Demystifying Modi- A marketing perspective

The General Elections of 2014 have officially gone down as the biggest democratic exercise globally and the mandate has been an epic one for India. For the first time since 1984, a national party has the majority to form the government on its own and based on some indicatives, possibly the first time after 1972, a national leader selected by the people out of choice rather than the lack of it.

Yes, the BJP has emerged absolutely dominant across 5 states and enjoys over 80% votes in 5 others and the credit for this should go down to the grass root party workers. But for holding over 200 public addresses, inspiring and infusing enthusiasm in the party workers and building himself as a force to reckon with; it will be a complete three act dominated by Narendra Modi.

Leaving the debate whether brand Modi won the election or was it anything else to the political experts, I am only going to apply basic marketing principles to the success and place forth a simple perspective.

Give the people what they want: The very definition of marketing is focussed towards the needs of people. One factor India has been missing for a long time has been a strong and decisive central leadership. Possibly Indira Gandhi was the last known exponent of this trade and it reflected her resounding re-election in 1972; all thanks to her transformation from the ‘moom ki gudiya’ to the lady behind the victory in the Bangladesh liberation war.

Beyond elections have been just a series of counter actions and replacements to previous governments but never based on leadership. Morarji led coalition in 1977 an outcome of public dissent against the Indira governance. The re-election of Mrs Gandhi was due to the failure of the Janta Party. Rajiv Gandhi in 1984 got a massive sympathy wave, VP Singh in 1989, succeeded on the misdeeds of Rajiv, Chandrashekhar was a stop-gap and Narshimha Rao in 1991 got the benefits of another sympathy wave for Rajiv.

The 13 day Vajpayee government in 1996 failed an absolute mandate, Deve Gowda and I K Gujral were again stop gap arrangements. Vajpayee managed a coalition finally in 1999, but it failed to be decisive as it was always held at ransom by its allies. Manmohan Singh in 2004 was a last minute socially acceptable alternative and in 2009 there were little or no alternatives.

Narendra Modi in 2014 was a sign of definite leadership put forth before the Indian electorate. Who will be the PM had a definitive answer for months leading up to the elections and it was the biggest thing to have worked. Critics, party members and even media has come out saying that in a record turnout voting exercise; Modi was instrumental in installing confidence in the minds of a voter to give up on their inertia and apathy towards the government and exercise their vote.

A robust product: As a 3^rd term CM of one of India’s most rapidly developing state, Modi had suitable credentials to back him as a leader with decision making abilities. Gujarat under Modi was becoming a model state. The biggest beneficiary of the Sardar Sarovar project, water had now reached desert regions of Kutch and combined with hydro and solar power projects on the Narmada canal, Gujarat was now a power surplus state.

From an economic perspective, the swift action for the shift of the Tata Nano project in Sanand with the record time approvals and land allocations was a demonstration of the commanding stature of Modi against other state governments. No one could make such a profound statement by getting the approval from Tata, the gold standard in Indian industry, for their dream project.

Modi has gradually developed as a mark of decisive, progressive and development led governance. This was a much higher product promise presented to the Indians in a long time.   

Power of promotion: Like most others who have risen through the ranks of Rashtriya Swayamsevak Sangh (RSS), Modi has the mass appealing oratory skills that we seek in a leader. He had been a crowd puller with his well-articulated language and confident words.

In addition, the BJP left no stone unturned to build a nationwide campaign across every form of media. Apart from the effective use of social media, television interviews, radio ads, ground activities, rallies and even use of holographic at places- it was a complete and through media campaign.

Going places: Addressing 185 rallies in 45 days leading up to the final phase of elections is no mean feat; it averages to 4 rallies everyday across various parts of the country. To add to it, Modi never stayed over at any place post his address and made sure he was back in Gandhinagar every night. What this super human effort achieved was connecting to the last mile of voters and a gratification of sorts to every single person that the man has taken the effort to meet me in my town.

Multi- appeal positioning: Modi was remarkable positioned to appeal to every Indian in some or the other way to counter the political shortcomings on his resume. A 3^rd term CM with a reputation for global recognition towards good governance was the solution at hand for a country ridden by corruption and scams. For the corporate world, he was a morphine shot in the waiting to aid a crawling economy. His modest backgrounds echoed the sentiments of a commoner while his rise thought the RSS ranks was an encouragement to his party workers.

If religious fundamentalism was a stumbling block, the development model was a redeemer. If zero national experience was a flaw, his work under similar conditions in Gujarat was a strong point. If his age was a spot of concern as compared to other campaigners, his experience overruled the matters.

In an overall, there can be many more factors which we can draw; these were some prime in my opinion. The only hope I hold in my mind is for the faith rested by the voters on this one man leads him to make an incremental change to the lives of every Indian. 

A disaster of Nano proportions

I just saw an episode of ‘The Men who built America’ on TV where the US courts broke down the empire of Andrew Rockefeller’s Standard Oil into smaller fragments under the anti-trust law and paved the way for competitive markets to replace the oil monopoly. The same also coincided with the rise of Henry Ford and the model T becoming the first car people from the American middle class could buy. This changed the whole landscape for the automobile sector in the US in the 1900’s.

