Cbe -Group 1. Product Failures

8/4/2019 Cbe -Group 1. Product Failures

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THE FLAWS AND THE PROBLEMSIN THE STRATEGY


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Company : Hindustan Motors

Agency : Mudra/ Equus

Ambassador can be called as the first Indian

car

The car owes its design and technology to aBritish car model - Morris Oxford which was

built by Morris Motor Co at Oxford UK. Hindustan Motors launched the Indian version

of Morris Oxford as Ambassador in 1958.


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From 1958 to 1980's Ambassador ruled the

Indian market. Infact there were only two carsin the Indian market - Premier Padmini andAmbassador.

1983 saw the emergence of a new era in theIndian car market. Maruti Udyog Ltd launchedthe Maruti 800.

Ambassador was reduced to a marginal playerwithin no time.


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Ambassador had some advantages over 800

Amby was perceived to be a sturdy car idealfor Indian roads. The brand also had a positiveperception of being less expensive to maintain.

Infact Ambassador was expensive to maintainand even though the car looked sturdy andwell built, the car lacked the quality and

refinement. Rattling sounds and rusting was common

complaints.


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Over 16 % of the brand sales came from theGovernment. Ambassador was the first choice for most

bureaucrats. Ambassador used to be the PrimeMinister's car till 2002.

The fall of Ambassador from a leadership position to a

marginal player is a classic case of marketing myopia.For four decades, the brand has been taking itscustomers for granted.

The fundamental issue related to the failure was withthe product and price.


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Brand : Onida, Company: Mirc Electronics, Agency

Rediffusion

The marketers predicted doom for the brand but Thedevil clicked.

The Devil was originally created by Mr Gopi Kukde of

Avenues in 1982. It was a welcome break from theboring TV industry.

Onida was the first brand to advertise in Television, ie

TVC about TV in TV.


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The brand had a wonderful time and was in the topthree brands in market share behind BPL andVideocon.

LG and Samsung was introduced

Onida had a fair chance to succeed when the Koreans

came to the Indian market.

It was perceived to be a vibrant brand withtechnological superiority.


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Mirc electronics decided to the switch the agency toO&M.

The creative hotshots there convinced that The Devil isoutdated.

Company changed their famous " neighbours envy,owners pride"


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Time tested and successful positioning statement and amascot that was so wonderful but it was changed forno reason what so ever

Newspaper reports quoted the agency telling thatpeople resented the " neighbours envy" part so theyhad to change it... it was a lie.

O&M used some funny creatives like two elderlywomen using TV to terrify some young thing walkingthrough the street.

It was the death of a brand.


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Brand : Canada Dry

Company : Cadbury Schweppes(Later CocaCola)

Agency : Mudra

Canada Dry was launched in India in 1995.

The brand ,from Cadbury Schweppes ,was a

highly popular brand of soft drinks across theglobe. Canada Dry was a much hyped brandbecause it was from the house of Cadbury.


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The brand gained immediate acceptancebecause of its association with Cadbury.

The brand had the potential to become apremium softdrink brand in India.

In 1999 Coca-Cola took over the beveragesbusiness of Cadbury Schweppes and like GoldSpot and Limca , Coke killed this brand.


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Tamariind was a brand which died inside theTV Tube.

Tamariind was the readymade brand from the

textile major S Kumar's Ltd. The company wanted to tap the emerging

readymade segment .

Tamariind was targeting the middle andupper-middle class segment.


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The brand had roped in Hrithik Roahan whowas at that time was a phenomenon. I thinkTamariind was one of the first textile brands to

take him as the brand ambassador.

Infact the ads were so effective that large retailchains were stocking this brand within a fewdays of launch.


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Tamariind was positioned as a fashion wear.The clothes were designed by the famedLondon based designer John Paul Vivian. The

brand had the tagline" The Flavour You Wear ". The brand was

designed to be a fun, fashionable trendy brand.

Tamariind was also brought in the concept ofTotal Wardrobe Solutions by providing all typeof clothing to the target consumer.


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Price and Distribution and Differentiation. Tamariind was steeply priced Those who bought the brand could not be

convinced about the quality which did not justify

the steep price. The brand also tried to focus more on exclusive

outlets which again severely restricted its reachamong the audience.

The brand ambassador Hrithik also faced so manyflops after the initial success which in turn affectedthe brand negatively.

A mere presence of a celebrity will not create asustainable value for the product .


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Company: Bajaj Motors ltd

Brand: Bajaj Chetak

officially stopped the production from

December 2005. The company says that the product no longer

have any relevance to the customer

Launched in 1972 virtually owned the twowheeler segment


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Named after the legendary stallion of theRajput king Maharana Pratap

was known for the reliability and sturdiness.

Chetak was an unavoidable dowry in 1970'sand 80's

had a waiting period of more than 10 years

With reasonable price and the low maintenancecost made this product a huge hit among themiddle class Indians.


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It was during 1990-91 that the brand began thejourney to the end.

The primary reason is that the Brand forgot thecustomers - case of Marketing Myopia

company failed to understand the changingperception of the customers towards scooters

Bajaj never did anything with the product.

Bajaj never was serious about productdevelopment.

The product had serious problems like startingtrouble and riding comfort.


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In India, the brand's disaster started in 1996 whenWhirlpool acquired this brand globally. Whirlpoolwanted to sacrifice Kelvinator for its own brand

Whirlpool had the license to market Kelvinator

brand in India till 1997. So it did not invest inKelvinator

Because of this Electrolux entered Indian marketwith its own parent brand.

Kelvinator brand lost its place because it fell into acobweb of ownership issues.

the brand was taken off, it had a market share ofover 14 %.


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Team Members

Anupama Umakanth 19Devanshu Mehta 36Rohan Mathews 103

Documents

Cbe -Group 1. Product Failures