Brand Update : Nano is the Key to Happiness

Its almost two years since the launch of Tata Nano. A lot has happened over these years. The much hyped & much criticized small car has hit the road and is running through its worst nightmare- sluggish sales.

When Ratan Tata announced the launch of Nano, the media went gaga over the product and the realization of dream of a common man's car. Globally Nano became a big news because of its unbelievable price tag of Rs 1 lakh. More over Tata was able to give a great looking car at a very cheap price.

In my earlier posts, I predicted that Nano will create record interms of sales. I believed that consumers will lap up such a well designed economical car. Nano will create history... but my predictions failed miserably. In November, Tata Motors was able to sell only 500 of Nano cars.

The problem for the brand started when reports of the car getting fire began spreading. Just after the launch, a few Nano cars got fire and the pictures of Nano on flames splashed across the media. Consumers began to seriously worry about the safety of Nano.

To counter this negative publicity , Tata Motors began serious efforts to restore faith in the brand. The company initiated a recall program where the existing Nano cars were fitted with additional safety features. Along with that, Nano was further tested for safety by engineers from Tata Motors as well as from Jaguar.

These measures ,to a certain extent, contained the damage of Nano's brand image. Further to the safety issue, the brand also faced the issue where consumers at the lower-income strata was declined loan by banks and financial institutions for buying Nano. Although the auto loans were always a risky liability for the financial institutions and loan-denial is not anything new in this industry, this issue was again highlighted across the media as a specific issue pertaining to Nano.

So the brand is now facing an issue which is highly perceptual. And a negative perception for a brand in the introductory stage of PLC can be fatal.

To tide over the issue regarding the trust + safety, Tata Motors introduced a four year/60000km warranty for the Nano. The warranty is an assurance from the brand aimed to build trust in the brand.

Along with these measures, Nano also launched its first television commercial this month.

Watch the ad here : Tata Nano TVC

The new ad projects the positives of the car and positions the brand as " Key to Happiness". The brand has adopted the tagline " Khushiyon ke Chaabi ".

What the brand needs is to restore confidence of consumers in the brand. The picture of Nano in flames is still embedded in the consumer's mind. It should be erased if the brand wants to see the sales figures upward. For that it should get as many Tata Nano on the road as possible. The more cars on the road will instill confidence in the consumers to buy this brand. For that the brand should go to any extent.

It is not that I am not aware of the negatives of Nano. But Nano is a genuine marketing effort to satisfy a gap in the market. As a marketer, this is a brand I don't want to see failing in the market.

Related Brand

Tata Nano

Marketing Strategy : The Basics of Internal Marketing

According to Berry and Parasuraman (Marketing Services: Competing through quality), Internal marketing is attracting , developing, motivating, and retaining qualified employees through job-products that satisfy their needs. It is the philosophy of treating employees as customers.

Although the concept of internal marketing seems like another version of human resource management, there is much more than just attracting and retaining good employees. According to Professor Philip Kotler, marketing activities within the company is equally important as marketing activities outside the company.

According to Kotler, there are two perspectives to internal marketing. One perspective is the coordination within the marketing department. The various marketing functions like sales , advertising, product development etc should act as a single unit focusing on delivering the best to the customer. The second perspective is the interaction between the various functions like Production, Finance , HR etc. Internal marketing’s role is to ensure that the entire organization is able to come together for a common business objective.

While many literature focus on the usefulness of internal marketing on the marketing function, internal marketing have a strong strategic importance which is often overlooked.

Advantages

There are many advantages of internal marketing. These advantages vary with the nature of the business that firms are in. Internal marketing has a strong impact on the customer satisfaction in service industries. In most of the service businesses, the consumption of the service product happens at the service factory. Research has proved that the way in which the employees are treated have a direct impact on the way customers are treated.

There are businesses which are human resource oriented like software firms which will find internal marketing a very powerful tool for marketing as well as strategy. Such marketing programs targeting the employees will have strong effect on the overall efficiency of the employees.

The internal marketing initiatives will also have a ripple effect on the ability of the organization to attract and retain the employees. In this highly networked world, internal marketing can generate very high positive word of mouth publicity about the working environment in the company which can attract new talents to the organization.

Firms venturing into Internal Marketing have to look at the concept at different levels. There has to be emphasis on key focal points like branding, communication, training, motivation and transparency.

Internal Branding

With regard to branding, Internal Marketing is closely linked to corporate branding. Corporate brand has more relevance in internally than a product brand. Employees should be thrilled by the corporate brand rather than the product brand. Hence marketing communication targeting employees should be aimed at building corporate brand equity rather than product brand equity. Brands like Infosys, TCS, Unilever etc not only attract prospective clients but also new talents to the company. Working for a reputed corporate brand is a powerful non-monetary reward for the employees.

Internal Communication

Firms venturing into internal marketing should create a robust internal communication infrastructure which is a vital pre-requisite to any such program. Free flow of relevant information within the organization is very vital in this context. The success of the internal marketing program lies in the employees being able to internalize the brand promise, company values and develop customer orientation.

For example, the employee in the finance department should understand the implication of fast payment/bill processing on the overall business of the firm. Materials department should understand the importance of efficient procurement on the overall business strategy of the firm. The understanding of cross linkage of various departments and its impact on the customer will be the biggest takeaway of a successful internal marketing program.

Organizational Culture

Another important prerequisite of a successful internal marketing program is the internalizing of organizational culture among the employees. Firms like Marriott, Apple, Microsoft, Infosys, TCS, GE thrive because the employees are torch bearers of the organizational culture. Such internalization will happen only through a robust internal marketing program. For example, in Infosys, founders like Narayana Murthy , Nandan Nilekeni had the wisdom to understand the importance of developing a highly ethical , performance oriented culture. These organizations have a strong internal structure that is responsible for teaching this culture to the employees.

