Bajaj Chetak (1972-2005) :RIP

Brand : Bajaj Chetak
Company : Bajaj Auto Ltd

The brand which ruled the Indian roads have been laid to rest. Bajaj has officially stopped the production of Bajaj Chetak from December 2005. The stocks will last may be upto March 2006. The company says that the product no longer have any relevance to the customer. To quote Rajiv bajaj " Any one who clings to the past is a failure".

I owned a Chetak: a gift from my father for having secured admission to MBA program. It was in the year 1996. Later I exchanged it for a bike in 2001. Still Chetak lingers in me ( or rather haunts me) in the form of " Back Pain".

The brand which was launched in 1972 virtually owned the two wheeler segment. If reports are to be believed, Chetak was an unavoidable dowry in 1970's and 80's. It had a waiting period of more than 10 years ( can you believe it ? ) and now here I am after 34 years, writing the epitaph of this brand.

The brand which was named after the legendary stallion of the Rajput king Maharana Pratap, was known for the reliability and sturdiness. The brand thrived during the license raj with virtually no competition. It was during 1990-91 that the brand began the journey to the end.

Bajaj Chetak had a huge brand equity . The brand had the persona of a " work horse". With reasonable price and the low maintenance cost made this product a huge hit among the middle class Indians.

Promoted along the base line " Hamara Bajaj", this was the Indian Family vehicle - a position now owned by Maruthi 800.

But then How can a brand that was so popular and successful fail?

Frankly, I am not sure. But here is what I think about this brand...

The primary reason is that the Brand forgot the customers. Another case of Marketing Myopia. The company failed to understand the changing perception of the customers towards scooters. Rather than looking at the customers, the company focused on influencing Government to block the opening up of economy. Bajaj never did anything with the product. For 40 years Chetak had the same look, same quality and style.

During the mid nineties the company realised lately that the segment has shifted to motorcycles. Scooters were no longer the option. But did the company made a mistake in discarding the scooter segment ? Looking at the way the share prices are going, the market thinks that Bajaj Auto made the right decision. But I think that they made a mistake in leaving the scooter segment completely. Contrary to expectation, the scooter segment has not died. It has only changed.

Chetak lost its identity some where during the nineties. What should be the future of the brand : no body knew. It was only in 2004 that company made any change in Chetak. In 1994 Bajaj introduced Classic another scooter with same style as Chetak, but failed.

Bajaj never was serious about product development. The R&D spent for a long time was a miniscule 1%. The average cycle time for the new product development was 4-5 years compared to 2-3 years of Japanese competitors.

Even after the opening up of economy, the scooter segment did not witness much competition.

The players like Vespa did not had much of success in this segment. Kinetic Honda managed to carve a niche with its gearless scooters. Another segment which was growing was the scooterette segment which was dominated by TVS scooty.

Bajaj never seriously looked at customer perception about Chetak. The product had serious problems like starting trouble and riding comfort. The " Tilting the chetak to the side for starting " was a common joke. Did the company do anything for that ? no

There was nothing wrong with the Promotion. " Hamara Bajaj " and " No one can beat a Bajaj " were famous base lines. There was nothing wrong with distribution and the pricing was very reasonable. The major problem was in the first P : Product.

So without addressing any problems regarding the product , can you expect the customer to buy the product ?

Bajaj was never a leader in technology ( now they are !!!). They never bothered to and paid the price . Had Chetak pioneered Electric start, had it provided more riding comfort, it could have survived.

Somebody have just beat the Bajaj........ the customer!

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Yezdi (1961-1995) : RIP

Brand: Yezdi
Company: Ideal Jawa India Ltd

A brand that was once the heartthrob of Indian urban Youth is now resting in peace...

A case of marketing myopia...

I am not sure why I chose this brand , may be because of nostalgia. During my school days me and my brother used to argue as to whether Yezdi or Bullet is the best.

