Google+ Consumer Psyche: Kill a brand, indirectly

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Tuesday, August 19, 2008

Kill a brand, indirectly

When a company decides to introduce a brand does it check if it is killing any brand from its umbrella. I think sometimes the positioning is not that easy as it looks. It means that the brand may step into its own territory by positioning a brand in the wrong way.

Look at R1 and R15. Look at both of them. Both seem good, same in structure, looks and style. May be only Arun will be able to find the difference. I don't, at least not in the first look. Now there is a huge difference between the prices. R1 cost around 10 lakhs while R15 costs 1.08 lakhs. I agree that the consumer looking for R15 will be different from the one looking at R1. But if I am looking at R1 and have spent 10 lakhs on a bike while a similar looking bike from the same stable is available in the market for 1 lakh. Will I feel bad? I think Yes.

Arun has a different argument. R1 is not a commuter bike and floats a 1000 cc engine and is for the higher segment. Its a bigger bike and looks grand. If you look both of them together, you will find the difference. Only 2% of the entire bike segment and only 10 may be there in Bangalore. His argument is Yamaha brought R15 so that a middle class person will be able to own a bike that has all the features a sports bike should have, almost like R1. So it is ok to introduce R15 in to the market. About 400 bikes have sold out in Bangalore on the day of its launch. So if the market is paying so much to get the bike that 'looks' like R1 why not introduce it into the market and capitalise on the craze?

Seems a good argument. What do you think?
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