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Cross-badging of cars: Best of the lot

Cross-badging of cars: Best of the lot

BT receives scores of responses to its case studies. Below is Best Of The Lot the best one on cross-badging of cars (April 28, 2013)

BT receives scores of responses to its case studies. Below is Best Of The Lot the best one on cross-badging of cars (April 28, 2013)

Tanaya Saha (tanaya@iimidr.ac.in), Indore

The cross-badging strategy relies mainly on the brand value of a product. However, the similarities of the physical features override the value proposition shared by different products. It questions the rationality of the customers. In India, crossbadging is used for optimising cost. It has given importance only to the manufacturers and the preferences of consumers have been left out.

To make a strategy competent, it is necessary to maintain a demand-supply equilibrium. The cross-badging strategy has failed to maintain this equilibrium and so became ineffective. In order to make cross-badging a success in India, Indians should be made aware of the value proposition of different brands. For a branded car, an Indian never wants to go for huge opportunity costs and so he buys a car with equal facilities at a low price or from a brand with which he is acquainted. Creation of a sustained brand image takes a long time. An international brand will primarily have to build trust among Indian consumers and make Indians aware of its value proposition. It is only then the strategy of cross-badging will become successful in India.

Tanaya Saha wins a Harvard Business School Press pocket mentor