Saga Brands Extend ‘War’ to Nigeria - 2008-10-20

When in September 1985 Proton, a Malaysian auto brand, flagged off its first offering, Saga, little did it envision the controversy that awaited it in terms of brand niche. Today, Proton and Foton, a Chinese auto company, are battling over who controls the Saga brand as both outfits eventually hit the Nigerian market (courtesy of the 2008 Lagos Auto Fair) in what analysts have described as the mother of all fights to control the pocket of Nigerian auto consumers in that category.

Actually, this is not the first time Proton is coming to Nigeria’s shores. In the early ’90s, the brand was already foraying into the market here. However, as witnessed at the recently concluded fair, the real battle between Foton and Proton has just begun and the bone of contention is none other than the Saga brand.

According to Anthony Swart, an expert in brand management, a brand should be unique and creatively formulated to have a distinct image in the market. But with recent revelations coming from the stables of Proton and Foton (even the names sound strikingly similar!), it appears this basic brand observation has not been adhered to. The question that naturally comes up is: Who is trying to steal the name from the other?

As to the original owner of the name, Saga, Proton says Foton has no credential to back up whatever claim it may lay on the originality of the name as it (Proton) has solid evidence in that regard. M2 gathered that, apart from being the first to market the Saga brand, the name actually originated from an incident that happened even before the first Saga model was produced. Before the production of Proton Saga, a contest was held in Malaysia to choose the name of the first national car, and the name Saga was chosen from the winner of the contest, Ismail Jaafar, a retired military soldier.

According to Proton, “When asked why he chose this particular name, he replied that ‘saga’ (Abrus precatorius) is a type of soft, fragile but productive seed commonly found in Malaysia, and that the Proton Saga 1.3 litre engine is as strong as the saga seed.”

Proton Saga was later launched in September 1985 by Malaysia’s then Prime Minister, Mahathir bin Mohamad. The first Proton Saga that rolled off the production line was presented to the Malaysian National Museum as a symbol of the beginning of the Malaysian automotive industry.

Early Saga models were powered by SOHC 8-valve 4-cylinder petrol engines sourced from Mitsubishi, available in both 1.3- and 1.5-litre displacements. Both engines were available with a 5-speed manual transmission, but a 3-speed Mitsubishi Tri-matic automatic was available with the 1.5-liter engine in 1987.

Proton is not relenting in its positioning strategies to keep Fonton at the lower rungs of the ladder. On March 5, 2007, the brand launched the 50th Merdeka Anniversary Promotion in Malaysia, where it announced new price of the Proton Saga Advertising campaigns for the Saga Aeroback used a notable rendition of Justin Timberlake’s hit single SexyBack, with the lyrics changed to “AeroBack.”

While Proton Saga is being marketed in Nigeria by Automal, the franchisee, Fonton Saga is being marketed by Asian Motors. The presence of both brands at the Lagos Auto Fair aroused the curiosity of visitors and analysts are adopting a wait-and-see attitude since both local dealers have yet to engage each other in any controversy over the issue.

Proton Saga’s market has witnessed rapid growth not only in Asia but overseas as well. Industry watchers however say the success may not necessarily be replicated in the Nigerian market, where it has to compete with Proton Saga, which has already been established in the Nigerian market.

Foton Saga was founded by Beiqi Foton Motor Company of China on August 28, 1996. The company is state-owned and listed on the floor of the Chinese Stock Exchange while its business operation extends in various regions and sectors.

A major edge which Foton appears to wield over Proton is its onslaught in the truck segment of the market, which has won it the patronage of notable brands like Guinness Nigeria PLC. It is believed that the brand would leverage on the route already carved with that segment to ambush Proton.

Even though Foton is seemly concentrating on its trucks, an inside source who pleaded anonymity told M2 that the brand planned to flood the Nigerian market with its sport utility Saga. This, no doubt, would trigger off the long awaited duel between the two Saga brands now seeking a foothold in the Nigerian auto market.