Brand Update : Reid & Taylor in trouble

A brand which once made a mark in the Indian luxury men's wear ( worsted suit category) is now in deep trouble. Owing to a large amount of debt of the parent company SKNL, the brand is on the block for sale and the company is facing bankruptcy proceedings. 

Reid & Taylor is a Scottish brand which is reported to have a rich legacy of 180 years. However, a google search on the parent brand yielded no results. 

The brand which was launched in India in 1998 had a good run in the Indian market backed by high-power advertisement campaign featuring Amitabh Bachchan. The brand then went on to expansion too fast trying to cover the large Indian market primarily through exclusive brand outlets. 

One of the mistakes that the brand made was to chase volume when the product is an expensive one. This strategy contradicts itself since volume game cannot be played in the luxury segment. So when you want to expand in the market through exclusive outlets, the company need to ensure that the franchisee will get the return either through high margin or high turnover. In the case of Reid & Taylor, the high cost of expansion from the parent company created a cash crunch which impacted the promotion which in turn affected the sales. 

Now the situation is such that SKNL case is pending with the NCLT and there are several suitors interested in taking over this once-famous brand. 

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Reid & Taylor - Bond with the Best

Maruti Estilo : RIP ( 2009-2013)

Finally  Estilo is dead. From a sub-brand ( Zen Estilo) to an independent brand and finally to a dead brand, Estilo never had a good run in the Indian market primarily because it tried to step into the iconic place of its predecessor- Maruti Zen.

The fault was not  with the product but with the messy brand experiments and the lack of giving proper positioning of Estilo. The primary error was made when Maruti decided to brand the new car  which replaced Zen as Zen Estilo. While the intention was to keep the Zen brand alive, the main issue was that the new product did not share any commonalities with the outgoing Zen. That created unwanted dissonance in those who expected the same peppy personality of the original Zen.

To be fair to Estilo, the car was spacious and good. But Maruti never was able to give a space for Estilo in its crowded product portfolio. It was to fill the gap between Alto and Wagon- R but was not able to quite do it effectively. Consumers viewed it as a compromise primarily because of the perception. Maruti was also not keen of giving any sort of promotional push to the brand neither was any thought on the positioning of Estilo. 

So when there was an option , consumers stopped looking at Estilo as an option. 

With the death of Estilo, the legacy of Zen has completely ended.

Related Post

Zen RIP ( 1993-2009)

Fiat : It is the Service, Stupid !

Corporate Brand : Fiat
Brand Analysis Count : 525

World's 7th largest automotive company, a company that markets iconic brands like Ferrari , a company whose diesel engine powers the best selling hatchback ( marketed by a competitor) is having a market share of ~0.3 % share in World's 5th largest automobile market. Isn't it ironic !

Fiat had so far three avatars  in the Indian market. In its first avatar , the company licensed its product to an Indian company Premier Automobile Ltd. Premier sold these cars under the brand name Premier Padmini and Premier 118 NE. That was in the early 1990s.

In the next avataar, Fiat came to India as Fiat India Automobile ltd ( FIAL) in 1997 . During those times, the company launched Fiat Uno in India. The product although  had a dream launch with over 30,000 booking , the dream went sour since Fiat's partner PAL couldn't deliver the orders. The lack of delivery created a backlash from the customer. 

Besides once the product was in the market, there was a feeling that Fiat bought an outdated model to India.

In 1997, Fiat formed a JV with Tata Motors to jointly manufacture and distribute cars in India. Under the JV, Tata Motors would allow Fiat to use its dealers for selling the Fiat models. The Fiat engines were inturn used in Tata Motors models like Indica, Manza etc.

Fiat launched Palio during these times. Palio initially gained lot of customer attention. The brand was endorsed by Sachin Tendulkar. The car earned a reputation for being a very sturdy car with a good engine. During this time a sedan brand Sienna was also launched. But yet again, Fiat was not able to build on the momentum generated by the initial launch of these cars. 

In the  early 2010, the company launched two modern models Fiat Punto and Fiat Linea. These cars had drop-dead gorgeous looks and like any other Fiat launches, gained lot of customer interest but again the take -off in sales never happened. 

In 2012, the Tata Motors -Fiat JV collapsed. According to newsreports, Fiat is now on its solo life in India and has incorporated Fiat Group Automobiles India Pvt Ltd as a fully owned subsidiary . 

It is interesting to note that India's best selling car brands run on Fiat's engines. The best sellers like Maruti Swift , Dzire, Indica, Manza all run on Fiat engines but how come Fiat is not able to produce a best-seller. 

Only one reason- commitment. Fiat so far was trying to avoid committing itself to Indian market. It never had a serious intention to build itself in the Indian market. When companies like Ford, Tata Motors, Maruti etc had took pains to establish dealerships and service centres all across the country, Fiat opted to take a short-cut by roping in partners who never delivered. 

