Tuesday, May 10, 2011

How Big Brands Falter in Their Perception

Perceptions matter all the time and advertising has proven that many times.

Nano, despite the huge publicity, did not do well since November 2010 when it sold just 509 cars. The TATAs realized that something was darned wrong in their strategy. Many potential customers were not comfortable entering the large TATA car showrooms (perception problem). After all, they were targeting a much lower income group than their normal cars.



Pic Courtesy: Tata Motors

After their tie up with Big Bazaar which has 70 units across India, things have improved. More importantly, TATA opened 210 Fclass 500sq ft showrooms, mostly in smaller towns – reaching the group Nano was trying to target. After these and other small changes, Nano hit the 10,000 mark in April 2011.

I remember the legendary Bullet faced a perception problem they didn’t even acknowledge till the late ‘90s. The perception that Bullets were heavy and slim guys and girls couldn’t kick start it and worse, park a bullet easily. If only Enfield had listened to the market, they could have addressed this problem a long while ago. I know a girl who could be lifted by the winds drive the Bullet with ease.



Pic Courtesy: Royal Enfield

Yes, Enfield then offered test drives on Elliots Beach, Besant Nagar, Chennai. But they didn’t persist with the strategy.