The Josh is now Gone ?

I still remember 1998. There were three major brands from 3 major auto giants. Opel came with the Astra, Fiat introduced the UNO and Ford came with the Escort. Though the first two did some decent numbers, while Escort failed miserably due to the high cost of ownership. It was then Ford went back did its homework again and came up with Ikon, a true ikon for Ford till 2010 when Figo has changed the fortunes for Ford.

Ikon was first introduced with a petrol engine and then with the TDCi diesel engine. Later the branding for the car was done as 'the Josh machine' which created a niche for the car among driving enthusiasts. But the car did deliver on what it promised. A true brilliant driving experience. The diesel engine also became an instant hit among the mileage oriented Indian customers. 

In spite of all this, Ford always had a negative perception of high ownership costs, thanks to the Escort. People always perceived the brand as a rich mans baby. But Ford always tried to change the perception by offering maintenance offers from time to time. But after the Ikon, the Fusion again was a miserable failure failing to meet the demands of the customer in that segment. 

After a long time, it was the Fiesta that resurrected the fortunes for Ford in India. But those days, no one would have imagined that its the Fiesta thats going to drive away the Josh machine forever.

It is happening now.

Fiesta is taking a new 'Classic' form all set to replace the Ikon. Is the company is trying to downgrade a premium sedan to the entry level sedan? For what?

Wait...

The new 2011 fiesta is all set to roll in the second half of the year. So Ford is trying to milk the cow (Fiesta)to the fullest. But in its current form at this price range it is not possible. So the Ikon which sold Zero units in Jan 2011 made way for profits to the company despite a major facelift recently. So, the company has strategically phased out the ageing Ikon to let its customers go Fida.

Lets see how the new Fiesta is going to take it from where the current Fiesta has left the stage.

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.

Is this The Blue Oval's Blue Ocean Strategy ?

2010, has been a remarkable year in the history of Indian Automobile Industry. This is the year that witnessed many global giants setting up plants in India and launch India specific products and making India the export hub for these products. A couple of years back, if a customer wants to buy a hatchback, there were hardly a handful of brands dominated by Maruti, TATA and Hyundai. Today, we have Chevrolet, Volkswagen, Ford, Nissan, Toyota and many more to come all lined up with their offers. 

But how many of these manufacturers actually manage to capture a share of their pie. Clearly Ford with Figo is the only manufacturer to have done that in style. 

50,000 units between March 10 to October 10, 2nd fastest model to achieve 50,000 units in India, overtook Tata Indica to the 5th spot in vehicle sales during the month of October 10, 3 digit growth rates for Ford India.... These data should be sufficient to judge the success of Figo amongst the models that came in 2010. 

The major problem Ford earlier had was, the brand always had a perception of high ownership cost. Other than Ikon, to a considerable extent and Fiesta, to a small extent, Ford never tasted success in India. How did Figo manage to achieve this whilst competition? 

While many others did brand building exercises before their launch, Ford kept quiet and let their product speak. The product exactly was in line with the customer expectations from a hatch, thanks to the decade old presence in India. The car was fully loaded at a price which was at par with the base variants of other models.  In a market where Value for Money is top priority, this is the key factor that was addressed. Along with the already existing dealer network, Ford also added new dealers to strengthen the sales and service network. 

Rather than fighting with existing players and fellow new comers, Ford devised its own plan and created an own market for itself. This is evident as the market share or the sales figures of Maruti, Tata or Hyundai did not get affected. Eliminating its earlier problems with the brand, Figo gained confidence of the customers.

Going in-line with the Blue Ocean Strategy, though not complete, Ford had also made the competition irrelevant and had created value innovation with the Figo. 

The success of Figo has once again proved that, in India a failure once never means the brand can't bounce back to winning ways. Also Indians have a welcoming heart that actually means value for them.

Ford Figo - TVCs

Ford Figo - Corporate Film

the conFUSION is now gone...

Ford India has taken a wise decision to axe Fusion. Though the model hardly sold in the last few months, the decision had come at the right time before Figo hitting the showrooms in the first week of march. This is a wise decision because, the cars look somewhat similar from certain angles.

The biggest mistake in Fusion was its pricing. At 6.5 lakhs to 8 lakhs, there were more exciting models available in the market. And its station wagon like feel, confused the buyers and hardly drove in customers. Also Ford did not push the brand much as it did for Fiesta or Ikon. There was nothing to remember like 'The Josh Machine' or 'Go Fida'.

With the same platform and the same wheelbase as in Fiesta, the Figo is all set to go at an expected price range of 3.5 to 5 lakhs. This should be ideal for a car like this. It seems like now Ford is clear in what it is offering to the market and what it is expecting from the market. So, the conFUSION is finally gone.

Is Figo planning to be a silent killer??

Ford announced that Figo will be launched in March 2010. While Figo had to go head on with Chevy's Beat and  yet to come Polo from VW, Ford has chosen to be very conservative in its marketing strategies.

When Volkswagen announced Polo, it started its brand building exercise much earlier. Similarly when GM launched Beat, though there were no big ATLs, there were enough BTLs taking place. Also, both these brands took place in the recent Auto Expo at Delhi. But in contrast, though Figo was announced for the Indian market almost during the same time like the competitors, there was never a great promo in place.Ford also needed a brand building exercise as the brand is perceived to have high running costs.

But after the recent announcement of Ford, it seems like, the company is trying to get the basics right. In automobile industry, if the product P is right, then the success rate is high. Figo, I would say is more suited for a Indian consumer in terms of value for money. Its more reliable and seems to have a better utility value.

Having said all this, lets see how the 'new blue oval' is going to fair against its German and Japanese rivals.

Ford Figo - Fully Loaded