As we all familiar with the brand Cielo sometimes before, is dormant today.
What actually pushes this brand to such a quagmire?
Cielo was the brand owned by Daewoo motors India limited, was a part of the $ 65 billion Daewoo Group founded in 1967 in Korea. The group diversified into general trading, construction, machinery, automotive, ship building electronics and tele communications. Cielo was launched in India in July 1995, since there is no option for the Indian customers in the mid size segment except Maruti esteem. Within a short span of time Cielo saw a large volume of bookings from the customers. This made a intense competition for Maruti. Soon after the situation turned upside down that all the bookings made by the customers for Cielo were cancelled and it faced a huge problem.
Circumstances:
Daewoo motors saw a intense competition and higher customer expectations in terms of quality and performance in developed markets. Hence the company decided to penetrate in the emerging markets where the demand for automobiles was expected to increase in the future; it launched the brand Cielo in India.
Strategies used:
Promotional campaign, called the ‘Diwali Bonanza scheme’ for corporate, offering one Cielo free on purchase of every ten cars. This campaign was initiated by the marketing head of Korea, who had no idea about the Indian auto industry and the target market.
Frequent changes in positioning. The car was positioned as ‘technology with aesthetics’ which was later moved on to a ‘premium family car’ positioning followed by “value-for-money” car.
Consequences:
The customers began to look the brand with a suspicion because of the way it had been marketed
The Cielo had been promoted as a feature-rich, luxury family car. But the frequent change in the positioning made confusion among customers. Since there is a gap between a premium car, a family car and value for money car. Cielo fails to grab a good image for themselves in the minds of the customers.
The Nexia was promoted as being an upgraded version of the Cielo. The move failed badly because the customers failed to see any worthwhile additions to the earlier Cielo model.
Cielo fails in “Positioning”. Even though Daewoo is one among the first multinational player to enter into the Indian auto market only after Maruti Udyog Limited, improper market study leads to the fall of the brand Cielo.
Will we learn a lesson to concentrate upon giving importance to “Positioning”?
Other brands of the company: Matiz – small car segment
What actually pushes this brand to such a quagmire?
Cielo was the brand owned by Daewoo motors India limited, was a part of the $ 65 billion Daewoo Group founded in 1967 in Korea. The group diversified into general trading, construction, machinery, automotive, ship building electronics and tele communications. Cielo was launched in India in July 1995, since there is no option for the Indian customers in the mid size segment except Maruti esteem. Within a short span of time Cielo saw a large volume of bookings from the customers. This made a intense competition for Maruti. Soon after the situation turned upside down that all the bookings made by the customers for Cielo were cancelled and it faced a huge problem.
Circumstances:
Daewoo motors saw a intense competition and higher customer expectations in terms of quality and performance in developed markets. Hence the company decided to penetrate in the emerging markets where the demand for automobiles was expected to increase in the future; it launched the brand Cielo in India.
Strategies used:
Promotional campaign, called the ‘Diwali Bonanza scheme’ for corporate, offering one Cielo free on purchase of every ten cars. This campaign was initiated by the marketing head of Korea, who had no idea about the Indian auto industry and the target market.
Frequent changes in positioning. The car was positioned as ‘technology with aesthetics’ which was later moved on to a ‘premium family car’ positioning followed by “value-for-money” car.
Consequences:
The customers began to look the brand with a suspicion because of the way it had been marketed
The Cielo had been promoted as a feature-rich, luxury family car. But the frequent change in the positioning made confusion among customers. Since there is a gap between a premium car, a family car and value for money car. Cielo fails to grab a good image for themselves in the minds of the customers.
The Nexia was promoted as being an upgraded version of the Cielo. The move failed badly because the customers failed to see any worthwhile additions to the earlier Cielo model.
Cielo fails in “Positioning”. Even though Daewoo is one among the first multinational player to enter into the Indian auto market only after Maruti Udyog Limited, improper market study leads to the fall of the brand Cielo.
Will we learn a lesson to concentrate upon giving importance to “Positioning”?
Other brands of the company: Matiz – small car segment
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