This bike was manufactured by Ideal Jawa Ltd with technical collaboration with Jawa of Czechoslovakia. Ideal Jawa started its operations in 1960 .Yezdi ( that time Jawa ) was in Indian roads from 1961. During 1960's Indian roads were ruled by scooters. Bikes were not at all popular due to mechanical issues and low mileage.

During that period , there were only three serious players in the Indian motorcycles market. Bullet, Rajdoot and Ideal Jawa. Rajdoot was popular in rural areas because of sturdy suspension. Bullet and Jawa were popular in the urban market.

Yezdi was targeting the youth with the positioning of " Forever Bike Forever Value" . Since it was a seller's market, what ever that was produced were lapped up by Indian consumers.

1980's saw a sea change in the Indian two wheeler market. Japanese technology entered the Indian market through joint ventures. The market saw lot of new 100 cc bikes which were more fuel efficient and easy to ride.

Ideal Jawa was having a blind eye. It refused to accept the realities. When the consumer attitudes changed, Jawa refused to change . Customers wanted Bikes that offered mileage, style and comfort. Japanese bikes provided all that. This period also showed the shift of Indian consumers from scooters to motorcycles.

Yezdi had serious mechanical issues, especially the starting trouble. One had to pump about 20 times to get that machine started. It had no chance before the peppy new generation Japanese bikes.

Yezdi realised this late and came out with some design changes and new launches like Roadking which had a new styling. But it was too late.

Failing market and labour problems took its toll on Ideal Jawa . Yezdi was laid to rest in 1995. Had Yezdi changed its products in tune with the customer needs, we would have seen a lot of this bike on Indian roads. but alas ....

Once an Icon, Yezdi has now faded in to the annals of history.

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Amaron : Lasts Long , Really Long . TingTong !

Brand : Amaron
Company :Amara Raja
Agency: O&M

Amaron is a disruptive brand in the automotive segment. Launched in mid 2000 , this brand has created some excitement in the rather dull automotive battery market in India. Amara Raja has been a leading player in the industrial battery segment. In 2000 they forayed in the lucrative Automotive battery market which is predominantly dominated by players like Exide.

Automotive battery market can be categorized into two: OEM and replacement market. OEM segment is dominated by established players while replacement market is dominated by local players and other non branded batteries.

Car Battery replacement is viewed as a grudge purchase by the car owners. No one thinks of battery until it breaks down. This product comes under the category of High Involvement and Low Interest product. We can consider this as a slow moving consumer good .

Amaron wanted to differentiate itself from the existing players in the market. It had to do so because the product category is SMCG with low interest. So the question is how to create that excitement. The Indian automotive battery market is worth around 1200 crore. Organised players constitute 40% of that market.

The first thing the company has done was to create the product differentiation with respect to the product feature. Amaron decided to bringout the Zero maintenance battery into the Indian market ( I think it is the first company to do so). That means that we needn't check for the water level and so on.

Amaron also ensured that the product commands the best quality so that the product can be positioned as a premium brand.

Then came the form differentiation. Conventional batteries were all looking alike with a transparent body and blue/ red top. Amaron decided on a black body with fluorescent green logo splashed over. There was also another reason for the black body. There is a possibility of government regulations stipulating the use of Recycled plastics for battery. Amaron is using such plastics so it need not effect the changes once the regulations are implemented. And since the water level needn't be checked, Black body will have no problem for the customers.

The purpose of using fluorescent green was that since our country is very hot, the color should stay in Promotional materials , hoarding and in the product. So green was chosen.

Then came the differentiation regarding the advertising. Amaron decided that it will do the breakaway advertising. Traditionally conventional battery ads seldom sells battery. It is the sheer distribution and the presence of well established brand name that does the selling.

So Amaron wanted its ads to look different and establish the brand name in this crowded market.

