A tale of two brands

I am making specific references to the situation faced by Tata Motors today. And a sharp contrast is available in the form of Mahindra & Mahindra, to bring out some inherent contradictions.

Let me go back a few years when Indica was launched. A car with a fresh design, technology, no lineage and more importantly accurate positionig (that of a family car, remember the tag line “more car per car”). Maruti, at that point of time, already was an established competition. But there was something more/different Indica had to offer, and the rest is history.

But things have changed sufficiently since then. Every segment today will have at least 10-15 competing cars in India. The need to differentiate your products is further more today. I doubt if the very same Tata Motors does seem to comprehend this. I rather assume that some kind of uncertainty and insecurity has set in. If you check with any auto enthusiast, you will come to know that both Manza and the Vista are the next generation products from Tata Motors and are quite competitive vis-à-vis the other offerings in their respective segments. So what is ailing them in the market place is nothing but poor positioning and communication. The Vista was launched as Indica Vista and Manza as Indigo Manza, clearly indicating that Tata Motors wanted to play it safe with established brand like Indica and Indigo. So when you play safe, you can only play as much. Again, both these products were launched much before their respective segments got crowded, thus giving Tata Motors a clear advantage. But they lost the opportunity as they were scared of taking the big step initially. Eventually, only when the Plan A failed, Plan B did promote Vista and Manaza as brands with separate identity. But it was too late in the day, as initial association with economy brands like Indica and Indigo has significantly diluted the premium images of Vista and Manza respectively. Clearly there was some kind of fear and insecurity, and not business sense, driving this.

This blog would be incomplete without the mention of the great Indian dream, “the Nano”. The initial assumption that Nano will not require any promotion and every family on a 2-wheeler will automatically shift to Nano, was a psychosis of a different kind. The initial positioning of the Nano as an aspiration car for the lower middle class has given way to being a “cool to have a car with the GenY”. The new tag line, “ Celebrate Kickasssomeness” will have no appeal whatsoever to the previous segment of customers. In the absence of any logical connect between the two propositions, it is obvious that the Plan A has been shelved and Plan B has taken over. With an ambitious project like Nano, a bit more homework was desired.

A close look at their communications would reinforce the above theory. The new Manza advertisement features a Japanese spy in India, trying to understand the secret technology that drives the new Manza, and ending up with a complex. This is an age old concept of selling a technology product in India, playing on the collective complex of a technologically inferior nation. May be only a patriotic brand like the Tata can come up with such a proposition. I can’t help but remember the Voltas (a Tata group company) advertisement, “India ka AC, Korea ka nahin”. Looks like the problem is rooted deeper in the larger organization. While it may appear to be patriotic to most buyers, it is only reflective of a deep sense of insecurity on the part of the brand.

Even the Nano communications were no different to start with. The advertisement would show families on 2-wheelers aspiring Nano while getting wet in the rain, and contrast it with a family feeling lucky to have escaped the rain while inside their Nano. Another advertisement would show a couple in a Nano accusing the wind for stealing their romantic whispers. It really took them time to understand that they are better off celebrating youthfulness than exploiting lower middle class insecurities.

While the leading car manufacturer was gradually going down, their Indian peer Mahindra & Mahindra was rapidly climbing its way up. Now this is a company with no history; in fact the historical image of being a tractor manufacturer was rather a lag. With competencies narrowed in the Utility Vehicle segment and a setback in the car segment (broken partnership with Renault), M&M had its task cut out. They did the exactly opposite to Tata Motors, brilliant positioning and communication. They focused on a competency based strategy and came up with competitive products, across price points, in the utility vehicles category. Bolero, Scorpio and XUV are all leaders, and the likes of Xylo and Thar are no less. This was a company conscious of its limitations and decided to focus on its strengths. Hence, the clarity and confidence.

Again, a close look at the M&M communications would reinforce the above theory. The M&M communication clearly says “Live Young, Live Free”, backed by an excellent video capturing the Gen Y free spirit and youthfulness. Unlike Tata Motors, this proposition is not only more aligned to the targeted segment, but also reflective of the changing values of the contemporary society. M&M were quick to drop the stereo typical – style, technology, service, etc. as differentiators - and focus on the identity of the brand as the differentiator. Needless to say, there was risk involved in trying to ride on the pulse of the nation, rather than the stereotypical. But only a brand, as confident as the M&M, could have felt the pulse right. And as they say, the rest is history.