Service is a very big component in the decision making process of a car buyer. Its common sense that Indian consumers who typically kept a car for more than five years ( earlier even 15 years) look for a trusted brand who offered good service back-up. That is why despite all short-comings, Maruti still rules the Indian market with more than 60% share
Fiat's biggest mistake was its lack of service support for the consumers. It had all the time to build a robust network atleast in the key markets. But rather than that Fiat outsourced a very critical component of a automobile brand's building block.
Fiat had realised this and is now building its own channels and it is not easy. Concurrently, the brand is trying to build its trust back through campaigns pitching its two models Punto and Linea.
Watch the ad here ; Fiat Corporate campaign
Fiat has taken the slogan " Make the Move" urging consumers to take the leap of faith and buy a Punto or a Linea. But Faith needs to be built in the mind of the consumers through actions and ads only serves to reinforce the faith.

Fiat, due to its lack of commitment  , was never in the choice list in the buying process of an average Indian consumer. The typical reaction was " the car is good but I am worried about service ". It takes lot of time and effort to change that. 

Brand Update : Honda Jazz RIP ( 2009-2013)

According to news-reports  Honda has decided to put curtains to their premium hatchback Honda Jazz. Honda Jazz launched in 2009 was the most expensive petrol hatchback available in the Indian market. The brand was priced in the range of Rs 8- 9 Lakh which was at par with lot of mid-segment sedans.

Although the brand had impeccable Honda Quality, the aggressive pricing made consumers give a luke-warm response to this brand. Only the hard-core Honda fans who wanted exclusivity opted for Jazz.

In 2011, Honda decided to rationalize the pricing of Jazz and reduced the price by almost Rs 1.5 lakh. Despite the price -drop, Jazz was quite expensive and the move was little too late. 

The shifting of Indian consumers to diesel cars coupled with new launches and offers from quality brands made Jazz less relevant to Indian consumer. The diesel-focused Indian car market has been giving lot of problems for  Honda . 2013  will see Honda entering the diesel car market with its Amaze brand. Honda is also rejigging its product offering and Jazz did not fit into the new plans. Although reports suggest a relaunch of Jazz in 2014, the brand is now dead for all practical purpose.

Things would have been different if diesel and petrol prices were the same in India. Had it been like that  Jazz would have found some takers . But the huge price differential between diesel and petrol is giving nightmares to companies like Honda who was late in developing diesel engines for India.  I thought that Jazz would come with the diesel version once Amaze is launched but surprisingly Honda decided to kill this brand and concentrate on the new launch.

Jazz is a lesson for marketers who in their aggression turn a blind eye towards value. Brands should first convince the customers about the value  it offers and then take pride in that. But being aggressive just because there is a well respected brand name is a big mistake. 

Related Brand

Honda Jazz

Brand Update : RIP Tata Tion ( 2009-2011)

Tata Tion- the non-carbonated beverage drink from Tata Beverages has bite the dust. The brand which was derived from tea extracts and the differentiator was the presence of Ginseng which gave the drink a healthy proposition was discontinued merely after one year of existence . 

Although the product had good intentions, consumers gave it a lukewarm reception. Two factors may have affected the life of the brand a) Taste b) Price . Tion's taste may have acted as a big downer and it never appealed to the masses. Second factor is the price. Tion was very expensive and even though Tata launched a smaller SKU, the quantity was never enough to quench the thirst. That was also the first impression when I tried out the brand. 

Another issue was the segmentation. Tion was not able to clearly focus on its TG. Who would actually buy a product like Tion ? Tion infact tried to cater to every one hence the brand positioned itself very loosely. The tagline " Why Let Go " is a result of such a unfocused positioning. The brand at best would appeal to the set of consumers who wanted a healthier alternative to softdrinks and that is definitely not youngsters.

Tion was bit too early in targeting the mass using the health proposition. Although many experts harp on the trend towards healthy foods, the idea is still in the utopian stage and has not translated into purchases . 

Related Brand 

Tata Tion - Why Let Go

Mahindra Stallio : RIP (2010-2011)

Brand : Stallio
Company : Mahindra 2 wheelers

Brand Analysis Count :  #513

Question : What else do you want for a  perfect product launch when there is a reputed Corporate Brand, Aamir Khan and a decent campaign ?

 Ans : A good product !

Mahindra Stallio is a sad story of a perfect plan foiled by a poorly built product. Mahindra Group was very vocal in its plan to enter into the Indian two wheeler market. It surprised the industry by acquiring the ailing Kinetic Motors' two wheeler division. The company  followed it up with the successful launch of automatic scooters Duro and Rodeo. Then came the much anticipated entry into the bike segment.

