India is a marketer?s challenge. While the market size makes one go drooling, unravelling the sheer complexity and heterogeneity and addressing those with beneficial outcomes is a mindboggling exercise. However, as the Indian car market is evolving, there are many attempts to find motivations to purchase. According to the findings of the 2007 Auto Need Segmentation and Brand Health study by TNS Automotive, a market information provider, emotive needs such as status, potency and control are responsible for over 55% of the car purchases in India.
TNS Automotive represents the responses of more than 2,500 new car buyers providing over 7,500 evaluations. The company claims that it is the only initiative of its kind that has strived to understand the latent motivations behind purchase of all available brands in India. TNS did the first study of this kind in 2004 and in the past two years the needs have gotten more sharply defined and the relative positions of the existing brand have been altered significantly by the entry of new models like the Maruti Suzuki SX4, Mahindra Renault Logan and Hyundai Verna.
The study identifies six need segments in the Indian automotive market: Interestingly, it is the Liberation segment, representing a segment of people who seek excitement and fun from their car brand and want to feel young and youthful?has grown the most over the last year. It has grown from 8% in 2006 to 13% in 2007. Car models that have ?sporty? interiors, ?sport/trendy? design coupled with advanced features like auto transmission and navigation systems are likely to find appeal with this target group.
?The challenge that marketers face in the country, in positioning their brand to appeal across a country as vast and diverse as India, is highlighted by the clear regional differences thrown up by this study,? said Pradeep Saxena, senior vice-president, TNS Automotive, India. ?Customers in the North want to express their overt masculinity, power and ruggedness through the vehicle, whereas southern customers are keener on pleasing their family and fitting in with their society. A desire to demonstrate a practicality and efficiency in brand choice is prevalent among customers from the East. On the other hand, customers from the Western region, seek to express their authority, status and accomplishment through the cars that they buy,? he added.
The key drivers for the six need segments in India are summarized below:
* Potency buyers are motivated by a need to feel attractive and sexy and appear dashing/dynamic; product styling, which high tech/futuristic while being tough and rugged, appeals to this group.
* Status buyers are motivated by the need to be successful/accomplished, influential and powerful/authoritative; the personality that they want to exhibit is one of sophistication and style.
They seek a product design that is powerful and imposing, capable of driving at high speed and equipped with the latest entertainment gadgets and luxurious interiors.
* Control buyers have a personality that is rational, risk averse and focused. Hence, the primary gratification that they seek from their car is to feel in-control and efficient/competent. Apart form good resale value and easy maintenance, they seek durable engine and extra seating capacity.
* Security buyers perceive the car as a support mechanism, which will make them feel good about themselves. This in turn makes them feel secure/ protected. The buyers in this segment are largely conformist in nature, loyal, dependable and have a sensitive/gentle personality.
* Comfort buyers strongly believe that life is not about personal success but more about bonding with their family and society. They take pride in being providers with a heightened sense of duty and responsibility.
This segment of customers stays away from radical styling, choosing a more practical and elegant design and seek cars that offer good fuel economy and low maintenance costs.
* Liberation is the smallest of the six need segments, but which has grown significantly over the past year?these buyers have a carefree, enthusiastic and upbeat personality. This segment of buyers, like to feel excited, young and exhilarated when using a car.
Newer brands in the market which have been successful have managed to clearly position themselves to cater to a particular need segment. For instance, Mahindra Renault Logan, finds strong appeal with the Potency segment, by catering to the need for feeling attractive, daring, bold and macho. It would be interesting to see how Tata Indigo, Hyundai Accent, Ford Ikon and Maruti Esteem react to this onslaught from Mahindra Renault.
Conversely, Honda City?which has ruled the midsize segment long before the launch of the Maruti SX4, has managed to stand its ground by appealing strongly to a more dynamic and ambitious user personality traditionally associated with the premium imagery of the Honda brand. The SX4 on the other hand, has assumed a more multifaceted ?Complete man? personality, with style and sensitivity. Hyundai Verna and Chevrolet Spark, two other prominent launches in the category, are yet to find a strong and distinct appeal from any need segment.