Honda Jazz : Why So Serious !

Brand : Honda Jazz
Company : Honda

Brand Analysis Count : # 476

Honda Jazz is an interesting marketing story. The brand, which is from world's renowned automobile company, is struggling to find its space in India's automobile market. Indian passenger vehicle market is seventh largest in the world and despite the recession, the market grew at a rate of  25.6 % in 2010. According to an estimate from ICRA, the passenger vehicle market in India is expected to touch 2.5 million units in 2011. 

The small car segment is the largest segment in the Indian passenger vehicle market with a contribution of 79% of volume sold. The small car segment is classified as A1 and A2 segments with A2 segment denoting the premium hatchback cars. The market is dominated by Maruthi , Hyundai and Tata Motors with Ford and Chevrolet gaining marketshare at a rapid place.

Honda Jazz was a much awaited small car from Honda. The brand was launched in India in 2009 quickly disappointed the consumers with its arrogant pricing. Before going into the marketing practices, a quick look at the history of the brand. Jazz had its origins way back in 2001. Jazz is the Indian version of Honda Fit which  has achieved commendable success in other markets. Everyone expected Jazz to create a new segment of premium hatchback but alas.

When Honda  announced the intention to launch a hatchback, analysts were Gung-ho  about the prospects. Main  factor behind the excitement was the huge success of Honda City which created unmatched brand equity for Honda cars. 

Honda Jazz was undoubtedly the best looking hatch on the road ( personal opinion). The car is sexy and sporty and the Honda tag ads tremendous equity on Jazz. But despite all these, the sales was lukewarm. The main reason being the arrogant pricing.

Jazz was launched at a price point of Rs 6.98- 7.33 lakhs making it one of the most expensive mini hatchbacks at that point of time. The brand was priced around 2-3 lakhs premium from the nearest comparable hatchback . 

Another significant dampener to the success of Jazz was that its price was almost near the price of the best selling Honda City. While City was 1-2 lakh more than Jazz, potential buyers could easily stretched their budget to own the best sedan in the Indian market. Jazz being a petrol car also lacked the economy factor which is a significant criterion for Indian consumers. 

Honda seemed very laid-back about this issue. The company was in an arrogant mode and displaced this issue with an attitude " if one wants to buy Jazz, let him pay this price ". And consumer opted not to pay that price. 

The company never admitted that Jazz sales were low or below expectations and maintained that they were happy at the sales figures. In my personal opinion, Jazz had the potential to be the next Swift and lost an opportunity to become one. Its ambition of creating a super-premium hatchback also was not realized because of close pricing with Honda City.

Jazz was launched with a positioning of a sporty hatch . The brand had the tagline " Why So Serious " . The brand invested very little in terms of promotions .

Watch the launch campaign  : Honda Jazz

There was nothing great in the launch campaign and the company did not do much to strengthen the positioning of Jazz as a sporty car.

Recently there was lot of activity around the brand. Honda launched a spruced up version  Jazz X with a new campaign " Bring Back the Feeling ". The campaign was clutter breaking and focused more on the feeling of exhilaration rather than rational product features.

Watch the campaign here : Jazz 

The new campaign is not going to do much for the brand. Having said that the market has matured and consumers are now open to spending more on premium hatchbacks. Lot of upmarket hatchbacks are now on road which is a good news for Jazz. But the fact that Jazz is petrol is still the Achilles heel for the brand. 

Am still confused about rationale behind the pricing of Jazz. Honda is a master marketer and why did the company chose to play down the potential of Jazz ? It is common sense to anyone looking at Indian market to observe that pricing Jazz and City in a close range can be suicidal for Jazz. 

Any ideas ??

Dhathri : Evolution of a Corporate Brand

Corporate Brand  : Dhathri

Brand Analysis Count : #475

Kerala- the state where I belong , is famous as a consumption market with little or no manufacturing activity. The state, which is an ideal test market for most of  the consumer products, is dominated by trading & service business rather than manufacturing. Hence the number of brands that originate from Kerala is very less compared to other states.Kerala is well known for Ayurveda. The land is rich in terms of a very well organized and reputed ayurvedic treatment centers. An emerging brand in this genre is the brand Dhathri.