Rather than launching a macho, performance bike to impress the technological prowess of the company, Mahindra chose to enter the much crowded and highly competitive commuter bike segment. The first product in the bike segment was the 106 cc Mahindra Stallio. 

Stallio had a dream launch. The PR team of the company had built in enough suspense in the market. The entire automotive industry was looking for something similar to a Scorpio that will shake up the established brands like Splendor and Pulsar. Then Stallio happened. The brand instantly gained eyeballs through the endorsement of Aamir Khan. Aamir Khan's endorsement was a master marketing move. The actor had huge equity in the market and his endorsement of a two wheeler was something no one anticipated.

Stallio put on an aggressive face in the market with a cheeky campaign pitting against all those macho bike brands which advertised with more hyperbole than a Bollywood movie.
Watch the launch campaign : Mahindra Stallio1 
                                            Mahindra Stallio 2
Stallio was positioned as a commuter bike that combined style and performance. At a price around Rs 45000, the brand promised enough features and quality and was aiming to compete with the segment leader Hero Honda Spendour.

The brand sold more than 5000 units in two months time, then the problem started. The brand had serious issues in the clutch and gear box. Noticing this issue, the company stopped producing the product and the brand was withdrawn from the market. For a marketer, it is a nightmare come true. The issue was not a product recall but a complete withdrawal from the market. 

It has been more than 8 months since the product withdrawal and the company is still not able to relaunch the brand in the market. It is highly intriguing of the fact that a company like Mahindra would land in a product quality issue of this scale. 

As of now, Stallio is almost dead and it will be difficult for the company to revive the brand since it failed at the launch itself. Renewing the brand and regaining the lost trust will be Herculean task. Aamir Khan also lost his bike endorsing credibility and if he comes again to endorse Stallio, I wonder how the consumers will react. If Mahindra relaunches Stallio, it will be easy for the competitors to kill the brand by refreshing the past failure memories. How ever, Mahindra did  a good job in swiftly taking the brand out of the market thereby limiting the PR damage. Also the media has been benevolent about the failure with limited coverage on the debacle.

Brand Update : Advance RIP wishes for "Only Vimal"

In a rather sad news for brand lovers, Reliance Industries has decided to sell off their textile business including their iconic brand " Vimal ". The brand which once had an iconic status now is on the verge of extinction.Vimal was also one of the few consumer brands of India's largest private sector company Reliance. 

The future of this brand will be decided by the new brand owners. Although its is premature to write RIP for the brand, its sad that Reliance chose to sell of the brand despite the fact that the company is rich with cash and could have revived the brand anytime.

The brand which  marked the arrival of the advertising agency Mudra will be known for some classic advertisement campaigns featuring brand ambassadors like Allan Border and Vivian Richards.The writing was on the wall for some years. There was virtually no investment in building this brand in the last decade except for some random campaigns. The move is a part of Reliance strategy of exiting loss making business and focus on new sunrise sectors. 

The brand has failed because of negligence on the part of the owners who lost interest in building the business nor the brand. 

Lets hope that the new brand owners will try reviving this brand . Till then RIP Vimal ( 1980-2012)

Related Brand

Only Vimal

Brand Update : RIP Tata Indicom ( 2006-2011)

Tata Indicom is dead. The CDMA brand from Tata Teleservices is going to be integrated ( migrated / replaced/exorcised) to Tata Docomo. According to various newsreports, the Indicom brand will be killed and the entire mobile telephony and related services will be brought under the Tata Docomo brand. 

By bringing the entire services under a common brand, Tata Teleservices will be able to reduce the marketing costs and avoid brand confusion. 

But a dead brand is a dead brand. For me every dead brand is a failed brand. 

The new move also marks the larger role played by NTT Docomo in the mobile services JV with the Tata. The branding to Tata Docomo shows the prominence of DoCoMo brand which is the primary brand and Tata brand name is being used as an endorser brand. 

Tata Indicom as a brand was not able to create any strong image in the consumer mindspace. The poor quality ads and confused positioning put the brand way behind aggressive competitors like Vodafone, Idea and Airtel. But compared to Tata Indicom , DoCoMo is an aggressive brand and the promotions are clutter-breaking. By bringing all services under a single brand especially in a low-margin, highly competitive market like cellular services make immense business sense. 

CDMA services also did not quite clicked in the Indian market and consumers were not convinced about the technological supremacy of CDMA over GSM. Now that Tata Teleservices got a foothold over the GSM services through the Docomo JV, the relevance of Tata Indicom's CDMA services has diminished considerably. I wouldn't be surprised if the entire CDMA services will be put in the backburner by Tata Teleservices. 

RIP Tata Indicom ..

Related Brand

Tata Indicom

Brand Update : RIP Sparsh (2006-2008)

Sparsh which was expected to give a tough competition to Johnson & Johnson is history. Infact the brand was dead within a year of its launch. The brand was silently put to rest by Marico and there is no mention of the brand in the company website.

