Parallely, the technologically customer orientation which
advanced products we are is reflected in our vision.
I am happy to present to you this special
Brand issue of Ashley News – an exclusive
and privileged communication only to Ashok
Leyland employees.
The new Logo unit is part
of the new visual identity of
international the Company which is only
a symbolism for the changes
that make up the new Ashok
Leyland. This symbolic change
recognizes the changes we
have effected over a period
of time in line with the brand
values that make up the DNA
innovative of Ashok Leyland.
What has changed?
Investments over the years
has made our manufacturing
technology contemporary.
We have consolidated
our R&D capabilities by
speedy building an infrastructure
that is world-class and a
talent-pool that is attracting
successful professionals from
international automotive
industry.The development
of the highly successful BS2
and BS3 versions of the H
engine is a celebrated success
value creator of our in-house team.We
are determined to build on
our tradition of pioneering
technology that moulds
the industry by adding to a
long list that includes tractor
trailers, multi-axle vehicles,
CNG buses and many more.
ethical Numerous initiatives are on
within the Company to sustain
a work environment that
supports innovation.
inducting into our range, is
fuelling our global ambitions.
Plans are on to set up a bus
body unit in the Gulf region, to
meet the increasing demand
which already makes us the
market leader for the standard
buses. You are also aware of
our entry into the advanced
European market through the
acquisition of Czech company
AVIA’s truck business. This
acquisition also gives us
access to contemporary
technology.
Along with ‘international’ and
‘innovative’, the third value
of Brand Ashok Leyland that
we seek to strengthen, is
‘speedy’. Speed is a function
of internal efficiencies, of
processes, of the deployment
of IT.To us, speed means
not just responsiveness but
proactiveness, energy and
dynamism.
These strengths will help us
offer competitive products
with the best value-to-cost
equation, supporting the
fourth brand value, namely,
value creator. Our product
philosophy has always
revolved around giving
products that best meet the
needs of the market, products
that incorporate the most
appropriate technology so as
to maximize value addition
to our customer’s business.
Across the marketing function,
every effort is made to
enhance our insight into our
customer’s business and
needs, so as to maximize
value creation for the
customer.
That brings me to the fifth
value, namely, ethical, which
is nothing but a reiteration of
doing business with fairness.
These are not new values for
Ashok Leyland. They have
been the strengths we have
built over the years and have
still some way to go in some
areas. To that extent, there
is an aspirational aspect to
some of them. As you would
have noticed, one common
thread through all these, is our
Customer is the pivot around
which products are designed
and delivered. That has not
changed. Nor has the flywheel
in the logo which has come to
symbolize trust and reliability.
One common feature of
all good brands is their
consistency and predictability.
How do we achieve that?
We need to observe utmost
discipline in implementing
the visual identity, with no
deviations or shortcuts, so
that any part of the Company
presents the same face to the
outside world. That is not all.
All our processes, systems as
also the attitude, behaviour
and response of every Ashok
Leyland employee should fully
align with the brand promise,
viz., the five brand values. I
am sure you remember your
high school science class and
what you learned about the
molecule. A molecule is the
tiniest form of matter – yet, it
exhibits all the unmistakable
characteristics of the matter.
A Company is made up of
individuals, infrastructure,
technology, products and
their interplay facilitated by
systems. When every part
of our Company shows
characteristics and behaviour
in line with the brand promise,
then each of us can count
being part of a great brand.
We should have the courage
and honesty to apply the brand
template and change, correct
and fine tune, till we achieve
the perfect fit.
Living the brand values gives
purpose to our work and
brings the joy and pride of
achieving together, besides
building a healthy balance
sheet. Be a part of the new
Ashok Leyland where many
things are changing for the
better. But the best of its core
will remain constant.
Yours sincerely,
R Seshasayee
 4 6 16 Ad campaign [10]
News [17]
MD’s
Vision Living international Contest [21]
Mission the Brand Engagements Think about it [22]

Ashok Leyland
Employees’ Journal
November 2006

At the new Ashok Leyland,

many
many things
things are
are changing
changing for
for the
the better.
better.
But the best of its core
will
will remain
remain constant.
constant.
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Ashley News / November 2006 02

