Indian hotel segment :
Taj brand -- Targeting the most luxurious segment. The brand will have properties on the best locales and attract the most premium customers.

Vivanta : Will be 10-15 % cheaper than Taj Hotels and target the upper upscale segment of the market. The brand will have presence on major cities and tourist destinations and will attract the affluent customers.

The Gateway Hotels - Will be 10-15% cheaper than Vivanta and will target the upscale segment and the business travelers. This brand will be located in most cities which are frequented by business and leisure travelers and will attract young professionals.

Ginger : Will be the lowest priced hotels targeting the frequently traveling businessmen. The brand has successfully tapped the need for a chain of quality hotels which targets the travelers with limited budget.

The important question is regarding the rationale for such a brand portfolio decision. Isn't it better to have a branded house portfolio where all hotels will have the Taj brand ?

The move is very relevant for IHCL because this restructuring will prevent dilution of Taj brand which is perceived to be a premium luxury brand. The use of Taj brand for all hotel properties of IHCL made sense in all these years because the market was not highly segmented.

Now Indian hotel/hospitality market has matured and is witnessing lot of interest from domestic and international players. The who is who of hospitality industry is already in the Indian market and a lot is waiting to enter. It is in this context that IHCL had to relook the brand portfolio decisions. The consumers also have evolved and different class of consumers has evolved in recent years.

Since Taj was used to endorse all properties of IHCL, there is always a chance of different types of properties carrying the Taj brand. So in a city there will be two type of property - one luxurious and another upper scale carrying the same brand name. This can create problems interms of brand positioning. If IHCL needs to position Taj as a luxurious brand, it needs to have a consistency in terms of the physical evidence ( hotel properties ) and the core product ( service). This consistency cannot be possible when there are inconsistencies in terms of size of hotel properties and the level of service in those hotels.

Another issue with Branded House is that the firm will be constrained by the values /positioning of the core brand.Hence IHCL may not be able to tap into opportunities other than luxury hotels if they follow branded house strategy. The launch of Ginger in the budget segment is an effort by the company to move into tapping other opportunities presented by the market.

Now with the introduction of two brands - The Gateway Hotels and Vivanta, IHCL is now able to arrange the properties in accordance with the respective brand's positioning. Taj will now be an exclusive brand associating only with best properties and service promises. The other three brands will enable IHCL to tap into the opportunities of the market without being constrained by Taj 's brand positioning.

The next issue is whether the new brands will be able to retain the equity of Taj. According to press reports, IHCL was able to establish " The Gateway Hotels " as a credible brand. Ofcourse it cannot match the equity of Taj but the heritage and the loyal customers will see the brand through this transition period. The advantage is that IHCL can give a separate identity to these brands.

Vivanta is positioned as a young brand. The brand is targeting the new breed of young affluents. The service architecture also reflects the focus on the young rich traveler. According to the recent report in Business Standard, the brand has identified critical touch points where it could differentiate itself from other brands.To help the brand establish itself, Vivanta is currently endorsed by Taj brand. In the marketing communications, the branding is done as " Vivanta by Taj ". This endorsement will continue till Vivanta establish itself as an independent brand.

Vivanta brand name is inspired by the term Bon Vivant . The typical consumer profile for Vivanta is one who is sophisticated and have appreciation for good things in life.
Vivanta is currently running a print campaign announcing the launch. The ad positions the new brand promise and the youthful look for the brand. See it here.

Consumers will definitely miss the Taj brand. The status and the feeling of pride when staying in Taj brand of hotels is now restricted to a select few.

In the long - term perspective, the move of IHCL has done the right thing. The brands need to be nurtured and it will be the service promise and delivery that will help these new brands to establish themselves as worthy successors of Taj.

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Sunday, November 17, 2013

Brand Update : Nano is the Key to Happiness

Its almost two years since the launch of Tata Nano. A lot has happened over these years. The much hyped & much criticized small car has hit the road and is running through its worst nightmare- sluggish sales.

When Ratan Tata announced the launch of Nano, the media went gaga over the product and the realization of dream of a common man's car. Globally Nano became a big news because of its unbelievable price tag of Rs 1 lakh. More over Tata was able to give a great looking car at a very cheap price.

In my earlier posts, I predicted that Nano will create record interms of sales. I believed that consumers will lap up such a well designed economical car. Nano will create history... but my predictions failed miserably. In November, Tata Motors was able to sell only 500 of Nano cars.

The problem for the brand started when reports of the car getting fire began spreading. Just after the launch, a few Nano cars got fire and the pictures of Nano on flames splashed across the media. Consumers began to seriously worry about the safety of Nano.

To counter this negative publicity , Tata Motors began serious efforts to restore faith in the brand. The company initiated a recall program where the existing Nano cars were fitted with additional safety features. Along with that, Nano was further tested for safety by engineers from Tata Motors as well as from Jaguar.

