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

Ford Ikon : The Josh Machine

Brand : Ikon
Company:Ford India
Agency:JWT

Brand Count:208

Ford Ikon is a brand with a class. This brand has redefined the car marketing in India. Launched in 1999, Ikon in a way rejuvenated the fortunes of Ford Motors in India. Ford came to India with a dated model like Ford Escort.Escort was launched in 1995 and was one of the first international brand to enter the midsize sedan market.

Ford Ikon was launched in the event of phasing out of Escort. Since then Ikon has been a major player in the entry level sedan market with a share of over 20%. The most interesting aspect of the brand is in its positioning. Ikon dethroned the position of Esteem in the C segment through its breakaway positioning.

Till 2005 Ikon has sold over 100,000 cars and has occupied a special space in the highly competitive car market in India. Ford Ikon is actually an Indian adaptation of the highly successful European Fiesta model. But knowing the Indian market with the Escort example, the company decided to design and Indian car for Indian consumers. Thus born the brand Ikon.
The company virtually adapted the whole product to suit the Indian consumer taste and also Indian driving conditions.Ikon was one of the first examples of Global brand getting Local in the automotive industry.
Once the product is ready, came the question of marketing. Ikon was priced as an entry level sedan car and was positioned in the C segment. C segment was dominated by Esteem and there was a slew of competitors waiting to tap the market including Hyundai Accent. Most of the purchases in this segment was rational and the brands were also positioned on rational platforms. Ikon wanted to break the icons and decided to do away with the demographic positioning. Research and initial test marketing showed that Ikon is associated with the Attractive and Peppy attributes. The company decided to position the brand as a lifestyle brand. The TG was decided to be young professionals who works hard and play hard who are Full of Life and Affluent. This brand is the classic case of lifestyle segmentation.

Ikon had the sporty design and all the pep that a sporty car needs interms of engine capacity and performance. The agency hit upon the big idea of positioning the brand as the Josh Machine.I think the tagline JOSH Machine is one of the best taglines I have come across. Although the term Josh is hindi ( I have criticised Go Fida campaign) Josh term had a universal appeal across India. Although some of the ads were lousy, the product delivered the promise. The Brand clearly identified the TG and Josh satisfied the need for a sporty sedan ( that need is still there). Indian Yuppies lapped up this product and the brand which suffered most because of Ikon was the Maruti Esteem.Ikon was priced between Rs 5.5 lakh and 6 lakhs.The brand broke from the rational positioning into a more emotional plane.The brand had the famous tagline " The Josh Machine " which was later modified to " Live Life with Josh".

The brand hit a rough patch in 2003 with competition hotting up. The launch of Indigo changed the dynamics of the C segment. To compete with Indigo, Ikon launched a variant in the sub 5 lakh category with Ford Flair.

Last year Ford launched its Fiesta in the Indian market at a premium over Ikon. According to company reports, Fiesta is positioned as an Aspirational sedan and complements Ikon rather than cannibalise it. Fiesta became a runaway success because of its blockbuster performance.

Ford Ikon is now at a critical point in its lifecycle. Although the brand has came out with lot of variants over time like SXI, NXT, the brand is now perceived to be an old brand.The Josh in this brand is no longer there and the company is now focusing on its new baby Fiesta. This lack of marketing and brand building on Ikon can prove to be a big negative for the brand. Slowly the brand may lose its relevance in the Indian market . The Ford India site talks about the new Ford Ikon with spruced up interiors,but what the brand needs is a relook on the promotional front.The brand still holds significant relevance in the Indian market because there is no brand that has the sporty look and the positioning of Ikon. There is still an unmet need for a peppy car and Ikon if not promoted with Josh will be a great injustice to the brand. There is not even a need for repositioning. Only high profile well made advertisements will do the trick. Exciting colors and roadshows will pep up this sagging brand. Else this brand will die a very untimely and unwarranted death..

Source: Businessline,agencyfaqs,
image courtesy: agencyfaqs,ford website

Related brand
Ford Fiesta

Ford Fiesta : Go Fida, excuse me GO What?

Brand : Ford Fiesta

Agency : JWT

Base line : Go Fida


This exciting new powerhorse from the Ford Stable is set to hot up the Indian automobile scene.

Ford has tasted its success with its josh machine which is considered as a stylish and powerful car which is priced sensibly. Then the entire market witnessed a large number of product launches and the competition was carving in to Ford's market. Hyundai with its aggressive marketing was able to beat Ford with their Accent .

Ford is fighting back with the launch of Fiesta.
Fiesta is priced aggressively at around 6lakhs is set to capture a fair share of the market.

As usual Ford is also relying on the bollywood stars to sell its car an this time roped in Abhishek Bachchan to endorse the car. The campaign is executed by JWT.