 Breathing new life into
Brand
Mumbai-based Vyas Giannetti Creative (VGC), the brand consultants,

cover story
1.a perception survey 2.formalizing mission, vision and values
roped in TNS Mode for a perception survey as a diagnostic tool. The research
covered all the stakeholders: employees, potential employees, dealers,
customers, financial community and media – in all, close to 1000 people in a

3.redesigning the visual identity 4.mass communication

dozen cities / towns.
The research showed that the Company’s products were regarded as
The four-step process followed for the brand revamp:

reliable and durable – they were seen as eco-friendly, and requiring minimum
maintenance. At the same time, the Company was perceived to be traditional
and slow paced.
Remember, these are perceptions. There exists a vast gap between how the
world sees us and what we really are (and want to be seen as). Clearly, a full
picture of the changes that make up the new Ashok Leyland had not reached
most of the stakeholders. A confirmation of this was the pattern in the scores
from the various stakeholders: those who have experienced Ashok Leyland
– including employees and highly interactive customer groups – gave us high
scores. Those who were away from us gave us low scores and indefinite
responses, though an overall positive. Clearly, the more they knew, the better
they thought of us. Hence the prescription: communicate more consistently.
Brand communication is a promise. Before making that promise, it was
important to fine-tune the brand, by defining and sharing the organizational
mission, vision and values. So that everyone knew what was expected from
each. How else can we offer a uniform experience to our customers, our
business associates?
While it is not everything, the visual identity is the calling card of the corporate
brand. While redesigning the visual identity, Vyas Giannetti was guided by
the very high recall and goodwill enjoyed by the ‘L’ logo, which explains the
continuance of this element in the contemporary designs of the new visual
identity. “An effective corporate identity needs to uniquely create a differentiating
and value-based image which must be focused and consistent. That is what
we have strived for in the development of the Ashok Leyland identity”, explains
Preeti Vyas Giannetti, Chairwoman and Chief Creative Officer.

Time was ripe to call in JWT to help communicate the new Ashok Leyland, with our track record lending
credibility and our future plans creating expectations.
Effective mass communication revolves around a single-minded proposition. In brainstorming sessions
involving the senior management and various functions, the quest was for a credible yet unique and
memorable way to present the Company. Recollects U Jayraj Rau, GM & Senior VP, JWT: “The sessions
threw up a lot of approaches, but one aspect stood out against all the others. It was the passion with which
the engineers talked about the products and the engineering behind them. We explored this further and
found that this passion could encapsulate what we were trying to communicate – right from the pioneering
spirit of Ashok Leyland to the relentless pursuit of excellence for the future”.
This was logical. The research had amply shown that the Company was respected for its engineering
strengths. So credibility was no issue. How about making it unique and memorable?
“We built on this idea and took a little leap to make the communication more evocative”, explains Rau.
“We decided to project the Ashok Leyland engineer as a quirky professional who sees engineering in
everything. His passion borders on the obsessive. He is constantly looking for ideas in the everyday situa-
tions around him. Be it in a movie hall or a cricket match or a music concert, he only sees engineering”.
The result is a three-ad campaign featuring
the passionate Ashok Leyland engineer.
Preceding that are two advertisements to
keep the world abreast and aware of Ashok
Leyland’s wide product range and its major
achievements.

