Wednesday, December 22, 2010

Nano Emotion

Friday, December 17, 2010

First car? Better give it a test....A Quality Test

Is there an impact of a test drive on the purchase decision, during a car purchase? If so, how much?

When my friend wanted to buy a car, a hatchback, he first test drove the Figo. Then on my insistence he tried the Indica Vista. He fell in love with the car in just 10 mins of drive and finally booked one. (Sorry Ford, nothing personal)

In this case, it was just the feel of the car for that crucial 10 minutes, that changed his purchase decision.

But honestly, is that 10 minutes really enough for somebody, who is buying their first car? May be an Alto or a WagonR which normally people would have driven through their friends or relatives, may say, the test drive is nothing critical. But in general, it is that factor which decides the purchase or may be a step further by forming an opinion on the brand too.

Especially with such a huge competition in the small car segment, one can make a difference only by making the customer feel the product. The manufacturers like GM clearly understand this and they go above the line and say 'Test drive like you own it'. But, in reality, how much of this actually happen?

I would say it is at the dealers end, where most of the time, test drive is seen as a liability. I would like to stress on MOST and NOT ALL. May be a dealer is selling more and beating competition, which can be attributed to many other factors that are considered during a purchase. Like in the previous example, for a customer who has come for an Alto or a WagonR, a test drive will really not matter much. Otherwise, very few dealers actually insist on a 'Quality test drive'.

A quality test drive basically means letting the customer feel the car like he owns it. There are a few steps which i think, dealers should help a first car buyer during a test drive.

1. Let the test drive car be in the best of its condition. Both exteriors and interiors along with the engine and service really matters as first impression is always crucial.

2. A first time car buyer will obviously panic during the test drive as he/she may not be a skilled driver. So be kind enough to encourage him/her and not to worry about anything going wrong on the road.

3. Educate the customer on how to adjust the seat, steering (if there is an option), rear view mirrors, dashboard controls, stalk controls etc, as they vary from one car to another. If the customer panics in the middle of the road, then the purchase will definitely not happen. At times even the clutch settings and the break settings may not suit a particular customer and the test drive may go haywire.

4. Give a product feature explanation in the test drive car also, preferably a live demo. This may enable the driver to actually use that option during the test drive.

5. And above all, the distance of the test drive. Please do not insist on any specific route for your convenience. Let the customer choose where he/she wants to test drive the car and the time he/she wants to drive it. The more they drive it, they more they feel it and the more chances of buying it.

So dear dealers, along with manufacturers, its just not enough if a test drive is given. A quality test drive is more important.

Dear customers, Happy testing and Happy driving.

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'.

Wednesday, December 8, 2010

Heights of advertising - Carvetising

One obvious field with only your imagination as boundaries is advertising. One can create a concept, without worrying about the logic and practicality and still make huge success as advertising is all about turning heads. 

Now team associates  has come with such a crazy concept. 

Carvertising. 

Forget the jargon. Let me put it simple. Use brand new cars as bill boards. 

Still confused? See the picture below. 

                                      
            (From the Pic: A Dell employee would never book one)

As of now for my knowledge, they are in tie up with GM for their cars. Though I am not sure if the tie-up is for the entire range, small cars is for sure. It works like this.

Now, companies instead of hosting banner ads in huge bill boards at a high expense, can use this small new car which will go across the city as their mobile bill boards. In return the customers are paid a fixed sum of money (of course, there are terms and conditions) for a certain period. The only way the customers can get lured by this offer is because may be this sum will cover upto 75% of the EMI.

Otherwise, for a customers like Mercenary Frank Martin or even myself, who belives 'the way a man treats his car, is the way he treats himself ' this is going to be nonsense. 

Also in a typical Indian scenario, where a car is something that is still seen as a social status and a display of well being, I doubt how many would actually be happy to use their cars as mobile billboard for those few thousands.

Crazy Marketers.

Are you Ready....to WAIT !!!

Last week I was back on my test drive spree after quite some time....this time inspired by some more new comers and many more face lifts.

While I was observing some fellow customers, along with the typical questions like mileage, boot space and power.... the delivery time has started to take an important place. It is also becoming to be a key influencer in the purchase decision. 

Right from Ambys and 800s till the Swifts of 2005, the options available for our customer were limited. This meant that customers were ready to wait for what they want. But todays crowd int he market place has led to less differentiation or pretty much similar USPs ( pardon me brand heads). This has led to features like colour and standard equipment take a strong convincing factor along with the delivery period.

Partly, the success of Hyundai against Maruti and Ford against Volkswagen can be attributed to the delivery period. Along with other issues, the de-growing sales of Nano is also due to the non availability of the product in the initial days. 

So manufacturers, better pull your pants up and ramp up your production. 

Along with Time and Tide, Customers wait for none.