So O&M decided to have a un-battery like campaign for Amaron. For the first time in India "Claymation" ie using clay models + animation was used for advertising .Amaron ads were classic examples of " Clutter busting". The ads were attention grabbing and outright funny. It won many awards for the agency and Amaron grabbed 6% market share in a short span of time. The Amaron Campaign Pandu Mangal has been well received by the public and research shows that Amaron has a top of the mind brand recall . The ads coupled with claymation and hyperbole effectively communicates the positioning of " lasting long" . The jingle "TingTong" has also been a smash hit.

This is a brand that is a classic case of smart marketing and careful differentiation. I hope this brand " Lasts Long, really long" ( I just bought one for my car !) Ting Tong.

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Royal Enfield : Royal Indeed

Brand : Royal Enfield
Company : Royal Enfield Ltd
Agency : RMG David


If you are searching for an Indian Icon which has survived the test of time, look no further , It is Royal Enfield.Established in India in 1955, Enfield is celebrating its 50 years of existence in India.
Enfield was born in Mid 19 the century in England. A firm named George Townsend established a small factory in Redditch Town in England for manufacturing Sewing needles.Later the firm started producing cycles and later motorcylces. In 1893, the products sported the name Enfield.
1931 saw the birth of Bullet. In 1935, the product acquired the modern look. Bullet was reintroduced in 1948-49 , redesigned byTed pardoe , Chief Draftsman of Enfield, England.

In 1955, the first factory was set up in India. In 1994 the company was acquired by Eicher and the company name was changed to Royal Enfield India Ltd.

The brand faced lot of problems all through its life in India. Bullet was always a Muscle machine. The product was the only power bike available in India and commanded a cult like following. Although the engine was not refined and produced lot of problem for the owners, it was treated with respect .
But along the time, Bullet lost its way. The company tried to play volume market and failed miserably. The reason being the product cannot be volume bike. It cannot be treated as an ordinary bike and required lot of care from the owners. Ordinary bikes can be treated roughly but not Bullet because if not cared, it can give lot of head aches for the owners.

Besides,the product had created lot of psychological barriers for the potential owners. The weight of the bike discouraged the skinny ones, the antagonistic gear/brake positions scared the rest. The kickstart needed powerful legs and so on..

Enfield realised this very lately. With new young blood (Sidhartha lal) in the helm of Royal Enfield, things are looking up.The company relaunched the brand with new communication and logo , corrected the flaws in the bike and repostioned the product.
The new launches of Bullet Electra and the cruiser Thunderbird and the introduction of electric start for the bullet were well received by bike enthusiasts. Bullet also changed the Gear/Brake in line with the ordinary bikes.

Bullet is now positioned as lifestyle bike not for the ordinary. It connects to the " pleasure of biking" and tags the masculine persona. The campaigns are well executed by RMG David and clearly communicates the stature of the brand among other bikes . It says " Every body makes way for the bullet". Thunderbird is launched as the cruiser bike and has already established its presence in this segment.

Recent Customer Satisfaction survey conducted by TNS auto division places Bullet in top order in customer satisfaction. This shows that the company has effectively spruced up the quality of this mean machine.

More over Royal Enfield also roped in Ravichandran from Bajaj as its chief executive. Ravichandran is well respected in the industry circle as a design specialist and marketing man.

Enfield has the iconic status in India and the company has put its acts together. We will see this brand reaching its deserving position in the Motorcycle segment in the coming years.

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Bajaj Discover : Discover the positioning!

Brand : Discover
Company : Bajaj
Agency : O&M


Bajaj has been on a roll these days and if the stock valuations are any indication of firms performance, then Bajaj is Bachchan of two wheelers. It had been an interesting story of Bajaj , interesting in the marketing and strategic point of view of how a company which thrived during the closed economy has evolved to a dynamic company in a free market economy.

The brand has evolved from " Hamara Bajaj" TO " No one can beat a Bajaj" TO " Inspiring Confidence".
Rahul Bajaj , the Part time Chairman of the company has been instrumental in facilitating this change from a Fuddy Duddy image of a scooter manufacturer to a dynamic young M/Cycle manufacturer.

