Revotron : The 3 in 1 engine

Brand : Revotron
Company : Tata Motors

Brand Analysis Count : # 544

Revotron is the new hope of Tata Motors. Tata Motors which once was the number 2 in the Indian car market, is now finding it difficult to be in the top 5 thanks to the nagging quality issues coupled with a negative brand perception. This brand is another example of  ingredient branding.

But Tatas are known for its resilience and Revotron is the result of a serious introspection and investment in developing an indigenous petrol engine with global standards. And from the media reports , Tata Motors have managed to live up to the high standards set by itself. And after many years, media has been kind to Tata Motors with a fairly good reviews about the engine performance.

The 1.2 Ltr engine is being promoted heavily by Tata Motors ahead of the launch of the two major new products - Tata Bolt and Zest. The Revotron brand is endorsed by the Indian F1 Racing star Narain Karthikeyan.

Watch the TVC here : Revotron
The USP of the Revotron engine is the 3 driving modes which is usually seen in high end cars. There is a city mode, Eco mode and a Sports mode. For a value-driven brand like Tata Motors, this proposition is a very powerful differentiation.
Platforms and not products are now important to a company's success. For automakers, engines offer the platforms on which many products can be made. Honda has recently demonstrated the power of platform with the diesel IDtec engine.
Tata Motors hope that the better engineered Revotron would help build a better image for the cars produced under it.

Teflon : Life Runs a Little Smoother With Teflon

Brand : Teflon

Company : DuPont

Brand Analysis Count : 469

Teflon is a pioneer in ingredient branding . Infact this is a brand which popularized the concept of ingredient branding even before Intel's classic Intel Inside branding story. The story of Teflon is a classic and interesting story on Ingredient Branding.

Ingredient branding is a special case of co-branding where the marketer brands components or ingredients contained within other branded products.

Teflon is DuPont's brand of a chemical compound known as Polytetrafluroethylene. Teflon is a high molecular weight compound containing carbon and fluorine. The invention of this compound was made at DuPont's research center by Dr Roy Plunkett in 1938. Dr Roy was working on a experiment on refrigerants when he accidentally discovered a compound which was inert to almost all chemicals. Rather than discarding this compound, Dr Roy and his assistants tested it and Teflon was born. ( Source here)

In 1954, a French engineer named Marc Gregoire created the first non-stick Teflon coated pan (source )

Now Teflon is a powerful brand with a global brand recall of over 98 %. The brand has almost become generic name for properties like non-stickiness , anti-corrosive applications. As a consumer we use this brand in the automobile , clothing and in our kitchens.

The growth of Teflon from a chemical compound to a powerful ingredient brand was not by chance but because of a very well executed branding strategy.

The first factor behind the huge success of Teflon was the product itself. Teflon ( compound) is patented by DuPont. Hence the brand is protected against any competitive threat. Competitors had to find a way to either circumvent the patent or discover a substitute. Although there are substitutes for Teflon, this patent created a huge entry barrier for potential competitors.

The branding strategy adopted by Teflon was at three different levels.

At the consumer level , the ingredient brand has to convince the customer about the brand's promise and utility. At this level, the ingredient brand has to promote itself to the consumers through various brand campaigns. For example , Teflon is currently running a branding campaign for its Teflon Fabric Protector product.

At the manufacturer level, the ingredient brand has to convince the other manufacturers to co-brand with itself in the promotions. This is the most difficult task. The host marketer should be convinced about the ingredient brand's value and the value that it will bring to the host brand.

For example , Asian Paints had a branding campaign with Teflon Surface Protector featuring Saif Ali Khan ( Watch the ad here)

There is one more task which the brand has to do -It has to reinforce the ingredient brand's image as an expert in its field. At this level, the brand acts as endorser to the host brand where the consumer is assured that the host brand will perform better because of the presence of the ingredient brand.

Teflon became a huge brand because it was successful in establishing itself at these three levels. At the consumer level, the brand was able to create awareness and also establish confidence. At the manufacturer level, the brand was able to associate itself with a large number of established brands. At the endorser level, the brand became so strong that consumers began to prefer Teflon endorsed products over other products.

Teflon is now engaging consumers at different categories. The brand now has presence in surface protection, fabric protection, automobile segment etc. Along with that , the brand has its presence in industrial application market also.

Teflon is an interesting marketing lesson for all of us. DuPont has proven its marketing acumen by establishing strong ingredient brands like Teflon, Lycra etc. These success stories will inspire many marketers to view branding as a serious strategic tool .

K Series Engines : Leaner Meaner Fitter

Brand : K Series
Company : Maruti Suzuki

Brand Analysis Count #450

Marketing Practice Blog has reached another milestone of 450 brand analysis. Let me take this opportunity to thank my readers whose constant feedback was a source of inspiration for me. The next obvious target is 500.