Sparsh was a serious foray by Marico in the baby personal care segment. The segment is hugely attractive with a major disadvantage - which is the presence of Johnson & Johnson. And it is really amazing to see that the brand equity of J&J is such a powerful entry barrier that even the best of FMCG marketers cannot break the stronghold of J&J in the segment.
Marico is not an ordinary player. The company had proven its marketing acumen with its successful brand portfolio. But in the case of Sparsh, the company had to beat a retreat. And beating a retreat in the baby segment market is one of the biggest mistake that  a brand can make.By withdrawing, the brand is breaking the trust factor which is very vital in surviving in this segment.

Sparsh could not survive because mothers preferred to be loyal to J&J because of the trust that J&J brand had with the consumers. It is not easy for a new brand to break that bonding. Wipro tried with its Baby Soft but was not successful. Now Sparsh bite the dust fighting the giant. 

So is it not possible to fight a giant like J&J ?. Theoretically it is possible. But it takes long years and millions of cash to be the profitable No.2 in the market . Not many companies were willing to burn that much cash. Although Sparsh is now dead, there are reports of a possible rejuvenation of the brand. It would have been wise if the brand fought really hard and stayed put in the market rather than surrender meekly within a year of launch.

Related Brand
Sparsh

Ruf N Tuf : Struggling to Survive

Brand : Ruf N Tuf
Company : Arvind Mills

Brand Analysis Count : # 488

Ruf N Tuf  was an innovative brand which virtually revolutionized the Indian jeans market. It was also a brand which ultimately failed to capitalize on the tremendous growth that it created. Born in 1995, Ruf N Tuf was India's first Ready To Stitch jeans brand. Ruf N Tuf along with Newport Jeans virtually made the jeans category penetrate into the semi-urban and rural markets.

During the 90's jeans gained much prominence in the urban markets. Although there were enough room for all the players in the market, Arvind mills felt the need to expand the market by targeting the rural/semi urban market. The strategy was partly driven by the increased competition from the urban market by well known global labels.

Ruf N Tuf was a brilliant idea. The concept was to sell the ready-to-stitch jeans to the consumers who were not accustomed to buying readymade clothes. The ready-to-stitch brand was very affordable and broke the price barrier for this category. Jeans were no longer an aspirational product but became affordable to a larger section of the market.

The idea of ready to stitch jeans caught the attention of the consumers. The brand was highly successful in the initial phase of the lifecycle. Consumers liked the very relevant brand name and the price was the real game changer. For 299 one was able to afford a good quality jeans when the average prices of readymade brands was over Rs 700. The brand had the Bollywood Action Hero Akshay Kumar as the brand ambassador for Ruf N Tuf. These tactics made the sales of the brand soar during the initial phase of the brand's life.

The successful run of Ruf N Tuf did not last long. The brand faced significant problems from counterfeits which merely copied the brand elements and fooled the consumers. Ruf N Tuf tried to manage the counterfeits by embossing log on the jeans pocket but these measures found little success.
The brand then began to face another issue which is directly linked with its product performance. The idea behind Ruf N Tuf's business model is that the tailor will stitch the jeans in a way that is comparable with the readymade ones. That assumption proved wrong. Consumers began to feel that the tailors were not able to bring the finishing in a perfect manner compared to readymades. The local brand made use of this weakness by launching low quality jeans with good stitching and competitive price. This strategy of local brands virtually killed the market of Ruf N Tuf.

To counter the onslaught from local readymade brands, Ruf N Tuf reduced the quality of the product and tried to compete on price. That strategy too failed to click in the market. Since the market of Ruf N Tuf was highly price sensitive, the local brands took advantage of the weakness of Ruf N Tuf. The presence of Newport and Ruf N Tuf  started creating problems in the company's product line. These brands began to cannibalize each other despite having different distribution channels.

These issues created huge inventory issues for Arvind Mills during the early 2000 forcing the company to put Ruf N Tuf in the freezer. The brand was on the verge of being killed. In 2004, the company decided to rejuvenate the brand by associating with Big Bazaar. According to the arrangement, the brand will be available only through Big Bazaar. Thus Ruf N Tuf virtually became a private label ( not theoretically ).

The story of Ruf N Tuf provides some insights to the difficult task of marketing. The consumers loved the idea of a ready-to-stitch jeans  and the low price. But they are not ready to compromise on quality and fit. And the business model of Ruf N Tuf had no control on the tailor who made the final product. Hence the brand was not able to control the complete experience to the consumer which ultimately lead to the demise of the brand.

