Alto K10 – Bid Adieu. But Why?

The Indian car industry always considers Maruti as the HUL of the car industry. They are well known for their flurry of launches. I firmly believe that Maruti's top position in the Indian market is attributed to these new launches. Are all launches successful? The answer is a big No. Maruti's story is entwined with prosperous as well as failure brands. However, the customer is happy and proud to own a Maruti.

The hot news of the month is about a brand that had a meteoric rise and was in the kitty of Maruti for a decade, Alto K10. Launched in the year 2010, Alto K10 was a modified version of their ever best-seller brand Alto. In Marketing terms, the launch was a line filling. There existed a gap in the market between the entry-level segment Alto and a slightly high-end Wagon R. Alto K10 was Maruti's answer for the need. The brand was doing good, or I should say, still doing good. But no major facelift has been done to the brand since 2014 as per the company sources. But why?

K10's exit was not an ignominious one. For me, K10 was a cash cow for Maruti. To be more specific it has reached the maturity stage of the product life cycle and without market/product modifications survival is tough. Moreover, the success of cross over SUV – like models such as Kwid accelerated the push outside. But I don't think there is a desperate need to discontinue the brand. The factor that, to me, has contributed to the exit of K10 is brand cannibalization. After the initial success of S Presso, K10 started losing its customers to S Presso, which is a classic case of cannibalization. The threat of cannibalization is always there if your portfolio size is large. Companies usually manage it by withdrawing one brand. In this case, Maruti wants to protect the younger one with a more meaningful life. The fate of S Presso is again uncertain. But investing in a question mark is more critical than protecting a cash cow. (Cash cow, Question Marks are two quadrants of the BCG Matrix).

 Anyway, it is time for us to bid farewell to an exciting brand that people remember forever.

New Santro – Facing an Identity Crisis?

The Indian Automobile sector today, like other sectors, is haunted by the ‘tyranny of choice’(Phrase Courtesy: Jack Trout). One wrong step can result in irreversible damage both for image and market share. The bygone years have witnessed an enormous leap in the number of car brands in the country. The level of competition in the market intensified. Some brands got vanished in no time while new ones occupied the space. New designs and technology replaced the obsolete. However, Maruti and Hyundai still enjoy the top two positions in the market with Maruti on top.

In such a scenario, if a brand survives and survives for more than two decades, it is often laudable. Maruti’s Wagon R and Hyundai’s Santro, who are still in the race, have a rivalry for years. Wagon R has crossed three generations with seven models during the past 21 years, and the journey is on. Santro, the first mover in the segment, has also crossed three generations but took a break for 4 years as the model was withdrawn in the year 2014 and reintroduced in 2018. Breaks are always good for a fresh start, but was this good for the brand? I doubt whether Hyundai made a mistake while retaining the brand identity of New Santro?

A brand vouches for modification when it reaches the maturity stage of the life cycle. Both Wagon R and Santro on reaching maturity stage also forced a lot of modifications. At this juncture, Hyundai decided to take a break and relaunch while Wagon R came with modifications. The brand identity for both Wagon R and Santro is that of a ‘Tall Boy.’ The Point of Parity is this, while Point of Difference is the performance and mileage. Maruti was very particular in maintaining the identity of Wagon R, all through the product modifications. If we check into the different models, one can quickly identify with the ‘Tall Boy’ image. The Big New Wagon R launched in 2019 seems to be accepted well by consumers, and you can spot more numbers on the road.

The New Santro was launched with much fanfare. The brand was successful in obtaining initial orders at ease. But to me, the brand failed to continue the show. Here comes the importance of Brand Identity. The new Santro to me has compromised on the ‘Tall Boy’ posture, and the Deja Vu(of old Santro) was missing.

Moreover, the brand resembled the other brands such as i10, Grand i10, which creates confusion among the consumers. Is Santro now facing an identity crisis?. It is not a ‘Tall Boy,’ not a replacement for i10, Grand i10, etc. So what is Santro?

Going by the track record of Hyundai, one can assume that Santro will find its space in the market, but my gut feeling is that if they have maintained the “Tall Boy’ posture, it would have been a cakewalk for them.

POP/POD and Positioning Conundrum – Sensodyne

Positioning is always tricky. Brands quite often get confused about what to position, how to position, and so forth. However, the success of brands depends upon how you place the brand in the minds of the consumers. In a crowded FMCG sector, the positioning conundrum is highly visible. The toothpaste industry gives us a classic case of POP/POD, Positioning conundrum.