I am happy to mark this achievement with a very interesting brand - K Series Engines from Maruti Suzuki.

K Series is a classic example of Ingredient Branding. Professor Kevin Lane Keller defines Ingredient Branding as a special case of Co-Branding which involves creating brand equity for materials, components or parts that are necessarily contained within other branded products.

Although Professor Keller defines Ingredient Brands as a brand from one company which is an ingredient/component in a host brand from another company.But recent marketing practices has shown that ingredient branding can be done by the host company itself .
So ingredient brands can originate from the same company or from different companies. For example HP computers powered by Pentium Microprocessors is where ingredient brand Pentium is owned by a different company ( Intel) . Hence it is a case of co-branding.

In this case of K series, the ingredient brand is owned by the company itself. So theoretically it cannot be termed as a case of Co-branding.

K Series was launched in 2008 . The launch was to counter the much touted Kappa engine to be launched by Hyundai. K series engines also conformed to the tougher emission norms that came into force from April 2010.

Branding engines is not new in the Indian market. Bajaj Auto was a pioneer in branding its DTSI technology and reaped tremendous benefits in terms of differentiation. Maruti is trying to replicate Bajaj's success in the four wheeler market.

K series has been a success and the company has produced more than 3 lakh units in 18 months time. K Series engine is fitted in the new generation models like Swift, Swift Dzire, Ritz ,A star and new Wagon R. The first model to come out with this engine was A Star.

K Series engine is claiming to be more fuel efficient offering better control and ride quality. Maruti has invested some amount of money for the promotion of this ingredient brand. This is rather unique marketing practice seen in India because most of the other car makers having ingredient brands does not resort to exclusive ingredient brand promotion. There will be mention of the engine in the product ad but no campaigns exclusively for the engine.

The brand was launched with the ad featuring the marathon runner. Watch the ad here : K Series ad.

The ads could have been much better and more creatively done. The campaign lacks the " Aha " factor and only helps to create a brand awareness .How ever the company needs to be applauded for this type of branding. K series has adopted the tagline " Leaner, Meaner, Fitter" which sums up the brand promise.

The reason for Maruti going for ingredient branding is simple. Engines are now largely becoming commoditised. Now we see same engine in different car brands from different makers. For example, some models of Tata Motors, Fiat, Swift carry the same engine. When engines become a commodity, marketers have to look for other powerful differentiators. Hence ingredient branding comes to help. Ingredient brands are protected by the firm and creates its own identity in the mind of the customers. So K Series engines provide the much needed sustainable differentiation for Maruti.

According to reports, Maruti is planning to have K series engines for all its models. When the competition in the market has increased substantially for Maruti, such smart moves will help retain its leadership position in the Indian market.

Brand Update : Bajaj Pulsar

Recently I saw an ad of Bajaj which showed that Bajaj XCD 125 is now in the DTSI Club . The DTSI which stands for Digital Twin Spark Ignition system was a technology patented by Bajaj.

This technology uses twin sparks at either end of the combustion chamber which gives faster combustion compared to the single spark plugs found in conventional engines. This twin sparks increases the power of the engine and offer better performance.

Bajaj did a great marketing move by patenting it and then branding this technology as DTSI. This is a classical case of ingredient branding. The DTSI was featured in the second generation Pulsar which was launched in 2003.

While Pulsar rode the wave in 2001 on the back of excellent styling and mind-blowing positioning , DTSI became the key differentiators for the brand after 2003. Pulsar was perceived to be a mean machine because of DTSI.

Pulsar thus created and ruled the performance bike category in India.

Its natural for any company to think of extracting maximum mileage out of a patented technology. Bajaj did just that by extending the DTSI technology to all its vehicle models including scooters . My doubt is whether Bajaj has commoditized the DTSI technology by extending it too much.

When DTSI was associated with Pulsar, it meant power , efficiency and performance . But what will DTSI mean when it is associated with a small scooter like Bajaj Krystal or a entry level bike like XCD.

Branding an ingredient is the same as branding a product. The consumers should feel that the ingredient brand is different from other ingredients . The concept of positioning also applies to ingredient brands.

In many ways, Bajaj has done correct strategies for DTSI. It patented it, protected it and branded the technology. But where it had failed was that it commoditized the ingredient brand.

Bajaj did not try to give a special personality for DTSI. Remember, DTSI had a strong secondary association with Bajaj Pulsar. Both the brands benefited out of this association. Pulsar used DTSI as a differentiator while DTSI got the performance tag from Pulsar.

But by making this technology available to all other brands without clearly looking at synergy was a big mistake from Bajaj. I have no doubt that the extension of DTSI technology to other brands will greatly help the sales of these brands . XCD will sell more when it has the DTSi technology.

