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Marketing & Branding

 

DROPPING THE BRAND NAME BAJAJ

Created by : NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 07 25 2010 12:26:18 +0000
Industry : AutomobileFunctional Area : Branding(Sales & Marketing)
Keywords : business strategy sales & marketing corporate decision
Activity:  481 views;  last activity : 08 12 2010 18:52:34 +0000
 
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INCREASE IN BUSINESS Vs DECREASE IN BUSINESS
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The business magnet and the auto giant Bajaj patriarch, Rahul has finally decided to change the direction in deciding to drop family name as a Brand for their products. Further he has applauded the move made by his son Rajiv. Appreciating Rajiv, who is the MD of the firm while addressing the shareholders in its annual report for 2009-10; Rahul said it pleased him that the company is leveraging its key brands to maximize profits.

The senior Bajaj said while products may generate market share, brands provide pricing power and create higher profits. The senior Bajaj has agreed with his son Rajiv. Anyhow, this is a shift to his earlier opinion about the changes brought by his son on the Branding front.

His son Rajiv has said the Bajaj name will be done away with from the motor cycles as the brand has been diluted, having presence from electrical to insurance to automobiles. Further Rajiv has expressed that Bajaj is a bit like a zero and he has also opined that products like Pulsar, Boxer, and Discover have become brands by themselves, as a result of which the Bajaj Brand has become more like a garage.

The father however has ruled out dropping the Bajaj brand, as opposed to an idea toyed by Rajiv. As of now the answer is no. But after 10 years, who knows? As of now the Bajaj name will be there- the senior Bajaj said who was also quite vocal in expressing unhappiness when his eldest son decided to bring down curtains to the scooters, thus ending the Saga of Humara Bajaj in December last year.

But Rajiv maintains that he cares less for the solution from emotions and he believes more in the MAGIC OF LOGIC.

Now friends whether the brand name BAJAJ will be dropped and in case it is dropped what are the impacts on business? INCREASE/DECREASE in business. Therefore please share your opinions.
By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  07 25 2010 12:26:18 +0000
 
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I think this is not a good move at this time. Bajaj as a brand has a good image among the people. But dropping its mother brand is not good for the business. They can create another brand under the umberla of bajaj which will help in positioning that brand in a better way......       
By Sunita Mohapatra, Product/Brand Manager, Tata Motors  07 26 2010 09:37:10 +0000
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You are right Mr.S.Balu.

 
By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 08 12 2010 18:52:33 +0000
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I think Bajaj is a brand which is in market due to its brand name....certainly its business will decrease with dropping or modifying its real brand name.........
By Gurpreet Singh, Team Associate, BA Continuum Solutions  | 08 12 2010 17:18:57 +0000
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Change is the rule of Nature & in todays world it Change Is So Important to Grow
By Manish Dhanotia, M.Sc student, Panjab university Chandigarh(UNIGIS)  | 08 03 2010 08:13:00 +0000
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THE DROP OF THE NAME BAJAJ WILL HAVE NIL OR VERY MINIMAL IMPACT ON THE SALE OF 2 WHEELERS.FOR QUITE SOMETIME THEY WERE MORE FOCUSING ON NAMES LIKE PULSAR,BOXER ETC AND NOT ON BAJAJ.SO THIS MOVE TO DROP THE NAME BAJAJ HAS BEEN PREPLANNED AND DONE IN A PHASED MANNER.
By s.baalu , Consultant, XYZ LTD  | 08 02 2010 11:49:16 +0000
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Exactly you are right Mr.Varatharajan.

 
By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 07 31 2010 15:12:57 +0000
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I dont't think change in the company's name like Bajaj is ever gonna affect it's business. just because the company's name is changed that does not mean the value it stood for will be lost it most probably will create new values in newer customers and people. Eg a famous road in Chennai had it's name changed from Mount Road to Anna Salai, it hasn't lost anything, old and local Chennai people still call it Mount Road affectionately while newer immigrants may choose either names. When a tired and worn out brand is going over for a change in brand marketing, it would be by far the best move for Bajaj. remember Bajaj customers are mainly College guys and Middle class commuters. A proper shift and handling of the company's image and name will do it a ton of good, provided they get it rite!
By Varatharajan , Analyst, VI  | 07 31 2010 14:29:06 +0000
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Dear friends from this side, in my opinion the business will grow.

When a business has been affected?

In case of poor quality & services, financial constraints, eroding customer base, bad image/creditability etc.

Here the Bajaj groups doing/performing well and having very good reputation with customer base to a greater extent and enjoying the market share. During these period only they are taking some strategic move to foster their business. Suppose they take such a decision during difficulties, definitely the business will be affected. BUT NOT AT THIS GOOD PERIOD. See people will think that Pulsar or Discover are manufactured by Bajaj Auto Ltd only. All their companies will bear the name of BAJAJ,. but the products.. Hence, their business will not be affected.   