Dhathri Ayurveda Pvt Ltd  was started by Dr Sajikumar, a trained Ayurveda Doctor, in the early nineties. Dr Sajikumar belonged to a reputed family of Ayurvedic practitioners with a rich tradition tracing back to two centuries. Initially Dr Sajikumar's treatment centre was known as Warrier's Hospital and Pachakarma centre which later became Dhathri.

The origin of the brand Dhathri happened in 2005. Dr Sajikumar launched a hair oil under the brand name Dhathri. The hair oil quickly captured the market's attention and the brand became a blockbuster hit. The success of Dhathri hair oil prompted the company to launch a slew of products first in the hair-care segment and later in skin-care market. Interestingly the company decided to use Dhathri as the brand name for all the products across categories.

Along with the FMCG products, the company also ventured into wellness market through the launch of ayurvedic services like slimming centers under the brand Dhathri ABS clinics. Dhathri is now a Rs 250 crore company with interests in FMCG, traditional ayurvedic medicines , clinics and wellness centers.

Dhathri as a brand  is strongly associated with hair-care. The brand has followed a celebrity endorsement route towards brand building. All the launches from Dhathri is endorsed by celebrities and the consistent heavy investment in promotions has ensured that the brand had a top-of-mind recall among the consumers.The success of hair-care products prompted the brand owners to enter the skin-care segment. Dhathri extended itself by launching face-packs, skin creams and related products. Over a short period of time , the brand became an umbrella brand endorsing a plethora of products across various categories.

Watch the ads here  : Dhathri Facepack endorsed by Kavya Madhavan

                                 Dhathri hair oil endorsed by Samyukta Varma

                                 Dhathri endorsed by Usha Uthup

                                  Dheedhi shampoo endorsed by Revathi

Dhathri hair oil has positioned itself on effectiveness platform. The brand has the tagline " It really gives results " reinforces the promise of effectiveness of the product.

Later Dhathri ventured in to the shampoo and soap market with the launch of new brands - Dheedhi and Dhin. Later a toothpaste brand ( Mavila) was also launched. The company also added health-care products like Chyawanprash , diabetic supplement and a family nourisher ( Winsmart) under the Dhathri brand or endorsed by Dhathri.According to a news report, Dhathri has now 20 varieties of herbal products under its brand-line.

Along with these developments, the company adopted Dhathri as the corporate brand name and adopted the name Dhathri Ayurveda. In November 2010, Dhathri began to look at markets beyond Kerala and launched its hair care products in Tamil Nadu.

It is really good to see a regional brand spreading its wings and venturing into a highly competitive national market. But along with those good feelings comes certain thoughts on the current marketing practices of Dhathri.

There is no doubt that Dhathri has grown fast. I feel worried when brands grow fast and become too ambitious. The wide and unrelated products in the portfolio of Dhathri is a matter of concern as far as the brand is concerned. The company although has stated in their website that Dhathri is an umbrella brand , too much unrelated products will dilute the core brand.

Another important branding funda that Dhathri missed was the  core brand strategy . Dhathri has evolved from a hair-care brand to an umbrella brand but this evolution is not seen in the core brand Dhathri. When ever a brand moves from a product-focused brand to an umbrella brand, its DNA changes. The brand owners need to create a new positioning and set of brand values for the umbrella brand. The positioning and brand values of the umbrella brand should be in a  broader platform  so that the new umbrella brand can endorse a diverse set of products.

Now every product in the Dhathri brand portfolio uses the name without any common thread tying itself to the core brand. The company has left it to the consumer to create a distinct position for Dhathri which I feel is dangerous. 

