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Old 15th January 2011, 14:37   #1
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Default Bajaj to drop its name- the VW way!

The idea, pursued aggressively by Chairman Rahul Bajaj’s elder son, is not too different from the strategies used by fast moving consumer goods giants like Hindustan Unilever, ITC or Procter & Gamble.

But it would certainly be a first by an Indian automotive company, which otherwise relies heavily on family names to promote its vehicles (Tata, Mahindra and TVS).

“Actually I don’t want that (Bajaj) name. We have already started the process so today on a Pulsar, the Bajaj name is seen only on the engine. The same is the case with Discover. Our three-wheeler has Bajaj in small font while the initial ‘RE’ is in much bigger font. One day, We will drop the Bajaj name from there also completely”, adds Bajaj.

“Consumers know that the product is coming from Bajaj, just like I know my Audi is coming from Volkswagen. But there is no Volkswagen on the Audi product. This creates a perception that there is something more in the product” Bajaj adds.

Although the communication exercise through sales outlets to its prospective buyers will begin in three months, the company has already phased out the Bajaj branding from most of its products.

“I will make all efforts to make the bike a Pulsar and not a Bajaj. I will have Boxer, Discover and Pulsar and tomorrow KTM. There is no Bajaj name on any of them. People will still remember this comes from Bajaj, but this too will go away with time. After five to 10 years, customers will remember Pulsar and Discover and not Bajaj”, he further adds.

A model dealership-based new plan will be launched in some regions where existing dealers can experience the changes before they invest to employ a similar transformation.

The entire exercise will cost the 600-odd dealers and 1,100 service centres around Rs21 crore collectively. The upgradation programme will also be extended to the next generation of motorcycles comprising KTM, Kawasaki and Bajaj models that would be launched this year.

Bajaj to drop its name


I loved the bajaj branding on my bike (Bajaj Pulsar rather than Pulsar!) and would feel sad to see this go. Can bajaj pull it off? Hero Honda also seems to be exploring the same model now that they have lost Honda from the brand name.
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Old 15th January 2011, 14:53   #2
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Default Re: Bajaj to drop its name- the VW way!

A rather unique strategy, I must say. Amidst companies that rely on their legacy to a large extent for their survival, Bajaj has taken a different route. Innovative thinking for sure, however the proof of the pudding is in the eating !
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Old 15th January 2011, 14:56   #3
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Default Re: Bajaj to drop its name- the VW way!

A stupid move. We know Audi is from the VW group and not VW. Audi is a separate brand. They don't sell cars with just A4, A6 etc. All of them have the Audi badge. Similarly Skoda which is also from the VW group.
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Old 15th January 2011, 15:10   #4
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Default Re: Bajaj to drop its name- the VW way!

They are reducing the monetary value of the brand as a whole. Took years to come to this state so it would be tough to just rely on the model is what i feel.

First time hearing something like this and the comparison to AUDI is ridiculous
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Old 15th January 2011, 16:44   #5
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Default Re: Bajaj to drop its name- the VW way!

maybe inspired by the movie 'inception' :-)

The Audi analogy is weird and I think it an overkill to promote Pulsar, Discover, etc. as top-level brands like Audi, Skoda, etc.
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Old 15th January 2011, 17:16   #6
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Default Re: Bajaj to drop its name- the VW way!

Quote:
Originally Posted by androdev View Post
maybe inspired by the movie 'inception' :-)

The Audi analogy is weird and I think it an overkill to promote Pulsar, Discover, etc. as top-level brands like Audi, Skoda, etc.
Interesting move. I would not go so far as to write it off. It makes sense once a strong brand to model link is established in the consumer mind which is the case here. The comparison is not out of line.
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Old 15th January 2011, 17:34   #7
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Default Re: Bajaj to drop its name- the VW way!

Just to add- Its not just Pulsar and Discover. Soon, premium brands like KTM will also come in this exercise. If its just limited to Pulsar/ Discover i dont think the exercise is worth it (Even otherwise, it remains to be seen how the whole exercise turns out!).

