Monday, November 16, 2015

Brand Update : Will Tata Motors be made great by Messi

In a really surprising move, Tata Motors roped in the football legend Lionel Messi as the brand ambassador. Tata Motors has been in a sticky wicket in the last few years. Once the Indica magic was over, Tata motors were not able to produce a volume player. Nano was a disappointment and the company watched its competitor  rolling out best sellers year after year. 

The company had been working hard behind the scenes under the revival strategy named Horizon Next. The first two products under this plan were the Zest and Bolt. Both gained good reviews in the market, but the baggage of the Tata Motors brand was pulling down any scope for a spectacular show.
Perception is powerful and often enduring and it is not easy to change perceptions. The  lack of perfection and nagging complaints of earlier Tata Motors cars created strong perceptions which are proving to be a tough nut to crack. Tata Motors is one of those brands which people know, like and trust but doesn't want to buy. 

The big endorsement from Messi is another effort of Tata Motors to change perceptions. The brand knew that it is losing out from the mind of the younger generation. With the competition in the Indian market is global, nothing less than a global icon will do for a brand like Tata Motors. 

The company is currently running the endorsement campaign named " Made of Great ".
Watch the ad here: Tata Motors Made of Great 
The ad is all about Messi. The new campaign is all about Messi and Tata Motors attempt to make some connect with this iconic football player. 

The Messi effect would come into play with the new launches of Tata Motors. According to news reports, the new launch Tata Kite was teased in the above-mentioned ad. The new launches would benefit from this high profile endorsement. 


While Messi would rekindle some interest in Tata Motors, what is important is to make good the flaws that created the perception that is preventing brands from Tata Motors to have customer preference in the buying process. Products from Tata Motors are in the bottom of the consideration set in most cases. Consumers will consider products for purchasing only if caters to some minimum requirements. Sadly somewhere the products of Tata Motors is lacking ( or perceived to be lacking ) on those vital parameters. 
Hopefully, as the ad goes, Tata Motors would rediscover those factors which make the products great. 

Monday, October 19, 2015

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.