Ideally Dhathri should have created a core brand strategy that should revolve around Ayurveda. The Dhathri umbrella brand should have a unique set of values and brand elements including a tagline that exemplifies its positioning. The umbrella/corporate brand should also have a set of campaigns for creating its own place and then only it should proceed to endorse other products. Each product will have their own campaign highlighting the product features and the umbrella brand will give credibility to individual products. Ideally individual products need to have a sub-brand which could later be developed as a standalone brand.
Now I think no one can answer this most important question " What is Dhathri ? " is it a soap, shampoo, hair care, skin care , food supplement or ayurvedic company that produces all these ?? As a  consumer, for me Dhathri is strongly associated with haircare products and rest of the products have secondary significance. It is important for this brand to comeout of this vague definition and project an individual powerful identity which can be used to endorse products across categories. Once that position is created rest becomes more easy.

The large number of products in the portfolio also may further create problems. The funds for brand promotion is limited and too many products will stretch the company's resources. Most of the products in the ayurvedic market are promotion driven and the growth will show as long as the brand invest in the ads. Larger the products, the thinner will be the investment for each products. This is a vicious cycle which has killed many startup brands which expanded fast riding on the success of one or two launches. 

Dhathri is aiming for a national launch and in that process may rub shoulders with powerful brands like Dabur , Himalaya etc. It is important for the brand owners to get the brand architecture correct before taking the leap.

Brand Update : Comfort finds comfort in Madhuri Dixit

The fabric conditioner brand from HUL- Comfort has roped in the former Bollywood Diva Madhuri Dixit as the brand ambassador. The former Bollywood superstar was on a hiatus after her marriage is now on a comeback trail.

Comfort which is the niche brand from HUL was rolled out nationally in 2010 after a long period of test marketing. The brand was soft launched in some southern states as early as 2008 and it took a long time for HUL to decide national roll out. 

It is interesting to see Madhuri Dixit endorsing a product like Comfort. Interesting because she was endorsing the flagship soap brand Lux during her peak stardom days. Now she has come back on a new role of a homemaker endorsing a very small brand from HUL. 

As discussed in my earlier post on this brand, Comfort is a niche brand and the usage base is restricted to certain segments of the Rs 12700 crore Indian fabric care market. The product is priced at a premium and will be attractive to those homemakers who would like to add some extra care  to their clothes. The campaign also addresses customers in the same platform. 

The inclusion of a celebrity endorser will enhance the visibility of the brand and is expected to bring in many first-time users. Unlike the western markets, washing is not considered a chore in India. For Indian homemakers, washing clothes is a serious activity. They take pride when the clothes are meticulously clean and shining. This unique cultural trait is the opportunity that Comfort is trying to tap.

There are many factors that prevent the growth of such specialist product categories. The main reasons being inertia and price. These premium pricing coupled with the extra effort involved in using the product often make consumers postpone the patronage of such products. HUL hopes that the endorsement from Madhuri Dixit will expand the usage base for Comfort and bring in lot of new users into its fold.

Related Post

Comfort

Sensodyne : For Sensitive Teeth

Brand : Sensodyne

Company : Glaxo Smithkline Beecham ( GSK Asia)

Brand Analysis Count : 474

In line with the strategy of bringing in global brands from its portfolio, GSK has launched its toothpaste brand Sensodyne in India. This is GSK's second foray into the Indian oral care market. Earlier the company had launched its toothpaste brand Aquafresh which was later withdrawn from the Indian market.

Sensodyne is a global leader in the premium toothpaste category ( specialist toothpastes) in various markets like USA. The brand has been around since 1960 came into GSK fold in 2001. GSK bough the brand from its original owner Block Drug Company INC.

Indian toothpaste market is worth around Rs 2750 crore and is segmented into Economy, Popular and Premium segments ( Source : Rediff). The economy segment in worth Rs 530 crores, popular segment is the largest segment with a size of Rs 1930 crores and premium segment constitutes 8% of the market with a size of Rs 260. The urban market for toothpaste is valued at around Rs 1850 crores. 

The premium segment of toothpaste market consists of products which has therapeutic benefits. The brands in this category are Colgate Sensitive, Pepsodent Sensitive, Meswak , Glister etc. These toothpastes are priced significantly higher (>30% ) than the popular segment .