When a measly powered scooter is also powered with DTSI, what is DTSI ? It had lost all its brand values which were power and performance. I don't think that XCD is anywhere near Pulsar in terms of power or performance. So in a way Bajaj has virtually killed this powerful ingredient brand.

The brand which is going to suffer most will be the flagship brand Pulsar. When every other Bajaj brands have DTSI, how is Pulsar different from rest of the crowd ?

The obvious answer will be the design. If it is so, then Pulsar could be beaten by any other bikes which are better designed. Having good looks is good for the brand but cannot be sustained over a period of time because :

Competitors can come with good looking bikes.
Designs can be outdated.

Both these are affecting Pulsar. Too many Pulsars on the road has made this brand dated in terms of looks. But DTSI was a powerful differentiator which cannot be copied since it was patented. But Bajaj , because of greed, faltered with one of the most powerful differentiators at its disposal.

Last month, I read a report saying that the newly launched Yamaha FZ 16 has become the number two brand in the 150 cc segment beating Apache RTR , Hero Honda Hunk and CBZ. In some markets, FZ also has beaten the market leader Pulsar. Without a clear differentiator, Pulsar is now more vulnerable than ever.

Is Bajaj listening ?????

Related Brand

Pulsar
Yamaha

Bosch : Invented for Life

Corporate Brand : Bosch
Agency : Saatchi & Saatchi


Brand Analysis Count : 364



Have you ever thought about the brand of wipers you have in your car? Ever thought about the brand of spark-plug of your bike ? How many of us have insisted to the mechanic that we need a specific brand of spark-plug or a wiper ?

Compare that to a consumer insisting on Pentium Core Duo for his computers.

Welcome to the world of ingredient branding.

Bosch want to be the Intel in the auto world or I would rephrase it to Bosch has the potential to be the Intel of Automotive industry.

Bosch is world's largest auto-component manufacturer with more than 275 subsidiary companies spread across the globe.Bosch has a history dating back to 1886 when Robert Bosch founded the company which was known as Workshop for Precision Mechanics and Electrical Engineering.

The company came to India in 1951 as Motor Industries Company Ltd ( MICO) . The company established itself as a leader in spark-plugs . Infact MICO was almost generic to spark-plugs. At the not-so visible engineering industy, Bosch is famous of its motors, power tools, braking systems, etc.

Bosch India has operations in for verticals
Automobile components
Industrial technicals
Consumer goods and
Engineering and IT services.

In 2008 the company decided to rebrand its entire operations in India under the name Bosch .
Under this rebranding exercise , the company is currently running a heavy campaign across various media.

Watch the TVC here : Bosch

Before rebranding , MICO also invested heavily in building its brand presence across the country. Most of us are familiar with these names although we are not quite directly in touch with the products.

There are two markets for most of Bosch's products ( automotive) - Institutional and After market .

The institutional segment consists of the OEM segment where the consumers use Bosch products as a part of the standard equipment. The after market segment consists of the replacement of the worn-out products .

Bosch have a strong foundation in the OEM segment and has relationship with most of the major automotive companies in India. The brand was in news recently for collaboration with Tata Motors for the Nano project.
In the replacement market, the consumers leave the decision of spare parts to the workshops and the marketing is done through the distributors and dealers.

Bosch is a brand known for its engineering excellence and innovation. According to Superbrands.org, Bosch registers 2750 patents every year. The company is famous for its inventions like
Diesel fuel injection
Power tools
ABS
Bosch Traction control
Electronic stability program etc.

Infact the Bosch founder Robert Bosch was the first to introduce the eight hour work schedule long before it became a norm.

Another interesting fact about the company is that 92 % of Bosch is owned by a charity foundation and most of the profits are ploughed back to the company for growth and expansion. It is one of those rare private companies which are owned by a charitable foundation.

Bosch is a brand founded on innovation . The core brand value is innovation and engineering excellence. In 2004 , the brand acquired the tagline " Invented for Life " . The brand has lived up to its promise of innovation.

Another interesting fact which I discovered during my study on this brand was about Blaupunkt. Blaupunkt is a brand owned by Bosch ( I never knew that ! ). In 1929 Bosch launched the first car stereo radio system which created the way for the world famous Blaupunkt brand.

Bosch's branding initiative come under the ingredient branding. This is a special case of co-branding where we brand ingredients, components or parts which are contained within other branded products ( Kevin Lane Keller ) .

Although the current brand campaign by Bosch is driven by the rebranding exercise, I see an opportunity for Bosch to create an identity in the consumer's mind also. From my personal experience, my wiper for my car was not working properly and I changed it twice but still it shows problems. After seeing the ad, I am going to ask my mechanic to put Bosch wipers.

Although this may be a one-off case, it shows an opportunity for the brand in the after market. Battery marketers like Exide , Ameron etc had built the brand slowly using consumer targeted campaigns. Now consumers have started insisting on these battery brands.