Hamara Bajaj – not any more!
The mother brand Bajaj may cease to exist. It looks like a season to retire iconic elements from the Bajaj family.
Earlier this year, there was an announcement that Bajaj Auto would be ‘retiring’ the famed Scooter. Many our age would remember that the scooter was once a prized possession and people would wait for even 6 months after paying the entire amount upfront to get their own. And they were not allowed to choose the colour of their scooters. That of course was the pre-liberalization era. Around the 90s the scooter volumes dipped with the Indian consumer taking to motorcycles (read bikes) like fish to water. And the liberalization era meant pushing to consumer to consume more than (s)he can afford today. We started living today with tomorrow’s money and bikes were a better buy than a scooter which had to be tilted at a particular angle to start sometimes.
There was an article yesterday in afaqs about the Bajaj brand name being dropped from their new-age bikes. It looks like Pulsar and Discover will be the ‘platforms’ on which bikes will be sold from the Bajaj Stable. It looks like the brand name Bajaj will soon become history at least with respect to the two wheelers category.
Little has been discussed as to what they will do to the other brands / products with the Bajaj brand. Their 3-wheeler brand will probably stay as is and so will all the other products. But for now, let us stay with the two wheelers. Do I agree? What could be the pros and cons as Ted Mosby of HIMYM puts it? Just that I am using the computer as against a yellow legal pad that Ted prefers!
What I like?
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The argument of each brand having its own promise and a target audience is valid. A Pulsar buyer that way is clearly differentiated from a Discover consumer. A quick look at the article in afaqs will show the actual differentiation too – to a large extent. By having such a clear distinction and with features in these products catering to these distinct individuals, Bajaj would have a winner.
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One brand’s failure will not affect another. For some strange reason if Discover fails, but people continue to like Pulsar, then the negative rub-off from one will not affect another.
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Bajaj Auto will cease to be two-wheeler makers any more. They will become two-wheeler marketers and brand owners. This is a larger role since the core focus of the corporate office will be the consumer. This way the chances of finding the needs from the consumer would be relatively high rather than guessing from inside.
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Advertising and communication gets more targeted (location and TG). Even as I was writing this, I figured that I have been exposed to more Pulsar ads than Discover. Their media team seems to be working it right. This is no means to say that I am irreverent, arrogant etc, which Pulsar is supposed to stand for. But I figure that Discover is more the ‘commuting’ solution and hence would be targeted more in Tier 2 & 3 cities and towns. Thus conveniently keeps away from any excessive spillage.
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Accounting and accountability will become easier with this clear distinction. By having this distinction, it would be like having separate brand managers for each brand who would be accountable for their category. Such categorization will help in having a clear business plan for each product category and will also help in operational efficiencies with a bit of coordination. The factories can work on a clear forecast from each brand owner and hence planning towards better cost and operation efficient workflow can be easier.
What I don’t like?
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Flip side of point 2 amongst what I like: One’s success will not help another. There is always some goodwill that one brand from a stable that gets carried over to another. There is also a possibility of migration of the consumer from one category to another. This distinction may not help in such migration unless there is a semblance of both brands belonging to the same stable.
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Legacy of the Bajaj brand will be lost at least with Auto business. No need to add more to this point!
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This distinction may create various niches which may be difficult to manage in the long run.
But in all, I think the new management team at Bajaj Auto is willing to experiment and stick their necks out by trying new things. This is a commendable effort since the old economy companies were not known for such harsh but required kind of decision making.
Verdict – I support! 
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Nanda,
The house of brands strategy might work for a business house with unrelated product categories. But Rajiv Bajaj’s company is a single category player. why wouldn’t they want to get the cumulative benefit of all the successes? Agreed that BAJAj brand has too much of a baggage but the answer may not lye in discarding it. Imagine Toyota giving up the mother brand and marketing Corolla’s and innovas etc. Would it be the best approach. I doubt.But a bold approach it is, i must add.
Senior – Thanks for the comment.
Looking at it ‘purely’ from a consumer point of view, Bajaj is not just into Auto. There are home appliances carrying the same name. Probably that was the thought process in taking such a decision. I of course cannot imagine the Innova without a ‘Toyota’. I wouldn’t buy it. But where Bajaj stands today, it is a bold step. Give it another 4 years and we would know the result. And 4 years is good enough time to experiment and roll-back if necessary.
ADAG was a created brand after split dear , dont foget , we can still make brands succeed !