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Comparison of Branding Strategies of Bajaj Auto Ltd and Hero Honda Motors Ltd Subject: Apparel Brand Management Submitted to: Submitted by: Mr. Vikram Parekh Ajay Kumar (M/FMS/08/02) Bhavik Gandhi (M/FMS/08/10) Gaurang Gupta (M/FMS/08/11) Ridhima Ranga (M/FMS/08/14) Sunil Kerketta (M/FMS/08/31) Fashion Management Studies Department, NIFT - Mumbai

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Page 1: Comparison of Branding Strategies

Comparison of Branding Strategies of Bajaj Auto Ltd and Hero Honda Motors Ltd

Subject: Apparel Brand Management

Submitted to: Submitted by:

Mr. Vikram Parekh Ajay Kumar (M/FMS/08/02)

Bhavik Gandhi (M/FMS/08/10)

Gaurang Gupta (M/FMS/08/11)

Ridhima Ranga (M/FMS/08/14)

Sunil Kerketta (M/FMS/08/31)

Fashion Management Studies Department, NIFT - Mumbai

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Comparison of Branding strategies

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Table of Contents COMPANY PROFILE ....................................................................................................................................... 3

Bajaj Auto Ltd ............................................................................................................................................ 3

Hero Honda Motors Ltd ............................................................................................................................ 3

PRODUCTS/BRANDS ...................................................................................................................................... 4

BRAND EQUITY .............................................................................................................................................. 5

Building Brand Equity ................................................................................................................................ 5

BRANDING STRATEGIES ................................................................................................................................ 6

The Product brand .................................................................................................................................... 6

The Line Brand Strategy ............................................................................................................................ 7

The range brand strategy .......................................................................................................................... 7

The Umbrella brand strategy .................................................................................................................... 8

The Source Brand strategy ........................................................................................................................ 8

Endorsing Brand Strategy ......................................................................................................................... 9

Mixed Brand Strategy ............................................................................................................................... 9

BRAND ROLES IN BRAND PORTFOLIO ......................................................................................................... 10

BRAND IDENTITY PRISM .............................................................................................................................. 11

New Pulsar 220 DTS-I .............................................................................................................................. 11

Karizma ZMR ........................................................................................................................................... 12

BRAND EXTENSION ..................................................................................................................................... 13

Line Extension ......................................................................................................................................... 13

Brand Extension ...................................................................................................................................... 13

COMPANION PRODUCT EXTENSION ................................................................................................... 13

COMPANY EXPERTISE .......................................................................................................................... 14

Reference .................................................................................................................................................... 15

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COMPANY PROFILE

Bajaj Auto Ltd

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a

wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home

appliances, lighting, iron and steel, insurance, travel and finance.

The group's flagship company, Bajaj Auto, is ranked as t h e w o r l d ' s f o u r t h l a r g e s t

t w o - a n d t h r e e - w h e e l e r m a n u f a c t u r e r and the Bajaj brand is well-known

across several countries in Latin America, Africa, Middle East, South and South East Asia.

Bajaj auto is based in Pune, Maharashtra, with plants in Akurdi and Chakan (Pune), Waluj (near

Aurangabad) and Pantnagar in Uttaranchal.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation

Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it

obtained license from the Government of India to manufacture two- and three-wheelers and it

went public in 1960.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

Hero Honda Motors Ltd

Hero Honda Motors Limited, based in Delhi, India is 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 2-

wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single

year.

“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.

Hero Honda has three manufacturing facilities based at Dharuhera and Gurgaon in Haryana and

at Haridwar in Uttarakhand.

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.

The company's most popular model is the Hero Honda's Splendor, which is the world's largest-

selling motorcycle, selling more than one million units per year.

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PRODUCTS/BRANDS

Bajaj Auto Ltd Hero Honda Motors Ltd

Pulsar DTS-i CD-Dawn

Pulsar 220 DTS-i CD-Deluxe

XCD DTS- Si 125 Splendor Plus

XCD DTS- Si 135 Splendor NXG

Platina Super Splendor

Platina 125 DTS-Si Passion Plus

Discover 135 DTS-Si Passion Pro

Discover DTS-Si Glamour

Avenger DTS-i Glamour PGM F1

Kristal DTS-i Achiever

Commercial vehicles CBZ Xtreme

Hunk

Karizma

Karizma ZMR

Pleasure

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BRAND EQUITY

According to The Economic Times Brand Equity India’s most trusted brands survey the

ranking are:

Hero Honda – 33

Bajaj Auto – 100

Building Brand Equity

Bajaj Auto Ltd Hero Honda Motors Ltd

Corporate

Name

Bajaj – Name very familiar for

scooters

Hero Honda – Introduced wide

range of bikes of Honda Japan

Logo Logo was

changed

No Logo

Change

Slogan Distinctly Ahead , (Pulsar –

Definitely Male)

Dhak Dhak Go (Fill it. Shut it.

Forget it) Pleasure (why should

boys have all fun)

Spokes Person Rahul Bajaj – Prominent Business

leader, Rajiv Bajaj

Pawan Munjal

Celebrity

Endorsement

NO but using songs of new released

movies for its lower income bikes

YES – Hritik Roshan for

Karizma, Priyanka Chopra for

Pleasure

Jingle Earlier Bajaj had Hamara Bajaj

jingle.

No specific jingle

Product life

cycle

Kills brands and product so often.

Eg. Caliber, 4S champion, Rave,

Chetak, Spirit, CT 100 etc.

Maintains brand portfolio. CD

100 now CD dawn & CD deluxe,

Splendor lasted for almost 2

decades etc.