May be, Bajaj wants to introduce KTM/ kawasaki bikes without calling it a different brand. For eg: Duke instead Bajaj KTM Duke.

But- we'll surely miss this-
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Old 15th January 2011, 17:38   #8
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Default Re: Bajaj to drop its name- the VW way!

The comparison he has taken to justify his thought sounds too kiddish. Not sure whether all of what he has said is published here, but if it's only this is what he has said. Then, either he is not able to articulate his thoughts well or he is being just plain silly, which I don't expect from a businessman of his stature. Either ways, a big thumbs down to Mr. Rahul Bajaj.

Last edited by CliffHanger : 15th January 2011 at 17:45.
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Old 15th January 2011, 18:35   #9
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Default Re: Bajaj to drop its name- the VW way!

It is actually quite strange. If they drop Bajaj, then what are they going to put up on their outlets

"Pulsar, Discover, Boxer and Sons"

It still needs an entity name for the various models. Else they will be kids of an unseen dad.
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Old 15th January 2011, 18:50   #10
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Default Re: Bajaj to drop its name- the VW way!

Seems a stupid idea. Years down people will forget the Bajaj name for sure. But they might never be able to relate products with each other. Imagine if a new bike was launched, a revolutionary one. The Bajaj name on it will make it easier to sell it. It'll be a disaster in my opinion.

As for the comparison with Audi; give me a break.

Also, all of the FMCG companies have started to show their corporate logo at the end of the advertisements to promote a unified brand identity.

Last edited by smashnerd : 15th January 2011 at 18:52.
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Old 15th January 2011, 18:55   #11
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Default

Interesting!

But I dont think VW wants to drop its full name. In fact, specially for India the badging says 'Volkswagen' instead of the usual VW

Its KFC that has fully dropped its original name because of the unpopular F word.
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Old 15th January 2011, 19:43   #12
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Default Re: Bajaj to drop its name- the VW way!

I am guessing, the reason for this being, Bajaj as a brand is used by the family (after split up) which still appear on Goods, like Hair oil, Bulbs etc.
IMO as your brand starts climbing up the value chain, you need to be very clear, that the Brand name is not used on other goods, or completely drop it.
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Old 15th January 2011, 19:54   #13
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Default Re: Bajaj to drop its name- the VW way!

Really hard to decipher what they are planning at this stage. Read up on a few articles on this on the net. Here is one qote

"The company has decided to overhaul its distribution set-up and rename all its consumer touch points to just Pulsar or Discover, its two most successful bikes. Dealers are already on board on the idea"

Source: Business Standard

Bajaj to drop its name
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Old 15th January 2011, 19:59   #14
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Default Re: Bajaj to drop its name- the VW way!

Sad to see that the name Bajaj will go soon. Its a sort of an amateurish move by the Bajaj kids who seem to undo everything that is conventional.They exited the scooter segment contrary to the Big B's (Shri Rahul) wishes, set up a plant in Himachal in a tax haven again contrary to the Big B's wishes.
Now dropping the Bajaj name is another such move maybe against the Big B's wshes.
Rolls Royce, Ferrari, Pontiac,Ford, Chrysler,Toyota,Suzuki, Harley Davidson, Mercedes Benz and many many other are all after the founder's or their family names.
So whoa Pulsar, Discover, Platina, Boxer and so on ? Ridiculous!!
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Old 15th January 2011, 22:53   #15
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Default Re: Bajaj to drop its name- the VW way!

A very intelligent move. They should have done it long back. The name bajaj is also related to 3 wheelers, home appliances and what not. The pulsar's brand value will always be pulled down as long as Bajaj name is associated with it.

Analogy to Audi is just an analogy and there is nothing childish about it I believe. Perceived value of an Audi is more than a Volkswagen. He is trying to achieve the same here. Moreover delinking Pulsar with bajaj can allow them to sell the brand later on without diluting the goodwill of the brand.
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