These measures ,to a certain extent, contained the damage of Nano's brand image. Further to the safety issue, the brand also faced the issue where consumers at the lower-income strata was declined loan by banks and financial institutions for buying Nano. Although the auto loans were always a risky liability for the financial institutions and loan-denial is not anything new in this industry, this issue was again highlighted across the media as a specific issue pertaining to Nano.

So the brand is now facing an issue which is highly perceptual. And a negative perception for a brand in the introductory stage of PLC can be fatal.

To tide over the issue regarding the trust + safety, Tata Motors introduced a four year/60000km warranty for the Nano. The warranty is an assurance from the brand aimed to build trust in the brand.

Along with these measures, Nano also launched its first television commercial this month.

Watch the ad here : Tata Nano TVC

The new ad projects the positives of the car and positions the brand as " Key to Happiness". The brand has adopted the tagline " Khushiyon ke Chaabi ".

What the brand needs is to restore confidence of consumers in the brand. The picture of Nano in flames is still embedded in the consumer's mind. It should be erased if the brand wants to see the sales figures upward. For that it should get as many Tata Nano on the road as possible. The more cars on the road will instill confidence in the consumers to buy this brand. For that the brand should go to any extent.

It is not that I am not aware of the negatives of Nano. But Nano is a genuine marketing effort to satisfy a gap in the market. As a marketer, this is a brand I don't want to see failing in the market.

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Thursday, November 14, 2013

Tata Manza : A Class Apart

Brand : Manza
Company : Tata Motors
Advertising Agency : Draft FCB Ulka

Brand Analysis Count : 473

Philip Kotler once famously said " Marketing is easy to understand and difficult to practice ". The concepts of marketing are no rocket science and hence we can see those concepts being casually treated.Marketing practitioners know the difficulties in cracking the marketing code and making the product successful in the market. It may be the simplicity of marketing concepts that make marketers to defy common sense and make marketing mistaks.
The same casual treatment of branding is visible in the case of branding of Manza and the brand is now investing heavily in undoing the mistake done in the past. Manza was launched as a sub-brand of Indigo in 2009. The Indigo Manza was the premium variant of the popular entry-level sedan brand Indigo. 

Indigo Manza was an effort of  Tata Motors for breaking Indigo from the perception of a Cab Car. Since Indigo was one of the most value for money diesel car in India, it was popular as a cab. Indigo Manza was styled differently and sported the state-of -the art engine from Fiat. 
Indigo Manza was positioned along the same lines of Tata Indigo. Indigo was positioned as a luxury + VFM brand and had sported the tagline " Spoil Yourself ". Indigo Manza had the tagline " Indulge in Style " . 
The brand was positioned as a stylish luxurious car and as usual Tata Motors added lot of goodies to the product to make it worth the price paid for. Another big leap for Manza was the engine. Tata Motors used the tested Fiat engines into the Manza and concentrated more on the style and product packaging . The variant was heavily promoted across the media.

Watch the TVC here : Indigo Manza

Interestingly the confusion regarding the brand started in early 2011. Tata Motors made that significant strategic decision to disassociate  Manza from Indigo. The company decided to make Manza an independent brand and dropped the Indigo endorsement from all communication. Indigo Manza became Tata Manza. Along with the decision came  the launch of Manza Elan which is the premium hatchback variant of Manza.In its independent avatar, Manza did not change the core brand DNA of luxury. Manza reinforced its " Luxury " positioning with the new tagline " A Class Apart ". 

Manza is now investing heavily in creating an independent image for Manza and also moving away from Indigo. Interestingly Indigo is now more associated with its Compact Sedan variant Indigo CS and has left the luxury + VFM positioning to Manza.

The important question here is why didn't Tata Motors think about Manza as an independent brand at the time of its launch itself. Why did the brand spend hell lot of money to promote itself as Indigo Manza for more than two years and then decide to go independent. 

Was it not a bad decision to launch Manza as a sub-brand of Indigo ? What may have prevented Tata Motors to hesitate from creating a new premium brand rather than trying to extend a VFM brand to premium segment.
It is this dilemma that makes marketing decisions difficult.One argument can be that the company wanted to establish Manza in the market first and then gradually make it independent.  My personal opinion is that Tata Motors did a branding mistake in launching Manza as a sub-brand of Indigo. Its common sense that it is always better to launch a new premium brand rather than extend a VFM brand to premium segment using a variant. The decision to sub-brand Manza also shows a lack of long-term strategic thinking on the Tata Motors part regarding the brand porfolio decisions. The company is little confused about how Indica, Indica Vista, Indigo, Manza are to be managed. There was a recent report which suggest that Vista will be disassociated from Indica and launched as a standalone brand. 