 Ashley News / November 2006


Cover story
“There is always a choice
“We have to be about the way you do your work,
proactive, we even if there is not a choice
have to gain about the work itself.” So say
speed. We the employees of the famous
Pike Place Fish Market - the
need to develop
subject of numerous inspira-
within, to be
tional books and training videos.
able to project
This organization is so widely
ourselves as cited because its employees
an international work from daybreak in a fish
company …” market, yet seem to be highly
– R Seshasayee, MD, committed to the fulfilling idea of
at the Communication making their customers happy.
Meet. For brands to endure and
continue to deliver value to all
stakeholders, it is necessary
that employees identify with the
organization and its goals. By
enjoying what they did, employ-
ees at Pike Place Fish made their
organization achieve an initially
impossible sounding goal of be-
coming “world famous”.
In one of the most vi-
ciously competitive and serious
service industries in the world,
the guys at Southwest Airlines
are crazy enough to buck all
the rules and to have enjoyed
year-on-year profits for most of
the company’s history.
They were the first airline
not to issue seats, just tickets.
It starts with
identifying the real
meaning of products
and organizational
purpose.
of hearts, all people want to
make a difference. They want
to know that they contribute
to the success of an organisa-
tion. The people at Southwest
Airlines work there because
they believe that frequent, low
cost flights allow people all over
the United States to do things
They once even resolved a le- they never dreamed of doing.
gal dispute over the right to use Result: these guys aren’t in
a slogan with a televised arm the airline industry. They’re in
wrestling competition between the business of making people
the two CEOs. They have a happy for a living. That’s their
party every day to celebrate purpose. That’s the idea they
something. And when the air- own. That’s what gets them up
line went through hard times, in the morning.
the entire workforce asked the Ultimately, brands are sus-
Board for a pay cut. tained from the inside and ‘the
An inspiring idea they vouch inside’ is about organisational
for: Find a purpose you’re culture. The culture of an organ-
crazy about. At Southwest, isation is now being recognised
they believe that in their heart as a key brand differentiator.
By harnessing the power of technology and teamwork,
we make our products better. Better in terms of safety,
comfort, economy and ecology.
For, we believe that the purpose of technology is to
enhance the quality of life. Today and tomorrow.
By satisfying the customer through appropriate and
better technology options, we are able to forge abiding
relationships with our stakeholders – our customers,
business associates, shareholders and our people. And
make these relationships rewarding.
We also bridge distances - we help move people and
products. Aiding life and life style changes.
We are engineering your tomorrows
Ashley News / November 2006 02
 • While designing
the Coca-Cola
bottle, the design
time to build a meaningful and of challenging oneself to strive had to be so

If there is any one single
characteristic and attribute of
a brand that provides sustain-
able competitive advantage, it
is heritage.
We all know, buy and ex-
perience brands that have a
great heritage. For some of us,
it is Philips, Amul or Disney. For
others, it is Cadbury’s, Sony or
Surf. What makes these brands
great, what they all have in com-
mon, is that they have had the
A 58-year-old brand, Ashok Leyland enjoys a strong recall
value. Can the past provide a solid base for the present?
relevant past - a heritage.
Heritage is born in, and
nurtured, over time. Custom-
ers need time to buy and use
the brand, time to make the
brand a part of their lives, and
time to endow the brand from
one generation to the next.
Heritage speaks of a traditional
way of life that is of value to
present and future genera-
tions. It speaks of inheritance,
of shared experiences, and of
a common history.
Disney’s brand story is
about the ideal community
with clean streets, high moral
values, happy families and a
future where you never grow
old, you never get sick, and you
never die. Nike’s brand story is
one of maximum performance,
cover story
for the very best and calling coherent that
that achievement, perfection. should a bottle be
The common stories of our smashed into any
heritage live in our minds and number of pieces,
hearts. When a product, a any of the shards
classic film or an individual suc- would recognizably
cessfully attaches themselves be from a Coca-
Cola bottle!
to one of these stories, they
gain entrance into our minds • In an open-
and hearts. And when they air experiment
are in our minds and hearts, mounted by John
they take on the stature of Schully, VP of Pepsi,
7 out 10 picked
a brand. And brands create
Pepsi as the better
differentiation and distinction.
drink, in blind tests.
They produce a choice. You
With the glasses
cannot be chosen unless you labelled, 7 out of
are a choice. 10 “found” Coke
the better drink.
Simplistically put,
Excerpts from an essay in the product gave
www.allaboutbranding.com
Coke a 30% market
share, its brand
value alone another
40%!

