After a long time I felt strongly enough about a branding issue to actually write about it. I'm going to take two examples of iconic brands who seem to have got it all wrong - Taj Hotels and Jet Airways.
Let's take Jet Airways first. After its launch the airline was well positioned as a high quality, full service airline. Those of us who were not tempted by the short red skirts and general razzmatazz of Kingfisher were quite happy to fly Jet. On their international routes their service was truly world class. They also had a brilliant frequent flyer programme and all in all the airline looked like a world beater. Problems started after the launch of low cost airlines especially Indigo. All of a sudden Jet no longer looked so attractive. The 'always on time' proposition of Indigo coupled with 'no frills' flying was an instant hit with consumers and Jet began to look tired.
Their responses were bizarre to say the least. Having lent a helping hand to Sahara by buying them out when they were leaking cash copiously, Jet proceeded to rebrand the airline as 'Jet Lite' clearly implying that the airline was part of their B team. Then even more bizarrely, they launched the Teutonic sounding Jet Konnect with the Kon being pronounced as Con rather than Cun. Konnect was another B team for Jet where you had to pay for food and so on.
Consumers were understandably confused or should I say Konfused? Booking was not centralized and you never knew when you would fly Lite or remain Konnected. Coupled with the rise of Indigo, Jet rapidly lost market share and resorted to a number of anti personnel actions that further eroded its Brand Image.
In India, budget airlines do not have a markedly different cost structure than full service airlines. Apart from fuel and personnel the only difference may be in airport charges in places like Delhi who have a separate terminal for budget airlines. In addition, food costs are another factor but they really don't add up to much. In effect, there is no reason why efficiently managed full service airlines should be at a significant coat disadvantage to budget airlines in India. I think Jet Airways has finally realized this. The drop in fuel prices has also helped as margins are more attractive now.
Fortunately, Jet has gone back to its roots. A full service, efficiently managed, modern airline that may be marginally more expensive than Indigo but one that provides in flight meals and has an attractive frequent flyer programme is a good option. Excellent international sector services and the link with Etihad is also helping. Business class is another plus especially on long haul flights. Consistent brand experience helps tremendously in growing brand equity and consequently market share.
It appears, therefore that Jet has found it's way back from the morass it was getting into. Let's now look at another iconic brand that hasn't managed to do so yet and I wonder if they even realize that they are destroying value with their branding strategy. I am referring to Taj Hotels though the lessons may be equally applicable to a lot of other hotel chains.
The Taj Group of Hotels derives its equity from it's corporate parent, the Tata Group as well as its flagship property in Mumbai. There is a sense of old world charm, class and sophistication. Nothing noveau riche about the Taj! There is also an image of cosmopolitan Indianness. A person who may be a global traveler but is comfortable with his Indian roots. With India poised to take off in the global economy this would appear to be a wonderful place to be in.
Regrettably in their attempt to create sub brands such as Vivanta and Gateway, the Taj group runs the risk of diluting this core equity. Let me give you two examples:
Creating a powerful, emotive and meaningful brand like Taj hotels is very difficult and praiseworthy. It is far better to carry the Taj branding right up front rather than let it wither away. Everyone recognizes that hotels in different locations, catering to different customers etc will have different amenities different pricing and even a different ambiance. Not calling them Taj is to orphan them in a way which the group should not do in my opinion.
So there it is, one brand that has clawed its way out of the morass that it was getting into and another that does not seem to realize that its destroying value. Hope that changes soon!
Let's take Jet Airways first. After its launch the airline was well positioned as a high quality, full service airline. Those of us who were not tempted by the short red skirts and general razzmatazz of Kingfisher were quite happy to fly Jet. On their international routes their service was truly world class. They also had a brilliant frequent flyer programme and all in all the airline looked like a world beater. Problems started after the launch of low cost airlines especially Indigo. All of a sudden Jet no longer looked so attractive. The 'always on time' proposition of Indigo coupled with 'no frills' flying was an instant hit with consumers and Jet began to look tired.
Their responses were bizarre to say the least. Having lent a helping hand to Sahara by buying them out when they were leaking cash copiously, Jet proceeded to rebrand the airline as 'Jet Lite' clearly implying that the airline was part of their B team. Then even more bizarrely, they launched the Teutonic sounding Jet Konnect with the Kon being pronounced as Con rather than Cun. Konnect was another B team for Jet where you had to pay for food and so on.
Consumers were understandably confused or should I say Konfused? Booking was not centralized and you never knew when you would fly Lite or remain Konnected. Coupled with the rise of Indigo, Jet rapidly lost market share and resorted to a number of anti personnel actions that further eroded its Brand Image.
In India, budget airlines do not have a markedly different cost structure than full service airlines. Apart from fuel and personnel the only difference may be in airport charges in places like Delhi who have a separate terminal for budget airlines. In addition, food costs are another factor but they really don't add up to much. In effect, there is no reason why efficiently managed full service airlines should be at a significant coat disadvantage to budget airlines in India. I think Jet Airways has finally realized this. The drop in fuel prices has also helped as margins are more attractive now.
Fortunately, Jet has gone back to its roots. A full service, efficiently managed, modern airline that may be marginally more expensive than Indigo but one that provides in flight meals and has an attractive frequent flyer programme is a good option. Excellent international sector services and the link with Etihad is also helping. Business class is another plus especially on long haul flights. Consistent brand experience helps tremendously in growing brand equity and consequently market share.
It appears, therefore that Jet has found it's way back from the morass it was getting into. Let's now look at another iconic brand that hasn't managed to do so yet and I wonder if they even realize that they are destroying value with their branding strategy. I am referring to Taj Hotels though the lessons may be equally applicable to a lot of other hotel chains.
The Taj Group of Hotels derives its equity from it's corporate parent, the Tata Group as well as its flagship property in Mumbai. There is a sense of old world charm, class and sophistication. Nothing noveau riche about the Taj! There is also an image of cosmopolitan Indianness. A person who may be a global traveler but is comfortable with his Indian roots. With India poised to take off in the global economy this would appear to be a wonderful place to be in.
Regrettably in their attempt to create sub brands such as Vivanta and Gateway, the Taj group runs the risk of diluting this core equity. Let me give you two examples:
- The Taj property in Bentota, Sri Lanka dominates the most popular beach in Sri Lanka. The hotel has magnificent views and is laid out in a vast expanse of green area. It was clearly positioned to represent the Taj image in Sri Lanka as a gracious, Indian, cosmopolitan hotelier. Unfortunately the Taj Group has now branded the property as Vivanta. When I visited after a few years I was surprised to discover that local Tuk Tuks and the shops around have completely forgotten about the Taj and instead come up with a faceless Vivanta that does not mean anything.
- The most upscale Taj restaurant in Bangalore is the Karavalli, a coastal food restaurant rated at #3 on Trip Advisor is located, astonishingly, in the Gateway Hotel that is the lowest segment of Taj Hotels in Bangalore. It is not in the West End or the Residency (referred to as Vivanta in the new avatar) Gateway is not even referred to as a Taj Hotel!
Creating a powerful, emotive and meaningful brand like Taj hotels is very difficult and praiseworthy. It is far better to carry the Taj branding right up front rather than let it wither away. Everyone recognizes that hotels in different locations, catering to different customers etc will have different amenities different pricing and even a different ambiance. Not calling them Taj is to orphan them in a way which the group should not do in my opinion.
So there it is, one brand that has clawed its way out of the morass that it was getting into and another that does not seem to realize that its destroying value. Hope that changes soon!