One of the reasons for disassociating Manza from Indigo is the threat from the launch of Toyota Etios. Etios  is being offered at a terrific price point and is a direct threat to Indigo's position in the market especially at the premium end . Tata Motors feel that potential Indigo Manza owners will move to Etios because of brand equity of Toyota. Indigo Manza may not be capable to fight Etios because of the baggage of Indigo association. That can be one of the reasons for such a decision.

It is easy to criticize the branding decisions as an observer because the brand managers are bound by lot of internal pressures which force them to take these kind of decisions. 

Regarding Manza, the road ahead is not going to be easy because the association with Indigo is still strong. It will take a lot of money to erase or at best reduce the level of association between Indigo and Manza. 
Ideally the brand owners should have charted the vision for every brand in their portfolio before launching to the public. This creating of brand vision is of extreme importance and should be undertaken for every variants and sub-brands. It should be this vision that will guide the brand's path to future and protect it from the short-term thinking of individuals. 

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Monday, November 4, 2013

Tata Grande : Size Matters

Brand : Grande
Company : Tata Motors

Brand Analysis Count : 501

Another Indian brand has moved from a sub-brand status to an Independent brand. Tata Motors has upgraded the Grande brand to an independent brand status delinking it from Sumo Brand. Tata Sumo Grande was launched in 2008. the brand was expected to raise the sagging fortune of Tata Sumo.
Tata Sumo which was launched in 1994 was a poster boy in the Multi-Utility Vehicle segment. The brand became hugely popular in the Taxi segment .
 But the launch of Innova, Scorpio, Xylo etc soon began to eat into the share of Sumo. Soon the brand began to be perceived as dated. Coupled with the bad PR and image about Tata Cars, the consumer interest began to shift to new MUVs and SUVs.
Tata Sumo Grande was launched as an attempt to shift the consumer's interest back to Tata MUVs. The Grande design was very different from Sumo and the positioning of Sumo grande was also different from the Sumo's positioning. Tata Sumo Grande had the tagline " More than Meets the Eye " focusing on the personality of the brand owner. 

In 2011, Tata Motors decided to make Grande brand independent. The new brand was soft launched and the brand is currently running the launch campaign in various channels.
Watch the campaign here : Tata Grande

The new brand has the tagline " Size Matters ". From the tagline itself it can be assumed that the brand is 
positioning itself as the most spacious MUV ( common sense !). Grande is also hoping to be perceived as a family car , rather than a commercial vehicle. The brand is priced at Rs 7.5 lakh +.

In one of my posts, I had criticized the Tata Motor's strategy of launching Grande under the Sumo brand. Now that that error was rectified, it needs to be seen whether consumers will perceive Grande as different from Sumo. My judgement is that it will be difficult since that association is already being made. So the task for Tata Motors is to put Grande out of the Sumo association as quickly as possible. Interestingly Grande is focusing on the USP - Size which is also the same USP of Sumo.  The brand has been priced competitively but Tata Safari is also priced in the same range so it has to be seen whether these two brands will compete with each other .
The launch of Grande is a move to strengthen the MUV portfolio of Tata Motors which suffered heavily because of sophisticated competing products. Sumo although was a well accepted product was rather getting old in terms of product and image. Tata Motors was not aggressive in making radical product innovations on Sumo or its image to counter competitors like Mahindra and Toyota. Tata Grande is expected to complement Sumo Victa in its fight against the sophisticated competitors. 

Image wise, Grande's launch campaign has done nothing. The ad is very basic and rational and will appeal more to the taxi segment rather than family segment. How ever the pricing and the spruced up interiors will definitely put Grande in advantage over its competitors. The brand could have burned the market if it had priced it less than Rs 7 Lakh. Tata Grande should have aimed at disruption and not incremental value addition since the market is mature and highly competitive. Mahindra is currently doing that with its XUV 500. 

Sunday, November 3, 2013

Brand Update : RIP Tata Indicom ( 2006-2011)

Tata Indicom is dead. The CDMA brand from Tata Teleservices is going to be integrated ( migrated / replaced/exorcised) to Tata Docomo. According to various newsreports, the Indicom brand will be killed and the entire mobile telephony and related services will be brought under the Tata Docomo brand. 
By bringing the entire services under a common brand, Tata Teleservices will be able to reduce the marketing costs and avoid brand confusion. 
But a dead brand is a dead brand. For me every dead brand is a failed brand. 

The new move also marks the larger role played by NTT Docomo in the mobile services JV with the Tata. The branding to Tata Docomo shows the prominence of DoCoMo brand which is the primary brand and Tata brand name is being used as an endorser brand. 
Tata Indicom as a brand was not able to create any strong image in the consumer mindspace. The poor quality ads and confused positioning put the brand way behind aggressive competitors like Vodafone, Idea and Airtel. But compared to Tata Indicom , DoCoMo is an aggressive brand and the promotions are clutter-breaking. By bringing all services under a single brand especially in a low-margin, highly competitive market like cellular services make immense business sense. 