Products Known for Scooters for years,

became 2nd

largest motorcycle

manufacturer in India

Known for its motorcycles over

the years & first mover

advantage

Service Modern service centre’s and finance

schemes through bajaj finserve

available across India

Modern service centres across

India

Promotion No corporate branding

Pulsar & MTV Stunt Mania No corporate branding

Sponsor ship – Hero Honda Series

(India Australia series), ICC

sponsorship, Hero Honda

Saregama – Zee TV, Herohonda

Karizma MTV Roadies

Technology DTSi Technology

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BRANDING STRATEGIES The New Brand Management – Kapferer has following branding strategies. Most of the

companies follow either of them or follow mixed branding strategies.

The product brand

The line brand

The range brand

The umbrella brand

The source brand

The endorsing brand

The Product brand As such Bajaj and Hero Honda are not having product brand strategies. Generally these strategy

is adopted by FMCG players. They create individual brands like P&G has brands like Ariel,

Tide, Head & Shoulders, Olay etc.

Bajaj Auto & Hero Honda does product branding for their premium products such as Pulsar 220

and Karizma ZMR.

Positioning Statement

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.

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The Line Brand Strategy

The line involves the exploitation of successful concept by extending it but by staying very close

to initial products. Example – L’Oreal offers structuring gel, lacquer, a spray etc. under brand

name of StudioLine. These strategy is more often practiced by cosmetic, FMCG etc. Bajaj Auto

Ltd and Hero Honda Motors Ltd. does not follow the line brand strategy. 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. Example – Clarins – Concept: the specialist

in beauty care.

Products – Creams, Solutions, fluids, Gels, Baths etc. and it has 3 lines for each products –

Soothing line, Slimming and firmness line and line Y.

Hero Honda follows Range brand strategy for Karizma, Splendour, Passion and CD

brands.

Bajaj Auto follows Range brand strategy for Pulsar and Discover brands.

Splendor CD Passion Glamour

Target Market –

Entry level, Middle

income group bike

Target Market –

Entry level, Lower

Income group bike

Target Market – Tier

I city, Middle income

group bike

Target Market – 2nd

bike purchaser,

Middle income group

Splendor Plus (basic

Model

CD Dawn – (basic

bike)

Passion Plus (basic

model)

Glamour (basic

model)

Super Splendor (auto

start)

CD Deluxe – (old

splendor look alike)

Passion Pro (Sporty

look)

Glamour PGM F1

Splendor NXG (Next

Generation)

XCD Platina Discover

Target Market – Mid segment

bike

Target Market-

Entry level bike Target Market

– Mid segment

bike

125 DTS-Si (125

cc bike

Basic model –

110 cc bike

DTS-Si bike

135 DTS-Si (135

cc bike)

125 DTSi engine DTS-Si 135 cc

bike

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Advantages:

If a brand get recognized then to target newer customer new products are introduced to

increase the range of product

Less advertising needed

Disadvantages:

If product does not full fill the expectation than it affects overall range image

The Umbrella brand strategy

The umbrella brand strategy is mainly capitalization on one single name and the economies of

scale on an entry level.

For example – Cannon, Philips etc follow this strategy.

This strategy is not adopted by Bajaj Auto Ltd and Hero Honda Motors Ltd.

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 Spendour, Bajaj

Discover DTSI etc.

Advantage:

Strategy effective when new product is introduced

Disadvantage:

If a brand fails to deliver promise and eventually fails it may affect other brands

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Endorsing Brand Strategy

General Motors and Johnson & Johnson use endorsing branding strategy in which it they

endorses many brands under them.For example – Buick, Chevrolet, Opel etc. are endorsed by

GM.

Mixed Brand Strategy

Normally all the corporation uses mixed brand strategies. Bajaj and Hero Honda use mixed

brand strategy.

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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 competitor’s 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--Glamour-Achiever

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 - Kawasaki Ninja/Karizma ZMR

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BRAND IDENTITY PRISM

New Pulsar 220 DTS-I

Physique

Good looking 2 wheeler with a feel of sports bike

Personality

Masculine, Cool, Competitive, Attitude

Relationship

Distinctive, Exclusive

Culture

Daring, Indian, Thrilling

Reflection

Young at heart, Confident, Carefree, Trend Setter

Self Image

Fastest Indian, Definitely Male

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Karizma ZMR

Physique

Stylish 2 wheeler with a feel of sports bike

Personality

Charismatic, Sporty, Energetic, Attitude

Relationship

Distinctive, Exclusive

Culture

Daring, International,

Thrilling

Reflection

Glamorous, Achiever, Explorer

Self Image

Winner, Above all, Brave.

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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

Brand Extension

The Brand extension, on the hand, involves using an existing Brand name to launch a product in a different category.

Companion Product extension

Company expertise

COMPANION PRODUCT EXTENSION

Bajaj

Providing integrated solutions, to the costumer. From the cradle to the grave.

Bajaj Auto Finance

Here in the case for Bajaj the company provides loans for all the

Bajaj Products at the showroom.

Bajaj Pro Biking Showroom

It is a concept store targeted to pro bikers which houses sports

bike like Ninja, Pulsar and Avenger. Apart from this it

provides everything required for pro biking like accessories

and technical expertise.

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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.

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Reference

The New Strategic Brand Management – Jean Noel Kapferer

Marketing Management – 12th

edition – Phillip Kotler, Keller

www.bajajauto.com

www.herohonda.com

www.wikipedia.com

www.economictimes.indiatimes.com