Bajaj which was proudly known as world's largest manufacturer of scooters in the nineties found to its surprise one day that Indians now don't like scooters, they like m/cycles. Bajaj first thought it is not possible. How can people who once waited for 3 years to get a scooter can think of buying a m/cycle. But ultimately numbers proved the point. Bajaj no longer mattered in the new scheme of things. Hero Honda is the leader in the motorcycle segment (which was once dominated by Yezdi, Enfield and Java) and scooter sales are coming down.

Bajaj still believed that things were as usual, people prefers scooters, m/cycle is just a fad, no one can beat a bajaj ...... but ..,

Once Bajaj has realised that Indian consumers have changed, It has to change and it changed for the better.
Bajaj came with a series of M/Cycle launches but it took a long time before Bajaj could establish itself in the M/Cycle market. This proves the point that as a marketer, you cannot take customers for granted no matter who you are.

Pulsar helped Bajaj to establish itself as a serious player in the Indian M/cycle market. Bajaj had failures in establishing its presence in the executive segment where Hero Honda's splendour rules .

Hence Bajaj launched Discover DTSI with much fanfare. The brand ambassador was none less than the legendary Jackie Chan. Things were perfect for a bestseller. But has Discover delivered?

Still No.
Partly because Bajaj is still struggling with the positioning of the brand. The same mistake was done with Caliber. Bajaj is trying to sell Discover by its looks. But then the new commercial suggest something else. The new commercial with a Harry Potter look alike is well executed but has no marketing significance. What is being communicated to the customer ? Just like the Hoodibaba campaign involving cartoon characters which actually killed the product, Discover campaigns are based on Fantasy.

It will be helpful for Bajaj if it realises or rather study its target market.
" M/cycles are used by adults above 18 educated and the product is M/cycle that is used for transportation" Bajaj knows this more than I do, But then how can you sell a Motorcycle to an Adult based on fantasy?
Bajaj should decide on which platform Discover is going to be placed at. Is it going to be sold as a stylish bike or performance or both?
Positioning has to be realistic and should differentiate the product from the competitors. That is theory and it works also.
Here M/cycle cannot be sold on the basis of some fantasy or cartoons, Bajaj should realize that. Discover had a dream launch. If Bajaj fails to capitalize on that then this product will be another Caliber .

Bajaj can relax for while because Hero Honda's new bike Achiever is also poorly positioned and campaign stupidly executed..

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Tata Indica : Truly more car per car

Brand : Tata Indica
Agency : FCB Ulka
Company: Tata motors

Baseline : more car per car

India is a lucrative market for automobile manufacturers. If we believe the fancy numbers floating around regarding the industry size, this is a market no one can ignore.

Fighting with all the big names in the auto industry is our very own Tata Motors.

Let me be patriotic and say " we have done it". We have our own Indian Car: Indica.
Well You may say that the design was outsourced from IDEA ITALY so this is not 100% Indian. I would say that Tata's are smart so they outsourced it.....

Any way as hypocritic as we are by birth, although we say " sare jahan se acha " , we were ruthless towards Indica. Everyone looked down upon this car from Tata talking about all the negative points about the performance and writing off this dream of an Indian to build an Indian car.

Despite the initial setback with Indica, Tata motors reworked on the engine and relaunched Indica as Indica V2. Now indica is the second largest selling car in India.

Indica is positioned as a value for money car. I have said in my earlier blog that this is a proposition that will always work on Indian consumers, provided the promise is delivered.
Indica delivered its promise. It promised that it will give more car per car and delivered that.

The success of this proposition had an interesting side effect ( positive of course). Tatas have discovered its vision : deliver more value at a reasonable price. The recent launches prove that Tatas have imbibed this "value for money " proposition . The latest products like Safari Dicor and Indigo give many features which were seen only in premium cars.

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Toyota Innova: Classic case of celebrity endorsement

Brand : Innova
Company : Toyota
Agency: Densucomm
Brand Analysis Count: 2


Toyota Innova is an interesting brand. Interesting because it redefined the MUV segment in India and also it replaced the famous Toyota Qualis . Innova was launched in 2005. It replaced the successful Qualis when the sales of Qualis was at its peak.