The next question is that if the ordinary shirtings and suitings can thrive then why not Ruf N Tuf ?  I think its because of the points of parity . Ruf N Tuf's point of parity was established with readymade Jeans and not textiles. Hence the consumers expected Ruf N Tuf to be having the same stitching quality as the readymade jeans.Hence the comparison with readymade jeans is inevitable.I think the brand could have carved a better market if it had established parity with denim clothing rather than readymade jeans.
The current strategy of associating with Big Bazaar ensures the survival of the brand. Through the extensive chain of stores, the brand rightly ensures that it reaches its desired TG through Big Bazaar. Big Bazaar offers instant reach to the bargain hunters and price conscious consumers. In that sense, the brand has struck on a workable strategy. Having said that , from a mainstream brand to a private label ( somewhat) it is a fall from grace. The solace is that the brand is still alive.

Koutons : 50% + 40% Off

Brand : Koutons
Company : Koutons Retail India Ltd

Brand Analysis Count : # 483

Koutons is a brand story which has gone sour. This 1000 crore corporate brand is now facing the worst period of its existence- facing mounting debt and bad press regarding the financial position and the stock price moving southward. 

Koutons , the brand owned by Koutons Retail India Ltd was born in 1991. The original name of the company was Charlie Creations which was later rechristened as Koutons. Koutons is both the corporate brand and an individual brand . The company has a range of readymades with the brand name Koutons. Along with it , the company also has other brands of clothings like Charlie Outlaw, Le Femme etc. The current post focuses more on the individual brand.

Koutons Retail is a classic entrepreneurial story. The company was founded by Mr. DPS Kohli. Mr Kohli and his family owned a television manufacturing business which was destroyed during a riot. Mr. Kohli  had to suffer huge financial losses from that even and had to work as an insurance surveyor for long . Later he ventured into the retail textile business.

Koutons grew really fast. The company became India's largest retail apparel chain in a span of 10 years . In 2009, the company had around 1400 Exclusive Brand Outlets (EBO) making it the largest apparel chain. The company had a turnover of around Rs 1000 crore in 2008-2009.

Koutons was a brand built on a very unique strategy - deep discounting. Deep discounting is a pricing strategy where the brand offers huge  ( often mind-blowing) discounts on an unusually high MRP ( Maximum Retail Price) . So the consumers are attracted towards the product seeing the huge discounts which are actually not a discount ( in pure sense). 

Koutons has a popular discount scheme  known as 50% + 40 % off. So there is a 50% off on the MRP and then another 40% off on the discounted price. So  the consumers obviously are delighted to get a shirt with an MRP of Rs 1500 for as low as Rs 450. Another very successful offer was " Buy 4 garments for the price of One ". Seeing this unbelievable offers , consumers flock into the showrooms and buy what ever that is available .

Along with the deep discounting strategy, the brand also invested some money in the brand building.Koutons has the tagline " The way ahead, always " . It had campaigns featuring foreign models and usually the showrooms are located in upmarket malls thus giving the impression that Koutons are a premium brand.  But frankly no one really knows whether Koutons really sells a shirt for Rs 1500. 

But nobody was complaining because consumers got a feeling to getting a good bargain and that is what matters. So this model worked well for the firm for more that 20 years. As usual, 20 years is pretty long time for consumers to learn the discounting model. The sales started drying up and the cost and inventory started building up. More discounts followed and revenues started sliding. The company landed itself into a financial trouble. ( source).

The brand really was able to tap the " value for money " psyche of the Indian consumer. Indian consumers like a good bargain and for long years, the firm was able to capture profit out of it. But the popularity of other discount outlets of established brands and the quality issues of Koutons paved the way for the downside for the brand. According to some newsreports, the company faced the issue of inventory mis-estimates and huge debts. 

I also have bought the brand believing that I got a good bargain later found that I was a victim of a very clever marketing strategy. Often some students ask me whether Koutons will lose its brand equity if it gives discounts like that, assuming that they sell the product at MRP atleast in some outlets. In the case of Koutons, they sell by these discounts.

In the deep discounting model, the brand is secondary. What matters is the  attractiveness of discounts and high media spents announcing the discounts. It is not the brand that pulls the customers but the perceived bargain. Ofcourse the consumers should feel that the brand is aspirational . So it is a kind of a very risky , clever strategy. Project aspirational image and use discounts to pull the consumer in.

Koutons as a company is in financial trouble and the fate of the brand depends on how the company survives the crisis. The deep discounting model will work in a market like India as long as the firm is able to project the aspirational image. It lacks the glamour of brand-building but may work for short-term. In the long term such deep discounting will eventually kill the brand. 

Brand Update : Barclaycard RIP ( 2008-2011 ?)

According to newspaper reports, the Barclay's Corporate which runs the credit card business has decided to put Barclaycard on the block. The report further suggest that Barclays is going to scale down its retail operations owing to the bad debts accumulated during recession. The unofficial number of creditcards of Barclays is put at 2.4 Million.

