Friday, December 10, 2010

Can Etios live upto its Q Class?

Surprise on the morning of December 1, 2010 when Toyota announced the prices of their new game changer - Etios. At 4.8 Lakhs to 6.7 Lakhs, this could be the car that the company would bet on for volumes. There is just one sedan that can take Etios head on - Tata Indigo Manza. Rest all, fall in a totally different league. But this is the first time Toyota has made such an attempt unlike Tata where they already had Indigo in this price range.

What did Toyota do to get in this league? They call it localisation. May be true. But I want to take a closer look. Though this may be a bit premature to do this without the car being physically present, there are enough reviews by experts on the car. Let me draw my opinions from them.


Looking at the exterior, may be Toyota fans will get disappointed. No signs of Toyota. Though I wouldn't say as bland as Logan, still pretty boxy and conservative. Getting to the interiors, the dials on the centre and the instruments console to-gather look very funny and tiny. I doesn't give a Toyota feel. May be they'll suit Nano better and definitely not Etios. The rear seats are claimed to be the most spacious even beating a segment above.

Having said all these, Toyota for the first time has stepped out of its shoes to custom make a product for India with extensive market research and and customer insights. The result of the research is Etios. This should sweep the hearts and win volumes.

But HEY!!! Wait!!!

There might be a problem.

Did they loose something?

May be!!!

I think its their Brand DNA - Quality, What Toyota stood for all these years.

As far as i remember, unlike Volkwagen, Toyota never did any huge branding campaign. They just carried their DNA in their product and it was visible. People accepted it. After all, thats what they stood for.

And for the first time, they have started using the term 'Quality' in their communications. Why say it when you are already good at it and if you are continuing to do it ? 

The initial previews have suggested that though this is for the masses, the car lacks the finesse of a Toyota. Can they do what Maruti and Tata have done in terms of volumes ? 

Before answering this, it is very clear the way Maruti and Tata reached this position is by improving on their previous versions and thereby improving on the customer satisfaction and confidence. This has built their brands so strong. 

Conversely, Toyota is trying to step down from a higher level. If this is for numbers, may be initially they may sweep the market. But in the long term, they can retain only one image. Either premium or a mass player.

At this situation, both will be a problem for Toyota. If they retain their existing brand perception, Etios will become a bad recipe. Else, Etios becomes the darling of the masses leaving the Corolla and the Camry in trouble.

Now that the game has begun, a small note for the marketers at Toyota, 'Guys, Things are going to get difficult'.

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