Toyota decided to replace Qualis because of two reasons. Qualis was a major success among the tour operator segment but was not popular at the individual/home segment. Second reason was the increased competition from Chevrelot Tavera which was perceived to be a more refined upmarket SUV.
Toyota also wanted to bring in the latest products in the Indian market. Qualis was only a test product. Further, Toyota wanted to appeal to the individual/home users rather than the commercial segment.

Innova is positioned as a luxury MPV. The brand has the latest technology and is refined to perfection. The brand has roped in Aamir Khan as the brand ambassador. Innova is positioned as a vehicle for all purposes . The brand uses the tagline " All you desire " and the ads are also catchy. The brand is priced at a premium and is targeting families which are SEC A A+ and large in size.

It is already a well debated issue whether celebrities should be used for endorsements. I am of the opinion that the brand should be the center of attraction and celebrity should support the brand and they should not steal the limelight.

Innova has effectively used the charisma of Aamir Khan to promote itself. Recent newspaper reports suggest that the advertisement has clicked.

Let us see why Toyota has used Aamir for its product. The latest advertisement of Corolla with Rahul Khanna suggests that Toyota is bugged by celebrity paranoia.

The basic positioning of Innova is as a getaway vehicle that is spacious, trendy and upmarket. Innova has tried to distance itself from the Qualis ,its successful predecessor which was popular as a Taxi .
So it was necessary that Innova be promoted as an upmarket car that can be associated with the successful. So Aamir make sense. The execution was perfect so was Aamir.

The pricing of Innova was also inline with the positioning with over 7+ variants and priced at a premium.
Toyota would like to see less Innova Taxis and more families owning Innova.The current ad will help them in realizing that objective.

Key words : Brand, Positioning, Marketing strategy, Indian Brands.

Revised on 26/5/08

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Bajaj avenger- Feel Like God

Brand : Bajaj Avenger
Company- Bajaj Auto Ltd
Agency : Lowe

Brand Analysis Count : 1

Bajaj Avenger was launched in 2005. The brand was the sibling of India's first cruiser bike - Bajaj Eliminator . Eliminator had a good start but the expensive price tag of Rs 92000 dampened the enthusiasm of majority of bikers.

More over Eliminator was underpowered with a 125 cc engine and the value conscious customers gave the product thumbs down. The launch of Yamaha Enticer also took some market away from Eliminator initially.

Taking a learning from Eliminator , Bajaj launched Avenger . Avenger can be termed as a rebranding for Eliminator. Avenger sported a 180 cc dtsi engine and came with an attractive price tag of Rs 60,000. The failure of Yamaha Enticer also made the category worth a try.


The new bike is positioned on the comfort platform. The brand comes with the tagline " Feel Like God ". The brand is promoted in both print and visual media. The basic brand premise is that you will feel like god when riding this bike. The big idea is from the insight that cruisers are powerful bikes meant for a laid-back comfort riding.

Cruisers are niche products. The category is virtually new in India. And Indian road and traffic conditions also are not favorable for cruisers. But the changing Indian consumers definitely points to a favorable market for cruisers. More than volume, cruisers also are great image boosters for the company. A successful cruiser can give a positive image boost for all other products from the company.

Avenger, priced at Rs 60000 is definitely attractive in terms of price. With that Bajaj tries to give more than just low price. The Pulsar engine ensures that Avenger has the power.Lack of power was behind the failure of Yamaha Enticer.

The ads of Avenger are well made and definitely motivates a bike enthusiasts to give a test ride.

Smart advertising works well only with good product : plain common sense isn't it? But this is often missed by all marketers. Hope the Avenger lives to the expectation and its customers feel like " god".

Otherwise customers will behave like " God", they will just kill the product.........

Key words: Advertising, Brand, Brand Management, Positioning

Revised on 21/05/02008

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