In the slow lane

Why the Mitsubishi Montero doesn't find favour with Derby respondents.

Brand launches are always tricky business, even more so when they are from a niche market. The Mitsubishi Montero is a case in point. The premium sports utility vehicle (SUV) was voted a "not-successful" launch by 42 per cent of Derby respondents "" the highest figure for unsuccessful launches; 4 per cent declared it the least successful brand launch.

The Montero's launch in India could be a classic marketing case study, with perceived problems on the product, price and promotion fronts. First, the product. The Montero in India is the Pajero internationally. But Mitsubishi India had already launched the Pajero CRZ in 2002, and didn't want any identity crisis.

Hence the new name. But where the Pajero has received an enthusiastic welcome "" for the longest time, Pajero was synonymous with SUVs in India "" the Montero is still proving itself. The leather interiors and wood detailing is more dated than retro, say auto enthusiasts, and the diesel engine "" while easier on the wallet "" doesn't lend itself to as smooth a ride as the petrol Toyota Landcruiser Prado.

In terms of price, the Montero is equidistant from the Toyota product (Rs 40 lakh) and market leader Honda CR-V. But its Rs 30-lakh tag is pricey, believe auto experts, and Derby respondents echo the thought.

"The pricing needs to be more attractive, especially given the Pajero's cost," said one. For the record, at Rs 18-lakh plus, the Pajero notches up sales of over 100 units a month, while Montero sells 30.

"But the Montero is in a different league," explains an exasperated Soni Srivastava, general manager, corporate communications, C K Birla Group.

"For those who want a more affordable SUV, there is always the Pajero CRZ. With the Montero, we are catering to the demand for a true-blue SUV."

Which is why the Montero's promotion has played up the vehicle's off-road abilities and its rally pedigree. The "Heart and mouth" initiative showcased the SUV's capabilities: rally drivers took prospective customers and auto experts on long drives for a first-hand feel of the Montero.

Mass media, though, is another matter. Mitsubishi made a 45-second ad, but aired it only on one channel. There's been no press advertising, either. The company says mass advertising for a niche product isn't wise, but Derby respondents feel the deficiency strongly. "There's been no investment in brand building," said one.

To be fair to the Montero, the premium SUV market is niche. The emphasis here is more on comfort and style and prices are higher: Rs 10 lakh and above. Not everybody is in the CR-V league (sales of 200-250 a month) "" and no one expects it either.

"The market is not hot and I doubt if it will warm up," says a Maruti Suzuki official. Maruti's Vitara sells about 25 units a month and Maruti is satisfied.

"SUVs are usually not the first car and demand for a second car is low," says an analyst. Is that all that's wrong with the Montero, too? "Not really," the expert says. "Montero has just failed to interest its target audience."