Regarding the campaign, I have my own reservations. I know hindi but the term Fida is strange to me, so it will be for the entire south indian market. josh although it is an Hindi word, south indian languages also have similar words. but Fida is a real strange word. Only yesterday I came to know that it meant "mad about something" .............well fine....

Ford will have to spent some money on teaching the Non hindi speaking consumers about the main positioning statement " Go Fida"

Marketers should be careful about the positioning statements and its linkages with the market. It is important that they understand a diverse maket like India with 17 odd major languages and million dialects. So does it make sense to have a positioning statement that is simple and could be understood by the target market.

Fiesta will be successful because it offers excellent value for money proposition, the one and onluly one proposition that works in India, but for the campaign and positioning , I have my doubts

Maruti Esteem : Welcome To The Big World

Brand : Esteem
Company : Maruti Suzuki
Agency: Lowe

Brand Count: 180

Maruti Esteem is one of the best selling cars from the Maruti's portfolio. The car created the C class segment in India is known for its quality and reliability. Esteem was launched in Indian market in 1995.

Esteem is actually the rebadged version of Suzuki Cultus. The previous avatar of Esteem in India was Maruti 1000. Maruti 1000 was the 1000 cc sedan launched in 1989. Although the car was well received by the consumers, there were certain issues interms of Power and ride comfort. This prompted Maruti to take out the model from the market. This paved the way for a much powerful and refined sedan from Maruti with the new brand name Esteem.

True to its name, Esteem was considered an upmarket luxury car during the early ninetees. The car lived up to the expectations of the consumer and delivered excellent performance. The mid nineties turned the tables against this brand. All the global majors began to eye this lucrative segment and the competition became severe for the brand.

The high profile launch of Ford Ikon and Hyundai Accent took the gas out of Esteem. As usual, Maruti was reluctant to make any drastic changes to the best selling Esteem. The car retained its same look for almost 15 years. The entry of the fully loaded Tata Indigo also made the life of this brand very difficult. The car from its position as a market leader in the C segment became " An entry level sedan". The launch of Baleno in the segment further weakened the position of Esteem in the hierarchy. Baleno was launched at the premium end of the segment but the recent price cut and dealer offers put Baleno at the same league as the Esteem.

I am not sure about the previous positioning of Esteem . For customers it was a good car from Maruti. I would say that it was a sedan which anyone can buy with their eyes closed. The brand had tremendous equity and was a natural choice for an Upgrade for a Maruti Loyalist. So this brand was the choice of a Zen owner as an upgrade.The excellent quality ensured high customer satisfaction for this brand. Esteem was always rated high by JD Power satisfaction surveys. The quality of the product was the single reason for the successful extension of the brand's lifecycle.

Esteem was a good package, hence the company was not sure as to the USP or the Point of Differentiation. Whether it was power or comfort or looks or quality , this confusion was evident in the ads of Esteem during the nineties. While the competing brands had their own USP's
Ford Ikon focused on Power
Indigo on Value
Fiesta on Looks etc

The confused positioning diluted the brand equity of Esteem and made it look like a second cousin to Ford Ikon. The value proposition of Esteem was challenged by Indigo and the overall comfort and drive quality was challenged by Hyundai Accent.

2004 saw the reincarnation of Esteem .The entire car got a new look. Taking cues from Baleno, the car was changed completely. The company embarked on a new positioning " Fall in Love Again" on an emotional platform. The car looked better and was a welcome change from the old much seen look of Esteem. But again the ads were little too boring .

2005-2006 saw the brand striking the " Big Idea" .The new positioning was formulated. The brand is a Big Car.... Big on mileage, Big on Power etc. The campaign has the common theme of a father and daughter with the daughter discovering the " Bigness " of the new esteem. Although I have reservations about the execution of the campaign , the " Big" Idea is really a "Big Idea".

The brand is now revealing its true self. The tagline says " Welcome to the Big World" . The TG is those looking for an upgrade. The audience will be the die hard Maruti fans and those who don't want to take risks. The positioning cements the realisation that the position of Esteem will be in the Entry level C segment.The brand faces stiff competition from Indigo interms of value proposition.

Related Brand
Ford Fiesta

Source ; Businessline, maruti.com,wikipedia
image courtesy: maruti website

Brand Update : Maruti Esteem RIP ( 1995-2007)

One of India's most reliable sedan is now a part of history. Officially Maruti Suzuki pulled the plug on Esteem on December 2007. According to the reports, Esteem is likely to be replaced by Swift Sedan branded as Dezire.

Suzuki Esteem is a perfect example of a brand moving through its Product Life Cycle. Within 12 years, the brand moved through all the stages. The reason for the withdrawal if Esteem is the fact that the brand is being perceived as dated brand. With high profile competition from brands like Ford Fiesta, Indigo, Verna , Accent, Logan and host of other sedans, the customers are spoiled with choices. Esteem in a sense has lost the esteem value for the customer.