Heritage as a Master Brand Builder

Brand image is a
cumulative result of
A brand is a mixture of attributes, tangible and intangible, symbolised in multiple experiences:
the product experience
a trademark, which, if managed properly, creates value and influence.
(the looks, the finish, the

Brand
‘Value’ has different interpretations: from a marketing or consumer functioning), employees
perspective it is ‘the promise and delivery of an experience’; from a business (appearance, behaviour,
perspective it is ‘the security of future earnings’; from a legal perspective it is lifestyle), the premises
‘a separable piece of intellectual property’. Brands offer customers a means (how clean? how
to choose and enable recognition within cluttered markets. green?) the vehicles of
communication and not
“The greatest misconception about a brand is that it is a product, something tangible that
to forget, all its visual
representations from
you hold in your hand and put on your foot or drink. Those are manifestations of a brand, visiting cards to factory
albeit temporary ones. The brand is the thing that exists above and beyond all that. The gates. Each leaves a
physical manifestation of brand is a really big misconception. Another misconception is trace of the corporate
that people think branding equals advertising or branding is marketing, and that it’s the
DNA. Each inconsistent
representation puts a
marketing department’s job to do the branding. The fact is, branding is everyone’s job” doubt in the viewers’
–Scot Bedbury, mind. Like differently
world-renowned brand consultant known for working wonders to brands like Nike and Starbucks. designed notes of the
same denomination that
make you wonder, “Is
this a fake?”

 Ashley News / November 2006

 So, are there tangible pay-offs to this intangible entity
called a ‘brand’? A case study of INTEL stands proof to
branding

The ‘premium’ a brand can offer

In the early 1990s, a court gave microchip
processor Intel’s rival AMD the right to copy the
company’s microchips - an unforeseen byprod-
uct of a licensing agreement between them.
Managers were faced with the challenge of find-
ing new ways of differentiating Intel’s chips from
those produced by its competition. Competing
on price was not an appealing option.
Branding computer chips itself was a new
idea, but reaching the consumer with a brand
statement was totally unconventional, especially
in an industry where differentiation had always
been fought on technical superiority.
However, Intel’s managers understood the
psychology of a growing number of first-time
PC buyers who wanted reassurance that their
investment in a computer was a safe one. The
“intel inside” sticker on each PC communicated
quality and power - exactly what the consumers
needed.
Intel’s brand was to stand for a safe choice.
The message fell on receptive consumer ears,
but consumers were not the only beneficiaries
of Intel’s logic. Intel had also recognised that
many lesser-known manufacturers would be
interested in buying the company’s premium-
priced microchip and displaying the Intel logo
on their products and advertising.
While the brand on the computer, often an
IBM clone, might not be well known, consumers
recognised the Intel sticker that had come to rep-
resent assured quality and computing power.
Market research indicated that consumers
were willing to pay a premium for PCs contain-
ing Intel’s chip. By late 1990s even big names
such as IBM and Hewlett-Packard had joined
the bandwagon. Intel’s logo appeared on the
computers of more than 1,600 manufacturers The ‘H’ Series engine
and its chips held a 75 per cent market share. logo on an Ashok
Intel’s campaign also led to benefits for PC Leyland vehicle is
retailers. Consumer preference for the brand in-
the visual extension
of the promise of
creased stock turnover for computers carrying the
unmatched fuel-effi-
company’s logo. Computer retail trade thus shared
ciency offered by this
in the payoffs from a well-recognised brand. world-class engine.
As Intel’s example shows, the logic of brands
can be compelling across the value chain. Effec-
tive brands facilitate consumer choice, provide
retailers with added incentives and help differenti-
ate a company’s products or services.
In the final analysis though, a brand-differ-
entiated business must produce higher returns
or else the branding exercise is futile. The good
news for such businesses is that strong brands
do confer such superior returns. For example,
Interbrand, a company that specialises in valu-
ing brands, places Intel among the world’s four
most valuable brand names (after Coca-Cola,
Microsoft and IBM) and estimates the brand to
be worth nearly $40bn. This is the highest value
The ‘brand wisdom’ in these
ever seen for an ingredient brand; it is proof that
pages are culled from various
when fully understood and exploited, brands sources.
have tangible payoffs.

