Cars buyers demand individuality and assertiveness from car brands: TNS Automotive

Company Brief

New Delhi, November 15, 2007

According to the findings of the 2007 Auto Need Segmentation and Brand Health study by leading market information provider, TNS Automotive, emotive needs such as status, potency and control are responsible for over 55% of the car purchases in India.

Representing the responses of more than two thousand five hundred new car buyers providing over 7,500 evaluations, this study conducted by TNS specialist division, TNS Automotive, 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. Unlike traditional brand research studies where customers are questioned directly about their purchase reason, this study utilizes a proven psychological framework to uncover the motives that drive brand selection.

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.

Needs such, as potency and liberation are more expressive, while control and security need are more subdued. Similarly, status need is about self-assertion and dominance, whereas comfort is more about affiliation and work-life balance orientation. Brand successes are being built on the understanding of these nuances at an emotive level and this is where a strong brand connect needs to be forged.

The highly successful ‘mass’ brands enjoy acceptance across different need segments due to a lack of sharply defined alternatives. This strength of any mass brand, can also make it vulnerable to share erosion arising out of strong and sharp positioning by existing brands or new entrants to the category.

The newer brands in the market, which have been successful, have managed to clearly position themselves to cater to a particular need segment. The Mahindra Renault Logan, find strong appeal with the Potency segment, among the buyers of this 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 since long before the much anticipated 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.

“It is apparent from the need segment drivers that a majority of emotional needs are about what a consumer wants to feel himself and the personality that he desires to project to the outside world based on the car he/ she uses,” comments Muder Chiba, Executive Vice President, TNS India. “ As marketers we have to appreciate that there are deep underlying reasons which drive brand choices and we need to address these instead of just focusing only on functional benefits centered around car features."