Colgate Palmolive and HUL dominate the toothpaste industry in India for years. Colgate, with a market share of 58%, enjoys being the leader in the category with Pepsodent, Close – Up, Patanjali, Dabur, Sensodyne, etc. follow the race. On observing the industry, I wonder why Competitive Positioning is essential? Unlike other industries, the brand loyalty of toothpaste is very high. One can find families using Colgate for generations. Then why brands always run behind competitors?

Sensodyne, a GSK global No.1 brand entered the Indian market in the year 2011. The launch was not smooth as the core benefit of the brand i.e., reducing teeth sensitivity, was not accepted by people. The more significant insight is that consumer awareness of such a condition is inferior. So it was imperative for the brand to first turn attention to Point – of – Parity(POP). The taste and foaming(significant drivers of consumer buying decisions of toothpaste) were adjusted to suit the Indian market. The Point – of – Difference(POD) was reducing tooth Sensitivity(Benefit Positioning). When the whole industry was aggressive and widely used red ocean strategy, Sensodyne marched in a different route.

Herding behaviour is present in all sectors. Cause-related advertisement is a trend today. All companies now bet for a cause. Why this herding behaviour? In the toothpaste sector, Smile is the new positioning normal. Competitive Positioning is not new, but I consider it a waste of money. Why brands like Colgate, which enjoy high brand loyalty goes for herding? This always amuses me. A challenger brand using competitive positioning is understandable, but can’t they travel in a different route i.e., rely on POD.

The last company in the sector to show herding is Sensodyne. They have given away their sensitivity proposition from the latest ads. They also now rely on competitive positioning. But Why? I think there is a shift of focus from being a specialist brand to a mass-market brand. Being a mass brand can, of course, attract more new users and increase usage. I doubt the success of this positioning as we know Sensodyne only as an expert. Now a change in approach makes the brand susceptible. When Xerox tried to change the positioning from a photo copier to a ultimate communications provider, the brand failed miserably. The brand IGNIS of Maruti launched through Nexa Outlets confused people. This is the classic positioning conundrum I was discussing here. Will this approach succeed? Wait for time to say something.

Neeman’s Shoes – Comfort Redefined

It’s been a long time since I have written something here. Thanks to the lock down. Unexpected lock down helped us understand life in a different way. But marketers are always very hard to guess. Their expertise in identifying markets and opportunities is beyond our imagination and often laudable. Neeman’s is a new entrant in the market beyond your imagination. Can a shoe be made of wool? I have never thought of it till the recent past. But the answer is Neeman’s Shoes.

Neeman’s is a Hyderabad based start-up started selling shoes since 2017. What makes Neeman’s different from the competition is the product itself. Neeman’s are shoes made of Australian Merino wool. The primary differentiator to me is the fabric, and secondary is comfort. Neeman’s has three variants viz. Jogger’s, Sneakers, and Loafers. Given the value, I feel the pricing is reasonable. Neeman’s shoes are priced at approx. INR 7000 per pair. Neema’s shoes, as of now, are available only online.

The target market segmentation is based on demographics and lifestyle. Neeman’s is available for both men and women and focuses more on the environmentally-conscious buyer. The tipping point to me is the design as it suits all activity i.e., it serves as running shoes, a pair of casual shoes, lounging shoes, etc. In an already crowded industry, how you position yourself is very crucial. In my view, Neeman’s had succeeded in finding a differing proposition. Neeman’s is positioning is on comfort as well as one – size –fits – all(Read one shoe for all activities and all-weather). Hence, being considered as a multipurpose shoe is a clear differentiator. The lightweight and breathable material keep the wearer cool during hot weather and warm during the Winter season.

Usually, brand pundits say that if you don’t have a unique product try a unique way of communication. However, Neeman’s has tried both. Their product, as I said earlier, is unique, and by having exceptional communication, the brand ensured they stand apart. The digital ad for the brand features stand -up comedian Vir Das, who talks about shoes and the brand in a very humorous and attractive way,unlike usual run-of-the-mill shoe ads.

In a nutshell, a potential winner is born. Early adopters well accepted the introduction. But my worry is on the journey ahead. Can the company scale up the brand or will remain as a niche. To scale up, you have to be aggressive. But the brand has not shown any aggression to date. Since the pricing is a tad higher, democratizing the brand will be different. Only time can decide fate.