sensory branding
Singapore Airlines
has demonstrated the
psychological importance
of the senses by carefully
creating and maintaining
an on-board sensory
environment. By appealing to
all senses (music, fragrance,
manner and demeanor
mingle in the cabin to evoke
the airline’s image), the airline
has created a holistically
branded flying experience.
England’s Barclays Bank
introduced freshly brewed
coffee to its branches with
the deliberate intention of
making customers feel at
home. The familiar smell
relaxes the bank’s customers,
stimulating emotions not
typically associated with such
an establishment.
Kellogg’s has invested
in the power of auditory
stimulus, testing the
crunching of cereals in
a Danish sound lab to
upgrade their product’s
“sound quality.”
Can we project the same face of Ashok Leyland at
every customer touch point? Can the outside world
feel one brand experience?
Ashley News / November 2006 02
 1948 – 1987 Pandit Jawaharlal Nehru per-
suaded Raghunandan Saran, an
The first four industrialist, to enter automotive
decades manufacture
 In 1948, Ashok Motors was
set up for the assembly of Austin
cars. With equity participation by
British Leyland, Ashok Leyland
commenced manufacture of com-
mercial vehicles in 1955.
Access to international tech-
nology enabled the Company to
introduce a host of trend-setting
Products earn a reputation for reliability and durability
1987 – mid 90s Transnational Hinduja Group
took over the principal overseas
The growth shareholding of the Company
phase in 1987, infusing vital capital
and technology. Emboldened,
Ashok Leyland’s long-term plan
to become a global player by
benchmarking global standards of
technology and quality was soon
firmed up
The platform for Global Standards. Global Markets.
mid 90s till now  Expansion of in-house R&D
infrastructure including some
The efficiency first in India facilities, in tandem
phase with continuous strengthening of
talent pool
Took in its stride the accelerated
emission norms, utilising in-house
engine R&D capabilities
 Company-wide IT initiatives
bring in speed of operations as
well as connectivity
Internal supply chain initiative -
Project OSCARS - creates a ‘pull’
Myriad initiatives spurring all-round efficiencies.
The future Having made the manufacturing
technology and the innards of its
direction vehicles contemporary, catching
the winds of globalisation, Ashok
Leyland is on a ‘global’ quest:
• Acquired the Truck Busi-
ness Unit of AVIA a.s., based in
Prague
• Bus assembly unit in UAE
• Assembly unit in South Africa
in the offing
Atlas shrunk. Sail on …
 Ashley News / November 2006
product innovations in the country,
supported by product develop-
ment and marketing capabilities
• Multi-axle vehicles, tractor
trailers, double decker and vesti-
buled buses, power steering
 U n i t s a t E n n o r e , H o s u r,
Bhandara and Alwar became
part of a pan-India growth plan of
the Indian leadership
Tie-ups with international tech-
nology majors for engine and
gearbox technology
A state-of-the-art manufacturing
base set up at Hosur to roll out
international class products
 Anticipated growing market
demand and pioneered CNG
technology
 Production capacity up from
23,000 units in 1987 to 50,000
units in 1998.
environment (rather than ‘push’)
aiding in Just-in-Time culture
Various shop floor initiatives,
aimed at employee participation
and efficiency improvements,
create a flexible manufactur-
ing/assembly network tuned in to
customer needs
Model proliferation – products
that fit customers’ unique needs
Enlarged and deepened market
coverage, reaching new customer
groups – within and outside India
A whole new range of modern,
fully built, high performance vehi-
cles in line with emerging market
requirements
Plans for rapid expansion of
capacity beyond one lakh vehicles
per annum
Entry into new areas that go
beyond the core business of com-
mercial vehicles.
Battled formidable competition,
gaining and sustaining a 25% plus
market share
Withstood the unprecedented
business depression of the early
80s, proved its resilience – a qual-
ity that has stood the Company in
timeline
good stead in subsequent trying
times too
Made a habit of earning profits
and declaring dividends
International Quality Certifica-
tions:
• first automotive manufacturer
in India to receive the ISO 9002
Certification
• ISO 9001(1994) and QS 9000
(1998)
Set up a state-of-the-art Driver
Training Centre at Namakkal. Also
introduced innovative customer
support products that engage the
customer more comprehensively
(AMC, 24x7 Helpline)
 Management Development
Centre set up at Hosur
EVA positive since 2002-2003:
created shareholder value by
registering returns higher than
cost of capital
• Ashley Design and Engineer-
ing Services (ADES) in the area of
engineering services (developing,
testing and validating vehicular
designs and components)
• ACG Ashok Leyland (Auto
Components Group) targets USD
100 million in three years