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Old 9th May 2010, 11:14   #1
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Default The Bajaj Story

A couple of articles in the newspapers last week caught my attention. One of them was about the fuel efficiency of the proposed Ultra Low-cost Vehicle between Bajaj and Renault. The article said Mr Rajiv Bajaj wanted to achieve a fuel efficiency of 30kmpl for the proposed vehicle and that targetting a specific price point at this time was not on the list of priorities.

There was another article about the brand name Bajaj, which said the vehicle brands would be identified as RE (autos), Pulsar, Boxer etc. and the name Bajaj would now assume less significance. In short Bajaj wants to promote the RE, Pulsar and Boxer as brands, not the brand Bajaj.

Makes me wonder if the ultra low cost vehicle project is losing its primary focus of being ultra low cost (where there was debate Bajaj could dip into its two/three wheeler parts bin for many of the car's parts to keep the costs ultra-low). Also would the promotion of RE, Pulsar and Boxer as brands dilute the brand Bajaj from the customers' minds? Hamara Bajaj has always been the catchline with all Bajaj products. If suddenly the brand Bajaj disappears, specially from the automobiles, would people slowly forget the brand Bajaj?
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Old 9th May 2010, 23:49   #2
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Dont think that would happen. But, we dont see a lot of bajaj (chetak)scooters these days atleast here in chennai. Plenty of pulsars though. Bajaj, is now known more for bikes than for its scooters. Maybe they want to be identified with cars more in the future? we just have to wait and watch!
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Old 10th May 2010, 00:06   #3
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Maybe the thinking behind withdrawing the name "Bajaj" from peoples consciousness is to delink the image of two wheelers and Bajaj which is a strongly embedded association.

Probably they want to use the Bajaj brand equity to promote their upcoming car which would be difficult if the first image which comes to mind would be a scooter or bike.

The TATA brand is still struggling with the commercial vehicle association and this could be a preemptive move from Bajaj.
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Old 10th May 2010, 00:15   #4
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Originally Posted by -NUT-case View Post
Maybe the thinking behind withdrawing the name "Bajaj" from peoples consciousness is to delink the image of two wheelers and Bajaj which is a strongly embedded association.

Probably they want to use the Bajaj brand equity to promote their upcoming car which would be difficult if the first image which comes to mind would be a scooter or bike.

The TATA brand is still struggling with the commercial vehicle association and this could be a preemptive move from Bajaj.
YaeJay, Bajaj have stopped manufacturing scooters, so all you will now be seeing on the road is Bajaj motorbikes. And if the re-branding exercise goes through, you may just see Pulsar bikes and Boxer bikes and RE auto rickshaws.

I would expect it to be a lot easier to build upon the brand name Bajaj has built with its scooters. Dropping the name Bajaj (or actually relegating it to the backseat), would actually take the only visible brandname away from people's memories. Out of sight is out of mind, as the saying goes. All in all I guess it is an unconventional thinking. Whether it succeeds or not, only time will tell.
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Old 10th May 2010, 01:09   #5
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General Motors had done the same thing, if I'm not wrong. Bajaj is doing it here in India.
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Old 10th May 2010, 07:10   #6
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A brand name communicates the promise of the direct & indirect benefits of the brand and over a period of time creates a strong perception in the mind of the consumer what they would expect from the brand. The "Bajaj" has been majorly used with the "Hamara Bajaj" campaign and the on hearing this tag line, the first thing that comes to mind is a Scooter. Whereas the promise of the brand "Pulsar" is a good looking bike for the young generation with latest in tech as well. So both brand names "Bajaj" & "Pulsar" are at variance to each other in terms of what they convey to the consumer. And since the way forward for Bajaj is Motorcycles, it might be more beneficial to them to retire the Bajaj name to the background for some time so that the old "Hamara Bajaj" association fades from the mind of the consumer. This will also help them to position the "Ultra Low Cost Car" with Bajaj brand name (w/o any scooter baggage) as and when it comes out.
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