With the price tag of 5-7 lakhs , the customer had a choice of more luxurious sedans that too with diesel options. Maruti could not afford to sell Esteem at a lower price and even after its makeover couldn't attract the buyers.
But I feel that like the good old Zen, Esteem's withdrawal may be a mistake since it could work as an excellent flanker brand for SX4 and the proposed Dezire. The brand would have made a terrific comeback if Suzuki could cut the brand's price to 4-5 lakhs. There is a huge potential for a sedan at the price range of Rs 4 - 5 lakhs ( on road) .
How ever Esteem now does not fit into Suzuki's new scheme of penetrating into the luxury sedan market.Hence the brand is being phased out.

Related Brand
Esteem

Brand Taglines : A - F

A

1. Amaron : Lasts Long, Really Long, Ting Tong
2. Alpenliebe : Lalach Aaha Laplap
3. A Star  : Stop @ Nothing
4. Alto : Lets Go
5. Allen Solly : My World, My Way
6. Aliva : Thodi Sharafat, Thodi Shararat
7. Arrow : USA 1851 / The League of Professionals
8. Acer : Life is busy, Acer makes it easy
9. All Out : Macharoan ka Yamraaj
10. Amway  : We are listening
11. Airwick : Its good to be home
12. Amul : The taste of India
13. Amul Macho : Ye toh bada toing hain
14. Accu-check : Live life the way you want
15. Apache : Racing DNA Unleashed
16. Amrutanjan : Its Gone /Pure Healthy Essence / Kick Out Pain
17. Ambipur : Fragrance Your Imagination
18. Appy Fizz : Cool Drink to Hang Out With
19. Allen Solly : Friday Dressing / Adios Stressing Hello friday dressing
20. Accenture : High performance delivered
21. Airtel : Express Yourself 

B

1. Binani Cement : Sadiyon Ke Liye
2. Breathe Right : Breathe Better, Sleep Better
3. Bournvita : Do you have Bournvita Confidence ? / Tan Ki Shakthi, Mann Ki Shakthi (2011)
4. Boost : Boost is the secret of our energy
5. Big Babool : Bade Kaam Ki Cheez
6. Boomer : Boom Boom Boomer
7. Bournville : You don't buy a Bournville, You earn it
8. Brio : It Loves You Back
9. Bosch : Invented for Life
10. Bru : Happiness Begins with Bru
11. Bingo : No Confusion,Great Combination
12. Belmonte : Suit Your Style
13. Blackberrys Suit : Go Sharp

C

1. Cif : Lets You Shine
2. Candyman : Kucch Bhi Karega For Candyman
3. Center Fresh : Zubaan Pe Lagaam
4. Chlormint : Dobaara Mat Poochna /Chaba Daba Ke
5. Complan : I am a Complan Boy
6. Clear Shampoo : No Dandruff
7. Clean & Clear : Clean Clear and Confident
8. Ceat : Born Tough /Be Idiot Safe
9. Coca Cola : Open Happiness
10. Canara Bank : Together we can
11. Close Up : Taazgi Jo Pas Laye
12. Coffy Bite : Coffee or Toffee /Bachchon Ki Coffee, Badhon ki Toffee

D

1. Dyna : Be a Lady
2. Dairy Milk : Kucch Meetha Ho Jaye
3. Dettol : Be 100 % Sure, 
4. Dabur : Celebrate Life
5. Dominoes : Hungry Kya /Khushiyon ki Home Delivery
6. Dinesh Suitings : Take the world in your stride
7. Doy soap : Clean Skin, Healthy skin
8. Daiken : Complete Silence
9. Domex : 100% Germ Killer
10. Dell  : Power to do more

E

1. Eclairs : Chocolate ka meetha bomb/Dooble Sara / Get Lost
2.  Enfield : Trip
3. Essilor : Seeing The World Better
4. Essenza Di Wills : Your Essence Your Soul
5. Eveready : Give Me Red 
6. Everyday Dairy Whitener : For great tasting tea
7. Eno : Gets to work in 60 seconds
8. Euro Innerwear : Prepare to get assaulted 
9. Eon ( Hyundai ) : India On
10. Economic Times : The Power of Knowledge

F

1. Fa  : Feel Good Freshness
2. Fiama Di Wills : Beautiful You , Today Tomorrow
3. Frooti : Fresh'N'Juicy , Grow Up
4. Fair and Lovely : Chaand Ka Tukda
5. Fastrack : How many you have ?
6. Fair & Handsome : Be fair ,Be Handsome
7. Fem : Beauty With Care
8. Fiesta : Go Fida 
9. Ford : Go Further
10. Fanta : Zyada Fanta Zyada Masti