Sensodyne is a toothpaste for sensitive teeth. According to media reports, around 17% of individuals in India suffer the condition of sensitive teeth. Sensitive teeth is a condition where the individual suffers sharp pain while consuming anything that is hot or cold. Since the awareness about remedy for this condition is low, most consumers avoid consuming foods that causes this pain. The fear of going to dentist and possibility of painful interventions often prompt individuals to manage the situation rather than taking remedial action. This is perhaps the most important challenge that Sensodyne faces in cracking the Indian market. 

The brand is operating in a niche. A niche is defined as a narrowly defined customer group seeking a distinctive mix of benefits. Niche is can be called as micro-segment which is small, profitable, with less number of competitors where the consumer is willing to pay a premium for the offerings. Usually niche brands commands a premium since it satisfies some distinct set of consumer needs. All these descriptions fit the category in which Sensodyne operates. The market is also expected to grow fast once the awareness sets in.

The brand is currently running a campaign in visual media with the aim of creating awareness about the condition of sensitive teeth and projects Sensodyne as the dentist's most preferred choice for this condition. Globally also Sensodyne is positioned as Dentist's choice for sensitive teeth. Along with the Above-the- Line promotions, Sensodyne is also conducting brand awareness programs among the key influencer - dentists. The brand is also conducting events called ' Chill Tests ' among consumers to spread the awareness of the condition of sensitive teeth. Sensodyne is banking on the promise that it provides relief in two weeks. 

In India Sensodyne competes with Colgate Sensitive. Colgate Sensitive has the first mover advantage over Sensodyne and has more brand visibility across channels. It will take a little while for Sensodyne to shake the position of Colgate Sensitive. 

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. 

Related brand

Tata Indigo

Brand Update : RIP Ford Ikon ( 1999-2011)

One of the best selling  car brands from Ford is being laid to rest this year. Ford has officially confirmed that the brand will be discontinued this year. Ford has cited the following reasons for the decision to pull the plug on Ford Ikon. The company wants to introduce new cars based on its global platform. Ford Ikon although was derived from earlier models of Fiesta is a car built for India. Hence no other models can come out of its platform. Now globally car markers are looking for making common platforms from which multiple car models can be built. 

Another reason perhaps may be that Ford think that Ikon has become old. The brand has been in the market for the last 12 years and consumers have seen lot of Ikon. Hence this familiarity may prevent further freshness/excitement about the brand.It is my assumption that the brand may not be able to fit into the Bharat Stage V emission norms. 

News reports also say that Ford is contemplating on bringing the Fiesta to the Ikon price band and then introduce another Fiesta variant - Fiesta Sedan at the premium end. 

So Ford Ikon is Dead.

The question is whether killing Ikon is a good marketing strategy or not. 

Theoretically every product moves through a lifecycle and eventually die. But there are brands which has been thriving for decades and still is fresh and alive. So in a branding perspective, only products die and brands live forever. Hence killing a popular young dashing brand Ikon may not be a good idea. And bringing Fiesta to take the place of Ikon also seems to be confusing brand strategy.

Ikon was a neglected brand in the Ford portfolio ever since the launch of Fiesta. In my earlier update on the brand, I had mentioned that the brand was not promoted or energized. In 2009, Ford made some cosmetic changes on Ikon and sort of relaunched it. But a very random non-systematic investment on brand will not yield results. Ikon should have been consistently promoted and nurtured. Ford did not do that and then complaining about the legacy  is just an excuse. Brands will survive above product lifecycle only through regular investment on promotion and innovation. Then even if products die, the brand will reinvent itself under new products. Here I am making a distinction between Brand and Product. 

Ford is now rejoicing in the new found success of Figo. The company seems to have identified the right product strategy and wants to capitalize on that by bringing in more globally compatible products like Figo. Ikon thus does not fit into the new found product strategy of Ford. 

The death of Ikon is opening up a vacant spot in the car market. The segment of a sporty sedan is now open and up for grabs but only for those who have willingness to invest for the longterm.

So RIP Ford Ikon, we miss you.

Related Brand

Ford Ikon