CDMA services also did not quite clicked in the Indian market and consumers were not convinced about the technological supremacy of CDMA over GSM. Now that Tata Teleservices got a foothold over the GSM services through the Docomo JV, the relevance of Tata Indicom's CDMA services has diminished considerably. I wouldn't be surprised if the entire CDMA services will be put in the backburner by Tata Teleservices. 

RIP Tata Indicom ..

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Saturday, November 2, 2013

Brand Update : Indica Vista Goes Sedan Class

Brand Indica got a big boost recently by the launch of the new Tata Indica Vista . The new Vista comes with a spruced up looks and classy interiors packed with goodies. While the competition is hotting up in the premium hatchback market in India, Tata Motors is leaving no stones unearthed to regain its position in the Indian car market. Tata Motors launched its Vista product-line in 2008. The attempt was to strengthen the brand's foothold in the growing premium hatchback segment. 
Although Vista was launched as a sub-brand of Indica, the car was built on an entirely new platform and the refinement and the quality was entirely superior to that of Indica V2. However, Tata Motors decided the new launch to be under the umbrella of Indica brand. This move however was faulty and the response to the premium offering from Indica product-line found reluctant takers despite being value-for-money package.

This year, the brand relaunched the Indica Vista with lot of refinement and tweaking in the pricing. The frequent fuel price hike proved to be a boon to the predominantly diesel focused Indica range. 
The new Indica Vista  finds its point of parity with the sedans. The brand compares itself with a sedan and tries to convey the message that the car is  " Like Sedan".
Watch the ad here : Sedan Class
The new Indica Vista has the tagline " Sedan Class " reinforcing the new positioning. The ad is very sensible and conveys the message quite forcefully. The brand's idea of exemplar comparison with another category is quite effective in communicating its USP of better space and comfort.

During the early months of 2011, there were several reports of the plan of Tata Motors to make the Vista brand independent. The visibility of Indica brand name has been made insignificant and Vista is made prominent. So technically, Vista has become the primary brand in this case. The question is why Tata Motors is reluctant to let go of the Indica endorsement of Vista and make Vista a completely independent brand ? The damage has already made by associating an value-for-money brand ( Indica) with a premium offering ( Vista). Vista is going to suffer by continuous association with Indica brand. Other wise, the brand should be priced significantly lower than the other premium competing brands. 

The confusion regarding the branding of the premium hatchback offering from Tata Motors is evident in the case of Vista. The initial mistake was to stretch the Indica brand to a premium offering. It is very difficult for a VFM brand to build an equity in the premium segment. Second was the reluctance to make Vista an independent brand together with the fact that the premium offering had lot of similarities in features with the VFM offering. On hindsight, I feel that Tata Motors lost an opportunity to build a premium hatchback brand Vista. Three years is pretty long lost years in branding world. Would be interesting to see how the New Tata Indica Vista going to play up in the market. The timing has never been so perfect for a diesel car launch. 

Friday, November 1, 2013

Brand Update : Katrina is the new face of Titan Raaga

Titan Raga has got a new face in Katrina Kaif. In continuation with its celebrity endorsement centered brand strategy, Titan signed the reigning Bollywood Diva Katrina Kaif as the brand ambassador for its sub-brand Raaga. The brand is currently running the campaign featuring the brand ambassador.

Watch the ad here : Katrina Titan Raaga

Titan Raaga which was born in 1992 was able to carve out a space for itself in the Indian watch industry. The brand is targeting the Sec A/B segment with a value proposition combining elegance and quality. 

Regarding the brand communication, there is nothing great about the new advertisement. The ad follows the standard theme and except for a small glimpse of the brand, celebrity rules the entire campaign. The ads featuring Katrina also sports a tagline  " Stay New " . 
 The brand has fallen into the celebrity trap where celebrity gains more importance than the brand. Remember that in most of the Titan ads featuring Aamir Khan , the brand was carefully placed with equal importance as the celebrity. 

Another interesting factor I noticed in the new ad was the absence of any mention of the sub-brand Raaga except for the half-a-second glimpse of the watch. Infact I mistook the campaign for the parent brand. This is another classic case where the agency underplayed the brand in favor of the celebrity. Further there is not much connect between the sub-brand and the theme of the ad. May be the brand is trying to economize by promoting the umbrella brand Titan rather than Titan Raaga. 
Even in the print ads, there is no mention about the sub-brand. This may be a part of the strategy where the Above-The- Line campaigns will be for the parent brand Titan and the Raaga will be relegated to a sub-brand visible only in the product. More clarity will come only after the rolling out of further campaigns.

Does it make a big difference ? 

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Thursday, October 24, 2013

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. 
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