India saw a similar shift when Maruti & Suzuki launched the Maruti Suzuki 800 (the Indian version of the Suzuki Fronte) hit the Indian roads in 1983. Beating the long waiting periods and the virtual dearth of India to think beyond the Ambassador, Premier Padmini, Jeeps and an odd Standard Gazelle or Herald, Maruti 800 forged the way for the Indian middle class to realize the Car dream. The parallel progress was the 2-wheeler market which moved from the age old Bajaj 150 Super to sleeker motorcycles built most by Indo-Japanese collaborations with Suzuki, Honda, Kawasaki etc. All of a sudden, the Indian families found mobility.

The globalization of the Indian economy in 1991 saw an avalanche of car manufacturers flood the Indian markets. Asian giants from Japan like Toyota, Honda, Mitsubishi, South Koreans with Hyundai and Daewoo and the Europeans like Peugeot, Mercedes, FIAT saw India as the hot bed. Some perished, some survived- but their success was all due to the revolution started off by Maruti; which survived every new entrant. It was only a matter of time before Indian heavy vehicle giant TATA stepped into the ring with passenger cars. Success came to TATA when the Sumo picked up in the rental segment and the Indica V2delivered in the family car.

While the affluent and middle class migrated from the small Maruti 800 to sedans from Honda, the gap between the 50K motorcycle to a 250K Maruti 800 still kept most of India in search of the 4 wheels. This was the gap which the Tata Nano was out to bridge since 2006; a car which costs just about 100K to appeal to the large volume of smaller Indian pockets. I can vouch for the excitement it created; there were so many designs floating on the net to claim to be the Indian people’s car.

The buzz was so high that the chief of the Nano team; Girish Wagh found his way into my General Awareness exam papers in MBA. Not to mention, Nano was formally launched on my birthday in 2009. People I remember spent hours to get a test drive of the new car and interest levels were so high that the car allotment had to be done through a lottery method by filling out forms through State Bank of India branches across India. It was spacious beyond imagination and gave driving comfort which small cars usually cannot offer. Yes, it was a little under powered for some; but perfect for city driving.

So why after 4 years of its launch, there are less than 800 Nano’s hitting Indian roads each month with sales dipping every month. Why is a car offering over 20kmpl not ringing the registers for TATA? Experts cite a lot of possible errors ranging from their marketing to the Singur issue. But what really is it? I feel it was a lot of factors coming together.

Promises a little too long: The initial buzz that caught the frenzy of the Indian market was the fact that Nano was going to be a car with space for a family at a price tag of INR 100K.  The initial offer from the TATA’s on the base model was just a fraction above the promised pricing. But the promise soon faded away amidst global pressures arising due to higher costs for steel. As prices went higher and reached closer to the 2^nd hand car market, Nano was o longer the 1^st choice. Why will anyone go for a car which has no frills when a decent 2^nd hand can come in the same price?

Positioning: I don’t think you need to take a lot of marketing effort for a car that is so much in buzz, positive vibe through test drives and booking rush that you had to go in for a lottery system. You can’t buy that kind of PR and buzz that Nano lost its relevance with iPod for some. Not to mention the advertising which showed even a BEST bus driver going to work in a Nano, the joy of the child when a Nano reached a far off village in Ladakh did its job of creating the awareness.

Now the demand was high, but where was this demand coming from? Was it the urban middle class looking for its 2^nd car; or it was in fact serving as the means to someone meeting his dream of 4 wheels? I believe it was more of the first and this was one area where the market started to deviate from the vision of TATA. Though the ads positioned it in one way, the market attracted was a different one.

Time to Market: So let us call this a case of a car that was wrongly positioned- but that hardly discounts the kind of interest and numbers reflected in the participation of the lottery. So was the lottery a bad idea?

Honestly, it was not the first time it was happening in India. The first Maruti 800 customer was an Indian Airlines employee who got the privilege by a lottery, while the rest with the moughals of the 80’s with money and even political power had to wait. What was different now was that there were options for the customers who did not wish to wait and try a hand with lottery. The exit barrier was low and it actually did not matter much to just let go.

Teething trouble: Once bitten, twice shy- Indian markets today are ruthless in this regard. While the world was waiting to hear how the Nano performed in the real, sporadic cases of the car catching fire sank the interests even more. ‘Nano should be offered with a fire extinguisher’ spread like a wild fire and didn’t help the cause. In any category, it takes ten times the effort to win back a customer. While the competition was cutting down prices, offering warranties and making the markets tough, the hazards of fire was damaging.

When I see the new ad from Nano with the youthful feel, all I wish for is that let this one click and the fortunes of the Nano move in the right direction. I also read that Girish Wagh after a small disappearing act is back on the job. Let the new management divert the future of this car to greater heights and away from which is closer to its name.