Mahindra Voyager : RIP ( 1997-2000)

Brand : Mahindra Voyager

Company : Mahindra & Mahindra

Brand Analysis Count : #459

Voyager was an ambitious brand, aiming to create a new segment in the Indian automobile industry. But rather than creating a new category, the brand went down the history as a failed one.

Voyager was Mahindra's foray into the consumer vehicles segment. The brand was created in collaboration with Mitsubishi Motors .Voyager was launched in India in 1997 and lived a very short life of a little over two years.

Voyager was India's first and perhaps the last luxury Multi-Purpose family van. The brand was positioned as a luxury family carrier and Mahindra hoped that the association with Mitsubishi will give enough reason to charge a premium .

Voyager was based on Mitsubishi's 1968 L300 van. Although the L300 is still in the market, Voyager failed to survive.

The van (MPV) segment in India was and is still dominated by Maruti Omni. The segment was a stagnant one . Indian consumers were never thrilled by the concept of a family van. One of the reason was the poor marketing and product development in that segment. Although some families own Omni, the main users of the van was in the commercial segment. Compared to cars, the van seldom offered a comfortable ride and there were issues regarding A/C and safety. Many consumers buy van for the functional benefit .

Mahindra felt that there is an opportunity for a premium family van. And thus born Voyager.

To begin with, Voyager had the support of one of the leading global automobile brands of that time in Mitsubishi. Voyager had a powerful engine and large space . But Voyager put off the consumer in two aspects - Design and Price.

More than the design, it was the price that killed Voyager. The base version of the brand was priced at Rs 5.25 lakh which was more than the price of a decent sedan. The arrogant pricing virtually scared away the Indian consumers. The consumer was not willing to pay that much money for a non-A/c vehicle.

Second factor that put-off the consumer was the design. Voyager was too boxy and Indian consumers did not like that design. Having said that, we have seen vehicles like Qualis thriving in the market despite poor looks. But in the case of Voyager, it could not boast about the quality , value or brand name.

Another aspect was the service factor. Mahindra and Mitsubishi were brands that are new to consumer market and there was suspicion about the level of service and after-sales support for the product.

The brand campaign was also not able to impress the consumer.The campaigns of Voyager essentially talked about the space and luxury but couldn't find any meaningful differentiator that justified the premium pricing of the brand. Consumers viewed Voyager as a functional product and not as a luxury one and that prevented consumers from paying a premium .

Distressed by the response from the individuals, Voyager aggressively pursued the commercial segment and became popular ( to certain extent) as ambulance vehicle. That was a final nail in the coffin. Voyager suddenly was branded as an ambulance vehicle which further distanced the individuals from the brand.

Indian consumers only have one reference point for vans i.e Maruti Omni. Omni is a highly functional product and its pricing also reflects that aspect. Voyager failed because it could not break away from that functional association . Neither the product design nor the benefits forced the consumers to think differently about the product. Since Voyager looked and felt like a van, it should also be priced like the van ( Omni) could have been the justification of the consumer while rejecting the brand.

Brand Update : Toyota Innova

Innova which created the luxury MPV segment in 2005 has reinvented itself . This January , Toyota launched a refurbished version of Innova. The new Innova has a new front bumper and have a sporty look . The interiors have also been spruced up.

Since its launch in 2005, the brand had a dream run. According to domain-b website, Toyota has sold over 1,60,000 units since its launch. The brand have a market share of over 36 percent in the segment.
The brand virtually ruled the premium segment without much competition. The brand also had the exemplary Toyota quality which created a benchmark for future competition.

The relaunch of Innova is a pre-emptive strategy by Toyota because of the recent launch of Mahindra Xylo. Toyota knew that Xylo can be a dangerous competitor. The simple fact that Mahindra shook the SUV market with Scorpio makes it a worthy comeptitor for Toyota.

So as a market leader, Innova had to respond to competition. I am impressed with the speed in which Innova reacted to Xylo launch. According to reports, the MPV segment witnessed a degrowth in 2008. Mahindra is expected to bring consumer interest back to the segment. The pricing and the quality of Xylo is reported to be good enough to give Innova a tough year ahead.

The degrowth of MPV segment is due to the lazy marketing by Innova. Innova also became laid back last year in terms of promotions and product improvements. The brand shot into limelight through some classy adverting featuring Aamir Khan. Later Aamir was dropped and Innova went into silence. There was just one campaign for Innova in 2008.

Although the MPV segment have few intra-segment competition, they compete with other segments. Hence the high profile launches of premium cars in other segments will have its effect on Innova.
In my personal opinion , consumers in India evaluate products across segments while making a decision. So a consumer may look at Scorpio and Skoda together and then make a choice. Hence when all other brands are making noise, Innova lost many customers because of its laid-back promotions.

Xylo has really warmed up this brand and Innova has responded early to the competition. The brand does not have much issues on the product side but there is an issue in the promotional side. The brand really needs a heavy dose of promotions to retain its glory.

I am sure that Innova may be missing Aamir Khan......