 
By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 07 31 2010 13:38:14 +0000
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It will have some effect initially. but in the long run it will increase business. Because people will identify the product by it's name.
By Shashi Kumar U, Manager accounts & commercial, Mazda Concrete Products Pvt Ltd  | 07 28 2010 10:55:40 +0000
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Financial Institute UTI Bank did it successfully and that too with growth. Here this company has got products, so this is more easy. Current market scenario suggests the change in name is a need.
By Arvind Dorwat, Sr.Executive - Cleint Servicing, Paradigm Plus Marketing Communications Pvt. Ltd.  | 07 28 2010 10:38:44 +0000
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i think it will not affect the business, as now people know them by their performance and reputation (quality of their product) not just by their name,

in fact a new brand can help them to expand even faster,,

it is same as our Indian rupee has got a new symbol,,,

the change in brand name can also help them in exploring globally..
By Santosh A. Jadhav, Sr. Officer Sales  | 07 28 2010 06:08:02 +0000
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As other brands like Discover have become focused and important, the dropping of the main brand name from the business strategy perspective may not hamper the business in the long run.

As it is a calculated move to drop the name, the new strategy will be taking into account how to position the other existing brands and also maybe create new brands which will become popular and important in the future.....
By Badri N Srinivasan, Head - Quality, Valtech India Systems Pvt. Ltd.  | 07 27 2010 10:40:02 +0000
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The business will not be affected and moreover as Mr.Rajiv has rightly said that the products like PULSAR, BOXER, & DISCOVER have become best brands by themselves. Hence in my opinion, since he is making a good strategic move in right direction, the business will flourish. It is very important to note here the statement made by Mr Rajiv, that he cares less for the solution from emotions and he believes more in the magic of logic.  


By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 07 25 2010 12:55:04 +0000
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If we remove the brand identity there will be decrease in their profits because goodwill and brand identity of any company are like two wings of a bird.
By Ankush Nandy, Business Executive, JMD Organization  | 08 12 2010 18:02:43 +0000
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HMMMMMM people said "CHANGE IS THE RULE OF NATURE",bt cahnged doesnt means that u will remove ur identity,u cnt remove the thng fr which u r in ths stage of business.It is lke tht ki u r changed every thng except ur name.U can change every thng but can't changed ur name .
By shashant singh, STUDENT, B.E\B.TECH/VITS-VINDHYA INSTITUTE OF TECHNOIOGY JABALPUR  | 08 12 2010 15:11:00 +0000
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Actually only time will provide the answer for this. But definitely there will be an impact on sales. The brand name of bajaj is such a powerful one that it will impact sales. This can be offset only with heavy advertising spends on the individual brands of Discover and Pulsar which are the first two brands from which the bajaj name would be dropped.

I dont forsee much change in the sales of Pulsar because it has established strongly as a brand in its own way. The problem would happen in the other bikes brands of Bajaj including the new product launches which might not have the bajaj umbrella to bank upon.
By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 08 12 2010 14:03:11 +0000
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NO way................ how someone think over it that dropping the brand name will result as increase in business. Even today the theme song of Bajaj which comes before 2 decades HAMARA BAJAJ....... HAMARA BAJAJ is recall by the people who wants to purchase any byke. You can't drop the brand name which was the number one brand at once upon a time. And still Mr. Bajaj Jr. is doing very well & trying to get the same place & market share once again. Ya, but this time by diversified their business... to drop the product I.e. Scooter segment.
By Vinay Kumar Keshri, Marketing Manager, TUV Austria (India)  | 08 03 2010 05:46:55 +0000
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Dropping the brand name BAJAJ is not a good move.

I want to give one ad example : It was something like this - " Bajaj ki hava chali to chalti hi jaye Bajaj .. Bajaj".

There is good will for the name BAJAJ, so it is not a wise decision taken by Mr. Rajeev ???? Bajaj/Pulsar---------
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 07 31 2010 15:00:19 +0000
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i think it will effect the brand value bcoz now Bajaj has won the trust of people & after leaving this name again they will have to establish their brand along with facing the emerging challenges of business world.
By Tejaswi Dubey, CEO, Aastha HR Solution/www.aasthahrsolutiuon.com  | 07 28 2010 09:50:55 +0000
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People have shared an emotional bond with "HAMARA BAJAJ", which has helped the sales. By dropping the name 'Bajaj' this advantage will be lost which will mean low business volumes.
By Saket Jain, Country Manager - Service Excellence, APC by Schneider Electric  | 07 27 2010 17:11:43 +0000
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I agree with you Sunita, Bajaj; as a brand has its own identity. Promoters might be thinking that once scooter business is over they can easily change the name of brand, but over the time bajaj is also known for its motorcycle business and other subsidiaries. It is very difficult to build a name like bajaj which has a very gud recall value.
By Anupam Pandey, Asst. Manager/Manager (Technical), Indian Air Force  | 07 27 2010 16:57:52 +0000
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We all know that there was a decrease in business of bajaj,

And now dropping the brand name would again show -ve impact,

If we study of Godrej than we'l come know How it was improved by new products & innovative media adds & hiring the right proifessionals

So what i think is there should be major surjery/change in the Bajaj system and not brand name...as the name has it's own hold
By Ravindra Kamate, Service Engineer  | 07 27 2010 16:32:57 +0000
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this will give loss to buiseness,any how good idea with lesspain.
By satishk.shukla , Director on Board, saurabhagro tech pvt.ltd.  | 07 27 2010 04:16:07 +0000
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