Branding strategies Bajaj Auto.

and Hero Honda Motors

Presented by: Pritpal Singh Saqib Nassu Kavish Sharma Dharmender Gahlot Danish Kawatra

COMPANY PROFILE Bajaj Auto Ltd



The Bajaj Group is amongst the top 10 business houses in India. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest twoand three- wheeler manufacturer Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. In 1959, it obtained license from the Government of India to manufacture two- and threewheelers and it went public in 1960. The company is headed by Rahul Bajaj, which is worth more than US$1.5 billion.

Hero Honda Motors Ltd

  

Hero Honda Motors Limited, was a joint venture between the Hero Group of India and Honda of Japan. It has been referred to as the world's biggest manufacturer of 2wheeled motorized vehicles. Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda company India. The company is founded and headed by Brijmohan Lal Munjal. Toshiaki Nakagawa (joint managing director) Pawan Munjal (Managing Director & CEO) are key person for Hero Honda Motors Ltd.

PRODUCTS/BRANDS
           

Bajaj Auto Ltd Pulsar DTS-i Pulsar 220 DTS-i XCD DTS- Si 125 XCD DTS- Si 135 Platina Platina 125 DTS-Si Discover 135 DTS-Si Discover DTS-Si Avenger DTS-i Kristal DTS-i Commercial vehicles

Hero Honda Motors Ltd CD-Dawn CD-Deluxe Splendor Plus Splendor NXG Super Splendor Passion Plus Passion Pro Glamour Glamour PGM F1 Achiever CBZ Xtreme Hunk Karizma Karizma ZMR Pleasure

BRAND EQUITY


 

According to The Economic Times Brand Equity Indias most trusted brands survey the ranking are: Hero Honda 33 Bajaj Auto 100

The Product brand



Bajaj Auto & Hero Honda does product branding for their premium products such as Pulsar 220 and Karizma ZMR. Positioning Statement

The Product brand



Both the bikes are very sporty and targeting the youths who are into biking. Advantage: It reduces risk as if a particular brand fails other brands remains unaffected. One could easily manage and cater to various classes. Disadvantage: It becomes expensive to do branding and advertising for individual brands

    

The Line Brand Strategy



 

 

The line involves the exploitation of successful concept by extending it but by staying very close to initial products. Advantages are: It reinforces the selling power of the brand and creates a strong brand image. It facilitates distribution for each line extension. It reduces launch costs.

The range brand strategy



The range brands bestow a single brand name and promote through a single promise a range of products belonging to the same area of competence. Hero Honda follows Range brand strategy for Karizma, Splendor, Passion and CD brands. Bajaj Auto follows Range brand strategy for Pulsar and Discover brands.

The Source Brand strategy



 

The products have their own brand name. They are no longer called by one generic name like scooter, bike, moped etc. Bajaj Auto and Hero Honda have moved on to source brand strategy to a great extent. For example earlier scooters were known by Bajaj and bikes by name of Hero Honda. Now all their products are having their individual brand names such as Hero Honda Splendor, Bajaj Discover DTSI etc.

BRAND ROLES IN BRAND PORTFOLIO

 

Importance of Brand Portfolio :

To increase market share.  To attract consumers seeking variety who may otherwise have switched to another brand.  To increase internal competition within the firm.  To yield economies of scale in advertising, sales, merchandising and physical distribution . 1. Flankers 2. Cash Cows 3. Low-end entry level 4. High-end entry level

Flankers


Flanker brands are called fighter brands and are positioned with respect to competitors brands so that more important flagship brands can retain their desired positioning. Fighter brands need to be designed in such a way that they should not eat away from their higher priced comparison brands or referents and it must be designed so cheaply that they reflect poorly on these other brands. Example Bajaj XCD DTS-Si/ Passion--GlamourAchiever

Cash Cows


Some brands may be kept around despite dwindling sales because they manage to hold on to a sufficient number of customers and maintain their profitability with virtually no marketing support. These cash cow brands can be effectively milked by capitalizing on their reservoir of existing brand equity. Example - Pulsar 220 DTSi and Pulsar DTSi, Avenger DTSi/CBZ xtreme, Hunk, Karizma, Splendor.

Low End Entry level



The role of low-priced brand in the brand portfolio often may be to attract customers to the brand franchise. Example - Platina/CD Dawn & CD Deluxe

High-End Prestige


The role of a relatively high-priced brand in the brand family often to add prestige and credibility to the entire portfolio. Example Pulsar 220/Karizma ZMR

BRAND IDENTITY PRISM New Pulsar 220 DTS-I

Physique: Good looking 2 wheeler with a feel of sports bike.  Personality: Masculine, Cool, Competitive, Attitude  Self Image: Fastest Indian, Definitely Male


BRAND IDENTITY PRISM Karizma ZMR

Physique: Stylish 2 wheeler with a feel of sports bike.  Personality: Charismatic, Sporty, Energetic, Attitude  Self Image: Winner, Above all, Brave.


BRAND EXTENSION Line Extension



Line extension strategy involves launching various new products variants in the same category under the same brand name. For Bajaj its Pulsar > Pulsar DTSi > Pulsar 180 > Pulsar 220 DTSi. For Hero Honda its Karizma > Karizma ZMR

COMPANY EXPERTISE
      

Hero Group Expertise in two wheeler Cycle> Mopeds> scooters> Bikes The hero group used its two wheeler expertise to make other two wheelers apart from their basic product. Bajaj Expertise in Engine. The company is pioneer in developing new technologies like DTSi and is now moving on to developing ultra low cost car.

Thank You