Barclaycard was launched with much fanfare. The brand offered several differentiators which was later matched by other players. The company was in the dilemma of choosing between high risk Vs growth. Finally it decided to sell of the credit-card business and concentrate on other banking domains. 

Credit card brands are a confused lot. On one hand they want the users to splurge  and on the other hand, they worry about bad debts. Greed makes these brands charge exorbitant charges which adds to bad debts. It is a vicious cycle.

Having said that, Barclays had a reasonably good business albeit small in market size. That may bring in some suitors who wanted to scale up their business. Barclaycard failed because the brand lacked the distribution reach which is essential to scale up. The recession add to its voes for fear of accumulating bad debts.

Anyways another brand is going to die. RIP

Related Brand

Barclaycard

News reports

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

Fryums : Eat Smart

Brand : Fryums

Company : TTK

Brand Analysis Count : 466

Fryums is a very interesting brand. Infact how many of us know that it is a brand ? Recently when two of my students visited my home, my wife served them a bowl of Fryums which invoked a sense of nostalgia and we discussed about this Indian snack which failed to fight the invasion of Lays.

Fryums was launched by TTK in 1990. This ready-to-cook Indian snack quickly gained popularity in the Indian market . The brand became so popular that soon consumers began to use the brand name as the generic name for such snacks.

Sometimes too much popularity can be bad for the brand. When brand names become generic, marketers should worry because there is a chance that they will lose the brand. The same happened with Fryums. Consumers started to refer to Fryums as a generic name for all such ready-to-fry snacks. Soon competitors also started using the term Fryums in their packs.

When consumers started using Fryums as generic name, retailers too made use of that opportunity to push the similar product that offered better margins. Soon Fryums became more of a commodity than a differentiated , protected brand.

Along with this unique problem came the competition from Lays. Fryums was not able to counter the competition from Lays. Lays were more up-market, aspirational, convenience and had more perceived quality than Fryums. The fact that one needs to fry this product in oil before use also made it less appealing to the younger generation .

From a generic brand , Fryums fell into oblivion. The brand soon went off the shelves or became one among the many " Fryums " at the stores. The company also was clueless about the future of this ' famous' brand.

However in 2000-2001, the brand went in for a makeover. Fryums was rebranded as Fryums Yummies and the brand had a new logo and even a mascot. In the new avataar, TTK tried to rev up the brand's fortune by launching it in new flavors and also in new product forms. But even this rebranding did not work in the favor of Fryums. The problem was that the brand did not have enough steam to fight the competitors.

Fryums 's issues highlight the need for marketers to fiercely protect their brands from becoming generic. The brand should pursue and protect itself from being used as a verb or as a category identifier. Once the brand become generic, there are chances that legally it cannot be protected by the owners. This fate happened with the likes of Aspirin.

There is future ahead for Fryums. The brand needs to reinvent itself and position itself as a healthy alternative to existing snackfoods. The brand is cholesterol free and contains no MSG or trans fats. The new flavors + new brand campaign can raise the interest about this Indian snackfood in the market.

Brand Update : Can Ambassador be saved ?

Recently the good old Ambassador was in the news that the brand owners - Hindustan Motors is planning to relaunch /rejuvenate this heritage brand. Both the brand and company is in deep crisis with HM posting losses of Rs 43 crore last year and its networth declining by about 50%.

The company plans to relaunch the Amby in a new look and is planning to entrust a design house with the task. The report also suggest that the new Amby will have a retro- look and will be in the price range of Rs 5- Rs 7 Lakhs. The new Amby will be a niche product.

The interesting question is can this brand be saved with the new strategy ?

From the report about the new Amby launch, it will be tough for the brand to regain its lost glory if the brand is going for a niche variant. According to Economic Times, Ambassador sells around 600 units per month in a market of 2 lakh cars/month.

Ambassador is now in a rut which is its own creation. The brand is the classic example of marketing myopia. The company took the customers for granted and refused to change when the entire market changed. The brand did nothing when faced with competition from Tatas and Maruti. Instead of changing its core DNA, the brand relied upon cosmetic changes. When the brand needed a drastic revolutionary change, HM decided to get stuck with the old product.

The current strategy of a niche Amby is again a patch-up . This brand cannot survive on patch-up strategies. I don't think that the core brand Ambassador will revive with the launch of a niche high priced Ambassador. With the brand equity in shambles, how can the brand expect consumers to pay a premium for the new Amby variant ?

The high priced Marquee variant will work for iconic brand which are facing a decline. But Ambassador was not an icon. It was a market leader and consumers bought the car because they did not had a choice. Not because they were a die-hard Amby fan. Hence a high priced niche variant may not revive the sale of Ambassador.