Related brand

Innova

Toyota Qualis : RIP (2000-2004)

Brand : Qualis
Company : Toyota
Agency : Dentsu

Brand Analysis Count : 294

Qualis is a puzzling brand for most of the marketing students. The simple reason is that Toyota stopped the production of this brand when Qualis was having its highest market share in Indian market.
Qualis was launched in India in 2000. At that time itself the brand caught headlines because it was the first product of Toyota in India. Qualis was atleast two generation old when it was launched in India. Qualis is Indian version of Toyota Kijang from Indonesia. There were cases of globally dated models introduced in India biting the bullet like Peaugot 306 . So there were skeptics who forcasted doom for Qualis.
Those predicted failure for Qualis had real logical reasons. First, Qualis was a dated model. Indian consumers are aware of global trends and may not accept an outdated model . Second was the design of Qualis. Qualis was not good looking. Hence the chances of the brand's acceptance was perceived to be minimal .
But Qualis proved everyone wrong. For Toyota, Qualis was a brand launched to test the market. The brand was launched after careful market research and several consumer insights gave the company confidence to launch this product in the market.
Qualis was a utility vehicle. The brand was competing with the Tata Sumo which was the market leader in the nascent MPV segment.Sumo was a work horse and the product had its problem regarding lack of refinement and brand image. But there was a need for a refined, high quality multi-purpose vehicle.
MPV's are used by businessman and self employed and those who would like to take the entire family around. Sumo was more of a commercial vehicle rather than a family one. Sensing this gap, Qualis was launched as a family MPV.
Qualis was launched with much fanfare and the launch also saw some iconic advertising. The brand was launched with " Touch and Try" campaign which encouraged the customers to test drive the car. The brand initially focused on Space and comfort as the main differentiator. The sales soared once positive word of mouth about the comfort of the car began to circulate. Infact Qualis redifined the MPV segment in India. From rugged product to a refined car, consumers were educated to new levels of comfort.
But things were not rosy for Qaulis . Rather than the intended consumers, this brand began to attract taxi and tour operators. Qualis was selling like hotcakes as taxis. From the initial 9% market share , Qualis dethroned Sumo and was the market leader with over 40% share.
The brand tried to bring back the individual consumer through a series of campaigns and variants. The brand had the following taglines " Touch the perfection " and " Live the Qualis Life" . New luxurious variants were launched to attract businessman and individuals to buy this car. The TG for Qualis were businessman/self employed with an annual income between Rs 600,000- Rs 800,000 who travels atleast 40-50 Km per day. Qualis was known for Quality Durability and Reliability.
With MPV segment taking off, competition was getting hotter for Qualis. New launches from Chevrolet and Mahindra began hurting the market position of Qualis. More than Chevrolet, it was Scorpio that worried Toyota most. The company felt that the intended consumers ( individuals) were moving away from Qualis. Market research suggest that consumer needs are changing and Qualis did not fit into the consumer's schemes.
Toyota had the company policy that a model should have attained leadership position before phasing out. Qualis has attained its saturation point. So the company had the challenge of retaining the leadership position in the segment and also to expand the market. It wanted to get out of the " Taxi " tag. Another development was the famous Innovative International Multipurpose Vehicle Platform ( IMV) which was decided to be the base for all international products from Toyota.
In 2004, Toyota announced the phasing out of Qualis. Interestingly, the month where the phasing out was announced saw record sales for Qualis. Its difficult for a brand to succeed and even more difficult for a marketer to kill a successful brand. Qualis ' death was timely and paved way for a more successful Innova.
The natural question arises when a company decides to kill a brand is about the existing customers. For products which needs after sales support and spares, usually companies have a policy of supporting its phased out brand for over a decade. The existing customers may feel less worried if they are assured support by the company for a reasonable period.

Toyota Innova: Classic case of celebrity endorsement

Brand : Innova
Company : Toyota
Agency: Densucomm
Brand Analysis Count: 2


Toyota Innova is an interesting brand. Interesting because it redefined the MUV segment in India and also it replaced the famous Toyota Qualis . Innova was launched in 2005. It replaced the successful Qualis when the sales of Qualis was at its peak.

Toyota decided to replace Qualis because of two reasons. Qualis was a major success among the tour operator segment but was not popular at the individual/home segment. Second reason was the increased competition from Chevrelot Tavera which was perceived to be a more refined upmarket SUV.
Toyota also wanted to bring in the latest products in the Indian market. Qualis was only a test product. Further, Toyota wanted to appeal to the individual/home users rather than the commercial segment.

Innova is positioned as a luxury MPV. The brand has the latest technology and is refined to perfection. The brand has roped in Aamir Khan as the brand ambassador. Innova is positioned as a vehicle for all purposes . The brand uses the tagline " All you desire " and the ads are also catchy. The brand is priced at a premium and is targeting families which are SEC A A+ and large in size.

It is already a well debated issue whether celebrities should be used for endorsements. I am of the opinion that the brand should be the center of attraction and celebrity should support the brand and they should not steal the limelight.

Innova has effectively used the charisma of Aamir Khan to promote itself. Recent newspaper reports suggest that the advertisement has clicked.

Let us see why Toyota has used Aamir for its product. The latest advertisement of Corolla with Rahul Khanna suggests that Toyota is bugged by celebrity paranoia.

The basic positioning of Innova is as a getaway vehicle that is spacious, trendy and upmarket. Innova has tried to distance itself from the Qualis ,its successful predecessor which was popular as a Taxi .
So it was necessary that Innova be promoted as an upmarket car that can be associated with the successful. So Aamir make sense. The execution was perfect so was Aamir.

The pricing of Innova was also inline with the positioning with over 7+ variants and priced at a premium.
Toyota would like to see less Innova Taxis and more families owning Innova.The current ad will help them in realizing that objective.

Key words : Brand, Positioning, Marketing strategy, Indian Brands.

Revised on 26/5/08