Wednesday, November 22, 2006

TVS Scooty : Playful + Powerful

Brand : Scooty
Company: TVS
Agency: McCann Erickson

Brand Count:162


TVS Scooty launched in 1994 is one of the super brands in India. The brand has created and ruled the Scooterette market in India. Scooterettes are sub 100 cc variomatic scooters targeted specifically at the fairer sex.

The brand was an instant hit in the market because of its low price and smart positioning.The brand effectively identified the need for the TG and the product was lapped up in the market. The segment for this brand are
a. College going teenagers
b. Working ladies
c. Even Men

The market can be divided broadly into two based on the customer preference. One set of customers prefer Functionality and another segment prefers style. Scooty has been able to maintain the balance between both.
The entire market for scooters (75-125cc) is dominated by Honda with its Activa and Deo range. Scooty has a market share of about 30% in the segment. The scooterette market is hotting up with lot of competitors eyeing for the share . The latest in the block is the Hero Honda Pleasure which is positioned as a stylish brand exclusively for ladies. The competition also have prompted the players to enhance the power of the scooters.
Scooty has been consistently successful because the brand was quick to change with times.The brand never failed to emulate the competitors when they come up with added features. The brand always had two set of campaigns: one stressing style and the other stressing the functionality.

Scooty has now launched a more peppier Scooty Pep+ with more power. The engine has been upgraded to 90 cc from 75cc. The change was warranted because of the following reason:

a.There is an assumption that ladies/girls prefer less powerful vehicles. Although it is a fact that the segment prefer lighter vehicles, the " powerlessness" is just an assumption. The success of Honda is an ample proof that ladies too prefer powerful vehicle . There is also a distant possibility that the segment preference for more powerful vehicle will increase in days to come. The reason is that those who use these vehicles often need to carry either their kids or their friends along with them. Also the road conditions and the traffic calls for a powerful vehicle.Scooty aims to be the lighter powerful vehicle for them

b. Another factor is the segmentation issue. Scooty is more appealing to the college going girls because of the style. While in the case of working ladies, the segment is targeted by scooters rather than scooterettes. So unless Scooty take this segment seriously, it will be an opportunity lost for the brand. It has to be recalled that their scooter brand Spectra has failed in this market.

Scooty Pep+ is promoted heavily by TVS. The brand is positioned on the basis of Power and Style. The brand got a big boost with Priety Zinta as its brand ambassador. Priety and Scooty gels so well that I call it a perfect example of Successful celebrity endorsement ( my opinion). TVS has been lucky or smart enough in identifying right celebrities to endorse their products like Sachin and Dhoni for Victor and Star respectively.

Scooty also launched another campaign taking the brand to the next level talking about women empowerment and success. The brand is trying to ladder up to a higher state of connectedness with ladies. I think the brand has taken some lessons from Dove and Fair & Lovely which has been successful in laddering up. According to Professor Keller Laddering is the progression from attributes to benefits to more abstract values of motivations.Failure to do so will reduce the strategic alternatives to the brand. ( strategic brand management: Kevin.L. Keller).

The product category of scooterettes are showing more potential in the urban markets in coming days. This category is non existant in the semi urban and rural markets which will be a tough call and in the current conditions, it may not be possible also. The possible competition is from electric scooters and second hand Maruthi cars . Another issue for the brand is to sustain the value proposition for Scooty. Scooty is priced around Rs 32000 which is a premium. It is walking on the thin red line between benefit and cost. The price -value proposition will be biggest challenge for this brand. Having a no frill low cost Scooty has to be there to keep away the treat from the price warriors.

source: businessline,indicar, tvsscooty.com,economictimes,strategicmarketing