Secondly HM as a company is now relying its future on Ambassador which again is a flawed strategy. A weak brand cannot save a weak company. And a niche variant will at best give some life support and not survival.

Another way to look at the current strategy is the transformation of Amby from a mass market car to a niche product. So instead of trying to sell large volume of Ambassador, the company hopes to sell high-end variant and hence generate more cash. In that perspective, the launch of a high priced Amby make sense. But the question is whether the brand has enough equity to support such a variant. Brands like Beetle and Enfield revived because these brands had strong equity existing in the market even after its previous life. The relaunch re-ignited the existing goodwill . But such a goodwill does not exist for Ambassador. Ambassador is known for its space and rugged nature .The product is also infamous for nagging problems and poor build quality. Still people bought because there was no choice. For such a product, the hope of renewal from a niche product seems too optimistic.

Having said that, Indian market has seen consumers embracing products with exceptional quality and/or utility. So if the new variant is exceptional, there are chances of getting accepted by the market.

Another interesting aspect of this issue is about the reliance of HM on Ambassador brand for its survival. Why didn't it think about an entirely new brand ? The trend in the Indian auto market is that multiple brands from different companies sporting the same engine. The engine becoming commoditized and design gaining prominence. In such a market why not come out with an entirely new brand with a proven engine ? Although building new brand is expensive compared to rejuvenation of old brand, in Amby's case, Ambassador comes with a lot of baggage and perceptions which is difficult to change.

If Ambassador wants to stay relevant as a brand, what it need is disruption. Disruption should happen both internally and externally. The brand should go for radical redesign and more importantly it should disrupt the market. The current price to value proposition of Ambassador is negative compared to the competitors like Indica . So if Amby wants to play the volume game, it needs to offer consumer something they cannot refuse. A diesel car below Rs 4 lakh can ignite interest in the brand but given the cost scenario, such a task is virtually impossible.

HM is again going for short-term strategy in pursuit of long-term results. For Amby, it seems to be the end of road .

Related Brand

Ambassador

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 : Bajaj XCD RIP ( 2007-2010)

According to Economic Times, Bajaj has stopped the production of XCD 125 and XCD 135. The brand which was touted to give Hero Honda Splendour a run for money has become a part of history. In my analysis of the brand, I had opined about the positioning problem faced by XCD.

I feel that the brand established wrong sets of parity with Pulsar and the total confusion resulting in the focus on the cubic capacity rather than the brand benefits resulted in the death of this brand. Bajaj later diluted the core positioning of the brand by launching a 125 version of Platina which again cannibalized XCD.

The list of failed brands in the Bajaj's portfolio is increasing every year. The ET article also cites the imminent death of Platina in the future.

I cannot understand where Bajaj Auto is running so fast. The company in a race to overtake Hero Honda in volume sales is killing itself. The rapid launch of new products and product failures are going to hurt the company in future. Now will an XCD/Caliber/Wind customer try their hand on any new Bajaj two wheelers ? How will we ever know when company will stop producing that brand.

XCD could have survived if the company gave time for the brand to settle down, rectified its flaws and invested in the brand. Out of the 2 years that the brand had, the investment on the brand may have stopped after one year.

Bajaj is still putting lot of stake in anchoring their products on the CC( Cubic capacity). My personal opinion is that for a customer CC is irrelevant. They will buy good products and not CC. Too much focus on CC has created lot of problems for Bajaj two wheeler brands.

Related Brand
Bajaj XCD

Brand Update : Getz RIP (2004-2010)

Another brand is going to be laid to rest. According to news reports, Hyundai has decided to phase out Getz with in two months. The brand is already offered at steep discounts in dealerships across the country.

Getz was the first luxury hatch back to be launched in India. The brand in a way was far ahead of its time. It was launched in a market predominantly oriented towards sedans. The failure of Getz was because of two reasons :

a. Value Proposition

b. Positioning

c.Competition.

The failure of Getz and success of Swift are two sides of the same coin. Both brands belong to the same segment and almost in the same price band. But while Swift rocked the market, Getz had to bite the dust.

Getz when launched in the market was very aggressively priced. Infact the brand was priced at par with sedans like Ford Ikon and Indigo. Indian consumers were not able to understand the value proposition of a high priced Getz. The brand also was not able to tell the consumer as to why they should chose Getz compared to a Sedan. The problem with such a high pricing strategy is that it creates an impression in the consumer's mind which will be difficult to change. Theoretically this is called narrow positioning.

When Maruti launched Swift, Getz suffered because consumers perceived Swift to be a better value for money car compared to Getz. The reason is that consumers know that Maruti cars are less costly to maintain than Hyundai cars. Swift was bigger, sporty and competitively priced which put Getz in a very tough situation.

