Shivaji Dasgupta
The advertising campaigns for Tata Neu are in full swing and they will certainly play their part in determining its growth pattern. However, as the super app unfolds, it is increasingly apparent that a multi-tier branding system will hold the decisive key.
Canny convenience
But first, why this mammoth foray is destined for success. A no-brainer alibi is the Tata Neu Pass—the handsome reward structure is a sustainable magnet for Indian customers. Also, the convenience of a single window interface, eliminating the need for downloading multiple apps. This will facilitate experience alliances as the customer truly evolves — a holiday at Taj Maldives will require new clothes and accessories, medical insurance and top-ups, airline services and more. The integration of all these offerings, in a predictive capacity, will facilitate demand and indeed brand preference, out of canny convenience.
Gojek, the Indonesian success story, uses ‘Go’ as the prefix for most service level offerings and there is deliberate synergy in the messaging and the same is true for Wechat, with the exception of ‘Moments’, the social feed. Thus the investment in a unified value system is immensely scalable and lends effortlessly to line extensions, as long as the delivery levels are delightful. Loyalty and referrals can be built organically without expensive sops to attract and retain folks.
Which is exactly contrary to the Tata Neu model, essentially a mega hypermarket of the skies, albeit for home brands only. Currently, the customer must first decide on the product/service brand with category considerations, as every player in the portfolio has its own unique set of battles. Then, she must choose the super app over alternate sources of transaction, whether the brand app, aggregators or even, familiar offline modes. Thus, the decision making must happen at two levels, which complicates the process with the only synergy being the loyalty point. The current advertising approach is not helping this cause, as customers don’t care about brand families anymore.
Tech-aided CRM
So, to win the complex multi-tiered branding system, here is a customer-centric logical approach, operating from the core tenets of CRM. The first task is to upgrade existing users of the individual brands to the super app, using the additional loyalty points as the core hook. Then to use AI tools to get them to cross-purchase on Tata Neu, using the incentives, eventually to systematically subdue the individual entry points and migrate all to the super app, with all advantages transferred seamlessly, and only in rare cases like airline loyalty will users have multiple identities. Then, create a referral system, aided by air cover advertising. If done well, this can be a potent tool for inspiring consumption, as an entry to a health product can lead to a subsequent luxury buy.
Reports suggest Tata Neu is headed towards a resounding success or a serious failure. To succeed, it must imaginatively adopt the finest brand management practices, on a foundation of technology-aided customer insights.
The author is MD, Inexgro Brand Advisory