Top Management Responsibility

In most of the organizations, the task of internal marketing is not clearly defined. Most often this function is handled by the Human Resource Department. The thinking is that HR department is best suited for dealing with employees in matters regarding motivation, training and development etc. Like product marketing, internal marketing is also a very important function to be left to any functional department. In my personal opinion, top management is responsible for internal marketing. Firms like GE, Zappos, Google ,3M has CEOs taking the full responsibility of internal marketing.

In this highly competitive environment, internal marketing is a tool that can differentiate an organization from its peers. It is time for organization to understand its importance and start investing in it.

Originally Published in Adclubbombay.com

Lebua at State Tower Hotel

Lebua at State Tower Hotel offers 358 suites within the prestigious 67-storey State Tower which rises over a main thoroughfare of Bangkok near the river. High-speed elevators whisk you away to suites that exude space-age luxury with an old-world feel. Each suite is equipped with a charming living room, modern bathroom with separate shower, two flat-screen TVs, a DVD player, in-room broadband internet connectivity, workstation, a large and fully stocked refrigerator, a coffee percolator, iron and ironing board and personal safe. Lebua has conveniently procured a private entrance for the reception area on the ground floor. The rooftop restaurants offer a breathtaking-yet-breezy, romantic-yet-stately dining experience that on a clear day, makes for the experience of a lifetime.

Address: 1055/111 Silom Road, Bangrak, Silom / Sathorn, Bangkok, Thailand
Location: Silom / Sathorn
Number of rooms: 358

Bandara Suites Silom Hotel

Just off the business district and close to sightseeing and shopping attractions, makes this hotel popular among both business and leisure travelers. The 27-story, 242-unit, building towers over Soi Saladaeng- a quaint restaurant, shopping, residential and nightlife area. The skytrain, the subway, and the three main thoroughfares of Silom, Sathorn, and Rama IV roads are all 5- minutes walk away. All rooms at Bandara Suites are equipped with high-speed internet and full kitchens for a comfortable stay of one night or as a permanent residence. The 4-star hotel’s facilities include: 2 pools, a spa, a gym, a squash court, a sauna, a whirlpool, a business center, and a restaurant. The city is waiting to be explored as soon as you step out of Bandara Suites in Silom.


Address: 75/1 Saladaeng Road, Bangrak, Silom / Sathorn, Bangkok, Thailand
Location: Silom / Sathorn
Number of rooms: 242

Amanta Ratchada Serviced Apartments

Located in Ratchada, right in the center of Bangkok, allowing easy access to the business, shopping and entertainment district. Apartment offers 116 executive suites, each neatly decorated with modern style and coming equipped with all neccessary amenities and facilities ready to use. The process of getting around in Bangkok while staying at Amanta is stress-free as the closest MRT subway is just five minutes walking distance away. Surrounding you are popular tourist attractions to visit, banks, Embassies and shopping malls for your convenience. Robinson Department store, Jusco and Carrefour supermarkets are all within reach. For those in need of a break from long hours of shopping or sightseeing, they can have a relaxing swim in the hotel’s outdoor pool or taking a refreshing walk in the comtemporary tropical garden. Guests will find the hotel’s area in the heart of Bangkok an advantage, especially when roaming through the lively city.


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Location: Ratchadaphisek

Indra Regent Hotel

The Indra Regent is located in the heart of the shopping district and only a short ride away from the main tourist attractions. The clothing market of Pratunam, is steps from the hotel, and the shops of Siam and MBK are a quick tuk-tuk ride away. All the major shopping centers are within a few kilometers and easily accessible on foot or by the skytrain. The Grand Palace is just four km from the hotel, and the tourist friendly Khaosan Road is five km from here. The several on-site restaurants at the hotel cater to all taste buds, offering Thai, Chinese and Continental dishes. With a day spent on your feet you will definitely appreciate the massages at Spa Indra. Indra Regent makes for the perfect base if you are in mood for some serious shopping, and sightseeing.


Address: 120/126 Ratchprarop Road, Pratunam / Siam, Bangkok, Thailand
Location: Pratunam / Siam
Number of rooms: 450

President Solitaire Hotel

The perfect location to experience the excitement of Bangkok, President Solitaire enjoys a city center location. Guests can easily walk to the nearby skytrain station, alternatively a complimentary shuttle is available to help transport guests. The surrounding area includes a world-class hospital, popular nightclubs such as BED, and countless dining venues to suit all budgets. After a long day, head over to the Ananda Spa for a relaxing massage or relax by the outdoor pool, which features underwater music. Guests enjoy a central location and are ensured of a pleasant stay when they choose to stay at the President Solitaire Hotel.


Address: Sukhumvit Soi 11, Sukhumvit, Bangkok, Thailand
Location: Sukhumvit
Number of rooms: 134

Majestic Grande Hotel

Located in the heart of Bangkok, the Majestic Grande Bangkok combines contemporary decor and state-of-the-art technology with hospitality which is uniquely Thai. The Majestic Grande offers 251 well-equipped guestrooms and warm, friendly service. The business center at the Majestic Grande Bangkok provides all the business amenities one could possibly need. Business travelers will enjoy the features offered at the Rooftop Executive Lounge and on the Executive Floor. With a choice of restaurants, this hotel offers the most delicious Thai, Asian and international cuisine. In addition, guests can also take advantage of ample opportunities for leisure and recreational activities including exercise in the pool and gym and traditional Thai massage for unwinding after a hard day. For your reservation at the Majestic Grande Bangkok, please select the dates of your stay and complete our secure online booking form.


Address: 12 Sukhumvit Soi 2, Sukhumvit, Bangkok, Thailand
Location: Sukhumvit
Number of rooms: 251