Saturday, July 03, 2010

Brand Update : Logan Loves India

Automobile enthusiasts were curious about the future of Logan after the brand was taken over by Mahindra. The Renaulth - Mahindra JV was in trouble after Renault began to aggressively pursue multiple JV in the automobile market. The issue resolved after Mahindra buying out the JV. As of now Mahindra will be promoting the Logan brand.

The first move that Mahindra made after the buyout was to rationalize the price of Logan. The price of Logan was reduced by a massive Rs 60,000 and the brand is now retailing at Rs 5.35 lakhs . Logan was struggling to make decent numbers because even at Rs 6.5 lakhs, it was finding it difficult to convince the customers about the value proposition. The market is also witnessing a new consumer attention towards premium hatchbacks which is eating into many sedan's market share.

Once Logan got the attention of consumers with its attractive pricing, the brand moved into the next marketing step - communicating its new value proposition to the consumers. Logan is currently running a new campaign " Logan Loves India " ( which is also the new tagline). The new campaign is highly rational and talks about the brand's strong points like Space and Mileage. Although these attributes are talked about by every brand in the class, Logan is trying to project itself as a brand made for India.
Watch the campaign here : Logan Loves India

In the new campaign , the brand uses testimonials of customers to drive home the value proposition of the brand.

One of the burning issue between the Mahindras and Renault was over the product specifications. Mahindra wanted the size of the Logan to be trimmed to take advantage over the tax rules but Renault was cold on such a move. With Mahindra now in full charge of the brand, such a move can be seen in future.

Logan was always trying to position itself as a value brand and the latest commercial only refreshes the brand's core positioning. When the brand was launched , consumers were convinced about the brand's value but the brand messed it up. Now the onus is on Mahindra to bring back the trust factor in consumers. With Renault exiting from JV, there are serious doubts about the future of Logan. The task of the brand is to convey that trust to the consumers that Logan is here to stay. "Logan Loves India " campaign may be trying to do just that

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