The final battle?

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The history of brand infringements is nothing new to global markets but is certainly becoming much more popular in the evolving Indian auto industry. Especially when one looks at the history of infringements in the Indian market, the recent cases are surely an eye-opener. The latest to join the bandwagon is Mahindra-Renault India. Hyundai Motors India has filed a case against latter stating that the MRPL is planning a car named Sandero alleging that the rival was trying to cash in on its popular brand Santro, as the names sound similar. However, Renault India’s CEO Nalin Mehta issued a statement saying, “We have filed a reply requesting the honourable court for removal of Mahindra Renault’s name as the defendant. Mahindra Renault does not have any ownership of the Sandero brand. MRPL has never used or promoted the brand.” In fact, the history of infringement goes beyond Hyundai and Mahindra Renault India as the most talked about case have been the Bajaj and TVS’ infringement case under which the former filed a case against TVS for using twin-spark plug technology in its much-popular brand, Flame. Though, the court didn’t stop TVS from producing Flame, but it barred TVS from using the same technology, which was then allowed at a later stage. Experts believe that with passing time, the industry will evolve and such cases will keep on happening in one manner or the other.

Pawan Chabra

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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‘DOLING’ LOYALTY BONUS

National Rural Employment Guarantee Scheme

Without an iota of doubt, the National Rural Employment Guarantee Scheme (NREGS) is the single biggest and most ambitious marketing exercise ever launched by a political party in India; perhaps even bigger than the Garibi Hatao slogan and scheme of Indira Gandhi. Her daughter-in-law Sonia Gandhi is clearly the biggest beneficiary of this unique marketing exercise. When the NREGS (promising to provide employment to at least one member of a poor family in rural India) was launched in 2005, there were many sniggers about its intent and implementation. But the 2009 Lok Sabha elections clearly revealed that a brand can actually ‘buy’ consumer loyalty.

One of the reasons for the pan Indian upsurge in support for the Congress in recent times – despite anti-incumbency and many instances of poor governance – is the powerful message that the NREGS has sent to hundreds of millions of potential consumers (voters) across India. So what if a few instances of improper implementation of NREGS have come to light, consumers in Indian villages have realised that no other rival brand offers the value proposition that the Congress does through NREGS. The principal rival BJP has tried hard to resurrect a tired old slogan called Hindutva; but the voters decided that bread is certainly better than manufactured faith.

Do not underestimate the power of NREGS to ‘buy’ and sustain consumer loyalty. An impoverished family escaping starvation thanks to the scheme might well become a loyal consumer (of the scheme and therefore the Congress) for at least one entire generation. No wonder marketing strategists of India’s oldest political brand (of course, the Indian National Congress) look so cocky!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

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