Tata Sierra : RIP

Brand : Sierra
Company: Tata Motors
Agency: O&M

Brand Count :144

Sierra is the first passenger car from Telco ( Now Tata motors). Tata Sierra was launched in 1991 marking the transformation of a Truck manufacturer to a Passenger vehicle maker. Sierra was an entirely a new product in the Indian car market at that time. This three door vehicle was indeed the first SUV to hit the Indian roads.

Sierra was the baby of Ratan Tata and his first attempt to make a mark in the Indian Business world after taking over Telco. But the product bombed inthe market. Sierra can be said as a brand that came too early. The Indian market was not ready for this concept.

I personally love this car for its look. Most of you will agree that this vehicle is a stylish one. Even with the entry of all major SUV brands in India, Sierra looks contemporary ( my opinion) and modern.
Why did Sierra failed in the market?
a. Price
b.Quality
Sierra primarily failed in the market because of its steep price. Priced around Rs 5 lakh, the brand failed to appeal to the value proposition of the Indian consumer. Another factor was the corporate image of the company. Telco was rightly perceived as a truck manufacturer and Sierra was the first passenger car. Hence the consumers were not ready to shell out a premium for this brand

Then there was the quality issue. Sierra was a truck in the car form ( no problem with that!) .The consumers knew that and the price don't justify the quality proposition given in the product. Although steeply priced, Sierra had all the goodies that 2005 cars offered like power steering, power windows etc. Yet.... Sierra failed to enthuse the customers.

Sierra was rightly positioned as a sporty beast. The ads and campaigns rightly promoted the brand and it had all the potential to be an icon. Telco made a mistake in having high hopes for this brand. At the best, the product could have been a niche brand and an important one. The brand could have lifted the company to a higher level, had the quality issue was rectified.

Even today , we can see this car on the road . And most of the owners who uses this product because they like the brand not for any other reason such as low price.I read in an article that the design guru Dilip Chabaria loves the look of Sierra. As the old ad of Sierra says , "Sierra is not owned It is Possessed". Today Sierra's position is occupied by Scorpio and rightly so.. If launched again with a right price , there is still a market for Sierra.

Source: indicar,businessline,agencyfaqs.

Marketing Q&A : Automobile Market segmentation

Marketing Practice Reader Krishnan asks this question :

"Is Indian automobile market (car) driven by family ? Is family influence more when someone buys a small car or a sedan ?"

The answer to the first question is both Yes & No. The major segment in the Indian car market is driven by family. This is because of the current state of Indian automobile market. The market is still evolving .

During the initial stages , every market will be unsegmented . But as the market matures, segments evolve. Marketers devise new methods /variables to segment the market. In the car market also, we had the market dominated by the family segment. The first attempt to segment was by Tata Sierra which tried to bring in the SUV segment. But the market was not ready to accept that product.

Indian car market is predominantly family oriented. In the developed market, we can see different family members owning different types of cars. One of my colleagues say that a typical American family will have a small car/office car , an offroader( or a truck) and a sedan . Our market is still to evolve to that stage. Still for most of us, cars are a luxury rather than a mode of transportation.

Hence , here the primary segmentation was based on the price of the car and also the nature of the car. So we have A segment, B segment, D segment etc and segments like MUV, SUV, Sedan, Hatchback ,small car etc .

The dominant segment ( small car/ hatchback) is driven by family. So the entire family takes part in deciding the purchase of the car. The major determinants being the size of the family, price, cost of maintaining like mileage , brand , type of car etc.

The buoyant economy and the emergence of neo-rich class has changed the dynamics at the upper end of the market. I know families which own more than 3 different types of cars to serve different purposes. In the case of such affluent family, the purchase considerations are different.

My feeling is that the launch of Tata Nano will also see some change in the way Indian car market is segmented. Now even middleclass can afford to have more than one cars. And cars may move from a luxury product to a mode of transportation.

Maruti Gypsy : RIP

Brand : Gypsy
Company: Maruti Suzuki

Brand Count : 182

Gypsy was one of India's first sports utility vehicles. The vehicle created a breakaway category of SUV offroader from the existing jeep category which was dominated by Mahindra. Born in 1985, the brand was considered as an aspirational one by many young at hearts.The brand was positioned on the basis of its ruggedness. The brand was promoted as a pure offroader. The ads used to say that Gypsy could even climb trees. The positioning was reinforced by the success of the brand in rally and offroad events. Maruti also promoted such events to boost the brand as the ultimate offroader. The brand had the tagline of " There is a Gypsy in Everyone".

But the brand failed to capitalise on the first mover advantage although it is still considered to be one of the sportiest looking SUV in the Indian market. The brand is now confined to certain niche markets like Police and Army vehicle segments.
Gypsy was the rebadged version of Suzuki Jimny. Although Jimny is still surviving, Gypsy is in the last stage of its product life cycle. The brand which pioneered the offroader category sadly is dying when the SUV category has started growing. The brand failed because of the apathy of the company in investing in the brand. The product had inherent problem that created negative word of mouth and the company didn't cared to look at the negatives of the brand.
Gypsy although considered as a tough vehicle lacked many important attributes valued by a customer. The driving quality and the mileage was awful. The product was priced at a ridiculous premium which was not justified interms of the delivery of value.
The brand was priced at around Rs 5 lakh which is comparable with a entry level sedan.The product although looked excellent outside was a mess inside. The vehicle lacked space and comfort especially for the rear seat. It had all the qualities for an offroader but failed to understand that Indian consumers use offroaders on roads ( cities).The mileage was awful and that ensured that only those who fall head over heals over the looks only will buy this brand . Since MUL at that time was in the public sector, the brand was sold to Police and army. For the ordinary consumers, the brand did not made any sense.
Gypsy also did not change itself in tune with the changing industry requirements. The vehicle initially was severely underpowered for an offroader. The company enhanced the power from 975cc to 1300 cc only after 11 years. Gypsy King was launched in 1996 sported the more powerful Esteem engine but was priced steeply.
The last four years has shown that SUV category is growing very fast fuelled by the success of the likes of Mahindra Scorpio. Most of the global bigwigs in the SUV segment is now there in India. Suzuki also has launched its brand Grand Vitara in this segment. But in the current scheme of things, Gypsy was sadly not in the picture.

Compare the picture of the Suzuki Jimny (given in the blog) and Gypsy and see the difference. Had this brand changed its looks and feel in tune with the emerging category requirements, Gypsy could have been a major brand. But Alas.... the brand's fate is to be cited as an example of Marketing Myopia or is it Marketing Laziness.

Source:marutigypsy.com,wikipedia

Related Brands

Tata sierra