Since I have written about luxury car brands – Jaguar, Land Rover, JLR corporate brand and Porsche – on my blog before, I thought I’d turn my attention to mass-market popular car brands this time.
Mass market and premium cars ought to constitute the most crowded of car segments in any country, I would reckon. The largest section of the automobile industry is usually made up of the popular and premium car segments, and this is because almost every carmaker wants to offer the middle-class car buyer a range of options to choose from. It is a volume play and every brand tries to grow the market as well as garner larger shares of it.
Depending on whether it is a large and mature car market or not, mass-market car brands choose to focus on growing the market (targeting first-time car buyers or a second car for the family) or fighting for market share in the replacement market. In a country like India, where car penetration and ownership are still very low, it is largely a grow the market strategy, especially at the entry-level compact and sub-compact car segments. Of late, it appears that the entry-level car segment in India is suffering from an acute lack of consumer demand, and there could be various reasons for it. From better public transport such as metro rail and availability of ride-hailing services such as Uber and Ola, to financial constraints on consumers who may find cars unaffordable thanks to general inflation putting pressure on the household budget. Perhaps many have decided to wait it out, till they can afford a slightly larger family car. In a recent article in the papers, the chief of Maruti Suzuki was of the view that it might take a couple of years for the entry-level car segment to come back, and I wondered what might be the reason for this.
In India, the largest of the mass-market car makers are Maruti-Suzuki, Hyundai, Tata Motors and Mahindra. There are a few other smaller players such as Volkswagen, Renault, Kia, and even Toyota with a few compact models such as Toyota Etios and Toyota Glanza. There used to be Ford and GM compact cars as well years ago, but they have closed down and exited India, while Japanese and Korean car brands still continue to do well in the country. And this has something to do with what I am going to be writing about in this piece.
Internationally, Ford, Fiat, Peugeot, Vauxhall, VW and Renault all do well in the mass and premium car market, but few have built truly distinctive brands for themselves with the exception of VW, Volvo and Ford, perhaps. In such a crowded market with stiff competition, how can an automobile brand make a compelling offer and maintain its advantage over competition? Furthermore, when the industry is also being disrupted by new technology and regulatory issues, is there a danger of popular cars becoming commoditized?
I think it’s essential to understand the mass market car buyer and their main considerations when making a brand choice. From all that I have observed and know from years of working in the advertising industry in India, including on car brands, customers make their brand decision by brand, that is the company making the car. But before they do this, they hone in on a shortlist based on important criteria such as budget (price range), design, engine power and space, fuel consumption and equally importantly, after-sales service. Of course, one could argue that often, of the main contenders in the shortlist, there is very little to differentiate them on features.
I agree. When I look at most automobile advertising, I find that the focus on just a few features is inadequate to engage with the customer, and doesn’t help him or her form an opinion or image of the brand. This is where the brand comes into the picture, and can tilt the consumer’s decision in its favour. Therefore, I think it’s extremely important that automobile brands focus on what makes them distinctive, as compared to competition.
How does one find something distinctive to say about an automobile brand? I think it is after understanding the customers and segments really well and honing in on where a carmaker wants to concentrate its marketing strategy, so that it can be competitive and distinctive, that the brand really needs to craft its brand strategy carefully. I would say that having found relevant need gaps in the market, and having then decided which segments and kinds of vehicles to offer, the car brand devises a package of features and benefits which add up to a differentiated offering and positioning for the brand.
It is through this kind of disciplined thinking and practice, and consistency in brand-building, that Volvo established itself decades ago as the safest car in the world. Toyota has always been a byword for reliability. These distinctive brand positionings aren’t merely in communication terms, but in the way the cars are designed, engineered and delivered to customers. These brand positionings reflect how the cars perform and how the company too does business.
I would like to take up one such mass market and popular car brand that I worked on decades ago in Everest Advertising in Delhi. It’s a Japanese car brand and one that is extremely popular the world over. Honda cars. I think to most people, the Honda brand of cars immediately brings to mind great handling and smooth journeys, efficiency in fuel consumption and also a racing heritage. They are not wrong if they think this, since the company is known for its research and development and continuous innovation in automobile design, engine technology and fuel consumption reduction. Their best-selling car in India almost 30 years after launch in India continues to be Honda City, a premium mid-size sedan. Since then, Honda Cars has launched several new models in India, both smaller such as Brio, Jazz and Amaze, as well as compact SUVs such as CRV and WRV, an MPV. However, if one has to ask what the Honda car brand stands for, it is not very clear and is left to customers’ perceptions and brand associations such as the ones I just mentioned. Even if these are an approximation of what the Honda cars brand is, I think there is a need to build the brand afresh in today’s context.
Honda in much of its communication, especially for its two-wheelers which are also very popular in India, speaks of “the power of dreams”. According to what I read in the news recently, there have also been several changes in the company’s operations in India in recent decades with Honda Cars now a 100% wholly owned subsidiary of Honda Motors Japan, and with SIEL having divested its stake in the erstwhile Honda Siel Ltd. There are also so many new developments in car technology with alternative fuels and electric as well as hybrids that Honda Cars perhaps needs to rethink its product focus in the context of the changing market environment.
I put down these thoughts on brand strategy and communication ideas for Honda cars way back in 2008 in Delhi and wasn’t able to execute and share them on my blog for want of relevant stock images for the brand campaign. At the time the biggest news was that Honda was introducing a hydrogen fuel-cell powered car called Honda FCX Clarity and it had been launched in a limited fashion in the US. In light of the changes at the company in India and the changes in automobile technology, I have made small revisions in my thoughts and ideas and am sharing them here. If I had to encapsulate all of Honda cars strengths in one pithy statement, I would say that Honda cars brand is a balance of thrill and thrift. The company is always pushing the boundaries of technology and innovation, but with an eye on fuel efficiency and reasonable running costs. The company’s commitment to environment conservation is also unwavering, and it shows in the kinds of vehicles they design. You can read my thoughts on Honda cars brand strategy and my brand campaign ideas by clicking the link below.
https://peripateticperch.com/helping-honda-cars-regain-their-popularity/
I thought the worldwide popularity of Honda cars is worth emphasising at this time, when people’s attention is on environmental regulations, pollution and the expenses associated with buying and driving a car. How Honda cars fit into people’s lives and the pride of ownership that they feel is what the brand should aim for, going forward. Technological marvels such as the Honda FCX Clarity and Honda’s racing heritage help to build the brand’s engineering prowess and are essential parts of the brand’s architecture.
The featured image at the start of this post is by Fungai Tichawangana on Unsplash
Peripatetic Perch 