The campaigns for Getz was also way off the mark. The brand never had a clear positioning . When it was launched, there was no USP or differentiation. The brand started talking about fun then moved to space. So it lacked a clear brand identity which further accelerated the decline .

In marketing terms, we say that brand should offer some compelling reasons to customers to buy. Getz was not able to give any such compelling reasons. The brand had lot of design similarity with Zen which defied its pitch on premiumness. Swift had a radical design which created a newness to the brand.Getz did not have such a "wow" factor.

The recent launch of Hyundai i20 was the final nail in the coffin for Getz. i20 has more chance of survival because the segment of premium hatchback has now developed. Consumers are now aware of this segment and there is genuine consumer interest in this segment.

Getz could have reaped the benefit of the segment it had created , had it offered itself at the price range of Rs 3.5 - 4 lakh. ( I know it is easy to sit in my chair and suggest the pricing strategies). That price range could have done wonders for this brand.

Related Brand

Getz

Brand Update : World Space RIP ( 2001-2009)

Another brand is dead. World Space satellite radio service is set to shut shop in India on the New Year eve. The brand which brought in the country's first satellite radio will officially laid to rest on that day.

The brand which came to India in 2001 was supposed to create ripples in the Indian entertainment market ( atleast I thought so). The brand was launched in India with a preposterous pricing soon realized that India needs a new set of marketing mixes if it wanted to succeed . In 2005, the brand came back with a reasonable price-value proposition. The new pricing helped the brand to earn large number of subscribers to the tune of 4.5 lakh customers who was willing to pay about Rs 1800 per year for music. This is no small feat because in India, it was unheard of a practice to pay for a radio service. The brand also got a boost with the tie-up with Airtel digital TV network. According to reports, World Space India contributed 90% of the subscriber base of its parent.

But luck was not in favor for World Space. In 2009, the parent company World Space USA filed for bankruptcy protection . That was the beginning of the end for World Space India. There was talks about a possible sell off but that too did not materialize.

The failure of World Space India was largely contributed by the bankruptcy of its parent but there are lessons to be learned from the mistakes of the Indian arm also. The first mistake was done during the initial launch when World Space charged exorbitant prices for its receiver as well as the service. The Indian consumers quickly rejected this aggression. The company did not correct this mistake for two years and when they corrected it, already a perception was created in the mind of the consumers about the service being expensive.
The second mistake was regarding the pricing of the receiver. World Space should have concentrated more on selling subscriptions rather than the receiver . It could have come out with receivers with rock bottom prices ( Say below Rs 1000) and aggressively sold subscriptions. Remember mobile services became popular largely because of the low cost handsets . Had the handsets cost more than Rs 5000, the penetration could have been much lower.

The third mistake was the business model. Although the brand did right in the advertising front by roping in the brand ambassador AR Rahman, the field level promotion was hopeless. This product could have done well with a direct marketing approach. But the channel partners of World Space did not bothered to aggressively push the product. They were all waiting for the consumers to make the first contact. The ideal strategy could have to set a subscription target of say 1 million customers and once you have it, then try to upsell premium subscriptions to them.

I don't think that the brand could have still survived if it had followed the above said strategies. Indian market still has not open to the concept of a Pay- Radio. The brand was in the wrong place at the wrong time...

Related Post
World Space

Brand Update : Bajaj Kristal RIP ( 2007-2010)

Bajaj recently announced its exit from the scooter market. This announcement also marked the death of the last scooter brand from Bajaj -- Bajaj Kristal. Kristal was launched in 2007 was aimed at capturing the scooterette market dominated by TVS Scooty.

The failure of Kristal was a marketing failure. The firm failed to launch a product that was well differentiated and offered value to the customer. I had written about the stiff pricing of Kristal which may have caused the pathetic response from the customers. Kristal was a half-hearted attempt which was visible in the way this brand was promoted. After the initial promotions, there was no voice for the brand. It was a brand crafted for failure.

Interestingly ,the announcement of Bajaj's exit from scooter market evoked lot of media attention. Channels devoted lot of prime-time discussing the Hamara Bajaj campaign and the death of icons. There was a lot of emotional brouhaha which was totally unnecessary because the exit from the market is a pure business decision. Although the top management of Bajaj was finding it difficult to explain the reasons for the exit, one should understand that Bajaj feels that scooters does not fit into their business model and decided to exit. Nothing more , Nothing less.

The fact remains that Bajaj was not able to either understand the consumer expectations in the scooter segment and develop appropriate product which is a setback to the company's image. The fact that new players like Mahindra scooters are entering the scooter segment adds to the insult and injury to the Bajaj brand.

Even in the case of motorcycles, Bajaj is not having a wonderful time. It had shown a spark of brilliance when Pulsar was introduced, but even after 9 years, Bajaj could not come out with another brand like Pulsar. What it is doing is to milk Pulsar to death.

Related Brand
Kristal