Business
Updated : Mar 19, 2018, 05:03 AM IST
Pre-launch campaigns are getting bigger by the day for auto companies looking to drive out of slowdown. Unlike earlier, most car makers are pooling in resources to create buzz much before the launch of a new model.
The latest launch in Motown – Honda Cars India's multi-purpose vehicle Mobilio – was displayed in 42 malls across Mumbai, before it was launched on June 23. Similar exercise was carried in other cities too. The company engaged comedian actor – Kapil Sharma – for a series of pre-launch ads that were released on YouTube.
While big on digital platforms such as Facebook and Twitter, teaser campaigns on television, outdoor advertising, etc are becoming a regular feature for most car companies as they near a big launch.
Tata Motors, which is struggling to maintain its volumes in the passenger vehicle segment, is betting big on its yet-to-be-launched compact sedan Zest.
Making sure that there is enough excitement in the market, the company has been creating awareness about its new product along with its new 'Revetron' engine through various media like television commercials and social media.
"Such exercises not only help in creating excitement within the customer base, but also work positively for channel partners. Such initiatives raises the confidence of the network," said Puneet Gupta, associate director, IHS Automotive Sales Forecasting.
The company will start pre-bookings of its cars with a down payment of Rs 21,000. Dealers, which have been struggling to sell Tata Motors cars, are suddenly seeing excitement and are gearing up for the big launch. "There is a good response for the car. The car looks good and we are seeing some positive signs," said a Mumbai-based Tata Motors dealer.
Not surprisingly, car companies set aside a large portion of the launch budget for pre-campaigning. Going by the initial bookings numbers, the strategy has worked well for the auto manufacturers, said the experts. With all that hype created before the launch of Mobilio, the Japanese car manufacturer managed 6,000 pre-bookings.
"The idea is to create excitement in the market and pull customers to the showroom," said Deepesh Rathore, director of Emerging Markets Automotive Advisors, a Delhi-based research firm.
One of the longest campaigns that took the market by storm was for the launch of Ford India's compact sports utility vehicle EcoSport. The company started showcasing the car at various platforms at least a year before it was launched last year. The response was tremendous as the company received almost 30,000 bookings within two weeks of the launch.
"Things are getting bigger and bigger. Several millions are spent on developing a product and livelihood of a lot of people is dependent on the success of the model. Hence, it is necessary to try to get as many eyeballs as possible, which helps in building momentum," said Rathore.
Though car makers are virtually are adopting this strategy for every new launch, the multitude depends on the product and the segment. "It becomes bigger when a manufacturer is entering a new segment, especially in a mass volume category. However, I don't remember seeing much hype before the new City was launched this year, as it was an already established brand in the market," said V G Ramakrishnan, managing director, Frost & Sullivan South Asia.
"If we see the launch of our models like Grand i10, Accent or even Elantra, this strategy has definitely worked for us. The engagement of customers and channel partners starts well before the launch. A good portion is kept aside from the marketing budget for the launch," said Rakesh Srivastava, senior VP - sales and marketing, Hyundai Motor India.
"Creation of awareness and leading them to buy a product is a challenge. Hence, companies are getting more and innovative with such campaigns. However, it depends on product to product," he said.